# EDGAR Filing Document

**Accession Number:** 0001997350
**File Stem:** 0001193125-25-152889
**Filing Date:** 2025-6
**Character Count:** 5704432
**Document Hash:** 1cfefedc11b60edb748d655dec67395b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-152889.hdr.sgml**: 20250630

**ACCESSION NUMBER**: 0001193125-25-152889

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 72

**FILED AS OF DATE**: 20250630

**DATE AS OF CHANGE**: 20250630

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Accelerant Holdings
- **CENTRAL INDEX KEY:** 0001997350
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 981753044
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288435
- **FILM NUMBER:** 251093257

**BUSINESS ADDRESS:**
- **STREET 1:** P.O. BOX 309 UGLAND HOUSE
- **CITY:** GRAND CAYMAN
- **STATE:** E9
- **ZIP:** KY1-1044
- **BUSINESS PHONE:** (302) 658-7581

**MAIL ADDRESS:**
- **STREET 1:** 1209 ORANGE STREET
- **STREET 2:** C/O THE CORPORATION TRUST COMPANY
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19801

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on June 30, 2025.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## ACCELERANT HOLDINGS
**(Exact Name of Registrant as Specified in its Charter)** 

---

| | | |
|:---|:---|:---|
| **Cayman Islands** | **6411** | **98-1753044** |
| **(State or Other Jurisdiction of Incorporation or Organization)** | **(Primary Standard Industrial Classification Code Number)** | **(I.R.S. Employer<br>Identification Number)** |

---

**Accelerant Holdings** 

**c/o Accelerant Re (Cayman) Ltd.** 

**Unit 106, Windward 3, Regatta Office Park,** 

**West Bay Road, Grand Cayman** 

**+1 (345) 743-4611** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**The Corporation Trust Company** 

**1209 Orange Street** 

**Wilmington, Delaware 19801** 

**(302) 658-7581** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

---

| | | | |
|:---|:---|:---|:---|
| **Nancy Hasley**<br> **Group General Counsel**<br> **Accelerant Holdings**<br> **P.O. Box 309**<br> **Ugland House, Grand Cayman, KY1-1104 Cayman Islands**<br> **Telephone: +44 (0) 800-048-9809** | **Samir A. Gandhi**<br> **Robert A. Ryan**<br> **Sidley Austin LLP**<br> **787 Seventh Avenue**<br> **New York, New York 10019**<br> **Telephone: (212) 839-5900** | **Suzanne Correy**<br> **Maples and Calder (Cayman) LLP**<br> **P.O. Box 309**<br> **Ugland House, Grand Cayman, KY1-1104 Cayman Islands**<br> **Telephone: (345) 949-8066** | **Thomas Holden**<br> **Rachel D. Phillips**<br> **Ropes & Gray LLP**<br> **1211 Avenue of the Americas**<br> **New York, New York 10036**<br> **Telephone: (212) 596-9000** |

---

**Approximate date of commencement of proposed sale to the public:** 

**As soon as practicable after the effective date of this registration statement.** 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.** 

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##### [**Table of Contents**](#toc)
**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.** 

*PROSPECTUS (Subject to Completion)* 

*Issued June 30, 2025.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Shares*![LOGO](g543111g14m98.jpg)

*Class A Common Shares* 

This is the initial public offering of Class A common shares of Accelerant Holdings ("Accelerant"), par value $0.0001 per share. We are offering Class A common shares to be sold in this offering. An affiliate of our equity sponsor is offering of our Class A common shares. We will not receive any proceeds from the sale of our Class A common shares being sold by the Selling Shareholder (as defined herein). All shares sold by the Selling Shareholder in this offering will be converted to Class A common shares upon sale.

Prior to this offering, there has been no public market for our Class A common shares. The initial public offering price is expected to be between $ and $ per Class A common share. We have applied to list our Class A common shares on the New York Stock Exchange ("NYSE") under the symbol "ARX."

Following this offering, we will have two classes of authorized common shares. The holders of our Class A common shares offered hereby will be entitled to one vote per Class A common share, and the holders of our Class B common shares will be entitled to ten votes per Class B common share. Certain of our existing equity holders (and their affiliates) will hold all of our issued and outstanding Class B common shares and will have the right pursuant to our amended and restated memorandum and articles of association to convert their Class B common shares into Class A common shares on a one-for-one basis at any time. Additionally, Class B common shares will automatically convert into Class A common shares on a one-for-one basis upon transfer (other than a permitted transfer) of Class B common shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the total number of Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.

After giving effect to the sale of the Class A common shares offered hereby, investment funds controlled by our equity sponsor, Altamont Capital Partners ("Altamont Capital"), will own Class B common shares, representing % of the combined voting power of our common shares outstanding after this offering (or % of the voting power if the underwriters' option to purchase additional Class A common shares is exercised in full). As a result, we expect to be a "controlled company" within the meaning of the corporate governance standards of the NYSE. See "Management—Controlled Company Status." Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to hold voting power greater than 9.9% of the aggregate combined voting power of Accelerant (the "Voting Power Threshold"), and any votes to which any such holder would otherwise be entitled in excess thereof shall be disregarded.

We are an "emerging growth company" as defined under the U.S. federal securities laws, and as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings.

***Investing in our Class A common shares involves a high degree of risk. See "[Risk Factors](#rom543111_2)" beginning on page 26.***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Price to<br>Public*** |  | ***Underwriting***<br>***Discounts<br>and<br>Commissions<sup>(1)</sup>***  | ***Proceeds to<br>Accelerant*** |  | ***Proceeds to <br>Selling<br>Shareholder*** |  |
|  *Per Share* | | $|  | | $| | $|
|  *Total* | | $|  | | $| | $|

---

(1) See the section titled "Underwriters" for a description of the compensation payable to the
underwriters.

We and the Selling Shareholder have granted the underwriters the option for a period of 30 days to purchase up to an additional Class A common shares on the same terms as set forth above.

***Neither the Securities and Exchange Commission ("SEC") nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.***

The underwriters expect to deliver the Class A common shares to purchasers on , 2025.

*Morgan Stanley* *Goldman Sachs & Co. LLC* <br> *BMO Capital Markets* *RBC Capital Markets*

---

| | | | | |
|:---|:---|:---|:---|:---|
| *Piper Sandler* | *Wells Fargo Securities* | *William Blair* | *Raymond James* | *TD Securities* |
|  | *Citizens Capital Markets* | *FT Partners* |  |  |

---

*The date of this prospectus is , 2025.* 

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##### [**Table of Contents**](#toc)
![LOGO](g543111dsp01.jpg)

Our mission To be the preeminent specialty insurance marketplace

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![LOGO](g543111dsp02.jpg)

A bird's eye view of Accelerant $3.5B 96 Exchange Written Premium1 Risk Capital Partners2 232 Operating in 20+ Members 2 Countries 2 (1) For the trailing 12 months ended March 31, 2025 (2) As of March 31, 2025

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![LOGO](g543111dsp03.jpg)

Accelerant

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  [PROSPECTUS SUMMARY](#rom543111_1) | 1 |
|  [RISK FACTORS](#rom543111_2) | 26 |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#rom543111_3) | 73 |
|  [USE OF PROCEEDS](#rom543111_4) | 75 |
|  [DIVIDEND POLICY](#rom543111_5) | 76 |
|  [CAPITALIZATION](#rom543111_6) | 77 |
|  [UNAUDITED PRO FORMA FINANCIAL INFORMATION](#rom543111_7) | 79 |
|  [DILUTION](#rom543111_8) | 84 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#rom543111_9) | 87 |
|  [FOUNDERS' LETTER](#rom543111_9a) | 150 |
|  [BUSINESS](#rom543111_10) | 152 |
|  [REGULATION](#rom543111_11) | 173 |
|  [PRINCIPAL AND SELLING SHAREHOLDERS](#rom543111_12) | 211 |
|  [CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS](#rom543111_13) | 214 |
|  [MANAGEMENT](#rom543111_14) | 220 |
|  [EXECUTIVE COMPENSATION](#rom543111_15) | 228 |
|  [DESCRIPTION OF CERTAIN INDEBTEDNESS](#rom543111_16) | 237 |
|  [DESCRIPTION OF SHARE CAPITAL](#rom543111_17) | 239 |
|  [MATERIAL DIFFERENCES IN CORPORATE LAW](#rom543111_18) | 244 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#rom543111_19) | 255 |
|  [CERTAIN MATERIAL TAX CONSIDERATIONS](#rom543111_20) | 258 |
|  [UNDERWRITERS](#rom543111_21) | 272 |
|  [LEGAL MATTERS](#rom543111_22) | 281 |
|  [EXPERTS](#rom543111_23) | 281 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#rom543111_24) | 281 |
|  [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#rom543111_25) | F-1 |

---

Through and including , 2025 (the 25th day after the date of this prospectus), all dealers effecting transactions in our Class A common shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to its unsold allotment or subscription.

None of Accelerant, the Selling Shareholder, nor any of the underwriters has authorized anyone to provide you with any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. None of Accelerant, the Selling Shareholder, nor any of the underwriters takes any responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We, the Selling Shareholder, and the underwriters are offering to sell, and seeking offers to buy, our Class A common shares only in jurisdictions where offers and sales are permitted. The information contained in this prospectus or any free writing prospectus is accurate only as of its date, regardless of its time of delivery or of any sale of our Class A common shares. Our business, financial condition, results of operations, and future growth prospects may have changed since that date.

For investors outside the United States: none of Accelerant, the Selling Shareholder, nor any of the underwriters has done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of our Class A common shares and the distribution of this prospectus outside the United States.

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##### [**Table of Contents**](#toc)
**MARKET AND INDUSTRY DATA** 

This prospectus includes estimates derived from market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity and market size, are based on our management's knowledge and experience in the markets in which we operate, together with currently available information obtained from various sources, including publicly available information, industry reports and publications, surveys, our customers, our Members, our capital partners, trade and business organizations, and other contacts in the markets in which we operate. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research, and are based on certain assumptions that we believe to be reasonable.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus are generally reliable, such information, which is derived in part from management's estimates and beliefs, is inherently uncertain and imprecise, and you are cautioned not to give undue weight to such estimates. Market and industry data are subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions, and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates. The content of, or accessibility through, the sources and websites identified herein, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein and any websites are an inactive textual reference only.

**TRADEMARKS, TRADE NAMES AND SERVICE MARKS** 

This prospectus includes trademarks and service marks owned by us. Solely for convenience, trademarks, trade names, and service marks referred to in this prospectus may appear without the <sup>®</sup>, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, trade names, and service marks. We do not intend our use or display of other parties' trademarks, trade names, or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

**BASIS OF PRESENTATION** 

Accelerant Holdings LP, a Cayman Islands exempted limited partnership formed in 2018 and our current controlling shareholder, is the ultimate parent company of the Accelerant group of companies. In December 2021, we initiated a series of reorganization transactions pursuant to which our company, Accelerant Holdings, was established and became the primary holding company of the Accelerant group of companies. This reorganization has been accounted for as a transaction between entities under common control and is expected to be completed upon the distribution by Accelerant Holdings LP of of our existing common shares to holders of limited partnership interests of Accelerant Holdings LP in proportion to the economic interests represented by those limited partnership interests. This distribution will occur immediately prior to the consummation of this offering. The existing common shares will then be re-designated into Class A common shares and Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association. We refer to this distribution as the Accelerant Holdings LP Distribution. After the consummation of this offering, Accelerant Holdings LP will be dissolved.

Prior to the completion of the Accelerant Holdings LP Distribution, Accelerant Holdings LP is considered to be our predecessor entity under applicable SEC rules and guidance. Accordingly, the consolidated annual

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financial statements of each of Accelerant Holdings and Accelerant Holdings LP are included elsewhere in this prospectus. However, the assets and liabilities and operating results of Accelerant Holdings LP are insignificant in relation to the financial statements of Accelerant Holdings and as such, the financial information referenced within this prospectus, including that presented under "Management's Discussion and Analysis of Financial Condition and Results of Operations," is that of Accelerant Holdings unless otherwise specified.

**SELECTED DEFINED TERMS** 

As used in this prospectus, unless the context indicates or otherwise requires, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Direct Written Premium**: Expressed as a percentage of Exchange Written Premium, the GWP
written directly by Accelerant Underwriting companies, the majority of which we cede to third-party risk capital partners through our reinsurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant GWP**: The total GWP written by Accelerant Underwriting companies (both written by our
insurance company and assumed as a reinsurer), the majority of which we cede to third-party risk capital partners through our reinsurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Holdings LP Distribution**: Immediately prior to the consummation of this offering, our
predecessor and parent entity, Accelerant Holdings LP, will distribute    of our existing common shares to holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interests
represented by those limited partnership interests. The existing common shares will then be re-designated into     Class A common shares and     Class B common shares (as applicable)
immediately following the effectiveness of our amended and restated memorandum and articles of association. After the consummation of this offering, Accelerant Holdings LP will be dissolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Re Cayman**: Accelerant Re (Cayman) Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant-Retained Exchange Premium**: Expressed as a percentage, as Accelerant GWP net of ceded written
premium for the trailing twelve month period, divided by total Exchange Written Premium for the trailing twelve month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Underwriting**: Accelerant's owned insurance companies and reinsurance companies, and all
revenue and expenses associated with them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ACP Accelerant Holdings LP**: An entity controlled and beneficially owned by investment funds advised by
an affiliate of Altamont Capital and the Selling Shareholder in this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Admitted Market**: The insurance market comprising carriers licensed to write business on an
"admitted" basis by the insurance commissioner of the state in which the risk is located. Insurance rates and policy forms in an Admitted Market are highly regulated by each state and coverages are largely uniform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AI**: Artificial Intelligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AIUK**: Accelerant Insurance UK Limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ANIC**: Accelerant National Insurance Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ASIC**: Accelerant Specialty Insurance Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AUM**: Accelerant Underwriting Managers, the U.S. program management affiliate of Accelerant, which also
acts as a "master" MGU that sub-delegates underwriting authority to Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Board Risk Appetite**: The maximum amount and type of risk that we are willing to take in order to meet
our strategic objectives within an approved framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Carrier**: An insurance company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Conversion**: Any conversion of the Class B common shares described in this prospectus will take effect
as a redemption of Class B common shares and issuance of Class A common shares as a matter of Cayman Islands law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **DAC**: Deferred acquisition costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **E&O**: Errors and omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **E&S**: Excess and surplus lines. In this insurance market, carriers are not licensed, except in their
state of domicile, and provide insurance coverage on a "non-admitted" basis. Insurance rates and forms in this market are subject to less-stringent regulation than in the Admitted Market and as such,
E&S carriers offer greater flexibility in terms, conditions, and rates as compared to the Admitted Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exchange Services Take Rate**: Exchange Services direct commission income divided by Exchange Written
Premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exchange Written Premium**: The total gross written premium written through the Risk Exchange, including
both gross written premiums written on behalf of Accelerant Underwriting companies and written on behalf of Risk Exchange Insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **FIO**: Federal Insurance Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Flywheel Re**: Collectively, Flywheel Re Ltd. SPC and Flywheel Holdings Ltd. SPC, a Cayman Islands
holding company that indirectly owns Flywheel Re Ltd. SPC, are an unconsolidated reinsurance sidecar entity, sponsored by Accelerant and through which institutional investors are offered specialty insurance risk and returns that are relatively
uncorrelated with broader financial markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **GAAP**: Accounting Principles Generally Accepted in the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross Loss Ratio**: Expressed as a percentage, gross incurred losses and loss adjustment expense divided
by gross earned premium. Gross loss ratio excludes the impact of premium and loss and loss adjustment expense ceded to reinsurers. Gross loss ratio represents the percentage of gross premium earned during the period that will be required to pay
current and future claims, based on management's best estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **GWP**: Gross written premium, representing the total amount of premium contracted for all policies issued
in a given period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Independent Members**: Members in which Accelerant does not own an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Independent Premium**: The gross premium written by Independent Members and placed through our Risk
Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **LAE**: Loss adjustment expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Members**: Specialized underwriters, including MGAs, MGUs, and program managers (terms we use
interchangeably) that underwrite insurance premiums on behalf of risk capital partners through our Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **MGA**: Managing general agent; a third-party agent that receives delegated underwriting authority from a
Primary Insurance Company to write insurance risk on its behalf. As used in this prospectus, the term "MGA" refers generically to agents receiving this delegation of underwriting authority, including MGUs, MGAs, and/or program managers and
any Member or other entity in relation to which the term "MGA" is used in this prospectus may not fall within the regulatory definition of a "managing general agent" in the jurisdictions in which it operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **MGU**: Managing general underwriter; a third-party agent that receives delegated underwriting authority
from a Primary Insurance Company to write insurance risk on its behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Europe**: Mission Holdings Europe Ltd., one of our subsidiaries. On May 1, 2024, we exercised our
call option to acquire, and subsequently contribute all the equity interests of Mission Holdings Europe Ltd. to Mission Worldwide Holdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Members**: Specialty underwriters that we incubate through Mission Underwriters and in which we
have an equity ownership interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Underwriters**: Mission Underwriters provides specialty underwriters with the working capital,
operational support, and balance sheet capacity necessary to operate their own MGAs, in which the specialty underwriters have a majority ownership interest. These MGAs are Members of the Risk Exchange. Mission Underwriters operates in the U.S., UK
and EU through Mission US and Mission Europe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission US**: Mission Underwriting Holdings, LLC, which is a subsidiary that was initially funded by
equity capital from our controlling shareholder and operated by our management team, and whose equity interests were acquired, by merger, by Accelerant Holdings on May 1, 2024. Prior to May 1, 2024, Mission Underwriting Holdings, LLC was a
consolidated variable interest entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **NAIC**: National Association of Insurance Commissioners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net Revenue Retention**: Expressed as a percentage, the current period's Exchange Written Premium of
Members that were actively writing Exchange Written Premium in the prior period divided by these same Members' prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium
from previously onboarded Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Owned Members**: Members in which Accelerant either has a minority equity ownership interest or
controlling equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Owned Premium**: The premium produced by Mission Members and Owned Members, who receive commissions for
sourcing and underwriting business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **P&C**: Property and casualty insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Primary Insurance Company**: Carriers who write business on their license and thus are responsible for
insurance policy forms, rate filings, etc. Primary Insurance Companies will often then reinsure the risk they have written to third-party reinsurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Reinsurer**: An insurance company that insures risk written by another insurance company. Reinsurers
generally are not required to be licensed directly in a given jurisdiction to provide such reinsurance coverage; however, absent any such license, reinsurers are limited only to writing such risk in a (secondary) reinsurance capacity and not in a
(primary) direct capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk capital partners**: Third-party insurance companies, reinsurers or institutional investors
that provide capacity through the Risk Exchange, directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk Exchange**: The Accelerant technology, data ingestion, and agency operations that serve the needs of
our Members and risk capital partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk Exchange Insurer**: Third-party Primary Insurance Company deploying underwriting capacity directly
through our Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Selling Shareholder**: ACP Accelerant Holdings LP; the shareholder which, as part of this offering, is
selling shares received following the re-designation of existing common shares following the Accelerant Holdings LP Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Third-Party Direct Written Premium**: GWP written directly with Risk Exchange Insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **TPA**: Third-party administrator, providing claims handling and other operational functions related to
administration of insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **U.S.-UK Tax Treaty**: The Convention Between the Government of the United States of America and the
Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains, signed July 24, 2001.

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**PROSPECTUS SUMMARY** 

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our Class A common shares. You should read this entire prospectus carefully, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes thereto included elsewhere in this prospectus, before making an investment decision. Unless the context otherwise requires, the terms "Accelerant," "the Company," "we," "us," and "our" in this prospectus refer to Accelerant Holdings and its consolidated subsidiaries.* 

**Our Vision** 

To become the preeminent specialty insurance marketplace connecting underwriters and risk capital in a transparent and modern way.

**Company Overview** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Our Risk Exchange is designed to be simpler, easier, and faster than legacy models for transferring risk. Inaccurate and incomplete underlying policy data plagues the traditional insurance value chain and prevents underwriters from deriving meaningful and actionable information. Our purpose-built Risk Exchange is underpinned by proprietary technology that ingests Member policy data and third-party data from disparate and complex data environments and pools it into a single, digestible dataset with over 21 thousand unique attributes and over 79 million rows of data as of March 31, 2025. This information enables automated portfolio monitoring and delivers actionable insights to underwriters and capital providers across the Risk Exchange, helping us drive lower-than-average loss ratios compared to the broader industry, optimized pricing, and accelerated growth.

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![LOGO](g543111g06g06.jpg)

We believe that our Members' success makes us the destination of choice for the industry's best specialty underwriters. We deliver distribution management and operational, actuarial, regulatory, and stable capital support to our Members, and our holistic offering promotes our Members' growth and better underwriting performance. On average, our Members grow gross premiums written through the Risk Exchange by 52% in their first two years, or at an annual rate of 39% on a weighted-average basis at low-to-mid 50-percentage loss ratios, on average. For the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, our gross loss ratio was 53%, 54% and 51%, respectively. We received an independent third-party Net Promoter Score of 89 (out of 100) from our Members (based on a survey result), which we believe will attract a robust pipeline of potential future Members.

We focus on MGAs with strong underwriting track records and specialty underwriting expertise who predominately underwrite low-limit, low-hazard, specialty commercial risks. We conduct a thorough diligence process when selecting new Members for our Risk Exchange. We carefully construct the Risk Exchange portfolio to maximize diversification and predictability. Our Members had a weighted-average gross written loss ratio of approximately 50% for business written through the Risk Exchange in underwriting year 2024, and the majority of Members' weighted-average gross loss ratios for underwriting year 2024 are within eight points of the weighted average, creating a low-volatility portfolio. Since our inception, we have declined approximately 90% of prospective new Members (representing self-reported premiums of $18 billion in aggregate) that we believe did not fit within our model, reflecting our selective invitation of only the best MGAs to join our Risk Exchange.

Our commitment to selecting the best Members, optimizing Member performance and providing full data transparency has attracted a growing and diverse set of high-quality risk capital partners. We started with two risk capital partners in 2019, growing the number to 28 in 2020, 46 in 2021, 60 in 2022, 66 in 2023, and 96 in 2024. These risk capital partners include insurance and reinsurance companies, as well as institutional investors contributing capital to Flywheel Re, a reinsurance sidecar, who are attracted to the uncorrelated, attractive return profile of the risk that they can access through the Risk Exchange. Reinsurance companies and institutional investors in Flywheel Re access the Risk Exchange by reinsuring business from Accelerant Underwriting. Starting in 2023, five third-party insurance companies joined our platform and began accessing the Risk Exchange directly. In 2024, eight more third-party insurance companies joined, and over time we believe that the majority of our Risk Exchange premium will be written

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by new and existing third-party insurance company partners. The depth and breadth of risk capital partners supports our operational flexibility and our growing Member base. It also allows us to maintain a capital light model.

The Risk Exchange is our fee-based core business. At opposite ends of the Risk Exchange, we operate our MGA Operations and Underwriting segments, further enhancing our value proposition. Our MGA Operations segment includes our MGA incubator, Mission Underwriters, which has supported the formation of 31 MGAs (our "Mission Members"). Mission Underwriters expands our addressable market to include underwriters presently employed by traditional insurance companies looking to form their own MGAs. In addition to Mission Members, the MGA Operations segment also captures the financial contributions of 16 Members in which we own an equity ownership interest (our "Owned Members"). Our selective equity participation allows us to make attractive investments in, and further align with, Members, enabling us to capture some of the value we help create. In nearly every instance (with only two exceptions), the MGAs in which we have invested were already Members at the time of our investment. On average, our investment in a Member has taken place nine months after the MGA became a Member. In total, we own an equity ownership interest, either directly or through Mission, in 47 of our 232 Members, and we expect our Owned Members and Mission Members in aggregate to remain a minority portion of our total Members. For the trailing twelve months ended March 31, 2025, these Members contributed $1.03 billion, in Exchange Written Premium, or 29% of our total Exchange Written Premium for that period.

Our Underwriting segment captures the portion of the Risk Exchange portfolio written by Accelerant Underwriting and the corresponding underwriting profit realized on retained business. We have historically targeted to reinsure 90% of premiums written and reinsured by Accelerant Underwriting through the Risk Exchange to risk capital partners, with Accelerant retaining approximately 10%. We expect this retained portion of Risk Exchange premium in the aggregate to decrease over time. We view our Underwriting segment as a strategic asset and source of operational flexibility that we use to broaden the risk capital pool, align incentives with current and prospective risk capital partners and expedite the onboarding of new Members and the launch of new products.

As of December 31, 2019, we had 12 Members, writing 60 products across seven countries, and two risk capital partners. As of March 31, 2025, we have grown our platform to 232 Members, writing over 500 specialty insurance products across 22 countries, on behalf of 96 risk capital partners. Since the launch of our platform, only one Member has elected to leave the Risk Exchange based on mutual agreement. In all, we have experienced less than a 1% churn rate in the period from inception of the Risk Exchange through March 31, 2025. We have grown total Exchange Written Premium to $3.5 billion for the trailing twelve months ended March 31, 2025, while achieving a gross loss ratio of 53% for the three months ended March 31, 2025, 54% for 2024 and 51% for 2023. We have grown our revenues by 57% from $219 million for the year ended December 31, 2022 to $344 million for the year ended December 31, 2023, by 75% from $344 million for the year ended December 31, 2023 to $603 million for the year ended December 31, 2024, and by 39% from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025. Our Organic Revenue Growth Rate over the same periods was 57%, 75%, and 38%, respectively. In 2022 and 2023, we incurred net losses of $96 million and $64 million, respectively, reflecting increased investment into our business. For the year ended December 31, 2024, we reported net income of $23 million. We reported net income of $8 million and $2 million for the three months ended March 31, 2025 and 2024, respectively. Our Adjusted EBITDA was $128 million for the trailing twelve months ended March 31, 2025. We generated positive Adjusted EBITDA in 2024 and 2023 of $113 million and $36 million, respectively, which followed Adjusted EBITDA losses of $39 million in 2022. For reconciliations of total revenue to Organic Revenue Growth Rate and net income (loss) to Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

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![LOGO](g543111g01k10.jpg)

***Our History***

Accelerant was founded in 2018 by three industry veterans with over 100 years of collective experience in the insurance and reinsurance industries. They experienced first-hand the structural inefficiencies and fragmentation of the insurance market. There were too many intermediaries operating across siloed entities, resulting in a lack of customer prioritization and excess costs. Antiquated technology, poor data quality, and insufficient transparency has led to information asymmetries, inaccurate pricing, misaligned incentives, and inconsistent capital availability. Our founders were determined to build a platform to solve these issues. By democratizing data and aligning incentives in a single platform, Accelerant strives to deliver better outcomes for all Risk Exchange participants.

In late 2018, we launched operations in Europe, followed quickly by the formation of our first insurance company in 2019. We believed that controlling our own insurance company would kickstart our marketplace initially and provide our Members with the support and service to empower them to focus on profitably growing their businesses. We established relationships with risk capital partners that valued our disciplined approach to sourcing, managing, and monitoring specialty risk. They indirectly provided capacity through reinsurance to support our Members' growing premium base while we maintained our capital-efficient, distribution-focused business model. Simultaneously, we built portfolio analytics and automated monitoring to augment the quality of the portfolio and the underwriting insights that support it. By the end of 2020, we had expanded our footprint into the United States.

Recognizing the significant opportunity to attract underwriting teams out of traditional insurance companies, where underwriters had limited upside, our affiliates launched Mission Underwriters in 2021. Mission Underwriters, our MGA incubator, provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. By the end of 2021, there were five Mission Members that wrote $28 million of GWP in 2021 and grew to 31 Mission Members writing $623 million of GWP for the trailing twelve months ended March 31, 2025. With respect to technology, we made significant enhancements in 2021 to our data ingestion engine, allowing us to ingest Member data from disparate and complex data environments and to augment it with third-party data.

In 2022, we formed Flywheel Re, a reinsurance sidecar, to facilitate the participation of institutional investors in the Risk Exchange portfolio, offering them specialty insurance risk and returns that are uncorrelated with broader financial markets. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025. In June 2025, we raised additional capital from existing and new institutional investors to continue our Flywheel Re strategy. We believe Flywheel Re incorporates a structure that provides multi-year underwriting capacity to support the Risk Exchange platform portfolio as it grows. We expect Flywheel Re's future cash flows and investor returns to be dependent on the loss performance of the underlying portfolio of specialty insurance business the vehicle reinsures and, therefore, relatively uncorrelated with movements or trends in the broader financial markets.

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In 2023, we further evolved the Risk Exchange by allowing third-party insurance companies to join and access the Risk Exchange directly, as well as benefit from our profitable, thoughtfully sourced, managed, and monitored specialty risk portfolio. For the trailing twelve months ended March 31, 2025, Risk Exchange Insurers contributed 18% of total Exchange Written Premium, reflecting strong demand for our unique value proposition. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period.

As part of our strategy to engage with Risk Exchange Insurers, we offer quota share reinsurance contracts to these partners or help them establish reinsurance relationships with other risk capital partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for Risk Exchange Insurers to write and retain an increasing percentage of our Exchange Written Premium and the capital requirements of our enterprise to further decline over time.

**Our Revenue Model** 

We generate revenue through three separate operating segments: Exchange Services, MGA Operations, and Underwriting.

Our Exchange Services segment generates revenue through a fixed-percentage, volume-based fee that our risk capital partners pay to us for sourcing, managing, and monitoring the portfolio of business written by Members.

Our MGA Operations segment includes both Mission Underwriters' consolidated results and those of Owned Members in which we have an equity ownership interest. We generate commission revenue from those Owned and Mission Members that we consolidate and equity income from those Owned Members in which we have a non-controlling equity ownership interest.

Our Underwriting segment captures the net commissions from reinsurers and the net underwriting result from retained business that is written and assumed by Accelerant Underwriting companies.

**Our Market Opportunity** 

We operate within the approximately $2 trillion global P&C insurance market. In Accelerant's core geographies, the United States, Europe, Australia, and Canada, total estimated P&C premiums represented $1.4 trillion in 2022. Today, Accelerant is focused on the specialty P&C insurance market, which includes risks that are either more complex or niche than standard P&C risks and thus require unique underwriting expertise. We estimate that the specialty P&C insurance market represented approximately $252 billion of annual premium in these core geographies in 2022.

Specialty underwriters are the "supply side" of risk in our core market. MGAs are growing underwriting market share given their relative outperformance in innovation and product design. According to Conning, the MGA market in the U.S. alone was estimated to represent over $100 billion of premiums in 2023, having grown by more than 100% from $50 billion in 2018. As the specialty insurance market has continued to mature, MGAs have captured increasingly greater market share in specific underwriting niches because they can better attract top underwriting talent and have flexible, modern technology. Insurance companies that provide coverage to the ultimate insureds, and the institutional investors and reinsurers that provide reinsurance to those insurance companies, serve as the "demand side" of the market. Our Risk Exchange sits in the middle, serving both the "supply-side" and the "demand-side" of this market. We also directly participate on the "supply side" through our MGA Operations segment and on the "demand side" through our Underwriting segment.

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As the industry continues to grow, the specialty insurance market is experiencing multiple structural shifts which we believe will continue to drive opportunities for our Risk Exchange:

***Key "Supply-Side" Drivers:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increasing Number of Specialty Underwriters Looking to Start MGAs:*** Specialty underwriters are
often stifled at traditional insurance companies, burdened by outdated technology and misaligned incentives. They are increasingly looking to join or form new MGAs. This has been reinforced by the broader acknowledgement by market participants and
insurance regulators of the important role that MGAs play in the value chain. Talented underwriters seek entrepreneurial environments with autonomous decision making, better equity upside, and modern technology. The Accelerant solution provides
existing MGAs with flexibility and greater control over their businesses. We deliver distribution management and operational, actuarial, regulatory, and stable capital support. We do this for both established MGAs, as well as underwriters looking to
form new MGAs through Mission Underwriters, which supplies start-up financing, in addition to turnkey, end-to-end technology and operational support. The accelerated formation of new MGAs continues to grow the market opportunity, producing a broader
potential Member base for Accelerant and gives participants on our Risk Exchange access to previously unavailable market niches.  **** ** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increased Need for Specialty Insurance Products:*** A variety of broad-based, fundamental shifts

AI, machine learning, and data analytics. Historically, the required technological and data capabilities could only be assembled within monolithic insurance companies. However, yesterday's mainframe now operates on every underwriter's
smartphone. By breaking down cost barriers, an increasingly distributed technology architecture has paved the way for entrepreneurial underwriters outside traditional insurance companies to introduce new products and processes to the market.

***Key "Demand-Side" Drivers:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Heightened Demand for Low-Volatility Risk:*** Historically,
attractive specialty, small-to-medium-sized enterprise ("SME") insurance risk has been retained by a small number of
Primary Insurance Companies, and therefore, inaccessible to many insurers, reinsurers, and institutional investors. This risk portfolio typically has a lower-volatility loss signature as compared to the P&C industry at large, given the smaller
size and complexity of the insureds' business models. Accelerant makes this otherwise difficult-to-access portfolio of specialty risk available to a broad range of
risk capital partners. Furthermore, we construct our portfolio to have low exposure to natural catastrophe risk. Concerns around changes in climate and challenges with evaluating these risks have driven risk capital partners to search for
lower-volatility risks to insure, such as those written through the Risk Exchange. Risk capital partners consistently identify the diversifying impact of our low-volatility portfolio as a primary driver for
joining the Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Modern Technology Promotes Cost-Effective Access to SME Policies:*** **  Legacy insurance
companies find accessing the SME market to be uneconomical, as their cost-to-service is high relative to premium volumes. Outdated processes result in high expense
ratios that make it uneconomical to service smaller dollar policies, despite the attractive low loss ratios these policies often produce. We historically have a four percentage point general and administrative expense advantage versus our estimate
of the market. Our proprietary technology removes these performance barriers through superior data collection, ingestion, and analytics. Our technology helps underwriters make better-informed underwriting and strategic decisions. Our Risk Exchange
provides cost-effective access to this attractive segment for legacy insurers and reinsurers. We expect this to continue to attract more Risk Exchange Insurers

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directly onto the platform and increase the portion of the Risk Exchange premiums written by Risk Exchange Insurers relative to Accelerant-owned insurance companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Alternative Capital Increasingly Desires Non-Financially Correlated Returns:*** There is growing demand from institutional investors for the type of risk in our portfolio. Institutional investors value the returns associated with underwriting that exhibits a low correlation with financial market
conditions. In addition, the low volatility of the Risk Exchange portfolio further enhances this diversification. Historically, these institutional investors were limited to investing in short-term, narrow property catastrophe-focused opportunities.
Accelerant meets investor demand for opportunities to participate more broadly across the specialty P&C insurance market. Flywheel Re delivers superior diversification in a capital-efficient structure that allows investors to access attractive
returns across a large number of insurance products and across multiple underwriting periods.

**The Accelerant Advantage** 

Accelerant operates a data-driven risk exchange connecting specialty insurance underwriters with risk capital partners. Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

In a market characterized by multiple layers of intermediation, complexity, and ineffective technology and use of data, our competitive advantage is supported by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Data-Driven Insights and Technology:*** The traditional insurance value chain is beset by
inaccurate and incomplete data on underlying policies. Underwriters are unable to derive meaningful and actionable information that supports underwriting performance and risk capital partners lack high confidence in risk exposure and performance.
Based on our Members' experience, we estimate that a small fraction of the policyholder data that is collected at the start of the insurance value chain is typically shared with the end capital provider. We believe this resulting information
asymmetry leads to a market with artificially high prices and depressed volumes. We built Accelerant to solve these problems.

Our proprietary ingestion tools allow us to capture insurance data from disparate and complex data environments. We collect Member exposure data from both structured and unstructured environments and combine it into a single dataset that, as of March 31, 2025, consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from over one thousand unique data mappings. On average, in the first quarter of 2025, we ingested 8.9 million additional rows per month into our growing dataset. This high-fidelity, high-quality data is combined with third-party data and made available to both Members and risk capital partners in an actionable form. We believe that our digital capabilities and workflow tools will lead to better data, better analytics, and reduced effort at scale.

Our proprietary technology allows underwriters to select risks with the benefit of platform-driven insights and for our risk capital partners to gain transparency into the portfolio of risks they are assuming.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Member-Centric Culture:*** Accelerant is organized around its Members, seamlessly providing them
with the services they require to succeed, including distribution management and operational, actuarial, regulatory, and stable capital support. Key to our service model is the assignment of a dedicated expert support team to each Member, including
relationship managers, claims adjusters, actuaries, underwriters, and data scientists. The legacy insurance industry tends to organize around product silos, connecting multiple disjointed nodes across several organizations. This results in a highly
fragmented value chain which introduces high costs, large data loss, and structural fragility. We work with Members to launch new product offerings in approximately 14 weeks, compared to what we believe is the industry standard of six to 12 months.
We provide our Members with a dedicated team of experts, which includes

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underwriting and data managers, alongside regular consultations to drive performance enhancement. We have protocols in place to ensure that we do not compete with our Members. Such protocols center around bespoke product uniqueness for each Member, transparency of Member competition and non-favoritism, and channel definition. This creates a dynamic that further differentiates us from the legacy market. There may be potential Members that are less interested in becoming a Member because of our investment in other Members that are perceived to be competitors, but based on our experience, we believe the likelihood of this is low. Our Member-centric culture and the breadth of our capabilities allow us to attract and retain what we believe to be the industry's best underwriters in their respective specialties. <br>

We provide Members with long-term capital and operational support so that they can plan for the longer term and focus on their core businesses. We believe taking a longer-term view promotes faster, more profitable and more durable growth for Members. In exchange for a five-year capacity commitment from us, our Members provide us with exclusivity agreements on a rolling, five-year basis. We provide Members with data and analytics, portfolio management, assistance with product expansion, and widening distribution networks. Our commitment to supporting our Members' growth is evidenced by our Net Revenue Retention of 157% for the trailing twelve months ended March 31, 2025 and third-party generated NPS score of 89 in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Disciplined Approach to Sourcing, Managing, and Monitoring Risk:*** Our methodology of carefully
sourcing, managing, and monitoring risk enables us to develop our portfolio of specialty risk. We source prospective new Members through our industry network and market referrals and make selections based on their loss ratio track records. Our
current focus is predominantly on commercial, low-limit SME lines of business. Our existing portfolio of products consists of commercial combined, property owners and professional indemnity products together
with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance
products the SME owner would need or seek to obtain in each niche. We take a disciplined approach to managing and monitoring risk in collaboration with Members that combines our data insights with advice from insurance industry veterans. We meet
with each Member monthly to review their portfolio performance, and our technology stack enables us to derive data-driven insights that uncover hidden opportunities and potential vulnerabilities in a Member's portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Diverse, High-Quality Risk Capital Partners:*** Maintaining long-term relationships with our risk
capital partners is a key component of our business and revenue model. Whether they participate on the Risk Exchange directly or through reinsurance, we have partnered with a broad group of high-quality risk capital partners who are attracted to the
Risk Exchange by the portfolio's consistent and profitable underwriting performance. We have grown the number of risk capital partners on our platform from two in 2019 to 28 in 2020 to 96 as of March 31, 2025. Our existing risk capital
partners include blue chip insurance and reinsurance companies with substantial balance sheets that have the capacity to support the pace of our growth and could singularly support our entire portfolio today. Continued strong demand from risk
capital is an important contributing factor to our robust Member pipeline. Additionally, we intend to continue to increase the portion of the Risk Exchange premiums written directly and retained by Risk Exchange Insurers and reduce the portion
written by Accelerant Underwriting, which will shift even more of our revenue model to being fee-based.

**Our Growth Strategy** 

Since inception, we have grown Exchange Written Premium at a 217% compounded annual growth rate. We believe we will continue to maintain strong revenue growth based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Growing Existing Members' Businesses*:** Our Members are the key to our success –
when they succeed, we succeed. We believe our existing Members will continue to expand as they capture greater

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market share, introduce new products, and enter new regions. Accelerant's exclusivity arrangements and rights of first refusal on new product launches promote new product growth on the Risk Exchange. Accelerant's long-term five-year capacity commitment allows our Members to plan for the future with confidence, focusing on new opportunities, rather than sourcing underwriting capacity. These factors have led to our Members growing premiums written on the Risk Exchange by over 39% annually on a weighted-average basis. Additionally, not all products written by our Members are written through the Risk Exchange. In 2023, in Europe and the U.S., approximately 59% and 58%, respectively, of Members used both the Risk Exchange and other third-party capital providers to secure their capacity. We believe this presents a significant opportunity for the Risk Exchange to increase its wallet share and capture even more of those Members' premiums. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Attracting New Members:*** Adding new Members to our platform has been a significant source of
growth historically, and we expect this to continue in the future. We began with three Members in 2018 and had 232 as of March 31, 2025. Our expert client-facing service model, proprietary technology offering, and long-term capacity attract
prospective Members to our Risk Exchange. We had over 300 additional MGAs in our evaluation pipeline as of March 31, 2025, which collectively reported $2.5 billion in annual premiums. We expect our comprehensive diligence process when
selecting members as well as our growing Member base and increasingly diversified portfolio to drive further interest from additional risk capital partners and, in turn, reinforce the Risk Exchange's value proposition to existing and
prospective Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding Our Product Portfolio:*** Our portfolio is focused on low-volatility, low-severity SME commercial risks. This market segment within our focal lines of business and geographies is large, estimated at $117 billion of
premium for 2022, giving us considerable room to expand. We intend to prudently expand into selected additional lines of business, bringing our estimated serviceable market to $252 billion. As we continue to scale, we believe there are
specialty underwriters that excel in larger-market commercial, commercial auto, workers' compensation, and specialty personal lines whom we can attract to our Risk Exchange while maintaining the same high-quality portfolio. We will always
endeavor to attract the highest quality underwriting talent to our Member base, notwithstanding the niche or line of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Geographic Expansion:*** As of March 31, 2025, 40% of our total Members were in Europe,
including the UK, 50% in the U.S., and 10% in Canada. We intend to grow with our existing product portfolio by adding additional countries to our operation. Our geographic expansions to date have been successful and we believe our operating
footprint and globally integrated technology platform position us well to capitalize on opportunities in new countries. In the near-term, we believe that Australia and continued expansion in Canada represent attractive growth opportunities given
their combination of high MGA penetration and similar structural challenges present in their legacy insurance marketplaces. We are always evaluating other global expansion opportunities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding to New Member Types*:** To date, our Members have been MGAs primarily focused on
specialty insurance. We have been successful in addressing these clients' needs, and we believe there are other sizable Member types which have similar structural challenges that would benefit from a relationship with us. In particular, captive
insurance companies constitute a $176 billion global market and face similar challenges as our existing specialty Members. Captives represent entities engaged in self-insurance, either standalone (e.g., single business) or as a group of related
insureds forming a jointly owned insurance vehicle. Captives have identified inflexible and unreliable insurers, poor data transparency, high expenses, and slow response times as key challenges to their operations – each of which our platform
could address. From our perspective, the aligned incentives inherent in the captive model result in more attractive risk than other markets. As of March 31, 2025, we had nine Members engaging in captive business.

Along with the opportunity to provide retail brokers access to the suite of products offered by our Members, we believe we can expand our existing partnerships with retail P&C insurance brokers that have specific areas of expertise and could enhance their economics by establishing a joint venture

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MGA with Accelerant. Our Mission Underwriters business will help facilitate this venture, which will begin with the establishment of a new MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Deepening and Broadening Relationships with Risk Capital Partners:*** We have diverse, stable, and
high-quality risk capital relationships, including 13 Risk Exchange Insurers operating directly on the Risk Exchange, 79 third-party reinsurance companies, and four institutional investors contributing capital to Flywheel Re as of March 31,
2025. Our existing risk capital partners maintain substantial balance sheets and have the capacity to support our current and anticipated future growth. While we do not need to add any other risk capital partners to keep pace with our growth, we
expect to continue to expand the number of risk capital partnerships in response to the growing demand for our value proposition, which will drive increased competition for low-volatility, low-severity risk, providing enhanced terms and more
favorable economics for the Risk Exchange. Writing more premium directly with Risk Exchange Insurers will shift even more of our revenue model to being fee-based.

**Our Technology and Data Platform** 

Our proprietary, purpose-built technology and data platform is a critical part of executing our vision for the Risk Exchange, which is to provide greater transparency and shared information across the entire value chain.

Underpinning the Risk Exchange's value proposition for our Members, are our data and technology capabilities that we believe are unmatched in the industry. We ingest and combine data from a variety of sources (e.g., policy and claims systems), augment it with third-party data, and analyze that information for the benefit of all Risk Exchange participants. Accelerant captures all available data on risk exposures and claims – we do not have to leave data behind because of technological limitations. By ingesting structured and unstructured data, we can preserve data that is often lost across the insurance value chain. As of March 31, 2025, our dataset consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from one thousand unique data mappings, and we have ingested an average of 8.9 million additional rows per month in 2025. Once ingested, data is validated, transformed, and governed into robust and tailored underwriting intelligence that is available to Members and risk capital partners alike. As a result, our Risk Exchange lessens information asymmetries, enabling trust between Buyers and Sellers on our platform.

Our Members and risk capital partners derive significant value from our data and analytics platform and their specific needs and usage patterns continuously evolve. We seek to regularly enhance the delivery and functionality of our data and analytical capabilities utilizing workflow tools and our cloud-native, digital platform that offers Risk Exchange participants a single, secure place to operate. Examples of our data and analytics advantage include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Accelerant Risk Indexing:** We generate a proprietary risk score on individual risks to improve selection
and pricing for select Members today. By introducing third-party data in the form of distance to the nearest pub and area crime incidents, we helped a Member improve their gross loss ratio by 5.3% when back testing the Member's data, which is a
significant improvement to the underwriting profit for our risk capital partners. We expect to compound these data-driven inputs continuously to make our portfolio stronger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Claims Recovery Model:** We employ a large language model ("LLM") to analyze our
Accelerant-sanitized data and help identify the claims with the highest likelihood for subrogation (i.e., recovery) in the United Kingdom. Thus far, we have improved our subrogation rate from 0.5% of claims to approximately 2% of claims, leading to
an estimated 1% improvement in gross loss ratio, assuming a portfolio gross loss ratio of 50%, which is a significant improvement for our risk capital partners. As our model continues to develop and train, we aim to further reduce subrogation rates
and derive other actionable insights.

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We have assembled a team of over 150 highly skilled engineers, data scientists, product managers and designers whose collective expertise spans a broad range of technical areas. As of March 31, 2025, these team members represented 32% of the Accelerant workforce. We continue to make significant investments in the development of our data, analytics, and AI.

**Our Operating Segments** 

We operate our business across three operating segments – Exchange Services, which is the core offering of Accelerant, MGA Operations, and Underwriting.

***Exchange Services***

The Exchange Services segment is our core business, our Risk Exchange – the Accelerant technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. We derive revenue in this segment from contractually fixed fees based on premium volume, paid by risk capital partners for sourcing, monitoring, and managing their risk portfolios.

***MGA Operations***

Our MGA Operations segment captures the economics of both Mission Members and Owned Members in which Accelerant has a minority equity ownership interest, reflecting such earnings as equity method income, or in which Accelerant has a controlling stake, reflecting such earnings fully within our consolidated results. Mission Underwriters represents the largest component of this segment. Mission Underwriters provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters looking to launch their own MGAs. We own the majority of every MGA that Mission Underwriters helps to create, with meaningful equity shared with management teams based on the performance of their MGA. Mission Underwriters allows Accelerant to directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance companies to start their own independent platforms. Mission Underwriters expands our addressable market. MGA Operations also provides us with the opportunity to make attractive, long-term investments in existing Members, driving alignment of interest, as well as enabling Accelerant to participate in the value the Risk Exchange creates for MGAs.

***Underwriting***

Our Underwriting segment contains all revenue and expenses associated with Accelerant Underwriting. We view our owned insurers and reinsurer as strategic assets and sources of operating flexibility. As we began operations, our owned insurance companies promoted alignment with our risk capital partners by demonstrating our steadfast focus on sourcing the most attractive specialty risk. Our reinsurer and institutional investor risk capital partners access premium on the Risk Exchange through reinsurance from Accelerant Underwriting and from the quota share arrangements Accelerant Re Cayman writes with our Risk Exchange Insurers. For the trailing twelve months ended March 31, 2025, 92% of premiums written by Accelerant Underwriting were ultimately reinsured to third-party risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

**Our Members *("Supply Side" of our Risk Exchange)*** 

Our Members are experienced specialty underwriters that produce attractive loss ratios. The Members with whom we partner are typically MGAs with $10 to $40 million in premium, a headcount of 15 to 30 employees, and an average tenure of 15 years, operating independently of insurance companies, with delegated authority to underwrite risk on an insurance company's behalf. We select Members that have an impressive track record of underwriting low-volatility, low-limit, low-hazard risks. The quality of the portfolio written by our Members is highlighted by our gross loss ratio of 53%, 54%, and 51% for the three months ended March 31, 2025 and the

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years ended December 31, 2024 and 2023, respectively. Through our rigorous vetting process, we review prospective Members across a range of areas including underwriting, actuarial, compliance, claims, technology, and key talent. Typical criteria we use in screening for new prospective Members include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3-to-5-year underwriting track record, either as a standalone MGA or as part of larger organization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Predominantly commercial, low-limit SME risk focus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriter-led culture with focus on maintaining profitable business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Typical annual premium volumes of $3 million to $100 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Robust data capture capabilities that can be shared with our Risk Exchange

Our Members typically service small-and-medium-sized businesses, or SMEs, that have annual revenues of $50 million or less, and have one or more risk characteristics that require specialty insurance products. Such risk characteristics may include, for example, the insured's industry or profession, the location of property exposure, the construction or occupancy type, or the historical claims activity of the aggregate insured business. Our existing portfolio of products consists mostly of commercial combined, property owners and professional indemnity products together with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance products the SME owner would need or seek to obtain in each niche. These products are sold in the domicile or state where the insured is based. In the U.S., the specialty insurance products typically, but not always, are written on an E&S basis and regulated by various states' Departments of Insurance.

Our commitment to our Members and the quality of the Risk Exchange portfolio continues long after a Member is onboarded. Ongoing monitoring through data, frequent expert reviews and audits enables our Members to not only quickly act on growth and business opportunities, but also enables us to identify any areas of deterioration in real time and immediately put in place risk mitigation and/or remediation actions to maintain low loss ratios.

Our Members' weighted average annual growth rate of premiums written on the Risk Exchange of 39% per year, which includes both growth of existing products on our platform and our Members launching new products on our platform, underscores the accelerating growth of Members when they work with Accelerant.

![LOGO](g543111g03g03.jpg)

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Our Member base is highly diversified across both geographic regions and the products and classes of business they write. Our largest member accounted for 8% of our Exchange Written Premium for the trailing twelve months ended March 31, 2025.

The following Member information is as of March 31, 2025, and the following premium information is for the trailing twelve months ended March 31, 2025:

![LOGO](g543111g03k12.jpg)

(1) Excludes Mission Members.

**Our Risk Capital Partners *("Demand Side" of our Risk Exchange)*** 

Premium generated from Members is centrally managed by our Risk Exchange and placed with a diverse stable of high-quality risk capital partners or Accelerant Underwriting. Our risk capital partners include 13 Risk Exchange insurance companies, 79 third-party reinsurers, and four institutional investors contributing capital to Flywheel Re as of March 31, 2025.

The majority of the Risk Exchange's business that is placed with our reinsurers and institutional investor partners is written directly by Accelerant-owned insurance companies within the U.S., Canada and Europe. The risk is then reinsured, save for a small retention, to Accelerant Re Cayman, our Cayman-incorporated reinsurance company. Reinsurers and institutional investors access the business pooled at Accelerant Re Cayman via quota share, excess of loss, and stop-loss reinsurance arrangements. In 2022, capital from institutional investors was raised to establish Flywheel Re and support business assumed by Flywheel Re during a multi-year risk period ending in June 2025. Additional capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. Flywheel Re is a special purpose reinsurance entity that participates in the Risk Exchange portfolio on a multi-year basis. We expect Flywheel Re to become a larger part of our risk capital offering as this source of risk capital adds diversification, predictability, and stability to the "demand side" of our platform. The participation of institutional investors and reinsurers also diversifies our sources of risk capital and introduces competitive tension that regulates the cost of capital. Our reinsurer and institutional investor risk capital partners comprise highly rated, third-party reinsurers, the significant majority holding an "A-" or better rating from A.M. Best or acting on a collateralized basis, and are sufficiently capitalized to support our planned growth over the years,

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subject to their appetite. Our largest reinsurance relationship represented 14% of Exchange Written Premium for the three months ended March 31, 2025.

The balance of the Risk Exchange's business is written by third-party insurance companies, in which we do not have an equity stake or any form of ownership and which access the Risk Exchange directly and authorize Accelerant agencies and brokers to source, manage, and monitor the risk. Risk Exchange Insurers that join the Accelerant Risk Exchange can select the business they write based on product and geography. We actively manage the portfolios of the Risk Exchange Insurers to ensure both their own portfolios and those across the platform remain well-balanced from a relative volatility and expected profit perspective. Through March 31, 2025, 13 third-party insurance companies have directly joined the Risk Exchange and contributed 19%, 16%, and 10% of Exchange Written Premium for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, respectively.

If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period with the balance contributed by Accelerant Underwriting. As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for premiums written and retained by Risk Exchange Insurers to represent a significant portion of the overall Exchange Written Premiums over the next several years and the capital requirements of our enterprise to decline.

For the trailing twelve months ended March 31, 2025, our Exchange Premium written by risk capital type was as follows:

![LOGO](g543111g00p05.jpg)

Risk Exchange Insurers may seek our help in securing reinsurance capacity given the breadth of our relationships. In these instances, we can help them establish reinsurance relationships with other risk capital partners as well as reinsure an agreed-upon portion of premium at Accelerant Underwriting.

We maintain a capital-efficient Underwriting segment, with 92% of premium written by Accelerant Underwriting during the trailing twelve months ended March 31, 2025 reinsured to risk capital partners via quota share and excess of loss arrangements. Third-party reinsurers and institutional investors reinsured 69% and 23% of Accelerant GWP, respectively, during the trailing twelve months ended March 31, 2025. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

To bolster the risk profile of the Risk Exchange portfolio, we buy inuring excess of loss protection from third-party reinsurers to mitigate the impact of significant loss events. We secure this as additional volatility protection across the entire portfolio, enhancing the value and predictability of our portfolio to risk capital partners.

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**Summary of Risks Associated with Our Business** 

An investment in our Class A common shares involves numerous risks described in "Risk Factors" and elsewhere in this prospectus. You should carefully consider these risks before making a decision to invest in our Class A common shares. Key risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Risk Exchange has a limited operating history, which makes it difficult to evaluate its prospects,
potential for expansion to new Members and product offerings as well as the future prospects of our overall business. Any expansion efforts that are unsuccessful may materially adversely affect our business, results of operations, financial
condition and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have generated net losses in the past and may incur losses in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in our financial strength rating may adversely affect the volume of business we can write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain Members may choose to leave our Risk Exchange after their contractual commitments have expired, which
would adversely affect our results of operations and our ability to offer attractive risk opportunities to our risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to continue enhancing our technology-based solutions at a pace that allows us to remain
attractive to our Members, or continue to gain internal efficiencies and effective internal controls that promote the utility of the analytics we provide to Members, our operating results, client relationships and growth could be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our Members do not provide the data they are contractually obligated to provide or the data provided by our
Members is inaccurate or incomplete, our Risk Exchange and participating risk capital partners may be unable to accurately price the risk transferred through our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our Members do not maintain consistency in the level of skill and expertise they demonstrate, or adhere to
the underwriting guidelines of our Risk Exchange, our Members may experience higher loss ratios and our reputation and relationships with insurance carriers, reinsurers, other Members, other risk capital partners, and brokers could be harmed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have expanded rapidly in recent years, and we may not be able to continue to attract risk capital partners
at the same rate or of the same quality to facilitate similar growth in the future or continue maintaining a capital-efficient model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and results of operations could be materially adversely affected if we do not
accurately assess the underwriting risk we retain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to purchase third-party reinsurance in amounts we desire on commercially acceptable terms or
on terms that adequately protect us, and may not have sufficient third-party reinsurance coverage provided by risk capital partners accessing our Risk Exchange, in each case, and this potential inability may cause us to retain more risk than we
expect or have forecast, which may materially and adversely affect our business, results of operations and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have experienced rapid growth in recent years, and our recent growth rates may not be indicative of our
future growth. As our costs increase, we may not be able to generate sufficient revenue to achieve, and if achieved, maintain, profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to economic and reputational harm if companies with which we do business (including our Members
and our risk capital partners) engage in negligent, grossly negligent, misleading or fraudulent behavior and damage to our reputation could have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to leverage our information systems to enhance the information benefits available to our
Members and risk capital partners through our Risk Exchange, our results may be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future success depends on our ability to continue to develop and implement technology, and to maintain the
confidentiality of this technology;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our businesses are subject to governmental regulation, changes in which could reduce our profitability, limit
our growth, or increase competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as we continue to grow our Member base, we anticipate expanding into new geographies that could give rise to
additional regulatory, risk and other issues, which may materially affect our business, results of operations, financial condition and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• while we were not a passive foreign investment company ("PFIC") in 2024 and do not expect to be a
PFIC in 2025 or in future years, U.S. persons who own our Class A common shares may be subject to adverse tax consequences if Accelerant is considered a PFIC for U.S. federal income tax purposes in any year in which they acquire or hold shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors discussed under "Risk Factors" beginning on page 26.

**Implications of Being an Emerging Growth Company** 

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2021 (the "JOBS Act"). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These reduced requirements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are only required to have two years of audited financial statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the requirement that critical audit matters be discussed in our independent auditor's
reports on our audited financial statements or any other requirements that may be adopted by the Public Company Accounting Oversight Board (the "PCAOB") unless the SEC determines that the application of such requirements to emerging growth
companies is in the public interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act of 2002 (the
"Sarbanes-Oxley Act") requiring that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the "say on pay" and "say on frequency" advisory vote requirements of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from certain disclosure requirements relating to compensation of our executive officers and are
permitted to omit the detailed compensation discussion and analysis from proxy statements and reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

We may take advantage of these reduced requirements until the last day of our fiscal year following the fifth anniversary of the completion of this offering or such earlier time that we are no longer an emerging growth company. We will remain an emerging growth company until the earliest to occur of (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the date we qualify as a "large accelerated filer," with at least $700 million of equity securities held by non-affiliates; (iii) the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year ending after the fifth anniversary of the completion of this offering.

Further, pursuant to Section 107 of the JOBS Act, as an emerging growth company, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies. As a result, our operating results and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted any new or revised accounting standards before us.

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For risks related to our status as an emerging growth company, see "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Shares—We are an "emerging growth company" and we expect to elect to comply with reduced public company reporting requirements, which could make our Class A common shares less attractive to investors."

**Our Equity Sponsor** 

**Altamont Capital** 

Altamont Capital is a private equity firm with over $4 billion of capital under management, focused primarily on making long-term, control investments in middle-market businesses. ACP Accelerant Holdings LP is an entity controlled and beneficially owned by investment funds advised by an affiliate of Altamont Capital, and is the Selling Shareholder.

**Corporate Information** 

Accelerant Holdings was incorporated in the Cayman Islands in October 2021 with registered number 381680. Our corporate headquarters is located at Accelerant Holdings, c/o Accelerant Re (Cayman) Ltd., Unit 106, Windward 3, Regatta Office Park, West Bay Road, Grand Cayman. Our telephone number is +1 (345) 743-4611.

Our principal website address is www.accelerant.ai. The information contained on, or that can be accessed through, our website is deemed not to be incorporated in this prospectus or to be part of this prospectus. You should not consider information contained on our website to be part of this prospectus in deciding whether to purchase our Class A common shares.

**Corporate Structure** 

The following organizational chart summarizes the ownership percentage of each of Altamont Capital and its affiliates, existing significant shareholders, management, and expected new public shareholders, immediately following the offering, expressed as a percentage of each of voting and economic interests. Holders of the Class A common shares and the Class B common shares are each entitled to certain rights. See "Description of Share Capital—Class A Common Shares and—Class B Common Shares."

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The organizational chart also depicts a simplified structure of the Company, which we consider to include our key operating subsidiaries. The organizational chart is provided for illustrative purposes only and does not purport to represent all legal entities affiliated with, or all subsidiaries of, the Company or the actual legal structure of the Company.

![LOGO](g543111g01a25.jpg)

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**The Offering** 

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| | |
|:---|:---|
|  Class A common shares offered by us | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common shares (Class A common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). |
|  Class A common shares offered by the Selling Shareholder | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common shares (Class A common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). Following the re-designation of existing common shares and the Accelerant Holdings LP Distribution, our Selling Shareholder will receive Class B common shares. All shares sold by the Selling Shareholder in this offering will be converted to Class A common shares upon sale. |
|  Class A common shares to be outstanding after this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common shares (or Class A common shares if the underwriters' option to purchase additional Class A common shares is exercised in full); or Class A common shares. |
|  Underwriters' option to purchase additional Class A common shares | <br>The underwriters have an option to purchase up to additional Class A common shares from us and additional Class A common shares from the Selling Shareholder at the initial public offering price, less underwriting discounts and commissions. The underwriters can exercise this option at any time within 30 days from the date of this prospectus. |
|  Class B common shares to be outstanding after this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common shares. |
|  Directed Share Program | At our request, the underwriters have reserved up to 5% of the Class A common shares offered hereby to offer, at the initial public offering price, to our directors, officers, employees, business associates and related persons. The number of Class A common shares available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Except for any shares acquired by our directors, officers and employees, shares purchased pursuant to the directed share program will not be subject to lock-up agreements with the underwriters. See "Underwriters — Directed Share Program." |

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|:---|:---|
|  Use of proceeds | We estimate that we will receive net proceeds from our sale of Class A common shares in this offering of approximately $ million (or $ million if the underwriters' option to purchase additional Class A common shares is exercised in full), based upon an assumed initial public offering price of $ per share (which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus) and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. We will not receive any proceeds from the sale of Class A common shares by the Selling Shareholder named in this prospectus. |
|  | We intend to use the net proceeds from this offering to fund the $ redemption of the Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, $ million to fund the management fee payable to an affiliate of Altamont Capital and the remainder for general corporate purposes. See "Use of Proceeds" and "Certain Relationships & Related-Party Transactions." |
|  Dividend policy | We do not currently pay dividends on any of our common shares and we currently intend to retain all available funds and any future earnings for use in the operation of our business. We may, however, pay cash dividends on our common shares in the future. See "Dividend Policy." |
|  Controlled company | After this offering, assuming an offering size as set forth in this section, affiliates of Altamont Capital will own Class B common shares, representing % of the combined voting power of our common shares outstanding after this offering (or % of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). As a result, we expect to be a "controlled company" within the meaning of the corporate governance standards of the NYSE. See "Management—Controlled Company Status." Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded. |
|  Proposed symbol for trading on the NYSE | "ARX." |

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|:---|:---|
|  Voting rights and term | Upon the consummation of this offering, the holders of our Class A common shares will be entitled to one vote per Class A common share, and the holders of our Class B common shares will be entitled to ten votes per Class B common share. Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B common shares shall have the right to convert each of its Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a one-for-one basis, upon transfer (other than a permitted transfer) of Class B common shares, such as the Class A common shares sold by the Selling Shareholder in this offering. The Class B common shares will also automatically convert to Class A common shares upon the earlier of (i) the time Class B common shareholders cease to own 50% of the total number of Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.<br>Upon consummation of this offering, assuming no exercise of the underwriters' option to purchase additional common shares, holders of our Class A common shares will hold approximately % of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately % of the combined voting power of our outstanding common shares.<br>If the underwriters' option to purchase additional Class A common shares is exercised in full, holders of our Class A common shares will hold approximately % of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately % of the combined voting power of our outstanding common shares.<br>For a description of the rights of the holders of our Class A common shares and our Class B common shares, see "Description of Share Capital—Class A Common Shares and—Class B Common Shares." |
|  Risk factors | Investing in our Class A common shares involves a high degree of risk. See "Risk Factors" beginning on page 26 of this prospectus for a discussion of factors you should carefully consider before investing in our Class A common shares. |

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The number of Class A common shares and Class B common shares that will be outstanding immediately after this offering is based on Class A common shares and Class B common shares outstanding as of , 2025, and gives effect to the Accelerant Holdings LP Distribution.

The number of Class A common shares to be outstanding after this offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares issuable upon the exercise of options outstanding under our Share
Incentive Plan (the "2023 Plan") as of  , 2025, at a weighted average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A common shares reserved for future issuance under the 2023 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares reserved for future issuance under our 2025 Employee Stock Purchase
Plan (the "ESPP"), which will become effective in connection with this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares issuable upon the vesting of restricted share units granted in
connection with the consummation of this offering.

Unless otherwise indicated, all information contained in this prospectus assumes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the completion of the Accelerant Holdings LP Distribution and the effectiveness of our amended and restated
memorandum and articles of association, each of which will occur upon or prior to the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the re-designation of existing common shares following the Accelerant Holdings LP Distribution, which will
result in the existing common shares which are distributed to holders of vested and unvested restricted profits interests pursuant to the Accelerant Holdings LP Distribution being re-designated into     vested
and     unvested restricted Class A common shares of Accelerant Holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the conversion of all outstanding Accelerant Holdings Class A convertible preference shares and Class B
convertible preference shares into an aggregate of    Class A common shares and     Class B common shares immediately upon the closing of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption of all outstanding Class C convertible preference shares at a redemption price of
$ per share if the holders do not elect to convert such preference shares to common shares at the time of the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of outstanding stock options under the 2023 Plan subsequent to    , 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a   -for-1 share subdivision, which became effective    , 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $ per Class A common share, which is the
midpoint of the estimated initial offering price range set forth on the cover page of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the underwriters' option to purchase additional Class A common shares.

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**SUMMARY ACCELERANT HOLDINGS HISTORICAL CONSOLIDATED** 

**FINANCIAL DATA** 

The following tables set forth the summary of historical financial data of Accelerant Holdings derived from its financial statements as of the dates and for each of the periods indicated. The summary of historical financial data as of December 31, 2024 and 2023 and for each of the years ended December 31, 2024, 2023, and 2022 have been derived from the audited financial statements of Accelerant Holdings included elsewhere in this prospectus. The summary historical financial data as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been derived from the unaudited financial statements of Accelerant Holdings included elsewhere in this prospectus.

Our historical annual results are not necessarily indicative of the results to be expected for our 2025 fiscal year or for any future period. The following information is only a summary and should be read in conjunction with the sections entitled "Basis of Presentation," "Unaudited Pro Forma Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.

**Accelerant Holdings** 

**Consolidated Statements of Operations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions of U.S. dollars)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 2.3 | 0.4 | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **178.0** | **128.1** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **162.5** | **116.1** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **15.5** | **12.0** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **7.8** | **2.1** | **22.9** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant** | $**6.5** | $**7.1** | $**27.2** | $**(48.8)** | $**(91.7)** |

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**Consolidated key operating data** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Number of members<sup>(1)</sup> | 232 | 170 | 217 | 155 | 101 |
|  Net revenue retention<sup>(1)</sup> | 157% | 130% | 153% | 133% | 173% |
|  Exchange written premium<sup>(1)</sup> | $985.2 | $583.8 | $3108.4 | $1787.3 | $1200.7 |
|  Accelerant-retained exchange premium<sup>(1)</sup> | 8% | 11% | 8% | 11% | 15% |
|  Total revenue | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Revenue growth rate | 39% | 77% | 75% | 57% | 118% |
|  Non-GAAP financial measures<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA<sup>(3)</sup> | $42.8 | $27.5 | $113.0 | $36.1 | $(39.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA margin<sup>(3)</sup> | 24% | 21% | 19% | 10% | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organic revenue growth rate<sup>(3)</sup> | 38% | 77% | 75% | 57% | 113% |

---

(1) "See "Management's Discussion and Analysis of Financial Condition and Results of
Operations—Key Operating and Financial Metrics" for information on how we define and calculate these key operating metrics.

(2) See "Reconciliation of Non-GAAP financial measures" section
for details on how non-GAAP measures are defined and reconciled to GAAP measures.

(3) For reconciliations of net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin and total revenue to
Organic Revenue Growth Rate, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

**Accelerant Holdings** 

**Consolidated Balance Sheets** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **As of December 31,** | **As of December 31,** |
| ***(in millions of U.S. dollars)*** | **2025** | **2024** | **2023** |
|  **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments, cash, cash equivalents and restricted cash | $1993.5 | $1880.8 | $1027.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables | 1636.7 | 1433.8 | 980.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1377.0 | 1221.9 | 808.8 |
|  **Total assets** | $**6715.9** | $**6094.9** | $**3737.2** |
|  **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premium | 1986.4 | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2640.5 | 2448.9 | 1405.6 |
|  **Total liabilities** | $**6261.5** | **5667.9** | **3450.5** |
|  **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemable preference shares | 104.4 | 104.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant shareholders' equity | 321.5 | 304.3 | 310.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests | 28.5 | 18.3 | (23.8) |
|  **Total equity** | **454.4** | **427.0** | **286.7** |
|  **Total liabilities and equity** | $**6715.9** | $**6094.9** | $**3737.2** |

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**Capitalization and leverage ratios** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|  Total capitalization (total debt and equity\*) | $| 575.9 | $| 548.4 | $| 407.0 |
|  Debt |  | 121.5 |  | 121.4 |  | 120.3 |
|  **Debt to capitalization ratio** |  | **21%** |  | **22%** |  | **30%** |

---

\* Equity consists of redeemable preference shares classified as mezzanine equity, Accelerant shareholders' equity and non-controlling interests.

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**RISK FACTORS** 

*Investing in our Class A common shares involves a high degree of risk, including the potential loss of all or part of your investment. Before making an investment decision to purchase our Class A common shares, you should carefully consider the following risks, together with all of the other information contained in this prospectus, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and notes thereto included elsewhere in this prospectus. Our business, financial condition, results of operations or prospects could be materially and adversely affected by any of these risks or uncertainties, as well as by risks or uncertainties not currently known to us, or that we do not currently believe are material. This prospectus also contains forward-looking statements and estimates that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of specific factors, including the risks and uncertainties described below. See "Cautionary Note Regarding Forward-Looking Statements."* 

**Risks Related to Our Business and Industry** 

*Risks Related to Our Risk Exchange and Our Members* 

***Our Risk Exchange has a limited operating history, which makes it difficult to evaluate its prospects, potential for expansion to new Members and product offerings, as well as the future prospects of our overall business. Any expansion efforts that are unsuccessful may materially adversely affect our business, results of operations, financial condition and prospects.***

Our business strategy is focused on the expansion of our Risk Exchange, which has a limited operating history. Our Risk Exchange is a new idea in the specialty insurance market, has been built with reality-developed applications, and our portfolio is currently focused on low-volatility, low-severity SME risks. We have limited experience in many aspects of its operation. Any aspect of our Risk Exchange model that does not achieve expected results, including our ability to sustain and adapt the technology underlying it and to continue to attract Members and risk capital partners to it, may have a material and adverse impact on our financial condition and results of operations. It is therefore difficult to effectively assess our future prospects.

Our targeted market of users of our Risk Exchange may not be familiar with our platform and accordingly may have difficulty distinguishing the services and offerings available through our Risk Exchange from similar insurance services and offerings. Convincing current and future Members and risk capital partners of the value of using our Risk Exchange will be critical to increasing the number of Members, and therefore the premiums written through the Risk Exchange and, correspondingly, the continued success and expansion of our business.

Given the lack of operating history of the Risk Exchange and the evolving nature of the markets in which our business operates, our business is subject to risks and challenges including our ability to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase awareness of the capabilities of our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manage the increased volume of business on our Risk Exchange and its future growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain and evaluate the robustness of our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase the revenues generated from use of the platform's services by Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain and enhance its relationships with our business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compete with competitors who may develop alternatives for managing and marketing to risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve the Risk Exchange's operational efficiency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract, retain, and motivate talented employees to support the growth of the Risk Exchange.

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***We have generated net losses in the past and may incur losses in the future.***

Although we generated net income of $7.8 million and $22.9 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, we have incurred net losses in the past and may do so in the future. We incurred a net loss of $64.1 million for the year ended December 31, 2023, and we had an accumulated deficit of $176.3 million as of March 31, 2025. These results do not reflect the impact of non-cash expense related to our profits interest awards, of which $ million will be incurred in connection with the consummation of this offering and the AHLP Distribution. We expect to make significant investments to further develop and expand our business. In particular, we expect in the foreseeable future to continue to expend substantial financial and other resources on the development of our technology and data analytics capabilities, growing the reach and capabilities of our existing Members, adding new Members to our Risk Exchange, expanding our product portfolio and expanding into new geographies. As a public company, we will also incur significant legal, accounting and other expenses that we did not incur as a private company. Accordingly, we may not achieve or maintain profitability and we may incur significant losses in the future. Additionally, if we do not achieve or maintain profitability, we may need to raise additional capital to support new business and the aforementioned initiatives, and this may reduce our ability to grow as quickly, or to grow at all.

***The addition of any products to our portfolio that may result in a higher loss ratio may be less attractive for our Members and risk capital partners, and may materially adversely affect our business, results of operations, financial condition and prospects***.

While we have had success in the current offerings of our Risk Exchange, we may in the future prudently grow beyond the specialty insurance market, and any new products we offer may result in a higher loss ratio than our current specialty insurance market offerings. These new products may result in a higher loss ratio, which may be less attractive for our Members and risk capital partners, and may materially adversely affect our business, results of operations, financial condition and prospects.

***A decline in our financial strength rating may adversely affect the volume of business we can write.***

Participants in the insurance industry use ratings from independent ratings agencies, such as A.M. Best, as an important means of assessing the financial strength and quality of insurers. In setting its ratings, A.M. Best performs quantitative and qualitative analysis of a company's balance sheet strength, operating performance and business profile. A.M. Best's rating process also includes comparisons of an insurer to its peers and industry standards as well as assessments of operating plans, philosophy, and management. A.M. Best financial strength ratings range from "A++" (Superior) to "F" (the latter assigned to insurance companies that have been publicly placed in liquidation). As of the date of this filing, A.M. Best has assigned Accelerant a group financial strength rating of "A-" (Excellent) with a stable outlook as an insurance holding company system. A.M. Best expects us to maintain the strongest level of risk-adjusted capitalization over the longer term, as measured by Best's Capital Adequacy Ratio ("BCAR"), with capital supporting business growth. A.M. Best assigns ratings that are intended to provide an independent opinion of an insurance company's ability to meet its obligations to policyholders and are not evaluations directed to investors and are not recommendations to buy, sell, or hold our Class A common shares or any other securities we may issue. A.M. Best periodically reviews our financial strength rating and may revise our rating downward at their discretion based primarily on its analyses of our balance sheet strength, operating performance, and business profile. There are specific building blocks A.M. Best reviews, including capital adequacy, operating performance, operating profile and enterprise risk management, as well as other factors that could affect their analyses such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we change our business practices from our organizational business plan in a manner that no longer supports
A.M. Best's rating;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if unfavorable financial, regulatory or market trends affect us, including excess market capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we have adverse loss development that is materially in excess of our recorded loss reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we have unresolved issues with government regulators;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to retain our senior management or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our investment portfolio incurs significant losses or our liquidity is limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if A.M. Best alters its methodology for evaluating reinsurance recoverables; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if A.M. Best alters its capital adequacy assessment methodology in a manner that would adversely affect our
rating.

These and other factors could result in a downgrade of our financial strength rating. A downgrade or withdrawal of our rating could result in any of the following consequences, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• causing our current and future distribution partners, Members, and insureds to choose other, more highly rated
competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing the cost or reducing the availability of reinsurance to us; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• severely limiting or preventing us from writing new and renewal insurance contracts.

In addition, in view of the earnings and capital pressures experienced by many financial institutions, including insurance companies, it is possible that rating organizations will heighten the level of scrutiny that they apply to such institutions, increase the frequency and scope of their credit reviews, request additional information from the companies that they rate or increase the capital and other requirements employed in the rating organizations' models for maintenance of certain ratings levels. We can offer no assurance that our rating will remain at its current level and future reviews may result in adverse ratings consequences, which could have a material adverse effect on our financial condition and results of operations.

***Certain Members may choose to leave our Risk Exchange after their contractual commitments have expired, which would adversely affect our results of operations and our ability to offer attractive risk opportunities to our risk capital partners.***

Members enter into exclusivity agreements on a five-year rolling basis to remain on our Risk Exchange, which we typically renew annually. Members may choose to leave our Risk Exchange after the exclusivity period has ended, although only one Member has elected to leave to date, based on mutual agreement that the higher policy limits they wanted to offer were not in line with our terms. While we have found that the terms of the exclusivity period are currently favorable to facilitate faster, more profitable growth, market or other forces, including the deterioration of the pricing and economic terms that are offered to our Members, may cause Members to choose not to renew their contracts, or cause us to reduce the duration of time for which we may contractually bind our Members. Our success is largely dependent on our relationships with Members and risk capital partners and on our reputation for providing high-quality services to both. Many of our Members and risk capital partners are businesses that interact in industry groups or trade associations and actively share information among themselves about the quality of service they receive from their vendors, including at the Member events we host and on our Risk Exchange. Therefore, if any Member or risk capital partner is not satisfied with our services or products, it may negatively affect our relationships with multiple other Members or potential Members, which in turn may adversely affect our results of operations.

***If we are unable to continue enhancing our technology-based solutions at a pace that allows us to remain attractive to our Members, or continue to gain internal efficiencies and effective internal controls that promote the utility of the analytics we provide to Members, our operating results, relationships with our Members and growth could be adversely affected.***

Our future success depends, in significant part, on our ability to anticipate and effectively respond to the threats and opportunities presented by digital disruption, "big data," data analytics, AI and other developments in technology, particularly in the insurance industry. These may include new applications or insurance-related services based on AI, machine learning, robotics, blockchain or new approaches to data mining. We may be exposed to competitive risks related to the adoption and application of new technologies by established market participants, or new entrants such as technology and "insurtech" companies, data-mining companies and others.

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For example, we have invested significantly into our Risk Exchange. Other companies may be developing platforms that may compete with our Risk Exchange, and their success in this space may adversely impact our ability to differentiate our services to our Members. Innovations in software, cloud computing, or other technologies that alter how our services are delivered could significantly undermine our investment in this business if we are slow to innovate or unable to take advantage of these developments.

We must also develop, enhance, and implement technology solutions and technical expertise among our employees that anticipate and keep pace with rapid and continuing changes in technology, industry standards, Member preferences, and internal control standards. We may not be successful in anticipating or responding to these developments on a timely and cost-effective, basis and our ideas and innovations may not be accepted in the marketplace. Additionally, the effort to gain technological expertise and develop new technologies in our business requires us to incur significant expenses. Investments in technology systems may not deliver the benefits or perform as expected once completed, or may become obsolete more quickly than expected, which could result in operational difficulties or additional costs. If we cannot offer new technologies as quickly as our competitors, or if our competitors develop more effective or cost-efficient technologies or other product offerings, we could experience a material adverse effect on our operating results, Member relationships and growth.

In some cases, we depend on key third-party vendors and partners to provide technology and other support for our strategic initiatives. If these third parties fail to perform their obligations or cease to work with us, or fail to protect our data, confidential and propriety information, our ability to execute on our strategic initiatives could be adversely affected. See *"*Risk Factors*—*Risks Related to our Technology and Intellectual Property*—*Loss of key vendor relationships or failure of a vendor to protect our data, confidential and proprietary information could affect our operations."

***If our Members do not provide the data they are contractually obligated to provide or the data provided by our Members is inaccurate or incomplete, our Risk Exchange and participating risk capital partners may be unable to accurately price the risk transferred through our Risk Exchange.***

Our Risk Exchange runs on data provided by our Members, which comes from disparate and complex data environments. Though we have developed technology to ingest and synthesize this data into a single, digestible data set, if the data our Risk Exchange captures is faulty or incomplete, the integrity of our Risk Exchange and its ability to analyze the data may be adversely affected. Additionally, although contractually obligated to do so, our Members may, in certain instances, be unable or unwilling to provide some or all of the data they are obligated to provide. Furthermore, as we gain new Members, there is no assurance that new Members will be able to provide data as accurately or promptly as those Members we have attracted to date. If the data we receive from our Members and risk capital partners is inaccurate, incomplete or not timely, our current Members may choose to leave our Risk Exchange, our risk capital partners may misprice risk leading to their dissatisfaction or departure, and our reputation may be harmed, which could materially and adversely affect our business, results of operations, financial condition, and prospects.

***If our Members do not maintain consistency in the level of skill and expertise they demonstrate, or adhere to the underwriting guidelines of our Risk Exchange, our Members may experience higher loss ratios and our reputation and relationships with insurance carriers, reinsurers, other Members, other risk capital partners, and brokers could be harmed.***

Our ability to attract risk capital partners to our Risk Exchange is substantially dependent on our Members' ability to effectively evaluate risks within the guidelines of our Risk Exchange. Our business depends, in part, on the accuracy and success of our Members' underwriting models and their skill in implementing them. We evaluate prospective Members through a rigorous due diligence process before onboarding them to our Risk Exchange. However, if our Members do not perform with the expected level of skill, if any of the models or tools that they use contain programming or other errors or are ineffective, or if the data that we expect to be provided by Members or third parties is incorrect or stale, our pricing and approval process could be negatively affected,

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resulting in higher loss ratios and other adverse outcomes for those Members. This could damage our reputation and relationships with risk capital partners, other Members, and potential future counterparties, which could harm our business, results of operations, financial condition, and prospects.

In addition, if any of our Members fail to comply with the underwriting guidelines of our Risk Exchange and the terms of their appointments, we and our risk capital partners could be bound to a particular risk or number of risks that we did not anticipate when the insurance products were developed, and may be subject to litigation or other claims arising from any failures in compliance. Such actions or failure to act by our Members and resulting losses could adversely affect our business, results of operations, financial condition, and prospects.

***Our current market share may decrease as a result of disintermediation within the insurance industry, including increased competition from insurance companies, technology companies, and participants in the financial services industry, as well as the shift away from traditional insurance markets.***

The insurance intermediary business is highly competitive, and we actively compete with numerous firms for new Members and risk capital partners, many of which have relationships with other insurance companies or have a significant presence in specialty insurance markets that may give them an advantage over us. Other competitive concerns include the quality of our products and services, our pricing, our ability to expand our offerings and the entrance of technology companies into the insurance intermediary business. In addition, the financial services industry may experience further consolidation, and we therefore may encounter increased competition from insurance companies and firms in the financial services industry, as a growing number of larger financial institutions offer a wider variety of financial services, including insurance intermediary services.

Furthermore, there has been an increase in alternative insurance markets, such as self-insurance, captives, risk retention groups, parametric insurance, and non-insurance capital markets. While we compete in these segments on a fee-for-service basis, we cannot be certain that such alternative markets will provide the same level of insurance coverage or profitability as traditional insurance markets.

***Our MGA incubator, Mission Underwriters, depends on our ability to identify and partner with specialty underwriting talent, and if we do not identify the correct partners to participate in the Mission platform, or if our competitors attract this underwriting talent instead, it could affect the returns on our equity ownership interests in these Mission entities and accordingly our business, results of operations, financial condition, prospects and reputation.***

Mission Underwriters is our MGA incubator that seeks out talented teams of Mission Members and supports them with the tools and resources needed to form their own MGAs that are then jointly owned by us and the underwriters. Mission Underwriters depends on our ability to identify and partner with specialty underwriting talent. By doing so, we are able to directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance carriers to start their own independent underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team's knowledge of the specialty insurance markets in which we operate. Such knowledge includes an awareness of high-quality underwriters in these markets. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. Our ongoing recruitment efforts will continue to be important as we grow; we do not currently expect any of the associated recruitment costs to increase materially in the future, although there may be unanticipated factors or circumstances beyond our control that result in increased costs in this area. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. In addition, although we carefully vet potential Mission Members through a rigorous due diligence process before they are onboarded, we may fail to properly identify those who will be able to and successfully operate as Mission Members. Choosing ineffective Mission Members may cause our risk capital partners to reduce, or altogether cease, usage of our Risk Exchange and negatively impact the returns on our equity investments in our Mission Members.

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Additionally, our competitors that operate with different business models may have more robust financial, technical, and marketing resources than we do, which may allow them to attract potential Mission Members to their businesses. If we do not identify potential Mission Members, or our competitors are able to attract them instead, it could affect our business, results of operations, financial condition, prospects, and reputation.

***Our ability to add new Members to our Risk Exchange may slow over time, which would limit our growth and materially adversely affect our business, results of operations, financial condition, and prospects.***

A substantial amount of our growth has been due to successfully adding new Members to our Risk Exchange. We carefully vet existing MGAs through a rigorous diligence process when selecting new Members. As we continue to add new Members, it may become harder to find high-quality MGAs that meet the requirements of our diligence process. It may also be harder to convey the appeal of our Risk Exchange to potential new Members. Any failure on our part to recognize or respond to these challenges may adversely affect our ability to add new Members to our Risk Exchange and may materially adversely affect our business, results of operations, financial condition, and prospects.

On average, it takes 14 weeks to onboard a Member to our Risk Exchange. However, there have been, and in the future, may be, instances in which a Member has not been able to successfully integrate into our Risk Exchange. We believe there is demand in other specialty insurance markets that would support the continued expansion of our Risk Exchange, but to the extent these markets are not driven primarily by MGA business, it may be more difficult to add new Members to our Risk Exchange. Additionally, to the extent we encounter difficulties in the Member onboarding process, Members may not be able to perform at the level we expect, and this may impair our relationships with these Members and with our risk capital partners. If the ability for new Members to quickly join our Risk Exchange is impaired, they may no longer want to join, which may materially adversely affect our business, results of operations, financial condition and prospects.

***Our holding of Member and risk capital partner funds exposes us to complex fiduciary regulations and the potential for losses.***

Premium generated from Members is centrally managed by our agencies. Consequently, at any given time, we may hold certain funds of our Members and risk capital partners, which subjects us to various regulatory regimes governing the holding and management of these funds, including under the purview of the Financial Services Authority and the Federal Deposit Insurance Corporation ("FDIC"). These entities face the risk of loss if banks do not honor our escrow and trust deposits. The banks may hold a significant amount of these deposits in excess of the federal deposit insurance limit. If any of our depository banks were to become unable to honor any portion of our deposits, our Members and risk capital partners could seek to hold us responsible for such amounts and, if the Members or risk capital partners prevailed in their claims, we could be subject to significant losses.

***If new regulations are enacted that affect the ability of our Members to operate, it could materially adversely affect our business, results of operations, financial condition and prospects*.** 

Our operations, and our Members in particular, are subject to extensive laws and regulations in the jurisdictions in which we all operate, including in relation to changing capital requirements. Legislators, regulators, and self-regulatory organizations have in the past, and may in the future, consider various proposals that may affect the ability of our Members to underwrite claims, and new laws and regulations may affect or significantly limit their ability to do so. It is uncertain whether and how these and other such proposals or changes in legislation or regulation would apply to our Members, but to the extent they affect the ability of our Members to operate, this could materially adversely affect our business, results of operations, financial condition and prospects.

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*Risks Related to Our Risk Capital Partners* 

***We have expanded rapidly in recent years, and we may not be able to continue to attract risk capital partners at the same rate or of the same quality to facilitate similar growth in the future or continue maintaining a capital-efficient model.***

Since 2020, we have grown the number of risk capital partners operating on our Risk Exchange from 28 to 96 as of March 31, 2025. Our risk capital partners generally each hold an "A-" or better A.M. Best rating or are acting on a fully collateralized basis. There is no assurance that we will continue to add risk capital partners to our Risk Exchange at the same rate we have historically, or that prospective risk capital partners will be of the same level of quality as those we have attracted to date. Lower quality risk capital partners may subject us to additional counterparty risk, such as through engaging in sub-standard, non-market or even fraudulent practices or through increased likelihood of default. This may translate to reduced underwriting capacity or quality and reliability of the capital available to our Members, which would result in a material adverse effect on our business, results of operations, financial condition and prospects.

Our business model contemplates adding additional risk capital partners to the Risk Exchange to reinsure the growing volume of premiums in the Risk Exchange portfolio, while also increasing the proportion of premiums written directly and retained by primary insurance companies on the Risk Exchange. If we are unable to grow the volume of premiums written directly and retained by primary insurance companies on our Risk Exchange and the proportion of premiums written by Accelerant-owned insurance companies does not decrease, we will need to rely more heavily on the risk capital partners currently on our Risk Exchange and potentially hold more regulatory capital at Accelerant Underwriting. Additionally, if we were to lose one of our existing risk capital partners, an increase in Accelerant GWP could lead to a concentration of counterparties that could materially adversely affect our business, results of operations, financial condition and prospects.

***We may not be able to continue to attract institutional investors to Flywheel Re, or those investors may insist in the future on terms that are less economically attractive to us.***

Flywheel Re is an unconsolidated reinsurance sidecar entity that we formed in 2022. Upsized capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period, which covers the underwriting years from April 2025 to March 2028. While Accelerant holds no equity interest in Flywheel Re and does not exercise control over Flywheel Re, approximately 26% of our risk capital was sourced from Flywheel Re as of March 31, 2025, creating more predictability and stability in capacity availability, enabling institutional investors to access risk through our Risk Exchange. If we are unable to continue developing unique risk transfer solutions like Flywheel Re, our ability to retain existing and attract new institutional investors and reinsure risks to them could be adversely affected. To the extent we are unable to attract new risk capital partners in the form of institutional investors, we may not be able to find new capital commitments to provide necessary risk capital. In the future, we may be unable to continue to attract additional institutional investors to contribute capital to Flywheel Re or institutional investors who contribute capital to Flywheel Re may insist on terms that are less economically attractive to us. Our business may be harmed if additional institutional investors are not attracted to Flywheel Re or if there is a dependence upon a limited number of institutional investors.

***Certain risk capital partners may look to directly interact with our Members outside of the arrangements dictated by our Risk Exchange or pursue other disintermediation strategies, including leaving our Risk Exchange entirely, which could materially adversely affect our business, results of operations, financial condition and prospects.***

Historically, all of the insurance risk underwritten by Members was written by Accelerant-owned insurance companies licensed to insure business written by each Member, and was concurrently ceded through quota share arrangements to risk capital partners. Since 2023, we have expanded our third-party participation (including direct third-party participation) in our Risk Exchange to 19% of Exchange Written Premium for the three months ended

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March 31, 2025, which has increased interaction between our Members and risk capital partners. Our agreements with Members prohibit them from entering into similar contracts without our prior consent, require Members to cede all insurance business of a type that is permitted to be written, and requires our Members to allow us to quote competitive terms for any new proposed binding authority before inviting any other insurer to do so. However, if certain risk capital partners choose to interact directly with our Members outside our Risk Exchange or pursue other disintermediation strategies, it could materially adversely affect our business, results of operations, financial condition, and prospects.

***Our business, and therefore our financial condition and results of operations, may be adversely affected by a reduction in insurer and reinsurer capacity.***

Our results of operations depend on the continued capacity of insurance and reinsurance carriers to adequately and appropriately underwrite risk and provide coverage, which may depend, in turn, on those insurance and/or reinsurance companies' ability to procure reinsurance. Capacity could also be reduced by insurance or reinsurance companies failing or withdrawing from writing certain coverages that are ultimately offered to policyholders. We have no control over these matters. To the extent that reinsurance becomes less widely available or significantly more expensive, we may not be able to procure the amount or types of reinsurance that we require and the coverage our Members underwrite for policyholders may be too expensive or more limited than is acceptable.

***The failure of risk capital partners to pay claims in an accurate and timely fashion could materially and adversely affect our business, results of operations, financial condition and prospects.***

Risk capital partners on our Risk Exchange must evaluate and pay claims that are made under bound policies in an accurate and timely fashion. Many factors affect their ability to pay claims in an accurate and timely fashion, including the training and experience of claims representatives, the effectiveness of their management, and their ability to develop or select and implement appropriate procedures and systems to support claims administration and other functions. Failure to pay claims in an accurate and timely fashion could lead to regulatory and administrative actions or material litigation, which could harm our Members and also undermine our reputation in the marketplace, and accordingly, materially and adversely affect our business, results of operations, financial condition, and prospects.

***We may lose risk capital partners as a result of consolidation within the insurance and reinsurance industries.***

We have historically relied on reinsurance arrangements for a significant amount of our risk capital. There has been considerable consolidation in the reinsurance industry in recent years, driven primarily by smaller reinsurers lacking the scale and diversification to succeed in the current market. We expect this trend to continue. As a result, we may lose some of our current counterparties that are ultimately acquired by other firms who have their own operations or established relationships with other platforms. To date, our business has not been materially affected by consolidation among insurers or reinsurers, however, we cannot assure you that we will not be affected by industry consolidation that may occur in the future. Such consolidation could materially adversely affect our business, results of operations or financial condition.

***Changes in reinsurance regulation could limit the availability of risk capital in the future.***

The reinsurance business in which many of our risk capital partners are engaged is highly regulated. The extent of regulation varies across the jurisdictions in which we and our Members operate, but generally is governed by laws that delegate regulatory, supervisory and administrative authority to insurance departments and similar regulatory agencies. Legislators, regulators and self-regulatory organizations have in the past, and may in the future, consider various proposals that may affect the ability of our risk capital partners to participate on our Risk Exchange and of our reinsurers, such as Flywheel Re, to access premium written or reinsured by us on the Risk Exchange platform. Any negative changes in these laws or regulations could materially adversely affect our business, results of operations or financial condition.

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***U.S.-based activities of our Members or ceding companies on the Risk Exchange may be attributed to a non-U.S. risk capital partner for tax purposes in certain circumstances, and our ability to grow the Risk Exchange may be limited as a result.***

U.S.-based activities of our Members or ceding companies on the Risk Exchange could, in certain circumstances, be attributed to a non-U.S. risk capital partner and cause it to be subject to U.S. federal income tax. This would not be the case, however, with respect to U.S.-based activities of a Member or ceding company that is considered an independent agent of a non-U.S. risk capital partner eligible for benefits under a U.S. income tax treaty. Therefore, prospective non-U.S., non-treaty eligible risk capital partners may be unwilling to participate in the Risk Exchange, may require U.S. ceding companies to retain some portion of the risk that is reinsured, or may otherwise seek assurances the activities of such ceding companies will not be attributed to them for these purposes. The foregoing tax considerations may limit the pool of prospective risk capital partners and our ability to grow the Risk Exchange may be limited as a result. In addition, risk retention by ceding companies on the Risk Exchange may be in tension with our capital-efficient business model.

*Risks Related to Underwriting Activities* 

***Our financial condition and results of operations could be materially adversely affected if we do not accurately assess the underwriting risk we retain.***

Our underwriting performance in respect of the policies underwritten by our Members and retained by our own insurance and reinsurance companies, either directly or assumed from Risk Exchange Insurers, is dependent on our ability to accurately assess the risks associated with these policies. We rely on the experience of our Members' underwriting personnel in assessing those risks. In addition, our Members' employees make decisions and choices in the ordinary course of our underwriting activities that potentially expose us to underwriting risk. If our Members misunderstand the nature or extent of the risks that they underwrite, they may fail to establish appropriate premium rates or other pricing elements, which could adversely affect our business, results of operations and financial condition.

***We may be unable to purchase third-party reinsurance in amounts we desire on commercially acceptable terms or on terms that adequately protect us, and may not have sufficient third-party reinsurance coverage provided by risk capital partners accessing our Risk Exchange, in each case, and this potential inability may cause us to retain more risk than we expect or have forecasted, which may materially and adversely affect our business, results of operations and financial condition.***

We strategically secure reinsurance from third parties, which enhances our business by protecting our capital from severity events (either large single-event losses or catastrophes). Reinsurance involves transferring, or ceding, a portion of our risk exposure on policies that we write to another reinsurer, in exchange for a premium paid to the reinsurer. We reinsured 91.6% and 91.2% of Accelerant GWP for the trailing twelve months ended March 31, 2025 and the year ended December 31, 2024, respectively. Under our reinsurance arrangements, we hold $77.6 million in trust to support reinsurance recoverables as of March 31, 2025. The collateral is all in fixed income securities allowed under Section 114 trusts under the NAIC model laws. Relatedly, we have entered into reinsurance agreements with our Risk Exchange Insurers consisting of either stop-loss or quota share reinsurance. When we reinsure this business, we place the majority of it with third-party reinsurers or institutional investors. If we are unable to renew our expiring contracts, enter into new reinsurance arrangements on acceptable terms, or expand our existing reinsurance coverage where necessary, our loss exposure could increase, which would increase our potential losses related to loss events. If we are unwilling to bear an increase in loss exposure, we may need to reduce the level of our underwriting commitments, both of which could materially and adversely affect our business, results of operations and financial condition.

There may be situations in which reinsurers exclude certain coverages from, or alter terms in, the reinsurance contracts we enter with them. As a result, we, like other insurance companies, could write insurance policies which, to some extent, do not have the benefit of reinsurance protection. These gaps in reinsurance protection could expose us to greater risk and greater potential losses.

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***Unexpected changes in the interpretation of the coverage or provisions of the policies we underwrite, including loss limitations and exclusions, could have a material adverse effect on our business, results of operations and financial condition.***

There can be no assurances that loss limitations or exclusions in our policies will be enforceable in the manner we intend. As industry practices and legal, judicial, social, and other conditions change, unexpected and unintended issues related to claims and coverage may emerge. For example, many of our policies limit the period during which a policyholder may bring a claim, which may be shorter than the statutory period under which such claims can be brought against our policyholders, and other policies now contain a COVID-19 specific exclusion. While these limitations and exclusions help us assess and mitigate our loss exposure, it is possible that a court or regulatory authority could nullify or void a limitation or exclusion, or legislation could be enacted that modifies or bars the use of such limitations or exclusions. These types of governmental actions could result in higher than anticipated losses and loss adjustment expenses ("LAE"), which could have a material adverse effect on our financial condition or results of operations, or the results of operations of our risk capital partners. In addition, court decisions may read policy exclusions narrowly to expand coverage, thereby requiring insurers to create and write new exclusions.

These issues may adversely affect our business by either broadening coverage beyond our Members' underwriting intent or by increasing the frequency or severity of claims. In some instances, these changes may not become apparent until after Accelerant-owned insurance companies or our risk capital partners have issued insurance contracts that are affected by the changes. As a result, the full extent of liability under these insurance contracts may not be known for many years after a contract is issued.

***The movement in our individual Member commission structures could materially affect the commissions retained on written premiums.***

Our individual Member commission structures typically allow our Members to receive a higher commission if the quality of their business underwritten through our Risk Exchange is high and a lower commission if the quality is low. Additionally, our typical reinsurance contracts may have us owing commission back to our reinsurers if the actual loss ratio of the covered contracts is higher than our expected loss ratio or vice versa. The movements on these two variables could have a material adverse effect on our business, results of operations, and financial condition. There is a scenario in which we could owe more commission to Members and receive less from reinsurers.

***The failure of any of the loss limitation methods we employ could have a material adverse effect on our financial condition and results of operations.***

As part of our overall risk strategy, we purchase excess of loss protection from third-party reinsurers to mitigate the impact of a significant loss event(s) beyond those that we reasonably anticipate at the time of underwriting. Market conditions beyond our control, including the price and availability of capacity, may affect the amount of excess of loss protection we are able to purchase. While we maintain coverage with an excess of loss program, if the frequency and severity of global catastrophes and significant loss events increases, such coverage may be insufficient to cover our losses. If we are not able to effectively mitigate our loss limitation exposure, in the event of such losses, our business, results of operations and financial condition could be materially affected.

***Our losses and loss expense reserves may be inadequate to cover our actual losses, which could have a material adverse effect on our business, results of operations and financial condition.***

Our success depends on our ability to accurately assess the risks related to the businesses and people that our insurance carrier subsidiaries insure. We establish losses and LAE reserves for the best estimate of the ultimate payment of all claims that have been incurred, or could be incurred in the future, and the related costs of adjusting those claims, as of the date of our financial statements. As of March 31, 2025, our reserve for unpaid losses and

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LAE was $1.51 billion. Loss reserves are inherently uncertain as they represent management's estimates of losses that will not become known until claims settlements in the future, and therefore do not represent an exact calculation of liability. Rather, reserves represent an estimate of what we expect the ultimate settlement and administration of claims will cost us, and our ultimate liability may be greater or less than our estimate.

As part of the reserving process, we review historical data and consider the impact of such factors as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims inflation, which is the sustained increase in cost of materials, labor, medical services and other
components of claims cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims development patterns by line of business, as well as frequency and severity trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pricing for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legislative and regulatory activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• social and economic patterns; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation, judicial and regulatory trends.

These variables are affected by both internal and external events that could increase our exposure to losses, and we continually monitor our loss reserves using new information on reported claims and a variety of statistical techniques and modeling simulations. This process assumes that past experience (adjusted for the effects of current developments, anticipated trends, and current and anticipated market conditions) is an appropriate basis for predicting future events. There is, however, no precise method for evaluating the impact of any specific factor on the adequacy of loss reserves, and actual results may deviate, perhaps substantially, from our reserve estimates. For instance, the following uncertainties may have an impact on the adequacy of our reserves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When a claim is received, it may take considerable time to fully assess the extent of the covered loss
suffered by the insured. Consequently, estimates of loss associated with specified claims can increase as new information emerges over time, which could cause the reserves for the claim to become inadequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From time to time, courts enforce new theories of liability retroactively. The failure of any of the loss
limitations or exclusions we employ, or changes in other claims or coverage issues, could have a material adverse effect on our business, results of operations, financial condition and prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the financial markets, economic events and other external factors may result in an increase in
the number of claims and/or severity of the claims reported.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If claims were to become more frequent, even if we had no liability for those claims, the cost of evaluating
such claims could escalate beyond the amount of the loss adjustment expense reserves we have established. As we enter new lines of business, or as a result of new theories of claims, we may encounter an increase in claims frequency and greater
claims handling costs than we had anticipated.

Inflation has an adverse impact on the cost of insured losses and expected future insured losses. Though we attempt to increase premium rates to reflect the impact of inflation on expected losses, we may not be able to do so and there can be no assurances that any such premium rate increases will be adequate to offset the impact of inflation on our financial performance.

If any of our reserves should prove to be inadequate, we will be required to increase our reserves resulting in a reduction in our net income and shareholders' equity in the period in which the deficiency is identified. Elevated inflationary conditions could, among other things, cause loss costs and thus reserves to increase in magnitude. Future loss experience substantially in excess of established reserves could also have a material adverse effect on our future earnings, liquidity, and/or our financial ratings.

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***Our reinsurers may not reimburse us for claims on a timely basis, or at all, which may materially and adversely affect our business, results of operations and financial condition.***

The reinsurance contracts that we enter into to help manage our risks require us to pay premiums to the reinsurance carriers who will in turn reimburse us for a portion of covered policy claims. In many cases, a reinsurer will be called upon to reimburse us for policy claims many years after we have paid reinsurance premiums to the reinsurer. Although reinsurance makes the reinsurer liable to us to the extent the risk is transferred or ceded to the reinsurer, it does not relieve us (the ceding insurer) of our primary liability to our policyholders. Our current reinsurance program is designed to limit our financial risk. However, our reinsurers may not pay claims we incur on a timely basis, or they may not pay some or any of these claims. For example, reinsurers may default in their financial obligations to us in the event of insolvency, insufficient liquidity, operational failure, political and/or regulatory prohibitions, fraud, asserted defenses based on agreement wordings or the principle of utmost good faith, asserted deficiencies in the documentation of agreements or other reasons. Any disputes with reinsurers regarding coverage under reinsurance contracts could be time-consuming, costly, and uncertain of success. These risks could cause us to incur increased net losses, and, therefore, adversely affect our business, results of operations, and financial condition. As of March 31, 2025, we had $1.64 billion of aggregate reinsurance recoverables.

In mid-July 2023, we became aware that one of our reinsurance partners may have been the victim of a fraudulent scheme related to falsified letters of credit (which were used as collateral in our reinsurance agreements with such reinsurance partner). Thereafter, we confirmed that the letters of credit provided on behalf of such reinsurance partner were fraudulent. As a result, we determined that approximately $23 million of reinsurance recoverables were not effectively collateralized. We immediately demanded that the affected reinsurance partner provide valid replacement collateral to support the impacted reinsurance coverage. During this time, we engaged with regulators of our impacted U.S. insurance companies, notably the Department of Insurance of Arkansas for ASIC, and then subsequently filed the relevant quarterly statutory financial statements and did not admit the reinsurance recoverables subject to the falsified letters of credit. Accordingly, the surplus of ASIC dropped below the minimum surplus requirements for certain states. On August 15, 2023, ASIC filed its third quarter financial statements, which reflected the reduction of ASIC's statutory capital. ASIC members and brokers were notified of the fact that ASIC statutory capital had fallen below the $45 million statutory requirement mandated by the state of California. Surplus lines brokers were not able to place insurance coverage with ASIC as we worked to replace the reinsurer and the collateral, which we accomplished by September 30, 2023. While we do not believe these circumstances had a material adverse impact on our business, to the extent any of our reinsurance partners are subject to similar circumstances in the future, we may suffer a material adverse effect on our business, financial condition, results of operations and prospects.

While as of March 31, 2025 we believe we no longer carry any exposure to the fraudulent instruments, there can be no assurance that we would not experience a similar result in the future. We have evaluated our internal due diligence processes related to verification of the validity of all reinsurance letters of credit and made improvements to enable us to identify and prevent the use of such fraudulent instruments in our reinsurance transactions more effectively. However, if our due diligence process improvements are not adequate to identify and prevent possible future fraudulent schemes of this nature, we could become a victim of such fraud, thereby increasing our financial risk and negatively impacting our profitability or regulatory compliance. In addition, future incidents of this nature could have a negative impact on the reinsurance industry as a whole and possibly constrain the availability of reinsurance coverage.

***Severe weather conditions, including the effects of climate change and catastrophes, as well as man-made events, such as terrorism, may adversely affect our business, results of operations and financial condition.***

The ability to effectively underwrite, model and price risk becomes more challenging as exposure to the risk of severe weather conditions, earthquakes and man-made catastrophes becomes more prominent in the insurance industry. Catastrophes can be caused by natural events such as severe winter weather, tornadoes, windstorms,

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earthquakes, hailstorms, severe thunderstorms and fires, or man-made events such as terrorist attacks, explosions, war and riots.

Climate change has contributed to an increase in the frequency and severity of natural disasters and the creation of uncertainty as to future trends and exposures. Over the past several years, changing weather patterns and climatic conditions, such as global warming, have added to the unpredictability and frequency of natural disasters in certain parts of the world, including the markets in which we operate. This effect has led to conditions in the ocean and atmosphere, including warmer-than-average sea-surface temperatures and low wind shear that increase hurricane activity. As such, climate change presents significant financial implications for our Members in areas such as underwriting, claims and investments, as well as risk capacity, financial reserving and operations. We are also subject to losses occurring as a result of man-made events, including acts of terrorism, military actions, cyberterrorism, explosions, and biological, chemical or radiological events.

The occurrence of any severe weather event or man-made catastrophic event could materially adversely affect our business, results of operations, and financial condition. Additionally, any increased frequency and severity of any such event could have a material adverse effect on our ability to predict, quantify, reinsure and manage catastrophe risk and may materially increase our losses resulting from such catastrophe events. The concentrations of exposure that produce the largest modeled losses to our portfolio are hurricane and other weather events along the Atlantic seaboard, wildfire prone areas in California or other states, U.S. severe convective storms, UK wind and flood, and European wind and flood, among others. For the 2024 treaty year, our U.S. property catastrophe excess of loss retention for a modeled gross occurrence is expected to be $35 million with a 1-in-100 year return period. Our EEA/UK property catastrophe excess of loss retention is expected to be $44 million for a modeled gross occurrence at a 1-in-250 year return period.

In addition, lawmakers and regulators have imposed and may continue to impose new requirements or issue new guidance aimed at addressing or mitigating climate change-related risks and efforts undertaken in response thereto. Additional actions by governments, regulators and international standard setters could result in substantial additional regulation to which we and our Members may be subject. It is also possible that the laws and regulations adopted in these jurisdictions regarding climate change-related risks will differ from one another, and that they could be inconsistent with the laws and regulations of other jurisdictions in which we operate.

In addition, severe weather and other effects of climate change result in more frequent and more severe damages, leading to lawsuits, more aggressive attorney involvement in insurance claims, expanded theories of liability, higher jury awards, lawsuit abuse and third-party litigation finance, all of which create the potential for a large rise in the total number of claims brought against us. More severe damages and a rise in the type and severity of claims could adversely affect our business, results of operations, financial condition and prospects.

*General Risks* 

***We have experienced rapid growth in recent years, and our recent growth rates may not be indicative of our future growth. As our costs increase, we may not be able to generate sufficient revenue to achieve, and if achieved, maintain, profitability.***

We have experienced significant revenue growth in recent years. Our total revenues grew 39% in the three months ended March 31, 2025 from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025, 75% in 2024 from $344 million in 2023 to $603 million in 2024 and 57% in 2023 from $219 million in 2022 to $344 million in 2023. As we continue to scale our business, our annual growth rate is likely to moderate. In future periods, we may not be able to sustain revenue growth consistent with recent history, or at all. We believe our revenue growth depends on a number of factors, including, but not limited to, our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price our products effectively so that we are able to attract and retain Members without compromising our
profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract new Members and Mission Members, successfully deploy and implement our products, obtain Member
renewals, and provide our Members with excellent support and tailored services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain talented Member managers, executives and other employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhance our information, training and communication systems to ensure that our employees are well coordinated
and can effectively communicate with Members and each other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve our internal control over financial reporting and disclosure controls and procedures to ensure timely
and accurate reporting of our operational and financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully create new distribution channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully introduce new products and enhance existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully introduce our products to new markets inside and outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully compete against larger companies and new market entrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase awareness of our brand.

We may not successfully accomplish any of these objectives and as a result, it is difficult for us to forecast our future results of operations. Our historical growth rate should not be considered indicative of our future performance and may decline in the future. In future periods, our revenue could grow more slowly than in recent years or decline for any number of reasons, including those outlined above. We also expect our operating expenses to increase in future periods, particularly as we continue to operate as a public company, continue to invest in research, development and technology infrastructure and expand our operations internationally. If our revenue growth does not increase to offset these anticipated increases in our operating expenses, our business, results of operations and financial position will be harmed, and we may not be able to achieve or maintain profitability. In addition, the additional expenses we will incur may not lead to sufficient additional revenue to maintain historical revenue growth rates and profitability.

As we expand our business, it is important that we continue to maintain a high level of service to our Members and risk capital partners and maintain Member and risk capital partners satisfaction. If we are not able to continue to provide high levels of service to our Members and risk capital partners, our reputation, as well as our business, results of operations and financial condition could be adversely affected.

***We are subject to economic and reputational harm if companies with which we do business (including our Members and our risk capital partners) engage in negligent, grossly negligent, misleading or fraudulent behavior and damage to our reputation could have a material adverse effect on our business.***

In operating our Risk Exchange, we rely on our Members and risk capital partners to provide their contractually obligated services and accurate data. If one or more of these constituencies, whether negligently or intentionally, fails to provide the services it has offered, capital as agreed, mishandles or misappropriates funds, or otherwise fails to properly provide products and services as expected, we face potential liability for damages and reputational harm.

Our ability to attract and retain Members, risk capital partners, employees and investors is highly dependent upon the external perceptions of our level of service, trustworthiness, business practices, financial condition and other subjective qualities. Negative perceptions or publicity regarding these matters could erode trust and confidence and damage our reputation among existing and potential Members, capital providers and other constituencies, which, in turn, could make it difficult for us to maintain existing Members and attract new ones. Damage to our reputation due to a failure to proactively communicate to stakeholders on changes in strategy and business plans could further affect the confidence of our Members, risk capital partners, regulators, creditors, investors and other parties that are important to our business, having a material adverse effect on our business, ability to raise capital, financial condition, and results of operations.

***Our business may face significant competitive pressures in the future.***

MGA activity, binding authority, underwriting management and other intermediary and underwriting and claims administration specialties are highly competitive. We believe that our ability to compete is dependent on the quality of

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our people, service, product features, price, commission structure, financial strength and the ability to access certain specialty insurance markets. We compete with a large number of national, regional and local organizations in the insurance industry. New or increased competition from these organizations or other entities that emerge, or regulatory or other industry developments, could harm our business, results of operations, financial condition and prospects.

***We rely on third parties to perform key functions of our business operations enabling our provision of services to our Members and risk capital partners. These third parties may act in ways that could harm our business.***

We rely on third parties, including Pro Global and in some cases subcontractors, to provide services, data and information such as technology, information security, funds transfers, data processing, support functions and administration that are critical to the operations of our business. These third-party service providers include data providers, plan trustees, payroll service providers, benefits administrators, software and system vendors, health plan providers, and providers of human resources, among others. Some of these third parties help us collect, process, transmit and store large quantities of personal financial information and other confidential and sensitive data about our customers, which must be protected by our information technology systems. Pro Global provides basic operational support for pre-processing of bordereaux files as part of our core business processes. As we do not fully control the actions of these third parties, we are subject to the risk that their decisions, actions or inactions may adversely impact us, and replacing these service providers could create significant delay and expense. Additionally, information technology systems are potentially vulnerable to damage, breakdown or interruption from a variety of sources, including but not limited to: cyberattacks, ransomware, malware, security breaches, sophisticated social engineering, denial-of-service attacks, theft or misuse, unauthorized access or improper actions by insiders or employees, sophisticated nation-state and nation-state-supported actors, natural disasters, terrorism, war, telecommunication, and electrical failures or other compromise. A failure by third parties to comply with service-level agreements or regulatory or legal requirements in a high-quality and timely manner, particularly during periods of our peak demand for their services, could result in economic and reputational harm to us. In addition, we face risks as we transition from in-house functions to third-party support functions and providers that there may be disruptions in service or other unintended results that may adversely affect our business operations. These third parties face their own technology, operating, business and economic risks, and any significant failures by them, including the improper use or disclosure of our confidential Member, employee or company information, could cause harm to our business and reputation. An interruption in or the cessation of service by any service provider as a result of systems failures, cybersecurity incidents, capacity constraints, financial difficulties, or for any other reason could disrupt our operations, impact our ability to offer certain products and services, and result in contractual or regulatory penalties, liability claims from Members or employees, damage to our reputation, and harm to our business.

Additionally, while we select our Members and third-party vendors carefully, cyberattacks and security breaches at a Member or vendor could adversely affect our ability to deliver products and services to our Members and otherwise conduct our business put our systems at risk. The types of incidents affecting us, our Members or our third-party vendors could result in intellectual property or other confidential information being lost, stolen, or otherwise compromised, including Member, employee or company data and we may not be able to (timely) detect incidents in our information technology systems or assess the severity or impact of a breach in a timely manner. We may also have insufficient recourse against third parties and may be required to expend substantial resources to mitigate the impact of such an event, and to develop and implement protections to prevent future events of this nature from occurring. Any significant system or network disruption due to a breach in the security of our information technology systems could have a negative impact on our reputation, regulatory compliance status, operations, sales and operating results, or result in additional legal liability including regulatory sanctions. We believe we are not reliant on any third-party vendors from owned or affiliated entities.

***There is increased litigation relating to COVID-19 being brought against participants in the insurance industry, and it is possible COVID-19 business interruption claims may cause us to suffer material losses.***

As uncertainty around the COVID-19 pandemic has slowed, litigation related to COVID-19 has increased, and may continue to increase as additional claimants come forth. Business interruption insurance has been and

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remains a loss covered by the products issued by our Members where requested by the policyholders. While we began to include COVID-19 specific exclusions in the business interruption policies written by Accelerant Underwriting after the onset of the pandemic, there remains uncertainty in our potential exposure for certain business interruption insurance policies written prior to the COVID-19 pandemic. One of our Members extended coverage on business interruption policies for a carry-over period prior to adding a COVID-19 specific exclusion. Such policies were reinsured by one of our risk capital partners. Currently, language similar to the language included in this Member's policies is being considered by the UK courts. If the UK courts were to apply a broader or different interpretation to the language of the business interruption policies than we have previously applied, any liability we have under claims asserted with respect to this Member's policies could result in significant losses, thereby materially and adversely affecting our business, results of operations, financial condition and prospects. During the period commencing in December 2018 to March 2020, the Company issued 35,683 policies with attaching business interruption coverage, which were generally limited to £50 thousand ($63 thousand) per policy. Total coverage limits for the underlying policies were £1.78 billion ($2.22 billion) as of March 31, 2025. As of March 31, 2025, the Company received 3,436 notifications of claims, and paid or reserved approximately €21.6 million ($23.4 million) in respect of such claims. Our policy and coverage limits and notifications of claims reserve are generally presented in British pound sterling or Euros, and our consolidated financial statements are presented in United States dollars. We translate our policy and coverage limits and notifications of claims reserve into United States dollars based on the exchange rate as of March 31, 2025. This amount represents a combination of claims paid, legal fees and the Company's outstanding indemnity reserves for valid claims reported to date. Losses incurred would be subject to third-party (re)insurance, whereby our net exposure would be expected to be less than 10% of the total.

***Pandemics or other outbreaks of contagious diseases and the measures to mitigate their spread could materially adversely affect our business, results of operation and financial condition and those of our Members and risk capital partners.***

The global outbreak of the COVID-19 pandemic and measures to mitigate the spread of COVID-19 caused unprecedented disruptions to the global and U.S. economies and significantly impacted the global supply chain. Future pandemics and other outbreaks of contagious diseases could result in similar or worse impacts and significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. If significant portions of our workforce are unable to work effectively, including because of illness or quarantines or from the impacts of any potential future pandemics and other outbreaks of contagious diseases, our business could be materially adversely affected. It is possible that future pandemics and other outbreaks of contagious diseases could cause disruption in Members' businesses; cause delay or limit the ability of Members to perform, including in making timely payments. Future pandemics and other outbreaks of contagious diseases could impact capital markets, which may impact our, our Members' and/or our risk capital partners' financial position. Future pandemics and other outbreaks of contagious diseases may also have the effect of exacerbating several of the other risks we face as discussed in this disclosure.

***Our international operations expose us to various international risks, including exchange rate fluctuations, that could adversely affect our business.***

Our operations are conducted in numerous geographies including the United States, United Kingdom, Europe, Canada and Australia. Accordingly, we are subject to regulatory, legal, economic and market risks associated with operating in foreign countries, including the potential for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse effects of currency fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disparate tax regimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected wage inflation or job turnover and legal and compliance costs and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• extensive and conflicting regulations in the countries in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• penalties resulting from noncompliance with sanctions, bribery and anti-money laundering regulations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of investment requirements or other restrictions by foreign governments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• longer payment cycles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater difficulties in collecting accounts receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient demand for our services in foreign jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to execute effective and efficient cross-border sourcing of services on behalf of our Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions effecting the flow of services and currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reliance on or use of third parties to perform services on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the import and export of technologies and trade barriers.

Approximately 51% and 34% of our revenues for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, were generated outside of North America. We are exposed to currency risk from the potential changes between the exchange rates of the U.S. Dollar, Canadian Dollar, British Pound, Euro, Swedish Krona, Danish Krone and other European currencies. Exchange rate movements may change over time, and they could have an adverse impact on our financial results and cash flows reported in U.S. dollars. Our U.S. operations earn revenue and incur expenses primarily in U.S. dollars. Due to fluctuations in foreign exchange rates, we are subject to economic exposure as well as currency translation exposure on the net operating results of our operations. Because our non-U.S. based revenue is exposed to foreign exchange fluctuations, exchange rate movement can have an impact on our business, results of operations, financial condition and cash flow.

Our performance can be affected by global economic conditions as well as geopolitical tensions and other conditions with global reach. In recent years, concerns about the global economic outlook have adversely affected economic markets and business conditions in general. Geopolitical tensions, such as Russia's incursion into Ukraine, tension between the United States and China, enhanced conflict in the Middle East, economic sanctions, the volatility of oil prices, heightened concerns about cyber-attacks, inflation and hyper-inflation have resulted in market volatility and higher interest rates, increasing global tensions and growing uncertainty for global commerce and instability in the global capital markets. Sustained or worsening of these and other global economic conditions and increasing geopolitical tensions may negatively impact our business, results of operations, financial condition and prospects.

***Adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, and even the falsification of claims or a combination of these effects, which, in turn, could affect our growth and profitability.***

Factors such as business revenue, economic conditions, the volatility and strength of the capital markets, trade disputes, including the imposition of new or increased tariffs, and inflation can affect our business and the economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending and reduced corporate revenue, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. Negative economic factors may also affect our ability to receive the appropriate rate for the risk we insure with our policyholders and may adversely affect the number of policies we can write, and our opportunities to underwrite profitable business. In an economic downturn, our policyholders may have less need for insurance coverage, may cancel existing insurance policies, modify their coverage or not renew the policies they hold with us. Existing policyholders may exaggerate or even falsify claims to obtain higher claims payments. In addition, if certain segments of the economy, such as the construction or energy production and servicing segments (which would affect several of the industries we serve at one time) were to significantly decline, it could adversely affect our results. These outcomes may materially adversely affect our business, results of operations, financial condition, and prospects.

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***We maintain cash, cash equivalents and investments at financial institutions and are exposed to credit risk in the event of default by such financial institutions.***

We maintain cash, cash equivalents and investments, including funds held in a fiduciary capacity, with various global financial institutions. Following the U.S. regional banking volatility in March 2023, we transferred all deposits in excess of the FDIC limit from First Republic Bank to PNC Financial Services Group, Inc. We are exposed to credit risk in the event of default by financial institutions to the extent that cash balances with individual financial institutions are in excess of amounts that are insured. If such institutions were to fail, we could lose all or a portion of amounts held in excess of any such insurance limits. Any material loss that we may experience in the future as a result could additionally have an adverse effect on our ability to pay or could temporarily or permanently delay payments of our operational expenses and other payments, including in connection with any dividends we elect to pay, payments to our vendors and employees and cause other operational impacts.

***Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial results.***

Our results of operations depend, in part, on the performance of our investment portfolio, which includes investments in high-grade debt securities and investments in private equity funds focused on insurance technology ventures and in certain MGAs that form part of our distribution network. We seek to hold a diversified portfolio of high-quality investments that is managed by professional investment advisory management firms in accordance with the risk appetite of our Board of Directors (the "Board of Directors"), and with our investment guidelines, which is routinely reviewed by our Investment Committee. However, our investments are subject to general economic conditions and market risks as well as risks inherent to specific securities. Our primary market risk exposures are to changes in interest rates and pricing of equities and bonds.

In recent years, interest rates have been at or near historic lows, however, during the year ended December 31, 2023 and through June 2024, interest rates have risen or remained at elevated levels. In September, November and December 2024, the U.S. Federal Reserve cut interest rates. Should rates continue to decline, including in a reversal of monetary policy actions taken in recent years by the U.S. Federal Reserve to slow inflation, a low interest rate environment could place pressure on our net investment income, particularly as it relates to these securities and short-term investments, which, in turn, may adversely affect our operating results. Recent and future increases in interest rates could cause the values of our fixed maturity securities portfolios to decline, with the magnitude of the decline depending on the duration of securities included in our portfolio and the amount by which interest rates increase. Some fixed income securities have call or prepayment options, which create possible reinvestment risk in declining rate environments. Other fixed income securities, such as residential mortgage-backed, commercial mortgage-backed and other asset-backed securities in which we hold investments carry prepayment risk or, in a rising interest rate environment, may not prepay as quickly as expected.

All of our fixed maturity securities, including those held in separately managed accounts are subject to credit risk. Credit risk is the risk that certain investments may default or become impaired due to deterioration in the financial condition of one or more issuers of the securities we hold, or due to deterioration in the financial condition of an insurer that guarantees an issuer's payments on such investments. Downgrades in the credit ratings of fixed maturity securities (where rated) could also have a significant negative effect on the market valuation of such securities.

The above market and credit risks could reduce our net investment income and result in realized investment losses. Our investment portfolio is subject to increased valuation uncertainties when investment markets are illiquid, as is the case with our fixed maturity securities held to maturity and separately managed accounts. The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair value (i.e., the carrying amount) of the securities we hold in our portfolio do not reflect prices at which actual transactions would occur.

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Risks for all types of securities are managed through the delegation of Board Risk Appetite and the application of our investment guidelines, which establishes investment parameters that include but are not limited to, maximum percentages of investments in certain types of securities and minimum levels of credit quality, which are within applicable guidelines established by the NAIC and applicable insurance regulatory authorities. In addition, on a quarterly basis our Investment Committee reviews our Enterprise Based Asset Allocation models to assist in overall risk management.

Although we seek to preserve our capital, we cannot be certain that our investment objectives will be achieved, and results may vary substantially over time. In addition, although we seek to employ investment strategies that are not correlated with our insurance and reinsurance exposures, losses in our investment portfolio may occur at the same time as underwriting losses and, therefore, exacerbate the adverse effect of the losses on us.

***We could be forced to sell investments to meet our liquidity requirements.***

We invest the premiums we receive from our insureds until they are needed to pay policyholder claims. Consequently, we seek to manage the duration of our investment portfolio based on the duration of our losses and LAE reserves to provide sufficient liquidity and avoid having to liquidate investments to fund claims. Risks such as inadequate losses and LAE reserves or unfavorable trends in litigation could potentially result in the need to sell investments to fund these liabilities. We may not be able to sell our investments at favorable prices or at all. Sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities, which could create losses that impact capital or otherwise reduce the effective yield on our investment.

***Our inability to successfully recover from a disaster or other business continuity problem, should we suffer from such an event, could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability.***

Our operations are dependent upon our ability to protect our personnel and technology infrastructure against damage from business continuity events that could have a significant disruptive effect on our operations. Should we experience a local or regional disaster or other business continuity problem, such as a security incident or attack, a natural disaster, climate event, terrorist attack, civil unrest, pandemic, power loss, telecommunications failure, or other natural or man-made disaster, our continued success will depend, in part, on the availability of our personnel and the proper functioning of computer systems, telecommunications, and other related systems and operations. In events like these, while our operational size and our existing backup systems provide us with some degree of flexibility, we still can experience near-term operational challenges in particular areas of our operations. We could potentially lose access to key executives, personnel or Members data or experience material adverse interruptions to our operations or delivery of services to our Members in a disaster recovery scenario. A disaster on a significant scale or affecting certain of our key employees, or our inability to successfully recover should we experience a disaster or other business continuity problem, could materially interrupt our business operations and cause material financial loss, loss of human capital, regulatory actions, reputational harm, damaged relationships with our Members, or legal liability. We have certain disaster recovery procedures in place and insurance to protect against such contingencies. However, such procedures may not be effective and any insurance or recovery procedures may not continue to be available at reasonable prices and may not address all such losses.

***We depend on the ability of certain of our subsidiaries to transfer funds to us to meet our obligations, and the ability of our insurance company subsidiaries to pay dividends to us is restricted by law.***

We are a holding company that transacts the majority of our business through operating subsidiaries. Our ability to meet our operating and financing cash needs depends on the surplus and earnings of our subsidiaries, and upon the ability of our insurance subsidiaries to pay dividends to us. Payments of dividends by our insurance company subsidiaries depends on their ability to meet applicable regulatory standards and receive regulatory

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approvals, and are restricted by state and other insurance laws, including laws establishing minimum solvency and liquidity thresholds. In addition, our insurance subsidiaries could be subject to contractual restrictions in the future, including those imposed by indebtedness we may incur in the future. Our insurance subsidiaries may also face competitive pressures in the future to maintain insurance financial stability or strength ratings. These restrictions and other regulatory requirements would affect the ability of our insurance subsidiaries to make dividend payments and we may not receive dividends in the amounts necessary to meet our obligations.

***We will need to raise***  ***additional***  ***financing***  ***to fund our working capital needs and maintain regulatory compliance or consummate potential future acquisitions. Additional financing may not be available on***  ***acceptable***  ***terms, or at all. Failure to obtain additional capital may force us to limit or terminate our operations****.* 

Even if we sell all Class A common shares offered by us in this offering, the expected net proceeds of this offering may not be sufficient for us to fund the working capital and maintain the statutory capital requirements of our business. We may continue to seek funding through equity or debt financings, collaborative or other arrangements, or through other sources of financing. Additional funding may not be available to us on acceptable terms, or at all. Any failure to raise capital as and when needed would have a material adverse impact on our business, results of operations, financial condition and prospects and on our ability to pursue our business plans and strategies.

***If we cannot maintain the valuable aspects of our culture as we grow, our business may be harmed.***

We believe that our culture, including our management philosophy, has been a critical component to our success and that our culture creates an environment that drives and perpetuates our overall business strategy. We have invested substantial time and resources in building our team, and we expect to continue to hire aggressively as we expand in both the United States and internationally. As we grow and mature as a public company and grow internationally, we may find it difficult to maintain the valuable aspects of our culture.

Furthermore, our operations are conducted by a fully remote workforce that we believe is instrumental to maintaining our culture. However, failure to preserve our culture could harm our future success, including our ability to retain and recruit personnel, innovate and operate effectively and execute our business strategy. If we are unsuccessful in recruiting, hiring, training, managing and integrating new employees, or retaining our existing employees, or if we fail to preserve the valuable aspects of our culture, it could materially impair our ability to service and attract new Members and risk capital partners, all of which would materially and adversely affect our business, results of operations, financial condition and prospects.

**Risks Related to Our Technology and Intellectual Property** 

***If we are unable to leverage our information systems to enhance the information benefits available to our Members and risk capital partners through our Risk Exchange, our results may be adversely affected.***

To leverage our underwriting knowledge in providing information services to our Members, we must continue to implement and enhance information systems that can analyze data to provide information useful to our Risk Exchange Members. This may require frequent upgrades to the Risk Exchange and updating other information systems that we rely upon in providing our services. Delays or other problems we might encounter in implementing these upgrades and updates could adversely affect our ability to deliver timely information to our Members, which may result in them reducing the amount of premium placed through our Risk Exchange, which would adversely affect our business, results of operations, financial condition, and prospects.

***Our future success depends on our ability to continue to develop and implement technology, and to maintain the confidentiality of this technology.***

Our future success depends on our ability to continue to develop, implement, and maintain the confidentiality of our proprietary technology. For example, we are continuing to develop our cloud-native, digital platform that

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offers Risk Exchange participants a single, secure place to operate. We expect that as AI-driven technology and services gain market acceptance in the insurance industry, new competitors will arise. Changes to existing laws, their interpretation or implementation, or the introduction of new laws could impede our use of this technology or require that we disclose our proprietary technology to our competitors, which could negatively impact our competitive position and result in a material adverse effect on our business, results of operations, financial condition and prospects. In most jurisdictions, government regulatory authorities have the power to interpret and amend laws and regulations applicable to the processing of data. Such authorities may require us to incur substantial costs to comply with such laws and regulations. Regulatory statutes are broad in scope and subject to differing interpretation. In some areas of our business, we act on the basis of our own or the industry's interpretations of applicable laws or regulations, which may conflict from jurisdiction to jurisdiction. In the event those interpretations eventually prove different from the interpretations of regulatory authorities, we may be penalized or precluded from carrying on our previous activities. Our E&O insurance coverage covering certain security and privacy damages and claim expenses may not be sufficient to compensate for all liabilities we may incur.

***Loss of key vendor relationships or failure of a vendor to protect our data, confidential and proprietary information could adversely affect our operations.***

We rely on services and products provided by many vendors in the United States and abroad. These include, for example, vendors of computer hardware and software, and vendors and/or outsourcing of services such as claim adjustment services and investment management services. In the event that any vendor suffers a bankruptcy or otherwise becomes unable to continue to provide products or services, or fails to protect our confidential, proprietary, and other information, we may suffer operational impairments and financial losses. In addition, while we generally monitor vendor risk, including the security and stability of our critical vendors, we may fail to properly assess and understand the risks and costs involved in the third-party relationships, and our financial condition and results of operations could be materially and adversely affected.

We anticipate that we will continue to rely on third-party software in the future. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace. In addition, integration of new third-party software may require significant work and require substantial investment of our time and resources. Use of additional or alternative third-party software would require us to enter into license agreements with third parties, which may not be available on commercially reasonable terms or at all. Many of the risks associated with the use of third-party software cannot be eliminated, and these risks could negatively affect our business.

***Failure to obtain, maintain, protect, defend, or enforce our intellectual property rights, or allegations that we have infringed, misappropriated or otherwise violated the intellectual property rights of others, could harm our reputation, ability to compete effectively, business, and financial condition.***

Our success and ability to compete depends in part on our ability to obtain, maintain, protect, defend, and enforce our intellectual property. To protect our intellectual property rights, we rely on a combination of trademark laws, copyright laws, trade secret protection, confidentiality agreements and other contractual arrangements with our affiliates, employees, Members, strategic partners and others, as well as internal policies and procedures regarding our management of intellectual property. However, the protective steps that we take may be inadequate to deter misappropriation of our proprietary information, and any infringement, misappropriation or dilution of our intellectual property could materially and adversely harm our business. In addition, we may be unable to detect the unauthorized use of, or take appropriate steps to enforce, our intellectual property rights. Further, we operate in many foreign jurisdictions and effective trademark, copyright, and trade secret protection may not be available in every country or jurisdiction in which we offer our services. Policing unauthorized use of our intellectual property is difficult, expensive, and time-consuming, and we may be required to spend significant resources to monitor and protect our intellectual property rights.

Failure to protect our intellectual property adequately could harm our reputation and affect our ability to compete effectively. Although our important brand names, including "Accelerant" and "Mission Underwriters"

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are registered or we intend to register for trademark protection, our competitors and other third parties may misappropriate our intellectual property. In addition, even if we initiate litigation against third parties, such as suits alleging infringement, misappropriation, or other violation of our intellectual property, we may not prevail. Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management. Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property rights. Additionally, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. An adverse determination of any litigation proceedings could put our intellectual property at risk of being invalidated or interpreted narrowly and could put our related intellectual property at risk of not issuing or being cancelled. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments. If securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our Class A common shares. Any of the foregoing could adversely affect our business, results of operations, financial condition, and prospects.

We operate in many foreign jurisdictions and effective trademark, copyright, and trade secret protection may not be available in every country or jurisdiction in which we offer our services. Failure to protect our intellectual property adequately could harm our reputation and affect our ability to compete effectively.

Meanwhile, third parties may assert intellectual property-related claims against us, including claims of infringement, misappropriation, or other violation of their intellectual property, which may be costly to defend, could require the payment of damages, legal fees, settlement payments, royalty payments, and other costs or damages, including treble damages if we are found to have willfully infringed certain types of intellectual property, and could limit our ability to use or offer certain technologies, products, or other intellectual property. Any intellectual property claims, including a cease-and-desist letter we have received regarding the right to use the mark Risk Exchange, with or without merit, could be expensive, take significant time and divert management's resources, time, and attention from other business concerns. Moreover, other companies, including our competitors, may have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Successful challenges against us could require us to modify or discontinue our use of technology or business processes where such use is found to infringe, misappropriate, or otherwise violate the rights of others, or require us to purchase costly licenses from third parties, which may not be available on commercially reasonable terms, or at all. Even if a license is available to us, it could be non-exclusive thereby giving our competitors and other third parties access to the same technologies licensed to us, and we may be required to pay significant upfront fees, milestone payments or royalties, which would increase our operating expenses. Any of the foregoing could adversely affect our business, results of operations, financial condition, and prospects.

We rely on the use of credit scoring in pricing and underwriting certain of our insurance policies by Accelerant's owned insurance companies and reinsurance companies, and any legal or regulatory requirements that restrict our ability to access credit score information could decrease the accuracy of our pricing and underwriting process and thus decrease our profitability.

We use credit scoring as a factor in pricing and underwriting decisions where allowed by state law. Consumer groups and regulators have questioned whether the use of credit scoring unfairly discriminates against some groups of people and are calling for laws and regulations to prohibit or restrict the use of credit scoring in underwriting and pricing. Laws or regulations that significantly curtail or regulate the use of credit scoring, if enacted in a large number of states in which we operate, could impact the integrity of our pricing and underwriting processes, which could, in turn, materially and adversely affect our business, financial condition, results of operations and prospects, and our profitability over time.

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***Our employees could take excessive risks, which could negatively affect our financial condition and business.***

Our Underwriting segment is in the business of binding certain risks. The employees who conduct our business, including executive officers and other members of management, underwriters, product managers and other employees, do so in part by making decisions and choices that involve exposing us to risk. These include decisions such as setting underwriting guidelines and standards, product design and pricing, determining which business opportunities to pursue, and other decisions. We endeavor, in the design and implementation of our compensation programs and practices, to avoid giving our employees incentives to take excessive risks. Employees may, however, take such risks regardless of the structure of our compensation programs and practices. Similarly, although we employ controls and procedures designed to monitor employees' business decisions and prevent them from taking excessive risks, these controls and procedures may not be effective. If our employees take excessive risks, the impact of those risks could have a material adverse effect on our financial condition and business operations.

***Future acquisitions or investments contain inherent strategic, execution, and compliance risks that could disrupt our business and harm its financial condition.***

We may pursue acquisitions or investments to grow our business or as part of the MGA Operations segment's efforts to capture the economics of select Members. There is no guarantee that these acquisitions or investments will achieve the desired return sought. These acquisitions or investments could also cause additional risk due to the liabilities or unforeseen expenses that such acquisitions or investments may bring, such as higher-than-expected costs due to market competition for the acquisition/investment, regulatory approval requirements, delays in implementation, lost opportunities that could have been pursued with cash being used for other purposes, litigation or regulatory enforcement post-acquisition or investment, contingent liabilities, implementation cost, misalignment of culture, loss of technology through theft or trade secrets exchanged, loss of key partners/vendors, currency exchange rate for foreign investment, timing within overall economic environment, carrying costs, and tax liabilities. Additionally, the risks from future acquisitions or investments could result in impairment charges against goodwill or increases in the liabilities on our consolidated balance sheet, as well as missed earnings results.

***Our business and operations could suffer in the event of a system or information security failure or in the event that we are the target of a cyberattack.***

We utilize information technology systems and networks to process, transmit, and store electronic information in connection with our business activities. As use of digital technologies has increased, cyber incidents, including deliberate attacks and attempts to gain unauthorized access to computer systems and networks, have increased in frequency and sophistication. These threats pose a risk to the security of our systems and networks and the confidentiality, availability, and integrity of our data. The Company's Chief Information Security Officer ("CISO") has primary responsibility over the Company's cybersecurity and cyber risk management, which includes implementing a company-wide information security strategy and program. The CISO provides reports of key metrics and related updates to our Board of Directors on a quarterly basis and more frequently as and when required. There can be no assurance that we will be successful in preventing cyber-attacks or successfully mitigating their effects.

Despite the implementation of security measures, our internal computer systems, and those of our vendors, are vulnerable to damage from cyber-attack, computer viruses, unauthorized access, natural disasters, terrorism, war, and telecommunication and electrical failures. Furthermore, our personal or other sensitive information or systems could be exposed or subject to attack as a result of breaches of our security measures and computer systems or those of our vendors. Any such system failure, accident, or security breach could cause interruptions in our operations, including the availability of our Risk Exchange or result in a material disruption of our operations. Additionally, a data security incident could also lead to public exposure of personal information and result in harm to our reputation and business, compel us to comply with federal and state breach notification laws and foreign law equivalents including the EU GDPR and/or the UK GDPR, subject us to investigations and mandatory corrective action, or

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otherwise subject us to liability under laws and regulations that protect the privacy and security of personal information, which could disrupt our business, result in increased costs or loss of revenue, and/or result in significant financial exposure. Furthermore, the costs of maintaining or upgrading our cybersecurity systems (including the recruitment and retention of experienced information technology professionals, who are in high demand) at the level necessary to keep up with our expanding operations and prevent against potential attacks are increasing, and despite our best efforts, our network security and data recovery measures and those of our third-party service providers may still not be adequate to protect against such security breaches and disruptions, which could cause material harm to our business, financial condition and results of operations.

**Risks Related to Legal and Regulatory Requirements** 

***Our businesses are subject to significant governmental regulation, changes in which could reduce our profitability, limit our growth, or increase competition.***

Our businesses are subject to legal and regulatory oversight throughout the world, including by U.S. state insurance regulators, Belgian insurance regulators, the National Bank of Belgium (the "NBB"), the Financial Services and Markets Authority, insurance regulators throughout the European Economic Area (the "EEA"), under the Belgian Code of Companies and Associations, the Belgian Act of March 13, 2016 on the Status and Supervision of Insurance and Reinsurance Undertakings, under the UK Companies Act and the rules and regulations promulgated by the Financial Conduct Authority (the "FCA") and the Prudential Regulation Authority (the "PRA"), the Foreign Corrupt Practices Act of 1977 (the "FCPA") in the U.S., the Bribery Act of 2010 in the UK, the Corruption of Foreign Public Officials Act of 1999 (as amended) in Canada and a variety of other laws, rules and regulations addressing, among other things, licensing, data privacy and protection, cybersecurity, AI, anti-corruption, wage and hour standards, employment and labor relations, sanctions, anti-competition, and anticorruption. Maintaining compliance with these legal and regulatory oversight schemes as they evolve could reduce our profitability or limit our growth by: increasing the costs of legal and regulatory compliance; limiting or restricting the products or services we sell, the markets we serve or enter, the methods by which we sell our products and services, the prices we can charge for our services, or the form of compensation we can accept from our risk capital partners; or by subjecting our businesses to the possibility of legal and regulatory actions or proceedings.

Certain of our businesses are subject to compliance with laws and regulations enacted by U.S. federal and state governments, the EEA/UK or other jurisdictions or enacted by various regulatory organizations or exchanges relating to the privacy and security of the personal information of employees or others (for example, the California Consumer Privacy Act, The New York State Department of Financial Services' cybersecurity regulation, the EU General Data Protection Regulation, the UK Data Protection Act 2018 and the Personal Information Protection and Electronic Documents Act in Canada). See "Business—Regulation" for more information regarding applicable privacy regulations.

In addition, we established a subsidiary in Puerto Rico that owns and operates our Risk Exchange. Though it is not currently subject to specific regulatory oversight as a broker or insurer, it is possible that may change, in which case we would become subject to further regulations that could cause us to alter or curtail our activities, or require additional expenditures for compliance purposes.

The variety of applicable privacy and information security laws and regulations exposes us to heightened regulatory scrutiny, requires us to incur significant technical, legal and other expenses in an effort to ensure and maintain compliance and will continue to impact our business in the future by increasing legal, operational and compliance costs. While we have taken steps to comply with privacy and information security laws, we cannot guarantee that our efforts will meet the evolving standards imposed by data protection and other regulatory authorities. If we are found not to be in compliance with these privacy and security laws and regulations, we may be subject to additional potential private consumer, business partner or securities litigation, regulatory inquiries, and governmental investigations and proceedings, regulatory sanctions, and we may incur damage to our reputation. Any such developments may subject us to material fines and other regulatory penalties and/or civil

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and criminal liability, including in some jurisdictions, personal liability for individual members of management and other individuals in leadership roles, may divert management's time and attention, and lead to enhanced regulatory oversight, any of which could have a material adverse effect on our business, results of operations, financial condition, reputation, and liquidity. Additionally, we expect that developments in privacy and cybersecurity worldwide will increase the financial and reputational implications in the event of a significant breach of our or our third-party suppliers' information technology systems.

There has also been increased scrutiny, including from regulators, regarding the use of algorithms, AI, diligence of data sets, oversight of data vendors, and other "big data" techniques such as using "big data" to set product pricing. Our ability to procure and use data to gain insights into and manage our business may be limited in the future by regulatory scrutiny regarding "big data." Moreover, regulators are increasing scrutiny and considering regulation of the use of AI technologies. We cannot predict what, if any, actions may be taken with regard to "big data," but such developments could impact our operations, increase legal risk or reputational harm or have a material adverse effect on our business, results of operations and financial condition. Our acquisitions of, and investments in, new businesses and our continued operational changes and entry into new jurisdictions and new service offerings increase our legal and regulatory compliance complexity, as well as the type of governmental oversight to which we may be subject.

Our continuing ability to provide insurance and underwriting services in the jurisdictions in which we operate depends on our compliance with the rules and regulations promulgated from time to time by the regulatory authorities in each of these jurisdictions. Also, we can be affected indirectly by the governmental regulation and supervision of insurance companies. For instance, if we are providing managing general underwriting services for an insurer, we may have to contend with regulations affecting that insurer.

***As we continue to grow our Member base, we anticipate expanding into new geographies that could give rise to additional regulatory, risk and other issues, which may materially affect our business, results of operations, financial condition and prospects.***

As we continue to grow our Member base, we will have to devote resources to identifying and exploring these perceived opportunities. To the extent these new Members are in new geographies, we may also have to acquire any necessary operational licenses and governmental approvals to operate our Risk Exchange or otherwise engage with Members in those geographies. In addition, we will be required to comply with laws and regulations of jurisdictions that may differ from the ones in which we currently operate. We anticipate that further geographic expansion of our Members and our Risk Exchange will give rise to additional regulatory, risk and other issues. There also can be no assurance that we would be able to successfully expand our operations in any new geographic markets.

In particular, we have recently expanded into the Canadian market by the acquisition of a licensed insurance entity. We have set up the requisite infrastructure to begin Canadian operations. Expansion to include Members located and to operate our Risk Exchange in Canada requires oversight from the Office of the Superintendent of Financial Institutions and the federal Minster of Finance, as well as coordination with each of the ten provinces and three territories in Canada that each regulate market conduct within their own province and territory. Compliance with these additional laws and regulations, as well as Canadian oversight related to personal information protection and data privacy has resulted in a substantial investment of time from our senior management, capital and other resources. This, along with similar experiences in other jurisdictions in the future, may materially and adversely affect our business, results of operations, financial condition and prospects.

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***Our insurance and reinsurance company subsidiaries and agency subsidiaries are subject to extensive regulation, which may adversely affect our ability to operate and achieve our business objectives. In addition, if we fail to comply with these regulations, we may be subject to penalties, including fines and suspensions, which may adversely affect our results of operations and financial condition.***

We are subject to the insurance laws and regulations in a number of jurisdictions worldwide. Existing laws and regulations, among other things, limit the amount of dividends and capital that can be paid to us by our reinsurance subsidiaries, prescribe solvency and capital adequacy standards, impose restrictions on the amount and type of investments that can be held to meet solvency and capital adequacy requirements, require the maintenance of reserve liabilities, impact our corporate governance, restrict our market conduct practices, and require pre-approval of acquisitions, reinsurance transactions and certain affiliate transactions. Failure to comply with these laws and regulations, make any required notifications, or maintain appropriate authorizations, licenses, and/or exemptions under applicable laws and regulations may cause governmental authorities to preclude or suspend our insurance or reinsurance subsidiaries from carrying on some or all of their activities, place one or more of them into rehabilitation or liquidation proceedings, impose monetary penalties or other sanctions on them or our affiliates, or commence insurance company delinquency proceedings against our insurance or reinsurance subsidiaries. The application of these laws and regulations by various governmental authorities may affect our liquidity and restrict our ability to expand our business operations through acquisitions or to pay dividends on our common shares, including our Class A common shares. Furthermore, compliance with legal and regulatory requirements is likely to result in significant expenses, which could have a negative impact on our profitability. To further understand these regulatory requirements, see "Business—Regulation." In some instances, where there is uncertainty as to applicability of laws and regulations, we follow practices based on our interpretations of regulations or practices that we believe generally to be followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities.

Our U.S. insurance subsidiaries are subject to risk-based capital ("RBC") requirements, based upon the "risk-based capital model" adopted by the NAIC, and other minimum capital and surplus restrictions imposed under Arkansas, Delaware and Puerto Rico law. These requirements establish the minimum amount of RBC necessary for a company to support its overall business operations. It identifies P&C insurers that may be inadequately capitalized by looking at certain inherent risks of each insurer's assets and liabilities and its mix of net written premium. Insurers falling below a calculated threshold may be subject to varying degrees of regulatory action, including supervision, rehabilitation or liquidation. Failure to maintain our RBC at the required levels could cause insurance regulators to intervene in the management of our business and, ultimately, adversely affect the ability of our insurance subsidiaries to maintain regulatory authority to conduct our business and our A.M. Best rating.

The applicable regulators in the UK and EEA expect firms to avoid actions that jeopardize compliance with their statutory objectives and applicable rules and regulations and have extensive powers to intervene in the affairs of a regulated firm. When a regulator in either the UK or the EEA is concerned that an insurer may present a risk, this may lead to negative consequences, including the requirement to maintain a higher level of regulatory capital (via capital "add-ons" under the Solvency II Directive (as defined below)) to match the higher perceived risks and enforcement action where the risks identified breach applicable rules and regulations. In the case of a breach of our license requirements or obligations arising from the applicable rules and regulations, we may be subject to regulatory sanctions, including (public) formal warnings, orders to adopt a certain course of conduct, incremental penalties and administrative fines, revocation of an undertaking license and, in the case of insurers, where the breach relates to material prudential shortcomings, emergency measures (including the appointment of an administrator or the imposition of measures aimed at winding-up the undertaking). Any such events could adversely affect our business, results of operations, or financial condition.

Our Canadian insurance subsidiary is regulated at both the federal and provincial/territorial level under regulation and supervisory requirements which, among other things, require it to maintain an adequate amount of capital (calculated in accordance with the minimum capital test). The Insurance Companies Act of Canada provides the Superintendent of Financial Institutions with a range of discretionary intervention powers which may be

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exercised over an insurance company subject to its jurisdiction, including the power to require enhanced supervision, increase capital, restrict select business operations, order the development of a contingency plan and ultimately assume control of an insurance company in circumstances the Superintendent deems warrant such action.

In the Cayman Islands, our reinsurance subsidiary is subject to minimum capital and surplus requirements and must adhere to a range of legislative and regulatory requirements. A failure to meet these requirements could subject the reinsurer to, among others, increased regulatory scrutiny, a requirement to take steps to rectify any area(s) of non-compliance, the removal of a director, a suspension of license and the appointment of a receiver or person to assume control of its affairs.

We believe it is likely there will continue to be regulatory intervention in our industry in the future, and these initiatives could adversely affect our business. Additional laws and regulations have been and may continue to be enacted that may have adverse effects on our operations, financial condition, statutory capital adequacy, and liquidity. We cannot predict the exact nature, timing or scope of these initiatives; however, we believe it is likely that there will continue to be increased regulatory intervention in our industry in the future, and these initiatives could adversely affect our ability to operate our business.

For additional information regarding insurance laws and regulations that we are subject to, see "Business—Regulation."

***Our business is subject to risks related to legal proceedings and governmental inquiries.***

We are subject to litigation, regulatory, and other governmental investigations and claims arising in the ordinary course of our business operations. The risks associated with these matters often may be difficult to assess or quantify and the existence and magnitude of potential claims often remain unknown for substantial periods of time. While we have insurance coverage for some of these potential claims, others may not be covered by insurance, insurers may dispute coverage, or any ultimate liabilities may exceed our coverage. We may be subject to actions and claims relating to the sale of insurance or our other operations, including the suitability of such products and services. Actions and claims may result in the rescission of such sales; consequently, our Members and risk capital partners may seek to recoup commissions or other compensation paid to us, which may lead to legal action against us. The outcome of such actions cannot be predicted, and such claims or actions could have a material adverse effect on our business, results of operations, financial condition, and prospects.

We must comply with and are affected by various laws and regulations, as well as regulatory and other governmental investigations, that impact our operating costs, profit margins and our internal organization and operation of our business. The insurance industry has been subject to a significant level of scrutiny by various regulatory and governmental bodies, including state attorneys general offices and state departments of insurance, concerning certain practices within the insurance industry. These practices include, without limitation, the receipt of supplemental and contingent commissions by insurance brokers and agents from insurance companies and the extent to which such compensation has been disclosed, the collection of broker fees, which we define as fees separate from commissions charged directly to Members for efforts performed in the issuance of new insurance policies, bid rigging and related matters. From time to time, our subsidiaries receive informational requests from governmental authorities.

There have been a number of revisions to existing laws as well as or proposals to modify or enact new laws and regulations regarding insurance agents and brokers. These actions have imposed in the past, and may continue to impose, additional obligations on our ability to receive fees that are based on the volume, consistency, and profitability of business that we generate.

We cannot predict the impact that any new laws, rules, or regulations may have on our business, results of operations, financial condition, and prospects. Given the current regulatory environment and the number of our subsidiaries operating in local markets throughout the U.S. and abroad, it is possible that we will become subject to further governmental inquiries and subpoenas and have lawsuits filed against us. Regulators may raise issues

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during investigations, examinations or audits that could, if determined adversely, have a material impact on us. The interpretations of regulations by regulators may change and statutes may be enacted with retroactive impact. We could also be materially adversely affected by any new industrywide regulations or practices that may result from these proceedings.

Our involvement in any investigations and lawsuits would cause us to incur additional legal and other costs and, if we were found to have violated any laws, we could be required to pay fines, damages and other costs, perhaps in material amounts. Regardless of final costs, these matters could have a material adverse effect on us by exposing us to negative publicity, reputational damage, harm to relationships with our Members, or diversion of personnel and management resources.

***We are subject to a number of, and may in the future be subject to, E&O claims as well as other contingencies and legal proceedings which, if resolved unfavorably to us, could have an adverse effect on our results of operations.***

We assist our Members with various insurance-related matters, including providing access to capacity, overseeing claims arising under policies issued by that capacity, and facilitating reinsurance placements. E&O claims against us may result in potential liability for damages arising from these services. E&O claims could include, for example, the failure of our employees or sub-agents, whether negligently or intentionally, to properly exercise our delegated authority to underwrite or bind coverage, issue policies or other documents or provide proper notices to insureds, as well as properly exercise our delegated authority to handle claims. In addition, we are subject to other types of claims, litigation, and proceedings in the ordinary course of business, which along with E&O claimants may seek damages, including punitive damages, in amounts that could, if awarded, have a material adverse impact on our financial position, earnings and cash flows. In addition to potential liability for monetary damages, such claims or outcomes could harm our reputation or divert management resources away from operating our business.

We have historically purchased, and continue to purchase, insurance to cover E&O claims to provide protection against certain losses that arise in such matters. As of March 31, 2025, our group E&O insurance policy (also known as Professional Indemnity) tower has a $10 million limit in the aggregate, and we are responsible for paying a self-insured retention of up to $1 million per claim for claims brought in the U.S. and Canada, and $250 thousand per claim for claims brought in the rest of the world. We purchase a Technology E&O insurance policy for the group with an aggregate limit of $10 million per claim with a $50 thousand retention. In addition, due to regulatory requirements in specific countries, we purchase local E&O insurance policies in certain jurisdictions. This includes a policy for Accelerant Agency (Canada) Ltd., with a CAD $6 million limit in the aggregate with a self-insured retention of up to CAD $50 thousand per claim for claims brought in Canada. We purchase a local policy in Ireland for Accelerant Agency Limited, with a $2 million (£1.55 million) limit in the per claim and $5 million (£3.87 million) in the aggregate. We are responsible for paying a self-insured retention of up to $250 thousand (£193 thousand) per claim. We also purchase a local policy in the UK for Accelerant Agency Limited UK Branch with a $7 million (£5.4 million) limit in the aggregate with a $2 million (£1.55 million) limit per claim. We are responsible for paying a self-insured retention of up to $250 thousand (£193 thousand) per claim for claims brought in the United Kingdom. If we exhaust or materially deplete our coverage under our E&O policy, it could have a material adverse effect on our financial condition. Accruals for these exposures, when applicable, have been recorded to the extent that losses are deemed probable and are reasonably estimable. These accruals are adjusted from time to time as developments warrant and may also be adversely affected by disputes we may have with our insurers over coverage.

***Proposed tort reform legislation, if enacted, could decrease demand for casualty insurance, thereby reducing our commission revenues.***

Legislation concerning tort reform has been considered, from time to time, in the United States Congress and in several state legislatures. Among the provisions considered in such legislation have been limitations on damage awards, including punitive damages, and various restrictions applicable to class action lawsuits.

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Enactment of these or similar provisions by Congress, or by states in which we sell insurance, could reduce the demand for casualty insurance policies or lead to a decrease in policy limits of such policies sold, thereby reducing our commission revenues.

***Because we are a holding company and some of our operations are conducted by our insurance subsidiaries, our ability to achieve liquidity at the holding company, including the ability to pay dividends and service our debt obligations, to a limited extent, depends, in part, on our ability to obtain cash dividends or other permitted payments from our insurance subsidiaries.***

The continued operation and growth of our business will require substantial capital. Accordingly, we do not intend to declare and pay cash dividends on our common shares in the foreseeable future. Because we are a holding company with no business operations of our own, our ability to pay dividends to shareholders and meet our debt payment obligations is dependent upon dividends and other distributions from our subsidiaries. With respect to our insurance carrier subsidiaries, U.S. state insurance laws, including the laws of Arkansas and Delaware, restrict the ability of ASIC and ANIC to determine how we declare shareholder dividends. State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of available policyholder surplus that is derived from net profits on our business. State insurance regulators have broad powers to prevent the reduction of statutory surplus to levels that regulators consider to be inadequate, and there is no assurance that dividends up to the maximum amounts calculated under any applicable formula would be permitted. Moreover, state insurance regulators that have jurisdiction over the payment of dividends by our insurance subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. In addition, dividends and other distributions from our subsidiaries may be subject to incremental income or withholding taxes, which may reduce the amount of cash available for distribution to our shareholders.

Our carriers located in jurisdictions outside the United States are similarly restricted under local law in their ability to pay dividends.

Any determination to pay dividends in the future will be at the discretion of our Board of Directors and will depend upon results of operations, financial condition, contractual restrictions pursuant to our debt agreements, our indebtedness, restrictions imposed by applicable law, and other factors our Board of Directors deems relevant, and, as noted above will be subject to regulatory oversight. Consequently, investors may need to sell all or part of their holdings of our Class A common shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking immediate cash dividends should not purchase our Class A common shares.

***Regulations affecting insurance carriers with which we place business impact how we conduct our operations.***

Insurers are also heavily regulated by state insurance departments for solvency issues, reserve requirements and market conduct practices, among other things. We cannot guarantee that all insurance carriers with which we do business comply with regulations instituted by state insurance departments. We may need to expend resources to address questions or concerns regarding our relationships with these insurers, diverting management resources away from operating our business.

***We may face increasing scrutiny and evolving expectations from investors, customers, regulators and other stakeholders regarding environmental, social and governance matters.***

There is increasing scrutiny and evolving expectations from investors, customers, regulators, and other stakeholders on environmental, social and governance ("ESG") practices and disclosures, including those related to environmental stewardship, climate change, diversity, equity and inclusion, racial justice, workplace conduct, and other social and political mandates. Legislators and regulators have imposed and likely will continue to impose ESG-related legislation, rules and guidance, which may conflict with one another and impose additional

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costs on us, block or impede our business opportunities, or expose us to new or additional risks. Moreover, certain organizations that provide information to investors have developed ratings for evaluating companies on their approach to different ESG matters. A lack of ratings or unfavorable ratings of our company or our industry may lead to negative investor sentiment and the diversion of investment to other companies or industries. Further, our insureds include a wide variety of industries, including potentially controversial industries. Damage to our reputation as a result of our provision of policies to certain insureds could result in decreased demand for our insurance products.

Additionally, certain states have adopted laws or regulations that would restrict business dealings with, and investments in, entities determined to be boycotting companies involved in fossil fuel-based energy or other industries or to have taken public stances with regard to certain ESG issues. If we are unable to meet these standards, expectations, laws or regulations, some of which may be in contradiction with each other, it could result in adverse publicity, reputational harm, loss of business opportunities, or loss of customer and/or investor confidence, each of which individually or in the aggregate could adversely affect our business, results of operations, financial condition and prospects.

***Economic substance legislation of the Cayman Islands and other recently-enacted legislation and regulations may adversely impact us or our operations.***

The Cayman Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing concerns raised by the Council of the European Union as to offshore structures engaged in certain activities that attract profits without real economic activity. With effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act, (2020 Revision) (the "Substance Act") came into force in the Cayman Islands introducing certain economic substance requirements for in-scope Cayman Islands entities which are engaged in certain "relevant activities," which in the case of exempted companies incorporated before January 1, 2019 applied in respect of financial years commencing July 1, 2019 and thereafter. As we are a Cayman Islands company, compliance obligations include filing annual notifications, which need to state whether we are carrying out any relevant activities and if so, whether we have satisfied economic substance tests to the extent required under the Substance Act. As the implementation of the Substance Act is still in its infancy, the impact of these economic substance requirements and how they may evolve is unclear, and it is difficult to predict the nature and effect of these requirements on the economy of the Cayman Islands. If the Cayman Islands Tax Information Authority determined that we or any of our Cayman Islands subsidiaries failed to meet the requirements imposed by the Substance Act, we or they may face significant financial penalties, restriction on the regulation of its business activities and/or may be struck off as a registered entity in the Cayman Islands. As it is a new regime, it is anticipated that the Substance Act will evolve and be subject to further clarification and amendments. We may need to allocate additional resources to keep updated with these developments, and may have to make changes to our operations in order to comply with all requirements under the Substance Act. Failure to satisfy these requirements may subject us to penalties under the Substance Act, which could materially adversely affect our business, results of operations, financial condition and prospects.

*Anti-Money Laundering Matters* ****

If any person in the Cayman Islands knows or suspects, or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering, or is involved with terrorism or terrorist financing and property, and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) the Financial Reporting Authority of the Cayman Islands ("FRA"), pursuant to the Proceeds of Crime Act (As Revised) of the Cayman Islands, if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher, or the FRA, pursuant to the Terrorism Act (As Revised) of the Cayman Islands, if the disclosure relates to involvement with terrorism or terrorist financing and property. The failure of us or any of our officers to comply could materially adversely affect our business, results of operations, financial condition and prospects.

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**Risks Related to Taxation** 

In addition to the risk factors discussed below, we advise you to read "Certain Material Tax Considerations." You should consult your own tax advisor regarding the tax consequences applicable to you of an investment in our Class A common shares.

***We are subject to taxation in multiple jurisdictions. As a result, any adverse development in the tax laws of any of these jurisdictions or any disagreement with our tax positions could have a material adverse effect on our business, results of operations, financial condition, and prospects. In addition, there is tax risk associated with the reporting of cross-border arrangements among us and our subsidiaries.***

We are subject to taxation in, and to the tax laws and regulations of, multiple jurisdictions as a result of the international scope of our operations and our corporate structure. Adverse developments in these laws or regulations, or any change in position regarding the application, administration or interpretation thereof, in any applicable jurisdiction, could have a material adverse effect on our business, results of operations, financial condition, and prospects. Moreover, the tax authorities in any applicable jurisdiction may disagree with the positions we have taken or intend to take regarding the tax treatment or characterization of any of our transactions. If any applicable tax authorities were to successfully challenge the tax treatment or characterization of any of our transactions, it could have a material adverse effect on our business, results of operations, financial condition, and prospects.

In addition, we conduct operations through our subsidiaries in various tax jurisdictions, and consider transfer pricing implications of such operations where applicable. If two or more affiliated companies are located in different countries, the tax laws or regulations of each country generally will require that transfer prices be the same as those between unrelated companies dealing at arms' length and that appropriate documentation is maintained to support the transfer prices. While we believe that we operate in compliance with applicable transfer pricing laws and intend to continue to do so, our transfer pricing procedures are not binding on applicable tax authorities. If tax authorities in any of these countries were to successfully challenge our transfer prices as not reflecting arms' length transactions they could require us to adjust our transfer prices and thereby reallocate our income to reflect these revised transfer prices. If the country from which the income is reallocated does not agree with the reallocation, both countries could tax the same income, resulting in double taxation. If tax authorities were to allocate income to a higher tax jurisdiction, subject our income to double taxation or assess interest and penalties, it would increase our consolidated tax liability, which could adversely affect our financial condition, results of operations and cash flows. Prospective investors are also urged to review the risk factor below labeled "There is U.S. federal income tax risk associated with reinsurance transactions, intercompany transactions and distributions between U.S. companies and their non-U.S. affiliates."

***Accelerant and certain of our non-U.S. subsidiaries may be subject to U.S. federal income taxation which could have a material adverse effect on our business, results of operations, financial condition, and prospects.***

Accelerant and our non-U.S. subsidiaries that are classified as foreign corporations for U.S. federal income tax purposes intend to operate in a manner that will not cause them to be treated as engaged in a trade or business within the United States or subject to current U.S. federal income taxation on their net income. However, because there is considerable uncertainty as to when a foreign corporation is engaged in a trade or business within the United States under the applicable law and the determination is highly factual and must be made annually, there can be no assurance that the U.S. Internal Revenue Service ("IRS") will not contend successfully that Accelerant or any of such non-U.S. subsidiaries is engaged in a trade or business in the United States. If Accelerant or any of its non-U.S. subsidiaries that are classified as foreign corporations for U.S. federal income tax purposes are considered to be engaged in a trade or business in the United States, the applicable entity could be subject to U.S. federal income taxation on a net basis on its income that is effectively connected with such U.S. trade or business (including branch profits tax on the portion of its earnings and profits that is attributable to such income). Any such U.S. federal income taxation could result in substantial tax liabilities and consequently could have a material adverse effect on our financial condition and results of future operations. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of Accelerant and Its Subsidiaries."

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***U.S. tax-exempt organizations that own our Class A common shares may recognize unrelated business taxable income ("UBTI").***

A U.S. tax-exempt organization that directly or indirectly owns our Class A common shares generally will recognize UBTI and be subject to additional U.S. tax filing obligations to the extent such tax-exempt organization is required to take into account any of our insurance income or related person insurance income ("RPII") pursuant to the controlled foreign corporation ("CFC") and RPII rules described below. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Tax-Exempt U.S. Holders."

***As of March 31, 2025, we had net deferred tax assets of $45.1 million, net of a valuation allowance of $44.5 million, which may become devalued if either Accelerant does not generate sufficient future taxable income or applicable corporate tax rates are reduced (or applicable tax laws otherwise change).***

We had net deferred tax assets of $45.1 million as of March 31, 2025 and also apply valuation allowances to our deferred tax assets (principally consisting of unutilized net operating losses). These predominantly arise from new business challenges on our owned insurance companies where operating expenses exceeded the initial underwriting profits recognized in the period. Utilization of most deferred tax assets is dependent on generating sufficient future taxable income in the appropriate jurisdiction and/or entity and in the appropriate character (e.g., capital vs. ordinary). If it is determined that it is more likely than not that sufficient future taxable income will not be generated, we would be required to increase the applicable valuation allowance. Most of our deferred tax assets are determined by reference to applicable corporate income tax rates, in particular the U.S. corporate income tax rates. Accordingly, in the event of new legislation that reduces any such corporate income tax rates, the carrying value of certain deferred tax assets would decrease. A material devaluation in our deferred tax assets due to either insufficient taxable income or lower corporate tax rates would have an adverse effect on Accelerant's results of operations and financial condition.

***Changes in tax laws or policy or interpretations of such laws could materially reduce our earnings, affect our operations, increase our tax liability and adversely affect our cash flows.***

Changes in tax laws or policy could have a material adverse effect on our profitability and financial condition, and could result in our subsidiaries incurring materially higher taxes.

The U.S. federal income tax laws and interpretations thereof are subject to change, which may have retroactive effect and could materially affect us.

The Inflation Reduction Act of 2022 was signed into law on August 16, 2022. The Inflation Reduction Act of 2022 contains tax provisions including a corporate alternative minimum tax on certain large corporations, a 1% excise tax on publicly traded corporate buybacks and modifications to clean energy investment tax credits. While we currently anticipate no immediate financial impact of this legislation, regulations or administrative guidance promulgated pursuant to the Inflation Reduction Act of 2022 may materially and adversely affect our financial condition and results of operations.

In addition, since 2017, the member countries of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting have developed a two-pillar approach to address the tax challenges arising from the digitalization of the economy. "Pillar One" addresses nexus and profit allocation challenges, while "Pillar Two" addresses perceived base erosion. Pillar One provides for exclusions for "Regulated Financial Services"; therefore we do not anticipate a material impact on insurance and reinsurance groups. Regulated Financial Services are not, however, exempt from Pillar Two.

The OECD has published two sets of model rules implementing a 15% global minimum tax: first, an income inclusion rule ("IIR"), which imposes "top-up" tax on a parent entity in respect of the low-taxed income of a subsidiary, and second, an "undertaxed payments" rule ("UTPR"), which denies deductions or requires an

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equivalent adjustment to the extent the low-taxed income of an affiliate is not subject to tax under an IIR. There will also be a treaty-based "subject to tax" rule that allows source jurisdictions to impose limited source taxation on certain related party payments subject to tax below a minimum rate. Key aspects of Pillar Two (including IIR regimes) have already become effective in jurisdictions relevant to our business as of January 1, 2024, with other aspects (including UTPR regimes) expected to become effective in 2025. The UK, for example, enacted legislation in July 2023 implementing an IIR via a multinational top-up tax (alongside a UK domestic top-up tax) that applies to multinational enterprises for accounting periods beginning on or after December 31, 2023 and enacted further legislation in March 2025 implementing a UTPR that applies for accounting periods beginning on or after December 31, 2024.

The OECD has released administrative guidance which clarifies (and in some cases amends previously released guidance) on the application of the model Pillar Two rules, and jurisdictions enacting legislation in respect of Pillar Two have sought to implement these updates (either by way of legislative amendment or the release of further domestic guidance). We expect that the OECD will continue to release updates to its administrative guidance which may result in further amendments to the Pillar Two rules as they apply in relevant jurisdictions. As such, several aspects of the Pillar Two rules, including whether some or all of our business and the companies in which we invest fall within the scope of the exclusions therefrom, currently remain uncertain. The release of further updates to the model Pillar Two rules and adoption of Pillar Two legislation (including IIR or UTPR regimes) by additional jurisdictions may give rise to consequential amendments to tax laws (other than those which seek to enact or modify Pillar Two rules) in other jurisdictions.

The Pillar One and Pillar Two proposals form part of the OECD's broader Base Erosion and Profit Shifting ("BEPS") Project, which has been running since 2015. The implementation of the recommendations of the BEPS Project by OECD member countries has given rise to significant changes in domestic and international tax laws in recent years, including a number of Directives of the European Union (currently at various stages of implementation by Member States) which address matters such as anti-hybrid legislation and tax substance and a Multilateral Convention affecting the interpretation of many international tax treaties. The impact of the BEPS Project on our business will require ongoing assessment.

***Our UK and non-UK operations may be affected by changes in UK tax law.***

None of our entities should be treated as being resident in the UK for UK tax purposes, except for our subsidiaries that are incorporated in the UK, Accelerant Holdings, Accelerant Holdings (Cayman) Ltd and Mission Worldwide Holdings (together, the "UK Resident Entities"). Although Accelerant Holdings, Accelerant Holdings (Cayman) Ltd and Mission Worldwide Holdings are not incorporated in the UK, it is the intention that their affairs will be conducted so that their central management and control is exercised in the UK and, as a result, they are each treated as a resident in the UK for UK tax purposes.

Accordingly, the UK Resident Entities are expected to generally be subject to UK tax in respect of their worldwide income, profits and gains. Any change in the basis or rate of UK corporation tax or His Majesty's Revenue and Customs' ("HMRC") practice and interpretation of UK tax law could materially adversely affect the business, prospects, financial condition and/or results of operations of the UK Resident Entities or their ability to provide returns to shareholders. The UK corporation tax rate is currently 25%.

***There is U.S. federal income tax risk associated with reinsurance transactions, intercompany transactions and distributions between U.S. companies and their non-U.S. affiliates.***

Certain U.S. companies that make deductible payments to related non-U.S. companies are subject to the Base Erosion and Anti-Abuse Tax (the "BEAT"). The BEAT is generally equal to the excess of a 10% tax on the taxpayer's "modified taxable income" over the taxpayer's regular tax liability (reduced by certain credits), with "modified taxable income" being computed without regard to certain deductions for "base erosion payments".

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The tax on "modified taxable income" also increases from 10% to 12.5% for taxable years beginning after 2025. The BEAT applies to deductions arising out of "any premium or other consideration" paid or accrued to a related foreign reinsurer.

Both our U.S. and non-U.S. ceding companies reinsure business to Accelerant affiliates. We have structured our internal reinsurance in a manner intended to ensure that our non-U.S. reinsurers reinsure business only from other non-U.S. ceding companies for U.S. federal income tax purposes. There can be no assurances our structuring efforts will be successful. If we are not able to structure our internal reinsurance in this manner, or the IRS were to successfully assert that our non-U.S. reinsurers reinsure our U.S. ceding companies for U.S. federal income tax purposes, we could be required to pay additional tax, and our financial condition and results from operations could be materially adversely affected.

As summarized above under "Changes in tax laws or policy or interpretations of such laws could materially reduce our earnings, affect our operations, increase our tax liability and adversely affect our cash flows", proposed changes to BEAT, if effective, would likely increase the amount of additional tax we would be required to pay, if we were subject to BEAT.

In addition, the Internal Revenue Code of 1986, as amended (the "Code"), permits the IRS to reallocate, recharacterize or adjust items of income, deduction or certain other items related to a reinsurance agreement between related parties to reflect the proper "amount, source or character" for each item. If the IRS were successfully to challenge our intercompany reinsurance arrangements between our subsidiaries, our financial condition and results of operations could be materially adversely affected.

Generally, distributions by our U.S. subsidiaries to our non-U.S. subsidiaries are subject to a 30% U.S. federal withholding tax on the gross amount of any distribution that is treated as a dividend or dividend-equivalent payment for U.S. federal income tax purposes. However, we believe that we and the entities through which we hold our U.S. subsidiaries are eligible for a 5% rate of withholding on dividends under the U.S.-UK Tax Treaty unless we have owned shares representing at least 80% of the voting power of a U.S. subsidiary paying a dividend for the 12-month period ending on the date the dividend was declared, in which case there would be no U.S. withholding on such dividend under the U.S.-UK Tax Treaty. We intend to manage our affairs in a manner that is intended to allow such entities to qualify for such reduction in or exemption from U.S. withholding tax under the U.S.-UK Tax Treaty. No assurances can be made, though, that (i) we will qualify for benefits under the U.S.-UK Tax Treaty, (ii) the U.S.-UK Tax Treaty will provide relief from this potential withholding tax or (iii) we would qualify for similar relief under another tax treaty if benefits under the U.S.-UK Tax Treaty were unavailable, in each case, for a taxable year that includes a distribution from our U.S. subsidiaries. Certain U.S. to non-U.S. reinsurance arrangements may also be subject to a 30% U.S. federal withholding tax. We may therefore be limited in our ability to move cash efficiently from our U.S. subsidiaries or to make distributions with respect to our Class A common shares.

***Our annual effective income tax rate can change materially as a result of changes in our mix of U.S. and non-U.S. earnings and other factors, including changes in U.S. and foreign tax laws and changes made by regulatory authorities.***

Our overall effective income tax rate is equal to our total tax expense as a percentage of total earnings before tax. However, income tax expense and benefits are not recognized on a global basis but rather on a jurisdictional or legal entity basis. Losses in one jurisdiction may not be used to offset profits in other jurisdictions and may cause an increase in our tax rate and give rise to a tax expense even though the Company has cumulative losses. Changes in the mix of earnings (or losses) between jurisdictions and assumptions used in the calculation of income taxes, among other factors, could have a significant effect on our overall effective income tax rate.

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***U.S. persons who own our Class A common shares may be subject to U.S. federal income taxation at ordinary income rates on a disproportionate share of our undistributed earnings and profits attributable to RPII.***

If Accelerant Re Cayman, Accelerant Insurance Europe SA, AIUK, Accelerant Insurance Company of Canada or Accelerant Re I.I. (each, a "Non-U.S. Carrier" and collectively, the "Non-U.S. Carriers") is treated as recognizing RPII in a taxable year and such Non-U.S. Carrier is treated as a CFC for purposes of taking into account RPII (a "RPII CFC") for such taxable year, each U.S. person that owns any of our Class A common shares directly or indirectly through certain entities as of the last day in such taxable year must generally include in gross income its pro rata share of the RPII (with certain adjustments), determined as if the RPII were distributed proportionately only to all RPII Shareholders (as defined below), regardless of whether that income is distributed. For this purpose, any of our subsidiaries that is a Non-U.S. Carrier generally will be treated as a RPII CFC if U.S. persons who own (or are treated as owning) any of our Class A common shares or Class B common shares (each such persons, a "RPII Shareholder") in the aggregate own (or are treated as owning) 25% or more of the total voting power or value of such Non-U.S. Carrier's stock on any day of its taxable year. Based on our expected ownership, we expect the Non-U.S. Carriers will be treated as RPII CFCs for the current and all future years.

RPII generally is any income of a non-U.S. corporation attributable to insuring or reinsuring risks of a U.S. person that owns (or is treated as owning) stock of such non-U.S. corporation, or risks of a person that is "related" to such a U.S. person. For this purpose, (1) a person is "related" to another person if such person "controls," or is "controlled" by, such other person, or if both are "controlled" by the same persons, and (2) "control" of a corporation means ownership (or deemed ownership) of stock possessing more than 50% of the total voting power or value of such corporation's stock and "control" of a partnership, trust or estate for U.S. federal income tax purposes means ownership (or deemed ownership) of more than 50% by value of the beneficial interests in such partnership, trust or estate.

The RPII rules will not apply with respect to a Non-U.S. Carrier for a taxable year if (1) at all times during its taxable year less than 20% of the total combined voting power of all classes of such Non-U.S. Carrier's voting stock and less than 20% of the total value of all of its stock is owned (directly or indirectly) by persons who are

(directly or indirectly) insured under any policy of insurance or reinsurance issued by such Non-U.S. Carrier or who are related persons to any such person or (2) the Non-U.S. Carrier's RPII (determined on a gross basis) is less than 20% of its insurance income (as so determined) for the taxable year, determined with certain adjustments.

Our Non-U.S. Carriers generally provide reinsurance to our other subsidiaries and affiliates. If such other subsidiaries or affiliates were treated as related (as defined above) to a RPII Shareholder, or our Non-U.S. Carriers reinsured risks of our RPII Shareholders or their related persons, earnings from such reinsurance would constitute RPII. However, we do not believe any of our subsidiaries or affiliates will be treated as "related" to a RPII Shareholder based on the expected ownership of our shares, nor do we anticipate that our Non-U.S. Carriers will reinsure the risks of our RPII Shareholders in any material amount.

Based on the foregoing, we do not expect U.S. Holders to have RPII inclusions. Nonetheless, we cannot provide assurances that our Non-U.S. Carriers will not recognize RPII due to uncertainty about the proportions of future ownership of our shares and the complexity of certain attribution rules that apply for purposes of determining whether a RPII Shareholder would be considered to have control of and, therefore, be related to our subsidiaries or affiliates for purposes of the RPII rules, or that we will qualify for either of the RPII exceptions above in the event that our Non-U.S. Carriers recognize RPII. Moreover, certain recently issued proposed regulations would expand the scope of RPII to include premium and investment income attributable to a reinsurance policy that directly or indirectly provides coverage to a "related insured", which would be defined to include a person (other than a publicly traded company) that is more than 50% owned (or treated as more than 50% owned) in the aggregate by United States shareholders of the non-U.S. corporation providing the reinsurance. If finalized in their current form, such regulations may require U.S. persons that own any of our Class A common shares directly or indirectly to include in gross income their pro rata share of the RPII (with certain adjustments), determined as if the RPII were distributed proportionately only to all RPII Shareholders,

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regardless of whether that income is distributed. It is not certain whether such regulations will be adopted in their proposed form or what changes or clarifications might ultimately be made thereto or whether any such changes, as well as any interpretation or application of the RPII rules by the IRS, the courts, or otherwise, might have retroactive effect. For more information, please review the discussion under "Certain Material Tax Considerations — U.S. Federal Income Tax Considerations — Taxation of U.S. Holders — Related Person Insurance Income Considerations."

***U.S. persons who dispose of our Class A common shares may be required to treat any gain as ordinary income for U.S. federal income tax purposes and must comply with other specified reporting requirements.***

If a U.S. person disposes of shares in a non-U.S. corporation that is a RPII CFC at any time when the U.S. person owned any shares in the corporation during the five-year period ending on the date of disposition, any gain from the disposition will generally be treated as a dividend to the extent of the U.S. person's share of the corporation's undistributed earnings and profits that were accumulated during the period that the U.S. person owned the disposed shares (possibly whether or not those earnings and profits are attributable to RPII). Such dividend may also be taxed at ordinary income rates to the extent it is not treated as "qualified dividend income." In addition, the shareholder will be required to comply with specified reporting requirements, regardless of the amount of shares owned. Because Accelerant is not itself directly engaged in the insurance business, we do not believe that these rules apply to a disposition of our Class A common shares, although we cannot assure you that the IRS will not successfully assert that these rules apply to a disposition of our Class A common shares in light of the insurance and reinsurance activities of our Non-U.S. Carriers. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Disposition of Class A Common Shares."

***While we were not a PFIC in 2024 and do not expect to be a PFIC in 2025 or subsequent taxable years, U.S. persons who own our Class A common shares may be subject to adverse tax consequences if Accelerant is considered a PFIC for U.S. federal income tax purposes in any year in which they acquire or hold shares.***

If Accelerant is considered a PFIC for U.S. federal income tax purposes, a U.S. person who directly or, in certain cases, indirectly owns our Class A common shares could be subject to adverse tax consequences, including a greater tax liability than might otherwise apply, an interest charge on certain taxes that are deemed deferred as a result of Accelerant's non-U.S. status and additional information reporting obligations, regardless of the number of shares owned. In general, a non-U.S. corporation will be a PFIC during a taxable year if (i) 75% or more of its gross income constitutes passive income or (ii) 50% or more of its assets produce, or are held for the production of, passive income. For these purposes, passive income generally includes interest, dividends and other investment income. However, income derived in the active conduct of an insurance business by a "qualifying insurance corporation" is not treated as passive income (the "Insurance Exception"). In addition, passive income does not include income of a "qualifying domestic insurance corporation" ("QDIC"). The PFIC provisions also contain a look-through rule under which a non-U.S. corporation will be treated as if it received directly its proportionate share of the income, and held its proportionate share of the assets, of another corporation if it owns at least 25% of the value of the stock of such other corporation. Accelerant does not expect to be considered a PFIC for its current taxable year or any subsequent taxable year. However, because this determination is made annually at the end of each taxable year and is dependent on a number of factors, there can be no assurance that Accelerant will not be considered a PFIC in any taxable year. Moreover, our Non-U.S. Carriers will need to be considered engaged in the active conduct of an insurance business and have applicable insurance liabilities that exceed a certain percentage of their total assets to qualify for the Insurance Exception, among other requirements. It is possible that a Non-U.S. Carrier does not satisfy such requirements in a given taxable year, in which case such a Non-U.S. Carrier may be treated as a PFIC and the PFIC status of Accelerant could be adversely affected as a result. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Passive Foreign Investment Company Rules" for further discussion.

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***U.S. persons who own 10% or more of our shares, by vote or by value, will be subject to U.S. federal income taxation at ordinary income rates on our undistributed earnings and profits.***

In general, a "10% U.S. Shareholder" (as defined below) of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's "subpart F income" and "tested income" (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) on the last day in the non-U.S. corporation's taxable year on which it is a CFC, even if the subpart F income or tested income is not distributed. A "10% U.S. Shareholder" generally is a U.S. person that owns (directly, indirectly through non-U.S. entities or by attribution by application of the constructive ownership rules of section 958(b) of the Code (i.e., "constructively")) at least 10% of the total combined voting power or value of all classes of stock of a non-U.S. corporation. "Subpart F income" of a CFC generally includes "foreign personal holding company income" (such as interest, dividends and other types of passive income), as well as insurance and reinsurance income (including underwriting and investment income), and tested income is generally any income of the CFC other than subpart F income and certain other categories of income. An entity treated as a foreign corporation for U.S. federal income tax purposes generally is considered a CFC if 10% U.S. Shareholders own (directly, indirectly through non-U.S. entities or constructively), in the aggregate, more than 50% of the total combined voting power of all classes of voting stock of that non-U.S. corporation or more than 50% of the total value of all stock of that non-U.S. corporation. However, for the purposes of taking into account insurance income, these 50% thresholds are generally reduced to 25%. Further, special rules apply for purposes of taking into account any RPII of a non-U.S. corporation, as described above.

Whether Accelerant is a CFC for a taxable year will depend upon facts regarding our direct and indirect shareholders, about which we have limited information. Accordingly, no assurance can be provided that Accelerant will not be a CFC. Further, regardless of whether Accelerant is a CFC, most or all of our non-U.S. subsidiaries (to the extent treated as corporations for U.S. federal income tax purposes) are generally treated as CFCs because our U.S. subsidiaries are expected to be treated as constructively owning the stock of our non-U.S. subsidiaries. Accordingly, any 10% U.S. Shareholders of Accelerant may be required to include in gross income for U.S. federal income tax purposes for each taxable year their pro rata shares of all or a portion of the subpart F income and tested income generated by our non-U.S. companies (with various adjustments), regardless of whether any distributions are made to them. Any such 10% U.S. Shareholders should consult their own tax advisors regarding the application of these rules to them. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Controlled Foreign Corporation Considerations" for further discussion.

**Risks Related to this Offering and Ownership of Our Class A Common Shares** 

***The dual class structure of our common shares has the effect of concentrating voting control with the shareholders affiliated with Altamont Capital, including control over decisions that require the approval of shareholders; this will limit your ability to influence corporate matters submitted to a shareholder vote.***

Each of our Class B common shares is entitled to ten votes, and each of our Class A common shares, which are the shares we are selling in this offering, is entitled to one vote. After giving effect to the re-designation of existing common shares following the Accelerant Holdings LP Distribution and the sale of the Class A common shares offered hereby, affiliates of Altamont Capital will control approximately % of the combined voting power of our outstanding common shares following this offering (or approximately % of the combined voting power of our outstanding common shares if the underwriters' option to purchase additional Class A common shares is exercised in full).

Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B common shares shall have the right to convert each of its Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a one-for-one basis, upon transfer (other than a permitted transfer) of Class B common

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shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.

Because of the ten-to-one voting ratio between our Class B common shares and our Class A common shares, Altamont Capital (which holds the majority of our outstanding Class B common shares) will control a majority of the combined voting power of our common shares and therefore exert substantial influence over matters submitted to our shareholders so long as Altamont Capital owns a requisite percentage of our total outstanding common shares (in the form of either Class B common shares or Class A common shares). Concentrated control may limit your ability to influence corporate matters for the foreseeable future.

***We have a history of losses, which may limit our ability to develop our Risk Exchange and inhibit us from making investments in developing and expanding our business.***

Although we generated net income of $7.8 million and $22.9 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, we have a history of losses and may incur additional losses in the near term as we continue to make investments to grow our business. Despite these investments, we may not succeed in increasing our revenue on the timeline that we expect or in an amount sufficient to remain profitable. If we are unable to remain profitable, this may limit our ability to develop our Risk Exchange, sign up new Members and risk capital partners and grow our revenues. Future net losses may also lead to a reduction in premiums written through the Risk Exchange, which would inhibit us from making investments in developing and expanding our business, and may also lead to a change in our A.M. Best or credit ratings.

***An active trading market for our Class A common shares may not develop and the trading price for our Class A common shares may fluctuate significantly.***

We have applied to list our Class A common shares on the NYSE. Prior to the completion of this offering, there has been no public market for our Class A common shares, and we cannot assure you that a liquid public market for our Class A common shares will develop. If an active public market for our Class A common shares does not develop following the completion of this offering, the market price and liquidity of our Class A common shares may be materially and adversely affected. The initial public offering price for our Class A common shares will be determined by negotiation between us and the underwriters based upon several factors, and we can provide no assurance that the trading price of our Class A common shares after this offering will not decline below the initial public offering price. As a result, investors in our securities may experience a significant decrease in the value of their Class A common shares.

***Applicable insurance laws could make it difficult to effect a change of control of our Company.***

The insurance laws and regulations of the various jurisdictions in which our insurance subsidiaries are organized could delay or impede a business combination involving us. In the U.S., state insurance laws prohibit an entity from acquiring control of an insurance company without the prior approval of the domestic insurance regulator. Under most states' statutes, an entity is presumed to have control of an insurance company if it owns, directly or indirectly, 10% or more of the voting stock of that insurance company or its parent company. These and other regulatory restrictions could delay, deter or prevent a potential merger or sale of our company, even if our Board of Directors decides that it is in the best interests of stockholders for us to merge or be sold. These restrictions could also delay sales by us or acquisitions by third parties of our insurance subsidiaries.

***Our operating results and share price may be volatile, or may decline regardless of our operating performance, and you could lose all or part of your investment.***

Our quarterly operating results could fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could

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subject the market price of our shares to wide price fluctuations regardless of our operating performance. You should consider an investment in our Class A common shares to be risky, and you should invest in our Class A common shares only if you can withstand a significant loss and wide fluctuation in the market value of your investment. The market price of our Class A common shares could be subject to significant fluctuations after this offering in response to the factors described in this "Risk Factors" section and other factors, many of which are beyond our control. Among the factors that could affect our share price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the broader stock market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our quarterly financial and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• introduction of new products or services by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issuance of new or changed securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of operations that vary from expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this
guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcement by us, our competitors or our acquisition targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales, or anticipated sales, of large blocks of our Class A common shares, including by our directors,
executive officers, and principal shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures in our Board of Directors, senior management or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory, legal, or political developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public response to press releases or other public announcements by us or third parties, including our filings
with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation and governmental investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any indebtedness we may incur or securities we may issue in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• default under agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A common shares sold in this offering will be freely tradable without restriction or further
registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to capital and credit market risks that adversely affect our investment portfolio or our capital
resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our A.M. Best or credit ratings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those from natural disasters, war, acts of terrorism, or responses to these
events.

In addition, the stock markets, including the NYSE, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities. In times of stock price volatility, stockholders can often institute securities class action litigation against the issuer of such stock. If any of our shareholders bring a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which could significantly harm our profitability and reputation.

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***If securities or industry analysts do not publish research or reports about our business, or if they publish unfavorable research or reports, or they adversely change their recommendations regarding our Class A common shares, or if our results of operations do not meet their expectations, the market price for our Class A common shares and trading volume could decline.***

The trading market for our Class A common shares will be influenced by research or reports that industry or securities analysts publish about our business. We do not have any control over these analysts. As a newly public company, we may be slow to attract research coverage. If any of the analysts who may cover us provide inaccurate or unfavorable research, issue an adverse opinion regarding our share price or if our results of operations do not meet their expectations, our share price could decline. Moreover, if one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.

***The sale or availability for sale of substantial amounts of our Class A common shares could adversely affect their market price.***

Sales of substantial amounts of our Class A common shares in the public market after the completion of this offering, or the perception that these sales could occur, could adversely affect the market price of our Class A common shares and could materially impair our ability to raise capital through equity offerings in the future. The Class A common shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act of 1933, as amended (the "Securities Act"), and shares held by our existing shareholders may also be sold in the public market in the future subject to the restrictions in Rule 144 and Rule 701 under the Securities Act and the applicable lock-up agreements. There will be Class A common shares and Class B common shares outstanding immediately after this offering. Conversion of the Class B common shares would increase the number of Class A common shares available for sale and could have the effect of depressing the trading price of our Class A common shares. Following this offering, we and each of our directors and officers named in the section "Management," and certain shareholders, including Altamont Capital, have agreed not to sell any Class A common shares for days following the date of this prospectus without the prior written consent of Morgan Stanley & Co. LLC, on behalf of the underwriters, subject to certain exceptions. However, the underwriters may release these securities from these restrictions at any time, subject to applicable regulations of the Financial Industry Regulatory Authority, Inc. ("FINRA"). We cannot predict what effect, if any, market sales of securities held by our significant shareholders or any other shareholder or the availability of these securities for future sale will have on the market price of our Class A common shares. See "Underwriters" and "Shares Eligible for Future Sale" for a more detailed description of the restrictions on selling our securities after this offering.

In addition, an aggregate of approximately million of our Class A common shares, representing % of our outstanding Class A common shares, are pledged to secure obligations of certain of our executive officers, including all three of our Co-Founders, as well as other Company employees, under loan agreements with third-party lenders, including Goldman Sachs Bank Europe SE, an affiliate of Goldman Sachs & Co. LLC, one of the underwriters in this offering. million Class A common shares, or % of our outstanding Class A common shares are beneficially owned by Jeff Radke, our Co-Founder and Chief Executive Officer and a member of our Board of Directors, Christopher Lee-Smith, our Co-Founder and Head of Distribution and a member of our Board of Directors, and Frank O'Neill, our Co-Founder and Chief Underwriting Officer. All parties, including Messrs. Radke, Lee-Smith and O'Neill, are, as of the date of this prospectus, in compliance with all obligations under the terms of their loan agreements. All of the Class A common shares securing these loans are subject to lock-up agreements that, upon a foreclosure event, would require the respective lenders to execute a new lock-up agreement with the Underwriters in order to exercise any rights in respect of the shares.

If any of the borrowers defaults on obligations under these agreements, the third-party lenders may exercise their rights under the applicable loan agreement, and will hold such shares subject to a lock-up agreement on substantially similar terms as those executed by our existing shareholders. See "Underwriting" for a description of these terms.

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***Because we do not expect to pay dividends in the foreseeable future after this offering, you must rely on price appreciation of our Class A common shares for return on your investment.***

We currently intend to retain all of our available funds and any future earnings after this offering to fund the development and growth of our business. As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our Class A common shares as a source for any future dividend income.

Our Board of Directors has complete discretion regarding dividend distributions. Even if our Board of Directors decides to declare and pay dividends, the timing, amount and form of future dividends, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus, the amount of we receive from our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our Board of Directors, as well as regulatory restrictions on the ability of our insurance subsidiaries to issue dividends. Accordingly, the return on your investment in our Class A common shares will likely depend entirely upon any future price appreciation of our Class A common shares. There is no guarantee that our Class A common shares will appreciate in value after this offering or even maintain the price at which you purchased our Class A common shares. You may not realize a return on your investment in our Class A common shares and you may even lose your entire investment.

***Our success depends on our ability to retain, attract and develop experienced and qualified personnel, including our senior management team and other personnel.***

We depend upon our senior management team who possess extensive knowledge and a deep understanding of our business and strategy, and the insurance market as a whole. The unexpected loss of any of our senior management team could have a disruptive effect adversely impacting our ability to manage our business effectively. Competition for experienced professional personnel in the insurance industry is intense, and we are constantly working to retain and attract these professionals. If we cannot successfully do so, our business, results of operations, financial condition and prospects could be adversely affected.

***You must rely on the judgment of our management as to the use of the net proceeds from this offering, and such use may not produce income or increase our share price.***

Our management will have considerable discretion in the application of the net proceeds we receive. You will not have the opportunity, as part of your investment decision, to assess whether proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not improve our efforts to achieve or maintain profitability or increase our share price. The net proceeds from this offering may be placed in investments that do not produce income or that lose value.

***We may change our underwriting guidelines or strategy without shareholder approval.***

Our management has the authority to change our underwriting guidelines or our strategy without notice to our shareholders and without shareholder approval. As a result, we may make fundamental changes to our operations without shareholder approval, which could result in our pursuing a strategy or implementing underwriting guidelines that may be materially different from the strategy described in the section entitled "Business" or elsewhere in this prospectus.

***The amended and restated memorandum and articles of association that we intend to adopt contain anti-takeover provisions that could have a material adverse effect on the rights of holders of our Class A common shares.***

We intend to adopt an amended and restated memorandum and articles of association immediately prior to the completion of this offering. Our proposed amended and restated memorandum and articles of association contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control

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transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. In addition, our Board of Directors has the authority, without further action by our shareholders, to issue preference shares in one or more classes and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with our common shares. Preference shares could be issued quickly with terms having the effect of delaying or preventing a change in control of our company or making removal of management more difficult. Our Board of Directors also has the power, without shareholder approval, to set the terms of any such preference shares that may be issued, including voting rights, dividend rights, preferences over our common shares with respect to dividends or if we liquidate, dissolve or wind up our business and other terms. If we issue preference shares in the future that have preference over our common shares with respect to the payment of dividends or upon our liquidation, dissolution or winding up, or if we issue preference shares with voting rights that dilute the voting power of our common shares, the rights of holders of our common shares or the price of our Class A common shares could be adversely affected.

***Our principal shareholders have substantial influence over our company. Their interests may not be aligned with the interests of our other shareholders, and they could prevent or cause a change of control or other transactions.***

Following the re-designation of existing common shares following the Accelerant Holdings LP Distribution and the completion of this offering, affiliates of Altamont Capital will beneficially own an aggregate of Class B common shares, representing % of the combined voting power of our common shares outstanding after this offering (or approximately % of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). Altamont Capital will have a significant influence in determining the outcome of any corporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations, the election of directors and other significant corporate actions. Altamont Capital will also have the power to prevent or cause a change in control for so long as Altamont Capital beneficially owns a majority of our total outstanding common shares and will retain significant influence over such a decision after they cease to own a majority. Without the consent of Altamont Capital, we may be prevented from entering into transactions that could be beneficial to us or our minority shareholders. The interests of our largest shareholders may differ from the interests of our other shareholders. The concentration in the ownership of our Class A common shares and Class B common shares following this offering may cause a material decline in the value of our Class A common shares.

Altamont Capital and its affiliates engage in a broad spectrum of activities, including investments in industries in which we operate. In the ordinary course of their business activities, Altamont Capital and its affiliates may engage in activities where their interests conflict with our interests or those of our other shareholders, such as investing in or advising businesses that directly or indirectly compete with certain portions of our business or are suppliers or partners of ours. Our amended and restated memorandum and articles of association to be effective in connection with the closing of this offering will provide that none of Altamont Capital, any of its affiliates or any director who is not employed by us will have any duty to refrain from engaging, directly or indirectly, in the same business activities or similar business activities or lines of business in which we operate. Altamont Capital and its affiliates also may pursue acquisition opportunities that may be complementary to our business, and, as a result, those acquisition opportunities may not be available to us. In addition, Altamont Capital and its affiliates may have an interest in pursuing acquisitions, divestitures and other transactions that, in its judgment, could enhance its investment, even though such transactions might involve risks to you.

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.***

We are an exempted company incorporated under the laws of the Cayman Islands with limited liability. Our corporate affairs are governed by our memorandum and articles of association, the Cayman Islands Companies

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Act (As Revised) (the "Cayman Companies Act") and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law differ from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, some U.S. states, such as Delaware, have more prescriptive and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have the standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of the register of members of these companies. Our directors have discretion under our articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

Certain corporate governance practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other jurisdictions such as the U.S. Currently, we do not plan to rely on home country practice with respect to any corporate governance matter. However, if we choose to follow our home country practice in the future, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U.S. domestic issuers.

As a result of all of the above, public shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of the Board of Directors or controlling shareholders than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Cayman Companies Act and the laws applicable to companies incorporated in the United States and their shareholders, see "Description of Share Capital—Comparison of Cayman Islands Corporate Law and U.S. Corporate Law."

***We will incur significantly increased costs and devote substantial management time as a result of the listing of our Class A common shares.***

We will incur additional legal, accounting and other expenses as a public reporting company. For example, we will be required to comply with the additional requirements of the rules and regulations of the SEC and the listing standards of the NYSE, including applicable corporate governance practices. We expect that compliance with these requirements will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. In addition, we expect that our management and other personnel will need to divert attention from operational and other business matters to devote substantial time to these public company requirements. We cannot predict or estimate the number of additional costs we may incur as a result of becoming a public company or the timing of such costs.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidelines are provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time

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and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may also initiate legal proceedings against us and our business may be adversely affected.

***Changes in accounting practices and future pronouncements may materially affect our reported financial results.***

Developments in accounting practices may require us to incur considerable additional expenses to comply, particularly if we are required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. The impact of changes in current accounting practices and future pronouncements cannot be predicted but may affect the calculation of net income, shareholder's equity and other relevant financial statement line items.

Our U.S. insurance subsidiaries are required to comply with statutory accounting principles ("SAP"). SAP and various components of SAP are subject to constant review by the NAIC and its task forces and committees, as well as state insurance departments, in an effort to address emerging issues and otherwise improve financial reporting. Various proposals are pending before committees and task forces of the NAIC, some of which, if enacted and adopted on a state level, could have negative effects on insurance industry participants. The NAIC continuously examines existing laws and regulations. We cannot predict whether or in what form such reforms will be enacted and, if so, whether the enacted reforms will positively or negatively affect us.

***As a result of becoming a public company, we will be obligated to develop and maintain proper and effective disclosure controls and procedures and internal control over financial reporting. Our controls and procedures may not be effective, which may adversely affect investor confidence in us and, as a result, the value of our Class A common shares.***

Upon the completion of this offering, we will become subject to the periodic reporting requirements of the Exchange Act. We must design our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Any disclosure controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. We are in the early stages of the costly and intensive process of compiling the system and processing documentation necessary to perform the evaluation needed to comply with Section 404 of the Sarbanes-Oxley Act. We may not be able to complete our evaluation, testing and any required remediation in the time required. If we are unable to assert that our internal control over financial reporting is effective, we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the value of our Class A common shares to decline, and we may be subject to investigation or sanctions by the SEC.

We will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting as of the end of the fiscal year that coincides with the filing of our second annual report on Form 10-K. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. We will also be required to disclose changes made in our internal control and procedures on a quarterly basis. However, our independent registered public accounting firm will not be required to report on the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act until the later of the year following our first annual report required to be filed with the SEC, or the date we are no longer an "emerging

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growth company" as defined in the JOBS Act if we take advantage of the exemptions contained in the JOBS Act. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our controls are documented, designed or operating.

Additionally, the existence of any material weakness or significant deficiency would require management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting could also result in errors in our financial statements that could require us to restate our financial statements, cause us to fail to meet our reporting obligations and cause shareholders to lose confidence in our reported financial information, all of which could materially and adversely affect our business and share price.

***We are an "emerging growth company" and we expect to elect to comply with reduced public company reporting requirements, which could make our Class A common shares less attractive to investors.***

We are an emerging growth company, as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, among others, (1) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements, (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved and (4) the requirement to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this prospectus. We could be an emerging growth company for up to five years after the first sale of our Class A common shares pursuant to an effective registration statement under the Securities Act, which fifth anniversary will occur in 2030. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," our annual gross revenue exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we would cease to be an emerging growth company prior to the end of such five-year period. We have made certain elections with regard to the reduced disclosure obligations regarding executive compensation in this prospectus and may elect to take advantage of other reduced disclosure obligations in future filings. As a result, the information that we provide to holders of our Class A common shares may be different than you might receive from other public reporting companies in which you hold equity interests. We cannot predict if investors will find our Class A common shares less attractive as a result of reliance on these exemptions. If some investors find our Class A common shares less attractive as a result of any choice we make to reduce disclosure, there may be a less active trading market for our Class A common shares and the market price for our Class A common shares may be more volatile.

The JOBS Act also permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to avail ourselves of this extended transition period and, as a result, we will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

***We are a "controlled company" and, as a result, we are exempt from obligations to comply with certain corporate governance requirements.***

Upon the completion of this offering, investment funds affiliated with Altamont Capital will own Class B common shares, representing % of the combined voting power of our common shares outstanding after this offering (or approximately % of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). Accordingly, we will be a "controlled company" for purposes of the NYSE listing requirements. As such, we will be exempt from the

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obligation to comply with certain corporate governance requirements, including the requirements that a majority of our Board of Directors consists of independent directors, and that we have nominating and compensation committees that are each composed entirely of independent directors. These exemptions do not modify the requirement for a fully independent audit committee, which is permitted to be phased-in as follows: (1) one independent committee member at the time of our initial public offering; (2) a majority of independent committee members within 90 days of our initial public offering; and (3) all independent committee members within one year of our initial public offering. Similarly, once we are no longer a "controlled company," we must comply with the independent board committee requirements as they relate to the nominating and compensation committees, on the same phase-in schedule as set forth above, with the trigger date being the date we are no longer a "controlled company" as opposed to our initial public offering date. Additionally, we will have 12 months from the date we cease to be a "controlled company" to have a majority of independent directors on our Board of Directors. Additionally, other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

***Certain of our directors have relationships with Altamont Capital, which may cause conflicts of interest with respect to our business***.

Following this offering, two of our directors will be affiliated with Altamont Capital, our equity sponsor and an affiliate of our controlling shareholder. Our Altamont Capital directors have fiduciary duties to us and, in addition, have duties to Altamont Capital. As a result, these directors may face real or apparent conflicts of interest with respect to matters affecting both us and Altamont Capital, whose interests may be adverse to ours in some circumstances.

***You will incur immediate dilution as a result of this offering.***

If you purchase Class A common shares in this offering, you will pay more for your shares than the pro forma net tangible book value of your shares. As a result, you will incur immediate dilution of $ per share, representing the difference between the initial public offering price of $ per share and our pro forma net tangible book deficit per share as of March 31, 2025 of $. Accordingly, should we be liquidated at our book value, you would not receive the full amount of your investment. In addition, you may also experience additional dilution upon future equity issuances or the exercise of share options to purchase Class A common shares granted to our employees, consultants and directors under our equity compensation plans. See "Dilution."

***Certain judgments obtained against us by our shareholders may not be enforceable.***

We are a Cayman Islands company and a portion of our assets are located outside the United States. As a result, it may be difficult or impossible for you to bring an action against us in the United States in the event that you believe that your rights have been infringed under U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands may render you unable to enforce a judgment against our assets. We have been advised by our Cayman Islands legal counsel, Maples and Calder (Cayman) LLP, that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us judgments of courts of the United States predicated upon the civil liability provisions of the securities laws of the United States or any State; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the securities laws of the United States or any State, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be

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final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "projection," "seek," "should," "will" or "would," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Risk Exchange's prospects, its potential for expansion to new Members and offerings beyond the
specialty insurance market, as well as the future prospects of our overall business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to grow our business profitably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial strength;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of Members that we expect to retain and our membership growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to continue enhancing our technology-based solutions and gain internal efficiencies and effective
controls that promote the utility of the analytics we provide to Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage our information systems to enhance the benefits available to our Members through our
Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to continue to attract risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance of our Members and risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accurately assess and manage the underwriting risk we retain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive environment in the specialty insurance industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in government laws and regulations, including insurance regulatory laws, and how the enforcement
thereof may affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding our projected growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether we will be considered a passive foreign investment company for U.S. tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the additional regulatory, legal and operational risks that may arise in connection with our expansion into
new geographies and how such risks might materially affect our business, results of operations, financial condition, and prospects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors detailed under heading "Risk Factors" beginning on page 26.

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Given the risks and uncertainties set forth in this prospectus, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this prospectus are not guarantees of future performance and our actual results of operations, financial condition, and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this prospectus. In addition, even if our results of operations, financial condition and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this prospectus, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this prospectus speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this prospectus.

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**USE OF PROCEEDS** 

We estimate that the net proceeds to us from our sale of Class A common shares in this offering will be approximately $ million, based on the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. If the underwriters exercise in full their option to purchase additional Class A common shares, we estimate that we will receive additional net proceeds of approximately $ million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

We will not receive any of the proceeds from the sale of Class A common shares by the Selling Shareholder named in this prospectus. The Selling Shareholder will receive approximately $ million of proceeds from the offering, based on the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus (or approximately $ million if the underwriters exercise in full their option to purchase additional Class A common shares).

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds that we receive from this offering by approximately $ million, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions payable by us. Similarly, each increase or decrease of 1.0 million in the number of Class A common shares offered by us would increase or decrease, as applicable, the net proceeds that we receive from this offering by approximately $ million, assuming the assumed initial public offering price remains the same and after deducting estimated underwriting discounts and commissions payable by us.

The principal purposes of this offering are to fund the redemption of our Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, increase our capitalization and financial flexibility, create a public market for our Class A common shares, and enable access to the public equity markets for us and our shareholders. We intend to use $ of the net proceeds from this offering to fund the redemption of our Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, $ million to fund the management fee payable to an affiliate of Altamont Capital, see "Certain Relationships and Related-Party Transactions—Altamont Capital" with the remainder for general corporate purposes and to support underwriting capital needs as the business continues to grow and expand. Additionally, we may use a portion of the net proceeds to purchase products, services, or technologies, or acquire or invest in businesses. These businesses may include, but are not limited to, MGAs, insurance intermediaries, insurance companies, technology companies, and service providers in our ecosystem. We have not specifically identified any such businesses, including the seven Owned Members in which we own a call option to purchase some portion of their outstanding equity.

We cannot specify with certainty the particular uses of the net proceeds that we will receive from this offering or the amounts we actually spend on the uses set forth above. Pending the use of proceeds from this offering as described above, we plan to invest the net proceeds that we receive in this offering in short-term and intermediate-term interest-bearing obligations, investment-grade investments, certificates of deposit or direct or guaranteed obligations of the U.S. government. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds.

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**DIVIDEND POLICY** 

We do not currently pay dividends on any of our common shares and we currently intend to retain all available funds and any future earnings for use in the operation of our business. We may, however, pay cash dividends on our common shares, including our Class A common shares, in the future. Any future determination to pay dividends will be made at the discretion of our Board of Directors and will depend upon many factors, including our financial condition, earnings, legal and regulatory requirements, restrictions in our debt agreements and other factors our Board of Directors deems relevant.

Additionally, we are a holding company that transacts the majority of our business through operating subsidiaries. Consequently, our ability to pay dividends to shareholders is largely dependent on receipt of dividends and other distributions from our subsidiaries. Applicable insurance laws restrict the ability of our insurance and reinsurance company subsidiaries to declare shareholder dividends and require insurance companies to maintain specified levels of statutory capital and surplus. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance and reinsurance company subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. See "Regulation—Insurance Regulation—Restrictions on Paying Dividends."

Our ability to pay dividends may also be restricted by the terms of the Credit Agreement (as defined in "Certain Indebtedness"), or any future credit agreement or any future debt or preferred equity securities of us or our subsidiaries. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Shares—Because we do not expect to pay dividends in the foreseeable future after this offering, you must rely on price appreciation of our Class A common shares for return on your investment."

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**CAPITALIZATION** 

The following table sets forth our cash, cash equivalents and restricted cash and total capitalization as of March 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis, derived from our financial statements included elsewhere in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as adjusted basis, giving effect to the conversion of all of our outstanding Class A convertible
preference shares and Class B convertible preference shares into Class A common shares and Class B common shares (as applicable), and the Accelerant Holdings LP Distribution as if it had occurred on March 31, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as further adjusted basis, giving effect to the adjustments set forth above and the receipt of the
estimated net proceeds from our sale and issuance by us of    of our Class A common shares in this offering, at the assumed initial public offering price of $ per share, which is the midpoint of the estimated
initial offering price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us.

The as further adjusted information set forth in the table below is illustrative only and will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this table together with our consolidated financial statements and related notes, and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" that are included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Actual** | **Adjusted** | **As further**<br>**Adjusted<sup>(1)</sup>** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
|  Cash, cash equivalents and restricted cash | $1290.7 |  |  |
|  Debt | 121.5 |  |  |
|  Redeemable preference shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 66,411) | 104.4 |  |  |
|  Shareholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 250,457 and 2023: 249,582) | 236.7 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 150,231 and 2023: 149,707) | 145.1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A and Class B common shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 127.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (176.3) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (11.2) |  |  |
|  Non-controlling interests | 28.5 |  |  |
|  Total equity | 454.4 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization | $575.9 |  |  |

---

(1) Each $1.00 increase (decrease) in the assumed initial public offering price of $ per
Class A common share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, would increase (decrease) each of cash and cash equivalents, additional paid-in-capital, total equity and total capitalization on a pro forma as adjusted basis by approximately $ million, assuming that the number of Class A common shares offered by us, as
set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Each increase (decrease) of 1.0 million shares in the number of Class A
common shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) each of cash and cash equivalents, additional paid-in-capital, total equity, and total capitalization on a pro forma as adjusted basis by approximately $ million, assuming an initial public
offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and
estimated offering expenses payable by us.

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##### [**Table of Contents**](#toc)
If the underwriters' option to purchase additional Class A common shares from us were exercised in full, as further adjusted cash and cash equivalents, additional paid-in capital, total equity, total capitalization, and shares outstanding as of March 31, 2025 would be $, $, $, $ and , respectively.

The as adjusted and as further adjusted columns in the table above are based on Class A common shares (after giving effect to the conversion of all our outstanding Class A convertible preference shares and Class B convertible preference shares and the Accelerant Holdings LP Distribution) outstanding as of March 31, 2025, and excludes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A common shares issuable upon the exercise of options outstanding under our 2023 Plan as
of   , 2025, at a weighted average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares reserved for future issuance under our 2023 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares reserved for future issuance under the ESPP, which will become
effective in connection with this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares issuable upon the vesting of restricted share units granted in
connection with the consummation of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any potential redemptions of Class C convertible preference shares that were issued in December 2024
if the holders do not elect to convert such preference shares to common shares at the time of this offering.

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##### [**Table of Contents**](#toc)
**UNAUDITED PRO FORMA FINANCIAL INFORMATION** 

We have derived the unaudited pro forma financial data of Accelerant Holdings LP, our predecessor, from its financial statements for the year ended December 31, 2024 and three months ended March 31, 2025 to give effect to the pro forma adjustments related to the Accelerant Holdings LP Distribution and the conversion of all of our outstanding classes of convertible preference shares as if all such transactions had been completed as of March 31, 2025 for the balance sheet and as of January 1, 2024 for the results of operations.

We based the pro forma adjustments on available information and on assumptions that we believe are reasonable under the circumstances to reflect, on a pro forma basis, the impact of the relevant transactions on the historical financial information of Accelerant Holdings LP and Accelerant Holdings, which is a consolidated subsidiary of Accelerant Holdings LP. See the notes to unaudited pro forma financial information below for a discussion of pro forma adjustments made. The unaudited pro forma financial information does not purport to be indicative of our results of operations or financial position had the relevant transactions occurred on the dates assumed and does not project our results of operations or financial position for any future period or date.

The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of the operating results that would have occurred if this offering, the Accelerant Holdings LP Distribution and the conversion of all of our outstanding classes of convertible preference shares had been completed as of the dates set forth above, nor is it indicative of our future results. Additionally, the unaudited pro forma financial information does not give effect to the potential impact of any anticipated synergies, operating efficiencies, or cost savings that may result.

The unaudited pro forma financial information should be read together with "Capitalization" and our historical financial statements and related notes incorporated by reference in this prospectus, as well as accompanying notes to the unaudited consolidated pro forma financial statements.

**Compensation-Based Expense Upon Completion of this Offering** 

Immediately prior to the consummation of this offering, we intend to effect the Accelerant Holdings LP Distribution, pursuant to which Accelerant Holdings LP will distribute all existing common shares in the Company that it owns to the holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interest represented by those limited partnership interests. This distribution will include existing common shares of the Company to holders of vested limited partnership interests related to profits interest awards of Accelerant Holdings LP issued to executives and employees of Accelerant Holdings and existing common shares of the Company to holders of unvested limited partnership interests related to profits interest awards of Accelerant Holdings LP issued to executives and employees of Accelerant Holdings (although such shares do not represent an increase in shares as they would have otherwise been held by Altamont Capital). The existing common shares will then be re-designated into Class A common shares and Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association. In connection with this, we expect to recognize compensation expense between $ and $ at the time of the Accelerant Holdings LP Distribution for the value of the new Class A common shares and Class B common shares of the Company, assuming an offering price of $ per Class A common share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus. In each reporting period subsequent to the Accelerant Holdings LP Distribution, we expect to recognize a compensation expense equal to the value of the restricted common shares of the Company that vested and became unrestricted during each such reporting period. This compensation expense will be material to the Company's income in future periods.

Such transactions will result in compensation expenses and are not reflected in the pro forma financial information. The pro forma adjustments similarly do not include any adjustments for Class A common shares reserved for future issuance under our ESPP, which will become effective in connection with this offering.

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Balance Sheet** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(expressed in millions of U.S. dollars, except share data)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution** | **Elimination<br>of AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value | $64.2 | $— | $— | $— | $64.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value | 582.7 |  |  |  | 582.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 |  |  |  | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 |  |  |  | 47.0 |
|  **Total investments** | **702.8** | **—** | **—** | **—** | **702.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.9 | (51.8) <sup>(a)</sup> | (0.2) <sup>(c)</sup> |  | 1238.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, (net of $2.7 allowance) | 863.3 |  |  |  | 863.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 |  |  |  | 1708.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 |  |  |  | 1266.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 |  |  |  | 370.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 |  |  |  | 56.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 114.9 |  |  |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 |  |  |  | 86.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 253.4 |  | 2.2 <sup>(c)</sup> |  | 255.6 |
|  **Total assets** | $**6713.9** | $**(51.8)** | $**2.0** | $**—** | $**6664.1** |
|  **Liabilities and equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 1513.1 |  |  |  | 1513.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 |  |  |  | 1986.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 |  |  |  | 1186.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 |  |  |  | 194.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 |  |  |  | 854.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 |  |  |  | 195.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 |  |  |  | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 210.7 |  | (1.1) <sup>(c)</sup> |  | 209.6 |
|  **Total liabilities** | $**6262.6** | $**—** | $**(1.1)** | $**—** | $**6261.5** |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share, issued and outstanding of 100; amounts are recorded at liquidation preference | $51.8 | $(51.8) <sup>(a)</sup> | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant Holdings LP partners' common shares: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share (issued and outstanding of 8,491,134,079) | $110.6 | $(110.6) <sup>(b)</sup> | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share (issued and outstanding of 693,970,910) | 12.1 | (12.1) <sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant Holdings Class A, B and C common shares (par value $0.0001 per share, 2,453,320 shares issued and outstanding) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  | 122.7 <sup>(b)</sup> | (57.4) <sup>(c)</sup> | 496.3 <sup>(d)</sup> | 561.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (12.9) |  | 1.7 <sup>(c)</sup> |  | (11.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (206.7) |  | 30.4 <sup>(c)</sup> |  | (176.3) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(96.9)** | **—** | **(25.3)** | **496.3** | **374.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of Accelerant Holdings | 486.2 |  |  | (486.2) <sup>(d)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | 10.2 |  | 28.4 <sup>(c)</sup> | (10.1) <sup>(d)</sup> | 28.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **496.4** | **—** | **28.4** | **(496.3)** | **28.5** |
|  **Total equity** | **451.3** | **(51.8)** | **3.1** | **—** | **402.6** |
|  **Total liabilities and equity** | $**6713.9** | $**(51.8)** | $**2.0** | $**—** | $**6664.1** |

---

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**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Statements of Operations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(expressed in millions of U.S. dollars)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution<sup>(f)</sup>** | **Elimination of<br>AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $70.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 |  |  |  | 28.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 |  |  |  | 63.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 |  |  |  | 12.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 |  |  |  | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 1.7 |  |  |  | 1.7 |
|  **Total revenues** | **178.0** | **—** | **—** | **—** | **178.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 |  |  |  | 45.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 |  | (0.1)<sup>(e)</sup> |  | 17.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 70.0 |  |  |  | 69.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 |  |  |  | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 |  |  |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 |  |  |  | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 |  |  |  | 14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange gains | 2.9 |  | (0.2)<sup>(e)</sup> |  | 3.1 |
|  **Total expenses** | **162.4** | **—** | **0.1** | **—** | **162.5** |
|  **Income before income taxes** | **15.6** | **—** | **(0.1)** | **—** | **15.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) |  |  |  | (7.7) |
|  **Net income** | **7.9** | **—** | **(0.1)** | **—** | **7.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net income attributable to non-controlling interests | (1.3) |  |  |  | (1.3) |
|  **Net income attributable to entity** | $**6.6** | $**—** | $**(0.1)** | $**—** | $**6.5** |
|  **Net income attributable to Accelerant Holdings per Class A and B common shares\*:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | $3.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | $2.65 |
|  **Weighted-average Class A and B common shares outstanding:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | 1986221 <sup>(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | 2453396 <sup>(g)</sup> |

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Statements of Operations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(expressed in millions of U.S. dollars)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution<sup>(f)</sup>** | **Elimination of<br>AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $249.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 |  |  |  | 226.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 |  |  |  | 66.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 39.1 |  | (0.2)<sup>(e)</sup> |  | 38.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 1.9 |  |  |  | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 |  |  |  | 19.0 |
|  **Total revenues** | **602.8** | **—** | **(0.2)** | **—** | **602.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 |  |  |  | 167.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 |  |  |  | 81.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.9 |  | (0.4)<sup>(e)</sup> |  | 227.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 |  |  |  | 13.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 |  |  |  | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 |  |  |  | 26.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 |  |  |  | 47.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange gains | (4.8) |  | (0.3)<sup>(e)</sup> |  | (5.1) |
|  **Total expenses** | **571.3** | **—** | **(0.7)** | **—** | **570.6** |
|  **Income before income taxes** | **31.5** | **—** | **0.5** | **—** | **32.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) |  |  |  | (9.1) |
|  **Net income** | **22.4** | **—** | **0.5** | **—** | **22.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 |  |  |  | 4.3 |
|  **Net income attributable to entity** | $**26.7** | $**—** | $**0.5** | $**—** | $**27.2** |
|  **Net income attributable to Accelerant Holdings per Class A and B common shares\*:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | $13.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | $11.40 |
|  **Weighted-average Class A and B common shares outstanding:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | 1983795 <sup>(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | 2386353 <sup>(g)</sup> |

---

**Notes to the Unaudited Pro Forma Financial Information** 

\* The original net income attributable to Accelerant Holdings per common share is presented in Accelerant Holdings' consolidated statements of operations for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively included within our condensed consolidated interim financial statements and annual consolidated financial statements included elsewhere in this prospectus. 

(a) AHLP distribution adjustment to reflect the anticipated redemption of AHLP's Class D shares at the
time of the initial public offering.

(b) Cancellation of Accelerant Holdings LP common shares in exchange for common shares of Accelerant Holdings
following the re-designation of existing common shares following the Accelerant Holdings LP Distribution.

(c) Adjustments for Accelerant Holdings LP specific account balances that are not attributable to Accelerant
Holdings (the accumulated deficit adjustments relate to $22.2 million of accretion adjustments from redeemable preferred shares and $8.2 million of accumulated deficit since inception, which are offset within additional paid-in capital).

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(d) Conversion of Accelerant Holdings outstanding Class A convertible preference shares, Class B
convertible preference shares and Class C convertible preference shares to Accelerant Holdings common shares and warrants that will be reclassified to additional paid-in capital at the time of the initial public offering. Such shares and
warrants were previously included as non-controlling interests within the Accelerant Holdings LP financial statements as they were issued by Accelerant Holdings. The classification of all classes of our convertible preference shares is described in
Note 2 to our consolidated financial statements, which consists of the Class A and Class B convertible preference shares as permanent equity and the Class C convertible preference shares as mezzanine or temporary equity (given the
nature of both redemption and conversion features of the Class C convertible preference shares that are not available to other holders of equally or more subordinated equity instruments of the Company). We deemed the Class C convertible
preference shares probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C convertible preference shares at the date
of issuance. However, variability in the timing or pricing of the offering could result in the holders electing to redeem their shares as described in the notes to our consolidated financial statements (refer to Notes 2 and 16 to our annual
consolidated financial statements included elsewhere in this prospectus for additional information).

(e) Adjustments for specific Accelerant Holdings LP transactions that are not attributable to the operating
results of Accelerant Holdings.

(f) This pro forma adjustment does not have a statement of operations impact for the three months ended
March 31, 2025 or the year ended December 31, 2024.

(g) The pro forma basic and diluted shares were derived from the Accelerant Holdings consolidated financial
statements (amounts did not change due to minimal income adjustments from Accelerant Holdings LP in both periods). Refer to Note 12 to our condensed consolidated interim financial statements and Note 22 to our annual consolidated financial
statements included elsewhere in this prospectus for additional information.

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**DILUTION** 

If you invest in our Class A common shares in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per common share and the pro forma as adjusted net tangible book value per common share immediately after this offering. Dilution in pro forma as adjusted net tangible book value per share to new investors represents the difference between the amount per share paid by purchasers of our Class A common shares in this offering and the pro forma as adjusted net tangible book value per common share immediately after completion of this offering.

Net tangible book value per share is determined by dividing our total tangible assets less our total liabilities and redeemable convertible preference shares by the number of our common shares outstanding. Our historical net tangible book value (deficit) as of March 31, 2025, was approximately $ million, or $ per share, after giving effect to the conversion of all Class B common shares into Class A common shares. Our pro forma net tangible book value as of March 31, 2025 was $ million, or $ per share, based on the total number of our Class A common shares and Class B common shares outstanding as of March 31, 2025, and after giving effect to the Accelerant Holdings LP Distribution, as if such distribution occurred on March 31, 2025 after giving effect to the conversion of all Class B common shares into Class A common shares. Our pro forma net tangible book value as of March 31, 2025 excludes any potential redemptions of Class C convertible preference shares that were issued in December 2024 if the holders do not elect to convert such preference shares to common shares at the time of this offering.

After giving effect to the sale by us of Class A common shares and the sale by the Selling Shareholder of Class A common shares in this offering at the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, the conversion of all Class B common shares into Class A common shares, and after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of March 31, 2025, would have been $ million, or $ per share. This represents an immediate increase in pro forma as adjusted net tangible book value of $ per share of Class A common shares and $ per share of Class B common shares and an immediate dilution in pro forma as adjusted net tangible book value of $ per share to investors purchasing our Class A common shares in this offering. The following table illustrates this dilution:

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| | |
|:---|:---|
|  Assumed initial public offering price per common share | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical net tangible book value (deficit) per share as of March 31, 2025 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase per share attributable to the pro forma adjustments described above |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share as of March 31, 2025 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase per share attributable to new investors purchasing Class A common shares in this offering |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma as adjusted net tangible book value per share immediately after this offering |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilution in pro forma as adjusted net tangible book value per share to new Class A common share investors in this offering | $|

---

Each $1.00 increase (decrease) in the assumed initial offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, would increase (decrease) our pro forma as adjusted net tangible book value after this offering by approximately $ million, or $ per share, and would increase (decrease) the dilution per share to new investors purchasing our Class A common shares in this offering by $ per share, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimated offering expenses payable by us. Each

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increase (decrease) of 1.0 million shares in the number of Class A common shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) our pro forma as adjusted net tangible book value after this offering by approximately $ million, or $ per share, and would increase (decrease) the dilution per share to new investors by $ per share, assuming that the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimated offering expenses payable by us.

The following table presents, on a pro forma basis as of March 31, 2025, after giving effect to (i) the re-designation of shares following the Accelerant Holdings LP Distribution and (ii) the sale by us of Class A common shares in this offering (assuming the conversion of all Class B common shares into Class A common shares) at the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, the difference between the existing shareholders and the investors purchasing Class A common shares in this offering with respect to the number of Class A common shares purchased from us, the total consideration paid or to be paid to us, and the average price per share paid or to be paid to us, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average<br>Price Per<br>Share** |
|  | **Number** | **Percent** | **Amount** | **Percent** | |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
|  Existing Shareholders% |  |  |  |  | $|
|  New Investors |  |  |  |  |  |
|  Total |  | 100.0% |  | 100.0% |  |

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Each $1.00 increase (decrease) in the assumed initial offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, would increase (decrease) the total consideration paid by new investors, total consideration paid by all shareholders and average price per share paid by all shareholders by $, $ and $ per share, respectively, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimate offering expenses payable by us. Each increase (decrease) of 1.0 million shares in the number of shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) the total consideration paid by new investors, total consideration paid by all shareholders and average price per share paid by all shareholders by $, $ and $ per share, respectively, assuming that the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters exercise in full their option to purchase additional Class A common shares in this offering, the pro forma as adjusted net tangible book value (deficit) per share after this offering would be $ per share and the dilution to new investors in this offering would be $ per share. If the underwriters exercise such option in full, the number of shares held by new investors will increase to approximately Class A common shares, or approximately % of the total number of Class A common shares outstanding after this offering.

The number of Class A common shares and Class B common shares that will be outstanding after this offering is based on Class A common shares (after giving effect to the re-designation of shares following the Accelerant Holdings LP Distribution and assuming the conversion of all Class B common shares into Class A common shares) outstanding as of March 31, 2025, and excludes the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares issuable upon the exercise of options outstanding under our 2023
Plan as of March 31, 2025, at a weighted average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares reserved for future issuance under our 2023 Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common shares reserved for future issuance under the ESPP, which will become
effective in connection with this offering;

To the extent any options are granted and exercised in the future, there may be additional economic dilution to new investors.

In addition, we may choose to raise additional capital due to market conditions or strategic considerations, even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity, as Class A common shares, or other securities that are convertible into our Class A common shares, such as convertible debt securities, the issuance of these securities could result in further dilution to our shareholders.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis of our financial condition and our results of operations should be read in conjunction with the sections titled "Prospectus Summary — Summary Accelerant Holdings Historical Consolidated Financial Data" and "Unaudited Pro Forma Financial Information," and our consolidated annual financial statements and related notes thereto, our condensed consolidated interim financial statements and related notes thereto and other information included elsewhere in this prospectus. This management's discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections titled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" included elsewhere in this prospectus. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.* 

**Basis of Presentation** 

Accelerant Holdings LP, a Cayman Islands exempted limited partnership formed in 2018 and our current controlling parent entity, is the ultimate parent company of the Accelerant group of companies. In December 2021, we initiated a series of reorganization transactions pursuant to which our company, Accelerant Holdings, was established and became the primary holding company of the Accelerant group of companies. This reorganization has been accounted for as a transaction between entities under common control and is expected to be completed upon the distribution by Accelerant Holdings LP of of our existing common shares to holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interests represented by those limited partnership interests. This distribution will occur immediately prior to the consummation of this offering. The existing common shares will then be re-designated into Class A common shares and Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association. We refer to this distribution as the Accelerant Holdings LP Distribution. After the consummation of this offering, Accelerant Holdings LP will be dissolved.

Prior to the completion of the Accelerant Holdings LP Distribution, Accelerant Holdings LP is considered under applicable SEC rules and guidance to be our predecessor entity. Accordingly, the consolidated annual financial statements of each of Accelerant Holdings and Accelerant Holdings LP are included elsewhere in this prospectus. However, the assets and liabilities and operating results of Accelerant Holdings LP are insignificant in relation to the financial statements of Accelerant Holdings and as such, the financial information referenced within this prospectus, including that presented in this section, is that of Accelerant Holdings unless otherwise specified.

**Overview of Accelerant** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk

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Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

***Our Members ("Supply Side" of the Risk Exchange)***

We view the Members sourcing and underwriting policies as the "supply side" of our Risk Exchange. The vast majority of our Members are independent third parties, in which Accelerant has no ownership stake. We refer to these Members as "Independent Members." Each Independent Member enters into a long-term contract with Accelerant where it agrees to underwrite certain types of policies through the Risk Exchange. Generally, these contracts are five years in duration and subject to annual renewal, with Accelerant retaining a right to terminate early for performance reasons. For a large majority of the gross written premium produced by Independent Members, Accelerant has an exclusive arrangement to write such policy types with the Independent Member. Additionally, Accelerant has the right of first refusal to offer new products an Independent Member may launch on the Risk Exchange.

The remaining Members consist of "Owned Members" and "Mission Members." Owned Members are Members in which we either have a minority ownership interest or controlling equity interest. Typically, our investments in Owned Members take the form of an initial minority ownership interest and a contractual call option for a controlling equity ownership interest over time. In all but two instances, these investments took place within 40 weeks after an MGA had been a Member on the platform. Mission Members are Members started within Mission Underwriters, our MGA incubation platform. With Mission Underwriters, we support entrepreneurial specialty underwriters with start-up capital and operational tools and resources to form their own MGAs that are then jointly owned by Mission Underwriters and the specialty underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team's knowledge of the specialty insurance markets, which includes reliance on certain historical metrics (such as loss ratios) from their underwriting track records at reputable incumbent institutions and, generally, prospective Mission Underwriters' reputations among the industry, leveraging our experience and tenure in the space. Such knowledge includes an awareness of high-quality underwriters in these markets. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. While our ongoing recruitment efforts will continue to be important as we grow, we do not currently expect any associated recruitment costs to increase materially over time. Mission Underwriters owns the majority of the MGAs that it helped to create, with meaningful equity shared with management teams based on the performance of their MGA.

The gross premium written by Independent Members and placed through the Risk Exchange is referred to as "Independent Premium." The gross premium written by Mission Members and Owned Members and placed through the Risk Exchange is referred to as "Owned Premium." Historically, Independent Premium has comprised the large majority of Exchange Written Premium, and we expect this trend to continue over time.

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**Members and Exchange Written Premium Detail** 

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2024** | **March 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** | **December 31, 2022** | **December 31, 2022** |
| ***($ in millions)*** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of<br>Members** | **Exchange**<br>**Written<br>Premium** |
|  Independent Members | 185 | $713.9 | 126 | $413.9 | 170 | $2180.4 | 114 | $1146.3 | 70 | $803.7 |
|  Mission Members | 31 | 173.9 | 27 | 81.1 | 30 | 530.5 | 25 | 311.6 | 15 | 191.1 |
|  Owned Members | 16 | 97.4 | 17 | 88.8 | 17 | 397.5 | 16 | 329.4 | 16 | 205.9 |
|  **Total**  | **232** | $**985.2** | **170** | $**583.8** | **217** | $**3108.4** | **155** | $**1787.3** | **101** | $**1200.7** |

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***Our Risk Capital Partners ("Demand Side" of the Risk Exchange)***

We view our risk capital partners, who appoint Accelerant to source, monitor, and manage portfolios of insurance policies supplied by Members on their behalf, as the "demand" side of our Risk Exchange. Currently, our risk capital partners include third-party insurance companies, reinsurance companies, and institutional investors. As of March 31, 2025, 13 Risk Exchange Insurers accessed gross premium written directly from the Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 19% of the premium written on the Risk Exchange for the three months ended March 31, 2025.

We refer to gross premium written directly on behalf of Risk Exchange Insurers as "Third-Party Direct Written Premium." All premiums written by Accelerant Underwriting, including that which is ultimately reinsured to institutional investors and third-party reinsurers, is referred to as "Accelerant GWP." We expect the premium placed with Risk Exchange Insurers will increase in coming years and as a result, the contribution from Third-Party Direct Written Premium will continue to increase. This will lead to less overall revenue growth in our Underwriting segment, but more direct commission income within our Exchange Services segment. The business mix shift should lead to higher and more consistent consolidated profitability margins. We believe that the indicators of financial success across the platform will continue to be Exchange Written Premium growth and consolidated profitability.

For Accelerant Underwriting, we have historically targeted reinsuring approximately 90% of its gross premium written to institutional investors and third-party reinsurers, with Accelerant retaining approximately 10% of the risk associated with these gross premiums written, which we believe is a strategic asset and demonstrates alignment with our risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

***Our Business Model***

We operate our business across three reportable segments – Exchange Services, which is the core offering of Accelerant, as well as MGA Operations and Underwriting. Exchange Services and MGA Operations are both fee-based businesses. Underwriting captures the net ceding commission income from reinsurers and Flywheel Re and net underwriting profit from retained business that is written or assumed by Accelerant Underwriting companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Services: The Exchange Services segment includes the revenue and expenses associated with our Risk
Exchange. It consists of the Risk Exchange, our operating platform that incorporates all of our technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. Risk capital partners writing premiums
directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing and monitoring the business they write, which is netted by the amount the Risk Exchange pays in
performance-based commissions to Members.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MGA Operations: MGA Operations includes results from Mission Members and Owned Members. This segment reports
all revenue and expenses from Mission Members as well as Owned Members in which we have ownership positions large enough to be consolidated and equity method income for those in which we have a minority equity ownership interest. The largest
component of the segment is our investment in the 31 Mission Members as of March 31, 2025, which operate in the U.S., UK, and EEA. This segment also includes 16 Owned Members as of March 31, 2025, of which, nine are majority-owned and
controlled by us and therefore consolidated in our financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriting: Our Underwriting segment includes all revenue and expenses associated with our Accelerant
Underwriting companies (each of which solely operates through the Risk Exchange) and reinsurance company. We view the Underwriting segment as a strategic asset and source of operational flexibility that we use to align incentives with current and
prospective risk capital partners. Our Accelerant Underwriting companies earn premiums and pay losses from business sourced and retained through the Risk Exchange. Our Accelerant Underwriting companies pay commissions to the Risk Exchange as
consideration to access this business on market-consistent terms with Risk Exchange Insurers. This is offset by the ceding commission we receive from several third-party reinsurers including Flywheel Re, a reinsurance sidecar, for ceding premium and
losses to them. The performance of our Underwriting segment will vary with the performance of the portfolio reinsured to third-party risk capital partners. We expect the portion of Risk Exchange premium underwritten by Accelerant Underwriting
companies to decrease over time, relative to other segments, as Risk Exchange Insurers increase in number and grow their premium written through our Risk Exchange.

A high-level view of our business model is included below (based on activity for the trailing twelve months ended March 31, 2025):

![LOGO](g543111g08k08.jpg)

<sup>(1)</sup> Calculated as Exchange Services segment direct commission income divided by Exchange Written Premium.

<sup>(2)</sup> Calculated as MGA Operations segment direct commission income, net investment income ($4.4 million) and net realized gains on investments ($3.3 million) divided by Exchange Written Premium attributable to Mission Members and Owned Members. 

(3) Calculated as net earned premium and the amortization of deferred excess ceding commission income, reduced by
net losses and the amortization of DAC, plus net investment income and net realized gains and net unrealized gains (losses) on investments expressed as a percentage of total Underwriting gross earned premium, excluding operating expenses.

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**Key Factors that Could Affect Our Performance** 

***Ability to Maintain and Grow Our Member Base***

We believe there is a significant opportunity to attract new Members to the Risk Exchange and grow our existing Members. This is impacted by our ability to continue to deliver a holistic and compelling value proposition. We believe that existing and prospective Members will continue to be drawn to the Risk Exchange, and the growth of Members facilitated by our strong Member-centric service model, high value-add data and analytics capabilities, and ability to provide stable multi-year capacity.

***Access to Third-Party Capital Providers to Support Members***

Our future revenue growth also depends, in part, on our ability to expand our relationships with new and existing third-party capital providers to meet the growth of gross premiums sourced by our Members. We believe that the low-hazard, low-limit specialty business that we source from our Members will continue to attract these third-party risk capital partners. Since 2019, we have grown our risk capital partners from two to 96 as of March 31, 2025. As of March 31, 2025, we had 13 Risk Exchange Insurers, many of whom continue to express interest in increasing their allocations and outpacing the premium volume exchanged on our platform.

***Sourcing a Portfolio with Sustainable Loss Ratios*** 

Our ability to maintain the support of risk capital partners depends, in part, on maintaining an attractive ratio of gross premiums to gross losses and gross commissions that risk capital partners pay to the Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the gross loss ratios of 53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively. We intend to leverage our data and analytics capability and our team of expert underwriters to continue to produce a portfolio with increasing diversification and attractive risk/return characteristics for our risk capital partners.

***Investing in Technology Platform Capabilities*** 

We continue to invest in our Risk Exchange to add capabilities and enhance the overall user experience of Risk Exchange participants and deepen our analytical and underwriting insights. Our ability to successfully attract high-quality specialty underwriters and risk capital depends on our ability to continue to develop value from our technology platform. We may choose to increase our level of investment in technology from past levels to enhance the platform capabilities and our competitive position. We believe that our ability to deliver platform capabilities that our Risk Exchange participants perceive as unique will continue in the future.

***Compensation-Based Expense Upon Completion of this Offering*** 

Immediately prior to the consummation of this offering, we intend to effect the Accelerant Holdings LP Distribution, pursuant to which Accelerant Holdings LP will distribute all existing common shares in the Company that it owns to the holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interest represented by those limited partnership interests. This distribution will include existing common shares of the Company to holders of vested limited partnership interests related to profits interest awards of Accelerant Holdings LP issued to executives and employees of Accelerant Holdings and existing common shares of the Company to holders of unvested limited partnership interests related to profits interest awards of Accelerant Holdings LP issued to executives and employees of Accelerant Holdings. The existing common shares will then be re-designated into Class A common shares and Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association. In connection with this, we expect to recognize compensation expense between $ and $ at the time of the Accelerant Holdings LP Distribution for the value of the new Class A common shares and Class B common shares of the Company, assuming an offering price of $ per Class A common share, which is the midpoint of the estimated initial

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offering price range set forth on the cover page of this prospectus. In each reporting period subsequent to the Accelerant Holdings LP Distribution, we expect to recognize a compensation expense equal to the value of the restricted common shares of the Company that vested and became unrestricted during each such reporting period. This compensation expense will be material to the Company's income in future periods.

***Costs of Being a Public Company*** 

To operate as a public company, we will be required to continue to implement changes in certain aspects of our business and develop, manage, and train employees to comply with ongoing public company requirements. We will also incur new expenses as a public company, including public reporting obligations, proxy statements, stockholder meetings, stock exchange fees, transfer agent fees, SEC and FINRA filing fees and offering expenses. These expenses will have the effect of reducing our profit.

**Key Components of Our Results of Operations** 

**Revenue** 

***Ceding commission income***

We cede a significant portion of the premiums written on behalf of Accelerant Underwriting companies to third-party reinsurance companies or institutional investors through Flywheel Re. This generates positive ceding commissions which are recorded as a reimbursement for (and reduction of) the acquisition costs related to the reinsurance portion of the ceded insurance business. Ceding commissions that are in excess of the proportionate share of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of this excess ceding commission income is recorded as "Ceding commission income" in the consolidated statements of operations within revenue. Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts, which can result in the need for us to refund previous commissions received, resulting in a reduction of income in the determined period. These adjustments often occur well after the ceding commissions are earned based on the development of insurance liabilities. In such instances, commission adjustments are not subject to deferral and are instead recorded directly as income or loss when determined. Accordingly, in all cases, we adjust ceding commissions as of the reporting date for our best estimate of loss experience for reinsured insurance policies.

***Direct commission income***

Accounting treatment of direct commissions received in the Exchange Services and the MGA Operations segments depend on whether the direct commission is being paid on an intercompany basis or by a third party.

Direct commissions paid by one Accelerant entity to another (referred to as "intercompany basis") are required to be eliminated in consolidation pursuant to generally accepted accounting principles. These include fees paid by Accelerant Underwriting companies to the Risk Exchange, as well as commissions paid by the Risk Exchange to Mission Members and/or to Owned Members. These intercompany direct commissions are recognized under "Direct commission income" in our consolidated statements of operations under the segment to which they relate, and are fully recognized by the segment when the services and related performance obligations are completed.

While these intercompany basis commissions are all eliminated on a consolidated basis, we nevertheless derive a significant economic benefit from these commissions. Unlike third parties, which bear the costs of the services performed by the Risk Exchange in the form of cash payments, we do not bear the cost of such services once fully eliminated, resulting in less commission amortization expense over the insurance policy term. This has the practical effect of increasing consolidated earnings as the corresponding premiums are earned. Direct commission income paid by third parties in the Exchange Services or MGA Operations segments are fully recognized in the current

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period under "Direct commission income" in the statement of operations, to the extent that the underlying services and performance obligations to which they relate have been performed. As more business is written by Risk Exchange Insurers, we expect a higher proportion of direct commission income to be recognized on a consolidated basis (instead of being subject to elimination on an intercompany business basis, as discussed above).

***Net earned premiums***

Net earned premiums represent the earned portion of gross written premiums ("GWP") sourced from Accelerant Underwriting companies, less the portion of our GWP that is ceded to third-party reinsurers under our quota share and excess of loss reinsurance agreements. Premiums are earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

***Net investment income***

Net investment income represents interest earned from fixed maturity securities, short-term securities and other investments. Dividends on equity securities and other investments are also included in net investment income. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in net investment income, net of investment management and custody fees. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio.

We have certain unconsolidated investments within our MGA Operations segment and we account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments within net investment income, or the measurement alternative accounted for at fair value based on observable price changes or impairment. Any decline in value of equity method investments considered by management to be other than temporary is charged to income in the period in which it is determined.

***Net realized and unrealized gains (losses) on investments***

Our equity securities primarily consist of interests in investment funds that primarily invest in debt securities. The equity securities are measured at fair value with changes in fair value recognized in net realized and unrealized gains (losses) on investments. Realized gains and losses on disposition of investments are based on specific identification of investments sold.

We hold other investments such as limited partnership and private equity investments in operating entities whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investments from the same issuer occur with changes in fair value recognized in net unrealized gains on investments.

**Expenses** 

***Losses and loss adjustment expenses***

The reserves for losses and loss adjustment expenses ("LAE") include estimates for unpaid claims and claim expenses on reported losses as well as estimates of losses incurred but not reported ("IBNR"). These reserves represent our best estimates of the unpaid portion of ultimate costs of all reported and unreported losses incurred through the balance sheet date, and these estimates are based upon the assumption that past developments are an appropriate indicator of future events, among other factors. The reserves are based on individual claims, case reserves and other estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses are estimates and may vary

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materially from the amounts provided in the consolidated financial statements. These estimates are reviewed regularly. As experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and are accounted for as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

***Amortization of deferred acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. These costs principally consist of commissions, fees, brokerage, premium tax expenses, and direct agency costs. The amounts presented within the consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies we issue, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from our reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs, if any, are expensed in the period identified.

***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred. Generally, we expect our distribution, underwriting, and claims operating expenses to be most closely tied to growth of our membership and Risk Exchange premium volume. However, these and other functions within the Risk Exchange and our other segments have large, fixed-cost components that we believe will increase operating leverage as gross premiums continue to grow.

***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology. Our costs have been significant as we have focused on the development of our technology. We expect that our technology and development costs will continue to increase for at least the next several years as we continue to dedicate substantial investment to the development of technologies facilitating our Risk Exchange.

During the three months ended March 31, 2025, we invested $6.5 million in our Risk Exchange-specific technology and development, including $3.5 million of capitalized costs. Once a software development project has reached the application development stage, certain internal, external, direct and indirect costs are subject to capitalization. Generally, costs are capitalized until the technology is available for its intended use. Subsequent costs incurred for the development of future upgrades and enhancements, which are expected to result in additional functionality, are also subject to capitalization.

***Interest expenses***

Interest expenses primarily relate to amounts paid on the Company's debt financing obligations, including amortized debt issuance costs.

***Depreciation and amortization***

Depreciation and amortization expenses primarily relate to amortization of capitalized technology development costs, as well as amortization of intangible assets associated with acquisitions of businesses (including investments in Owned Members).

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***Other expenses***

Other expenses represent costs related to our non-core business operations primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities, including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

***Income tax expense***

The provision for income tax consists of current and deferred tax expense. The calculation of current and deferred tax expense is based on tax rates and tax laws which have been enacted in the reporting period. Deferred tax assets and liabilities, result from temporary differences between the amounts recorded in the consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

As of March 31, 2025, we had net deferred tax assets of $45.1 million and also apply full valuation allowances to certain of our deferred tax assets of unutilized net operating losses ("NOLs") and outside basis differences in partnership investments. The NOLs and outside basis differences predominantly arose from start-up losses on certain operating locations that drove significant taxable losses in the early stages of operations for which profitability has yet to be established.

**Key Operating and Financial Metrics** 

We regularly review key operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare financial projections and make strategic decisions. Our key operating and financial metrics include operational, GAAP and non-GAAP financial measures which are useful in evaluating our performance and our GAAP financial results discussed below.

As further discussed in "—Segment Information—Consolidation and Elimination Adjustments" our consolidated results are subject to consolidation and elimination adjustments with respect to transactions among the businesses within our segments, notably between the Risk Exchange and Accelerant-owned insurance companies. We view the Adjusted EBITDA generated by our segments as representative of the economics that each would generate if they were independent companies and if the intersegment transactions were with third parties.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**March 31,** | **Three Months**<br>**Ended**<br>**March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Number of members | 232 | 170 | 217 | 155 | 101 |
|  Number of MGA Operations members | 47 | 44 | 47 | 41 | 31 |
|  Net revenue retention | 157% | 130% | 153% | 133% | 173% |
|  Exchange written premium<sup>(2)</sup> | $985.2 | $583.8 | $3108.4 | $1787.3 | $1200.7 |
|  Accelerant direct written premium<sup>(2)</sup> | 81% | 91% | 84% | 90% | 100% |
|  Third-party direct written premium<sup>(2)</sup> | 19% | 9% | 16% | 10% | —% |
|  Accelerant-retained exchange premium<sup>(2)</sup> | 8% | 11% | 8% | 11% | 15% |
|  Total revenues | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Revenue growth rate | 39% | 77% | 75% | 57% | 118% |
|  Non-GAAP financial measures<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA<sup>(1)</sup> | $42.8 | $27.5 | $113.0 | $36.1 | $(39.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA margin<sup>(1)</sup> | 24% | 21% | 19% | 10% | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organic revenue growth rate<sup>(1)</sup> | 38% | 77% | 75% | 57% | 113% |

---

(1) Refer to "—Reconciliation of Non-GAAP financial
measures" section for details on how non-GAAP measures are defined and reconciled to GAAP measures.

(2) See the definitions of Exchange Written Premium, Accelerant Direct Written Premium, Third-Party Direct
Written Premium, and Accelerant-Retained Exchange Premium below for explanation of calculations and metrics.

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***Number of Members***

We define the number of Members as those under contract with our Risk Exchange as of the period end date. We view the number of Members as an important metric to assess our financial performance because Member growth drives our revenue from fees, commissions, and net retained premiums; expands brand awareness and our market penetration; and generates additional data to continue to attract more risk capital and accelerate the compounding momentum of our platform.

As of March 31, 2025, we had 232 Members. These Members wrote $985.2 million of Exchange Written Premium for the three months ended March 31, 2025. Of our 232 Members, 31 are Mission Members, 16 are Owned Members, and 185 are Independent Members. Of the $985.2 million in Exchange Written Premium for the three months ended March 31, 2025, 81% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 19% was written by our 13 Risk Exchange Insurers as Third-Party Direct Written Premium. Accelerant Underwriting historically reinsures approximately 90% of Accelerant GWP to third-party reinsurers, including approximately 27% to Flywheel Re, a reinsurance sidecar.

***Number of MGA Operations Members***

We define the number of MGA Operations members as the number of Mission Members and Owned Members under contract with the Risk Exchange as of the period end date.

***Net Revenue Retention***

We define Net Revenue Retention, expressed as a percentage, as the current period's Exchange Written Premium for Members that were actively writing Exchange Written Premium in the comparable period divided by these same Members' prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium from previously onboarded Members.

***Exchange Written Premium***

We define Exchange Written Premium as the total GWP written through the Accelerant Risk Exchange, including both gross premiums written on behalf of Accelerant Underwriting companies and written directly on behalf of Risk Exchange Insurers.

***Accelerant Direct Written Premium***

We define Accelerant Direct Written Premium, expressed as a percentage of Exchange Written Premium, as the GWP written directly by Accelerant Underwriting companies, the majority of which we cede directly to third-party risk capital partners through our reinsurance arrangements.

***Third-Party Direct Written Premium***

We define Third-Party Direct Written Premium, expressed as a percentage of Exchange Written Premium, as the GWP written directly with our Risk Exchange Insurers.

***Accelerant-Retained Exchange Premium***

We define Accelerant-Retained Exchange Premium, expressed as a percentage, as Accelerant GWP net of ceded written premium for the trailing twelve month period, divided by total Exchange Written Premium for the trailing twelve month period. This represents the percentage of total Exchange Written Premium that Accelerant-owned insurance companies retain. We expect Accelerant-Retained Exchange Premium to decrease over time as Third-party Direct Written Premium increases.

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Accelerant Underwriting reinsured 92% of Accelerant GWP to third-party reinsurers during the three months ended March 31, 2025, consistent with our historical reinsurance targets. Approximately 27% of our Accelerant GWP was ceded to Flywheel Re, a reinsurance sidecar, during the three months ended March 31, 2025.

***Total Revenues***

Total revenues consist of the following items: Ceding commission income; Direct commission income; Net earned premiums; Net investment income; Net realized gains (losses) on investments and Net unrealized gains on investments.

**Reconciliation of Non-GAAP financial measures** 

***Adjusted EBITDA and Adjusted Net Income (Loss)***

Adjusted EBITDA and Adjusted Net Income (Loss) are non-GAAP measures, which we believe should be used to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance. Adjusted EBITDA and Adjusted Net Income (Loss) are internal performance measures used in the management of our operations. We believe that disclosing Adjusted EBITDA and Adjusted Net Income (Loss) enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our underlying business performance. Adjusted EBITDA and Adjusted Net Income (Loss) should not be used as substitutes for net income (loss), and other companies may define Adjusted EBITDA and Adjusted Net Income (Loss) differently than we do.

We define Adjusted EBITDA as GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other expenses: Represents costs related to our non-core business operations primarily related to our global
enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital
raising activities and entity formations that support our growing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net foreign currency exchange gains (losses): The functional currency for each of our operating subsidiaries
is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency, and the resulting foreign exchange gains or losses are
reflected in net foreign currency exchange gains (losses).

We define Adjusted Net Income (Loss) as GAAP net income (loss) less the impact of other expenses and the tax effect of the adjustments for other expenses.

***Adjusted EBITDA Margin***

We define Adjusted EBITDA Margin, a non-GAAP financial measure, as Adjusted EBITDA divided by total revenue. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations.

Adjusted EBITDA and Adjusted EBITDA Margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to GAAP net income or net (loss) as indicators of our financial performance. Although we use Adjusted EBITDA and Adjusted EBITDA Margin as financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of Adjusted

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EBITDA and Adjusted EBITDA Margin should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of our most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.

The following table provides a reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Net income (loss) | $7.8 | $2.1 | $22.9 | $(64.1) | $(95.6) |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses <sup>(1)</sup> | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments to net income (loss) <sup>(2)</sup> | (0.8) | (0.9) | (3.6) | (5.1) | (3.0) |
|  **Adjusted net income (loss)** | **21.2** | **9.8** | **66.7** | **(18.1)** | **(65.0)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back tax effect of adjustments to net income (loss) | 0.8 | 0.9 | 3.6 | 5.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 7.7 | 9.9 | 9.1 | 20.2 | 11.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Adjusted EBITDA** | $**42.8** | $**27.5** | $**113.0** | $**36.1** | $**(39.3)** |
|  Total revenues | 178.0 | 128.1 | 602.6 | 344.0 | 219.0 |
|  **Adjusted EBITDA Margin** | **24%** | **21%** | **19%** | **10%** | **(18)%** |

---

<sup>(1)</sup> Other expenses for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022 consisted of the following:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  System development non-operating costs | $4.6 | $2.7 | $14.7 | $22.9 | $11.4 |
|  Professional costs related to corporate development activities | 3.6 | 2.6 | 13.1 | 16.2 | 5.6 |
|  Share-based compensation | 2.4 | 2.2 | 8.4 | 4.8 |  |
|  Mission profits interests expense | 1.6 |  | 7.0 |  |  |
|  Securities issuance costs related to potential securities offering |  |  |  |  | 8.7 |
|  Flywheel Re formation costs |  |  |  |  | 4.8 |
|  Individually insignificant costs | 2.0 | 1.1 | 4.2 | 7.2 | 3.1 |
|  **Total other expenses** | $**14.2** | $**8.6** | $**47.4** | $**51.1** | $**33.6** |

---

<sup>(2)</sup> The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year. 

We provide a reference to Adjusted EBITDA for the trailing twelve months ended March 31, 2025 herein. The GAAP to non-GAAP reconciliation for this period can be derived using amounts presented above for the year ended December 31, 2024 less amounts reported for the three months ended March 31, 2024 to arrive at the

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nine months ended December 31, 2024, which can be added to the results for the three months ended March 31, 2025 to arrive at the trailing twelve months ended March 31, 2025.

***Organic Revenue Growth Rate***

We define organic revenue growth rate, a non-GAAP financial measure, as the percentage change in revenue, as compared to the same period for the prior year, adjusted for revenue attributable to recent acquisitions of Owned Members that we now consolidate that occurred during the most recent period of comparison. We believe this measure is useful to management and investors in evaluating the internally generated growth of the business based on our ability to attract new Members and grow the business of existing Members.

The following table provides a reconciliation of total revenue to Organic Revenue Growth Rate for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended March 31,** | **Three Months**<br>**Ended March 31,** | **Years Ended** <br>**December 31,** | **Years Ended** <br>**December 31,** | **Years Ended** <br>**December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Total revenue | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Less: Revenue from consolidated Owned Members acquired during the period | (1.0) |  | (0.8) |  | (4.9) |
|  Organic revenue | $177.0 | $128.1 | $601.8 | $344.0 | $214.1 |
|  Total revenue growth rate <sup>(1)(2)</sup> | 39% | 77% | 75% | 57% | 118% |
|  **Organic revenue growth rate** <sup>(1)(2)</sup> | **38%** | **77%** | **75%** | **57%** | **113%** |

---

(1) Total revenue growth rate and Organic Revenue Growth Rate for the year ended December 31, 2022 was calculated
using GAAP revenue for the year ended December 31, 2021 of $100.6 million.

(2) Revenues of $0.8 million for the year ended December 31, 2023 related to the legacy business of our
Canadian insurer, which we acquired in the fourth quarter of 2023, are included in this calculation as they do not relate to the acquisition of Owned Members.

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**Condensed Consolidated Results of Operations** 

The following tables reflect our consolidated results of operations and compare the three months ended March 31, 2025 to 2024, the year ended December 31, 2024 to 2023 and the year ended December 31, 2023 to 2022, respectively, in the format that Accelerant's management team uses to analyze our financial performance. This information is derived from our consolidated financial statements prepared in accordance with GAAP and included elsewhere in this prospectus.

**Comparison of the Three Months Ended March 31, 2025 and 2024** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
|  **Total expenses** | **162.5** | **116.1** |
|  **Income before income taxes** | **15.5** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.8** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for: Net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant** | $**6.5** | $**7.1** |

---

**<u>Comparison of the Three Months Ended March 31, 2025 and 2024</u>**

***Ceding Commission Income***

Ceding commission income of $70.7 million for the three months ended March 31, 2025 increased $5.7 million from the three months ended March 31, 2024 due to the growth in the premium base and amounts ceded to reinsurers, partially offset by changes in the mix of premiums we ceded to reinsurers by geography resulting in lower average ceding commission income. Ceding commission income for the three months ended March 31, 2024 included a reduction of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There were no net sliding scale commission adjustments recognized during the three months ended March 31, 2025.

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The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commissions to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | **$194.6** | $**128.0** |

---

The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $28.1 million for the three months ended March 31, 2025 increased $16.5 million compared to the three months ended March 31, 2024 primarily due to commissions from third-party Risk Exchange business and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities during the three months ended March 31, 2025.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $874.0 million for the three months ended March 31, 2025 increased by $322.9 million from the three months ended March 31, 2024 primarily due to new and existing Member growth. Since March 31, 2024, we have added 62 new Members, bringing the total number of Members to 232 as of March 31, 2025. This Member growth was driven by our continued expansion across the U.S., Europe and Canada markets.

Net written premium of $72.4 million for the three months ended March 31, 2025 increased by $16.8 million from the three months ended March 31, 2024 as a result of GWP growth. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as Risk Exchange insurers continue to increase in number and grow their retention.

Net earned premium of $63.0 million for the three months ended March 31, 2025 increased by $19.0 million from the three months ended March 31, 2024 as a result of the increased net written premium described above.

The table below shows the amount of premium written on a gross and net basis, as well as earned premium for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross written premiums | $874.0 | $551.1 |
|  Ceded written premiums | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Net earned premiums** | $**63.0** | $**44.0** |

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***Net Investment Income***

Net investment income of $12.2 million for the three months ended March 31, 2025 increased $4.3 million compared to the three months ended March 31, 2024 primarily due to the significant increase in total average investments when comparing the periods. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Net Realized Gains On Investments***

Net realized gains on investments of $2.3 million increased $1.9 million compared to the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments were $1.7 million for the three months ended March 31, 2025 compared to net unrealized losses of $0.8 million for the three months ended March 31, 2024. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Loss and Loss Adjustment Expenses***

Net loss and LAE of $45.2 million increased $16.5 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 due to the increase in our net earned premium base from $44.0 million to $63.0 million for the three months ended March 31, 2025 as compared to 2024. Gross incurred losses and LAE increased $148.1 million or 63%, while ceded losses and LAE increased $131.6 million or 64% under our external reinsurance program. Our net loss ratio differs from the gross loss ratio (53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses.

During the three months ended March 31, 2025, we recorded net incurred catastrophe losses and LAE of approximately $2.0 million related to a series of wildfires in Southern California which took place in January 2025 and impacted our property book of business. These losses were approximately $40.0 million before ceded losses and LAE to our quota share and excess of loss reinsurance treaties of approximately $38.0 million.

See "—Segment Information—Comparison of the Three Months Ended March 31, 2025 and 2024—Underwriting" below for further information regarding our loss and loss adjustment expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross incurred loss and LAE | $382.8 | $234.7 |
|  Ceded incurred loss and LAE | (337.6) | (206.0) |
|  **Net incurred loss and LAE** | $**45.2** | $**28.7** |
|  **Net loss ratio** | **71.7%** | **65.2%** |

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***Amortization of Deferred Acquisition Costs***

Amortization of deferred acquisition costs of $17.1 million for the three months ended March 31, 2025 decreased by $5.7 million compared to the three months ended March 31, 2024 due to the amortization of DAC from the decrease in our retention rate of net earned premium, as well as acquisition costs as a percentage of premiums. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation losses |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

---

***General and Administrative Expenses***

General and administrative expenses of $69.9 million increased by $23.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 due to our continued expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount to support our growth across all markets. Other administrative expenses increased year-over-year primarily due to information technology support services, advertising and marketing costs, and travel-related expenses.

The following table presents the components of general and administrative expenses:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended<br>March 31,** | **Three Months<br>Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Employee compensation and benefits | $49.0 | $38.2 |
|  Consulting and professional fees | 13.3 | 9.3 |
|  Other administrative expenses (adjustments), net | 7.6 | (1.0) |
|  **Total general and administrative expenses** | **$69.9** | $**46.5** |

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***Technology and Development Operating Expenses***

Technology and development operating expenses of $3.0 million increased $0.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 as we continued to invest in the technology and development of our Risk Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $2.6 million decreased $0.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily driven by a decrease in interest rates.

***Depreciation & Amortization***

Depreciation and amortization expenses of $7.4 million increased $2.5 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to increased amortization of a larger balance of capitalized information technology development costs.

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***Other Expenses***

Other expenses of $14.2 million increased $5.6 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily related to an increase of $1.9 million in system development non-operating expenses, including certain costs associated with supporting the development of accounting and financial reporting systems and Mission's policy administration system, an increase of $1.6 million of Mission profit interests expense, an increase of $1.0 million in professional costs related to corporate development activities, an increase of $0.3 million in share-based compensation expense, and an increase of $0.8 million in individually insignificant costs.

***Net Foreign Exchange Losses (Gains)***

Net foreign exchange losses were $3.1 million for the three months ended March 31, 2025 compared to net foreign exchange gains of $1.0 million for the three months ended March 31, 2024. The year-over-year change was primarily driven by fluctuations in the British Pound to U.S. Dollar exchange rate that impacted certain of our loss and LAE reserves denominated in British Pounds which were held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $7.7 million decreased $2.2 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, while the consolidated effective tax rates ("ETRs") were 49.7% and 82.5%, respectively. However, the comparability of our tax expense and ETRs is often challenged due to the mix of taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain U.S. subsidiaries under the U.S.-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses, income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate ("ETR") for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the U.S., UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

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The composition of our ETRs among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total ETR, were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2024** | **Three Months Ended<br>March 31, 2024** | **Three Months Ended<br>March 31, 2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(34.0) | $15.5 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.7%** | **27.8%** | **—** | **82.5%** |

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**Comparison of the Years Ended December 31, 2024 and 2023** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 38.9 | 19.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 |
|  **Total revenues** | **602.6** | **344.0** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.5 | 169.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses  | (5.1) | 3.5 |
|  **Total expenses** | **570.6** | **387.9** |
|  **Income (loss) before income taxes** | **32.0** | **(43.9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) |
|  **Net income (loss)** | **22.9** | **(64.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to non-controlling interests | 4.3 | 15.3 |
|  **Net income (loss) attributable to Accelerant** | $**27.2** | $**(48.8)** |

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***Ceding Commission Income***

Ceding commission income of $249.5 million for the year ended December 31, 2024 increased $85.3 million from the prior year as we continued to grow our premium base and the amount ceded to reinsurers. Ceding commission income for the years ended December 31, 2024 and 2023 included reductions of $15.5 million and $19.1 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Balance as of January 1, | $120.4 | $84.5 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 |
|  Amortization of deferred excess ceding commission to income | (249.5) | (164.2) |
|  Foreign currency translation | 3.4 | (2.6) |
|  **Balance as of December 31,** | $**193.0** | $**120.4** |

---

The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $66.7 million for the year ended December 31, 2024 increased $29.1 million compared to the prior year primarily due to commissions from third-party Risk Exchange business and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities during the year ended December 31, 2024.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $2.91 billion for the year ended December 31, 2024 increased by $1.21 billion from the prior year primarily due to new and existing Member growth. Since December 31, 2023, we have added 62 new Members, bringing the total number of Members to 217 as of December 31, 2024. This Member growth was driven by our continued expansion within the U.S. market, maintenance of our Member growth in Europe, and our recent expansion into Canada.

Net written premium of $254.6 million for the year ended December 31, 2024 increased by $63.7 million from the prior year as a result of GWP growth. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as third-party insurance companies, writing directly on the Risk Exchange on a primary basis, continue to increase in number and grow their retention.

Net earned premium of $226.6 million for the year ended December 31, 2024 increased by $121.5 million from the prior year as a result of the increased net written premium described above.

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The table below shows the amount of premium written on a gross and net basis, as well as earned premium for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Gross written premiums | $2906.3 | $1697.8 |
|  Ceded written premiums | (2651.7) | (1506.9) |
|  **Net written premiums** | $**254.6** | $**190.9** |
|  **Net earned premiums** | $**226.6** | $**105.1** |

---

***Net Investment Income***

Net investment income of $38.9 million for the year ended December 31, 2024 increased $19.6 million compared to the prior year primarily due to the significant increase in investments. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Realized Gains On Investments***

Net realized gains on investments of $1.9 million increased $1.4 million compared to the year ended December 31, 2024 as compared to 2023. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments of $19.0 million increased $1.7 million compared to the year ended December 31, 2024 as compared to 2023. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Losses and Loss Adjustment Expenses***

Net loss and LAE of $167.3 million increased $87.0 million for the year ended December 31, 2024 as compared to the prior year due to the increase in our net earned premium base from $105.1 million to $226.6 million for the years ended December 31, 2024 and 2023, respectively. Gross incurred losses and LAE increased $534.9 million or 79%, while ceded losses and LAE increased $447.9 million or 75% under our external reinsurance program. Our net loss ratio differs from the gross loss ratio (54.3% and 51.3% for the years ended December 31, 2024 and 2023, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. See "—Segment Information—Comparison of the Years Ended December 31, 2024 and 2023—Underwriting" below for further information regarding our loss and loss adjustment expenses for the year ended December 31, 2024 compared to the prior year.

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Gross incurred loss and LAE | $1212.1 | $677.2 |
|  Ceded incurred loss and LAE | (1044.8) | (596.9) |
|  **Net incurred loss and LAE** | $**167.3** | $**80.3** |
|  **Net loss ratio** | **73.8%** | **76.4%** |

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***Amortization of Deferred Acquisition Costs***

Amortization of deferred acquisition costs of $81.4 million for the year ended December 31, 2024 increased by $31.5 million compared to the prior year due to the amortization of DAC from the increase in net earned premium. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Balance as of January 1, | $53.0 | $26.6 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) |
|  Foreign currency translation losses | (0.4) | 0.7 |
|  **Balance as of December 31,** | $**60.7** | $**53.0** |

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***General and Administrative Expenses***

General and administrative expenses of $227.5 million increased by $58.3 million for the year ended December 31, 2024 as compared to the prior year due to our continued expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount to support our growth across all markets, while consulting, professional and other expenses also increased at a rate notably less than our overall increase in premium and revenue growth.

The following table presents the components of general and administrative expenses:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2023** |
|  Employee compensation and benefits | $157.0 | $118.9 |
|  Consulting and professional fees | 42.4 | 29.8 |
|  Other administrative expenses (adjustments), net | 28.1 | 20.5 |
|  **Total general and administrative expenses** | $**227.5** | $**169.2** |

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***Technology and Development Operating Expenses***

Technology and development operating expenses of $13.4 million increased $4.9 million for the year ended December 31, 2024 as compared to the prior year as we continued to invest in the technology and development of our Risk Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $12.1 million increased $1.2 million for the year ended December 31, 2024 as a result of higher interest rates compared to the prior year.

***Depreciation and Amortization***

Depreciation and amortization expenses of $26.6 million increased $12.1 million for the year ended December 31, 2024 as compared to the prior year primarily due to increased amortization of capitalized information technology development costs.

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***Other Expenses***

Other expenses of $47.4 million decreased $3.7 million for the year ended December 31, 2024 as compared to the prior year, primarily related to a decrease of $8.2 million in system development non-operating expenses, including certain costs associated with supporting the development and implementation of accounting and financial reporting systems, a decrease of $3.1 million in professional costs related to corporate development activities, and a decrease of $3.0 million in individually insignificant costs, partially offset by an increase of $7.0 million of Mission profit interests expense and an increase of $3.6 million in share-based compensation expense.

***Net Foreign Exchange (Gains) Losses***

Net foreign exchange gains were $5.1 million for the year ended December 31, 2024 compared to the net foreign exchange losses of $3.5 million for the year ended December 31, 2023. The experience for the year ended December 31, 2024 was primarily driven by a reduction in certain of our loss and LAE reserves denominated in British Pounds, while the experience for the year ended December 31, 2023 was primarily driven by foreign exchange losses on our Euro-denominated debt facility, which was held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $9.1 million decreased $11.1 million for the year ended December 31, 2024 as compared to the prior year, while the consolidated ETRs were 28.4% and (46.0)%, respectively. However, the comparability of our tax expense and ETRs is often challenged due to the mix of taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions. In addition, tax expense and ETRs in 2024 were impacted to a lesser extent by valuation allowance adjustments during the year.

During 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations.

The relationship of our income tax expense to our pre-tax income (loss) is atypical because our taxable income has predominately been generated in the U.S., UK and Ireland resulting in income tax expense in those jurisdictions (which we refer to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (we refer to entities in these two types of jurisdictions as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

As noted in the table below, and especially for the year ended December 31, 2023, the ETR for the tax paying entities generally appears normal, while the aggregate or total tax ETR appears unusual because of the losses that do not receive offsetting tax benefits. The taxes in 2024 for the tax paying entities were also impacted by a tax benefit of $14.6 million that was recorded to reflect the adjustment of certain valuation allowances in the

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UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. There were several other items impacting the ETRs in both periods (refer to the ETR reconciliation included in Note 10 to our consolidated annual financial statements for additional information).

Our ETR were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.3) | $32.0 | $90.3 | $(134.2) | $(43.9) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) |
|  **Effective tax rate** | **6.4%** | **—** | **28.4%** | **22.4%** | **—** | **(46.0)%** |

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**Comparison of the Years Ended December 31, 2023 and 2022** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 17.3 | 0.3 |
|  **Total revenues** | **344.0** | **219.0** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | 3.5 | 1.4 |
|  **Total expenses** | **387.9** | **303.3** |
|  **Loss before income taxes** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (20.2) | (11.3) |
|  **Net loss** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to non-controlling interests | 15.3 | 3.9 |
|  **Net loss attributable to Accelerant** | $**(48.8)** | $**(91.7)** |

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***Ceding Commission Income***

Ceding commission income of $164.2 million for the year ended December 31, 2023 increased $119.9 million from the prior year as we continued to grow our premium base while decreasing the amount of business we retained in 2023, as noted below in our discussion of Net Earned Premium. Ceding commission income for the year ended 2023 and 2022 included reductions of $19.1 million and $29.0 million for net sliding scale adjustments resulting from the loss experience of covered insurance contracts for commissions previously received on business written in prior periods.

The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Balance as of January 1, | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (164.2) | (44.3) |
|  Foreign currency translation | (2.6) |  |
|  **Balance as of December 31,** | $**120.4** | $**84.5** |

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The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $37.6 million for the year ended December 31, 2023 increased $3.1 million compared to the prior year primarily due to commissions from third-party Risk Exchange business and increased volume in our MGA Operations segment on business written with unaffiliated entities during the year ended December 31, 2023. Direct commission income for 2023 also included $4.8 million of negative commission income adjustments related to the effect of sliding scale commissions from adverse development on legacy run-off business written in 2020 and 2019 as compared to favorable sliding scale commission adjustments from the same business of $5.9 million in 2022.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is included below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $1.70 billion for the year ended December 31, 2023 increased by $498.0 million from the prior year primarily due to new and existing Member growth. We added 54 new Members during 2023, bringing the total number of Members to 155 as of December 31, 2023. This Member growth was driven by our continued expansion within the U.S. market, maintenance of our Member growth in Europe, and expansion into Canada in the fourth quarter of 2023.

Net written premium of $190.9 million for the year ended December 31, 2023 increased by $4.9 million from the prior year. This result was primarily due to lowering our Accelerant-Retained Exchange Premium, calculated as the ratio of net written premium to Exchange Written Premium, to 11% for the year ended December 31, 2023, as compared to 15% in the prior year, as a result of our expansion of limits in our quota share reinsurance programs, as well as our purchase of increased excess of loss reinsurance in 2023 to further limit our loss exposures.

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Net earned premium of $105.1 million for the year ended December 31, 2023 decreased by $36.1 million from the prior year due to the effect of a reinsurance endorsement executed during the fourth quarter of 2023. During the year ended December 31, 2023, we and certain of our reinsurers agreed to an endorsement of quota share agreements covering the 2020 and 2021 treaty years that increased the gross written premium caps that had previously been exceeded during the year ended December 31, 2022. These reinsurers increased their participation on existing reinsurance treaties in exchange for additional ceded premium. Excluding the year-over-year effect of this endorsement, our net earned premium increased consistent with the growth in net written premium for the year ended December 31, 2023 as compared to the prior year.

The table below shows the amount of premium written on a gross and net basis of Accelerant Underwriting, as well as earned premium for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Years Ended**<br>**December 31,** | **Years Ended**<br>**December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Gross written premiums | $1697.8 | $1199.8 |
|  Ceded written premiums | (1506.9) | (1013.8) |
|  **Net written premiums** | $**190.9** | $**186.0** |
|  **Net earned premiums** | $**105.1** | $**141.2** |

---

***Net Investment Income***

Net investment income of $19.3 million for the year ended December 31, 2023 increased $16.7 million compared to the year ended December 31, 2022 due to the significant increase in total average investments. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Realized Gains (Losses) On Investments***

Net realized gains (losses) on investments of $0.5 million decreased $4.4 million compared to the year ended December 31, 2022. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments of $17.3 million increased $17.0 million compared to the year ended December 31, 2022. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Losses and Loss Adjustment Expenses***

Net loss and LAE decreased $19.2 million for the year ended December 31, 2023 as compared to the prior year primarily due to the reduction in our net earned premium base to $105.1 million from $141.2 million for the years ended December 31, 2023 and 2022, respectively. Net incurred losses and LAE for the year ended December 31, 2023 also included a partially offsetting $4.8 million gain from a reinsurance commutation transaction. Gross incurred losses and LAE increased $245.4 million or 57%, while ceded losses and LAE increased $264.6 million or 80% given our targeted increase in the use of external reinsurance. Our net loss ratio differs from the gross loss ratio (51.3% and 55.5% for the years ended December 31, 2023 and 2022, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. See "—Segment Information—Comparison of the Years Ended December 31, 2023 and 2022—Underwriting" below for further information regarding our loss and loss adjustment expenses for the year ended December 31, 2023 compared to the prior year.

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In December 2023, we entered into a loss portfolio transfer ("LPT") reinsurance contract that provides retroactive reinsurance protection for our retained insurance exposure prior to June 2022, including reserves we reassumed in a contemporaneous commutation agreement. This presented us with an opportunity to pursue an LPT at attractive terms that significantly reduces our exposure on those historical reserves. We determined that the LPT does not transfer significant insurance risk and therefore requires deposit accounting. Refer to "— Reinsurance" section for additional details on this transaction.

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Gross incurred loss and LAE | $677.2 | $431.8 |
|  Ceded incurred loss and LAE | (596.9) | (332.3) |
|  **Net incurred loss and LAE** | $**80.3** | $**99.5** |
|  **Net loss ratio**  | **76.4%** | **70.5%** |

---

***Amortization of Deferred Acquisition Costs***

Amortization of DAC of $49.9 million for the year ended December 31, 2023 increased by $14.9 million compared to the same period in the prior year due to the amortization of DAC from higher prior year retained business partially being offset by lower retained business in the current year. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Balance as of January 1, | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (49.9) | (35.0) |
|  Foreign currency translation | 0.7 |  |
|  **Balance as of December 31,** | $**53.0** | $**26.6** |

---

***General and Administrative Expenses***

General and administrative expenses of $169.2 million increased by $53.6 million for the year ended December 31, 2023 as compared to the prior year due to our continued U.S. market expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount and continued investments to support Mission's growth, as well as other costs associated with supporting our maturation and continued growth, including consulting and professional fees.

The following table presents the components of general and administrative expenses:

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Employee compensation and benefits | $118.9 | $93.2 |
|  Consulting and professional fees | 29.8 | 16.6 |
|  Other expenses | 20.5 | 5.8 |
|  **Total general and administrative expenses** | $**169.2** | $**115.6** |

---

***Technology and Development Operating Expenses***

Technology and development operating expenses of $8.5 million increased $0.3 million for the year ended December 31, 2023 as compared to the prior year as we invested in the technology and development of our Risk

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##### [**Table of Contents**](#toc)
Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "— Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $10.9 million increased $6.7 million for the year ended December 31, 2023 as a result of an increase in average debt outstanding during 2023 as compared to 2022, which included a $20 million further drawdown under the debt facility during 2023.

***Depreciation and Amortization***

Depreciation and amortization expenses of $14.5 million increased $8.7 million for the year ended December 31, 2023 as compared to the prior year primarily due to an increase of $8.4 million of amortization of capitalized information technology development costs.

***Other Expenses***

Other expenses of $51.1 million increased $17.5 million for the year ended December 31, 2023 as compared to the prior year, primarily related to an increase of $11.5 million in system development non-operating costs, including certain Risk Exchange costs and costs associated with supporting the development and implementation of accounting and financial reporting systems, an increase of $10.6 million in professional costs related to corporate development activities, an increase of $4.8 million in share-based compensation expense, and an increase of $4.1 million in individually insignificant costs. These increases were partially offset by the absence of the 2022 expense of $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when we suspended our efforts due to adverse equity market conditions in 2022 and $4.8 million of corporate development costs related to the formation of Flywheel Re.

***Net Foreign Exchange Losses***

Net foreign exchange losses were $3.5 million and $1.4 million for the years ended December 31, 2023 and 2022. The experience for the year ended December 31, 2023 was primarily driven by foreign exchange losses on our Euro-denominated debt facility, while the experience for the year ended December 31, 2022 was primarily driven by foreign exchange losses related to revaluation of certain portfolios denominated in British Pounds, partially offset by foreign exchange gains on our Euro-denominated debt facility, which was held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $20.2 million increased $8.9 million for the year ended December 31, 2023 as compared to the prior year, while the consolidated ETRs were (46.0)% and (13.4)%, respectively. The incurrence of the tax expense despite our consolidated pre-tax net loss for the years ended December 31, 2023 and 2022 is a result of our mix of taxable income in certain jurisdictions (which we refer to as "tax-paying entities") and losses in others that are subject to zero-tax rates or full valuation allowances (which we refer to as "tax-paying entities"). As noted in the table below, the ETR for the tax paying entities appears normal, while the aggregate or total ETR appears unusual due to the effects of the losses that do not receive offsetting tax benefits. There were several other items impacting the ETRs in both periods (refer to the ETR reconciliation included in Note 10 to our consolidated annual financial statements for additional information).

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Our ETRs were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities <sup>(1)</sup>** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities <sup>(1)</sup>** | **Total** |
|  Income (loss) before income taxes | $90.3 | $(134.2) | $(43.9) | $47.9 | $(132.2) | $(84.3) |
|  Income tax expense | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.4)%** |

---

(1) Consists of our corporate and reinsurance entities based in the Cayman Islands, where there is no corporate
income tax rate, as well as other jurisdictions in which we have generated losses for which tax benefits are not recorded.

**Segment Information** 

We have three reportable segments, which align to the nature of the services we offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Exchange Services* –** Our Exchange Services segment includes the fees paid by Risk
Exchange Insurers and Accelerant Underwriting for sourcing, managing and monitoring the portfolio of business written by Members reduced by the expenses associated with providing these services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***MGA Operations* –** Our MGA Operations segment includes the fees earned by Mission
Members and Owned Members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing those services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Underwriting* –** Our Underwriting segment includes the revenue from net earned
premium, investment income and the ceding commission paid to us by our third-party reinsurers and institutional investors, reduced by net incurred losses, the amortization of DAC and the general and administrative costs of operating our insurance
and reinsurance companies.

Corporate functions, including holding company expenses, are included in Corporate and Other and our consolidation and eliminations adjustments for intersegment activity are shown separately from our reportable segments.

We consider the segment presentations of our Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate our business and how these business components would be presented if they were standalone operations. Such presentation is also representative of the results that would be generated from third parties as we build additional third-party insurance relationships through our Risk Exchange.

The following includes the financial results of our three reportable segments for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
|  Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses<sup>(2)</sup> <sup>(3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.5 | (8.1) | 69.9 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.1)** | $**(23.2)** | $**42.8** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.1) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.5** |

---

(1) Corporate and Other includes shared services and other activities, which represent business activities that
do not meet the definition of a reportable segment.

(2) General and administrative expenses is comprised of employee compensation and benefits, consulting and
professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

---

(3) The consolidation and elimination adjustments for general and administrative expenses consist of expenses
attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination
adjustments.

(4) Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development
non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and<br>Other<sup>(1)</sup>** | **Consolidation**<br>**and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $29.8 | $29.8 | $— | $35.2 | $65.0 |
|  Direct commission income |  |  |  |  |  |  |  |
|  Affiliated entities | 36.5 | 20.5 |  | 57.0 |  | (57.0) |  |
|  Unaffiliated entities | 5.0 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44.0 | 44.0 |  |  | 44.0 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and<br>Other<sup>(1)</sup>** | **Consolidation**<br>**and<br>elimination<br>adjustments** | **Total** |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3)</sup> <sup>(4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

(1) Corporate and Other includes shared services and other activities, which represent business activities that
do not meet the definition of a reportable segment.

(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based
on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8 to our interim condensed consolidated financial statements.

(3) General and administrative expenses is comprised of employee compensation and benefits, consulting and
professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses
attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination
adjustments.

(5) Other expenses for the three months ended March 31, 2024 consists of $2.7 million of system development
non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation, and $1.1 million of individually insignificant costs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income<sup>(2)</sup> | $— | $— | $82.0 | $82.0 | $— | $167.5 | $249.5 |
|  Direct commission income Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1 |  | 38.9 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.7** | **(131.6)** | **602.6** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses<sup>(3)</sup><sup>(4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.5 | (56.7) | 227.5 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(15.8)** | $**(52.1)** | $**113.0** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 5.1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**32.0** |

---

(1) Corporate and Other includes shared services and other activities, which represent business activities that
do not meet the definition of a reportable segment.

(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based
on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9 to our consolidated annual financial statements.

(3) General and administrative expenses is comprised of employee compensation and benefits, consulting and
professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

---

(4) The consolidation and elimination adjustments for general and administrative expenses consist of i)
$30.8 million of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services
provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments.

(5) Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense, and
$4.2 million of individually insignificant costs.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income<sup>(2)</sup> | $— | $— | $78.4 | $78.4 | $— | $85.8 | $164.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses<sup>(3)</sup><sup>(4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

---

(1) Corporate and Other includes shared services and other activities, which represent business activities that
do not meet the definition of a reportable segment.

(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based
on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9 to our consolidated annual financial statements.

(3) General and administrative expenses is comprised of employee compensation and benefits, consulting and
professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses
attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination
adjustments.

(5) Other expenses consist of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant
costs.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income<sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net earned premiums | *—* |  | 141.2 | 141.2 |  |  | 141.2 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses<sup>(3)(4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 12.9 | (15.1) | 115.6 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.4)**  | $**(31.6)** | $**(39.3)** |
|  Interest expenses |  |  |  |  |  |  | (4.2) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (33.6) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.4) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**<br>(84.3** **)** |

---

(1) Corporate and Other includes shared services and other activities, which represent business activities that
do not meet the definition of a reportable segment.

(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based
on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9 to our consolidated annual financial statements.

(3) General and administrative expenses is comprised of employee compensation and benefits, consulting and
professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses
attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination
adjustments.

(5) Other expenses consist of $11.4 million of system development non-operating costs, $8.7 million of
previously deferred costs related to a potential securities issuance that were expensed when we suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development
activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other individually insignificant costs.

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**<sup>\*</sup>Non-GAAP financial measures** 

The following table provides a consolidated summary of our consolidated financial statement results including net income (loss) to Adjusted EBITDA, including the impacts of the consolidation and elimination adjustments, for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022. The nature of transactions among the businesses within our segments has been extensive, notably those between our Risk Exchange and Accelerant-owned insurance companies as we have scaled our business model and look to attract third party insurers to our Risk Exchange and growing network of Members. We therefore view the Adjusted EBITDA generated by our segments as representative of the economics that each would generate if they were independent companies and if the intersegment transactions were with third parties.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 2.3 | 0.4 | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **178.0** | **128.1** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **162.5** | **116.1** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **15.5** | **12.0** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | $**7.8** | $**2.1** | $**22.9** | $**(64.1)** | $**(95.6)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses <sup>(1)</sup> | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments to net income (loss) <sup>(2)</sup> | (0.8) | (0.9) | (3.6) | (5.1) | (3.0) |
|  **Adjusted net income (loss)** | **21.2** | **9.8** | **66.7** | **(18.1)** | **(65.0)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back tax effect of adjustments to net income (loss) | 0.8 | 0.9 | 3.6 | 5.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 7.7 | 9.9 | 9.1 | 20.2 | 11.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Adjusted EBITDA** | $**42.8** | $**27.5** | $**113.0** | $**36.1** | $**(39.3)** |

---

(1) Other expenses for the three months ended March 31, 2025 and 2024 and for the years ended
December 31, 2024, 2023 and 2022 consisted of the following:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  System development non-operating costs | $4.6 | $2.7 | $14.7 | $22.9 | $11.4 |
|  Professional costs related to corporate development activities | 3.6 | 2.6 | 13.1 | 16.2 | 5.6 |
|  Share-based compensation | 2.4 | 2.2 | 8.4 | 4.8 |  |
|  Mission profit interests expense | 1.6 |  | 7.0 |  |  |
|  Securities issuance costs related to potential securities offering |  |  |  |  | 8.7 |
|  Flywheel Re formation costs |  |  |  |  | 4.8 |
|  Individually insignificant costs | 2.0 | 1.1 | 4.2 | 7.2 | 3.1 |
|  **Total other expenses** | $**14.2** | $**8.6** | $**47.4** | $**51.1** | $**33.6** |

---

(2) The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated
using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have
applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year.

**Comparison of the Three Months Ended March 31, 2025 and 2024** 

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 84% and 88% of the segment's direct commission income for the three months ended March 31, 2025 and 2024, respectively.

Exchange Services revenue grew by $29.2 million to $70.8 million or 70% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. This growth is attributable to direct commission income and was driven by an increase in Members from 170 to 232 and Net Revenue Retention of 157% by continuing Members that drove Exchange Written Premium to $985.2 million for the three months ended March 31, 2025 from $583.8 million for the three months ended March 31, 2024. Third-Party Direct Written Premium from our 13 Risk Exchange Insurers comprised 19% of the total Exchange Written Premium for the three months ended March 31, 2025 compared to 9% for the three months ended March 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $22.5 million of the year-over-year growth in revenue.

Combined general and administrative and technology and development operating expenses for the segment increased to $23.8 million the three months ended March 31, 2025 from $14.3 million for the three months ended March 31, 2024, largely driven by the expansion and scaling to support the growth of the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $47.0 million grew $19.7 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, as higher Exchange Written Premium volumes (an increase of $401.4 million or 69%) at stable underlying margins were partially offset by higher year-over-year Member profit commission accruals, along with the increase in expenses noted above.

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The Adjusted EBITDA margin for the segment for the three months ended March 31, 2025 of 66% was flat compared to the three months ended March 31, 2024 as a result of the increased revenues being offset by the cost of investments we are making in our Risk Exchange capabilities.

***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 65% and 76% of the segment's direct commission income for the three months ended March 31, 2025 and 2024, respectively.

MGA Operations revenue grew by $23.5 million to $51.3 million for the three months ended March 31, 2025, resulting from a $21.3 million increase in direct commission income. The increase in direct commission income was driven primarily by Net Revenue Retention of 139% during the period for Mission Members and Owned Members. As of March 31, 2025, we had 47 total Members in MGA Operations consisting of 16 Owned Members and 31 Mission Members. This was an increase of three Members from March 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. Revenue for the three months ended March 31, 2025 includes $2.0 million in net realized gains on investments related to the valuation of one of our Owned Members, which was previously one of our equity method investments, upon acquiring a controlling interest in the Owned Member during the three months ended March 31, 2025.

The Adjusted EBITDA margin for the segment increased to 39% for the three months ended March 31, 2025 (from 11% in the prior period) due to an increase in direct commission income, partially offset by an increase in general and administrative expenses as the segment continues to scale its operations.

MGA Operations Adjusted EBITDA of $20.1 million increased by $17.0 million for the three months ended March 31, 2025, due to a $21.3 million increase in direct commission income, which included an $18.7 million increase from Mission Underwriters, as well as an increase from our Owned Members of $2.5 million primarily due to organic growth, and an increase of $2.0 million in net realized gains on investments, partially offset by a $6.5 million increase in general and administrative expenses. The increase in general and administrative expenses was driven by the continued investment in Mission Underwriters which contributed $4.4 million of the year-over-year increase, primarily due to investments in newly acquired owned MGAs.

***Underwriting***

The Underwriting segment revenues of $92.5 million for the three months ended March 31, 2025 grew by 15%, from $80.5 million for the three months ended March 31, 2024. Net earned premium of $63.0 million for the three months ended March 31, 2025 increased by $19.0 million from $44.0 million for the three months ended March 31, 2024 due to our gross written premium growth during the three months ended March 31, 2025. Revenues also benefited from a $2.9 million increase in net investment income due to year-over-year growth in average investment portfolio size and a $0.6 million increase in net unrealized gains on investments. Ceding commission income decreased by $10.6 million over the comparative period as ceding commission income for the three months ended March 31, 2024 due to changes in the mix of premiums we ceded to reinsurers by geography resulting in lower average ceding commission income.

The gross loss ratio on the gross premiums earned was 53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 71.7% and 65.2%, for the three months ended March 31, 2025 and 2024, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which

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inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

During the three months ended March 31, 2025, we recorded net catastrophe losses and LAE of $2.0 million related to the January 2025 wildfires in Southern California. These losses were $40.0 million before ceded losses and LAE to our quota share and excess of loss reinsurance treaties of $38.0 million.

The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss &<br>Other** | **Net** |
|  Earned premium | $718.8 | $(620.4) | $(35.4) | $63.0 |
|  Losses and loss adjustment expenses | 382.8 | (327.2) | (10.4) | 45.2 |
|  **Loss ratio** | **53.3%** | **52.7%** | **29.4%** | **71.7%** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss &<br>Other** | **Net** |
|  Earned premium | $450.7 | $(388.9) | $(17.8) | $44.0 |
|  Losses and loss adjustment expenses | 234.7 | (205.8) | (0.2) | 28.7 |
|  **Loss ratio** | **52.1%** | **52.9%** | **1.1%** | **65.2%** |

---

Adjusted EBITDA for the Underwriting segment of $11.0 million for the three months ended March 31, 2025 increased $3.9 million as compared to Adjusted EBITDA of $7.1 million for the three months ended March 31, 2024. The increase in Adjusted EBITDA was driven by the aforementioned increase in revenue and decrease in operating expenses of $4.0 million due to improved operating leverage as the segment continues to reach operational maturity, partially offset by the impact of the California wildfires.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies. Adjusted EBITDA loss from Corporate and Other of $12.1 million for the three months ended March 31, 2025 increased by $8.6 million as compared to the three months ended March 31, 2024 primarily due to increased costs to support the growth of the business, as partially offset by aggregate realized investment gain and investment income of $2.4 million.

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our Accelerant-owned insurance companies within our Underwriting segment accounted for the majority of our Exchange Written Premium during the three months ended March 31, 2025 and 2024 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these

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entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, thereby lowering our expense base.

The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the three months ended March 31, 2025 and 2024.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $90.5 million and $57.0 million for the three months ended March 31, 2025 and 2024, respectively, were eliminated, reflected by a corresponding offsetting entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of deferred acquisition costs. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the deferred acquisition costs for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated deferred acquisition costs. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $51.5 million and $35.2 million for the three months ended March 31, 2025 and 2024, respectively) and lowered amortization of deferred acquisition costs (adjustments to decrease amortization expense by $7.7 million and $6.4 million for the three months ended March 31, 2025 and 2024, respectively).

*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $8.1 million and $8.9 million for the three months ended March 31, 2025 and 2024, respectively.

**Comparison of the Years Ended December 31, 2024 and 2023**

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 90% and 88% of the segment's direct commission income for the years ended December 31, 2024 and 2023, respectively.

Exchange Services revenue grew by $99.4 million to $222.7 million or 81% for the year ended December 31, 2024 as compared to 2023. This growth is attributable to direct commission income and was driven by an increase in Members from 155 to 217 and Net Revenue Retention of 153% by continuing Members that drove

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Exchange Written Premium to $3.11 billion for the year ended December 31, 2024 from $1.79 billion for the year ended December 31, 2023. Third-Party Direct Written Premium from our 13 Risk Exchange Insurers comprised 16% of the total Exchange Written Premium for the year ended December 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $92.0 million of the year-over-year growth in revenue.

Expenses for the segment increased to $65.0 million the year ended December 31, 2024 from $36.2 million for the year ended December 31, 2023, largely driven by the expansion and year-over-year scaling to support the growth of the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $157.7 million grew $70.6 million for the year ended December 31, 2024 as compared to 2023, as higher Exchange Written Premium volumes (an increase of $1.32 billion or 74%) at improved underlying margins primarily due to our increased Third-Party Direct Written Premium were partially offset by higher year-over-year Member profit commission accruals, along with the increase in general and administrative expenses noted above.

The Adjusted EBITDA margin of 71% for the segment for the year ended December 31, 2024 was flat compared to prior year as a result of the increased revenues being offset by the cost of investments we are making in our Risk Exchange capabilities.

***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 69% and 77% of the segment's direct commission income for the years ended December 31, 2024 and 2023, respectively.

MGA Operations revenue grew by $37.6 million to $149.7 million for the year ended December 31, 2024, resulting from a $44.2 million increase relating to direct commission income, offset by a decrease in investment returns, which is net investment income and net realized and unrealized gains on investments, of $6.6 million primarily related to a net realized gain recognized in the prior year. The increase in direct commission income was driven primarily by strong Net Revenue Retention of 130% during the period for Mission Members and Owned Members. As of December 31, 2024, we had 47 total Members in MGA Operations consisting of 17 Owned Members and 30 Mission Members. This was an increase of six Members from December 31, 2023. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied.

The Adjusted EBITDA margin for the segment increased to 29% for the year ended December 31, 2024 (from 28% in the prior period) due to an increase in direct commission income, partially offset by an increase in general and administrative expenses as the segment continues to scale its operations. On average, we expect our Mission Members to be profitable in 18 months from the date of becoming a Member.

MGA Operations Adjusted EBITDA of $44.1 million increased by $12.6 million for the year ended December 31, 2024, due to a $44.2 million increase in direct commission income, which included a $10.9 million

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increase from our Owned Members due to organic growth, as well as growth in Mission Underwriters, which contributed $33.3 million to the increase in direct commission income, partially offset by a $25.0 million increase in general and administrative expenses as well as a decrease in investment returns of $6.6 million. The increase in general and administrative expenses was driven by the continued investment in Mission Underwriters which contributed $20.2 million of the year-over-year increase, primarily due to investments in newly acquired owned MGAs.

***Underwriting***

The Underwriting segment revenues of $341.1 million for the year ended December 31, 2024 grew by 69%, from $201.3 million for 2023. Net earned premium of $226.6 million for the year ended December 31, 2024 increased by $121.5 million from $105.1 million for 2023 due to our gross written premium growth during the year ended December 31, 2024. This overall premium growth had an associated positive impact on ceding commission income which increased $3.6 million over the comparative period. The remaining increase in revenue related to a $20.5 million increase in net investment income due to year-over-year improvements in market conditions and larger portfolio size, partially offset by a $5.9 million negative variance in net unrealized gains on investments.

The gross loss ratio on the gross premiums earned was 54.3% and 51.3% for the years ended December 31, 2024 and 2023, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 73.8% and 76.4%, for the years ended December 31, 2024 and 2023, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Gross** | **Ceded - Quota**<br>**Share** | **Ceded -<br>Excess of Loss**<br>**& Other** | **Net** |
|  Earned premium | $2231.6 | $(1916.3) | $(88.7) | $226.6 |
|  Losses and loss adjustment expenses | 1212.1 | (1022.8) | (22.0) | 167.3 |
|  **Loss ratio** | **54.3%** | **53.4%** | **24.8**<br> **%** | **73.8%** |

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss<br>& Other** | **Net** |
|  Earned premium | $1319.4 | $(1149.7) | $(64.6) | $105.1 |
|  Losses and loss adjustment expenses | 677.2 | (589.3) | (7.6) | 80.3 |
|  **Loss ratio** | **51.3%** | **51.3%** | **11.8%** | **76.4%** |

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Adjusted EBITDA loss for the Underwriting segment of $20.9 million for the year ended December 31, 2024 increased $17.5 million as compared to an Adjusted EBITDA loss of $3.4 million for 2023. The increase in Adjusted EBITDA loss is driven by updated loss estimates and development and the related negative impact to sliding scale commissions primarily relating to EU and UK liability risks for the 2022 underwriting year for members that have either been discontinued or are now subject to significant responsive underwriting actions, as well as increased general and administrative expenses due to scaling of operations to support growth across our

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business model. Partially offsetting this decline was a $14.7 million improvement in investment returns driven by year-over-year market outperformance.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies.

Adjusted EBITDA loss from Corporate and Other of $15.8 million for the year ended December 31, 2024 decreased by $9.8 million as compared to 2023 primarily due to investment gains related to our combined investments in the equity and warrants of an emerging technology enabled third-party administrator (that also provides services to certain of our Members).

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our Accelerant-owned insurance companies within our Underwriting segment accounted for the majority of our Exchange Written Premium during the years ended December 31, 2024 and 2023 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, thereby lowering our expense base.

The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the years ended December 31, 2024 and 2023.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $299.1 million and $184.6 million for the years ended December 31, 2024 and 2023, respectively, were eliminated, reflected by a corresponding offsetting entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of deferred acquisition costs. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the deferred acquisition costs for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated deferred acquisition costs. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $167.5 million and $85.8 million for the years ended December 31, 2024 and 2023, respectively) and lowered amortization of deferred acquisition costs (adjustments to decrease amortization expense by $22.8 million and $18.5 million for the years ended December 31, 2024 and 2023, respectively).

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*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $56.7 million and $26.8 million for the years ended December 31, 2024 and 2023, respectively.

**Comparison of the Years Ended December 31, 2023 and 2022** 

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 88% and 83% of the segment's direct commission income for the years ended December 31, 2023 and 2022, respectively.

Exchange Services revenue grew by $21.4 million to $123.3 million or 21% for the year ended December 31, 2023 as compared to the prior year. This growth is mostly attributable to direct commission income and was driven by an increase in Members from 101 to 155 and Net Revenue Retention of 133% by continuing Members that drove Exchange Written Premium to $1.79 billion for the year ended December 31, 2023 from $1.20 billion for the year ended December 31, 2022. Third-Party Direct Written Premium from our five Risk Exchange Insurers comprised 10% of the total Exchange Written Premium for the year ended December 31, 2023. Direct commission income for 2023 also included $4.8 million of negative commission income adjustments related to the effect of sliding scale commissions from adverse development on legacy run-off business written in 2020 and 2019 as compared to favorable sliding scale commission adjustments from the same business of $5.9 million in 2022. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $23.3 million of the year-over-year growth in revenue.

General and administrative expenses for the segment increased to $27.7 million for the year ended December 31, 2023 from $18.1 million for the year ended December 31, 2022, largely driven by the expansion and year-over-year scaling to support the growth in the U.S. market and across the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $87.1 million grew $11.5 million for the year ended December 31, 2023 as compared to the same period in the prior year, as higher Exchange Written Premium volumes (an increase of $586.6 million or 49%) at stable underlying margins were partially offset by higher year-over-year Member profit commission accruals, along with the increase in general and administrative expenses noted above.

The Adjusted EBITDA margin for the segment for the year ended December 31, 2023 was 71%, slightly lower than 74% in 2022, reflecting the investments we are making in our Risk Exchange capabilities.

***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 77% and 71% of the segment's direct commission income for the years ended December 31, 2023 and 2022, respectively.

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MGA Operations revenue grew by $52.2 million to $112.1 million for the year ended December 31, 2023, with $35.1 million of the period-over-period increase relating to direct commission income from affiliated entities. The increase was driven primarily by strong Net Revenue Retention of 155% during the year for Mission Members and Owned Members. As of December 31, 2023, we had 41 total Members in MGA Operations consisting of 16 Owned Members and 25 Mission Members. This was an increase of 10 Members from 2022. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. Revenue for the year ended December 31, 2023 includes a $9.3 million investment gain related to the valuation of one of the Owned Members which we account for under the measurement alternative.

The Adjusted EBITDA margin for the segment increased to 28% for the year ended December 31, 2023 (from 12% in the prior year) due to the growth in revenue outpacing the increase in general and administrative expenses, as the segment continues to scale in its operations.

MGA Operations Adjusted EBITDA of $31.5 million grew $24.2 million for the year ended December 31, 2023, due to the $9.3 million investment gain noted above and a $41.1 million increase in direct commission income, which included a $17.3 million increase from our Owned Members due to organic growth, as well as significant growth in Mission Underwriters, which contributed $23.8 million to the increase in direct commission income, partially offset by a $28.0 million increase in general and administrative expenses driven by the continued investment in Mission Underwriters, which contributed $19.7 million of the increase in general and administrative expenses primarily driven by investments in newly formed MGAs. As new teams of specialty underwriters leave their former insurance company employers to start Mission Members, there is an amount of formation expenses required to stand their products up on Mission's policy administration system.

***Underwriting***

The Underwriting segment revenues of $201.3 million for the year ended December 31, 2023 grew by 63%, from $123.4 million for the same period in the prior year. Net earned premium of $105.1 million for the year ended December 31, 2023 decreased by $36.1 million from $141.2 million for the prior year, as we decreased the amount of business we retained in 2023 as explained above. This decrease in premium retention had an associated positive impact on ceding commission income, which increased $90.6 million over the comparative period. The remaining increase in revenue related to increases in net investment income and net realized and unrealized gains on investments due to year-over-year improvements in market conditions.

The gross loss ratio on the gross premiums earned was 51.3% and 55.5% for the years ended December 31, 2023 and 2022, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 76.4% and 70.5%, for the years ended December 31, 2023 and 2022, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance we obtain (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

**The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:** 

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded - Excess<br>of Loss &<br>Other** | **Net** |
|  Earned premium | $1319.4 | $(1149.7) | $(64.6) | $105.1 |
|  Losses and loss adjustment expenses | 677.2 | (589.3) | (7.6) | 80.3 |
|  **Loss ratio** | **51.3%** | **51.3%** | **11.8%** | **76.4%** |

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|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded - Excess<br>of Loss &<br>Other** | **Net** |
|  Earned premium | $778.6 | $(601.4) | $(36.0) | $141.2 |
|  Losses and loss adjustment expenses | 431.8 | (314.4) | (17.9) | 99.5 |
|  **Loss ratio** | **55.5%** | **52.3%** | **49.7%** | **70.5%** |

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Adjusted EBITDA loss for the Underwriting segment of $3.4 million for the year ended December 31, 2023 decreased $77.8 million as compared to the prior year. The improvement in Adjusted EBITDA loss included a $23.4 million relative improvement in investment returns driven by year-over-year market performance, and the year ended December 31, 2022 included a $34.1 million impact of updated loss estimates and development primarily relating to one large European Member for the 2020 underwriting year and the related negative impact to sliding scale commissions. Ceding commission income for the year ended December 31, 2023 included a reduction of $19.1 million for net sliding scale adjustments resulting from the loss experience of covered insurance contracts. The year-over-year comparison also benefited from the impact to ceding commission income associated with decreasing our premium retention, as noted above. These improvements were partially offset by an $8.9 million increase in general and administrative expenses due to scaling of operations to support growth in the U.S. market and across the Accelerant business model.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies.

Adjusted EBITDA loss from Corporate and Other of $25.6 million for the year ended December 31, 2023 increased by $16.2 million as compared to the same period in the prior year, driven by increases in headcount to support growth of the organization, partially offset by investment income and unrealized gains on investments.

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our owned insurance companies within our Underwriting segment accounted for a majority of our Exchange Written Premium during the years ended December 31, 2023 and 2022 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, lowering our expense base.

The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the years ended December 31, 2023 and 2022.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $184.6 million and $126.2 million for the years ended December 31, 2023 and 2022, respectively, were eliminated, reflected by a corresponding offsetting

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entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of DAC. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the DAC for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated DAC. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $85.8 million and $56.5 million for the years ended December 31, 2023 and 2022, respectively) and lowered amortization of DAC (adjustments to decrease amortization expense by $18.5 million and $23.0 million for the years ended December 31, 2023 and 2022, respectively).

*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $26.8 million and $15.1 million for the years ended December 31, 2023 and 2022, respectively.

**Liquidity and Capital Resources** 

***General***

Liquidity is a measure of a company's ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations. Accelerant Holdings' insurance and reinsurance operations are subject to regulation and supervision in each of the jurisdictions where they are domiciled and licensed to conduct business. See "Regulation." Generally, regulatory authorities have broad supervisory and administrative powers over such matters as licenses, standards of solvency, premium rates, policy forms, investments, security deposits, methods of accounting, form and content of financial statements, reserves for unpaid loss and LAE, reinsurance, minimum capital and surplus requirements, dividends and other distributions to shareholders, periodic examinations, and annual and other report filings. In general, such regulation is for the protection of policyholders rather than shareholders. Accelerant Holdings supports its liquidity needs with available liquid cash resources and short duration, high-quality fixed income portfolios.

***Sources and uses of funds***

Accelerant Holdings is a holding company with no substantial operations of its own and its assets consist primarily of its investments in subsidiaries. Its cash needs primarily consist of the payment of corporate expenses, interest payments on senior notes and strategic investment opportunities (i.e., into MGA Operations). We may receive cash through (1) issuance of mezzanine equity, permanent equity or debt securities, (2) loans from banks, (3) corporate service fees from our Exchange Services, MGA Operations and Underwriting segments, (4) payments from subsidiaries pursuant to our consolidated tax allocation agreements, and (5) dividends from subsidiaries within the Exchange Services, MGA Operations and Underwriting segments. We may use the proceeds from these sources to support business growth, invest in Member MGAs and Mission Underwriters, pay taxes, and for other business purposes.

The Exchange Services and MGA Operations segments generate cash from net commission income from the services provided to both affiliates and third parties.

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Cash generated by our insurance and reinsurance operating subsidiaries is used primarily to settle loss and LAE, reinsurance premiums, acquisition costs, interest expense, taxes, and general and administrative expenses. The underwriting segment generates liquidity, as premiums are received in advance of the time that losses are paid.

We file a consolidated federal income tax return for our U.S. subsidiaries, and under our corporate tax allocation agreement, each participant is charged or refunded taxes according to the amount that the participant would have paid or received had it filed on a separate return basis with the Internal Revenue Service.

As of March 31, 2025, we had $1.99 billion in investments, cash, cash equivalents and restricted cash, compared to $1.88 billion as of December 31, 2024. As of March 31, 2025, we had $340.5 million within current accounts and money-market accounts of non-regulated entities, primarily our agencies servicing the Risk Exchange and holding companies, included within the total cash and investments, compared to $266.7 million as of December 31, 2024.

**Financial Condition** 

***Equity***

As of March 31, 2025 and December 31, 2024, total equity was $454.4 million and $427.0 million, respectively. The change as of March 31, 2025 compared to December 31, 2024 was primarily due to acquisition of non-controlling interests of $11.0 million from our step-acquisition of a subsidiary company, other comprehensive income of $8.5 million, net income of $7.8 million, and share-based compensation of $2.4 million, partially offset by dividends paid to non-controlling interests of $2.3 million.

***Cash, Cash Equivalents and Restricted Cash***

As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents balances of $1.29 billion and $1.27 billion, respectively. As of March 31, 2025, we had restricted cash and cash equivalents balances of $52.7 million. Cash and cash equivalents are comprised of amounts in interest-bearing deposit accounts with financial institutions insured by the FDIC up to $250 thousand per account. Restricted cash and cash equivalents are comprised of cash and money market funds that have been contributed toward trusts. Generally, our cash and cash equivalents in interest-bearing deposit accounts may exceed FDIC insurance limits exposing us to credit risk in the event of default by the financial institutions. We believe the risk of loss from such an event of default is minimal, however, we periodically review the financial stability of these institutions.

***Investment Portfolio***

Our invested assets consist of fixed maturity securities, short-term investments, equity method investments, equity securities, and other investments. As of March 31, 2025, 83% of our investments were comprised of $582.7 million of available for sale fixed maturity securities. Also included in our investments were $8.9 million of equity method investments, $64.2 million of short-term investments available for sale, at fair value, and $47.0 million of other investments.

Our investment portfolio has consistently maintained high credit quality and short duration investments that are positioned for capital preservation. We primarily invest in liquid, short-and medium-term securities, investment-grade fixed income, bond fund investment vehicles with low duration and volatility with the primary objectives of matching assets with liabilities and covering near-term obligations. We limit our exposure to alternative investments. As of March 31, 2025, our cash and fixed income and short-term investments portfolio represented 97% of our total portfolio. 88% of our fixed income and short-term investments carried an S&P fixed income rating of "A" or higher, the balance of which was rated "BBB", and maintained a duration of 2.8 years.

In 2023, we executed a partial investment management transition from Mercer Investments LLC ("Mercer") and Loomis, Sayles & Company, L.P. ("Loomis"), the previous subadvisors on the U.S. portfolio, to Wellington

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Management Company ("Wellington"), with the full transition of all of our global assets under management to Wellington completed during the first half of 2024. The investment management expenses were $0.2 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

The material terms of the Mercer and Loomis contracts were as follows: fees of 25 basis points of assets under management; no minimum asset under management requirements; no minimum term of agreement; and termination by either party with 30 days notice.

The material terms of the Wellington contract are as follows: fees of 12 basis points for the first $200.0 million of assets under management, on a reducing tier basis to 7 basis points for assets under management of $1.0 billion or greater; no minimum asset under management requirements; no minimum term of agreement; we can terminate this agreement at any time; and Wellington can terminate with three months notice or with immediate effect if required by a competent regulatory authority or law.

The following table summarizes the components of our total investments and cash, cash equivalents and restricted cash as of March 31, 2025, December 31, 2024 and 2023:

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|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  Short-term investments | $64.2 | 3% | $64.8 | 3% | $8.0 | 1% |
|  Fixed maturity securities | 582.7 | 29% | 479.5 | 25% | 86.5 | 8% |
|  Equity securities |  | —% |  | —% | 116.7 | 11% |
|  Equity method investments | 8.9 | —% | 18.2 | 1% | 15.7 | 2% |
|  Other investments | 47.0 | 2% | 45.3 | 2% | 25.5 | 2% |
|  Cash, cash equivalents and restricted cash | 1290.7 | 66% | 1273.0 | 69% | 775.4 | 76% |
|  **Total investments and cash, cash equivalents and restricted cash** | $**1993.5** | **100%** | $**1880.8** | **100%** | $**1027.8** | **100%** |

---

*Fixed maturity securities and Short-term investments* 

At March 31, 2025, December 31, 2024 and 2023, the fair values of fixed maturity and short-term investments were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  Corporate | $223.3 | 35% | $174.0 | 32% | $30.6 | 32% |
|  U.S. government and agency | 155.5 | 24% | 128.2 | 24% | 32.1 | 34% |
|  Non-U.S. government and agency | 174.6 | 27% | 158.6 | 29% | 2.6 | 3% |
|  Residential mortgage-backed | 45.6 | 7% | 43.0 | 8% | 18.4 | 19% |
|  Commercial mortgage-backed | 21.1 | 3% | 18.4 | 3% | 2.8 | 3% |
|  Other asset-backed securities | 26.8 | 4% | 22.1 | 4% | 8.0 | 9% |
|  **Total fixed maturity and short-term investments** | $**646.9** | **100%** | $**544.3** | **100%** | $**94.5** | **100%** |

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The following table summarizes the credit quality of fixed maturity and short-term investments as of March 31, 2025, December 31, 2024 and 2023:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| **Rating** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  AAA | $133.5 | 21% | $110.1 | 20% | $11.9 | 13% |
|  AA | 310.0 | 48% | 276.1 | 51% | 47.6 | 50% |
|  A | 126.8 | 20% | 92.6 | 17% | 20.4 | 22% |
|  BBB  | 76.6 | 11% | 65.5 | 12% | 14.6 | 15% |
|  **Total fixed maturity and short-term investments** | $**646.9** | **100%** | $**544.3** | **100%** | $**94.5** | **100%** |

---

The amortized cost and fair values of fixed maturity and short-term investments by contractual maturity were as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** |
|  Due in one year or less | $114.2 | $114.4 | 18% | $105.6 | $104.6 | 19% | $18.6 | $18.6 | 20% |
|  Due after one year through five years | 342.6 | 343.7 | 53% | 277.0 | 275.0 | 51% | 45.6 | 45.6 | 48% |
|  Due after five years through ten years | 89.2 | 88.3 | 14% | 76.4 | 75.0 | 14% | 1.1 | 1.1 | 1% |
|  Due after ten years | 7.4 | 7.0 | 1% | 6.5 | 6.2 | 1% |  |  | —% |
|  Residential mortgage-backed | 46.0 | 45.6 | 7% | 44.4 | 43.0 | 8% | 19.0 | 18.4 | 19% |
|  Commercial mortgage-backed | 20.9 | 21.1 | 3% | 18.6 | 18.4 | 3% | 2.8 | 2.8 | 3% |
|  Other asset-backed securities | 26.7 | 26.8 | 4% | 22.1 | 22.1 | 4% | 8.0 | 8.0 | 9% |
|  **Total** | $**647.0** | $**646.9** | **100%** | $**550.6** | $**544.3** | **100%** | $**95.1** | $**94.5** | **100%** |

---

*Equity securities* 

Our investment in equity securities consists of mutual funds that primarily invest in high-quality debt securities and were as follows as of December 31, 2023 (there were no equity security holdings as of March 31, 2025 or December 31, 2024):

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| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Equity securities, at fair value** | $**116.7** |

---

The following table summarizes the credit quality of equity securities as of December 31, 2023:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Rating** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  AAA | $11.6 | 10% |
|  AA | 16.9 | 14% |
|  A | 41.2 | 35% |
|  BBB | 37.6 | 32% |
|  BB and lower | 9.4 | 9% |
|  **Total equity securities** | $**116.7** | **100%** |

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The following tables summarize the concentration by sector and industry of equity securities as of December 31, 2023:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Sector** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  Financials | $59.7 | 53% |
|  Government | 17.9 | 18% |
|  Healthcare | 6.8 | 4% |
|  Consumer Discretionary | 4.9 | 3% |
|  Industrials | 4.9 | 3% |
|  Consumer Staples | 5.5 | 3% |
|  Information Technology | 3.1 | 2% |
|  Utilities | 3.8 | 2% |
|  Communication Services | 3.3 | 3% |
|  Other | 6.8 | 9% |
|  **Total equity securities** | $**116.7** | **100%** |

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Industry** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  Banks | $43.8 | 38% |
|  Government | 17.9 | 15% |
|  Financial Services | 13.8 | 12% |
|  Food, Beverage & Tobacco | 4.4 | 4% |
|  Health Care Equipment & Services | 4.6 | 4% |
|  Utilities | 3.8 | 3% |
|  Insurance | 2.1 | 2% |
|  Extraterritorial Organizations | 3.8 | 3% |
|  Telecommunication Services | 2.3 | 2% |
|  Commercial & Professional Services | 2.0 | 2% |
|  Capital Goods | 2.3 | 2% |
|  Consumer Services | 2.3 | 2% |
|  Technology Hardware, Storage & Peripherals | 1.4 | 1% |
|  Pharmaceuticals, Biotechnology & Life Sciences | 2.2 | 2% |
|  Other | 10.0 | 8% |
|  **Total equity securities** | $**116.7** | **100%** |

---

Our largest individual mutual funds of an individual issuer in equity securities as of December 31, 2023 was $14.4 million comprised of mutual funds holding high-quality UK government bonds, representing 12.3% and 6.0% of total equity securities and total equity, respectively.

In early 2024, we repositioned our investment mix to consist primarily of high-quality fixed maturity investments instead of equity securities.

**Cash Flows** 

Our most significant source of cash inflow is from premiums received from our insureds, which, for most policies, we receive at the beginning of the coverage period. Our most significant cash outflow is for claims that

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arise when a policyholder incurs an insured loss. Because the payment of claims occurs after the receipt of the premium, with the potential for a multi-year timeline, we invest the cash in various investment securities that earn interest and dividends. We also use cash to pay commissions to brokers, as well as to pay for ongoing operating expenses such as salaries, consulting services and taxes. As described under "Reinsurance" below, we use reinsurance to manage the risk that we take on our policies. We cede, or pay out, part of the premiums we receive to our reinsurers and collect cash back when losses subject to our reinsurance coverage are paid.

Our cash flows for the three months ended March 31, 2025 and 2024 were:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Cash, cash equivalents and restricted cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $91.8 | $144.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (89.7) | (90.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | (2.3) | (1.9) |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  **Net change in cash, cash equivalents, and restricted cash** | $**17.7** | $**49.5** |

---

***Operating Activities***

We believe that claim payments will be sufficiently supported by annual positive cash flows from operating activities. However, should operating cash flows be insufficient to fund claim payment obligations, we would use alternative internal funding sources from cash and cash equivalent balances, liquidation of portfolio investments and potential external sources, such as credit facilities. Our fixed portfolio is weighted towards conservative, high-quality securities. Management expects that, if necessary, the full value of cash, cash equivalents, short-term and fixed income investments could be available in two to three business days under normal market conditions.

Net cash proceeds from operating activities for the three months ended March 31, 2025 and 2024 were $91.8 million and $144.3 million, respectively. The year-over-year decrease in cash provided by operating activities is primarily attributable to timing differences within our insurance and reinsurance activities partially offsetting cash generated by the growth of our Risk Exchange.

***Investing Activities***

Our portfolio is weighted towards conservative, high-quality securities as well as cash and cash equivalent investments, such as money market funds. We also hold investments in alternative securities that typically report on a consistent lag basis whereby their valuation may change in response to future financial performance of the investees.

For the three months ended March 31, 2025, net cash used in investing activities was $89.7 million, which is primarily related to purchases of high-quality fixed maturity securities, partially offset by sales and maturities of fixed maturity securities.

For the three months ended March 31, 2024, net cash used in investing activities was $90.3 million, which is primarily related to the repositioning of our investment portfolio through the divestment of our mutual funds into separately managed portfolios mainly investing in high-quality fixed maturity securities during the period, as well as net purchases of short-term investments.

***Financing Activities***

Net cash used in financing activities for the three months ended March 31, 2025 and 2024 was $2.3 million and $1.9 million, respectively, and primarily related to dividends paid to non-controlling interests.

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Our cash flows for the years ended December 31, 2024, 2023 and 2022 were:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Cash, cash equivalents and restricted cash provided by (used in): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $785.7 | $290.0 | $67.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (380.1) | (12.6) | (147.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | 110.3 | 10.3 | 256.0 |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash | (18.3) | 4.1 | (15.5) |
|  **Net change in cash, cash equivalents, and restricted cash** | $**497.6** | $**291.8** | $**160.3** |

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***Operating Activities***

We believe that claim payments will be sufficiently supported by annual positive cash flows from operating activities. However, should operating cash flows be insufficient to fund claim payment obligations, we would use alternative internal funding sources from cash and cash equivalent balances, liquidation of portfolio investments and potential external sources, such as credit facilities. Our fixed portfolio is weighted towards conservative, high-quality securities. Management expects that, if necessary, the full value of cash, cash equivalents, short-term and fixed income investments could be available in two to three business days under normal market conditions.

Net cash proceeds from operating activities for the years ended December 31, 2024, 2023 and 2022 were $785.7 million, $290.0 million and $67.5 million, respectively. The year-over-year increases from operating activities are primarily attributable to our significant growth and our insurance and reinsurance activities.

***Investing Activities***

Our portfolio is weighted towards conservative, high-quality securities as well as cash and cash equivalent investments, such as money market funds. We also hold investments in alternative securities that typically report on a consistent lag basis whereby their valuation may change in response to future financial performance of the investees. For the year ended December 31, 2024, net cash used in investing activities was $380.1 million, which is primarily related to the repositioning of the portfolio by divestment of mutual funds and subsequent purchase of separately managed portfolios mainly investing in high-quality fixed maturity securities during the period, as we repositioned our investment mix.

For the year ended December 31, 2023, net cash used in investing activities was $12.6 million, which is primarily related to the increase in purchases of equity securities during the period resulting from increased premium volume, as well as increased investing in short-term and fixed income investments in response to rising interest rates.

For the year ended December 31, 2022, net cash used in investing activities was $147.7 million, which is primarily related to the increase in purchases of equity securities during the period resulting from increased premium volume, as well as increased investing in short-term and fixed income investments in response to rising interest rates.

***Financing Activities***

Net cash provided by financing activities for the years ended December 31, 2024, 2023 and 2022 was $110.3 million, $10.3 million and $256.0 million, respectively.

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The year-over-year increase in net cash provided by financing activities for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily due to the issuance of $114.5 million of convertible preference shares and contingently issuable warrants during the year ended December 31, 2024. Additionally, we issued debt of $49.7 million during the year ended December 31, 2024 as compared to $20.0 million during the year ended December 31, 2023, partially offset by the repayment of debt of $50.4 million during the year ended December 31, 2024 as compared to $2.0 million during the year ended December 31, 2023.

The year-over-year decrease in net cash provided by financing activities for the year ended December 31, 2023 as compared to the year ended December 31, 2022 was primarily due to the elevated level of capital raising activity during the year ended December 31, 2022, which included $204.8 million in net proceeds related to the issuance of preference shares compared to $0.7 million of such activity for the year ended December 31, 2023. Additionally, we issued debt of $20.0 million during the year ended December 31, 2023 as compared to $54.1 million during the year ended December 31, 2022.

**Supplemental non-cash activity information** 

For the year ended December 31, 2024, we had non-cash financing activities consisting of the issuance of common shares with a fair value of $7.0 million as consideration for the acquisition of all the outstanding common equity ownership interest in Mission, together with the issuance of convertible preference shares as an anti-dilutive measure to existing shareholders for no consideration. For further information on the Mission acquisition, refer to Note 6 of our annual consolidated financial statements.

For the year ended December 31, 2023, we had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. Refer to Note 8 of our annual consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, we had non-cash financing activities consisting of the issuance of 2,500 Class A convertible preference shares to a related party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related party by way of a $0.5 million loan funded by us. In addition, non-controlling interest increased by $2.3 million due to our acquisition of subsidiaries.

**Reinsurance** 

As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. We also purchase excess of loss reinsurance contracts for the business that we retain to further limit our exposure to potential large losses. Our reinsurance is primarily contracted under quota-share reinsurance treaties and excess of loss treaties. In quota-share reinsurance, the reinsurer agrees to assume a specified percentage of the ceding company's losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of a ceding commission. In excess of loss reinsurance, the reinsurer agrees to assume all or a portion of the ceding company's losses, in excess of a specified amount. In excess of loss reinsurance, the premium payable to the reinsurer is negotiated by the parties based on their assessment of the amount of risk being ceded to the reinsurer because the reinsurer does not share proportionately in the ceding company's losses.

We employ disciplined and principles-based reserving practices with effective controls and oversight. We actively manage risk through reinsurance, partnering primarily with reinsurers that maintain "A-" or better A.M. Best financial strength ratings, possess a history of strong credit quality or that fully collateralize their recoverables, all of which ensures high-quality recoverable assets and minimizes counterparty risk. We believe our high-quality balance sheet provides the foundation for consistently delivering financial performance and returns.

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Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under U.S. state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of "A-" (excellent) or better, and we require reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

We cede a significant portion of our insurance business to our unconsolidated collateralized reinsurance sidecar vehicle, Flywheel Re. Flywheel Re is a Cayman Islands special purpose reinsurance company that provides committed multi-year collateralized quota share capacity, capitalized by long-term institutional investors.

***Reinsurance transactions***

<u>*Loss portfolio transfer:*</u> Effective December 2023, certain of our insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). Under the terms of the LPT, the reinsurance counterparty will reinsure all of our retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby we will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. As such, at inception, we recorded a deposit asset in Reinsurance recoverables within the consolidated balance sheet equal to the premium consideration paid, less an amount of $6.2 million of premium to be retained by the reinsurer (irrespective of the experience of the contract) that is reported within Other assets.

The overall premium will be held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld by us will be credited with interest at a fixed annual rate that will inure to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

For the three months ended March 31, 2025 and the year ended December 31, 2024, we reduced the deposit assets by $5.3 million and $47.4 million, respectively, attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

<u>*Commutation:*</u> In December 2023, we completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

<u>*Endorsements of existing quota share agreements:*</u> In November 2023, we and certain of our reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

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**Contractual Obligations and Commitments** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
| ***Payment Due by Period ($ millions)*** | **Total** | **Less than one<br>year** | **1-3 years** | **3-5 years** | **After 5 years** |
|  Senior unsecured debt due 2029<sup>(1)</sup> | $165.5 | $11.1 | $28.0 | $126.4 | $— |
|  Long-term unfunded investment commitments<sup>(2)</sup> | 9.2 | 9.2 |  |  |  |
|  Estimated claims and claim-related commitments<sup>(3)</sup> | 1513.1 | 497.4 | 523.1 | 239.1 | 253.5 |
|  **Total** | $**1687.8** | $**517.7** | $**551.1** | $**365.5** | $**253.5** |

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(1) Amounts presented include estimated interest payments.

(2) We have invested in limited partnership agreements and can be called to fulfill the obligations at any time.

(3) Estimated timing of claim payments are based on historical payment patterns and exclude reinsurance
recoveries. Claims payments do not have a contractual maturity and, as such, the amount and timing of associated cash flows may vary significantly from the amounts presented.

***Regulated deposits and restricted assets***

Certain companies in the Group are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in the consolidated balance sheets.

In addition, we have pledged cash and cash equivalents of $52.7 million, short-term investments of $17.3 million and fixed maturity securities of $33.6 million as of March 31, 2025 in favor of certain ceding companies to collateralize obligations. As of December 31, 2024, we had pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million in favor of certain ceding companies to collateralize obligations.

***Reserves for losses and loss adjustment expenses***

Reserves for losses and LAE represent our best estimate of the ultimate cost of settling reported and unreported claims and related expenses. The estimation of loss and LAE reserves is based on various complex and subjective judgments. Actual losses and settlement expenses paid may deviate, perhaps substantially, from the reserve estimates reflected in our consolidated financial statements. Similarly, the timing for payment of our estimated losses is not fixed and is not determinable on an individual or aggregate basis due to the uncertainty inherent in the process of estimating such payments.

See Note 2 and Note 6 to our condensed consolidated interim financial statements and Note 2 and Note 13 to our consolidated annual financial statements included elsewhere in this prospectus for a discussion of estimates and assumptions related to the reserves for unpaid losses and LAE.

***Reinsurance recoverables***

Reinsurance recoverables on reserves for losses and LAE are reported separately as assets, instead of being netted with the related liabilities, since reinsurance does not discharge us of our liability to policyholders. The method for determining reinsurance recoverables for unpaid losses and LAE involves reviewing actuarial estimates of gross unpaid losses and LAE to determine our ability to cede unpaid losses and loss adjustment expenses under our existing reinsurance contracts.

See Note 7 to our condensed consolidated interim financial statements and Note 8 to our consolidated annual financial statements included elsewhere in this prospectus for a discussion of reinsurance recoverables and payables.

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***Debt***

During the third quarter of 2024, we entered into the Credit Agreement (as defined below), which replaced the prior credit agreement among us, the guarantors party thereto, Bank of Montreal, as administrative agent, and the lenders party thereto (the "Prior Credit Agreement"). We amended our syndicated loan agreement related to our senior unsecured debt facility including Euro and U.S. dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the Credit Agreement, we refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single U.S. dollar denominated facility. In addition, the credit agreement was amended to add a $50.0 million revolving credit facility (all of which was unutilized and available as of March 31, 2025).

The senior notes are senior unsecured obligations and include a delayed draw term loan feature that allows us to withdraw predefined amounts of the approved total U.S. Dollar aggregate principal amount. Under the Credit Agreement, we have the option of obtaining additional term loans or increasing the revolving commitments up to an aggregate principal amount of $75.0 million, subject to meeting certain conditions, and only if the applicable incremental lenders agree to provide such additional term loans or revolving commitments.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated on based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts prepaid may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, we were in compliance with all such covenants.

See "Description of Certain Indebtedness," Note 9 of our interim consolidated financial statements and Note 14 of our annual consolidated financial statements for further details regarding our debt obligations.

***Capital maintenance agreements***

We have established capital maintenance agreements with our insurance subsidiaries which obligates us to make capital contributions to its subsidiaries to maintain surplus with a prudent buffer above minimum statutory and regulatory capital requirements. These requirements are set by our Board of Directors. During the three months ended March 31, 2025, we made capital contributions of $11.0 million to ANIC and $8.7 million to AIUK.

**Ratings** 

Ratings by independent agencies are an important factor in establishing the competitive position of insurance companies and reinsurance companies and are important to our ability attract Members and third-party capital providers. Rating organizations continually review the financial positions of insurers and reinsurers.

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These ratings reflect the rating agency's views regarding balance sheet strength, operating performance, business profile and enterprise risk management. It is not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold our shares. Our insurance and reinsurance operating subsidiaries are assigned financial strength ratings by A.M. Best as follows:

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| | | |
|:---|:---|:---|
|  | **Rating** | **Outlook** |
|  Accelerant Insurance Europe SA | "A-" (Excellent) | Stable |
|  Accelerant Specialty Insurance Company ("ASIC") | "A-" (Excellent) | Stable |
|  Accelerant National Insurance Company ("ANIC") | "A-" (Excellent) | Stable |
|  Accelerant Re (Cayman) Ltd. | "A-" (Excellent) | Stable |
|  Accelerant Insurance UK Limited ("AIUK") | "A-" (Excellent) | Stable |
|  Accelerant Insurance Company of Canada ("AICC") | "A-" (Excellent) | Stable |
|  Accelerant Re I.I. (Puerto Rico) ("ARPR") | "A-" (Excellent) | Stable |

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These ratings reflect A.M. Best's opinion of the ability of Accelerant Holdings and respective subsidiaries to pay claims and are not evaluations directed to security holders. A.M. Best maintains a letter-scale rating system ranging from "A++" (Superior) to "F" (in liquidation). "A–" is the fourth highest of 16 financial strength ratings assigned by A.M. Best, as last updated June 4, 2025. These ratings are subject to periodic review and may be revised downward or revoked at the sole discretion of A.M. Best.

**Off-Balance Sheet Arrangements** 

We do not have any off-balance sheet arrangements, as defined by applicable regulations of the SEC, which are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

**Critical Accounting Policies and Estimates** 

Our consolidated financial statements are prepared in conformity with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on our historical experience and on various other assumptions that we believe are reasonable after weighing up all relevant information. Actual results may differ from those estimates.

The accounting policies listed below involve significant estimates, and therefore are critical in understanding our financial performance and operational results. For additional information, refer to Note 2 to our consolidated annual financial statements included elsewhere in this prospectus.

***Unpaid Loss and Loss Adjustment Expenses***

We record loss reserves for our unpaid loss and LAE, which involves significant judgment and complex estimation processes. It represents management's best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events among other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in the consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in the consolidated statements of operations in the period in which they become known and are accounted for as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

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The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. These estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed and as new or improved methodologies are developed. The adequacy of the reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

The main risks and uncertainties are associated with limited historical data and new and evolving estimation processes. As such, we supplement our analysis using a combination of third-party data provided by Members and industry benchmark data as the basis for the selection of expected reporting patterns. We expect to continuously increase the use of our own data and experience as we accumulate such information over time. In addition, we incorporate our estimates of future trends in various factors such as loss frequency and severity in the evaluation process.

We review loss reserves in-depth every six months or more frequently depending on the facts and circumstances, with a high-level actual versus expected ("AvE") analysis done in between the in-depth reviews. During in-depth reviews, all estimates are reviewed and adjusted as our own experience develops and market conditions change. During the high level AvE analysis we make changes for any material developments over the period (e.g., large losses, catastrophic events or significant market changes).

Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. Our reserving methods include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The underlying premise of the Chain Ladder method is that future claims are best estimated using past development pattern, whereas the Bornheutter-Ferguson method employs a combination of past claims development and prior estimates of ultimate losses based on expected loss ratio. The methods all involve aggregating paid and case-incurred loss data by underwriting year and development month, segmented into Members and products or lines of business as deemed appropriate and material. The ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because we have limited data to assess our own claims experience given the recently formed nature of the business, we use industry and peer-group data, in addition to our own data, as a basis for selecting our expected paid and reporting patterns.

Inflation rates in all major economic regions and the imposition (or threatened imposition) of tariffs add to the uncertainty of the future claim cost. Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions has therefore involved more uncertainty in recent periods. We expect there will be impacts to the timing of loss emergence and ultimate loss ratios for certain underwritten coverages. The industry is experiencing new issues, including a backlog of civil court cases in most states, the extension of certain statutes of limitations and the impact on insureds from a significant reduction in economic activity. Our recorded reserves include consideration of these factors, but legislative, regulatory, or judicial actions could result in loss reserve deficiencies and reduce earnings in future periods.

The two categories of our loss reserves include case reserves and IBNR reserves. Our gross reserves for losses and LAE at March 31, 2025 and December 31, 2024 were $1.51 billion and $1.29 billion, 63% and 60% of which relates to IBNR, respectively. Our reserves for losses and loss adjustment expenses, net of reinsurance, at March 31, 2025 and December 31, 2024 were $246.6 million and $224.9 million, 54% and 52% of which relates to IBNR, respectively.

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The following table summarizes our reserves for unpaid losses and loss adjustment expenses, on a gross basis and net of reinsurance, as of March 31, 2025 and December 31, 2024:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross** | **% of<br>Total** | **Net** | **% of<br>Total** | **Gross** | **% of<br>Total** | **Net** | **% of<br>Total** |
|  Case Reserves | $555.3 | 37% | $113.9 | 46% | $514.4 | 40% | $107.5 | 48% |
|  IBNR | 957.8 | 63% | 132.7 | 54% | 780.0 | 60% | 117.4 | 52% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | $**1513.1** | **100%** | $**246.6** | **100%** | $**1294.4** | **100%** | $**224.9** | **100%** |

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Case reserves are established for the individual claims that have been reported to us. Based on the information available and the status of the claims, case reserves are established by TPAs, who have the authority of handling smaller claims (typically up to $250 thousand) or our claims teams, for large losses, through standard claim handling practices and professional judgment. As mentioned above, the estimates may be refined, and the ultimate value of claims liability may be adjusted either upward or downward as more information becomes available.

In case of catastrophes or other large losses, the additional IBNR in relation to those claims is estimated by the joint work of the claims, portfolio management, and actuarial teams, and those estimates are used in the final estimates provided to the finance team for recognition within our financial statements. Our internal threshold for catastrophe losses is $10 million of gross losses. We have had seven such events since inception: European flooding (July 2021), Storm Arwen (November 2021), Storm Eunice (February 2022) and Hurricane Ian (September 2022), U.S. winter storms (January 2024), Hurricane Helene (September 2024) and California wildfires (January 2025). In aggregate, these events led to approximately $10 million of net incurred losses. While we write insurance products in each of these potentially impacted areas, we also maintain significant reinsurance coverage such that our net exposure is limited. For example, the most recent California wildfires resulted in $40 million of gross losses and only $2 million of net losses. Similarly, for the 2024 and other treaty years, our U.S. property catastrophe excess of loss retention for a modeled gross occurrence is expected to significantly reduce our net exposure to insignificant levels as part of our business model to limit our exposure to insurance risk.

In addition to the assumptions used in our data and reserves methodology, we used the following estimates to determine our unpaid loss and LAE: development patterns where we use Members' experience and/or applicable industry information; inflation assumptions for each class of business and territory; rate changes as provided by Members and underwriting changes as evidence leading to the rate changes; business mix changes for various Members; large loss load calculated from historic average performance or similar class of business; and selected loss ratio that is representative.

**The tables below represent the aggregated impact from potential deviations from our recorded reserve as of March 31, 2025 and December 31, 2024:** 

Sensitivity factors are applied to our most recent underwriting year and we believe these potential changes will not have a material impact on our liquidity. An increase in the gross loss of 3% in the most recent underwriting year would equate to an increase in the net loss and LAE reserve of $8.5 million.

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| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| **Sensitivity**<br> **(in millions)** | **Sensitivity for<br>Ultimate Loss<br>and LAE<br>Sensitivity<br>Factor** | **Net Loss and<br>LAE Reserve** | **Increase/<br>(Decrease) in<br>Net Loss and<br>LAE Reserve** |
|  Increase | +3% | $255.1 | $8.5 |
|  Increase | +2% | 252.2 | 5.6 |
|  Increase | +1% | 249.4 | 2.8 |
|  Actual (Base Case) | 0% | 246.6 |  |
|  Decrease | -1% | 243.8 | (2.8) |
|  Decrease | -2% | 241.0 | (5.6) |
|  Decrease | -3% | 238.1 | (8.5) |

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|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Sensitivity**<br> **(in millions)** | **Sensitivity for<br>Ultimate Loss<br>and LAE<br>Sensitivity<br>Factor** | **Net Loss and<br>LAE Reserve** | **Increase/<br>(Decrease) in<br>Net Loss and<br>LAE Reserve** |
|  Increase | +3% | $230.9 | $6.0 |
|  Increase | +2% | 228.9 | 4.0 |
|  Increase | +1% | 226.9 | 2.0 |
|  Actual (Base Case) | 0% | 224.9 |  |
|  Decrease | -1% | 222.9 | (2.0) |
|  Decrease | -2% | 220.9 | (4.0) |
|  Decrease | -3% | 218.9 | (6.0) |

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***Reinsurance Recoverable on Unpaid Losses***

In our Underwriting segment, we cede a large proportion of our GWP under various reinsurance contracts. These reinsurance agreements transfer portions of the underlying risk of the business that we underwrite and a share of premium to reinsurers, but they do not release or diminish our obligation to pay claims covered by the insurance policies. We are still primarily liable to the insured whether or not the reinsurer is able to meet its contractual obligations.

The quantum of ceded loss recoveries from our reinsurers are subject to uncertainty as our calculation of such amounts rely on similar estimates and methodologies as are used in estimating our gross loss reserves.

Additionally, there is a risk that one or more of our reinsurers may be unwilling or unable to pay their share of reinsurance recoverables. This risk is mitigated by placing our reinsurance with a diverse panel of reinsurers that are all either rated "A-" or better by A.M. Best or provide collateral to us to maximize the probability that reinsurance recoverables will be realized. We regularly monitor the financial condition of our reinsurers and we generally have special termination rights in our reinsurance treaties in the event of deterioration in the reinsurers' credit worthiness, generally if the A.M. Best rating falls below "A-" or there is a reduction in the capital and surplus of the reinsurer of more than 20% of their prior year end capital and surplus. Despite these arrangements, there is a risk that a reduction in one or more reinsurers' ability or willingness to pay our reinsurance recoverables could have a materially negative impact on our liquidity.

***Impacts of Loss Ratio Estimates and Actual Loss Experience on Sliding Scale Commissions Impacting our Ceding Commission Income***

As disclosed in Note 2 of our consolidated annual financial statements included elsewhere in this prospectus we cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period. Certain of our reinsurance arrangements are subject to sliding scale commission amounts pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts.

The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions may vary based on the volume of ceded premium and the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions).

The change in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the

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extent that the underlying premium has been earned. As such, the sliding scale commissions act as a substantive participation in the underlying loss experience of the underlying insurance contracts.

Our typical reinsurance treaties' commissions vary based on the volume of ceded premium and the ratio of ceded loss to ceded premium. As that ratio decreases, the amount of commission increases. As of March 31, 2025, the commission is 50% of ceded premium at a 40% gross loss ratio and a minimum of 34% of ceded premium at gross loss ratios of 67% and above. The adjustment between the points is largely linear. We expect commissions of 43% of ceded premium at a gross loss ratio of 50%. There were no significant adverse adjustments to reinsurance commissions due to prior year claims experience during the three months ended March 31, 2025.

Our process for calculating changes in ceding commissions from our reinsurers is linked to the results of our actuarial reserving process for loss and loss adjustment expense reserves, which is updated each reporting period. On a quarterly basis, our actuaries produce an actuarial central estimate of the gross and net loss reserves for all contracts bound as of the evaluation date. The calculations also include estimates of loss-sensitive contingent terms such as sliding scale ceding commissions. Calculations are done on a contract-by-contract basis and reflect the most recent premium and loss information available at the evaluation date.

***Valuation Allowance on Deferred Income Taxes***

Deferred tax assets and liabilities result from temporary differences between the amounts recorded in the consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns. We recognize deferred tax assets to the extent we believe it is probable that future profits will be available to utilize these tax benefits. As of March 31, 2025, we had net deferred tax assets of $45.1 million.

A valuation allowance is set up for the portion of the asset that is more likely than not unrealizable, which reduces the total deferred tax asset to only the amount that we expect to realize. This allowance is assessed at each balance sheet date and is based on all available information including significant judgments related to the likely timing and level of forecasted taxable profits based on assumptions about future macroeconomic and Company-specific conditions and the associated future tax planning strategies. We subject the forecasts to stresses of key assumptions and evaluate the effect on tax attribute utilization. In performing our assessment of recoverability, we consider tax laws governing the utilization of net operating losses, capital losses and tax credit carryforwards in each applicable jurisdiction. The tax laws are subject to change, resulting in incremental uncertainty in our assessment of recoverability, along with the future tax planning strategies. If the actual taxable income in future periods differ from our forecast, it could impact our financial position in either a materially positive or a materially negative way. As of March 31, 2025, our valuation allowance was $44.5 million. We intend to evaluate the realizability of our deferred tax asset quarterly through the assessment of the need for such a valuation allowance.

**Election Under the Jumpstart Our Business Startups Act of 2012** 

We currently qualify as an "emerging growth company" as defined in the Jumpstart Our Business Act of 2012, or the JOBS Act. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that are applicable to other public companies that do not qualify as emerging growth companies. Accordingly, we are provided with the option to adopt new or revised accounting guidance either (i) within the same period as those otherwise applicable to non-emerging growth companies or (ii) within the same time period as private companies.

We have elected to adopt new or revised accounting guidance within the same time period as private companies, unless we determine it is preferable to take advantage of early adoption provisions offered within the applicable guidance. We may take advantage of this provision for up to five years or such earlier time when we are no longer an emerging growth company and, as such, we expect to remain an emerging growth company at least through December 31, 2025. Therefore, our consolidated financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates.

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**Quantitative and Qualitative Disclosures about Market Risk** 

Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in credit spreads, interest rates, equity markets prices, foreign currency exchange rates, and other relevant market rates and prices.

***Credit Risk***

Credit risk is the potential loss resulting from adverse changes in an issuer's ability to repay its debt obligations. We have exposure to credit risk as a holder of fixed-maturity securities. We manage this credit risk through diversification in terms of instruments by issuer, geographic region and related industry. At March 31, 2025 and December 31, 2024, approximately 87% of our fixed maturity investment portfolio was rated "A" or better and 100% was classified as investment-grade.

***Interest Rate Risk***

Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates. The primary market risk to the investment portfolio is interest rate risk associated with investments in fixed-maturity securities. Fluctuations in interest rates have a direct effect on the market valuation of these securities. When market interest rates rise, the fair value of our fixed-maturity securities decreases. Conversely, as interest rates fall, the fair value of our fixed-maturity securities increases. We manage this interest rate risk by investing in securities with varied maturity dates and by matching the duration of our investment portfolio to the duration of our loss and LAE reserves. Expressed in years, duration is the weighted average payment period of cash flows, where the weighting is based on the present value of the cash flows. We set duration targets for our fixed-maturity investment portfolios after consideration of the estimated duration of our liabilities and other factors. The effective weighted-average duration of the portfolio was 3.0 years as of March 31, 2025.

We had available for sale fixed-maturity securities with a fair value of $582.7 million and $479.5 million at March 31, 2025 and December 31, 2024, respectively, that were subject to interest rate risk. The table below illustrates the sensitivity of the fair value of our fixed-maturity securities to selected hypothetical changes in interest rates as of March 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Fair Value** | **Estimated Change in<br>Fair Value** | **Fair Value** | **Estimated Change in<br>Fair Value** |
|  200 basis point increase | $547.6 | $(35.1) | $449.8 | $(29.7) |
|  100 basis point increase | 565.1 | (17.6) | 464.6 | (14.9) |
|  No change | 582.7 |  | 479.5 |  |
|  100 basis point decrease | 600.3 | 17.6 | 494.4 | 14.9 |
|  200 basis point decrease | 617.8 | 35.1 | 509.2 | 29.7 |

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Changes in interest rates will have an immediate effect on comprehensive income and stockholders' equity but will not ordinarily have an immediate effect on net income. Actual results may differ from the hypothetical change in market rates assumed in this disclosure. This sensitivity analysis does not reflect the results of any action that we may take to mitigate such hypothetical losses in fair value.

***Equity Risk***

Equity risk represents the potential economic losses due to adverse changes in equity security prices. Our equity securities consist of interests in highly rated, highly liquid, investment funds. We manage equity price risk of our equity portfolio primarily through asset allocation techniques, and fund selection within a given portfolio.

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***Foreign Currency Exchange Risk***

Foreign currency exchange-rate risk is the risk that we will incur losses on a U.S. dollar basis due to adverse changes in foreign currency exchange rates. In the ordinary course of business, we hold non-U.S. dollar denominated assets and liabilities, which are valued using period-end exchange rates. Non-U.S. dollar denominated foreign revenues and expenses are valued using average exchange rates over the period.

The following table summarizes the estimated effects of a hypothetical 10% increase and decrease in the value of the U.S. dollar against select foreign currencies would have had on the carrying value of our net assets as of March 31, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **10% increase** | **10% decrease** | **10% increase** | **10% decrease** |
|  British Pound to U.S. Dollar | $0.9 | $(0.9) | $1.0 | $(1.0) |
|  Euro to U.S. Dollar | 7.3 | (7.3) | 5.7 | (5.7) |
|  Canadian Dollar to U.S. Dollar | 2.2 | (2.2) | 2.0 | (2.0) |

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**Mission Acquisition** 

On May 1, 2024, Accelerant Option Holdings LLC ("Option Holdings") exercised its call option to acquire all of the equity interests of Mission US for an exercise price of $119 thousand. Subsequently, on May 1, 2024, Accelerant Holdings acquired such equity interests, by merger, and subsequently contributed them to Mission Worldwide Holdings. As consideration, Accelerant Holdings issued 6,938 common shares to Accelerant Holdings LP, which was equal to the value of Mission US. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time of such investments were made had relied on the inclusion of Mission Underwriters within the Company's results of operations, holders of the Company's Class A and B convertible preference shares received an additional 875 Class A convertible preference shares and 525 Class B convertible preference shares in aggregate, respectively, in each case without further consideration being paid. The total value of the common shares issued to Option Holdings was $7.0 million. Concurrently with Accelerant Holdings' acquisition of Mission US, Accelerant Holdings exercised its call option to acquire all of the equity of Mission Holdings Europe Ltd. ("Mission Europe") for €1.17 thousand, which together with Mission US became wholly-owned subsidiaries of Mission Worldwide Holdings, a subsidiary of Accelerant Holdings.

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**FOUNDERS' LETTER** 

Something had to change. It was 2018, in Stockholm, and we had just watched a talented underwriter at an MGA, a real expert in his field, struggle to underwrite a risk because of incredibly slow transaction times, short term contracts, poor data, lagging technology, and emotionally-driven decision making – the components of an adversarial specialty insurance value chain. It was an experience familiar to us through our decades-long careers at MGAs, brokers, insurers, and reinsurers.

Our long and varied experience at many points in the value chain allowed us to see what needed to change. We knew that in the insurance industry a massive amount of premium is exchanged every year – with every premium dollar passing through a complex network of parties and transactions. The complexity inhibited efficiency resulting in a market that was costly for both producers and capital providers. Information that could support higher-quality underwriting and pricing was lost in a long and complex chain of transactions.

We began talking to industry players we respected, asking for their ideas, and inviting them to join us. Before long we had a core team of experienced men and women who were determined to revolutionize the industry. With this team of experts, we launched Accelerant.

Accelerant was founded on a few core beliefs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology was and continues to bring increasing specialization to the insurance industry's value chain
enabling a new type of entrepreneurial underwriter to succeed amid the incumbents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A modern data and technology platform, aimed at delivering analytics and insights across the value chain
through a market network, would transform the industry – and defy its history of myopia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capturing and leveraging data that historically got lost in the chain would enable underwriters to improve the
quality of their portfolios leading to better results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An organization built on excellence and a foundation of accountable experts would be able to produce results
that were orders of magnitude faster for buyers and sellers in the insurance marketplace than the status quo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A culture that inspired maximum effort and collaboration every day would engender growth, creativity, and
success for all stakeholders in the marketplace.

Six years in, we are more certain now than ever of our core beliefs and their potential to transform the insurance industry. We built Accelerant as a Risk Exchange, providing services to specialty insurance underwriters – MGAs – and the risk capital supporting their business, collecting fees for those services. We anticipated a surge in specialty markets as insureds demanded products more tailored to their exposures. We expected a proliferation of MGAs gaining significant market share, as the best underwriters escape legacy carriers to be entrepreneurs. We believed risk capital would arrive in ways no longer hamstrung by regulation and inertia. We anticipated institutional investors' desire to enter the specialty market with their enormous size and focus on pure economics. And we designed Accelerant as a platform where these specialists could connect and transfer risk. Though we anticipated many things and hoped that our vision would deliver much-needed improvements to our industry, we could not have imagined how much our prescience would resonate.

Uniquely, the Accelerant team includes three key pillars of expertise. Technology and product professionals, seasoned in the SaaS world, are building our Risk Exchange platform, adding speed and transparency not seen elsewhere in the industry. Our colleagues with capital markets experience design structures for institutional investors to gain access to our specialty portfolio and attractive, uncorrelated financial returns in a unique way. Our colleagues from the insurance industry have unusually diverse sets of experience, representing all aspects of the legacy value chain – from retail broker to reinsurer. Although each expert in each of the pillars has his or her specialty, no one pillar is siloed, rather all three pillars work collaboratively. The free interchange of ideas following from the collaborative interaction among the varied disciplines not previously assembled under a single roof has enabled Accelerant to build a truly novel and disruptive platform.

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The three pillars combine in our Risk Exchange and together they have powered significant growth to date, from both specialty underwriting Members and risk capital partners and, we expect, will do so well into the future. As of March 31, 2025, we serve 232 specialty underwriters across 22 countries, with a hand-selected cadre of specialists committed to delivering best-in-class solutions in their niche markets. Their ingenuity and entrepreneurial spirit are the impetus behind the success of the Risk Exchange. Our bench strength is unusually deep for a company of our youth, with a very flat structure of experienced experts who have the authority – and responsibility – to meet our Members' needs. The success of our Members and the attractive portfolios we source, manage, and monitor as part of the Risk Exchange has drawn 96 risk capital partners to our platform as of March 31, 2025.

Over the past six years, we've channeled our combination of expertise, audacity, and vision to methodically put the pieces in place to build our market network. With the Risk Exchange and our core beliefs as our bedrock, we hope to drive the insurance industry to do better and be better: Making it possible to exchange risk simply, efficiently, and fairly, so that it works better, for everyone.

We hope that you share our excitement for what is to come and that you will join us on our journey.

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| ![LOGO](g543111g01m28.jpg)  | ![LOGO](g543111g02m28.jpg)  | ![LOGO](g543111g03m28.jpg)  |

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Jeff Radke, Chris Lee-Smith and Frank O'Neill

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**BUSINESS** 

**Our Vision** 

To become the preeminent specialty insurance marketplace connecting underwriters and risk capital in a transparent and modern way.

**Company Overview** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Our Risk Exchange is designed to be simpler, easier, and faster than legacy models for transferring risk. Inaccurate and incomplete underlying policy data plagues the traditional insurance value chain and prevents underwriters from deriving meaningful and actionable information. Our purpose-built Risk Exchange is underpinned by proprietary technology that ingests Member policy data and third-party data from disparate and complex data environments and pools it into a single, digestible dataset with over 21 thousand unique attributes and over 79 million rows of data as of March 31, 2025. This information enables automated portfolio monitoring and delivers actionable insights to underwriters and capital providers across the Risk Exchange, helping us drive lower-than-average loss ratios compared to the broader industry, optimized pricing, and accelerated growth.

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![LOGO](g543111g06g06.jpg)

We believe that our Members' success makes us the destination of choice for the industry's best specialty underwriters. We deliver distribution management and operational, actuarial, regulatory, and stable capital support to our Members, and our holistic offering promotes our Members' growth and better underwriting performance. On average, our Members grow gross premiums written through the Risk Exchange by 52% in their first two years, or at an annual rate of 39% on a weighted-average basis at low-to-mid 50-percentage loss ratios, on average. For the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, our gross loss ratio was 53%, 54% and 51%, respectively. We received an independent third-party Net Promoter Score of 89 (out of 100) from our Members (based on a survey result), which we believe will attract a robust pipeline of potential future Members.

We focus on MGAs with strong underwriting track records and specialty underwriting expertise who predominately underwrite low-limit, low-hazard, specialty commercial risks. We conduct a thorough diligence process when selecting new Members for our Risk Exchange. We carefully construct the Risk Exchange portfolio to maximize diversification and predictability. Our Members had a weighted-average gross written loss ratio of approximately 50% for business written through the Risk Exchange in underwriting year 2024, and the majority of Members' weighted-average gross loss ratios for underwriting year 2024 are within eight points of the weighted average, creating a low-volatility portfolio. Since our inception, we have declined approximately 90% of prospective new Members (representing self-reported premiums of $18 billion in aggregate) that we believe did not fit within our model, reflecting our selective invitation to only the best MGAs to join our Risk Exchange.

Our commitment to selecting the best Members, optimizing Member performance and providing full data transparency has attracted a growing and diverse set of high-quality risk capital partners. We started with two risk capital partners in 2019, growing the number to 28 in 2020, 46 in 2021, 60 in 2022, 66 in 2023, and 96 in 2024. These risk capital partners include insurance and reinsurance companies, as well as institutional investors contributing capital to Flywheel Re, a reinsurance sidecar, who are attracted to the uncorrelated, attractive return profile of the risk that they can access through the Risk Exchange. Reinsurance companies and institutional investors in Flywheel Re access the Risk Exchange by reinsuring business from Accelerant Underwriting. Starting in 2023, five third-party insurance companies joined our platform and began accessing the Risk Exchange directly. In 2024, eight more third-party insurance companies joined, and over time we believe that the majority of our Risk Exchange premium will be written by new and existing third-party insurance company partners. The depth and breadth of risk capital partners supports our operational flexibility and our growing Member base. It also allows us to maintain a capital light model.

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The Risk Exchange is our fee-based core business. At opposite ends of the Risk Exchange, we operate our MGA Operations and Underwriting segments, further enhancing our value proposition. Our MGA Operations segment includes our MGA incubator, Mission Underwriters, which has supported the formation of 31 MGAs. Mission Underwriters expands our addressable market to include underwriters presently employed by traditional insurance companies looking to form their own MGAs. In addition to Mission Members, the MGA Operations segment also captures the financial contributions of 16 Members in which we own an equity ownership interest (our "Owned Members"). Our selective equity participation allows us to make attractive investments in, and further align with, Members, enabling us to capture some of the value we help create. In nearly every instance (with only two exceptions), the MGAs in which we have invested were already Members at the time of our investment. On average, our investment in a Member has taken place nine months after the MGA became a Member. In total, we own an equity ownership interest, either directly or through Mission, in 47 of our 232 Members, and we expect our Owned Members and Mission Members in aggregate to remain a minority portion of our total Members. For the trailing twelve months ended March 31, 2025, these Members contributed $1.03 billion, in Exchange Written Premium, or 29% of our total Exchange Written Premium for that period.

Our Underwriting segment captures the portion of the Risk Exchange portfolio written by Accelerant Underwriting and the corresponding underwriting profit realized on retained business. We have historically targeted to reinsure 90% of premiums written and reinsured by Accelerant Underwriting through the Risk Exchange to risk capital partners, with Accelerant retaining approximately 10%. We expect this retained portion of Risk Exchange premium in the aggregate to decrease over time. We view our Underwriting segment as a strategic asset and source of operational flexibility that we use to broaden the risk capital pool, align incentives with current and prospective risk capital partners and expedite the onboarding of new Members and the launch of new products.

As of December 31, 2019, we had 12 Members, writing 60 products across seven countries, and two risk capital partners. As of March 31, 2025, we have grown our platform to 232 Members, writing over 500 specialty insurance products across 22 countries, on behalf of 96 risk capital partners. Since the launch of our platform, only one Member has elected to leave the Risk Exchange based on mutual agreement. In all, we have experienced less than a 1% churn rate in the period from inception of the Risk Exchange through March 31, 2025. We have grown total Exchange Written Premium to $3.5 billion for the trailing twelve months ended March 31, 2025, while achieving a gross loss ratio of 53% for the three months ended March 31, 2025, 54% for 2024 and 51% for 2023. We have grown our revenues by 57% from $219 million for the year ended December 31, 2022 to $344 million for the year ended December 31, 2023, by 75% from $344 million for the year ended December 31, 2023 to $603 million for the year ended December 31, 2024, and by 39% from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025. Our Organic Revenue Growth Rate over the same periods was 57%, 75%, and 38%, respectively. In 2022 and 2023, we incurred net losses of $96 million and $64 million, respectively, reflecting increased investment into our business. For the year ended December 31, 2024, we reported net income of $23 million. We reported net income of $8 million and $2 million for the three months ended March 31, 2025 and 2024, respectively. Our Adjusted EBITDA was $128 million for the trailing twelve months ended March 31, 2025. We generated positive Adjusted EBITDA in 2024 and 2023 of $113 million and $36 million, respectively, which followed Adjusted EBITDA losses of $39 million in 2022. For reconciliations of total revenue to Organic Revenue Growth Rate and net income (loss) to Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

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![LOGO](g543111g01k10.jpg)

*Our History* 

Accelerant was founded in 2018 by three industry veterans with over 100 years of collective experience in the insurance and reinsurance industries. They experienced first-hand the structural inefficiencies and fragmentation of the insurance market. There were too many intermediaries operating across siloed entities, resulting in a lack of customer prioritization and excess costs. Antiquated technology, poor data quality, and insufficient transparency has led to information asymmetries, inaccurate pricing, misaligned incentives, and inconsistent capital availability. Our founders were determined to build a platform to solve these issues. By democratizing data and aligning incentives in a single platform, Accelerant strives to deliver better outcomes for all Risk Exchange participants.

In late 2018, we launched operations in Europe, followed quickly by the formation of our first insurance company in 2019. We believed that controlling our own insurance company would kickstart our marketplace initially and provide our Members with the support and service to empower them to focus on profitably growing their businesses. We established relationships with risk capital partners that valued our disciplined approach to sourcing, managing, and monitoring specialty risk. They indirectly provided capacity through reinsurance to support our Members' growing premium base while we maintained our capital-efficient, distribution-focused business model. Simultaneously, we built portfolio analytics and automated monitoring to augment the quality of the portfolio and the underwriting insights that support it. By the end of 2020, we had expanded our footprint into the United States.

Recognizing the significant opportunity to attract underwriting teams out of traditional insurance companies, where underwriters had limited upside, our affiliates launched Mission Underwriters in 2021. Mission Underwriters, our MGA incubator, provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. By the end of 2021, there were five Mission Members that wrote $28 million of GWP in 2021 and grew to 31 Mission Members writing $623 million of GWP for the trailing twelve months ended March 31, 2025. With respect to technology, we made significant enhancements in 2021 to our data ingestion engine, allowing us to ingest Member data from disparate and complex data environments and to augment it with third-party data.

In 2022, we formed Flywheel Re, a reinsurance sidecar, to facilitate the participation of institutional investors in the Risk Exchange portfolio, offering them specialty insurance risk and returns that are uncorrelated with broader financial markets. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025. In June 2025, we raised additional capital from existing and new institutional investors to continue our Flywheel Re strategy. We believe Flywheel Re incorporates a structure that provides multi-year underwriting capacity to support the Risk Exchange platform portfolio as it grows. We expect Flywheel Re's future cash flows and investor returns to be dependent on the loss performance of the underlying portfolio of specialty insurance business the vehicle reinsures and, therefore, relatively uncorrelated with movements or trends in the broader financial markets.

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In 2023, we further evolved the Risk Exchange by allowing third-party insurance companies to join and access the Risk Exchange directly, as well as benefit from our profitable, thoughtfully sourced, managed, and monitored specialty risk portfolio. For the trailing twelve months ended March 31, 2025, Risk Exchange Insurers contributed 18% of total Exchange Written Premium, reflecting strong demand for our unique value proposition. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period.

As part of our strategy to engage with Risk Exchange Insurers, we offer quota share reinsurance contracts to these partners or help them establish reinsurance relationships with other risk capital partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for Risk Exchange Insurers to write and retain an increasing percentage of our Exchange Written Premium and the capital requirements of our enterprise to further decline over time.

**Our Revenue Model** 

We generate revenue through three separate operating segments: Exchange Services, MGA Operations, and Underwriting.

Our Exchange Services segment generates revenue through a fixed-percentage, volume-based fee that our risk capital partners pay to us for sourcing, managing, and monitoring the portfolio of business written by Members.

Our MGA Operations segment includes both Mission Underwriters' consolidated results and those of Owned Members in which we have an equity ownership interest. We generate commission revenue from those Owned and Mission Members that we consolidate and equity income from those Owned Members in which we have a non-controlling equity ownership interest. For the years ended December 31, 2024, 2023 and 2022, Net Revenue Retention for our MGA Operations segment was 153%, 155%, and 237%, respectively.

Our Underwriting segment captures the net commissions from reinsurers and the net underwriting result from retained business that is written and assumed by Accelerant Underwriting companies. It includes revenue through net earned premiums, ceding commission income (representing the excess ceding commissions from reinsurers over DAC amortized over the insurance policy term), and net investment income. Net earned premium represents the earned proportion of our premiums that we retain in our statutory entities. As Accelerant cedes a significant portion of its premiums written to third-party reinsurance companies, including Flywheel Re, this generates ceding commissions that are offset against the acquisition costs related to the insurance contracts subject to the reinsurance. The excess of the ceding commissions compared to the acquisition costs form a significant source of revenue that is amortized over the related insurance policy terms.

**Our Market Opportunity** 

We operate within the approximately $2 trillion global P&C insurance market. In Accelerant's core geographies, the United States, Europe, Australia, and Canada, total estimated P&C premiums represented $1.4 trillion in 2022. Today, Accelerant is focused on the specialty P&C insurance market, which includes risks that are either more complex or niche than standard P&C risks and thus require unique underwriting expertise. We estimate that the specialty P&C insurance market represented approximately $252 billion of annual premium in these core geographies in 2022.

Specialty underwriters are the "supply side" of risk in our core market. MGAs are growing underwriting market share given their relative outperformance in innovation and product design. According to Conning, the MGA market in the U.S. alone was estimated to represent over $100 billion of premiums in 2023, having grown by more than 100% from $50 billion in 2018. As the specialty insurance market has continued to mature, MGAs

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have captured increasingly greater market share in specific underwriting niches because they can better attract top underwriting talent and have more flexible, modern technology. Insurance companies that provide coverage to the ultimate insureds, and the institutional investors and reinsurers that provide reinsurance to those insurance companies, serve as the "demand side" of the market. Our Risk Exchange sits in the middle, serving both the "supply-side" and the "demand-side" of this market. We also directly participate on the "supply side" through our MGA Operations segment and on the "demand side" through our Underwriting segment.

As the industry continues to grow, the specialty insurance market is experiencing multiple structural shifts which we believe will continue to drive opportunities for our Risk Exchange:

*Key "Supply-Side" Drivers:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increasing Number of Specialty Underwriters Looking to Start MGAs:*** Specialty underwriters are
often stifled at traditional insurance companies, burdened by outdated technology and misaligned incentives. They are increasingly looking to join or form new MGAs. This has been reinforced by the broader acknowledgement by market participants and
insurance regulators of the important role that MGAs play in the value chain. Talented underwriters seek entrepreneurial environments with autonomous decision making, better equity upside, and modern technology. The Accelerant solution provides
existing MGAs with flexibility and greater control over their businesses. We deliver distribution management and operational, actuarial, regulatory, and stable capital support. We do this for both established MGAs, as well as underwriters looking to
form new MGAs through Mission Underwriters, which supplies start-up financing, in addition to turnkey, end-to-end technology and operational support. The accelerated formation of new MGAs continues to grow the market opportunity, producing a broader
potential Member base for Accelerant and gives participants on our Risk Exchange access to previously unavailable market niches.  **** ** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increased Need for Specialty Insurance Products:*** A variety of broad-based, fundamental shifts

AI, machine learning, and data analytics. Historically, the required technological and data capabilities could only be assembled within monolithic insurance companies. However, yesterday's mainframe now operates on every underwriter's
smartphone. By breaking down cost barriers, an increasingly distributed technology architecture has paved the way for entrepreneurial underwriters outside traditional insurance companies to introduce new products and processes to the market.

*Key "Demand-Side" Drivers:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Heightened Demand for Low-Volatility Risk:*** Historically,
attractive specialty, small-to-medium-sized enterprise ("SME") insurance risk has been retained by a small number of
Primary Insurance Companies, and therefore, inaccessible to many insurers, reinsurers, and institutional investors. This risk portfolio typically has a lower-volatility loss signature as compared to the P&C industry at large, given the smaller
size and complexity of the insureds' business models. Accelerant makes this otherwise difficult-to-access portfolio of specialty risk available to a broad range of
risk capital partners. Furthermore, we construct our portfolio to have low exposure to natural catastrophe risk. Concerns around changes in climate and challenges with evaluating these risks have driven risk capital partners to search for
lower-volatility risks to insure, such as those written through the Risk Exchange. Risk capital partners consistently identify the diversifying impact of our low-volatility portfolio as a primary driver for
joining the Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Modern Technology Promotes Cost-Effective Access to SME Policies:*** **  Legacy insurance
companies find accessing the SME market to be uneconomical, as their cost-to-service is high relative to premium volumes. Outdated processes result in onerously high
expense ratios that make it uneconomical to

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service smaller dollar policies, despite the attractive low loss ratios these policies often produce. We historically have a four percentage point general and administrative expense advantage versus our estimate of the market. Our proprietary technology removes these performance barriers through superior data collection, ingestion, and analytics. Our technology helps underwriters make better-informed underwriting and strategic decisions. Our Risk Exchange provides cost-effective access to this attractive segment for legacy insurers and reinsurers. We expect this to continue to attract more Risk Exchange Insurers directly onto the platform and increase the portion of the Risk Exchange premiums written by Risk Exchange Insurers relative to Accelerant-owned insurance companies. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Alternative Capital Increasingly Desires Non-Financially Correlated Returns:*** There is growing demand from institutional investors for the type of risk in our portfolio. Institutional investors value the returns associated with underwriting that exhibits a low correlation with financial market
conditions. In addition, the low volatility of the Risk Exchange portfolio further enhances this diversification. Historically, these institutional investors were limited to investing in short-term, narrow property catastrophe-focused opportunities.
Accelerant meets investor demand for opportunities to participate more broadly across the specialty P&C insurance market. Flywheel Re delivers superior diversification in a capital-efficient structure that allows investors to access attractive
returns across a large number of insurance products and across multiple underwriting periods.

**The Accelerant Advantage** 

Accelerant operates a data-driven risk exchange connecting specialty insurance underwriters with risk capital partners. Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

In a market characterized by multiple layers of intermediation, complexity, and ineffective technology and use of data, our competitive advantage is supported by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Data-Driven Insights and Technology:*** The traditional insurance value chain is beset by
inaccurate and incomplete data on underlying policies. Underwriters are unable to derive meaningful and actionable information that supports underwriting performance and risk capital partners lack high confidence in risk exposure and performance.
Based on our Members' experience, we estimate that a small fraction of the policyholder data that is collected at the start of the insurance value chain is typically shared with the end capital provider. We believe this resulting information
asymmetry leads to a market with artificially high prices and depressed volumes. We built Accelerant to solve these problems.

Our proprietary ingestion tools allow us to capture insurance data from disparate and complex data environments. We collect Member exposure data from both structured and unstructured environments and combine it into a single dataset that, as of March 31, 2025, consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from over one thousand unique data mappings. On average, in the first quarter of 2025, we ingested 8.9 million additional rows per month into our growing dataset. This high-fidelity, high-quality data is combined with third-party data and made available to both Members and risk capital partners in an actionable form. We believe that our digital capabilities and workflow tools will lead to better data, better analytics, and reduced effort at scale.

Our proprietary technology allows underwriters to select risks with the benefit of platform-driven insights and for our risk capital partners to gain transparency into the portfolio of risks they are assuming.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Member-Centric Culture:*** Accelerant is organized around its Members, seamlessly providing them
with the services they require to succeed, including distribution management and operational, actuarial, regulatory, and stable capital support. Key to our service model is the assignment of a dedicated expert

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support team to each Member, including relationship managers, claims adjusters, actuaries, underwriters, and data scientists. The legacy insurance industry tends to organize around product silos, connecting multiple disjointed nodes across several organizations. This results in a highly fragmented value chain which introduces high costs, large data loss, and structural fragility. We work with Members to launch new product offerings in approximately 14 weeks, compared to what we believe is the industry standard of six to 12 months. We provide our Members with a dedicated team of experts, which includes underwriting and data managers, alongside regular consultations to drive performance enhancement. We have protocols in place to ensure that we do not compete with our Members. Such protocols center around bespoke product uniqueness for each Member, transparency of Member competition and non-favoritism, and channel definition. This creates a dynamic that further differentiates us from the legacy market. There may be potential Members that are less interested in becoming a Member because of our investment in other Members that are perceived to be competitors, but based on our experience, we believe the likelihood of this is low. Our Member-centric culture and the breadth of our capabilities allow us to attract and retain what we believe to be the industry's best underwriters in their respective specialties. <br>

We provide Members with long-term capital and operational support so that they can plan for the longer term and focus on their core businesses. We believe taking a longer-term view promotes faster, more profitable and more durable growth for Members. In exchange for a five-year capacity commitment from us, our Members provide us with exclusivity agreements on a rolling, five-year basis. We provide Members with data and analytics, portfolio management, assistance with product expansion, and widening distribution networks. Our commitment to supporting our Members' growth is evidenced by our Net Revenue Retention of 157% for the trailing twelve months ended March 31, 2025 and third-party generated NPS score of 89 in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Disciplined Approach to Sourcing, Managing, and Monitoring Risk:*** Our methodology of carefully
sourcing, managing, and monitoring risk enables us to develop our portfolio of specialty risk. We source prospective new Members through our industry network and market referrals and make selections based on their loss ratio track records. Our
current focus is predominantly on commercial, low-limit SME lines of business. Our existing portfolio of products consists of commercial combined, property owners and professional indemnity products together
with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance
products the SME owner would need or seek to obtain in each niche. We take a disciplined approach to managing and monitoring risk in collaboration with Members that combines our data insights with advice from insurance industry veterans. We meet
with each Member monthly to review their portfolio performance, and our technology stack enables us to derive data-driven insights that uncover hidden opportunities and potential vulnerabilities in a Member's portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Diverse, High-Quality Risk Capital Partners:*** Maintaining long-term relationships with our risk
capital partners is a key component of our business and revenue model. Whether they participate on the Risk Exchange directly or through reinsurance, we have partnered with a broad group of high-quality risk capital partners who are attracted to the
Risk Exchange by the portfolio's consistent and profitable underwriting performance. We have grown the number of risk capital partners on our platform from two in 2019 to 28 in 2020 to 96 as of March 31, 2025. Our existing risk capital
partners include blue chip insurance and reinsurance companies with substantial balance sheets that have the capacity to support the pace of our growth and could singularly support our entire portfolio today. Continued strong demand from risk
capital is an important contributing factor to our robust Member pipeline. Additionally, we intend to continue to increase the portion of the Risk Exchange premiums written directly and retained by Risk Exchange Insurers and reduce the portion
written by Accelerant Underwriting, which will shift even more of our revenue model to being fee-based.

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**Our Growth Strategy** 

Since inception, we have grown Exchange Written Premium at a 217% compounded annual growth rate. We believe we will continue to maintain strong revenue growth based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Growing Existing Members' Businesses*:** Our Members are the key to our success –
when they succeed, we succeed. We believe our existing Members will continue to expand as they capture greater market share, introduce new products, and enter new regions. Accelerant's exclusivity arrangements and rights of first refusal on new
product launches promote new product growth on the Risk Exchange. Accelerant's long-term five-year capacity commitment allows our Members to plan for the future with confidence, focusing on new opportunities, rather than sourcing underwriting
capacity. These factors have led to our Members growing premiums written on the Risk Exchange by over 39% annually on a weighted-average basis. Additionally, not all products written by our Members are written through the Risk Exchange. In 2023, in
Europe and the U.S., approximately 59% and 58%, respectively, of Members used both the Risk Exchange and other third-party capital providers to secure their capacity. We believe this presents a significant opportunity for the Risk Exchange to
increase its wallet share and capture even more of those Members' premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Attracting New Members:*** Adding new Members to our platform has been a significant source of
growth historically, and we expect this to continue in the future. We began with three Members in 2018 and had 232 as of March 31, 2025. Our expert client-facing service model, proprietary technology offering, and long-term capacity attract
prospective Members to our Risk Exchange. We had over 300 additional MGAs in our evaluation pipeline as of March 31, 2025, which collectively reported $2.5 billion in annual premiums. We expect our comprehensive diligence process when
selecting members as well as our growing Member base and increasingly diversified portfolio to drive further interest from additional risk capital partners and, in turn, reinforce the Risk Exchange's value proposition to existing and
prospective Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding Our Product Portfolio:*** Our portfolio is focused on low-volatility, low-severity SME commercial risks. This market segment within our focal lines of business and geographies is large, estimated at $117 billion of
premium for 2022, giving us considerable room to expand. We intend to prudently expand into selected additional lines of business, bringing our estimated serviceable market to $252 billion. As we continue to scale, we believe there are
specialty underwriters that excel in larger-market commercial, commercial auto, workers' compensation, and specialty personal lines whom we can attract to our Risk Exchange while maintaining the same high-quality portfolio. We will always
endeavor to attract the highest quality underwriting talent to our Member base, notwithstanding the niche or line of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Geographic Expansion:*** As of March 31, 2025, 40% of our total Members were in Europe,
including the UK, 50% in the U.S., and 10% in Canada. We intend to grow with our existing product portfolio by adding additional countries to our operation. Our geographic expansions to date have been successful and we believe our operating
footprint and globally integrated technology platform position us well to capitalize on opportunities in new countries. In the near-term, we believe that Australia and continued expansion in Canada represent attractive growth opportunities given
their combination of high MGA penetration and similar structural challenges present in their legacy insurance marketplaces. We are always evaluating other global expansion opportunities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding to New Member Types*:** To date, our Members have been MGAs primarily focused on
specialty insurance. We have been successful in addressing these clients' needs, and we believe there are other sizable Member types which have similar structural challenges that would benefit from a relationship with us. In particular, captive
insurance companies constitute a $176 billion global market and face similar challenges as our existing specialty Members. Captives represent entities engaged in self-insurance, either standalone (e.g., single business) or as a group of related
insureds forming a jointly owned insurance vehicle. Captives have identified inflexible and unreliable insurers, poor data transparency, high expenses, and slow response times as key challenges to their operations – each of

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which our platform could address. From our perspective, the aligned incentives inherent in the captive model result in more attractive risk than other markets. As of March 31, 2025, we had nine Members engaging in captive business.

Along with the opportunity to provide retail brokers access to the suite of products offered by our Members, we believe we can expand our existing partnerships with retail P&C insurance brokers that have specific areas of expertise and could enhance their economics by establishing a joint venture MGA with Accelerant. Our Mission Underwriters business will help facilitate this venture, which will begin with the establishment of a new MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Deepening and Broadening Relationships with Risk Capital Partners:*** We have diverse, stable, and
high-quality risk capital relationships, including 13 Risk Exchange Insurers operating directly on the Risk Exchange, 79 third-party reinsurance companies, and four institutional investors contributing capital to Flywheel Re as of March 31,
2025. Our existing risk capital partners maintain substantial balance sheets and have the capacity to support our current and anticipated future growth. While we do not need to add any other risk capital partners to keep pace with our growth, we
expect to continue to expand the number of risk capital partnerships in response to the growing demand for our value proposition, which will drive increased competition for low-volatility, low-severity risk, providing enhanced terms and more favorable economics for the Risk Exchange. Writing more premium directly with Risk Exchange Insurers will shift even more of our revenue model to being fee-based.

**Our Technology and Data Platform** 

Our proprietary, purpose-built technology and data platform is a critical part of executing our vision for the Risk Exchange, which is to provide greater transparency and shared information across the entire value chain.

Underpinning the Risk Exchange's value proposition for our Members, are our data and technology capabilities that we believe are unmatched in the industry. We ingest and combine data from a variety of sources (e.g., policy and claims systems), augment it with third-party data, and analyze that information for the benefit of all Risk Exchange participants. Accelerant captures all available data on risk exposures and claims – we do not have to leave data behind because of technological limitations. By ingesting structured and unstructured data, we can preserve data that is often lost across the insurance value chain. As of March 31, 2025, our dataset consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from one thousand unique data mappings, and we have ingested an average of 8.9 million additional rows per month in 2025. Once ingested, data is validated, transformed, and governed into robust and tailored underwriting intelligence that is available to Members and risk capital partners alike. We use several third-party technologies and services, including LLMs, to support this data ingestion, our analytics, and the Risk Exchange as a whole. As a result, our Risk Exchange lessens information asymmetries, enabling trust between Buyers and Sellers on our platform.

Our Members and risk capital partners derive significant value from our data and analytics platform and their specific needs and usage patterns continuously evolve. We seek to regularly enhance the delivery and functionality of our data and analytical capabilities utilizing workflow tools and our cloud-native, digital platform that offers Risk Exchange participants a single, secure place to operate. Examples of our data and analytics advantage include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Accelerant Risk Indexing:** We generate a proprietary risk score on individual risks to improve selection
and pricing for select Members today. By introducing third-party data in the form of distance to the nearest pub and area crime incidents, we helped a Member improve their gross loss ratio by 5.3% when back testing the Member's data, which is a
significant improvement to the underwriting profit for our risk capital partners. We expect to compound these data-driven inputs continuously to make our portfolio stronger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Claims Recovery Model:** We employ an LLM to analyze our Accelerant-sanitized data and help identify the
claims with the highest likelihood for subrogation (i.e., recovery) in the United Kingdom.

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Thus far, we have improved our subrogation rate from 0.5% of claims to approximately 2% of claims, leading to an estimated 1% improvement in gross loss ratio, assuming a portfolio gross loss ratio of 50%, which is a significant improvement for our risk capital partners. As our model continues to develop and train, we aim to further reduce subrogation rates and derive other actionable insights. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) **Underwriting Referrals:** Our platform centralizes underwriting referrals, which we believe is more
efficient than email-based referrals and also leads to faster decision-making. We receive over 4,300 referrals from our Members or would-be Members each month. We believe referrals with a decision within 48 hours are necessary for 90% of the
commercial market, so speed and consistency of response are highly valuable. We are told by Members that our platform saves them approximately 30 minutes per referral, which when combined with our unique selling proposition of a 69-day average
Member onboarding cycle can drive growth and opportunity.

We have assembled a team of over 150 highly skilled engineers, data scientists, product managers and designers whose collective expertise spans a broad range of technical areas. As of March 31, 2025, these team members represented 32% of the Accelerant workforce. We continue to make significant investments in the development of our data, analytics, and AI.

**Our Operating Segments** 

We operate our business across three operating segments – Exchange Services, which is the core offering of Accelerant, MGA Operations, and Underwriting.

***Exchange Services***

The Exchange Services segment is our core business, our Risk Exchange – the Accelerant technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. We derive revenue in this segment from contractually fixed fees based on premium volume, paid by risk capital partners for sourcing, monitoring, and managing their risk portfolios.

The Risk Exchange benefits from a powerful network effect. We believe that as more Members join Accelerant's platform, more experience data is collected and ingested, driving better underwriting intelligence, industry-leading loss ratios, more scale and more efficiency. We believe this will continue to drive more interest from institutional investors, insurance companies, and reinsurers who will find the Risk Exchange to be a highly differentiated and low friction way to access a very attractive portfolio of business. We believe that the increase in capital attracted to the Risk Exchange will provide more optionality and capacity stability, drawing more specialty underwriters to the Risk Exchange and further amplifying the network effect.

For the trailing twelve months ended March 31, 2025, the Risk Exchange placed $3.5 billion of Exchange Written Premium, representing 73% period-over-period growth compared to the trailing twelve months ended March 31, 2024. We expect this segment will become an increasing majority of the earnings reported within our consolidated financial statements.

***MGA Operations***

Our MGA Operations segment captures the economics of both Mission Members and Owned Members in which Accelerant has a minority equity ownership interest, reflecting such earnings as equity method income, or in which Accelerant has a controlling stake, reflecting such earnings fully within our consolidated results. Mission Underwriters represents the largest component of this segment. Mission Underwriters provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters looking to launch their own MGAs. We own the majority of every MGA that Mission Underwriters helps to create, with meaningful equity shared with management teams based on the performance of their MGA. Mission Underwriters allows Accelerant to

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directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance companies to start their own independent platforms. Mission Underwriters expands our addressable market.

MGA Operations also provides us with the opportunity to make attractive, long-term investments in existing Members, driving alignment of interest, as well as enabling Accelerant to participate in the value the Risk Exchange creates for MGAs.

Owned Members that were already Members prior to investment in Accelerant have grown premium with Accelerant by 57% on an average basis for the comparable months in the 12-months post-acquisition. To date, we have invested in 16 MGAs (which we call "Owned Members"), most of the time acquiring a minority stake, twelve months after the MGA has been a Member on our platform, with a call option to allow us to take a majority stake over time.

The MGA Operations segment included activity from 47 Members who collectively produced GWP of $1.03 billion for the trailing twelve months ended March 31, 2025 (the 16 Owned Members within this group produced $407 million of GWP).

***Underwriting***

Our Underwriting segment contains all revenue and expenses associated with Accelerant Underwriting. We view our owned insurers and reinsurer as strategic assets and sources of operating flexibility. As we began operations, our owned insurance companies promoted alignment with our risk capital partners by demonstrating our steadfast focus on sourcing the most attractive specialty risk. Our reinsurer and institutional investor risk capital partners access premium on the Risk Exchange through reinsurance from Accelerant Underwriting and from the quota share arrangements Accelerant Re Cayman writes with our Risk Exchange Insurers. For the trailing twelve months ended March 31, 2025, 92% of premiums written by Accelerant Underwriting were ultimately reinsured to third-party risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

For the three months ended March 31, 2025, the Underwriting segment had retained net written premiums and net earned premiums of $72.4 million and $63.0 million, respectively. In the future, as third-party risk capital partners increasingly directly access the Risk Exchange, we expect revenue in the Underwriting segment to grow more slowly than in the Risk Exchange segment.

**Our Members *("Supply Side" of our Risk Exchange)*** 

Our Members are experienced specialty underwriters that produce attractive loss ratios. The Members with whom we partner are typically MGAs with $10 to $40 million in premium, a headcount of 15 to 30 employees, and an average tenure of 15 years, operating independently of insurance companies, with delegated authority to underwrite risk on an insurance company's behalf. We select Members that have an impressive track record of underwriting low-volatility, low-limit, low-hazard risks. The quality of the portfolio written by our Members is highlighted by our gross loss ratio of 53%, 54%, and 51% for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, respectively. Through our rigorous vetting process, we review prospective Members across a range of areas including underwriting, actuarial, compliance, claims, technology, and key talent. Typical criteria we use in screening for new prospective Members include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3-to-5-year underwriting track record, either as a standalone MGA or as part of larger organization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Predominantly commercial, low-limit SME risk focus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriter-led culture with focus on maintaining profitable business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Typical annual premium volumes of $3 million to $100 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Robust data capture capabilities that can be shared with our Risk Exchange

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When our Members join the Risk Exchange, we onboard them typically within 14 weeks, and sometimes in as little as two weeks. The speed to market we provide is reinforced by our expert service model and technology capabilities.

Our commitment to our Members and the quality of the Risk Exchange portfolio continues long after a Member is onboarded. We are in weekly contact with our Members to understand their primary needs and identify action plans quickly. We regularly conduct formal reviews (usually monthly) on each Member's performance and strategies. These reviews are informed by the high-fidelity data we ingest and transform into actionable insights. Our Members receive a five-year capacity commitment which is renewed annually. This multi-year capacity commitment enables them to focus on underwriting performance and to scale efficiently. As part of the capacity commitment, the Risk Exchange becomes the exclusive network of capacity providers for the Member for the product being written through the Risk Exchange and Accelerant receives a right of first refusal with respect to any new product that they may launch. We retain the right to cancel any Member capacity commitment if we view underwriting performance to be deteriorating without the prospect of remediation action to be able to improve performance. To date, the Company has terminated its agreement with 12 Members—seven after they proved unable to scale new products, four because of poor underwriting performance or breached authority, and one that was sold to a third party. Three additional Members have merged into another Member.

Our Members' weighted average annual growth rate of premiums written on the Risk Exchange of 39% per year, which includes both growth of existing products on our platform and our Members launching new products on our platform, underscores the accelerating growth of Members when they work with Accelerant.

![LOGO](g543111g03g03.jpg)

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Our Member base is highly diversified across both geographic regions and the products and classes of business they write. Our largest member accounted for 8% of our Exchange Written Premium for the trailing twelve months ended March 31, 2025.

![LOGO](g543111g03k12.jpg)

(1) Excludes Mission Members.

The above Member information is as of March 31, 2025, and the above premium information is for the trailing twelve months ended March 31, 2025.

**Member Case Studies** 

We believe these case studies are reflective of the value proposition of our platform to all our Members and have included them here to demonstrate how our Risk Exchange generates value for Members. When we onboard new Members, we expect them to be self-sustaining businesses, but we seek to enhance their performance through our platform, network, and expert service model.

*Member A* 

Member A, a UK-based MGA specializing in high-net-worth households, among other markets, joined Accelerant as a Member in early 2020.

In 2021, in the course of our meetings with the Member, our data analytics platform identified signs of performance deterioration in a number of products translating to increasing loss ratios. The platform further calculated expected claims by product. The analytics, together with the expert underwriters at the Member and at Accelerant, led us to identify the coverages presenting the highest risks, calculate expected claims, and ultimately determine that certain policies were underpriced.

We developed a remediation plan that included exiting some poor-performing products, redesigning the coverage provided in other products where our analytics indicated this was required, and taking targeted rate actions in other products, leveraging our tools to design pricing changes to retain the best insureds and avoid the worst. We reviewed the progress against this plan through regular check-ins with the Member and our ongoing data oversight.

This Member's loss ratio has shown significant improvement, declining from over 100% for underwriting year 2020 to 49.6% for underwriting year 2024.

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*Member B* 

Member B, a U.S.-based MGA joined as a Member in January 2021. At that time, Member B was writing approximately $10 million in GWP through a single product focused on a specific type of agricultural risk.

Member B was evaluating growth opportunities to diversify its portfolio. With our help, Member B introduced two additional products in its underwriting portfolio. Facilitated by our data analytics, Member B also engaged in targeted rate change, property exposure management, and claims management that increased portfolio profitability. Within our Risk Exchange Member community, Member B has been actively collaborating with other Members on best practices for distribution, underwriting, and claims management.

Within two years of joining the platform, Member B nearly doubled its annual premiums (consistent with other Members who joined during a similar time period) and considerably reduced its loss ratio (to a greater extent than other Members who joined during a similar time period).

**Our Risk Capital Partners *("Demand Side" of our Risk Exchange)*** 

Premium generated from Members is centrally managed by our Risk Exchange and placed with a diverse stable of high-quality risk capital partners or Accelerant Underwriting. Our risk capital partners include 13 Risk Exchange insurance companies, 79 third-party reinsurers, and four institutional investors contributing capital to Flywheel Re as of March 31, 2025.

The majority of the Risk Exchange's business that is placed with our reinsurers and institutional investor partners is written directly by Accelerant-owned insurance companies within the U.S., Canada and Europe. The risk is then reinsured, save for a small retention, to Accelerant Re Cayman, our Cayman-incorporated reinsurance company. Reinsurers and institutional investors access the business pooled at Accelerant Re Cayman via quota share, excess of loss, and stop-loss reinsurance arrangements. In 2022, capital from institutional investors was raised to establish Flywheel Re and support business assumed by Flywheel Re during a multi-year risk period ending in June 2025. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025. Additional capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. Flywheel Re is a special purpose reinsurance entity that participates in the Risk Exchange portfolio on a multi-year basis. We expect Flywheel Re to become a larger part of our risk capital offering as this source of risk capital adds diversification, predictability, and stability to the "demand side" of our platform. The participation of institutional investors and reinsurers also diversifies our sources of risk capital and introduces competitive tension that regulates the cost of capital. Our reinsurer and institutional investor risk capital partners comprise highly rated, third-party reinsurers, the significant majority holding an "A-" or better rating from A.M. Best or acting on a collateralized basis, and are sufficiently capitalized to support our planned growth over the years, subject to their appetite. Our largest reinsurance relationship represented 14% of Exchange Written Premium for the three months ended March 31, 2025.

The balance of the Risk Exchange's business is written by third-party insurance companies, in which we do not have an equity stake or any form of ownership and which access the Risk Exchange directly and authorize Accelerant agencies and brokers to source, manage, and monitor the risk. Risk Exchange Insurers that join the Accelerant Risk Exchange can select the business they write based on product and geography. We do not have an equity stake or any form of ownership interest in any of our risk capital partners, including Flywheel Re, but one of our Risk Exchange Insurers, Hadron (an insurer newly formed in 2023), is sponsored by our equity sponsor, Altamont Capital. See "Certain Relationships and Related-Party Transactions—Hadron." We actively manage the portfolios of the Risk Exchange Insurers to ensure both their own portfolios and those across the platform remain well-balanced from a relative volatility and expected profit perspective. Through March 31, 2025, 13 third-party insurance companies have directly joined the Risk Exchange and contributed 19%, 16%, and 10% of Exchange Written Premium for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023,

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respectively. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period with the balance contributed by Accelerant Underwriting.

As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for premiums written and retained by Risk Exchange Insurers to represent a significant portion of the overall Exchange Written Premiums over the next several years and the capital requirements of our enterprise to decline.

For the trailing twelve months ended March 31, 2025, our Exchange Premium written by risk capital type was as follows:

![LOGO](g543111g00p05.jpg)

Risk Exchange Insurers may seek our help in securing reinsurance capacity given the breadth of our relationships. In these instances, we can help them establish reinsurance relationships with other risk capital partners as well as reinsure an agreed-upon portion of premium at Accelerant Underwriting. We maintain a capital-efficient Underwriting segment, with 92% of premium written by Accelerant Underwriting during the trailing twelve months ended March 31, 2025 reinsured to risk capital partners via quota share and excess of loss arrangements. Third-party reinsurers and institutional investors reinsured 69% and 23% of Accelerant GWP, respectively, during the trailing twelve months ended March 31, 2025. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

To bolster the risk profile of the Risk Exchange portfolio, we buy inuring excess of loss protection from third-party reinsurers to mitigate the impact of significant loss events. We secure this as additional volatility protection across the entire portfolio, enhancing the value and predictability of our portfolio to risk capital partners.

**Risk Management** 

The Company maintains an enterprise risk management framework to address existing as well as emerging risks that could impact us, and our performance. The framework:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is embedded in both the organizational structure and strategic oversight process, supported by appropriate
internal control policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is supported by information systems that appropriately capture underwriting, investment, and operational data
and provide relevant, accurate, and timely information to the applicable business functions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has incorporated techniques necessary to identify, measure, respond to, monitor, and report, on an individual
and aggregate level, all material risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides for periodic reviews of the operating environment to ensure material risks are assessed and
monitored, and appropriate actions are taken to manage exposures and adverse developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• specifies objectives, risk appetite and risk tolerance levels, and appropriate delegation of oversight,
reporting, and operating responsibilities across all functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides for reporting systems that are appropriate to the Company's business activities taking into
consideration any outsourcing of responsibilities and safeguarding of assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• documents all significant policies and procedures associated with the framework.

**Claims** 

We have experienced claims teams, consisting of 39 in-house claims professionals with cross-jurisdictional experience. Claims are primarily handled by TPAs, with claims authorization up to $250 thousand per claim (as adjusted for applicable currency). Claims in excess of authorized levels involve oversight from our claims professionals. TPAs are selected by the Risk Exchange with input from the Member and based on the TPA's specific insurance expertise in the product type as well as the TPA firm's ability and willingness to transfer claims data. This is unusual in the specialty market and disqualifies some TPAs from handling Risk Exchange business. We make claims data and case-specific actions available to our Members and risk capital partners, enabling them to quickly understand and respond to claims and market trends, which ultimately results in efficient claims management and overall portfolio performance.

**Competition** 

The specialty insurance industry consists of many markets and sub-markets around the world, each with distinct products, services, and regulatory considerations. It is fragmented by layers of intermediation and served by a broad range of incumbents tackling only small portions of the specialty insurance value chain.

We believe our competition includes a broad range of business types, addressing only one piece of our value proposition rather than delivering a holistic solution similar to ours. Incumbents serving specialty underwriters today include the Lloyd's market, local insurers, and fronting companies. We believe that traditional insurance companies' and industry participants' cost structures, approaches to compliance issues, and transactional approach towards MGAs combine to deter the potential success of MGAs. Incumbents also tend to move slowly in onboarding MGAs, to be less focused on delivering service and support, and may look for opportunities to quickly replace MGAs with their own direct distribution. Many fronting companies often have short-lived, brittle, and single-program reinsurance relationships that they require MGAs to source themselves. We believe that very few of these incumbents provide the data transparency or tools that fuel an MGA's success.

Existing and newer industry participants may attempt to replicate our business model, but we believe that the competitive moat around Accelerant remains very wide.

Traditional insurance companies and industry participants are organized around product silos and their technology is typically hampered by legacy systems which are not easily replaced due to regulatory requirements. Traditional insurers tend to have distribution channels that compete directly with MGAs, and that they are unwilling to solely focus on MGAs. Traditional reinsurers also have large balance sheets burdened by significant loss reserves. These companies rely on underwriting income today to earn a return on the capital required to support these loss reserves, making it unlikely they would share a large portion of their stable and profitable premium with other risk capital partners.

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Fronting companies generally do not have the technological resources or the expertise required to monitor the business they allow others to write on their behalf. The fronting business model is generally low-cost, providing only the bare essential regulatory reporting capabilities to the transaction, generally requiring the underwriters to arrange their own program-specific reinsurance. We believe a significant shift in business model would be required for fronting companies to provide the breadth of services that we provide to participants on the Risk Exchange.

We believe technology-first or "insurtech" companies have also struggled to be successful in our market. While superior technology is an important capability to be successful, these companies often struggle without a team of insurance industry experts to manage underwriting results, regulators and rating agencies.

Brokers and other intermediaries generally also lack experience with underwriting, regulators and rating agencies. Additionally, they have not generally made investments in technology that allow them to understand the exposures of the business they intermediate, and their focus has been more on sales-generating data.

Altogether we believe we have created a differentiated specialty insurance platform due to factors including but not limited to our data and technology capability, regulatory barriers, rating agency requirements, and capacity access.

**Intellectual Property** 

We rely on a combination of copyright, trademark, trade dress and trade secret laws in the U.S. and other jurisdictions, as well as confidentiality procedures and contractual restrictions, to establish and protect our intellectual property and proprietary rights. These laws, procedures, and restrictions provide only limited protection.

We have registered "Accelerant" and the logo design for Accelerant, "Mission Underwriters" and the logo design for Mission Underwriters, and numerous of our other brand names and logos as trademarks in the U.S. and other jurisdictions. We have also registered numerous internet domain names related to our business. We also rely on common-law trademark protection to protect other types of our intellectual property.

We enter into agreements with our employees, contractors, clients, partners and other parties with whom we do business to limit access to and disclosure of our proprietary information. We cannot assure you that the steps we have taken will be sufficient or effective to prevent the unauthorized access, use, copying or the reverse engineering of our proprietary information, including by third parties who may use our proprietary information to develop products and services that compete with ours. Moreover, others may independently develop products or services that are competitive with ours or that infringe on, misappropriate or otherwise violate our intellectual property and proprietary rights, and policing the unauthorized use of our intellectual property and proprietary rights can be difficult. The enforcement of our intellectual property and proprietary rights also depends on any legal actions we may bring against any such parties being successful, but these actions are costly, time-consuming and may not be successful, even when our rights have been infringed, misappropriated or otherwise violated.

Furthermore, effective copyright, trademark, trade dress and trade secret protection may not be available in every country in which our products are available, as the laws of some countries do not protect intellectual property and proprietary rights to as great an extent as the laws of the U.S. In addition, the legal standards relating to the validity, enforceability and scope of protection of intellectual property and proprietary rights are uncertain and still evolving.

Companies in the insurance industry may own large numbers of copyrights, trademarks and other intellectual property and proprietary rights, and these companies and entities have and may in the future request license agreements, threaten litigation or file suit against us based on allegations of infringement, misappropriation or other violations of their intellectual property and proprietary rights.

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**Information Security** 

We face external threats to our information technology systems and data, including the possibility of system failure, attempts to steal our customer data, ransomware, phishing and other cyberattacks. We designed our technology infrastructure to function through disruptions, including significant disruptions, and replicate our data in real time to a third-party cloud disaster recovery site for use in the event of a major system failure. We also back-up our data (immutable) daily for system restoration if needed. Additional actions we take to prevent disruptions to our systems and data include: actively monitoring Cybersecurity and Infrastructure Security Agency's cybersecurity directives, taking immediate action on any vulnerability identified in a directive; continuous vulnerability scans on all network attached devices, at all locations, with patching applied whenever needed; leverage context based authentication and authorization methods; requiring two-factor authentication for access to any of our systems; conducting regular human risk management activities including training simulated phishing and communications; implementing endpoint detection agents for threat detection and response; performing tabletop scenarios to practice responses to breaches involving our cybersecurity insurance partners and retained security consultants; and performing annual penetration testing. We regularly review our security breach posture and regularly implement updated processes, best practices and tools.

**Product and Feature Development** 

We aim to continuously improve our platforms and to develop new features for our Risk Exchange participants. Our product development philosophy is centered on continuous innovation in creating products that are designed to place our users, their businesses and the interactions with us at the core of the product experience.

***Digital Platform***

Our platform is a single, secure place for our Risk Exchange participants to operate. Risk Exchange participants will leverage the digital platform to increase their productivity and drive business results via portfolio insights, analytical and workflow tools. Members also have access to a virtual community through our platform to drive network effects across the ecosystem of Risk Exchange participants. In select instances, the virtual community has created cross-sell opportunities amongst Members. Through the offerings of the virtual community, Members have already been able to achieve tangible economic benefits from the relationships they have cultivated within our network.

***Data, Analytics & AI***

Our Data platform is designed to capture and ingest data from a variety of sources from Member bordereaux files to third-party data and other source systems via API. Incoming data is validated, transformed, and governed before being leveraged by our SaaS platform where Members and Risk Exchange Insurers can consume analytics and insights. Members have access to consolidated, easy to consume portfolio dashboards that show the overall performance of their book of business across GWP versus plan, retention, rate change, claims analysis and loss emergence. Members are able to drill into details of the summary metrics to understand performance against plan over time using the high-quality data that we have captured and cleansed. In addition, Members can build and manage custom reports by selecting and filtering on data fields that are most relevant to their business.

***Architecture***

Legacy technology creates challenges for insurers and MGAs, who are increasingly looking for modern solutions as the industry shifts to a cloud-based model. Our platform was built from the ground up to take advantage of the cloud and modern data technologies. Accelerant's Data and digital platforms are all deployed on Amazon Web Services public cloud infrastructure in one region and three availability zones. Our microservice architecture allows for flexible scaling and rapid development as we evolve our architecture.

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***Research and Development***

Our research and development organization is responsible for the design, development, testing, and delivery of new technologies, features, integrations, and improvements of our platform. It is also responsible for operating and scaling our platform, including the underlying public cloud infrastructure. Our research and development organization consists of teams specializing in software engineering, product management, product design, data engineering and machine learning engineering. We intend to continue to invest in our research and development capabilities to expand our platform.

**Employees and Culture** 

Our culture is the foundation of everything we do. Our employees are our greatest asset, and we strive to foster a productive, cross-border working environment that embodies our core values. We firmly believe in transparency, teamwork, sharing individual and team successes, and building a resilient, entrepreneurial, and productive workforce of the future.

**At Accelerant, we are:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Member-centric

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A team of experts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fast and Wise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Aggressively transparent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Building for the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Innovative and flexible

**We believe:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In putting authority and accountability as close to the customer as possible

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The only success is shared success

**We commit to:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assume positive intent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maximum sustainable effort. Every day.

Our remote-first working environment enables us to attract and engage top industry talent not only in our core geographies – the U.S., the UK, Europe, and Canada – but also on a global stage. We are committed to cultivating and preserving a diverse and inclusive workforce that reflects the cultures and communities of our global footprint. As of March 31, 2025, we have 490 Accelerant Exchange Services, Underwriting and Corporate employees around the world, and an additional 245 Mission employees. We also engage temporary employees and contractors directly or through third-party vendors and agencies.

We are conscious that in a remote working environment, effective and transparent communication is a business imperative. Every week, our founders host global "All Hands" meetings virtually to share key business updates, successes, and initiatives and to welcome new hires. At the department level, teams host similar meetings on a regular basis.

Our key differentiators are not only our talent and expertise, but also the creativity and execution we deliver on behalf of our Members and risk capital partners. Our method of attracting and retaining the best people is

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matched only by our entrepreneurial spirit and passion for excellence. This is made possible by our colleagues feeling empowered and involved, as demonstrated by our high employee retention and engagement. In our 2022, 2023, and 2024 employee surveys, completed by 184, 238, and 369 of our employees, respectively, employees reported an average satisfaction rate of 85%.

Lastly, every employee has a financial stake in our success. In keeping with our value of "the only success is shared success," employees that have been with the organization for a minimum period are expected to have an interest in our equity performance.

**Facilities** 

We currently lease small office spaces in certain locations including Atlanta, New York City, Colorado Springs, Bermuda, Grand Cayman, Brussels, Dublin, London and Malta, including a lease with a co-working company providing access to multiple locations across the U.S. Substantially all of our employees work remotely. We maintain our corporate headquarters in the Cayman Islands. As we expand, we believe suitable additional or substitute space will be leased as and when needed.

**Legal Proceedings** 

Other than in the ordinary course of our business operations, we are not currently party to any civil or government investigation. We do not expect that the ultimate outcome of any of the currently ongoing legal proceedings, individually or collectively, would have a material adverse effect on our business, financial condition, results of operations, or prospects. However, the results of litigation and arbitration are inherently unpredictable, and the possibility exists that the ultimate resolution of matters to which we are or could become subject could result in a material adverse effect on our business, financial condition, results of operations or prospects.

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**REGULATION** 

**Insurance Regulation** 

<u>United States Regulation</u> 

*Insurance Regulation in General* 

We are regulated by insurance regulatory authorities in the states and countries in which we conduct insurance-related business activities. In the U.S., authority for the regulation, supervision and administration of the business of insurance in each state is generally delegated to a state insurance commissioner who oversees a regulatory body responsible for the supervision of the business of insurance. In addition, the NAIC, comprised of the insurance commissioners of each U.S. jurisdiction, develops or amends model statutes and regulations that, in turn, most states adopt.

In general, such insurance laws and regulations are designed to protect the interests of policyholders, consumers, and claimants rather than shareholders or other investors. State regulatory authorities generally have broad administrative power relating to, among other matters, setting capital and surplus requirements, licensing of insurers and insurance producers, review and approval of product forms and rates, establishing standards for reserve adequacy, statutory accounting methods, statutory financial reports, regulating certain transactions with affiliates, and prescribing types and amounts of investments.

The U.S. state-based insurance regulatory system is in a constant state of change, as state governmental agencies and legislatures adapt to market and political circumstances. In recent years, the state insurance regulatory framework has come under increased federal scrutiny, and some state legislatures have considered or enacted laws that alter and, in many cases, increase, state authority to regulate insurance companies and insurance holding company systems. Further, the NAIC and some state insurance regulators are re-examining existing laws and regulations specifically focusing on issues relating to the solvency of insurance companies, interpretations of existing laws and the development of new laws. Although the federal government does not directly regulate the business of insurance, federal initiatives often affect the insurance industry in a variety of ways. In addition, the FIO was established within the U.S. Department of the Treasury by the Dodd-Frank Act in July 2010. The FIO monitors all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system, although the FIO has no express regulatory authority over insurance companies or other insurance industry participants.

*Required Licensing* 

Our business activities are subject to licensing requirements and extensive regulation under the laws of the various states and countries in which we operate. Regulatory authorities in the states or countries in which our operating subsidiaries conduct business may require individual or company licensing to act as insurers, producers, brokers, agents, TPAs, MGAs, reinsurance intermediaries, or adjusters.

Under the laws of most states in the United States, regulatory authorities have relatively broad discretion with respect to granting, renewing, and revoking insurer, producer, broker, and agent licenses to transact business in the state or country. The operating terms may vary according to the licensing requirements of the particular state, which may require that a firm operate in that jurisdiction through a local corporation. Our subsidiaries must comply with laws and regulations of the jurisdictions in which they do business. These laws and regulations are enforced by federal and state agencies in the United States.

All insurance is written through licensed agents and brokers. In jurisdictions in which we operate on a surplus lines basis, surplus lines brokers are generally required to certify that a certain number of licensed admitted insurers had been offered and declined to write a particular risk prior to placing that risk with us or that the coverage is otherwise unavailable from an admitted carrier.

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Accelerant Holdings is the ultimate parent company for three insurance company subsidiaries located in the United States. ASIC is domiciled in the state of Arkansas and operates on a surplus lines basis; ANIC is domiciled as an admitted carrier in the State of Delaware to transact certain lines of P&C; and Accelerant Re I.I. is domiciled in Puerto Rico as an international insurance company and is authorized to transact property and casualty reinsurance in Puerto Rico. Several states impose heightened regulation on non-domestic insurers that write a significant portion of the insurers' premium in that state. When a foreign insurer meets the specified threshold, these states consider the insurer to be "commercially domiciled," triggering that heightened regulation. All of Accelerant's insurance carrier subsidiaries' licenses are in good standing, and, pursuant to applicable state and national laws and regulations, will continue in force unless otherwise suspended, revoked or otherwise terminated, subject to certain conditions.

ANIC currently operates on an admitted basis in all fifty states and the District of Columbia and must maintain an insurance license in each state in which it transacts the business of insurance. ASIC currently operates on a surplus lines basis in all fifty states and the District of Columbia. While ASIC does not have to apply for and maintain a license in those states (with the exception of its domiciliary state of Arkansas), it is subject to maintaining eligibility standards or approval under each particular state's surplus lines laws to be included as an approved surplus lines carrier. In states in which ASIC operates on a surplus line basis, it has freedom from rate and form filing requirements for the majority of its business. This means that ASIC can implement changes to policy forms, underwriting guidelines, or rates for a product on an immediate basis without regulatory approval. Accelerant Re I.I. will reinsure U.S. risks, including Puerto Rican risk, as well as international risks.

AUM is the full-service U.S. program management affiliate of Accelerant. AUM is a MGU domiciled in the state of Georgia and provides a full suite of data-driven, underwriting-led program management services to multiple Risk Exchange Insurers, including ASIC and ANIC. AUM provides the Risk Exchange Insurers with extensive platform services, such as due diligence and onboarding, actuarial services, product development support, underwriting management, claims management, data analytics, regulatory compliance support, and enterprise risk management support. See "Business—Our Business—MGA Operations."

AUM receives delegated binding authority from the Risk Exchange Insurers to serve as the MGU for their portfolio programs pursuant to Binding Authority Agreements. Through the Binding Authority Agreements, the portfolio programs, platform services, and each party's roles and responsibilities are fully detailed.

Typically, AUM further delegates its binding authority to its sub-agent Members, which includes our affiliated sub-agent, Mission Underwriting Managers, LLC (MUM), and other sub-agents in which Accelerant may own a majority or minority interest. These Members administer various insurance programs on behalf of AUM and Risk Exchange Insurers in accordance with AUM's specific direction in addition to policies and procedures outlined in the AUM's sub-agent contract(s).

AUM, MUM, or other sub-agents could be subject to regulation under state MGA laws and regulations. Regulation as an MGA under various state laws can be triggered by providing certain services to Risk Exchange Insurers and/or providing such services with respect to a material percentage of the Risk Exchange Insurers premium volume.

*Policy Form and Premium Rate Regulation* 

All states regulate in some manner insurance policy forms and premium rates used by admitted companies. This form of regulation is most prevalent for personal lines such as private passenger automobile and homeowners, but also extends to various forms of commercial insurance. In most cases, form and rate regulation requires an insurer to file any new or revised policy forms and rates prior to their use in the market. In many cases, the form or rate cannot be used until after it has been approved by the state. This process can be time consuming in some states and for some lines of insurance.

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*Managing General Agent Act* 

Some of our business activities are subject to regulation under state MGA laws which require licensure or registration of agents that manage all or part of an insurer's business operations and produce and underwrite a certain amount of the insurer's business and either adjust or pay a certain amount of the insurer's claims or negotiate reinsurance on behalf of an insurer. Such regulations dictate that the acts of an MGA are considered to be the acts of the insurer on whose behalf it is acting, and therefore, an MGA may be subject to regulatory examination as if it were the insurer. Further, such regulations impose requirements on the terms that must be included in contracts between an insurer and its MGA.

*Excess and Surplus Lines Compliance* 

The E&S market generally provides insurance for businesses that are unable to obtain coverage from admitted insurance carriers because of their high or complex risk profile or the unique nature or size of the risk. The surplus lines transaction is facilitated through a licensed and regulated surplus lines broker. It is the licensed surplus lines broker that is responsible for:

(i) electing an eligible surplus lines insurer;

(ii) reporting the surplus lines transaction to insurance regulators;

(iii) remitting the premium tax due on the transaction to state tax authorities; and

(iv) assuring compliance with all the requirements of the surplus lines codes.

State surplus lines laws, or laws pertaining to non-admitted insurance business, require that surplus lines brokers comply with diligent search/exempt commercial purchaser laws and affidavit/document filing requirements, as well as requiring the collection and paying of any taxes, stamping fees, assessment fees, and other applicable charges on such business. Surplus lines brokers are often subject to special licensing, surplus lines tax, and/or due diligence requirements by the home state of the insured. Fines for failing to comply with these surplus lines requirements, specifically for failing to comply with the surplus lines licensing or due diligence requirements, vary by state but can range to several hundred thousand dollars.

*Fiduciary Funds* 

Insurance authorities in the United States have also enacted laws and regulations governing the investment of funds which are held in a fiduciary capacity for others. These laws and regulations generally require the segregation of these fiduciary funds and limit the types of permissible investments.

*Broker Compensation* 

Some states permit insurance agents to charge policy fees, while other states prohibit this practice. In recent years, several states considered new legislation or regulations regarding the compensation of brokers by carriers. The proposals ranged in nature from new disclosure requirements to new duties on insurance agents and brokers in dealing with clients.

*Insurance Holding Company Regulation* 

We operate as an insurance holding company system and are subject to the insurance holding company laws of Arkansas, Delaware and Puerto Rico. These states' laws require that each insurance company in the holding company system must register with the respective department of insurance and furnish information concerning the operations of companies within the holding company system that may materially affect the operations, management or financial condition of the insurers within the system that are domiciled in that state. These laws also provide that all transactions among members of a holding company system must be fair and reasonable.

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Transactions between insurance subsidiaries and their parents and affiliates generally must be disclosed to the state regulators, and notice to or prior approval from the department of insurance generally is required for any material or extraordinary transaction.

*Changes of Control* 

Before a person can acquire control of a U.S. domestic insurance insurer, prior written approval must be obtained from the insurance commissioner of the state where the insurer is domiciled, or the acquiror must make a disclaimer of control filing with the department of insurance for such state and obtain approval thereon. Prior to granting approval of an application to acquire control of a domestic insurer, the domiciliary state insurance commissioner will consider a number of factors, including the financial strength of the proposed acquiror, the acquiror's plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

Generally, state insurance statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the outstanding voting securities of the domestic insurer. This statutory presumption of control may be rebutted by showing that control does not in fact exist. The state regulators, however, may find that "control" exists in circumstances in which a person owns or controls less than 10 percent of the voting securities of the domestic insurer. See "Risk Factors—Our principal shareholders have substantial influence over our company. Their interests may not be aligned with the interests of our other shareholders, and they could prevent or cause a change of control or other transactions."

*Restrictions on Paying Dividends* 

We are a holding company with no business operations of our own. Consequently, our ability to pay dividends to shareholders and meet our debt payment obligations is largely dependent on dividends and other distributions from our insurance carrier subsidiaries. Applicable state insurance laws restrict the ability of our insurance carrier subsidiaries to declare stockholder dividends. Applicable state insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of policyholder surplus which is derived from net profits on an insurer's business. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance carrier subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. In addition, dividends and other distributions from our subsidiaries may be subject to incremental income or withholding taxes, which may reduce the amount of cash available for distribution to our shareholders.

*Investment Regulation* 

Accelerant Holdings' U.S. insurance companies are subject to Arkansas, Delaware and Puerto Rico laws which require diversification of our investment portfolios and limits on the amount of investments in certain categories. Failure to comply with these laws and regulations would cause non-conforming investments to be treated as non-admitted assets for purposes of measuring statutory surplus and, in some instances, would require us to sell those investments.

*Restrictions on Cancellation, Non-renewal or Withdrawal* 

Many states have laws and regulations that limit the ability of an insurance company licensed by that state to exit a market. Some states prohibit an insurer from withdrawing from one or more lines of business in the state except pursuant to a plan approved by the state insurance regulator, which may disapprove a plan that may lead to market disruption. Some state statutes may explicitly or by interpretation apply these restrictions to insurers operating on a surplus lines basis.

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*Licensing of Our Employees and Adjusters* 

In certain states in which we operate, insurance adjusters are required to be licensed and must fulfill annual continuing education requirements. AUM contracts with third-party administrators for claims administration services, including adjustment of claims. Such third-party administrators must maintain required adjuster licenses to provide such claims administration services to AUM. In addition, AUM maintains insurance producer agency licenses and surplus lines insurance producer agency licenses in all states in which it operates. Also, two of AUM's employees maintain requisite individual insurance producer licenses and surplus lines insurance producer licenses for the states in which AUM operates.

*Enterprise Risk and Other Recent Developments* 

The insurance holding company laws of Arkansas, Delaware and Puerto Rico explicitly address "enterprise" risk – the risk that an activity, circumstance, event or series of events involving one or more affiliates of an insurer will, if not remedied promptly, be likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole – and require annual reporting of potential enterprise risk as well as access to information to allow the state insurance regulator to assess such risk. In addition, such laws require that any person divesting control over an insurer must provide 30 days' notice to the regulator and the insurer (with an exception for cases where a Form A is being filed).

In addition, the insurance holding company laws of Arkansas, Delaware and Puerto Rico require domestic insurers to maintain a risk management framework and establish a legal requirement for domestic insurers to conduct an Own Risk and Solvency Assessment in accordance with the NAIC's Own Risk and Solvency Assessment ("ORSA") Guidance Manual. These laws provide that domestic insurers or their insurance group must regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual process. In addition, at least once a year, an insurer's domiciliary regulator may request that an insurer submit an ORSA summary report, or any combination of reports that together contain the information described in the ORSA Guidance Manual, with respect to the insurer and the insurance group of which it is a member. At the end of 2024, both ANIC and ASIC submitted ORSA reports for the year 2023 to the Delaware and Arkansas departments of insurance, respectively.

*Federal Regulation* 

The U.S. federal government's oversight of the insurance industry was expanded under the Dodd-Frank Act. Prior to the enactment of the Dodd-Frank Act in July 2010, the U.S. federal government's regulation of the insurance industry was essentially limited to certain insurance products, such as flood insurance, multi-peril crop insurance and reinsurance of losses from terrorism. As part of the overall federal financial regulatory reform package contained in the Dodd-Frank Act, Congress has legislated reforms in the reinsurance and surplus lines sectors.

The Dodd-Frank Act also incorporates the Non-Admitted and Reinsurance Reform Act of 2010 ("NRRA"), which became effective on July 21, 2011. Among other things, the NRRA establishes national uniform standards on how states may regulate and tax surplus lines insurance and sets national standards concerning the regulation of reinsurance. In particular, the NRRA gives regulators in the home state of an insured exclusive authority to regulate and tax surplus lines insurance transactions, and regulators in a ceding insurer's state of domicile have the sole responsibility for regulating the balance sheet credit that the ceding insurer may take for reinsurance recoverables.

The Dodd-Frank Act also established the FIO in the U.S. Department of the Treasury and vested the FIO with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS"). In addition, the FIO serves as an advisory member of the

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Financial Stability Oversight Council, assists the secretary of the U.S. Department of the Treasury with administration of the Terrorism Risk Insurance Program, and advises the secretary of the U.S. Department of the Treasury on important national and international insurance matters. In addition, the FIO has the ability to recommend to the Financial Stability Oversight Council the designation of an insurer as "systemically important" and therefore subject to regulation by the Federal Reserve as a bank holding company.

In limited circumstances, the FIO can declare a state insurance law or regulation "preempted," but this can be done only after extensive consultation with state insurance regulators, the Office of the U.S. Trade Representative and key insurance industry players (in trade associations representing insurers and intermediaries). Additionally, the FIO must publish a notice regarding the basis for the preemption in the Federal Register, allowing a reasonable opportunity for comments. The FIO cannot preempt state antitrust laws governing rate making, underwriting, sales practices or coverage requirements. No later than September 30th of each year, the FIO must submit an annual report to Congress explaining any use of the preemption authority during the prior year.

In addition, a number of federal laws affect and apply to the insurance industry, including various privacy laws and the economic and trade sanctions implemented by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury. OFAC maintains and enforces economic sanctions against certain foreign countries and groups and prohibits U.S. persons from engaging in certain transactions with certain persons or entities. OFAC has imposed civil penalties on persons, including insurance and reinsurance companies, arising from violations of its economic sanctions program.

*Trade Practices* 

The manner in which insurance companies and insurance agents and brokers conduct the business of insurance is regulated by state statutes in an effort to prohibit practices that constitute unfair methods of competition or unfair or deceptive acts or practices. Prohibited practices include, but are not limited to, disseminating false information or advertising, unfair discrimination, rebating and false statements. We establish business policies to make our employee-agents and other sales personnel aware of these prohibitions, and we require them to conduct their activities in compliance with these statutes.

*Unfair Claims Practices* 

Generally, insurance companies, adjusting companies and individual claims adjusters are prohibited by state statutes from engaging in unfair claims practices. Unfair claims practices include, but are not limited to, misrepresenting pertinent facts or insurance policy provisions; failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies; and attempting to settle a claim for less than the amount to which a reasonable person would have believed such person was entitled. We established business policies to make our employee-adjusters and other claims personnel aware of these prohibitions, and requires them to conduct their activities in compliance with these statutes.

*Quarterly and Annual Financial Reporting* 

As a basis of accounting, SAP was developed to monitor and regulate the solvency of insurance companies. In developing SAP, insurance regulators were primarily concerned with ensuring an insurer's ability to pay all its current and future obligations to policyholders. As a result, statutory accounting focuses on conservatively valuing an insurer's assets and liabilities, generally in accordance with standards specified by the insurer's domiciliary state. The values for assets, liabilities and equity reflected in financial statements prepared in accordance with GAAP are usually different from those reflected in financial statements prepared under SAP.

In keeping with the intent to assure policyholder protection, SAP emphasizes solvency considerations. For a summary of the SAP capital and surplus and net income (loss) relating to our insurance subsidiaries, see Note 23 to our 2024 audited consolidated annual financial statements included elsewhere in this prospectus.

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*Credit for Reinsurance* 

State insurance laws permit U.S. insurance companies, as ceding insurers, to take financial statement credit for reinsurance that is ceded, so long as the assuming reinsurer satisfies the state's credit for reinsurance laws. There are several different ways in which the credit for reinsurance laws may be satisfied by an assuming reinsurer, including being licensed in the state, being accredited in the state, or maintaining certain types of qualifying collateral. We ensure that our material reinsurers satisfy applicable regulatory requirements to enable us to take full financial statement credit for such reinsurance.

Under reinsurance credit rules established under the Dodd-Frank Act, a U.S. ceding insurer need not satisfy the reinsurance credit rules of any nondomestic state if the following two conditions are met: (1) the ceding insurer's domestic state is NAIC-accredited or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, and (2) the ceding insurer's domestic state recognizes credit for reinsurance for its ceded risk.

*Periodic Financial and Market Conduct Examinations* 

Insurance regulatory authorities have broad administrative powers to regulate trade practices and to restrict or revoke licenses to transact business and to levy fines and monetary penalties against insurers and insurance agents and brokers found to be in violation of applicable laws and regulations. As part of their routine regulatory oversight processes, state insurance regulatory authorities conduct periodic on-site visits and examinations of the financial affairs and market conduct condition of our insurance company subsidiaries, including their financial condition, their relationships and transactions with affiliates and their dealings with policyholders, on average no less than every five years for domiciled insurance companies, and as deemed necessary to conduct special or targeted examinations to address particular concerns or issues at any time. These examinations are generally carried out in cooperation with the insurance departments of two or three other states under guidelines promulgated by the NAIC. The results of these examinations can give rise to regulatory orders requiring remedial, injunctive or other corrective action. In May 2024, ASIC's domiciliary regulator, Arkansas, commenced such a financial examination in conjunction with ANIC's domiciliary regulator, Delaware. The scope of the examination was January 1, 2020, through December 31, 2023. Delaware and Arkansas both issued their examination reports in May 2025. The examinations did not result in any remedial, injunctive or other corrective actions. Accelerant Re I.I. was formed in August 2024 and has not been subject to a financial examination.

Various state insurance departments also periodically examine non-domestic insurance companies conducting business in their states. The purpose of these periodic examinations is to evaluate compliance with state insurance laws and regulations and to determine if the companies' operations are consistent with the public interest of the policyholders resident in the state conducting the examination. In particular, state insurance laws and regulations include numerous provisions governing the marketplace activities of insurers, including provisions governing the form and content of disclosure to consumers, illustrations, advertising, sales practices and complaint handling. State regulatory authorities generally enforce these provisions through periodic market conduct examinations.

*Risk-Based Capital* 

RBC laws are designed to assess the minimum amount of capital that an insurance company needs to support its overall business operations and to ensure that it has an acceptably low likelihood of becoming financially impaired. State insurance regulators use RBC to set capital requirements, considering the size and degree of risk taken by the insurer and taking into account various risk factors including asset risk, credit risk, underwriting risk and interest rate risk. As the ratio of an insurer's total adjusted capital and surplus decreases relative to its RBC, the RBC laws provide for increasing levels of regulatory intervention culminating with mandatory control of the operations of the insurer by the domiciliary insurance department at the so-called mandatory control level.

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The Arkansas, Delaware and Puerto Rico Departments of Insurance have adopted a version of the NAIC Risk-Based Capital for Insurers Model Act, which requires annual reporting by their domiciled insurers to ensure maintenance of the minimum amount of RBC necessary for an insurer to support its overall business operations. Insurers falling below the calculated RBC threshold may be subject to varying degrees of regulatory action. Failure to maintain RBC at the required levels could adversely affect our ability to maintain the regulatory approvals necessary to conduct our business. However, as of March 31, 2025, ASIC, ANIC and Accelerant Re I.I. have each maintained RBC levels in excess of amounts that would require any corrective actions.

*Group Capital Calculation* 

In December 2020, the NAIC adopted a group capital calculation ("GCC") tool that uses an RBC aggregation methodology for all entities within an insurance holding company system, including non-U.S. entities. The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capital of each entity in a group in a way that applies to all groups regardless of their structure. In December 2020, the NAIC also adopted amendments to the holding company system model laws to require, subject to certain exceptions, the ultimate controlling person of every insurer subject to the holding company registration requirement to file an annual GCC with its lead state regulator. The filing requirement becomes effective when the holding company act amendments are adopted by the state where and insurance group's lead state regulator is located. The holding company amendments have been adopted in Arkansas and Delaware, but have yet to be adopted in Puerto Rico. The NAIC has stated that the GCC is a regulatory tool and does not constitute a capital requirement or standard, but there can be no guarantee that will remain the case.

<u>United Kingdom Regulation</u> 

*Entities and Overview* 

The PRA and the FCA regulate insurance companies and reinsurance companies and the FCA regulates firms carrying on insurance distribution activities operating in the UK under the Financial Services and Markets Act 2000 ("FSMA"). Our insurance entity in the UK is AIUK, which is a non-life insurer. AIUK is authorized by the PRA and regulated by the PRA and the FCA. Following the UK's departure from the European Union ("Brexit"), a transition period (from January 31, 2020 to December 31, 2020) followed during which the Solvency II Directive and the Delegated Regulation (as defined in "*Entities and Overview – Solvency II*") were adopted into UK law by operation of the UK's European Union (Withdrawal) Act 2018, and amended to reflect Brexit (the "UK Solvency II Regulations"). AIUK is subject to the rules and regulations of the UK Solvency II Regulations. In addition, AIUK is subject to the IDD (as defined in "*European Union – The IDD*"), as adopted into English law, the prudential rules of the PRA and the conduct rules of the FCA.

Our authorized insurance intermediaries in the UK are: (i) Mission Underwriting UK Limited ("Mission UK"); (ii) Warranty Services Limited ("WSL"); and Euna Underwriting Limited ("EUNA").

Mission UK, WSL and EUNA are each solo-regulated by the FCA and are therefore subject to the prudential and conduct rules of the FCA. In addition, Mission UK, WSL and EUNA are subject to the rules and guidance of the IDD, as adopted into English law. We also have the following appointed representatives ("AR") in our group: Accelerant Agency (UK) Limited; Ignite Specialty Risk Limited; Mission UK Series 1 Limited; Mission UK Series 3 Limited; Mission UK Series 4 Limited; Mission UK Series 9 Limited; and Ventis Specialty Limited. An AR is not itself an authorized firm but is able to undertake regulated activities on behalf of a firm that is directly authorized by a relevant regulator (known as a "principal firm"), through entry into a contract with a principal firm which permits, or requires, the AR to carry on certain regulated activities. Accordingly, an AR is only able to undertake the regulated activities that its principal firm is authorized to undertake and is subject to any further restrictions contained in the contract between itself and its principal firm. Accelerant Agency (UK) Limited's principal firm is ES Risks Limited, which is authorized and regulated by the FCA as an insurance intermediary. Ignite Specialty Risk Limited's, Mission UK Series 1 Limited's, Mission UK Series 3 Limited's, Mission UK Series 4 Limited's, Mission UK Series 9 Limited's

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and Ventis Specialty Limited's principal firm is Mission UK. Mission UK provides its ARs with, among others, finance, technology, marketing and regulatory support. Mission UK is intended to operate an incubator model under which regulated businesses for which it takes responsibility will be moved into separate entities which will be its ARs.

The model operated by Mission UK depends on "cell" underwriting businesses being able to operate in separate legal entities as ARs of Mission UK, which takes on full regulatory responsibility for their activities. Mission UK is exposed to liability for any breaches by the cell ARs and is required to carry comprehensive professional indemnity insurance for their activities. Principal firms' ability to monitor and supervise their ARs continues to be an area of focus for the FCA, which has introduced stricter rules including enhanced oversight requirements on principal firms, and annual self-assessment, review, and reporting requirements. In addition, it has stated that it will continue to strengthen its scrutiny of authorizations and approvals for ARs and supervise high risk principals more assertively.

The Accelerant group of companies also has a position in three other insurance intermediaries in the UK authorized by the FCA: a minority position in LRMS Insurance Services Limited (19.5%); and a majority position in (i) NBS Underwriting Limited (80.5%) and (ii) Corniche Underwriting Limited (80.5%).

Our European insurance entity ("Accelerant Insurance Europe SA") and our European insurance intermediary ("Accelerant Agency Limited") received authorization for their UK third country branches in 2023 (with Accelerant Insurance Europe SA having previously operated in the UK under the Temporary Permissions Regime ("TPR")) on a "Services (UK) of an Overseas Firm" basis and Accelerant Agency Limited Having previously operated in the UK under the TPR on a "Branch (UK) of an Overseas Firm" basis).

As part of the UK's preparations for Brexit, the UK Government established the TPR for companies based in the EEA. The TPR allowed EEA-based firms that were passporting into the UK at the end of the transition period (December 31, 2020) to continue operating in the UK within the scope of their previous passport permission, for a limited period after the end of the transition period. During this limited period, such companies had to seek full authorization by the PRA or the FCA in the UK, if required, to continue to access the UK market.

Accelerant Insurance Europe SA/NV UK Branch ("Accelerant Insurance Europe UK") is authorized by the PRA and subject to regulation by the FCA and limited regulation by the PRA in the UK, in addition to any regulation by the NBB in Belgium. See "—European Union Regulation—Entities and Overview" for further detail.

Accelerant Agency Limited UK Branch ("Accelerant Agency UK") is authorized and regulated by the FCA in addition to any regulation by the Central Bank of Ireland ("CBI") in Ireland. See "—European Union Regulation—Entities and Overview" for further detail.

The PRA has two primary objectives: (i) to promote the safety and soundness of the firms it regulates; and (ii) (specifically for insurers) contribute to securing an appropriate degree of protection for insurance policyholders. The FCA's strategic objective is to ensure relevant markets function well. It also has three operational objectives: (i) to protect consumers from bad conduct; (ii) to protect the integrity of the UK financial system; and (iii) to promote effective competition in the interests of consumers. In addition, both regulators are tasked with a new secondary objective of facilitating the international competitiveness of the economy of the UK and its growth in the medium to long term. The PRA also has an additional secondary objective that is focused on facilitating effective competition in the markets for services provided by PRA-authorized persons in carrying on regulated activities. The PRA has responsibility for the prudential regulation of banks and insurers, while the FCA has responsibility for the conduct of business regulation in the wholesale and retail markets. The PRA and the FCA therefore adopt separate methods of assessing regulated firms. As insurers, AIUK and Accelerant Insurance Europe UK are subject to assessment by the PRA, whereas Accelerant Agency UK, Mission UK, WSL, EUNA and those insurance intermediaries in which the Accelerant group of companies has a position in are subject to assessment by the FCA (as insurance intermediaries).

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*Financial Services Compensation Scheme* 

The Financial Services Compensation Scheme ("FSCS") is a scheme established under FSMA which allows eligible customers of regulated firms (including insurers and insurance intermediaries) to seek compensation if that regulated firm were to become insolvent. The FSCS is funded by annual levies that regulated firms (such as AIUK and Accelerant Insurance Europe UK) are required to pay. Both AIUK and Accelerant Insurance Europe UK pay an amount relative to the size of their FSCS-exposed portfolios of business.

*Change in Control* 

Under FSMA, prior approval from the PRA and/or FCA is required before any person or entity, together with its associates, acquires "control" of or increases its control over a regulated firm, or over the parent undertaking of a regulated firm. In relation to AIUK (which is an insurer authorized by the PRA), in summary, a "controller" is defined for these purposes as a person who holds (either alone or in concert with others) 10% or more of the shares or voting power in the relevant PRA-authorized firm or its parent undertaking, or holds significant influence over the management of such PRA-authorized firm by virtue of their shareholding or voting power. Thereafter, the prior approval of the PRA is required if any person or entity (or two or more acting in concert) proposes to acquire shares or voting power in a PRA-authorized firm or the parent undertaking of a PRA-authorized firm, such that they cross one of the following shareholding or voting power thresholds: (i) 20% or more but less than 30%; (ii) 30% or more but less than 50%; or (iii) 50% or more. In relation to Mission UK, WSL and EUNA (which are FCA-authorized insurance intermediaries), the test for control is similar, but, there is only one relevant control threshold of 20% or more.

Any person or entity deemed to be a "controller" is required to have completed and submitted a notification to the relevant regulator and to have received approval from the PRA (for a PRA-authorized firm) or the FCA (for an FCA-authorized firm) before actually acquiring control. The relevant regulator then has a 60 working day review period from the date it acknowledges a complete notification to: (i) determine whether to approve the change in control unconditionally; (ii) approve the change in control subject to conditions; or (iii) object to the change in control. However, the relevant regulator has the ability to invoke an interruption of the review period if it requires further information. Depending on where the controller is based, the relevant regulator can invoke an interruption period of up to 30 working days.

Overseas branches (such as Accelerant Insurance Europe UK and Accelerant Agency UK) do not require pre-approval for changes in control. The appropriate procedure of the home state regulator should have been followed and the branch then needs to notify the relevant regulator that the change has happened. In addition, ARs (such as Accelerant Agency (UK) Limited) do not require pre-approval for changes in control, however, its principal firm should notify the relevant regulator of such changes.

*Restrictions on the Payment of Dividends* 

Under English law, all companies are restricted from declaring a dividend to their shareholders unless they have "profits available for distribution." The determination of whether a company has profits available for distribution is based on its accumulated realized profits and other distributable reserves, less its accumulated realized losses. UK insurance regulatory laws do not currently prohibit the payment of dividends, but the PRA's and/or the FCA's rules require that authorized insurance companies, insurance intermediaries and other regulated entities maintain certain solvency margins at all times and this would restrict the payment of a dividend by AIUK, WSL, EUNA and Mission UK, for example.

*Conduct of Business and the FCA's Consumer Duty (the "Duty")* 

The FCA's Insurance: Conduct of Business Sourcebook of the FCA Handbook ("ICOBS"), which was amended with effect from October 1, 2018 to implement the IDD pre-Brexit, outlines high-level standards that apply to all non-investment insurance product sales, such as that of AIUK from an establishment in the UK, and regulates the standard of day-to-day conduct of business. The overall aim of ICOBS is to ensure that customers within its scope are treated fairly, and are provided with clear, fair information when insurance policies are sold.

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One of the general rules under ICOBS is that the firm must act honestly, fairly, and professionally in accordance with the best interests of its customer. To help achieve this, ICOBS rules include, among others, the provision of certain information about the company to clients, meeting certain standards of product disclosure, ensuring that promotional materials are clear, fair and not misleading, assessing suitability when advising on certain products, management of conflicts of interest and claims, reporting appropriately to clients, and providing certain protections in relation to client assets. Rules in ICOBS will apply, broadly, to the business of insurance carriers and insurance intermediaries (referred to as insurance distribution) providing direct general and "pure protection" insurance policies. Pure protection contracts are long term insurance policies with no surrender value, or where the consideration consists of a single premium and the surrender value does not exceed that premium. ICOBS applies to such businesses with retail customers, which means it will not apply to "contracts of large risk" sold to commercial customers or other contracts of large risk where the risk is located outside the UK. Nor does it apply to activities connected to the distribution of group insurance policies or the extension of these policies to new members. ICOBS therefore applies to a broad range of "non-large risk" commercial business, as well as to consumers.

AIUK and Accelerant Insurance Europe UK each delegate underwriting and claims authority to Accelerant Agency UK. A binding authority agreement between the parties sets out the nature and extent of the underwriting and claims authority delegated by one intra-group party to the other and includes a number of provisions that ensure the relationship between the parties is conducted on an arm's length basis.

The Duty aims to have a material impact on how financial service sector companies, including insurance companies and insurance intermediaries, interact with retail customers and set higher standards of care to retail customers over the lifecycle of their products. The rules build on existing product governance and pricing rules and require AIUK, and the other group companies subject to UK regulation by the FCA, to define, monitor, and evidence how their business models, actions and culture are delivering good customer outcomes in the four areas of products and services, price and value, consumer understanding and consumer support. For general and pure protection business, the Duty applies to broadly the same types of customers as ICOBS, and non-large commercial customers as well as consumers. The implementation of the Duty is a major area of focus for the FCA, which has made it clear that it will use the full range of supervisory tools available to it to compel the delivery of better outcomes for consumers across these areas. The UK general insurance market has already seen significant interventions in relation to specific products and business lines where the FCA believes retail customers are not receiving fair value and/or that commissions levels received by distributors cannot be justified by the services they provide.

AIUK, Accelerant Insurance Europe SA (including Accelerant Insurance Europe UK), Accelerant Agency Limited (including Accelerant Agency UK), EUNA, Mission UK and WSL are subject to the FCA's Duty rules. A number of activities were undertaken in order to ensure compliance with the Duty. These included enhancements to the complaint management process, development of a Duty dashboard (to be provided to the Boards of the regulated entities on a quarterly basis), development of a revised annex to the binding authority agreements entered into with MGAs (setting out an enhanced schedule of responsibilities applicable to each co-manufacturer of an insurance product(s)) and the appointment of a board-level Duty champion for each of the regulates entities (with effect from the end of February 2025, the FCA no longer expects firms to have a Duty champion at Board level; however, they can retain the role should they wish to do so). A product oversight group involving representatives from AIUK, Accelerant Insurance Europe SA, Accelerant Insurance Europe UK, Accelerant Agency Limited and Accelerant Agency UK, meet quarterly to consider a range of product governance-related matters, including Duty, fair value assessments and the approval of new insurance products and significant adaptations to existing insurance products.

*ESG* 

ESG and sustainability continue to be an area of focus for both the PRA and the FCA. The regulators have indicated that ESG will remain a supervisory priority and firms (such as AIUK) are required to comply with certain ESG-related requirements. In particular, the PRA's supervisory statement SS3/19 requires AIUK to:

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(i) fully embed consideration of climate-related risks into its governance arrangements; (ii) incorporate climate-related financial risks into existing risk management practices; (iii) utilize scenario analysis to inform strategy setting; (iv) carry out a risk assessment and risk identification; and (v) develop and maintain an appropriate approach to the disclosure of climate-related financial risks. The PRA's letter to CEOs in January 2025 outlined its insurance supervision priorities for 2025, including a planned consultation on updating SS3/19. The update aims to help firms enhance their climate-related financial risk management. AIUK is also required to allocate responsibility for managing climate-related risk to a senior manager under the Senior Managers and Certification Regime (the "SM&CR").

In September 2023, the PRA and the FCA issued a joint consultation paper (CP23/20 and CP18/23) on diversity and inclusion. The proposals build on the ideas discussed in the regulators' joint discussion paper which was published by the PRA, the FCA, and the Bank of England in July 2021. In March 2025, the FCA and PRA stated that they had no plans to take their work on diversity and inclusion forward, in light of the broad range of feedback received, expected legislative developments and to avoid additional burdens on firms. The FCA confirmed alongside this announcement that it would continue to prioritize its work on tackling non-financial misconduct in firms and intends to set out its next steps on this topic by the end of June 2025.

In November 2023, the FCA published a policy statement (PS23/16) which sets out its final rules and guidance on the sustainability disclosure requirements and investment labels regime. As part of this regime, the FCA introduced, among other things, a general 'anti-greenwashing' rule, which is applicable to all FCA-regulated firms, and requires firms, when communicating with UK clients in relation to a product or service, or communicating or approving a financial promotion to a person in the UK, to ensure, among other things, that any references in such communications to the sustainability characteristics of the product or service are fair, clear and not misleading. The 'anti-greenwashing' rule came into force on May 2024 and the FCA also published guidance (FG 24/3) on the expectations for FCA-regulated firms subject to the 'anti-greenwashing rule' which took effect at the same time.

*Operational Resilience* 

AIUK and Accelerant Insurance Europe UK are subject to certain regulatory requirements issued by the PRA and the FCA relating to operational resilience. The framework relating to operational resilience aims to ensure that financial services firms are able to prevent, adapt to, respond to, recover from and learn from operational disruptions. The operational resilience regime, which became effective in March 2022, requires firms to identify their important business services, map and assess the resources that support them (including people, processes, technology, facilities and third-party service providers), set impact tolerances for maximum acceptable disruption and perform scenario testing to assess their ability to remain within those tolerances. Firms had to demonstrate their ability to operate within their impact tolerances by the end of March 2025.

The PRA's supervisory statement: "Operational resilience: Impact tolerances for important business services" (SS1/21) sets out its expectations for the operational resilience of firms' important business services. AIUK and Accelerant Insurance Europe UK have ensured that their systems and controls specifically identify and prioritize "important business services," and consider and monitor whether they have dedicated appropriate resources to ensure that they have sufficient operational resilience in the event of any potential material disruption to the services provider (for example, by preparing and maintaining a business continuity or disaster recovery plan covering such circumstances).

*Key Functions and SM&CR* 

UK Solvency II Regulations require that all persons who effectively run the insurance undertakings and insurance intermediaries or have other key functions are at all times fit (i.e, their professional qualifications, knowledge and experience are adequate to enable sound and prudent management) and proper (*i.e*, they are of good repute and integrity) and are notified to the relevant supervisory authority.

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The UK's framework to ensuring the standards of such persons is the SM&CR. The SM&CR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence. The SM&CR consists of three parts: (i) the Senior Managers Regime ("SMR"); (ii) the Certification Regime and (iii) the Conduct Rules. The application of the SM&CR depends on the individual's role and level of seniority in a business. The SMR is for the most senior individuals in a company who perform key roles (referred to as Senior Management Functions, "SMFs") in a company and require FCA or PRA approval before starting their role. The Certification Regime covers specific functions that are not SMFs and therefore do not require FCA or PRA prior approval, but for which the regulated firms must check and certify individuals holding these roles at least annually as fit and proper. The Conduct Rules set the minimum standards of individual behavior applicable to all staff working in financial services apart from those in purely ancillary roles, and require individuals to act with integrity, due skill, care and diligence, be open and cooperative with the FCA, the PRA and other regulators, pay due regards to the interests of customers and treat them fairly and observe proper standards of market conduct. The FCA and the PRA have published a joint discussion paper (DP23/3 and DP1/23) on the review of the SM&CR. The discussion paper considers the effectiveness, scope, and proportionality of the regulatory regime and aims to identify ways to improve the regime to help it work better for firms and regulators. His Majesty's Treasury (the "Treasury") has, in parallel, launched a Call for Evidence and is also seeking feedback on the SM&CR. The PRA and the FCA are considering the responses and continuing to work together with the Treasury to decide next steps (which may result in changes to the SM&CR). More specific conduct rules apply to individuals who hold SMFs.

*Reports and Returns* 

Under the UK Solvency II Regulations, AIUK is required to submit quarterly and annual filings with the PRA, including an annual Solvency and Financial Condition Report ("SFCR"), which must also be posted on the Accelerant Group's website. In addition, AIUK must submit an annual ORSA to the PRA. The ORSA report is produced annually and provides a summary of all of the activities and processes during the preceding year to assess and report on risks and ensure that overall solvency needs are met at all times, including a forward-looking assessment. It also explains the linkages between business strategy, business planning and capital and risk management processes.

In addition, AIUK has recently received approval from the PRA for a modification to the PRA Rulebook - Group Supervision 20.1 and 20.2 - (referred to as an "Other Methods Waiver"), permitting AIUK to use "other methods" to achieve the objectives of group supervision. Under this arrangement, AIUK is required to provide the PRA, annually, with a Group SCR and Own Funds calculation (at the level of Accelerant Holdings) and the consolidated financial statements for Accelerant Holdings. It is also required to provide the PRA with prior notification of: (i) a payment or extraction from AIUK or its UK holding company, Accelerant Underwriting Holdings Limited, to any undertaking in the worldwide group situated outside of the UK and Gibraltar; (ii) any material intra-group transaction involving the transfer of economic benefits, or the assumption of liabilities from AIUK or Accelerant Underwriting Holdings Limited to an undertaking(s) in the worldwide group situated outside the UK and Gibraltar; and (iii) any proposed changes to, or replacement of, any external debt agreements affecting AIUK or Accelerant Underwriting Holdings Limited.

Accelerant Insurance Europe UK is also required to submit quarterly and annual filings with the PRA, including an annual branch ORSA. Both AIUK and Accelerant Insurance Europe UK are required to submit quarterly and annual filings to the FCA providing information relating to, among others, pricing information, product sales, and complaints. UK authorized insurance intermediaries are also subject to ongoing monitoring and annual reporting obligations. Accordingly, EUNA, Mission UK and WSL are required to submit quarterly and annual reports to the FCA which provide information relating to their controllers and close links, client money and assets, accounts, market data, product sales data, remuneration data and reporting complaints.

*Future developments in the UK Solvency II Regulations – Further Reforms Post-Brexit* 

In June 2023, the Financial Services and Markets Act 2023 ("FSMA 2023") received royal assent. FSMA 2023 provides a framework for the revocation of retained EU law in financial services (including the UK

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Solvency II Regulations). Since the transition period, the UK Solvency II Regulations and the IDD (as defined in "European Union — The IDD") have undergone various reviews on its application in the UK. The response to the UK Government's review published in July 2021 anticipated changes to the UK's Solvency II framework which was mirrored by the PRA's quantitative and qualitative studies in 2021.

Following the release of His Majesty's the Treasury's (the " Treasury") consultation paper in April 2022, it published its response in November 2022 which set out the UK Government's final reform package on the UK Solvency II framework. It proposed to introduce a more simple, clear and tailored regime by: (i) cutting the risk margin; (ii) maintaining the existing measure of fundamental spread whilst allowing the use of notched rating, including investment flexibility; (iii) cutting the unnecessary burdens on firms imposed by some of the EU rules adopted by the UK in order to facilitate innovation and vibrant markets; and (iv) removing requirements for foreign insurers with branches in the UK from calculating branch capital requirements and holding of local assets to cover them.

In June 2023, the Treasury published draft legislation focusing on changes to the risk margin and the PRA issued the first of two consultations (the second was published at the end of September 2023) covering reform proposals for insurers relating to investment flexibility and the matching adjustment ("MA"), including to eligibility rules, new attestation requirements and certain changes to its calculation, reporting and risk management. The legislation implementing the changes to the risk margin, the *Insurance and Reinsurance Undertakings (Prudential Requirements) (Risk Margin) Regulations 2023*, came into effect on December 31, 2023. The PRA will publish regular reports on the MA framework alongside the PRA Annual Report, covering application review timelines and decision rates, with the first report to be published in 2025. The other reforms forming part of "Solvency UK" became effective in December 2024. These reforms include the removal of branch capital requirements for third-country branches. This includes both the Solvency Capital Requirement ("SCR") and the Minimum Capital Requirement ("MCR"), as well as the need to establish a branch risk margin to comply with ongoing supervision rules. In November 2024, the PRA published its final Policy Statement containing PRA rules and policy materials on Solvency UK (Policy Statement 15/24). The PRA has stated that these reforms and restatement of rules provide a new regulatory framework for maintaining the safety and soundness of insurance firms and protecting their policyholders, and that the PRA will continue to evolve its prudential regulatory framework for the insurance sector in 2025 and beyond. The rules and policy materials became effective in December 2024.

The Treasury has announced its plans to repeal the IDD delegated acts and for the requirements of the regulations to be included in the FCA's Handbook. In response, the FCA published a consultation paper (CP23/19) in September 2023 on the future regulatory framework for the IDD seeking feedback on its proposals for transferring part of the regulatory requirements on insurance firms from current legislation into its rules. The FCA subsequently published a policy statement (PS23/18) in December 2023 providing feedback to the responses the FCA received to the consultation paper along with its final rules. The rule changes came into force in April 2024.

In October 2023, the PRA published a consultation paper (CP21/23) on the PRA's approach to the authorization and supervision of insurance branches, which included its proposed approach to assessing risks of third country branches, reinsurance arrangements of third country branches, as well as other expectations such as reporting requirements. More recently, the PRA published a policy statement along with its final rules on the assessment of risk in respect of third country branches.

In February 2025, the PRA published their "approach to policy" in which they set out their approach to advancing their primary and secondary objectives, international engagement and collaboration, creating and maintaining their prudential policy framework and maintaining an accessible, efficient and clear Rulebook.

The group is monitoring closely the proposed reforms to the UK Solvency II framework and the approach adopted by the PRA and FCA to advancing their secondary objectives of facilitating the international

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competitiveness of the economy in the UK (including, in particular, the financial services sector) and its growth in the medium to long term and welcomes the prospect of further improved efficiencies in the UK regulatory landscape.

*Future developments in the UK Solvency II Regulations – Remaining Competitive in the International Market* 

In January 2022, the UK Parliament, via its Industry and Regulators Committee (the "Committee"), launched an inquiry into the UK insurance and reinsurance industry and, specifically, into the regulation of the London market, the UK's market for commercial and wholesale specialty risks. The inquiry reviewed the extent to which regulatory policy is well-designed and proportionately applied, the possibilities for optimizing policy following Brexit, the roles of the current UK regulators, such as the FCA and the Bank of England, as well as the appropriateness of regulation. Following its inquiry, the Committee outlined industry concerns regarding a perceived lack of proportionality in the regulation of the London market by the PRA and FCA, which was described as overly burdensome and demanding. The Committee explained the industry's concerns that an overly inflexible culture within the UK regulators may inhibit new forms of business within the UK's commercial reinsurance industry.

*S166 Skilled Person Review* 

"Skilled Person" reviews have become an increasing feature of the UK financial services regulatory landscape in recent years. Under section 166 of FSMA the FCA and the PRA have wide powers to require a financial services firm to commission skilled person reports into any aspect of the firm's business.

As part of a routine year-end statutory audit it was identified by the external auditor that AIUK's treatment of deferred taxes and their method of valuation of a subsidiary company adopted in the Solvency II Balance Sheet were incorrect resulting in AIUK's SCR coverage ratio falling to below 100% at half-year 2021. The PRA was subsequently notified and in response requested that AIUK engage a Skilled Person to review its Solvency II Balance Sheet (for the period from year-end 2020 to half-year 2022) and the governance, risk management and control framework for the preparation of the Solvency II Balance Sheet.

AIUK retained Barnett Waddingham LLP to perform a Skilled Person review and to prepare a Skilled Person report. This review identified a number of recommendations to be addressed and completed. These recommendations were addressed by AIUK's senior management, with oversight provided by the AIUK Board. AIUK's internal auditors, Grant Thornton UK LLP ("Grant Thornton"), undertook validation work on those items. Grant Thornton's validation report received a rating of "good," reflecting AIUK's diligence in closing the actions in a timely manner and is indicative of the overall good governance of the process.

AIUK's Board has determined that, except for ongoing effectiveness, there are no remaining actions for AIUK's management to undertake in this area. Following this, a copy of the validation report prepared by Grant Thornton was shared with the PRA, with no follow up information requested or actions required.

<u>European Union Regulation</u> 

*Entities and Overview* 

*Accelerant Insurance* 

*Europe SA* 

Our European insurance undertaking is Accelerant Insurance Europe SA. Accelerant Insurance Europe SA is a licensed non-life insurer established in Belgium (authorized by the NBB and regulated by the NBB and the Financial Services and Markets Authority). It is subject to: (i) the European Directive 2009/138/EC (as amended, the "Solvency II Directive") and the Commission Delegated Regulation (EU) 2015/35 (as amended, the

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"Delegated Regulation") (together referred to as the "Solvency II framework") which is the prudential regime for reinsurance undertakings in the EEA; and (ii) the Insurance Distribution Directive (Directive (EU) 2016/97) (the "IDD"), as implemented throughout the EEA.

Accelerant Insurance Europe SA also has a UK third-country branch, Accelerant Insurance Europe UK, which is authorized by the PRA and subject to regulation by the FCA and limited regulation by the PRA. See "—United Kingdom Regulation—Entities and Overview" for further detail.

The relevant EEA supervisory body for insurers, the European Insurance and Occupational Pensions Authority ("EIOPA") has limited supervisory powers in EEA Member States, however it plays an important role in drafting and issuing technical standards and preparing guidance relating to various European directives and regulations. EIOPA aims to accomplish efficient and harmonized financial supervision across the European Union.

The Solvency II framework provides rules and regulations relating to, inter alia, Accelerant Insurance Europe SA's authorization requirements (including the European "passport" regime which is further detailed under *"Passporting – Freedom of Establishment and Freedom of Services*"), its minimum own funds and solvency and its governance. Governance requirements include the need to ensure sound business operations, establishment of mandatory key functions (being actuarial, compliance, internal audit and risk management) and requirements relating to Accelerant Insurance Europe SA's management board members, supervisory board members, and other key personnel (together, "Relevant Persons").

In accordance with Solvency II and NBB requirements, Relevant Persons within Accelerant Insurance Europe SA are subject to an assessment of their fitness and propriety both prior to their appointment and on an ongoing basis, to ensure they have the required professional qualifications, knowledge, skills, experience and integrity to discharge their duties and obligations. In addition, the Branch Manager and Compliance Officer of Accelerant Insurance Europe UK are subject to the SM&CR introduced in the UK with the aim of reducing harm to consumers and strengthening market integrity by making individuals performing certain key functions more accountable for their conduct and competence.

Furthermore, Accelerant Insurance European SA is also subject to the Belgian Law of March 13, 2016 on the legal status and supervision of insurance companies or reinsurance companies; the Belgian Law of April 4, 2014 on Insurances; the Belgian Overarching Governance System Circular and all implementing Belgian Royal Decrees, Circulars and Communications (the "Belgian Local Rules") and the lower rules and regulations promulgated thereunder as well as national regulations and local conduct of business requirements.

*Irish Intermediaries* 

Accelerant Agency Limited is registered as an insurance intermediary by the CBI under the European Union (Insurance Distribution) Regulations 2018 ("Irish IDD Regulations") which transposed the IDD in Ireland. The Irish IDD Regulations follow the text of the IDD closely. Accelerant Agency Limited and Resolution Underwriting Holdings (Ireland) Limited (to be renamed Mission Underwriting Europe Limited) are the two insurance intermediaries registered by the CBI under the Irish IDD Regulations in which the Accelerant group of companies has a 100% holding, with Accelerant Agency Limited having one tied insurance intermediary: Mission Services Ireland Limited (in which the Accelerant Group has a 100% holding). The Accelerant group of companies also has holdings of less than 100% in the following insurance intermediaries registered by the CBI under the Irish IDD Regulations as follows: (i) Corniche Underwriting (EU) Limited (80.5%); (ii) LRMS (Europe) Ltd (19%); (iii) NBS Commercial Limited (80.5%); (iv) REV Risk Management (Europe) Limited (19.5%); and (v) UBI Courtage Limited (77.58%). Accelerant Agency Limited and the six other insurance intermediaries/tied insurance intermediaries detailed above are hereinafter referred to as the "Irish Intermediaries".

Mission Services Ireland Limited ("MSIL") is a tied insurance intermediary of Accelerant Agency Limited. A tied insurance intermediary may only be appointed if it is of good repute and possesses the appropriate general,

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commercial and professional knowledge and competence to enable it to deliver to the client or potential client the proposed services of the entity for whom it acts (e.g. Accelerant Agency Limited). Accelerant Agency Limited remains fully and unconditionally responsible for any act or omission on the part of MSIL when acting on its behalf.

Accelerant Agency Limited engages in claims management activities which come within the definition of "insurance distribution" in the IDD and so comes within the scope of the requirements set out in the IDD and the Irish IDD Regulations (see "IDD" below for further detail).

Accelerant Agency Limited also has a third country branch in the UK, Accelerant Agency Limited UK Branch, which is authorized and regulated by the FCA. See "—United Kingdom Regulation—Entities and Overview" for further detail. EIOPA produced a Supervisory Statement on the use of governance arrangements in third countries to perform functions or activities (the "Supervisory Statement"). See "3. Guidelines" below for further detail. As a result of Brexit, the provisions of the Supervisory Statement apply in relation to the UK branch of Accelerant Agency Limited as it is a third country branch.

A Fitness and Probity Regime was introduced by the CBI under the Central Bank Reform Act 2010 ("2010 Act") and accompanying guidelines and standards issued by the CBI under the powers provided to it under the 2010 Act. The Fitness and Probity Regime was introduced to ensure that individuals performing Controlled Functions ("CF") and Pre-Approval Controlled Functions ("PCF") within a regulated financial service provider are competent and capable, honest, ethical and of integrity. In accordance with the Fitness and Probity Regime, individuals performing PCF and CF roles are subject to an assessment of their fitness and probity both prior to their appointment and on an ongoing basis. The appointment of individuals to PCF positions requires the prior sanction of the CBI. The appointment of individuals to CF positions does not require the prior sanction of the CBI and is instead made by the regulated financial service provider itself having assessed the compliance of the individual with the requirements of the Fitness and Probity Regime.

In early March 2023, the Central Bank (Individual Accountability Framework) Act 2023 ("IAF Act") was signed into law and introduced, among other requirements, a senior executive accountability regime (applicable to certain firms from July 1, 2024), certain obligations on individuals performing CF and PCF roles in relation to expected standards of conduct, additional obligations on individuals performing PCF roles and various enhancements to the Fitness and Probity Regime. For the Irish intermediaries (such as Accelerant Agency Limited), certain elements of the IAF Act are applicable, with the exception of the senior executive accountability regime which is not currently applicable to insurance intermediaries. Training on the new requirements is provided to individuals within Accelerant Agency Limited and MSIL performing CF and PCF roles on at least an annual basis. Additionally, relevant policies, procedures and other documents have been updated, where required, to reflect the new requirements. In addition, the Branch Manager of Accelerant Agency Limited's UK third country branch is subject to the SM&CR introduced in the UK.

The Consumer Protection Code 2012 (as amended) ("CPC") applies to the Irish Intermediaries with respect to the regulated activities they undertake with customers (in particular, consumers) in Ireland. The CPC sets out principles of fairness which must be adhered to including with respect to premium handling, provision of information, customer suitability, post-sale information, processing of claims and rebates and complaints resolution (amongst others). A revised CPC was published in March 2025 and will take effect in March 2026. The existing CPC will continue to apply until then. The modernized CPC will focus on emerging risks to consumer interests arising from digitalization as well as issues around dealing with vulnerable customers and climate risk. There are additional requirements applicable to contracts with consumers in the Consumer Insurance Contracts Act 2019, which among other things, sets out the duties of consumers as to disclosure when they enter into an insurance contract. Furthermore, the Consumer Rights Act 2022 introduces a "blacklist" of terms that will not be permitted in a consumer insurance contract. Starting in June 2025, the provisions of the European Union (Accessibility Requirements of Products and Services) Regulations 2023 will apply to the Irish Intermediaries insofar as they provide e-commerce services. These regulations implement the European Accessibility Act in Ireland and require the incorporation of certain accessibility requirements for persons with disabilities on e-commerce platforms.

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All of the Irish Intermediaries are Irish incorporated companies subject to the provisions of the Companies Act 2014 (as amended) of Ireland which is the key piece of Irish company law and includes requirements regarding board meetings, shareholder meetings, directors' duties, minority interests, distribution of company assets, requirements to maintain books of account and other fundamental requirements of Irish incorporated companies.

Subject to certain regulatory notification requirements both Accelerant Insurance Europe SA and Accelerant Agency Limited can provide services, or establish a branch, in any other Member State of the EEA (which is detailed below in "*Passporting – Freedom of Establishment and Freedom of Services*"). Although, in doing so, they may become subject to the laws of such Member States with respect to the conduct of business in such Member State (i.e., general good provisions), company law registrations and other matters, but will remain respectively subject to financial and operational supervision by the NBB and CBI only.

*Solvency II* 

The Solvency II framework is built on a three-pillar structure: (i) quantitative requirements (such as asset and liability valuation and capital requirements); (ii) qualitative requirements (including governance and risk management of the business and the ORSA); and (iii) supervisory reporting and public disclosure requirements.

The main features of the Solvency II framework include: (i) market consistency (i.e., assets and liabilities to be valued at the amount for which they can be exchanged, transferred or settled in the market); (ii) risk-based (i.e., higher risks will lead to higher capital requirements to cover for unexpected losses); (iii) proportionality (i.e., regulatory requirements will be applied in a proportionate manner to the nature, scale and complexity of the risks inherent to the business of the insurance and reinsurance undertakings); and (iv) group supervision (i.e., supervisors will increase coordination and exchange of information amongst them to improve cross-border supervision of insurance and reinsurance groups).

The Solvency II legislation is implemented on the following three levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Solvency II Directive

The Solvency II Directive, which entered into force in January 2016, lays down the general principles which underpin the uniform rules applicable to insurers and reinsurers and their activities and services. The main objective of the Solvency II Directive is to provide adequate protection of policyholders and beneficiaries as well as to facilitate financial stability and fair and stable markets.

The Solvency II Directive comprises of six titles which cover: (i) taking up and pursuit of direct insurance and reinsurance activities; (ii) provisions for specific types of insurance and reinsurance; (iii) supervision of group undertakings; (iv) reorganization and winding up of undertakings; (v) other provisions; and (vi) transitional and final provisions.

As previously mentioned, one of the pillars of the Solvency II framework is the adequacy of quantitative requirements. To measure this, the Solvency II Directive prescribes the SCR, the Minimum Capital Requirement and a standard formula which are intended to reflect the risk profile of most insurance and reinsurance undertakings. However, where the standardized approach does not adequately reflect the specific risk profile of an undertaking, other measures such as governance requirements (as opposed to quantitative requirements) are permitted and prescribed under the Solvency II Directive.

The Solvency II Directive makes a distinction between life and non-life insurance activities and prohibits insurance undertakings from being authorized to carry out the two simultaneously except for certain activities of limited risk profile. Accelerant Insurance Europe SA only carries out non-life insurance activities under the definition of the Solvency II Directive. The distinction between the two types, as well as the requirement to keep the management of the two types separate (where an insurance undertaking is authorized to carry out both) is to identify and manage the specific risks arising from each type of insurance and reinsurance obligations in relation to the perils covered and processes used in the conduct of business.

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The Solvency II Directive also provides a framework on the supervision and exercise of solvency of insurance and reinsurance undertakings in a group. This allows legal and regulatory oversight of the insurance and reinsurance undertaking of the group company as a whole and facilitates the coordination of supervision through a group supervisor, which is a designated supervisory authority of the Member State(s) concerned.

In order to take account of the international aspects of reinsurance, the Solvency II Directive does not prohibit EEA insurers from obtaining reinsurance from reinsurers licensed outside the EEA. Article 172 of the Solvency II Directive provides that reinsurance contracts concluded by insurance undertakings in the EEA with reinsurers having their head office in a country whose solvency regime has been determined to be equivalent to Solvency II, shall be treated in the same manner as reinsurance contracts with undertakings in the EEA authorized under Solvency II. Post Brexit, the UK has become a third country and as the UK Solvency II Regulations look to undergo reforms, this raises the question as to whether the amended regime in the UK will be given equivalence status by the EU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Delegated Regulation

The Solvency II Directive is further accompanied by the Delegated Regulation which implements technical standards set by the European Commission based on the EIOPA issued guidelines. The Delegated Regulation provides more granular requirements which uphold the overarching principles of the Solvency II Directive and together form the fundamental legal framework of the insurance and reinsurance market in the EEA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Guidelines

EIOPA issues guidelines and recommendations addressed to national competent authorities or insurance undertakings to help establish consistent, efficient and effective supervisory practices and to ensure common and consistent application of European Union law. Even though the guidelines are not legally binding on addressees, competent authorities and financial institutions are required to make every effort to comply with them and competent authorities must follow a "comply or explain" process.

*EIOPA Third Country Branch Supervisory Statement* 

In February 2023, EIOPA issued the EIOPA Third Country Branch Supervisory Statement on the use by EEA-authorized insurance undertakings and intermediaries of governance arrangements (such as branches) in third countries to perform functions or activities in respect of EEA policyholders and risks (the "Supervisory Statement").

In principle, Solvency II and the IDD do not prevent EEA head office insurance undertakings and intermediaries having a branch in a third country (e.g., the UK) through which they conduct regulated activity in respect of EEA risks. In contrast, as a result of Brexit, UK head-office insurance undertakings and intermediaries are no longer able to use their UK licenses to carry on underwriting and other regulated activities in respect of EEA risks. Many UK-based insurance and insurance intermediary groups therefore now include insurance undertakings and/or intermediaries which have a head office in, and are licensed in, an EEA jurisdiction (e.g., Belgium or Ireland) and a third country branch in the UK.

However, whether such structures comply with EU insurance and insurance distribution regulation has come under scrutiny from the EU. In the EIOPA Third Country Branch Supervisory Statement, EIOPA noted that the purpose of a branch should primarily be to serve the market in which it was established. EIOPA stated that branches established in third countries with the sole objective of conducting regulated activities in the EEA should be avoided, and that a third-country branch should not conduct a disproportionate amount of its business aimed at, or in, the EEA (compared with business in the local market of the branch). EIOPA has also stated that where an EEA-based insurance distribution firm establishes a third-country branch, the licensed entity must ensure that this is met with adequate governance policies and procedures, in order to ensure that the licensed entity, including the branch, is able to comply with all applicable EEA requirements.

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The CBI issued a newsletter in September 2023 to insurance stakeholders in which it reminded regulated firms with a third country branch of the key provisions in the Supervisory Statement and to review their current business models considering the Supervisory Statement. The CBI requires the provisions of the Supervisory Statement to be complied with in full.

The UK third-country branches of both Accelerant Insurance Europe SA and Accelerant Agency Limited were established to enable both regulated entities to continue to access the UK market and to support various UK based MGAs involved in underwriting and distributing a range of insurance products in the UK, with the structure and organization of both Accelerant Insurance Europe SA and Accelerant Agency Limited such that an appropriate level of corporate substance (proportionate to the nature scale and complexity of their activities within the EEA) is maintained at the level of their respective head offices.

The UK third-country branches of both Accelerant Insurance Europe SA and Accelerant Agency Limited are each supported by a UK-based team of experienced individuals with expertise in areas including underwriting, distribution, and claims. This enables the UK third-country branch of Accelerant Insurance Europe SA to delegate underwriting and claims authority to the UK third-country branch of Accelerant Agency Limited, which, in turn, delegates underwriting and claims authority to carefully selected UK-based MGAs – responsible for distributing and administering insurance products – and carefully selected UK-based third-party administrators – responsible for handling claims.

Certain activities are also outsourced by Accelerant Insurance Europe SA, Accelerant Agency Limited and their respective UK third-country branches to Accelerant Services (UK) Limited – an intra-group service company – under a Master Services Agreement. These support services include: risk management; compliance; legal; human resources; actuarial (Pricing); analytics and insights; product management; information technology; finance; and technical Accounting.

Day-to-day oversight of the support services provided by Accelerant Services (UK) Limited is monitored by senior individuals within Accelerant Insurance Europe SA, Accelerant Agency Limited, and their respective UK third-country branches. Additional oversight is provided in accordance with the requirements of the third-party risk management framework applicable to Accelerant Insurance Europe SA, Accelerant Agency Limited and their respective UK third-country branches.

*Future Developments* 

In its review of the Solvency II Directive, EIOPA provided an opinion to the European Commission in December 2020 that whilst the Solvency II framework works well and does not require fundamental change, some improvements were needed in three key areas: (i) balanced updating of the regulatory framework; (ii) recognition of the economic situation; and (iii) completing the regulatory toolbox.

In response to the European Commission's review of the Solvency II Directive in July 2020 which highlighted the rules regarding long term guarantee measures, solvency and minimal capital requirements and supervision of insurance companies across the EEA Member States, the European Commission set out a proposal to amend the Solvency II Directive in September 2021 which would in effect lower regulatory obligations of small and low-risk insurance companies, take into account long-term and climate change risks and enhance supervision at group and cross border level. Echoing such proposed changes, the European Parliamentary Research Service ("EPRS") published a briefing in January 2023 on a proposal to amend the Solvency II Directive, particularly regarding capital requirements and valuation of insurance liabilities and cross border supervision as well as clarifications on the proportionality principle.

In December 2023, the European Council (the "Council") announced that it had reached a provisional agreement with the European Parliament (the "Parliament") on amendments to the Solvency II Directive. In January 2024, the texts of the provisional agreements were published by the Council. The Council formally

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adopted the amendments on November 5, 2024 and the amendments are expected to take effect in the final quarter of 2026. Under the amendments adopted to Solvency II, group supervisors will have enhanced direct powers against insurance holding companies which can include restricting or prohibiting distributions or interest payments to shareholders where (among other circumstances) the insurance holding company has failed to ensure that the group complies with the requirements of Solvency II.

In addition to the above Solvency II Directive reform proposals, the European Commission continues to promote the development of the Insurance Recovery and Resolution Directive ("IRRD"). The proposal aims to harmonize national laws on recovery and resolution of reinsurance undertakings. Political agreement on the IRRD was reached by the Council and the Parliament in December 2023 and the Council formally adopted the IRRD in November 2024. The IRRD is expected take effect in the final quarter of 2026.

*ESG* 

In August 2021, two delegated regulations (the "EC Regulations") amending sectoral legislation, including the Solvency II Directive and the IDD, were published by the European Commission. The EC Regulations focus on the integration of sustainability into key activities, including product oversight and governance, risk management and suitability assessment procedures. The EC Regulations applied from August 2022.

The Commission Delegated Regulation (EU) 2021/1256 of April 21, 2022 amending the Delegated Regulation introduces obligations for reinsurance undertakings to manage "sustainability risks" and ensure sustainability factors are taken into account in risk assessments.

Companies in scope of the Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464, the "CSRD"), which includes EU companies with over €50 million in turnover, at least 250 employees and/or assets exceeding €25 million, as well as certain non-EU companies, and undertakings wherever situated that are listed on an EU regulated market, are required to publish sustainability-related disclosures against common reporting standards adopted by the European Commission in annual financial statements. The reporting requirements are being phased in over the next few years, with the largest companies required to report in respect of financial years starting on or after January 1, 2024. Under a simplification package (the "Omnibus Package") proposed by the European Commission in February 2025 (but not yet implemented), additional firms subject to the reporting requirements in respect of their 2025 or 2026 financial years will have those requirements postponed to 2027 and 2028, respectively.

In July 2024, the Corporate Sustainability Due Diligence Directive ("CSDDD") entered into force. The CSDDD requires in-scope companies to engage in a thorough due-diligence process encompassing identification, assessment, prevention and mitigation of negative impacts on human rights and the environment. To mitigate adverse impacts on human rights and the environment, a broad range of elements must be addressed, including child labour, forced labour, greenhouse gas emissions and deforestation. Importantly, as the law currently stands, in-scope companies are required to examine and document findings beyond their immediate operations, encompassing the activities of both upstream and, for certain in-scope companies, downstream business partners. The categories of companies to which CSDDD applies is determined on the basis of (i) the number of employees and worldwide revenue for EU companies and (ii) revenues within the EU for non-EU companies.

In February 2025, the European Commission published an "Omnibus Package" of proposed measures designed to simplify the key EU laws on corporate sustainability reporting, due diligence and trade, including a number of proposed amendments to the application dates and requirements for sustainability reporting and due diligence under the CSRD and CSDDD, respectively. As part of these measures, a "stop the clock" directive proposes to delay the application dates of CSRD and CSDDD for the second and third wave of companies due to be phased in; and a "substantive directive" aims to significantly reduce the number of companies in scope of CSRD and reduce the number of mandatory obligations on in-scope companies in both CSRD and CSDDD. The "stop the clock" directive was adopted and entered into force in April 2025. Member States have until December 31, 2025 to transpose the directive. The "substantive directive" has not yet been adopted.

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*The IDD* 

The IDD applies to both Accelerant Insurance Europe SA and Accelerant Agency Limited. The IDD regulates the way insurance products are designed and sold both by insurance intermediaries (e.g., Accelerant Agency Limited and the other Irish Intermediaries) and directly by insurance undertakings (e.g., Accelerant Insurance Europe SA). The provisions set out in the IDD mainly relate to registration requirements for undertakings engaging in regulated activity coming within the scope of the IDD, professional indemnity requirements, standards of product disclosure, promotional materials and product governance and oversight. Local regulations and conduct of business rules implemented in each of the European Member States in which Accelerant Insurance Europe SA/NV and Accelerant Agency Limited do business supplement the requirements set out in the IDD. 

*Passporting – Freedom of Services and Freedom of Establishment* 

Subject to certain regulatory notification requirements, both Accelerant Insurance Europe SA and Accelerant Agency Limited can provide services, or establish a branch, in any other Member State of the EEA subject to the laws and regulations of the home Member State, as well as local rules of the host Member State(s). Both Accelerant Insurance Europe SA and Accelerant Agency Limited have benefited from the passporting regime on both a freedom of services ("FoS") and freedom of establishment ("FoE") basis. Accelerant Insurance Europe SA has branches in Italy, Greece, Spain, and Ireland and is in the process of establishing a branch in Luxembourg. It provides services in Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. Accelerant Agency Limited provides services in all EEA Member States (and it has no branches in the EEA). In Ireland, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

*Italy* 

Insurance companies incorporated and authorized in accordance with the laws of an EEA Member State ("EEA Insurance Companies") are allowed to provide their services in Italy on a FoS and/or FoE basis. In Italy, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

In both cases, the relevant entity is required to comply with the notification procedures between the supervisory authorities of the competent Home Member State and the Italian Supervisory Authority on insurance companies (which is the Institute for the Supervision of Insurance – "IVASS").

An EEA Insurance Company operating through the establishment of a branch is required to appoint a branch manager, to be domiciled at the branch office and granted with mandate powers to: (i) represent the insurance undertaking before courts and all Italian authorities; and (ii) enter into and execute any agreement or deed relating to the activities carried out by the EEA Insurance Company in Italy. Should the general representative be a legal person, its office must be registered in Italy and it must appoint a natural person as its representative to be domiciled in Italy and granted with the powers described above.

EEA Insurance Companies operating in Italy are required to duly comply with general good provisions, and, in particular with conduct of business rules enacted to protect policyholders and other beneficiaries of insurance benefits.

IVASS is entitled to take appropriate measures in respect of EEA Insurance Companies whose operation in Italy is detrimental to the general interests of the policyholders and with the aim of granting the proper functioning of the Italian insurance and reinsurance market.

Accelerant has a minority ownership position in one MGA in Italy.

*Greece* 

EEA Insurance Companies can conduct business in Greece on a FoS and/or FoE basis. The relevant supervisory authorities of their home Member States are responsible for the prudential and financial supervision

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of these undertakings, while the Greek supervisory authority on private insurance (which is the Bank of Greece – "BoG") monitors their compliance with the applicable legislation on the taking-up and pursuit of insurance and reinsurance business. The BoG is entitled to require the remedy of any irregularities detected in compliance with applicable legislation on the taking-up and pursuit of insurance and reinsurance business and to take appropriate emergency measures to prevent or penalize such irregularities, including the power to prevent insurance and reinsurance undertakings from continuing to conclude and/or distribute new insurance contracts within Greece.

In order to conduct business in Greece, undertakings incorporated in another EEA Member State must comply with the required notification procedure performed between the supervisory authorities of their state of origin and the host state (i.e., the BoG). The rules on the establishment and operation of insurance and reinsurance undertakings are set forth in Law 4364/2016 (Government Gazette 13 A) that incorporates into the Greek legislation the corresponding provisions of the Solvency II Directive. Special consideration should be given to Chapter 8 of Law 4364/2016 regarding the right of establishment and the freedom to provide services. Moreover, insurance and reinsurance conducting cross-border business in Greece, either through a branch or under the FoS, are required to comply with the general good provisions designated by the BoG such provisions being:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) articles 5, paragraph 7, second subparagraph (transaction relations between insurance distributors and between
themselves and their customers), 19, paragraph 4, first and second subparagraphs (special register and single information point) and 28, paragraph 3 (general information provided by the insurance intermediary or insurance undertaking) of Law
4583/2018 transposing into Greek legislation the IDD (Directive (EU) 2016/97 on insurance distribution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) various provisions of Law 4364/2016, regulating: the obligation of foreign insurance undertakings providing
MTPL insurance in Greece via freedom to provide services to participate in the 'Auxiliary Fund (providing) insurance of liability arising out of motor accidents' as well as in the Motor Insurers Bureau and to appoint a special
representative (article 120); the measures that the BoG can take against foreign undertakings which breach applicable legislation (article 123); advertising of foreign insurance undertakings' services (article 124); the indirect taxes imposed
on insurance contracts concluded under freedom to provide services and the obligation for appointment of a tax representative (article 125); the law applicable on the insurance contract (article 145); the delivery of the insurance contract along
with a certificate of insurance to the policyholder in cases of compulsory insurances as well as the time-frame set for the reimbursement of the insurance premium collected by insurance intermediaries to the insurance undertaking (article 146,
paragraphs 1 and 2); BoG's right to request from insurance undertakings any information necessary for the conduct of its supervision, including the conveyance of their insurance terms (article 148, paragraph 3, b); the information which must be
pre-contractually given to policyholders of non-life insurances (arts. 150-151 of Law 4364/2016); the obligations of loss adjusters with which the insurance undertaking co-operates (article 259); the requirements that the claims representative (that
must be appointed by all insurance undertakings engaging in class 10 of non-life insurance, which is the MTPL insurance) and the legal representative of the Greek branches of EEA and third countries' insurance undertakings must meet (articles
255 and 261, respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the provisions of the Presidential Decree 237/1986 on the MTPL insurance which is relevant to
Accelerant's activities insofar as it engages in motor vehicle liability insurance, the pursuit of which is included in Accelerant's scheme of operations notified to the supervisory authority of its home Member State (Belgium) and
communicated to the BoG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) the provisions of Law 3651/2008 (as well as of Law 4512/2018 amending the latter), setting requirements for
the provision of road assistance services, which is also relevant to Accelerant's activities to the extent that it conducts insurance falling within the scope of class 18 'Assistance' of non-life insurances, the pursuit of which is
included in Accelerant's scheme of operations notified to the supervisory authority of its home Member State (Belgium) and communicated to the BoG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) the decision No. 87/05.04.2016 of the BoG's Executive Committee detailing the settlement and payment of
insurance money in cases of MTPL insurance; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) the decision No. 88/05.04.2016 of the BoG's Executive Committee regarding the procedures that insurance
undertakings must have in place for the examination of policyholders' complaints.

Accelerant has a minority ownership position in one MGA in Greece.

In Greece, Accelerant Insurance Europe SA was initially authorized to provide insurance under the FoS regime, with a Greek branch now also established.

*Spain* 

EEA Insurance Companies may conduct business in Spain on a FoS and/or FoE basis. In order to conduct such business in Spain, EEA Insurance Companies must comply with the required notification procedures between the supervisory authorities of the state of origin and the Spanish insurance and reinsurance regulator (*Dirección General de Seguros y Fondos de Pensiones*) ("DGSFP").

EEA Insurance Companies which operate in Spain under the FoE regime and/or under the FoS regime must comply with certain Spanish general good provisions and the applicable market behaviour provisions set out in Title III, Chapter VII of Spanish Law 20/2015, of 14 July, on the regulation, supervision and solvency of reinsurance entities. Likewise, they shall also submit to the DGSFP, on the same terms as Spanish insurance companies, all the documents required by the DGSFP in order to check whether they comply in Spain with the Spanish legal provisions applicable to them. A non-exhaustive list of the Spanish general good provisions applicable to insurance undertakings incorporated in EEA Member States is available in the DGSFP's website.

In Spain, Accelerant Insurance Europe SA is authorized to conduct business under the FoE regime (having established a Spanish branch for such purposes) and under the FoS regime.

Accelerant has a majority ownership position in two MGAs in Spain.

*Ireland* 

Insurance undertakings or insurance intermediaries authorized in an EEA Member State may carry on business in Ireland either under the FoE (through a branch) or under the freedom to provide services. Responsibility for the prudential supervision of these undertakings lies with the relevant supervisory authorities of the home Member State. Insurance undertakings or insurance intermediaries operating in Ireland on this basis are required to duly comply with general good rules, and, in particular with conduct of business rules enacted to protect policyholders and other beneficiaries of insurance benefits provisions (e.g., The Consumer Protection Code 2012 (as amended)).

In Ireland, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

*Changes of Control* 

*Belgium* 

Before a person or entity (or two or more persons acting in concert) can acquire a direct or indirect holding in Accelerant Insurance Europe SA, which represents 10% or more of the capital or of the voting rights, or which makes it possible to exercise a significant influence over the management of Accelerant Insurance Europe SA ("Qualifying Holding"), prior written approval/non-objection must be obtained from the NBB. Thereafter, the prior approval/non-objection of the NBB must be sought by any person or entity (or two or more persons acting in concert) proposing to, directly or indirectly, increase a Qualifying Holding such that the holding would reach or exceed 20%, 30% or 50% (each a "Prescribed Percentage") of the share capital or voting rights in Accelerant Insurance Europe SA; or a holding such that Accelerant Insurance Europe SA would become a subsidiary of the acquiror.

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Prior to granting approval for the acquisition of a Qualifying Holding, the NBB will consider a number of factors, including the financial strength of the proposed acquiror, the proposed acquiror's reputation (including its integrity and professional competence) and the proposed acquiror's plans for the future operations of Accelerant Insurance Europe SA. ****The NBB has a total of 82 working days (where the proposed acquiror is based in the EEA) and 92 working days (where the proposed acquiror is based outside the EEA) to review the application and provide its approval/non-objection.

In addition, the NBB must be notified in advance (no approval is required) of a proposed, direct or indirect, disposal of a Qualifying Holding or a reduction in holding such that the direct or indirect holding or capital or voting rights in Accelerant Insurance Europe SA would fall below a Prescribed Percentage, or such that Accelerant Insurance Europe SA would cease to be a subsidiary of the acquiror.

Furthermore, a person or entity (or two or more persons acting in concert) who has acquired, directly or indirectly, a holding in Accelerant Insurance Europe SA, or who has increased, directly or indirectly, its holding in Accelerant Insurance Europe SA, such that the holding reaches or exceeds the threshold of 5% of the share capital or voting rights in Accelerant Insurance Europe SA, without however holding a Qualifying Holding, is required to notify the NBB in writing within 10 working days of the acquisition or increase of the holding. The same notification is required from any person or entity (or two or more persons acting in concert) who has ceased to hold, directly or indirectly, a holding of more than 5% in the share capital or voting rights in Accelerant Insurance Europe SA.

The aforementioned notification requirements also apply where the proportion of share capital or voting rights held in Accelerant Insurance Europe SA reaches, exceeds or, as the case may be, is reduced below the thresholds referred to above (including Qualifying Holdings and Prescribed Percentages) as a result of a situation involving a change in the level of a holding which is not the consequence of an acquisition or disposal, in particular the existence of multiple voting rights or the acquisition of own shares by Accelerant Insurance Europe SA.

*Ireland* 

In relation to Accelerant Agency Limited, there is no pre-approval requirement under Irish law on a change of control. However, Accelerant Agency Limited will be required to notify the CBI without unreasonable delay where it becomes aware of a change of control.

*Restrictions on Paying Dividends* 

*Belgium* 

Under the Belgian Code of Companies and Associations ("BCCA"), no distribution (e.g., payment of dividends) may be made where the net assets in Accelerant Insurance Europe SA, as shown in the annual accounts, are, or would become, as a result of such a distribution, less than the amount of the paid-up capital or, if this amount is greater, the called-up capital, increased by all the reserves which the law or Accelerant Insurance Europe SA's articles of association do not allow to distribute. The "net assets" are defined as the total amount of the assets minus the provisions, the liabilities and, except in exceptional cases to be stated and justified in the notes to the financial statements, the unamortized amounts of incorporation and expansion costs and research and development costs.

Moreover, should the NBB become aware that Accelerant Insurance Europe SA is not operating in accordance with the applicable legislative framework, or where it would have indications that Accelerant Insurance Europe SA might no longer operate in accordance with such legislative framework within the next twelve months, the NBB may prohibit or limit the payment of dividends as long as Accelerant Insurance Europe SA has not remedied the situation.

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*Ireland* 

Under Irish company law, Accelerant Agency Limited is permitted to make distributions only out of profits available for distribution. Irish insurance regulatory laws do not prohibit the payment of dividends by insurance intermediaries.

*Regulatory Reports and Returns* 

*Belgium* 

Under the Solvency II framework, Accelerant Insurance Europe SA is required to submit quarterly and annual filings with the NBB, including an annual SFCR. In addition, Accelerant Insurance Europe SA must submit an annual ORSA report to the NBB. The ORSA report provides a summary of all the activities and processes during the preceding year to assess and report on risks and ensure that overall solvency needs are met at all times, including a forward-looking assessment. It also explains the linkages between business strategy, business planning and capital and risk management processes.

*Ireland* 

Insurance intermediaries are subject to ongoing prudential monitoring of their compliance with the registration requirements, which includes holding an adequate policy of professional indemnity insurance. In order for the CBI to carry out its supervisory functions, it requires insurance intermediaries such as Accelerant Agency Limited to complete and submit an annual return which includes information relating to the insurance intermediary's finances, ownership, professional indemnity insurance and compliance with conduct of business rules.

*Financial Compensation Schemes* 

*Ireland* 

The Insurance Compensation Fund is a scheme established under the Irish Insurance Act 1964 (as amended) which allows eligible customers of non-life insurers (including non-life insurers authorized in any EU member state who are selling to Irish customers) to seek compensation if that firm were to become insolvent. The fund is funded by an annual levy calculated on the basis of the amount of premium earned by a non-life insurer in respect of policies that cover risks in Ireland.

*Belgium* 

In Belgium, there is no general insurance compensation scheme in respect of non-life insurance, but only the Belgian Common Guarantee Fund (Fonds Commun de Garantie Belge/ Belgisch Gemeenschappelijk Waarborgfonds) which is limited to compensation in the framework of compulsory motor vehicle liability insurance. This scheme is established under the Belgian Law of November 21, 1989 on compulsory motor vehicle liability insurance (as amended). It allows an injured party to seek compensation directly from the scheme in certain circumstances including if the insurance undertaking which has an obligation to indemnify were to become insolvent. The fund is funded by the payment of an annual levy and participations in the coverage of the claims reserves according to each affiliates' share in the motor third party liability insurance market in Belgium. Accelerant Insurance Europe SA is authorized to provide motor third party liability insurance but does not currently provide this coverage in the Belgian market.

*Greece* 

In Greece, there is not a single body or Financial Compensation Scheme entrusted with the duty to provide compensation to insureds of all classes of non-life insurances, in case of insolvency of an insurance undertaking. However, specifically in case of insolvency of the insurance undertaking covering the civil liability of the driver

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of the damaging vehicle, the "Auxiliary Fund (providing) insurance of liability arising out of motor accidents" provides compensation to injured third parties. In the event of Accelerant Insurance Europe SA's insolvency, in the first place, the "Auxiliary Fund" would be obliged to reimburse third parties injured in car accidents caused by drivers insured by Accelerant Insurance Europe SA against their liability arising out of the use of motor vehicles (class 10 of non-life insurances regarding MTPL insurance, according to the Solvency II Directive's classification). Upon reimbursing the injured third parties, the "Auxiliary Fund" would be entitled to claim full reimbursement of the sum paid from the Belgian Guarantee Fund, that is the Compensation Body of Accelerant's home Member State.

*Italy* 

In Italy, Law no. 213 of December 30, 2023 introduced the obligation for companies incorporated in Italy or foreign companies with a permanent establishment in Italy, registered in the Italian Companies Register, to enter into insurance contracts covering damages to certain tangible assets directly caused by natural disasters and catastrophic events.

In this context, SACE S.p.A., an Italian insurance company controlled by the Italian Ministry of Economy and Finance, has established a guarantee scheme in favor of those insurers and reinsurers authorized to cover these natural catastrophe risks in Italy that are required to provide such insurance coverages. According to this guarantee scheme, SACE will cover the compensations for the occurrence of these events up to 50% for a total amount not exceeding the ceiling established by the 2024 Budget Law, equal to €5 billion for 2025.

*Spain* 

In Spain, certain types of insurance contracts (even if they are concluded under the FoE regime or under the FoS regime) are subject to premium surcharges in favour of the Spanish Insurance Compensation Consortium (Consorcio de Compensación de Seguros) ("CCS") in order to fund the exercise of the CCS' functions in the Spanish insurance sector (among others, the coverage of extraordinary risks not covered by insurance companies, compulsory vehicle insurance, combined agricultural insurance and the liquidation of insolvent Spanish insurance undertakings). The CCS is a public business organization that is attached to the Spanish Ministry of Economy, Trade and Enterprises, through the DGSFP.

The insurance contracts which are subject to surcharge in favour of the CCS are those contracts which fall under any of the following insurance business lines: (i) land vehicles, railway vehicles, wilderness fires and events, other damage to property and for miscellaneous pecuniary losses; (ii) civil liability in land motor vehicles; (iii) life (in contracts that guarantee exclusively or primarily the risk of death); and (iv) accidents (in contracts guaranteeing the risk of death or providing financial compensation for permanent invalidity or temporary incapacity).

It should be noted that Spanish law does not apply to the liquidation of insurance undertakings of other EEA Member States or of its branches in Spain. In this regard, the CCS does not have any faculties with regard to the insolvency or liquidation of insurance undertakings of other EEA Member States (for example, Accelerant Insurance Europe SA) or of their branches in Spain.

<u>Cayman Islands Insurance Regulation</u> 

Accelerant Re Cayman holds a Class B(iii) Insurance License issued in accordance with the terms of The Insurance Act, 2010 (as amended) of the Cayman Islands (the "Act"), and is regulated by the Cayman Islands Monetary Authority ("CIMA"). As the holder of a Class B(iii) Insurance License, Accelerant Re Cayman is permitted to undertake insurance business in accordance with its business plan approved by CIMA.

Accelerant Re Cayman is subject to minimum capital and surplus requirements, and its failure to meet such requirements could subject it to regulatory action. Pursuant to The Insurance (Capital and Solvency) (Classes B, C and

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D Insurers) Regulations, 2012 (the "Capital and Solvency Regulations"), Accelerant Re Cayman is required to maintain the statutory minimum capital requirement (as defined under the Capital and Solvency Regulations) and prescribed capital requirement (as defined under the Capital and Solvency Regulations), and a minimum margin of solvency equal to or in excess of the total prescribed capital requirement. Any failure to meet the applicable requirements or minimum statutory capital requirements could subject the company to further examination or corrective action by CIMA, including restrictions on dividend payments, limitations on the company's writing of additional business or engaging in finance activities, supervision or liquidation.

CIMA may at any time direct Accelerant Re Cayman, in relation to a policy, a line of business or the entire business, to cease or refrain from committing an act or pursing a course of conduct and to perform such acts as in the opinion of CIMA are necessary to remedy or ameliorate the situation. Furthermore, CIMA may require a licensee to take steps to rectify any matters, suspend the license or revoke the license if, CIMA is of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee is or appears to be likely to become unable to meet its obligations as they fall due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee is carrying on its business in a manner detrimental to the general public interest or to the
interests of its creditors or policy holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the activities of any member of the licensee's insurance group are detrimental to those interests of the
licensee's creditors as well as its policy holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee has contravened the Act or the Anti-Money Laundering Regulations (2023 Revision) of the Cayman
Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the licensee has failed to comply with a condition of its license or with the requirements of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the direction and/or management of a licensee's business has not been conducted in a fit and proper
manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a person holding a position as a director, manager or officer of a licensee's business is not a fit and
proper person to hold the respective position; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such
control or ownership.

Failures to comply with a direction given by CIMA may be punishable by a fine of up to five hundred thousand Cayman Islands dollars ($600 thousand based on the Cayman Islands' exchange rate of CI$0.83 per $1.00 as of March 31, 2025) or imprisonment for a term of 10 years or both, and a fine of an additional ten thousand Cayman Islands dollars ($12 thousand) (as of March 31, 2025) for every day after conviction on which the offense so continues.

Whenever CIMA believes that a licensee is or may become unable to meet its obligations as they fall due, is carrying on business in a manner likely to be detrimental to the public interest or to the interest of its creditors or policyholders, has contravened the terms of the Act, or has otherwise behaved in such a manner so as to CIMA to call into question the licensee's fitness, CIMA may take one of a number of steps, including requiring the licensee immediately to take steps to rectify the matter; suspending the license of the licensee pending a full inquiry into the licensee's affairs; revoking the license; imposing conditions with respect to decisions made by the licensee, including the suspension of voting rights or nullification of votes cast; imposing conditions, or further conditions, upon the license and amending or revoking any such condition; requiring the substitution or removal of any director, manager or officer of the licensee; at the expense of the licensee; appointing a person to advise the licensee on the proper conduct of its affairs; at the expense of the licensee, appointing a receiver or person to assume control of the licensee's affairs who shall have all the powers necessary to administer the affairs of the licensee including power to terminate the insurance business of the licensee; and requiring such action to be taken by the licensee as CIMA considers necessary.

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In addition, as a Cayman Islands exempted company, Accelerant Re Cayman may not carry on business or trade locally in the Cayman Islands except in furtherance of its business outside the Cayman Islands and is prohibited from soliciting the public of the Cayman Islands to subscribe for any of its securities or debt. The company is further required to file a return with the Registrar of Companies in January of each year and to pay an annual registration fee at that time.

The Cayman Islands has no exchange controls restricting dealings in currencies or securities.

<u>Canada Insurance Regulation</u> 

Accelerant Insurance Company of Canada (formerly operated under the name Omega General Insurance Company, "Accelerant Insurance Canada") is subject to federal, as well as provincial and territorial, regulation in Canada in the provinces and territories in which Accelerant Insurance Canada underwrites insurance and reinsurance. The Office of the Superintendent of Financial Institutions ("OSFI") is the federal regulatory body that, under the Insurance Companies Act (Canada), prudentially regulates federal Canadian and non-Canadian insurance and reinsurance companies operating in Canada. Accelerant Insurance Canada is licensed to carry on insurance business by OSFI and in each province and territory.

Accelerant Agency Canada Ltd ("Accelerant Agency Canada") is required to register with the relevant regulatory authority in each province and territory in which it operates in Canada. There is also a requirement for a principal broker, acting on behalf of Accelerant Agency Canada, to be licensed in each province and territory in which Accelerant Agency Canada operates. Accelerant Agency Canada and its principal broker are both registered or licensed to carry on insurance business in each province and territory in Canada.

Under the Insurance Companies Act (Canada), Accelerant Insurance Canada is required to maintain an adequate amount of capital in Canada, calculated in accordance with a test promulgated by OSFI called the Minimum Capital Test. OSFI has implemented a risk-based methodology for assessing insurance and reinsurance companies operating in Canada known as its "Supervisory Framework." In applying the Supervisory Framework, OSFI considers the inherent risks of the business and the quality of risk management for each significant activity of each operating entity. Under the Insurance Companies Act (Canada), approval of the Minister of Finance (Canada) is required in connection with certain acquisitions of shares of, or control of, Canadian insurance companies such as Accelerant Insurance Canada, and notice to and/or approval of OSFI is required in connection with the payment of dividends by or redemption of shares by Canadian insurance companies such as Accelerant Insurance Canada.

Accelerant Insurance Canada is also subject to Canadian provincial and territorial insurance legislation and regulation, governing market conduct, including pricing, underwriting, coverage and claim conduct, in varying degrees by province/territory and by product line.

**Privacy** 

Accelerant is subject to various data privacy laws and regulations, as applicable in the jurisdictions in which it operates. The Company regularly monitors emerging and evolving legislation in the various jurisdictions and implements the necessary processes to maintain the integrity and confidentiality of personal information.

<u>United States Privacy Laws</u> 

Federal law and the laws of many states require financial institutions to protect the security and confidentiality of all personal information processed by such financial institutions, to notify the relevant individuals about their policies and practices relating to collection and disclosure of customer information, and their policies relating to protecting the security and confidentiality of that information and to notify regulators and individuals in the event of certain data breaches. Federal law and the laws of many states also regulate disclosures and disposal of customer information. Congress, state legislatures, and regulatory authorities are expected to consider additional regulation relating to privacy and other aspects of customer information.

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Additionally, in response to the growing threat of cyber-attacks in the insurance industry, certain jurisdictions have begun to consider new cybersecurity measures, including the adoption of cybersecurity regulations which, among other things, would require insurance companies to establish and maintain a cybersecurity program and implement and maintain cybersecurity policies and procedures. On October 24, 2017, the NAIC adopted its Insurance Data Security Model Law, intended to serve as model legislation for states to enact in order to govern cybersecurity and data protection practices of insurers, insurance agents, and other licensed entities registered under state insurance laws. As of February 1, 2025, a version of the model law has been adopted by more than 25 states, such as Indiana and Iowa, but it is not an NAIC accreditation standard. The New York State Department of Financial Services ("NYSDFS") issued Cybersecurity Regulations for Financial Services Companies that require certain parts of Accelerant's insurance operations to, among other things, establish and maintain a cybersecurity policy, a cybersecurity breach incident response process, and to designate a Chief Information Security Officer.

The Gramm-Leach-Bliley Act ("GLBA") and the Fair Credit Reporting Act ("FCRA") impose privacy and information security requirements on financial institutions, including obligations to protect and safeguard consumers' nonpublic personal information and creditworthiness information, respectively, and limitations on the use and sharing of such information. The GLBA requires administrative, technical, and physical safeguards to ensure the security, confidentiality, integrity, and proper disposal of nonpublic personal information, and the FCRA imposes similar information security requirements regarding the protection of creditworthiness information. The FCRA limits an entity's ability to disclose creditworthiness information to affiliates and nonaffiliates unless certain notice requirements are met and the consumer does not elect to prevent or "opt out" of the disclosure, and it limits an entity's ability to use creditworthiness information except for certain authorized purposes. The GLBA limits a financial institution's disclosure of nonpublic personal information to unaffiliated third parties unless certain notice requirements are met and the consumer does not elect to prevent or "opt out" of the disclosure. The GLBA requires that financial institutions provide privacy notices to their customers. Certain states have implemented certain requirements of the GLBA, through adoption of the NAIC Privacy of Consumer Financial and Health Information Regulation and the NAIC Standards for Safeguarding Customer Information Model Regulation.

Many states have enacted privacy and data security laws that impose compliance obligations beyond those imposed by the GLBA, including obligations to protect sensitive personal information, as well as to notify state regulators including the state Attorneys General of data security incidents.

The California Consumer Privacy Act, amended by the California Privacy Rights Act ("CCPA") in 2020, enhances privacy rights and consumer protection for residents of California. Subject to certain exceptions, the CCPA requires companies operating in California to determine the types of personal information retained on California residents; to provide detailed privacy notices to individuals from whom personal information is collected that informs such individuals of the purpose of this information collection and whether such information is shared with third parties; to develop systems allowing such companies to respond efficiently to requests by California residents seeking to determine what information such companies possess or requesting deletion of their information; and to ensure that service providers and other third parties to whom these companies provide such personal information adhere to certain contractual requirements. Regulations have been issued and are forthcoming by the California Privacy Protection Agency ("CPPA"). CCPA imposes requirements relating to data minimization and correction and provides residents with additional rights over their personal information, including the right to opt-out of the use of their personal information in online behavioral advertising and to opt-out of certain types of consumer profiling. The CPPA, that has administrative enforcement authority over CCPA and other California privacy laws and oversees CCPA rulemaking.

Several states have enacted comprehensive data privacy laws that require in scope businesses to disclose information about their privacy practices and give state residents rights to access, delete, and correct their personal information and to opt out of the use of their information for targeted advertising, profiling that results in the provision or denial of decisions including insurance services, and from having their personal information sold to third parties. Most of these laws broadly exempt entities covered by the GLBA or insurers more generally; other laws such as the CCPA only exempt personal information that is subject to the GLBA and some

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types of data subject to FCRA. These exemptions under the CCPA do not apply to the statute's private right of action, which provides for statutory damages, for an unauthorized access and exfiltration, theft, or disclosure of certain types of personal information as a result of the violation of a duty to maintain reasonable security procedures and practices. Additionally, the CCPA applies to the personal information of California residents collected in the employment, job applicant, and business-to-business settings. Violations of the CCPA and similar state privacy laws can result in civil or administrative penalties, and compliance with the evolving state privacy laws may lead to increased legal risks and compliance investments.

There also has been increased scrutiny, including from state regulators, regarding the use of "big data" techniques, and some state laws impose additional restrictions on automated decision-making. These laws and regulations have emerged not only from generally applicable privacy laws, but also from insurance-specific regulatory bodies. The NAIC has established a dedicated working group, known as the Big Data and Artificial Intelligence (H) Working Group, to consider big data issues, such as the lack of transparency and potential for bias in algorithms used to synthesize big data. This Working Group released a Memo and Report regarding its AI survey for life insurance in December 2023. Moreover, in December 2023, the NAIC also adopted a new model bulletin entitled "Use of Algorithms, Predictive Models, and AI Systems by Insurers." The AI Bulletin also sets forth state insurance regulators' expectations on how insurers should govern the use of such technologies by or on behalf of the insurer to make or support such decisions. State insurance regulators have started to adopt versions of the AI Bulletin and have released bulletins discussing the types of information that regulators may request during an investigation or examination of an insurer in regard to AI systems.

As a result of increased innovation and technology in the insurance sector, the NAIC is monitoring technology developments that impact the state insurance regulatory framework and has developed or is developing regulatory guidance, as appropriate. For example: (1) the NAIC has adopted amendments to the anti-rebating provisions of the NAIC's Unfair Trade Practices Act to address new technologies that are being deployed to add value to existing insurance products and services; (2) the NAIC has adopted guiding principles related to AI, its use in the insurance sector, and its impact on consumer protection and privacy, marketplace dynamics and the state-based insurance regulatory framework; and (3) the NAIC's Privacy Protections (H) Working Group is in the process of developing a new model law to replace the NAIC's Insurance Information and Privacy Protection Model Act and the NAIC's Privacy of Consumer Financial and Health Information Regulation with one new model law. Further, the NAIC and state insurance regulators have been focused on addressing unfair discrimination in the use of consumer data and technology, and some states have passed laws or introduced legislation targeting unfair discrimination practices. Several states have also issued guidance regarding the use of big data technology in compliance with anti-discrimination laws.

State regulators, most notably state departments of insurance, have also taken a more active role in regulating the insurance industry's use of big data and AI. For example, on June 30, 2022, the California Department of Insurance released Bulletin 2022-5, which placed certain limitations on the use of AI and alternative data sets by the insurance industry. Bulletin 2022-5, among other things, explained that insurance companies must avoid discrimination that can result from the use of AI as well as big data for activities such as underwriting, marketing, rating, processing claims, and investigating suspected fraud concerning any insurance transaction that impacts California residents. The Colorado Commissioner of Insurance issued final enabling regulations to Colorado's algorithmic accountability in insurance statute, which went into effect on November 14, 2023; the regulations are aimed at addressing the potential for unfair bias against certain protected classes. Additional states are also taking action, which may result in further non-uniform legislation impacting how data, algorithms, models, automated decision-making tools and AI in general can or should be used across insurance practices. Moreover, U.S. States, including Colorado, Utah and California, have passed comprehensive general AI legislation, and many other states are considering such legislation to govern and manage risk of the development and deployment of AI technologies.

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<u>UK Privacy and Data Protection Laws</u> 

The main law regulating the processing of personal information (i.e., data which identifies an individual or from which an individual is identifiable) in the UK is the General Data Protection Regulation ("UK GDPR"). Following Brexit, the European Union General Data Protection Regulation 2016/679 ("EU GDPR") no longer applies directly in the UK, but it has been implemented into UK national law through the UK GDPR and the UK Data Protection Act 2018 ("DPA2018"). Accelerant is subject to the applicable requirements of the UK GDPR and DPA2018 where processing personal information in the context of the activities of Accelerant's UK establishment, and where processing personal information of individuals in the UK by an Accelerant establishment outside the UK where the processing is related to the provision of our services and products within the UK, or the monitoring of UK individuals' behavior in the UK.

The UK GDPR requirements, by virtue of the EU GDPR pre-Brexit and by virtue of the UK GDPR post-Brexit, apply in the UK since May 25, 2018. The UK GDPR imposes a number of obligations on controllers and processors and provides for rights for data subjects including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability and transparency requirements, which require controllers to demonstrate and record compliance
with the UK GDPR and to provide more detailed information to data subjects regarding processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhanced requirements for obtaining valid consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to consider data protection as any new products or services are developed and to limit the amount
of personal information processed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to comply with data protection rights of data subjects including a right of access to and
rectification of personal information, obtain restriction of processing or to object to processing of personal information and a right to ask for a copy of personal information to be provided to a third-party in a useable format and erasing personal
information in certain circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to implement technical and organizational security measures to safeguard personal information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to report certain personal data breaches to the relevant supervisory authority without undue delay
(and no later than 72 hours where feasible).

In addition, the EU GDPR prohibits the transfer of personal information from the EEA to a country outside the EEA (including, since Brexit, the UK) that the European Commission does not recognize as having "adequate" data protection in place, unless a data transfer mechanism in accordance with the EU GDPR (such as standard contractual clauses or "SCCs") has been put in place, or unless a derogation can be relied upon under the EU GDPR. Please see more detail below under "EU Privacy and Data Protection Laws."

In June 2021, the European Commission adopted an adequacy decision for the UK, which allows for the transfer of personal information from the EEA to the UK without the need for a data transfer mechanism to be put in place. The UK also recognizes the EU as an adequate jurisdiction, meaning that transfers of personal information from the UK to the EU do not require a data transfer mechanism. For transfers of personal information from the EU to the U.S., the European Commission has adopted the EU-U.S. Data Privacy Framework ("DPF") to legitimize transfers to entities in the U.S. that have certified to the DPF (please see more detail below under "EU Privacy and Data Protection laws").

The UK GDPR imposes similar restrictions to the EU GDPR on transfers of personal information from the UK to third countries outside the UK that the UK does not consider adequate. As indicated above, the UK recognizes the EU as "adequate." The UK Government has published its own form of the EU SCCs, known as the International Data Transfer Agreement and an International Data Transfer Addendum to the new EU SCCs. The UK Information Commissioner's Office ("ICO") has also published its own version of the TIA, although entities may choose to adopt either the EU or UK-style TIA. Further, in September 2023, the UK Secretary of State for Science, Innovation and Technology established a UK-U.S. data bridge (i.e., a UK equivalent of the

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Adequacy Decision) and adopted UK regulations to implement the UK-U.S. data bridge ("UK Adequacy Regulations"). Personal data can therefore be transferred from the UK under the UK-U.S. data bridge through the UK extension to the DPF to organizations self-certified under the UK extension to the DPF.

The EU and UK GDPR both provide for fines for serious breaches of up to the higher of 4% of annual worldwide turnover or €20 million (under the EU GDPR) or £17.5 million (under the UK GDPR).

In addition to the GDPR, data privacy related to electronic communications (including, the use of cookies and the sending of direct marketing) is regulated by the UK Privacy and Electronic Communications Regulations ("PECR"). The UK ICO is responsible for enforcing PECR and has the power to take various types of enforcement action, including criminal prosecution and non-criminal enforcement (such as monetary penalties of up to £500 thousand issued against the organization or its directors).

Compliance with the UK GDPR and PECR may cause Accelerant to incur substantial operational and compliance costs and may otherwise impact business practices. Further, there is a risk that the compliance measures will not be implemented correctly or that individuals within the business will not be fully compliant with the new measures. The UK ICO is competent to independently interpret, apply, and enforce the UK GDPR and PECR, and despite any compliance measures implemented, it is not excluded that Accelerant may be faced with significant administrative, monetary, and other sanctions, civil or criminal action, as well as reputational damage which may have a material adverse effect on the operations, financial condition, and prospects of the business.

<u>UK Cybersecurity, AI and Digital Data Laws</u> 

Cybersecurity requirements are laid down in various UK laws, the key ones being **(i)** the UK GDPR (which requires controllers and processors when processing personal information to implement appropriate technical and organizational measures to ensure a level of security appropriate to the data protection risk) and **(ii)** the UK Network and Information Systems Regulation 2018 ("NIS Regulations").

The UK GDPR does not provide for a specific set of cybersecurity requirements or measures to be implemented, but rather expects a controller/processor to take appropriate action in accordance with the then-current risk, the state of the art, the costs of implementation and the nature, scope, context and purposes of the processing. The UK GDPR however does explicitly require that controllers notify personal data breaches, within the meaning of the UK GDPR, without undue delay and in any event within 72 hours after becoming aware of it, to the UK ICO, unless the breach is unlikely to result in a risk to the rights and freedoms of individuals. In addition, controllers are required to notify the individuals concerned of any personal data breach without undue delay when the personal data breach is likely to result in a high risk to the rights and freedoms of individuals. Processors are required to notify the controller without undue delay after becoming aware of a personal data breach.

The NIS Regulations apply to "operators of essential services" ("OES") and "relevant digital service providers" ("RDSP") and it was announced in January 2022, that the NIS Regulations will be updated to also cover "managed service providers" ("MSP") and potentially other digital service providers as well. The NIS Regulations require that appropriate and proportionate technical and organizational measures are implemented to manage the risk of network and information systems, and impose requirements related to incident handling and notification in relation to incidents with significant disruptive effect. The UK ICO is the competent authority to enforce the NIS Regulations and may issue fines of up to £17 million and take other action following non-compliance.

In addition, the UK is developing a number of new digital data, cybersecurity, and AI laws akin to the ones being developed in the EU (see "EU Privacy and Data Protection Laws" below). For instance, the UK Financial Services and Markets Act ("FSMA") which contains a number of requirements similar in scope and impact to the EU DORA (as defined below) and the UK Online Safety Act ("OSA") which is similar in scope and impact to

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the EU DSA (as defined below). In relation to AI, the UK has adopted a "soft law" approach to AI regulation meaning it has not adopted formal legislation to regulate AI but has adopted soft law guidelines in the form of a White Paper (although the UK government has confirmed it will introduce AI legislation in 2025). Accelerant is assessing the scope of application, impact, and risk of these proposed UK laws on Accelerant's business and will continue to assess this moving forward.

<u>EEA Privacy and Data Protection Laws</u> 

In the EEA, the EU GDPR is the key legislation to govern personal information processing activities and has the same scope of application as set out above for the UK GDPR. The EU GDPR has been implemented into EEA Member State law, which supplements the EU GDPR. Accelerant is subject to the applicable requirements of the EU GDPR and applicable EEA Member State implementing legislation where processing personal information in the context of the activities of Accelerant's EEA establishments, and where processing personal information of individuals in the EEA by an Accelerant establishment outside the EEA where the processing is related to the provision of our services and products within the EEA, or the monitoring of EEA individuals' behavior in the EEA.

The EU GDPR has applied since May 2018, and imposes a number of obligations on controllers and processors and provides for rights for data subjects including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability and transparency requirements, which require controllers to demonstrate and record compliance
with the GDPR and to provide more detailed information to data subjects regarding processing of their personal data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhanced requirements for obtaining valid consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to consider data protection as any new products or services are developed and to limit the amount
of personal information processed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to comply with data protection rights of data subjects including a right of access to and
rectification of personal information, obtain restriction of processing or to object to processing of personal information and a right to ask for a copy of personal information to be provided to a third-party in a useable format and erasing personal
information in certain circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to implement technical and organizational security measures to safeguard personal information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to report certain personal data breaches to the relevant supervisory authority without undue delay
(and no later than 72 hours where feasible).

In addition, the EU GDPR prohibits the international transfer of personal information from the EEA to a country outside the EEA that the European Commission does not recognize as having "adequate" data protection in place, unless a data transfer mechanism in accordance with the EU GDPR (such as SCCs) has been put in place, or unless a derogation can be relied upon under the EU GDPR.

In July 2023, the European Commission adopted its Final Implementing Decision granting the U.S. adequacy (the "Adequacy Decision") for EU-U.S. transfers of personal data for entities self-certified to the EU-U.S. Data Privacy Framework ("DPF"). Entities relying on EU SCCs for transfers to the U.S. are also able to rely on the analysis in the Adequacy Decision as support for their TIA regarding the U.S. laws assessment.

The EU GDPR provides for fines for serious breaches of up to the higher of 4% of annual worldwide turnover or €20 million. The EU GDPR identifies a list of factors to consider when determining the level of fines to impose (including the nature, gravity, and duration of the infringement). Data subjects also have a right to compensation for financial or non-financial losses (e.g., distress). EEA Member State data protection authorities are responsible for enforcing the EU GDPR.

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In addition to the EU GDPR, data privacy related to electronic communications (including, the use of cookies and the sending of direct marketing) is regulated in the EU by the EU ePrivacy Directive, as implemented into EU Member State national legislation. National competent authorities are responsible for enforcing the ePrivacy Directive as implemented into national law. Enforcement action, including maximum fines and other penalties, are also provided for in EEA Member State law.

Compliance with the EU GDPR and ePrivacy Directive may cause Accelerant to incur substantial operational and compliance costs and may otherwise impact business practices. Further, there is a risk that the compliance measures will not be implemented correctly or that individuals within the business will not be fully compliant with the new measures. The EEA Member State authorities are competent to independently interpret, apply, and enforce the EU GDPR and ePrivacy Directive, and despite any compliance measures implemented, it is not excluded that Accelerant may be faced with significant administrative, monetary, and other sanctions, civil or criminal action, as well as reputational damage which may have a material adverse effect on the operations, financial condition, and prospects of the business.

<u>EEA Cybersecurity, AI and Digital Data Laws</u> 

Similar to the UK, EU cybersecurity requirements are at present mainly provided for in (i) the EU GDPR (which requires controllers and processors when processing personal information to implement appropriate technical and organizational measures to ensure a level of security appropriate to the data protection risk) and (ii) the EU Network and Information Systems Security 2 Directive ("NISD2") as implemented into EU Member State legislation.

The EU GDPR does not provide for a specific set of cybersecurity requirements or measures to be implemented, but rather expects a controller/processor to take appropriate action in accordance with the then-current risk, the state of the art, the costs of implementation and the nature, scope, context and purposes of the processing. The EU GDPR however does explicitly require that controllers notify personal data breaches, as described above.

On January 17, 2023, the revised EU Network and Information Systems Security 2 Directive ("NISD2") entered into force and takes full effect following implementation into national EU Member State law (for which the deadline was set at October 17, 2024). NISD2 imposes more stringent cybersecurity and incident reporting requirements on entities operating in so-called "essential" or "important" entities which include ICT managed service providers ("MSP") and cloud service providers.

NISD2 empowers the EU Member States to define all rules regarding penalties applicable to infringements, provided that they are effective, proportionate, and dissuasive. Rather than establishing a maximum, NISD2 states that any maximum fine which national implementing legislation provides for should at least be set at €10 million or 2% of total worldwide turnover, whichever is higher, where essential entities are concerned. Other sanctions may include (i) a temporary suspension to provide services in the EU (by suspending relevant authorizations/ certifications), (ii) an order to make public certain elements of the infringement and/or inform customers, and (iii) injunctions to immediately cease infringing conduct. Importantly, NISD2 also provides that senior members of staff can be held personally liable, and they can be faced personally with administrative fines or be temporarily suspended from exercising managerial functions at the legal representative or chief executive officer level.

In addition, in the EEA a number of new laws related to AI, digital data, and cybersecurity have recently entered into force, are expected to enter into force in the foreseeable future, or have been proposed and are being considered.

The EU Digital Operational Resilience Act ("DORA") took effect in January 2025. DORA applies to Accelerant Insurance Europe SA and Accelerant Agency Limited, both in relation to their EEA insurance activities as well as in relation to their service offering of information and communication technology ("ICT")

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services to other financial entities in the EEA such as insurance undertakings. DORA imposes regulatory obligations to reinforce the digital operational resilience of entities operating in the financial services industry, including the insurance industry, and to adequately manage and remediate the risk related to the engagement of ICT third-party service providers.

The obligations imposed by DORA on financial entities including insurance undertakings and certain insurance intermediaries include, among others, a governance and control framework to ensure effective and prudent management of ICT risk, measures to adequately protect ICT systems, to detect anomalous activities, and to ensure timely incident response and recovery, the establishment of an ICT incident management framework, and a framework to assess and address risk related to the engagement of ICT third-party service providers. DORA only imposes direct regulatory obligations on ICT third-party service providers that are considered "critical" within the meaning of DORA – which mainly relate to having in place measures to manage risk related to ICT security, such as to ensure data security and the physical security of premises, facilities and data centers, the implementation of ICT business continuity, incident response and recovery policies, and the prompt reporting of ICT incidents to financial entities. Non-critical ICT third-party service providers are only indirectly impacted by DORA, by virtue of the mandatory contractual terms that DORA requires financial entities to implement with ICT third-party service providers.

DORA does not provide for minimum or maximum monetary sanctions but empowers EEA Member State competent authorities to enforce DORA and determine the appropriate sanction – on the basis of the factors set out in DORA, including that the penalty must be, e.g., aligned with the gravity and duration of the infringement. Such a sanction could be of administrative or criminal nature, and DORA also provides that individual members of the management body can be held personally liable for any non-compliance with DORA.

On November 16, 2022, the EU Digital Services Act ("DSA") entered into force and became fully applicable on February 17, 2024. The DSA applies, among others, to providers of intermediary services including online platform services. The DSA mainly imposes new content moderation obligations to online platform service providers in relation to the content that is generated, stored, and hosted by the platform's users.

The DSA provides for administrative monetary fines of up to 6% of annual worldwide turnover and establishes a private right of action on the basis of infringements of the DSA. The DSA is enforced at the national EU Member State level.

The EU has developed a standalone law to govern the offering and use of AI systems in the EU (the "AI Act") which entered into force in August 2024 and will gradually enter into application (and become enforceable) as set out below. The AI Act imposes regulatory requirements onto AI system providers, importers, distributors, product manufacturers and users ("deployers") of AI systems, in accordance with the level of risk involved with the AI system ("unacceptable", "high", "limited", and "minimal" risk). Unacceptable-risk AI systems are banned from being offered and used in the EU, and high-risk AI systems are subject to a set of regulatory requirements under the AI Act including to establish quality and post-marketing monitoring and risk assessment systems, requirements related to the training of AI systems and training data, and requirements related to human oversight. Limited-risk AI systems are subject mainly to transparency requirements only and minimal-risk AI systems are not subject to obligations under the AI Act. In the AI Act's text, general-purpose AI models have also been made subject to a number of specific requirements – mostly akin to the requirements that apply to high-risk AI systems under the AI Act.

The AI Act will become enforceable in a gradual manner - depending on the regulatory requirement in question, and ranging from six to 36 months following entry into force of the AI Act (i.e., between February 2, 2025 to August 2, 2027). Non-compliance with the AI Act may be subject to regulatory fines of up to the higher of €35 million or 7% of annual worldwide turnover. In parallel, in December 2024, the EU Product Liability Directive, which regulates non-contractual and non-fault based liability for defective products, including digital products and AI, entered into force.

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<u>Canada Privacy and Data Protection Laws</u> 

In Canada, the *Personal Information Protection and Electronic Documents Act* ("PIPEDA") governs privacy matters at the federal level. It applies to federally regulated organizations and to commercial activities in all Canadian provinces in which there is no controlling provincial privacy law. Alberta, British Columbia, and Quebec have enacted their own private sector privacy laws, which apply to the processing activities undertaken by organizations operating within their respective jurisdictions.

PIPEDA and its provincial counterparts share similarities with the GDPR, particularly but not only, in terms of accountability obligations. However, unlike the GDPR, Canadian privacy laws are primarily consent-based, which means that processing of personal information can only proceed on the basis of consent (which can be express or implied), unless a statutory exception (from having to obtain consent) applies. PIPEDA and its provincial counterparts impose a number of obligations on accountable organizations (similar to the concept of "controller" under the GDPR) and service providers (similar to the concept of "processor" under the GDPR). These laws also confer certain rights on data subjects (individuals) similar to those provided for under the GDPR, such as the right to access and right to request correction of their personal information, though the scope of such rights is more limited than under the GDPR.

<u>Cayman Islands Data Protection Laws</u> 

We have certain duties under the Data Protection Act (As Revised) of the Cayman Islands, (the "DPA"), based on internationally accepted principles of data privacy. The DPA establishes a data protection framework for the processing, storage and protection of personal data that shares several similarities with the UK and EU GDPR due to the Cayman Islands' aim to align with global data protection standards and practices.

*Privacy Notice* 

This privacy notice puts our shareholders on notice that through your investment into us you will provide us with certain personal information which constitutes personal data within the meaning of the DPA, or personal data.

*Investor Data* 

We will collect, use, disclose, retain and secure personal data to the extent reasonably required only and within the parameters that could be reasonably expected during the normal course of business. We will only process, disclose, transfer or retain personal data to the extent legitimately required to conduct our activities of on an ongoing basis or to comply with legal and regulatory obligations to which we are subject. We will only transfer personal data in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction or damage to the personal data.

In our use of this personal data, we will be characterized as a "data controller" for the purposes of the DPA, while our affiliates and service providers who may receive this personal data from us in the conduct of our activities may either act as our "data processors" for the purposes of the DPA or may process personal information for their own lawful purposes in connection with services provided to us.

We may also obtain personal data from other public sources. Personal data includes, without limitation, the following information relating to a shareholder and/or any individuals connected with a shareholder as an investor: name, residential address, email address, contact details, corporate contact information, signature, nationality, place of birth, date of birth, tax identification, credit history, correspondence records, passport number, bank account details, source of funds details and details relating to the shareholder's investment activity.

*Who this Affects* 

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data

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on individuals connected to you for any reason in relation your investment in us, this will be relevant for those individuals and you should transit the content of this Privacy Notice to such individuals or otherwise advise them of its content.

*How We May Use a Shareholder's Personal Data* 

We may, as the data controller, collect, store and use personal data for lawful purposes, including, in particular: (i) where this is necessary for the performance of our rights and obligations under any agreements; (ii) where this is necessary for compliance with a legal and regulatory obligation to which we are or may be subject (such as compliance with anti-money laundering and Foreign Account Tax Compliance Act and Common Reporting Standard requirements); and/or (iii) where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental rights or freedoms.

Should we wish to use personal data for other specific purposes (including, if applicable, any purpose that requires your consent), we will contact you.

*Why We May Transfer Your Personal Data* 

In certain circumstances we may be legally obliged to share personal data and other information with respect to your shareholding with the relevant regulatory authorities such as the Cayman Islands Monetary Authority or the Tax Information Authority. They, in turn, may exchange this information with foreign authorities, including tax authorities.

We anticipate disclosing personal data to persons who provide services to us and their respective affiliates (which may include certain entities located outside the U.S., the Cayman Islands or the European Economic Area), who will process your personal data on our behalf.

*The Data Protection Measures We Take* 

Any transfer of personal data by us or our duly authorized affiliates and/or delegates outside of the Cayman Islands shall be in accordance with the requirements of the DPA.

We and our duly authorized affiliates and/or delegates shall apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of personal data, and against accidental loss or destruction of, or damage to, personal data.

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**PRINCIPAL AND SELLING SHAREHOLDERS** 

The following table sets forth information regarding the beneficial ownership of our Class A common shares and our Class B common shares as of , 2025, after giving effect to the re-designation of shares following the Accelerant Holdings LP Distribution by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person or entity who is known by us to beneficially own more than 5% of our outstanding Class A common
shares or our Class B common shares (including any securities convertible or exchangeable within 60 days into Class A common shares or our Class B common shares, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Selling Shareholder in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and named executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

In accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect to securities and includes the shares issuable pursuant to share options that are exercisable within 60 days of , 2025. Shares issuable pursuant to share options are deemed outstanding for computing the percentage of the person holding such options but are not outstanding for computing the percentage of any other person. Holders of our Class B common shares are entitled to convert their Class B common shares on a one-for-one basis for Class A common shares at any time at the option of the holder. Accordingly, for the purposes of this table, each holder of Class B common shares is deemed to be the beneficial owner of an equal number of Class A common shares (in addition to any other Class A common shares beneficially owned by such holder), which is reflected in the tables below under the columns "Number of Shares" and "Percent" for the Class A common shares. The number of Class A common shares outstanding after this offering includes Class A common shares being offered for sale by us in this offering. The percentage of beneficial ownership prior to this offering is based on Class A common shares and Class B common shares outstanding as of , 2025. The percentage of beneficial ownership after this offering assumes both no exercise and full exercise of the underwriters' option to purchase up to an additional Class A common shares from us. Unless otherwise indicated, the address for each listed shareholder is: c/o Accelerant Holdings, 1 Tollgate Business Park, Tollgate West, Colchester C03 8AB, United Kingdom. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all of their Class A common shares and Class B common shares.

The following table does not reflect any Class A common shares that may be purchased pursuant to our directed share program described under "Underwriters – Directed Share Program."

The voting rights of the principal holders of our Class A common shares do not differ from the voting rights of the other holders of shares of our Class A common shares.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** |
|  | **Class A**<br>**Common Shares Beneficially<br>Owned Before this Offering** | **Class A**<br>**Common Shares Beneficially<br>Owned Before this Offering** | | **Assuming<br>No Exercise of the Option to<br>Purchase Additional Class A<br>Common Shares** | **Assuming<br>No Exercise of the Option to<br>Purchase Additional Class A<br>Common Shares** | **Assuming**<br>**Full Exercise of the Option to<br>Purchase Additional Class A**<br>**Common Shares** | **Assuming**<br>**Full Exercise of the Option to<br>Purchase Additional Class A**<br>**Common Shares** |
| **Name of Beneficial Owner** | **Number of<br>Class A<br>Common**<br>**Shares** | **Percentage** |<br>**Number<br>of<br>Class A<br>Common<br>Shares<br>Being<br>Offered** | **Number of<br>Class A**<br>**Common<br>Shares** | **Percentage** | **Number of**<br>**Class A**<br>**Common**<br>**Shares** | **Percentage** |
|  **5% Shareholders:** |  |  |  |  |  |  |  |
|  ACP Insurance Management, LLC<sup>(3)</sup> |  |  |  |  |  |  |  |
|  ACP Accelerant Holdings LP<sup>(3)</sup> |  |  |  |  |  |  |  |
|  Eldridge Accelerant Funding, LLC<sup>(4)</sup> |  |  |  |  |  |  |  |
|  **Directors and Named Executive Officers:** |  |  |  |  |  |  |  |
|  Jeff Radke<sup>(5)</sup> |  |  |  |  |  |  |  |
|  Christopher Lee-Smith<sup>(6)</sup> |  |  |  |  |  |  |  |
|  Frank O'Neill<sup>(7)</sup> |  |  |  |  |  |  |  |
|  Jay Green |  |  |  |  |  |  |  |
|  Nancy Hasley |  |  |  |  |  |  |  |
|  Matthew Sternberg |  |  |  |  |  |  |  |
|  Todd Boehly<sup>(8)</sup> |  |  |  |  |  |  |  |
|  Samuel Gaynor |  |  |  |  |  |  |  |
|  Wendy Harrington |  |  |  |  |  |  |  |
|  Paul Little |  |  |  |  |  |  |  |
|  Karen Meriwether |  |  |  |  |  |  |  |
|  Keoni Schwartz<sup>(3)</sup> |  |  |  |  |  |  |  |
|  Michael Searles |  |  |  |  |  |  |  |
|  **All executive officers and directors as a group<br>(persons)** |  |  |  |  |  |  |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** |
|  | **Class B Common Shares**<br>**Beneficially Owned before this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially Owned before this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially**<br>**Owned After this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially**<br>**Owned After this**<br>**Offering** |
|  | **Number of Class B<br>Common Shares** | **Percentage** | **Number of Class B<br>Common Shares** | **Percentage** |
|  **<u>Name of Beneficial Owner</u>** |  |  |  |  |
|  **5% Shareholders:** |  |  |  |  |
|  ACP Insurance Management, LLC<sup>(3)</sup> |  |  |  |  |
|  ACP Accelerant Holdings LP<sup>(3)</sup> |  |  |  |  |
|  Eldridge Accelerant Funding, LLC<sup>(4)</sup> |  |  |  |  |

---

\* Represents beneficial ownership of less than 1%. 

(1) Gives effect to the re-designation of shares following the Accelerant Holdings LP Distribution to take place
immediately prior to the consummation of this offering.

(2) Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B
common shares shall have the right to convert each of its shares of Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a
one-for-one basis, upon transfer (other than a permitted transfer) of Class B common shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the Class B common shares owned by such holders, in aggregate,
immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share. Other than Altamont Capital and any of its affiliates, no holder of common
shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

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(3) Includes     shares held directly by ACP Accelerant Holdings, LP and shares held directly
by ACP Accelerant Co-Invest, LLC. Each of (i) ACP Insurance Management, LLC, as the general partner of ACP Accelerant Holdings, LP and the managing member of ACP Accelerant Co-Invest, LLC, and (ii) Keoni Schwartz, as the sole owner and managing
member of ACP Insurance Management, LLC, may be deemed to have voting and dispositive power over these shares, but disclaim beneficial ownership over these shares except to the extent of their respective pecuniary interest therein, if any. The
business address of each of ACP Accelerant Holdings, LP, ACP Insurance Management, LLC, ACP Accelerant Co-Invest, LLC, and Keoni Schwartz is 400 Hamilton Avenue, Suite 230, Palo Alto, CA 94301.

(4) Mr. Todd Boehly is the indirect controlling member of Eldridge Accelerant Funding, LLC, and, in such
capacity, may be deemed to have voting and dispositive power over the securities held by Eldridge Accelerant Funding, LLC. The address for Eldridge Accelerant Funding, LLC is 65 East 55th Street, Floor 29, New York, NY 10022.

(5) (6) Mr. Lee-Smith has pledged all Class A common shares owned by him as security to a financial institution.

(7) Mr. O'Neill has pledged all Class A common shares owned by him as security to a financial institution.

(8) Mr. Todd Boehly is the indirect controlling member of Eldridge Accelerant Funding, LLC, and, in such
capacity, may be deemed to have voting and dispositive power over the securities held by Eldridge Accelerant Funding, LLC. The address for Mr. Boehly is 701 Brickell Avenue, Suite 860, Miami, FL 33131.

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**CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS** 

The following is a description of transactions since January 1, 2022 to which we were a party in which the amount involved exceeded or will exceed $120 thousand, and in which any of our executive officers, directors, or holders of more than 5% of any class of our voting securities, or an immediate family member thereof, had or will have a direct or indirect material interest.

**Related-Party Transaction Policy** 

We have established a written related-party transaction policy that provides procedures for the review of transactions in excess of $120 thousand in any year between us and any covered person having a direct or indirect material interest with certain exceptions. Covered persons include any executive officers, directors, or holders of more than 5% of any class of our voting securities, or an immediate family member thereof. Any such related-party transactions shall require advance approval by a majority of our independent directors or by our audit committee.

**Mission Underwriters** 

Mission Underwriters is our MGA incubator, with operating entities in the U.S., the UK and EU, and provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. Mission US and Mission Europe were funded principally by loans we advanced in the form of subordinated debt and other working capital arrangements. In 2021, we supported the launch of Mission Underwriters in the U.S. by providing $7.9 million in start-up financing and certain back-office support. In 2022, we supported the launch of Mission Underwriters in the EU by providing $7.8 million in start-up financing and certain back-office support.

On May 1, 2024, Option Holdings exercised its call option to acquire all of the equity interests of Mission US for an exercise price of $119 thousand. Subsequently, on May 1, 2024, Accelerant Holdings acquired such equity interests, by merger, and contributed them to Mission Worldwide Holdings. As consideration, Accelerant Holdings issued 6,938 common shares to Accelerant Holdings LP which was equal to the value of Mission US. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission Underwriters within the Company's results of operations, holders of the Company's Class A and B convertible preference shares received an additional 875 Class A convertible preference shares and 525 Class B convertible preference shares in aggregate, respectively, in each case without further consideration being paid. The total value of the common shares issued to Option Holdings was $7.0 million. Concurrently with Accelerant Holdings' acquisition of Mission US, Accelerant Holdings exercised its call option to acquire all of the equity of Mission Europe for €1.17 thousand, which together with Mission US became wholly-owned subsidiaries of Mission Worldwide Holdings, a subsidiary of Accelerant Holdings.

**Accelerant Holdings LP Fund Transfers** 

In September 2021 and December 2021, respectively, Accelerant Holdings LP subscribed for interests in certain investment funds, as a consequence of which Accelerant Holdings LP held a limited partnership interest in each of those funds (the "Interests"). Effective June 2022, Accelerant Holdings LP transferred and assigned to Accelerant Holdings all of Accelerant Holdings LP's rights and obligations with respect to the Interests as set out in those partnership and related ancillary agreements.

**Reserv** 

The Company is an investor in certain funds invested in Reserv, a Delaware company operating as a TPA ("Reserv"). Jeff Radke, our CEO, serves as a director of Reserv. In addition, our Head of Claims invested in Reserv, purchasing a less than 0.1% interest in Reserv. Commencing in the fourth quarter 2022 Reserv was engaged by an Accelerant Member to provide TPA services to it.

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Pursuant to a warrant dated June 23, 2022, we are entitled to purchase shares of Reserv at a purchase price of $0.66667 per share, equal to up to 10% of Reserv's fully diluted capitalization (including the conversion of all of Reserv's outstanding convertible securities, options and shares reserved under any stock option plan). The warrant is exercisable upon the earliest of (i) an initial public offering by Reserv, (ii) the acquisition of Reserv or (iii) June 23, 2027. The number of shares issuable is dependent on Reserv's achievement of certain cumulative revenue target milestones in a series of three tranches.

**Hadron** 

Hadron Specialty Insurance Company ("Hadron US") is a U.S. based and Arkansas-domiciled E&S carrier in formation. Hadron UK Holdings Limited ("Hadron UK" and, together with Hadron US, "Hadron") is a private company limited by shares and formed under the laws of England and Wales. Sponsored by Altamont Capital, Hadron is a fronting organization focused on connecting specialty underwriting and distribution with reinsurance capacity. We are Hadron's first strategic partner. In connection with the establishment of Hadron in 2023, we advanced funds to Hadron of $577 thousand, which amount settled, by way of reimbursement, in the fourth quarter of 2023. Keoni Schwartz and Sam Gaynor, both members of our Board of Directors, serve on the board of directors of Hadron Holdings GP. For the three months ended March 31, 2025, Hadron insured $122.9 million of Risk Exchange premium.

**Augment** 

Augment Risk Services, LLC ("Augment"), a Delaware limited liability company, is a Florida reinsurance intermediary broker sponsored by Altamont Capital, with a focus on designing and placing tailored risk capital and reinsurance solutions. The Company engages Augment to broker certain of its reinsurance coverage with third-party reinsurers on the Risk Exchange. Augment has received $4.1 million, $14.7 million and $0.8 million in brokerage commission from those third-party reinsurers for coverage placed during the three months ended March 31, 2025, and the years ended December 31, 2024 and 2023, respectively. Accelerant expects to continue to utilize Augment to broker subsequent third-party reinsurance placements in the future.

**Tribute Specialty** 

In February 2023, Mission US agreed to invest up to $1.5 million as part of seed capital funding in Tribute Specialty Holdings, LLC, a Delaware limited liability company ("Tribute"). Under the terms of the transaction, Mission US owns 100% of the Class A Units of Tribute, which represents approximately 36% of the voting power; Protecdiv Tribute Holdings, LLC ("Protecdiv") owns 100% of the Class B Units of Tribute, which represents approximately 45% of the voting power; and Tribute management will own 100% of the Class M Units of Tribute, which represents approximately 17% of the voting power. In early 2025, the Tribute board determined the likelihood of the venture achieving meaningful revenue was remote, and thus determined to wind down operations in the foreseeable future. On or about April 11, 2025, Mission US sold its interests in Tribute to Protecdiv for nominal consideration.

One of our directors, Paul Little, is a director and officer of Protecdiv's ultimate parent company, Protecdiv, Inc., in which he is employed as Protecdiv, Inc.'s Chief Operating Officer and owns 5% of the equity of Protecdiv, Inc. Mr. Little serves as Secretary of Tribute and is a manager on the Board of Managers of Tribute.

**Indica Limited** 

During the years ended December 31, 2022 and 2021, we made payments of $0.4 million and $2.3 million, respectively, to Indica Consulting Ltd. ("Indica Limited"), a services company wholly-owned and controlled by Jeff Radke, the CEO, for corporate services received. These corporate services involved overseeing all aspects of our business, including developing and executing our business strategy, managing our business operations and affairs, and implementing the directives of our Board of Directors. We did not incur any expenses or make any payments to Indica Limited in 2023, 2024 or during the three months ended March 31, 2025.

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**Accelerant Holdings LP** 

During the year ended December 31, 2022, we provided $3.3 million of short-term financing to Accelerant Holdings LP (there was no such short-term financing provided for the years ended December 31, 2024 and 2023). As of March 31, 2025, December 31, 2024 and 2023, the outstanding balance of the short-term financing to Accelerant Holdings LP was $7.3 million, $7.6 million and $7.1 million, respectively. The balance held is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

We had accounts payable with Accelerant Holdings LP of $0.7 million and $0.9 million, primarily relating to legal costs, for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively (there was no accounts payable as of December 31, 2023).

**Altamont Capital** 

During the three months ended March 31, 2025 and the years ended December 31, 2024, 2023 and 2022, the Company incurred expenses with Altamont Capital for legal, advisory and out of pocket expenses of $2.1 million, $0.2 million, $2.8 million and $3.7 million, respectively. The Company incurred such expenses with Altamont Capital for providing financial, managerial, and operational advice to the Company in connection with our day-to-day operations, including, but not limited to, the development and implementation of strategies for improving the operating, marketing and financial performance of the Company and our subsidiaries. Additionally, Altamont Capital advised on the negotiation and consummation of agreements necessary to provide the Company with financing which supported acquisition transactions involving the Company and our subsidiaries. Upon the completion of this offering, we expect that the Management Services Agreement, between Accelerant Holdings LP and Altamont Capital Management, LLC, dated February 19, 2019 (the "MSA"), will terminate by mutual agreement of the parties. Upon the completion of this offering, pursuant to the MSA, we expect to pay Altamont Capital a fee of $.

**Accelerant Risk Exchange, LLC** 

As of February 2025, Accelerant Risk Exchange LLC ("Accelerant Risk Exchange") employs Jeff Radke, our Co-Founder and Chief Executive Officer, and Dave Gronski, our Head of Actuarial. The Accelerant Risk Exchange is comprised of Common Units held by Accelerant Holdings (Cayman) Ltd., Series A Preferred Units and Series B Preferred Units (together, the "Preferred Units"). Their employment by the Accelerant Risk Exchange is paid through (i) cash base salary and (ii) quarterly dividends on the Preferred Units, which through the first two quarters of 2025 equaled $360,065 for Mr. Radke and $175,000 for Mr. Gronski.

The Preferred Units rank senior to the Common Units, have no voting rights or other rights to participate in management, and are entitled to receive distributions from the current profits of the Company, if any, as determined by the Accelerant Risk Exchange Board of Managers. The Preferred Units are also redeemable at any time. The members of the Board of Managers of the Accelerant Risk Exchange are Jeff Radke, Dave Gronski and Matt Sternberg, our Chief Operating Officer, Risk Exchange.

**Preference Share Issuances** 

<u>December 2024 Class C Convertible Preference Share Issuance</u> 

In December 2024, the Company issued an aggregate amount of 66,411 shares of Class C convertible preference shares for $125.2 million of gross proceeds (the "December 2024 Class C Convertible Preference Share Issuance"). The following table summarizes purchases of our Class C convertible preference shares in the December 2024 Class C Preference Share Issuance by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class C convertible preference shares in the December 2024 Class C Convertible Preference Share Issuance. The Class C convertible preference shares are convertible to common shares subject

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to the occurrence of an initial public offering or other defined liquidation event. The Class C convertible preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C convertible preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 58,331 detachable warrants (42,902 warrants with an exercise price approximating 75% of the independently determined fair value of the Company as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 15,429 warrants with an exercise price approximating 150% of the Issuance Date Valuation). The Company negotiated the securities' multi-year redemption, conversion and warrant features to address capital requirements associated with the Company's high growth trends and the uncertainty of the timing and success of any initial public offering or liquidation event.

A determination of whether to redeem or convert the Class C convertible preference shares will be in the discretion of the individual investors and may depend on the highest economic value realizable to them at the date of the initial public offering or liquidation event. If holders elect to convert, they will receive a number of our Class A common shares and Class B common shares, as applicable, equivalent in value to the number of Class C Convertible Preference Shares subject to conversion. If holders elect to redeem, they will receive 1.4 times and 1.5 times, respectively, their initial investment within the first one and two years following the December 2024 Class C Convertible Preference Share Issuance. After the second year, the value of the redemption will change in accordance with the accreted liquidation preference rates as defined below.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed 17.0%). The holders of the Class C convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C convertible preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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| | | |
|:---|:---|:---|
| **Name** | **Shares of Class C Convertible Preference Shares** | **Total Purchase Price** |
|  Barings and affiliated entities | 37129.70725 | $70000000 |
|  Eldridge Accelerant Funding, LLC | 11934.54876 | $22500000 |
|  ACP Accelerant Co-Invest, LLC | 10873.69998 | $20500000 |
|  MW XO Digital Finance Fund HoldCo, LTD | 2652.12195 | $5000000 |
|  Deer Park and affiliated entities | 1591.27317 | $3000000 |
|  Chris Lee-Smith | 742.59414 | $1400000 |
|  Nancy Hasley | 265.21219 | $500000 |
|  Frank O'Neill | 265.21219 | $500000 |

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<u>December 2022 Class B Convertible Preference Share Issuance</u> 

In December 2022, the Company issued an aggregate amount of 148,803 shares of Class B convertible preference shares for $150.2 million of gross proceeds (the "December 2022 Class B Convertible Preference Share Issuance"). The following table summarizes purchases of our Class B convertible preference shares in the December 2022 Class B Preference Share Issuance by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class B convertible preference shares in the December 2022 Class B Convertible Preference Share Issuance. The Class B convertible preference shares will convert into our Class A common

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shares and Class B common shares. The Class B convertible preference shares are subject to an accumulating annual accreted liquidation preference of 16%. The holders of the Class B convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the convertible preference shares have not appreciated to the sum of the initial investment and the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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| | | |
|:---|:---|:---|
| **Name**  | **Shares of Class B Convertible Preference Shares** | **Total Purchase Price** |
|  Barings and affiliated entities | 49530.35321 | $50000000 |
|  ACP Accelerant Co-Invest, LLC | 37147.76490 | $37500000 |
|  Deer Park and affiliated entities | 29718.2119 | $30000000 |
|  ACP Accelerant Investment Holding Company II, Ltd. | 22500.57376 | $22713924 |
|  MW XO Digital Finance Fund Holdco, LTD | 9906.07064 | $10000000 |
|  Nancy Hasley | 12.76175 | $12883 |

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<u>January 2022 Class A Convertible Preference Share Issuances</u> 

In January 2022, occurring in two closings, the Company issued an aggregate amount of 66,866 Class A convertible preference shares for $66.9 million of gross proceeds (the "January 2022 Class A Convertible Preference Share Issuances"). The following table summarizes purchases of our Class A convertible preference share in the January 2022 Class A Convertible Preference Share Issuances by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class A convertible preference shares in the January 2022 Class A Convertible Preference Share Issuances. 2,500 of these Class A convertible preference shares consisted of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by way of a $0.5 million loan funded by the Company. The Class A convertible preference shares will convert into our Class A common shares and Class B common shares. The Class A convertible preference shares are subject to an accumulating annual accreted liquidation preference of 8%. The holders of the Class A convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the convertible preference shares have not appreciated to the sum of the initial investment and the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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| | | |
|:---|:---|:---|
| **Name**  | **Shares of Class A Convertible Preference Shares** | **Total Purchase Price** |
|  ACP Accelerant Co-Invest, LLC | 27500.0000 | $27500000 |
|  Barings and affiliated entities | 25000.0000 | $25000000 |
|  Nancy Hasley | 190.0000 | $190000 |
|  Frank O'Neill | 94.9886 | $94988 |
|  Wendy Harrington | 75.0000 | $75000 |

---

**Flywheel Re** 

Flywheel Re, an unconsolidated sidecar vehicle, was formed in 2022. In August 2022, entities affiliated with Barings LLC, along with other third-party investors, purchased an initial amount of preference shares from Flywheel Re and committed to purchase additional amounts of preference shares subject to certain conditions. The entities affiliated with Barings LLC purchased approximately 12,810,990 preference shares for a purchase price of $12.8 million in August 2022. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025.

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In June 2025, upsized capital was raised from institutional investors, including entities affiliated with Barings LLC, to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. In connection with the June 2025 capital raise, the entities affiliated with Barings LLC committed to contribute up to $105 million in capital to support Flywheel Re over a three-year period.

The Company supported the formation of Flywheel Re and the subsequent capital raise through activities limited to engaging lead counsel and investment bankers and marketing the vehicle to prospective investors. In connection with each capital raise, the Company entered into quota share agreements, under which it cedes certain insured risks to Flywheel Re. The terms of the quota share agreements are consistent with our third-party coverage.

**2WJ, LLC** 

In connection with our acquisition of a majority position of one of our Members, 2WJ, LLC ("ARU") in May 2021, one of our subsidiaries entered into an amended and restated limited liability company agreement (the "Agreement") with ARU and the minority unitholder, There's A Way, LLC ("TAW"), under which we granted TAW an option, exercisable upon the later to occur of (i) May 2025 (four years following the date of the Agreement) and (ii) a change of control of Accelerant Holdings LP, to sell the remaining interests of ARU to us. Upon the closing of this offering, the Company expects TAW to exercise its option. The value of the option is equal to ARU's trailing twelve month EBITDA (as defined by GAAP) multiplied by 15. Further, as consideration for our purchase of the remaining interests of ARU, we expect to issue approximately $35 million of Class A common shares in satisfaction of this obligation that will occur approximately four to six weeks after the consummation of this offering.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the shares of Class A common shares to be issued by us and offered by this prospectus for sale, at the initial public offering price to all of our employees, including certain former and expected future employees, who are not our partners.

**Registration Rights Agreement** 

In connection with this offering, we intend to enter into a registration rights agreement with holders of our common shares, including Altamont Capital. The registration rights agreement will provide the holders with demand registration rights, including shelf registration rights, in respect of any of our Class A common shares beneficially owned by them, subject to certain conditions. In addition, in the event that we register additional Class A common shares for sale to the public following the completion of this offering, we will be required to give notice of such registration to each such member of the party to the agreement of our intention to effect such a registration, and, subject to certain limitations, include Class A common shares beneficially owned by them in such registration. We will be required to bear the registration expenses, other than underwriting discounts and commissions and transfer taxes, associated with any registration of shares pursuant to the agreement. The agreement will include customary indemnification provisions in favor of each shareholder and any person who is or might be deemed a control person, (within the meaning of the Securities Act and the Exchange Act) and related parties against certain losses and liabilities (including reasonable costs of investigation and legal expenses) arising out of or based upon any filing or other disclosure made by us under the securities laws relating to any such registration.

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**MANAGEMENT** 

**Executive Officers and Directors** 

The following table sets forth information about who we expect to serve as our executive officers and our directors, including their ages as of the date of this prospectus. With respect to our directors, each biography includes information regarding the experience, qualifications, attributes, or skills that caused our Board of Directors to determine that such person should serve as a director of our company.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  **Executive Officers** |  |  |
|  Jeff Radke<sup>(2)</sup> | 57 | Co-Founder, Chief Executive Officer and Director |
|  Christopher Lee-Smith | 57 | Co-Founder, Head of Distribution and Director |
|  Jay Green | 47 | Chief Financial Officer |
|  Nancy Hasley<sup>(3)</sup> | 71 | Group General Counsel and Director |
|  Frank O'Neill | 52 | Co-Founder, Chief Underwriting Officer |
|  Matthew Sternberg | 39 | Chief Operating Officer, Risk Exchange |
|  **Directors**  |  |  |
|  Todd Boehly\*<sup>(1)(2)(3)</sup> | 51 | Director |
|  Samuel Gaynor<sup>(2)(3)</sup> | 39 | Director |
|  Wendy Harrington\*<sup>(1)</sup> | 59 | Director |
|  Paul Little\*<sup>(3)</sup> | 65 | Director |
|  Karen Meriwether\*<sup>(1)</sup> | 72 | Director |
|  Keoni Schwartz<sup>(2)</sup> | 45 | Director |
|  Michael Searles\*<sup>(1)(2)(3)</sup> | 39 | Director |

---

(1) Member of the audit committee.

(2) Member of the compensation committee.

(3) Member of our nominating and corporate governance committee.

\* Independent director for purposes of NYSE corporate governance listing requirements.

The following is a brief biography of each of our expected executive officers and our directors. We believe our Board of Directors should be comprised of a diverse group of individuals with sophistication and experience in many substantive areas that impact our business. We believe experience, qualifications and skills in the following areas are most important: accounting, finance, and capital structure; strategic planning and leadership of complex organizations; expertise and experience in the insurance and related industries; legal/regulatory and government affairs; personnel management; and board practices of other major corporations. We believe that all of our current Board members possess the professional and personal qualifications necessary for service on our Board of Directors, and have highlighted particularly noteworthy attributes for each Board member in the individual biographies below.

***Jeff Radke*** has served as a director and our Co-Founder since October 2021, and will be formally appointed as our Chief Executive Officer prior to the consummation of this offering, a role in which he has served since October 2021. Additionally, Mr. Radke has served as the President of Accelerant US Holdings, LLC since July 2020, and as the President of Accelerant US Services Company Holdings, LLC, Accelerant US Services Company, LLC, and Accelerant US Distribution Holdings, LLC since September 2020 and has been an employee of Mission Underwriting Services, LLC since April 2021. From July 2019 to December 2021, he was involved with Accelerant Services (Malta) Limited and from May 2022 to November 2022, worked at Accelerant Re Cayman. Prior to founding our Company, Mr. Radke served as the Head of Strategic Initiatives at Indica Limited and Argo Group from August 2016 to March 2018. Additionally, he has served as a director of Indica Limited since January 2006. We believe Mr. Radke is qualified to serve on our Board of Directors due to his experience in the insurance industry.

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***Christopher Lee-Smith*** has served as a director and our Co-Founder since October 2021, and will be appointed as our Global Head of Distribution prior to the consummation of this offering. Mr. Lee-Smith held the role of Group Head of Distribution at our parent entity from 2018 to 2021. Before Accelerant, Mr. Lee-Smith served as the Global Head of Alternative Distribution of Argo Group from 2017 to July 2018. We believe Mr. Lee-Smith is qualified to serve on our Board of Directors due to his experience in the insurance industry.

***Nancy Hasley*** serves as our Group General Counsel, a role she assumed for the Accelerant group of companies in October 2019, and as a member of the Board of Directors since October 2021. Prior to joining our Company, Ms. Hasley practiced law in London at Keystone Law (2018/2019) and prior thereto was a Partner at Sidley Austin LLP from 2002 to 2018, first in the New York office and subsequently in the London office of the firm where she advised on transactions, including mergers and acquisitions and capital raising, in the insurance and reinsurance industries. We believe Ms. Hasley is qualified to serve on our Board of Directors due to her extensive legal experience in the insurance industry.

***Jay Green*** serves as our Chief Financial Officer, a role he assumed for the Accelerant group of companies in November 2022. Prior to joining our Company, Mr. Green worked as a Managing Director at Goldman Sachs & Co. LLC in structured finance investment banking from June 2020 to October 2022, and from April 2015 to September 2018. Additionally, Mr. Green worked as Managing Director at Guy Carpenter & Company in insurance-linked securities from October 2018 to May 2020.

***Frank O'Neill*** has served as a director of AIUK and our Co-Founder since September 2021 and will be appointed as our Chief Underwriting Officer prior to the consummation of this offering, a role in which he has served since September 2018. Prior to joining our Company, Mr. O'Neill served as the Chief Executive Officer of Swiss RE UK & Ireland from February 2016 to August 2018. We believe Mr. O'Neill is qualified to serve on our Board of Directors due to his experience in the reinsurance industry.

***Matthew Sternberg*** will be appointed as our Chief Operating Officer, Risk Exchange, prior to the consummation of this offering, a role in which he has served since April 2023. Prior to joining our Company, Mr. Sternberg worked at Boston Consulting Group from September 2012 to April 2023, where he was a Managing Director and Partner and co-led the firm's North American insurance practice.

***Todd Boehly*** has served as a director since January 2022. Mr. Boehly currently serves as Chairman and Chief Executive Officer of Eldridge Industries, LLC, a company he co-founded in December 2015. Additionally. Mr. Boehly has served as a director of Vivid Seats, Inc., Kennedy-Wilson Holdings, Inc., and Horizon Acquisition Corp. II since May 2021, January 2020, and August 2020, respectively, and served on the board of Horizon Acquisition Corp. III from April 2021 to September 2022. We believe Mr. Boehly is qualified to serve on our Board of Directors due to his experience operating and investing in a variety of market sectors, including the insurance industry, and his status as an audit committee financial expert.

***Samuel Gaynor*** has served as a director since October 2021 and as a member of our Compensation Committee since May 2023. Mr. Gaynor currently serves as Managing Director of Altamont Capital, where he has worked since January 2011. In addition, Mr. Gaynor currently serves as a director for a number of companies, including the following companies in the insurance sector: ACP Insurance Finance, Inc., Fleming Holdings, LLC and Hadron Holdings GP. We believe Mr. Gaynor is qualified to serve on our Board of Directors due to his experience on the boards of reinsurance and capital solutions providers and his experience in the private equity industry.

***Wendy Harrington*** has served as a director since October 2021. Ms. Harrington was most recently the Chief Marketing Officer of CoreViva, Inc., a position she held from March 2025 to April 2025. Prior to joining CoreViva, Ms. Harrington was an Executive Vice President at the Teachers Insurance and Annuity Association of America from June 2019 through December 2023 where she held the positions of Chief Information Officer, Chief Data and AI Officer, and Head of Nuveen Labs and served as a director for TIAA Kaspick, LLC, and

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TIAA Trust, N.A. Previously, Ms. Harrington served in a variety of leadership roles including Chief Marketing Officer for Franklin Templeton Investments, Chief Operating Officer for Fiduciary Trust, and Associate Principal for McKinsey & Company as well as a director for several private companies. We believe Ms. Harrington is qualified to serve on our Board of Directors due to her experience developing data, analytics and AI practices within the insurance industry and general marketing experience.

***Paul Little*** has served as a director since August 2022. Mr. Little is currently the Chief Operating Officer and serves as a director at Protecdiv, Inc., positions he has held since January 2019. Prior to joining Protecdiv, Inc., Mr. Little was the Founder and President of Maxfield Holdings Inc., a consulting firm specializing in risk management, from January 2016 through December 2018. We believe Mr. Little is qualified to serve on our Board of Directors due to his experience in the insurance and reinsurance brokerage industries, advising on risk management practices and his status as an audit committee financial expert.

***Keoni Schwartz*** has served as a director since October 2021 and as a member of our Compensation Committee since May 2023. Mr. Schwartz currently serves as Co-Founder and Managing Director of Altamont Capital, where he has worked since helping to launch the firm in May 2010. In addition, Mr. Schwartz currently serves as a director for a number of companies, including the following companies in the insurance sector: ACP Insurance Finance, Inc., Kuvare, Fleming Holdings, LLC and Hadron Holdings GP. We believe Mr. Schwartz is qualified to serve on our Board of Directors due to his experience on the boards of other insurance portfolio companies and his experience in the private equity industry.

***Michael Searles*** has served as a director and as a member of our Audit and Compensation Committees since June 2023. Mr. Searles currently serves as a Managing Director of Barings LLC, a role he has held since April 2018. Prior to joining Barings, Mr. Searles served as Principal of Octagon Credit Investors LLC, an asset management firm. We believe Mr. Searles is qualified to serve on our Board of Directors due to his experience in the asset management industry and status as an audit committee financial expert.

***Karen Meriwether*** has served as a director since January 2025 and was previously the non-director Chair of our Audit Committee since May 2023. Previously, Ms. Meriwether served as Executive Vice President and Chief Financial Officer at Southwest Business Corporation ("SWBC"), a role she had from March 2017 through September 2022. During this time, Ms. Meriwether also served on the audit committees of SWBC and SWBC Life Insurance Company. We believe Ms. Meriwether is qualified to serve on our Board of Directors due to her experience in the financial services and insurance industries and her status as an audit committee financial expert.

**Classified Board of Directors** 

Our amended and restated memorandum and articles of association will provide for our Board of Directors to be divided into three classes with members of each class serving staggered three-year terms.

Only one class of directors will be elected at each annual general meeting of shareholders, with directors in other classes continuing for the remainder of their respective three-year terms. Our directors will be divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class I directors are Jeff Radke, Keoni Schwartz and Karen Meriwether, and their terms will expire at
our annual general meeting in 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class II directors are Wendy Harrington, Todd Boehly and Nancy Hasley, and their terms will expire at
our annual general meeting in 2027; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class III directors are Samuel Gaynor, Paul Little, Christopher Lee-Smith and Michael Searles, and
their terms will expire at our annual general meeting in 2028

Our directors hold office until their successors have been elected and qualified or until the earlier of their death, resignation or removal. Any additional directorships resulting from an increase in the number of directors

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will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors.

The classification of our Board of Directors may have the effect of delaying or preventing changes of control of our company.

**Controlled Company Status** 

Upon the completion of this offering, Altamont Capital will own of our Class B common shares, representing % of the combined voting power of our common shares outstanding after this offering (or approximately % of the combined voting power of our common shares if the underwriters' option to purchase additional shares is exercised in full). Accordingly, we will be a "controlled company" for purposes of the NYSE listing requirements. As such, we will be exempt from the obligation to comply with certain corporate governance requirements, including the requirements that a majority of our Board of Directors consists of independent directors, and that we have nominating and compensation committees that are each composed entirely of independent directors. These exemptions do not modify the requirement for a fully independent audit committee, which is permitted to be phased-in as follows: (1) one independent committee member at the time of our initial public offering; (2) a majority of independent committee members within 90 days of our initial public offering; and (3) all independent committee members within one year of our initial public offering. Similarly, once we are no longer a "controlled company," we must comply with the independent board committee requirements as they relate to the nominating and compensation committees, on the same phase-in schedule as set forth above, with the trigger date being the date we are no longer a "controlled company" as opposed to our initial public offering date. Additionally, we will have 12 months from the date we cease to be a "controlled company" to have a majority of independent directors on our Board of Directors. Additionally, other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

**Corporate Governance Guidelines** 

Our Board of Directors is responsible for overseeing the management of Accelerant Holdings. Prior to the closing of this offering, our Board of Directors will adopt the Corporate Governance Guidelines which will set forth our governance principles relating to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director independence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director qualifications and responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• board structure and meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management succession; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance evaluation of our Board of Directors and Chief Executive Officer.

Our Corporate Governance Guidelines will be available in the Investor Relations section of our website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**Committees of our Board** 

***Audit Committee***

We have established an audit committee of the Board of Directors. The audit committee's duties include, but are not limited to, assisting the Board of Directors with its oversight and monitoring responsibilities regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the integrity of the company's consolidated financial statements and financial and accounting processes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with the audit, accounting and internal controls requirements by the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the independent auditor's qualifications, independence and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance of the internal accounting and financial controls of the company and its subsidiaries
(including monitoring and reporting by subsidiaries) and the function of the internal audit departments of the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's legal and regulatory compliance and ethical standards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• procedures to receive, retain and treat complaints regarding accounts; internal accounting controls or
auditing matters and to receive confidential and anonymous submission by employees of concerns regarding questionable accounting or auditing matters.

Members of our audit committee also review the company's financial disclosure and public filings.

Our audit committee will be comprised of Wendy Harrington, Karen Meriwether, Todd Boehly and Michael Searles. Karen Meriwether will be the chair of the audit committee. We believe all audit committee members will each qualify as independent directors according to the rules and regulations of the SEC and the listing rules of the NYSE with respect to audit committee membership.

We also believe that Karen Meriwether will qualify as an "audit committee financial expert," as such term is defined in the rules and regulations of the SEC. Our Board of Directors has approved a written charter under which the audit committee will operate. Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our audit committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

***Compensation Committee***

We have established a compensation committee of the Board of Directors. In connection with this offering, our Board of Directors will adopt a compensation committee charter which provides that the purposes of the compensation committee are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve annually corporate goals and objectives, including financial and other performance targets,
relevant to chief executive officer and executive officer compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve annually corporate goals and objectives, including financial and other performance targets,
relevant to compensation paid to the other executive officers and key employees of the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review, approve and, when necessary, make recommendations to the Board of Directors regarding the
company's compensation plans, including with respect to incentive compensation plans and share-based plans, policies and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and administer the company's share incentive plans and any other share-based plan and any
incentive-based plan of the company and its subsidiaries, including approving grants and/or awards of restricted stock, stock options and other forms of equity-based compensation under any such plans to executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve, for the chief executive officer, when and if appropriate, employment agreements, severance
agreements, consulting agreements and change in control or termination agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare the compensation committee report required to be included in an annual report or proxy statement, as
required by applicable SEC and NYSE rules;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review periodically the company's compensation plans, policies and programs to assess whether such
policies encourage excessive or inappropriate risk-taking or earnings manipulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• once the Company is no longer an emerging growth company, review the results of any advisory stockholder votes
on executive compensation and consider whether to recommend adjustments to the company's executive compensation policies and practices as a result of such vote; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitor compliance with share ownership guidelines for the chief executive officer and other executive
officers of the Company.

Our compensation committee will be comprised of Sam Gaynor, Keoni Schwartz, Jeff Radke, Todd Boehly and Michael Searles. Sam Gaynor will be the chair of the compensation committee.

Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our compensation committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

***Nominating and Corporate Governance Committee***

In connection with this offering, our Board of Directors will adopt a nominating and corporate governance committee charter which provides that the purposes of the nominating and corporate governance committee are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify, evaluate and recommend individuals qualified to become members of our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• select, or recommend that our Board of Directors select, the director nominees to stand for election at each
annual general meeting of shareholders of the company or any subsidiary or to fill vacancies on our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop and recommend to our Board of Directors a set of corporate governance guidelines applicable to the
company and its subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee the annual performance evaluation of our Board of Directors and its committees and management.

The nominating and corporate governance committee also recommends directors eligible to serve on all committees of our Board of Directors. The nominating and corporate governance committee also reviews and evaluates all shareholder director nominees.

Our nominating and corporate governance committee will be comprised of Sam Gaynor, Paul Little, Todd Boehly, Nancy Hasley and Michael Searles. Paul Little will be the chair of the nominating and corporate governance committee.

Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our nominating and corporate governance committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**Director Independence** 

To qualify as "independent" under NYSE listing standards and the rules and regulations of the SEC, a director must meet objective criteria set forth in NYSE listing standards, and the Board of Directors must affirmatively determine that the director has no material relationship with us (either directly or as a partner, stockholder or officer of an organization that has a relationship with us) that would interfere with his or her exercise of independent judgment in carrying out his or her responsibilities as a director. The NYSE

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independence criteria include that the director must not be our employee and must not have engaged in various types of business dealings with us.

The Board of Directors will review all direct and indirect business relationships between each director (including his or her immediate family) and us, as well as each director's relationships with charitable organizations, to assess director independence as defined in the listing standards of the NYSE. The Board of Directors is in the process of reviewing the independence of our directors using the independence standards of the NYSE. Currently, we anticipate that the Board of Directors will determine that each of Todd Boehly, Michael Searles, Wendy Harrington, Paul Little and Karen Meriwether are independent under the rules of the SEC and the NYSE.

**Compensation Committee Interlocks and Insider Participation** 

None of the members of the compensation committee who presently serve, or in the past year have served, on the compensation committee has interlocking relationships as defined by the SEC or had any relationships with us which would require disclosure under the SEC rules relating to certain relationships and related-party transactions.

**Code of Business Conduct and Ethics** 

In connection with this offering, we will adopt a code of business conduct and ethics applicable to our principal executive, financial and accounting officers and all persons performing similar functions. Upon the effectiveness of the registration statement of which this prospectus forms a part, our code of business conduct and ethics will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**2024 Director Compensation** 

The table below sets forth the compensation that was awarded to, earned by, or paid to our non-employee directors for services to us during the fiscal year ended December 31, 2024. Mr. Radke is not separately compensated for his service on our Board of Directors and his compensation as our Chief Executive Officer for 2024 is included in the "2024 Summary Compensation Table" below.

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| | | | |
|:---|:---|:---|:---|
| **Name<sup>(1)</sup>** | **Fees<br>Earned or<br>Paid in<br>Cash ($)<sup>(2)</sup>** | **Stock<br>Awards<br>($)<sup>(3)</sup>** | **Total ($)** |
|  Todd Boehly<sup>(4)</sup> |  | – |  |
|  Samuel Gaynor<sup>(5)</sup> |  | – |  |
|  Wendy Harrington | 100000 | – | 100000 |
|  Paul Little | 100000 | – | 100000 |
|  Karen Meriwether | 118000 | – | 118000 |
|  Keoni Schwartz<sup>(5)</sup> |  | – |  |
|  Michael Searles<sup>(6)</sup> |  | – |  |

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(1) Nancy Hasley, who also serves as our Group General Counsel, is not included in this table because she does
not receive additional compensation for her service on our Board of Directors.

(2) The amounts reported in this column reflect cash fees earned during the reporting year.

(3) None of our non-employee directors received a grant of profits interests or other incentive equity award in
2024, and none of our non-employee directors, other than Ms. Harrington, held outstanding profits interests or other equity awards as of December 31, 2024. As of December 31, 2024, Ms. Harrington held 10,882,806 outstanding profits interest units.

(4) Mr. Boehly, who is employed by Eldridge, does not receive separate compensation for his services as a
director.

(5) Neither of Messrs. Gaynor nor Schwartz, each of whom is employed by Altamont Capital, receives separate
compensation for his services as a director.

(6) Mr. Searles, who is employed by Barings, does not receive separate compensation for his services as a
director.

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During 2024, our non-employee and non-affiliated directors received cash compensation for their service on our Board of Directors pursuant to engagement agreements we entered into with such directors as further described below. During 2024, none of our non-employee directors received a grant of profits interests or other incentive equity awards. Following this offering, we expect that our non-employee director compensation program will evolve to reflect our status as a public company and market practices.

***Board Engagement Agreements***

*Wendy Harrington* 

The Company entered into a board engagement agreement with Wendy Harrington in July 2021 (the "Harrington Engagement Agreement"). The Harrington Engagement Agreement sets forth the terms and conditions of Ms. Harrington's appointment as a member of the Board of Directors. The Harrington Engagement Agreement provides Ms. Harrington with an aggregate cash fee of $100 thousand per year for her service on the Board of Directors, including service on various committees of the Board of Directors. In addition, pursuant to the Harrington Engagement Agreement, Ms. Harrington received profits interests in May 2022 worth 1.5% of each of the then-authorized Class C-1 and C-3 profits interests pools in Accelerant Holdings LP, with 20% of the units vested on the date of grant, 20% of the units vesting on the first anniversary of the date of grant, and, following the first anniversary of the date of grant, five percent of the units vesting in quarterly increments thereafter, subject to Ms. Harrington's continued service through the applicable vesting date. The profits interests fully vest upon a change of control. This offering will not constitute a change of control under the terms of the profits interests.

*Paul Little* 

The Company entered into a board engagement agreement with Paul Little in August 2022 (the "Little Engagement Agreement"). The Little Engagement Agreement sets forth the terms and conditions of Mr. Little's appointment as a member of the Board of Directors and as a member of the board of directors of Accelerant Holdings GP (the "GP Board" and, together with the Board of Directors, the "Boards"). The Little Engagement Agreement provides Mr. Little with an aggregate cash fee of $100 thousand per year for his service on the Boards, including service on various committees of the Boards.

*Karen Meriwether* 

The Company entered into a board engagement agreement with Karen Meriwether in May 2023 (the "Meriwether Engagement Agreement"). The Meriwether Engagement Agreement sets forth the terms and conditions of Ms. Meriwether's appointment as chair of the Board of Director's audit committee. The Meriwether Engagement Agreement provides Ms. Meriwether with an aggregate cash fee of $118 thousand per year for her service as chair of the audit committee of the Board of Directors.

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**EXECUTIVE COMPENSATION** 

The following is a discussion of compensation arrangements of our named executive officers. This discussion contains forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from currently planned programs as summarized in this discussion. As an "emerging growth company" (as defined in the JOBS Act), we are not required to include a Compensation Discussion and Analysis and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies.

**Overview** 

Prior to May 2023, compensation decisions for our executive officers were made by our Board of Directors, which has historically been constituted by a majority of representatives of our equity sponsor, Altamont Capital. In setting the compensation of the executive officers other than the Company's Chief Executive Officer, our Board of Directors considered the input of the Chief Executive Officer with respect to each executive officer. Beginning in May 2023, compensation decisions have been made by the compensation committee of our Board of Directors. Following this offering, we expect that compensation decisions for our executive officers will continue to be made by the compensation committee and that our executive compensation program will evolve to reflect our status as a public company and market practices. The compensation committee has engaged Frederic W. Cook & Co., Inc., an independent compensation consultant, to assist it in its evaluation of our executive compensation program.

Our current executive compensation program is intended to align executive compensation with our business objectives and to enable us to attract, retain and reward executive officers who contribute to our long-term success. New hire executive officers' compensation is primarily determined based on the negotiations of the parties as well as our historical compensation practices. For 2024, the material elements of our executive compensation program were base salary and annual cash bonus. In addition, our executive officers hold legacy profits interests in Accelerant Holdings LP.

This section provides a discussion of the compensation paid or awarded to our Chief Executive Officer and our two other most highly compensated executive officers serving as of December 31, 2024. We refer to these individuals as our "named executive officers." For 2024, our named executive officers were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jeff Radke, Co-Founder and Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Christopher Lee-Smith, Co-Founder and Head of Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Frank O'Neill, Co-Founder and Chief Underwriting Officer.

***Compensation of Named Executive Officers***

<u>Base Salary</u>. Base salaries are intended to provide a level of compensation sufficient to attract and retain an effective management team, when considered in combination with the other components of our executive compensation program. Following this offering, it is intended that the relative levels of base salary for our named executive officers will reflect each executive officer's scope of responsibility and accountability with us. Historically, including for the year ended December 31, 2024, compensation was established in the context of our status as a "start-up" company. Please see the "Salary" column in the 2024 Summary Compensation Table for the base salary amounts earned by each named executive officer in 2024.

As of December 31, 2024, the base salaries for Messrs. Radke, Lee-Smith and O'Neill were $1,102,534, £497,820 (or $636,314), and £497,776 (or $636,257), respectively, increased from 2023 base salaries of $1,070,130, £480,000 (or $597,072), and £480,000 (or $597,072), respectively. The amounts reported for Messrs. Lee-Smith and O'Neill have been converted using a 12-month average rate of exchange.

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<u>Annual Cash Bonus</u>. Our named executive officers are eligible to receive annual incentive compensation based on a qualitative assessment of corporate performance. Each named executive officer has a target annual incentive opportunity. For 2024, the target annual incentive opportunities for our named executive officers were $556,468 for Mr. Radke, £599,040 (or $762,806) for Mr. Lee-Smith (increased from his original 2024 target of £288,000 (or $357,120) to recognize his performance) and £249,000 (or $317,836) for Mr. O'Neill. The amounts of any annual incentives earned are determined after the end of the year, based on a qualitative assessment of performance against the corporate plan. For 2024, the annual bonus program did not include pre-established performance goals and was instead based on a qualitative assessment of the Company's performance. For 2024, our Board of Directors approved payouts under our annual cash bonus program representing 360%, 100% and 161% of Messrs. Radke's, Lee-Smith's, and O'Neill's 2024 target annual incentive opportunity, respectively. Please see the "Bonus" column in the 2024 Summary Compensation Table for the amount of annual bonuses earned by each named executive officer in respect of 2024.

<u>Profits Interests</u>. We believe that members of senior management should hold a personally significant interest in the equity of the Company to align their interests with the interests of our stakeholders. As described below, we implemented this management investment philosophy by establishing a "profits-interest program." "Profits-interest programs" are common practice in portfolio companies of private equity firms and, in the case of profits interests granted to Company employees, including our named executive officers, allow participants to share in increases in the equity value of the Company. Profits interests were granted with a pre-defined "participation threshold" based on the value assigned to a limited partnership interest ("LP Interests") in Accelerant Holdings LP, the parent entity of the Company, at the time of the profits interest grant. The profits interests only share in equity appreciation above the participation threshold. This places the profits interests in a secondary position to the LP Interests in that in any event in which the equity is valued and distributed, holders of the profits interests receive a distribution only if an amount at least equal to the participation threshold has first been allocated to the LP Interests. The LP Interests and profits interests share equally in valuation amounts, if any, above the participation threshold.

Our named executive officers currently hold time-based profits interests in Accelerant Holdings LP. Each of Messrs. Radke, Lee-Smith, and O'Neill received one or more loans, each in the form of a promissory note, from Accelerant Holdings LP, which was used to cover the subscription price for such profits interests. During 2024, the loans accrued at an interest rate of 2.25%, determined on an arm's length basis. Mr. O'Neill repaid his outstanding aggregate principal loan amount in full in December 2024. As of December 31, 2024, Messrs. Radke and Lee-Smith had outstanding aggregate principal loan amounts of $2,686,599 and $1,046,692, respectively. The loans were repaid in full by Messrs. Radke and Lee-Smith prior to this offering.

Immediately prior to the consummation of this offering, following the re-designation of existing common shares following the Accelerant Holdings LP Distribution, holders of the profits interests will receive Class A common shares of the Company, with the number of shares received intended to preserve the economic value of the profits interests prior to the consummation of the offering. Any Class A common shares issued in exchange for unvested profits interests will be issued as restricted Class A common shares, subject to the same vesting conditions as the exchanged profits interests. ****During 2024, none of our named executive officers received additional grants of profits interests. Please see the "Outstanding Equity Awards at 2024 Fiscal Year-End" for a summary of the unvested profits interests held by each of our named executive officers as of December 31, 2024.

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**2024 Summary Compensation Table** 

The following table shows information regarding the compensation of our named executive officers for services performed in the years ended December 31, 2024 and December 31, 2023.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus<br>($)<sup>(1)</sup>** | **All Other<br>Compensation<br>($)<sup>(2)</sup>** | **Total ($)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Jeff Radke,<br> *Co-Founder and Chief Executive Officer* | 2024<br> 2023 | 1102534<br> 1070130 | 2000000<br> 1070130 | — <br> 25365 | 3102534<br> 2165625 |
| &nbsp;&nbsp;&nbsp;&nbsp; Christopher Lee-Smith,<br> *Head of Distribution<sup>(3)</sup>* | 2024<br> 2023 | 632231<br> 596884 | 762806<br> 733329 | 360<br> 26021 | 1395397<br> 1356234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Frank O'Neill,<br> *Chief Underwriting Officer<sup>(3)</sup>* | 2024<br> 2023 | 632175<br> 596388 | 511396<br> 305554 | — <br> 8177 | 1143571<br> 910119 |

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(1) Amounts in this column represent annual cash incentives paid based on a qualitative assessment of performance
against the 2024 corporate plan. These bonuses were paid in 2025 based on 2024 performance.

(2) The amount in this column represents a statutory bonus required under Malta law with respect to Mr. Lee-Smith for 2024.

(3) Compensation amounts for Mr. Lee-Smith and Mr. O'Neill were paid in British pounds and have been
converted to U.S. Dollars. Amounts reported in the "Salary" column have been converted using a 12-month average rate of exchange. Amounts reported in the "Bonus" and "All Other Compensation" columns have been converted
using the spot rate of exchange at the time of payment.

**Outstanding Equity Awards at 2024 Fiscal Year-End** 

The following table presents information regarding the outstanding equity awards held by each of the named executive officers as of December 31, 2024, consisting of Class A3, C1 and C3 awards held by Mr. Radke and Class C1 and C3 awards held by each of Mr. Lee-Smith and Mr. O'Neill. None of the named executive officers held any equity awards other than profits interests as of that date.

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| **Name** | **Vesting Commencement Date** | **Number of Units That<br>Have Not Vested (#)<sup>(1)</sup>** | **Market Value of Units<br>That Have Not Vested ($)<sup>(2)</sup>** |
|  Jeff Radke | September 3, 2021 | 200 |  |
|  | March 18, 2021 | 66666 |  |
|  Christopher Lee-Smith | March 18, 2021 | 32000 |  |
|  Frank O'Neill | March 18, 2021 | 10666 |  |

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(1) The profits interests are 20% vested on the date of grant and vested as to 20% on the first anniversary of
the vesting commencement date. Following the first anniversary of the vesting commencement date, the profits interests vest in quarterly increments of five percent with a total of 20% vesting annually thereafter, subject to the holder's
continued employment through the applicable vesting date. All profits interests fully vest upon a change of control. This offering will not constitute a change of control under the terms of the profits interests.

(2) Because the Company's equity was not publicly traded as of December 31, 2024, there was no
ascertainable public market value for the profits interests as of such date. The values reported in this table are based on an estimate of fair market value, using the mid-point of the offering range set forth on the cover page of this prospectus.

**Employment Agreements, Severance and Change in Control Agreements** 

We previously entered into employment agreements with each of Messrs. Radke, Lee-Smith, and O'Neill. These agreements set forth the initial terms and conditions of each executive's employment with us, including his base salary and target annual bonus opportunity and eligibility for standard employee benefit plan participation. In connection with this offering, we entered into an amended and restated employment agreement with Mr. Radke that sets forth the terms of his employment following this offering, including his base salary and annual bonus target levels. Further, in connection with this offering, we expect to enter into employment agreements with Messrs. Lee-Smith and O'Neill with severance terms that are materially consistent with those of Mr. Radke's amended and restated employment agreement as described below.

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***Jeff Radke***

The Company entered into an employment agreement with Mr. Radke, the Company's Co-Founder and Chief Executive Officer, in April 2022 (the "Radke Employment Agreement"). The terms of the Radke Employment Agreement provided for the employment of Mr. Radke as Chief Executive Officer at a base salary of $1,070,130 per year, which was subsequently increased to $1,102,534 for 2024, subject to annual increases to remain consistent with the compensation of similarly situated chief executive officers at the discretion of our Board of Directors. In addition, pursuant to the Radke Employment Agreement, Mr. Radke was entitled to participate in the Company's discretionary annual bonus arrangement with a target annual bonus opportunity of 50% of his base salary. The Radke Employment Agreement also included non-competition, non-solicitation and confidentiality provisions. The Radke Employment Agreement could have been terminated upon 12 months' written notice from either the Company or Mr. Radke, with the Company having the election to pay Mr. Radke a cash payment in lieu of such notice or to place Mr. Radke on garden leave.

In connection with this offering, we entered into an amended and restated employment agreement with Mr. Radke that sets forth the terms of his employment following this offering, including his base compensation and annual bonus target level (the "Restated Radke Employment Agreement"). The terms of the Restated Radke Employment Agreement provide that Mr. Radke will be employed as the Chief Executive Officer of the Company and of Accelerant Risk Exchange, his primary employer, and will receive combined base compensation of $1,070,130 per year, subject to annual increases based upon review by our compensation committee. Such base compensation will be payable in the form of a base salary of $175,000 from the Company and, in consideration of his performance of services with respect to the Accelerant Risk Exchange, a base salary of $175,000 from the Accelerant Risk Exchange and dividends of $720,130 on 5 Series A Preferred Units of Accelerant Risk Exchange (the "Series A Preferred Units"), which were granted to Mr. Radke in January 2025 in connection with his entering into the Restated Radke Employment Agreement. In addition, pursuant to the Restated Radke Employment Agreement, Mr. Radke is entitled to participate in the Company's and Accelerant Risk Exchange's discretionary annual bonus arrangements with a target annual bonus opportunity of 150% of his combined base compensation. Any such bonus will be paid, to the maximum extent possible, by the Accelerant Risk Exchange in the form of dividends on Mr. Radke's Series A Preferred Units. Pursuant to the Restated Radke Employment Agreement, Mr. Radke is also entitled to participate in the equity incentive program maintained for senior executive officers of the Company and its subsidiaries, and equity vehicles determined by our compensation committee for each year of participation thereunder. Mr. Radke is also entitled to reimbursement of any material attorneys' fees arising out of the negotiation of the Restated Radke Employment Agreement.

Under the terms of the Restated Radke Employment Agreement, in the event Mr. Radke is terminated by us without "cause" or he terminates his employment for "good reason", Mr. Radke would become entitled to receive: (i) an aggregate amount equal to the sum of (A) two times Mr. Radke's then-current base compensation plus (B) his target annual bonus for the year of termination paid over 12 months; and (ii) up to 18 months of reimbursement for COBRA premiums. If Mr. Radke is terminated due to death or disability, he would be entitled to his pro rata annual bonus for the year of such termination. In connection with Mr. Radke's entry into the Restated Radke Employment Agreement, Mr. Radke entered into a Restrictive Covenant Agreement which subjects Mr. Radke to certain non-competition, non-solicitation and confidentiality provisions.

***Christopher Lee-Smith***

The Company entered into an employment agreement with Mr. Lee-Smith, the Company's Co-Founder and Head of Distribution, in April 2020 (the "Lee-Smith Employment Agreement"). The Lee-Smith Employment Agreement provides Mr. Lee-Smith with a total salaried amount of £350,000 per year, which was subsequently increased to £497,820 for 2024, £499,200 beginning January 1, 2025 through March 31, 2025 and £519,168 beginning April 1, 2025, subject to annual review by Accelerant Holdings GP's board of directors. Such amount is inclusive of allowances for the following expatriate benefits relating to his assignment in Malta: (A) relocation expenses; (B) housing expenses; (C) travel expenses for Mr. Lee-Smith and his immediate family; (D) a

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company car; (E) a monthly stipend; (F) medical expenses and medical insurance; and (G) an education allowance for Mr. Lee-Smith's children. The Lee-Smith Employment Agreement also includes non-competition, non-solicitation and confidentiality provisions. The Lee-Smith Employment Agreement may be terminated upon 12 months' written notice from either the Company or Mr. Lee-Smith, with the Company having the election to pay Mr. Lee-Smith a cash payment in lieu of such notice or to place Mr. Lee-Smith on garden leave.

***Frank O'Neill***

The Company entered into an employment agreement with Mr. O'Neill, the Company's Co-Founder and Chief Underwriting Officer, in April 2022 (the "O'Neill Employment Agreement"). The terms of the O'Neill Employment Agreement provides for the employment of Mr. O'Neill as Chief Underwriting Officer at a total salaried amount of £480,000, which was subsequently increased to £497,776 for 2024, £499,200 beginning January 1, 2025 through March 31, 2025 and £519,168 beginning April 1, 2025, subject to annual review by Accelerant Holdings GP's board of directors. Such amount is inclusive of allowances for the following expatriate benefits relating to his assignment in Guernsey: (A) relocation and housing expenses; (B) travel expenses for Mr. O'Neill and his immediate family; (C) a company car; (D) a monthly stipend; (E) medical expenses and medical insurance; and (F) an education allowance for Mr. O'Neill's children. In addition, pursuant to the O'Neill Employment Agreement, Mr. O'Neill is entitled to participate in the Company's discretionary annual bonus arrangement with a target annual bonus opportunity of 50% of his base salary. The O'Neill Employment Agreement also includes non-competition, non-solicitation and confidentiality provisions. The O'Neill Employment Agreement may be terminated upon six months' written notice from either the Company or Mr. O'Neill, with the Company having the election to pay Mr. O'Neill a cash payment in lieu of such notice or to place Mr. O'Neill on garden leave.

**Retirement Plan** 

Our U.S. employees are eligible to participate in a 401(k) plan, which allows eligible employees an opportunity to save for retirement. Participants may defer up to 99% of cash compensation up to the maximum amount allowed under the Internal Revenue Code. Under the terms of the 401(k) plan, we match 100% of each participant's contributions up to the first 5% of his or her eligible compensation. None of our named executive officers were eligible to participate in the 401(k) plan in 2024.

**Clawback Policy** 

In connection with this offering, we previously adopted a clawback policy to comply with the requirements of the Dodd-Frank Act and applicable listing standards. In general, this policy requires the Company to recoup from certain current and former executive officers of the Company erroneously-awarded incentive-based compensation in the event of certain required accounting restatements, regardless of any misconduct or fault on the part of the executive officer. The clawback policy will become effective upon the effectiveness of this offering.

**Equity Compensation Plans and Other Benefit Plans** 

***Profits Interests***

As described above, our named executive officers currently hold profits interests in Accelerant Holdings LP, the parent entity of the Company. The profits interests are governed by the A&R Securityholders Deed for Accelerant Holdings LP. Immediately prior to the consummation of this offering, holders of the profits interests will receive Class A common shares of the Company, with the number of shares received intended to preserve the economic value of the profits interests prior to the consummation of the offering. Any Class A common shares issued in exchange for unvested profits interests will be issued as restricted Class A common shares, subject to the same vesting conditions as the exchanged profits interests.

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***Share Incentive Plan***

Our Board of Directors adopted in 2021, and our shareholders approved in 2023, the Company's Share Incentive Plan which was amended and restated in connection with this offering (as amended and restated, the "2023 Plan").

The purposes of the 2023 Plan are (i) to align the interests of the Company's shareholders and the recipients of awards under the 2023 Plan by increasing the proprietary interest of such recipients in the Company's growth and success, (ii) to advance the interests of the Company by attracting and retaining non-employee directors, officers, other employees, consultants, independent contractors and agents and (iii) to motivate such persons to act in the long-term best interests of the Company and its shareholders. The material terms of the 2023 Plan are as follows. The following summary is not a complete description of all provisions of the 2023 Plan and is qualified in its entirety by reference to the 2023 Plan, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

*Eligibility.* Officers, other employees, non-employee directors, consultants, independent contractors and agents, and persons expected to become officers, other employees, non-employee directors, consultants, independent contractors and agents of us and our subsidiaries are eligible to receive awards under the 2023 Plan, provided such persons are eligible to receive awards of our Class A common shares that are registered on a Form S-8 registration statement. Participants will also consist of persons who receive restricted Class A common shares in substitution for unvested profits interests and similar awards with respect to Accelerant Holdings LP in connection with the transactions relating to this offering (the "Replacement Awards").

*Class A Common Shares Subject to the 2023 Plan.* Subject to adjustment as described below, the number of Class A common shares available for all awards under the 2023 Plan is (including, without limitation, incentive stock options, but excluding the Replacement Awards and other substitute awards). The number of shares available under the 2023 Plan will increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) 5% of the number of shares issued on December 31 of the immediately preceding fiscal year and (ii) an amount determined by our Board of Directors.). To the extent an equity award granted under the 2023 Plan other than a substitute award expires, terminates, is cancelled or forfeited, or is settled in cash, the shares subject to such award will become available for future grant under the 2023 Plan. In addition, to the extent shares subject to an award granted under the 2023 Plan are withheld to satisfy a participant's tax withholding obligation upon the net exercise or net settlement of an option or stock-settled share appreciation right award or to pay the purchase price or the withholding taxes relating to an award, such shares will become available for future grant under the 2023 Plan. Shares that may be delivered under the 2023 Plan may be authorized but unissued shares, treasury shares, or previously issued shares acquired by us.

*Plan Administration.* Our compensation committee administers the 2023 Plan. Subject to the terms of the 2023 Plan, our compensation committee has the authority to select eligible persons for participation in the 2023 Plan, determine the form, amount and timing of each award to such persons and, if applicable, the number of Class A common shares subject to an award, the number of share appreciation rights, the number of restricted stock units, the dollar value subject to a performance award, the purchase price or base price associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the agreement evidencing the award. The compensation committee may also take action such that (i) any or all outstanding options and share appreciation rights become exercisable in part or in full, (ii) all or a portion of the restriction period applicable to any outstanding awards will lapse, (iii) all or a portion of the performance period applicable to any outstanding awards will lapse, and (iv) the performance measures (if any) applicable to any outstanding awards will be deemed to be satisfied at the target, maximum or any other level. The compensation committee also has the authority, subject to the terms of the 2023 Plan, to interpret the 2023 Plan and the application thereof and establish rules and regulations it deems necessary or desirable for the administration of the 2023 Plan. The compensation committee may delegate some

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or all of its power and authority under the 2023 Plan to our Board of Directors (or any members thereof) or, subject to applicable law, to a subcommittee of our Board of Directors, a member of our Board of Directors, our chief executive officer or other executive officer as the compensation committee deems appropriate.

*Incentive Stock Options, Share Options and Share Appreciation Rights.* Our compensation committee may grant incentive stock options, nonqualified share options, and share appreciation rights under the 2023 Plan. Other than with respect to substitute awards, the exercise price of incentive stock options, nonqualified share options and share appreciation rights under the 2023 Plan will be determined by the compensation committee, but must not be less than 100% of the closing price of a common share on the date of grant (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported). The term of an option or share appreciation right may not exceed ten years; provided, however, that an incentive stock option granted to an employee who owns more than 10% of all of our classes of stock, or of certain of our affiliates, may not have a term in excess of five years, and must have an exercise price of at least 110% of the closing price of a common share on the date of grant (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported). Subject to the provisions of the 2023 Plan, the compensation committee will determine the remaining terms of the options and share appreciation rights (e.g., vesting). The compensation committee has the discretion, without shareholder approval, to (i) reduce the purchase price or base price of any previously granted option or share appreciation right, (ii) cancel any previously granted option or share appreciation right in exchange for another option or share appreciation right with a lower purchase price or base price or (iii) cancel any previously granted option or share appreciation right in exchange for cash or another award if the purchase price of such option or the base price of such share appreciation right exceeds the closing price of a common share on the date of such cancellation (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported).

*Share Awards.* Our compensation committee may grant restricted shares, restricted share units, or other share awards under the 2023 Plan. The compensation committee will determine the number of shares subject to the award, any vesting conditions applicable to the award, and the nature of any performance measures. Unless otherwise specified in the award agreement, the recipient of restricted shares will have voting rights and be entitled to receive dividends with respect to his or her restricted shares. The recipient of restricted share units will not have voting rights prior to settlement of the award, but his or her award agreement may provide for the receipt of dividend equivalents. Our compensation committee may grant other share awards that are based on or related to our Class A common shares, such as awards of Class A common shares granted as a bonus and not subject to any vesting conditions, deferred share units, share purchase rights, and Class A common shares issued in lieu of our obligations to pay cash under any compensatory plan or arrangement.

*Performance Awards.* Our compensation committee may grant performance awards, which are awards that vest subject to the achievement of performance criteria. Our compensation committee will determine the value of any performance award, the vesting conditions applicable to the award and the nature of the performance measures, and whether the award is denominated or settled in cash or in Class A common shares. The performance goals applicable to a particular award will be determined by our compensation committee at the time of grant.

*Transferability of Awards.* The 2023 Plan generally does not allow awards to be transferred other than by will or the laws of inheritance following the participant's death, and awards generally may only be exercised or settled during the lifetime of the participant, only by the participant. However, an award agreement may permit a participant to transfer an award to a family member to a trust or entity established by the participant for estate planning purposes, to a charitable organization, or pursuant to a domestic relations order, in each case, without consideration. A participant may also designate a beneficiary who will receive outstanding awards upon the participant's death.

*Certain Adjustments.* In the event of any equity restructuring that causes the per share value of our Class A common shares to change, such as a stock dividend, share subdivision, spinoff, rights offering, or recapitalization

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through an extraordinary cash dividend, the compensation committee will make appropriate adjustments to the number and class of securities available under the 2023 Plan, the terms of each outstanding award (including the number and class of securities subject to each outstanding award and, if applicable, the purchase price or base price per share). In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the compensation committee to prevent dilution or enlargement of rights of participants.

*Change in Control.* Subject to the terms of the applicable award agreement, upon a "change in control" (as defined in the 2023 Plan), our Board of Directors may, in its discretion, (i) require that some or all outstanding options and share appreciation rights will become exercisable in full or in part, that the restriction period and/or performance period applicable to some or all outstanding restricted stock awards and restricted stock unit awards will lapse in full or in part and/or that the performance measures applicable to some or all outstanding awards will be deemed to be satisfied, (ii) require that shares of stock of the corporation resulting from such a change in control, or a parent corporation thereof, or other property be substituted for some or all of our Class A common shares subject to an outstanding award, and/or (iii) require that any outstanding awards, in whole or in part, be surrendered to us by the holder and be immediately cancelled by us in exchange for a cash payment, shares of stock of the corporation resulting from or succeeding us, other property or a combination of cash, such shares of stock or other property, in each case, with a value equal to the fair market value of the aggregate number of Class A common shares subject to the surrendered award (whether or not vested) less the purchase price or base price (if any), if applicable (or, for performance awards denominated in cash, the value of the surrendered performance award to the extent the performance measures have been satisfied or are deemed satisfied pursuant to clause (i) above).

*Clawback.* Awards granted under the 2023 Plan and any cash payment or shares of our Class A common shares delivered pursuant to an award are subject to forfeiture, recovery, or other action pursuant to the applicable award agreement, our Policy on Recoupment of Incentive Compensation or any other clawback or recoupment policy that we may adopt.

*Plan Termination and Amendment.* Our Board of Directors (and, subject to applicable law, the compensation committee) has the authority to amend, modify, or terminate the 2023 Plan or any award, subject to any requirement of shareholder approval required by law or stock exchange rules and provided that no amendment may materially impair a participant's rights without the participant's consent. Our 2023 Plan will terminate on the ten-year anniversary of its approval by our shareholders, as amended and restated, unless we terminate it earlier.

***2025 Employee Stock Purchase Plan***

In connection with this offering, our Board of Directors will adopt and our current stockholders expect to approve the 2025 Employee Stock Purchase Plan, or the ESPP, to be effective upon the completion of this offering. The ESPP includes two components: (i) a component intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and (ii) a component that does not qualify as an "employee stock purchase plan" under Section 423 of the Code. The following summary describes what we expect to be the material terms of the ESPP. This summary is not a complete description of all provisions of the ESPP and is qualified in its entirety by reference to the ESPP, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

*Eligibility.* Generally, all of our employees (including those of our consolidated subsidiaries, other than those subsidiaries excluded from participation by our Board of Directors or compensation committee) are eligible to participate in the ESPP.

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*Stock Subject to the ESPP.* of our Class A common shares, subject to adjustment for stock splits, share subdivisions, stock dividends, share consolidations or other changes in our Class A common shares, have been reserved for issuance under the ESPP. Subject to the adjustment provisions contained in the ESPP, the maximum number of shares of our Class A common shares available under the ESPP will automatically increase on the first trading day in January of each calendar year, commencing in 2026 and continuing until (and including) 2035, by an amount equal to the lesser of % of the shares of our Class A common shares issued and outstanding on December 31 of the immediately preceding calendar year, Class A common shares or such lesser amount as is determined by our Board of Directors.

*Plan Administration.* The ESPP will be administered by the compensation committee or a designee of the compensation committee.

*Offering Periods.* The ESPP permits employees to purchase our Class A common shares through payroll deductions during six-month offering periods.

*Payroll Deductions and Other Limits.* Participants may authorize payroll deductions of a specific percentage of compensation of up to 15%, with such deductions being accumulated for six-month purchase periods beginning on the first business day of each offering period and ending on the last business day of each offering period. No employee may participate in an offering period if the employee owns 5% or more of the total combined voting power or value of our stock or the stock of any of our subsidiaries. No participant may purchase more than Class A common shares during any offering period. No participant will be granted an option under the ESPP that permits the participant's rights to purchase shares under all employee stock purchase plans of us or our subsidiaries to accrue at a rate that exceeds $25,000 in fair market value for each calendar year in which such option is outstanding at any time, determined in accordance with Section 423 of the Code.

*Purchase Price.* Under the terms of the ESPP, the purchase price per share with respect to an offering period will equal the lesser of (i) 85% of the closing price of a common share on the first business day of such offering period (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported) and (ii) 85% of the closing price of a common share on the last business day of such offering period (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported), although the compensation committee has discretion to change the purchase price with respect to future offering periods, subject to the terms of the ESPP.

*Corporate Transactions.* In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding option under the ESPP will be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor corporation, unless our Board of Directors determines, in the exercise of its sole discretion, in lieu of such assumption or substitution, to either terminate all outstanding options and return to each participant the payroll deductions credited to such participant's purchase account or to provide for the offering period in progress to end on a date prior to the consummation of such sale or merger. In the event of the proposed dissolution or liquidation of the Company, the offering period then in progress would terminate immediately prior to the consummation of such proposed action, unless otherwise provided by our Board of Directors, and our Board of Directors may either provide for the purchase of shares as of the date on which such offering period terminates or return to each participant the payroll deductions credited to such participant's purchase account.

*Termination and Amendment.* The ESPP may be amended by our Board of Directors or the compensation committee but may not be amended without prior stockholder approval to the extent required by Section 423 of the Code. The ESPP shall continue in effect until the earlier of (i) the termination of the ESPP by our Board of Directors or the compensation committee pursuant to the terms of the ESPP and (ii) the ten-year anniversary of the effective date of the ESPP, with no new offering periods commencing on or after such ten-year anniversary.

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**DESCRIPTION OF CERTAIN INDEBTEDNESS** 

Set forth below is a summary of the terms of the agreements governing certain of our outstanding indebtedness as of the date of this prospectus. This summary is not a complete description of all of the terms of the agreements. The agreements setting forth the terms and conditions of certain of our outstanding indebtedness are filed as exhibits to the registration statement of which this prospectus forms a part.

**Bank of Montreal Credit Facilities** 

On September 26, 2024 (the "Effective Date"), we entered into a second amended and restated credit agreement, among us, the guarantors party thereto, Bank of Montreal, as administrative agent (the "Agent"), and the lenders party thereto (the "Credit Agreement"), providing for a $125.0 million term loan facility (the "Term Loan Facility") and a $50.0 million revolving credit facility (the "Revolving Facility" and together with the Term Loan Facility, the "Credit Facilities"), each of which matures on September 26, 2029. The Term Loan Facility was fully drawn on the Effective Date.

Also on September 26, 2024, various of our subsidiaries entered into a second amended and restated guaranty in favor of the Agent, for the benefit of the lenders, guaranteeing payment of our obligations under the Credit Facilities.

Borrowings under the Credit Agreement are made in U.S. Dollars and bear interest, at our option, at either (a) the ABR (as defined in the Credit Agreement) or (b) the Term SOFR rate plus 0.10%, in each case, plus an applicable spread ranging from 2.25% to 2.75% for ABR Loans and 3.25% to 3.75% for SOFR Loans. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.45% to 0.55% per annum for the unused portion of the aggregate commitments under the Revolving Facility. Both the spread applicable to the interest rate and the commitment fee are dependent on our Consolidated Senior Debt to Capitalization Ratio (as defined in the Credit Agreement), calculated as of the last day of the most recently ended fiscal period for which financial statements were furnished to the Agent.

At the end of each interest period of, at our option, one, three or six months (each, an "Interest Period") for each Loan, we may elect to continue such Loans on the same or different principal amount and/or Interest Period. We may elect to continue such Loans, to convert SOFR Loans to ABR Loans or ABR Loans to SOFR Loans, or we may elect to designate such Loans as any combination of ABR Loans and SOFR Loans.

The Loans may be prepaid in whole or in part without premium or penalty (but subject to breakage fees) and in the case of loans under the Term Loan Facility (the "Term Loans") such prepaid amounts may not be reborrowed. The aggregate original principal amount of the Term Loans have to be repaid quarterly in 0.625% installments for one year following the fourth full fiscal quarter after the Effective Date and then at 1.25% until the maturity date. Interest for each Loan is due (a) on the last day of the applicable Interest Period, (b) with each prepayment of principal, and (c) at maturity. All computations of fees and interest (other than interest accruing on ABR Loans at times when the ABR is based on the Prime Rate) are calculated based on a 360-day year and the actual number of days elapsed. All computations of fees and interest accruing on ABR Loans at times when the ABR is based on the Prime Rate are calculated based on a 365-day year (or 366 days in a leap year).

Under the Credit Agreement, we have the option of obtaining additional term loans or increasing the revolving commitments up to an aggregate principal amount of $75.0 million, subject to meeting certain conditions, and only if the applicable incremental lenders agree to provide such additional term loans or revolving commitments. Proceeds of the additional term loans or revolving loans may be used for general corporate purposes.

The Credit Agreement contains affirmative and negative covenants typical of loan agreements of this type, including, among others, limitations on the incurrence of additional indebtedness, liens, dividends and

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distributions in respect of, and repurchases and redemptions of, our capital stock, investments, transactions with affiliates, certain asset sales, changes in our business, organizational documents and fiscal year compliance with the financial covenants (including required maintenance of consolidated net worth and limitations on our consolidated senior debt to capitalization ratio, consolidated total debt to capitalization ratio and consolidated adjusted EBITDA to consolidated interest expenses ratio). We were in compliance with all such covenants as of March 31, 2025.

Events of default under the Credit Agreement are generally typical for loan agreements of this type.

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**DESCRIPTION OF SHARE CAPITAL** 

**General** 

Accelerant Holdings was incorporated in the Cayman Islands in October 2021 with registered number 381680. Our affairs are governed by our memorandum and articles of association and the Cayman Companies Act and the common law of the Cayman Islands.

In connection with this offering, we will amend and restate our memorandum and articles of association. Copies of the forms of our memorandum and articles of association are filed as exhibits to the registration statement of which this prospectus forms a part. Material provisions of our memorandum and articles of association and relevant sections of Cayman Islands law are summarized under "Material Differences in Corporate Law." The following description of our share capital and memorandum and articles of association is qualified in its entirety by the provisions of our memorandum and articles of association.

**Authorized and Outstanding Share Capital** 

As of , our authorized share capital consisted of Class A common shares and Class B common shares, each with a par value of $0.0001 per share, of which Class A common shares and Class B common shares were issued and outstanding. Upon the effectiveness of our amended and restated memorandum and articles of association, our authorized share capital will consist of $, comprised of Class A common shares and Class B common shares, each with a par value of $, and preference shares, par value of $0.0001 per share.

Upon the completion of this offering, based on the number of common shares outstanding as of , we will have Class A common shares and Class B common shares issued and outstanding, after giving effect to the issuance of Class A common shares in this offering, assuming the conversion of all outstanding Accelerant Holdings preference shares into an aggregate of Class A common shares immediately upon the closing of this offering, and assuming no exercise by the underwriters of their option to purchase additional Class A common shares.

**Class A Common Shares** 

Holders of Class A common shares are entitled to cast one vote for each share on all matters submitted to a vote of shareholders, including the election of directors. The holders of Class A common shares are entitled to receive ratably such dividends, if any, as may be declared by our directors out of funds legally available therefore. We have not in the past paid and do not expect for the foreseeable future to pay, dividends on our common shares, including our Class A common shares. Instead, we anticipate that all of our earnings, if any, in the foreseeable future will be used for working capital and other general corporate purposes. Any future determination to pay dividends will be at the discretion of our Board of Directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions. Such holders do not have any preemptive or other rights to subscribe for additional Class A common shares. All holders of Class A common shares are entitled to share ratably in any assets for distribution to shareholders upon our liquidation, dissolution or winding up.

There are no conversion, redemption, or sinking fund provisions applicable to the Class A common shares.

**Class B Common Shares** 

Holders of Class B common shares are entitled to cast ten votes for each share on all matters submitted to a vote of shareholders, including the election of directors. The holders of Class B common shares are entitled to receive ratably such dividends, if any, as may be declared by our directors out of funds legally available

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therefore. We have not in the past paid and do not expect for the foreseeable future to pay, dividends on our common shares, including our Class B common shares. Instead, we anticipate that all of our earnings, if any, in the foreseeable future will be used for working capital and other general corporate purposes. Any future determination to pay dividends will be at the discretion of our Board of Directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions. Such holders do not have any preemptive or other rights to subscribe for additional Class B common shares. All holders of Class B common shares are entitled to share ratably in any assets for distribution to shareholders upon our liquidation, dissolution or winding up.

There are no redemption or sinking fund provisions applicable to the Class B common shares.

*Combined Voting Power of Class A common shares and Class B common shares* 

Holders of Class A common shares and Class B common shares will vote together as a single class on all matters requiring approval by our shareholders unless otherwise required by law.

Upon the consummation of this offering, assuming no exercise of the underwriters' option to purchase additional Class A common shares, holders of our Class A common shares will hold approximately % of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately % of the combined voting power of our outstanding common shares.

If the underwriters' option to purchase additional shares of our Class A common shares is exercised in full, holders of our Class A common shares will hold approximately % of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately % of the combined voting power of our outstanding common shares. Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled to in excess thereof shall be disregarded.

*Transfer of Class B Common Shares* 

Each Class B common share shall automatically, without any further action, convert into one Class A common share immediately following a transfer to any person other than a Class B holder or a "Permitted Transferee," as defined in our memorandum and articles of association to include an Affiliate of the Class B holder or one or more trustees of a trust established for the benefit of the Class B holder or an Affiliate. Such conversion shall occur automatically without the need for any further action by the holders of such shares and whether or not the certificates representing such shares (if any) are surrendered to the Company or its transfer agent; provided, however, that the Company shall not be obligated to issue certificates evidencing the Class A common shares issuable upon such conversion unless the certificates evidencing such Class B common shares are either delivered to the Company or its transfer agent, or the holder notifies the Company that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates. Upon the occurrence of such automatic conversion of the Class B common shares, the holder of Class B common shares so converted shall surrender the certificates representing such shares (if any) at the offices of the Company or its transfer agent.

"Affiliate" means (i) in the case of a natural person, such person's parents, parents-in-law, spouse, children or grandchildren, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by such person or any of the foregoing, and (ii) in the case of a corporation, partnership or other entity or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. The term "control" shall mean the ownership, directly or indirectly, of shares possessing more than fifty per cent (50%) of the voting power of the corporation, or the partnership or other entity (other than, in the case of a corporation, shares having such power only by reason of the happening of a contingency), or having the power to control the management or elect a majority of members to the board of directors or equivalent decision-making body of such corporation, partnership or other entity.

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*Conversion of Class B Common Shares* 

In addition to the automatic conversion of Class B common shares upon transfer as described above, a Class B holder has the right to call upon the Company to effect a conversion of all or any of their Class B common shares into Class A common shares on a one-to-one basis. Additionally, if at any time following the consummation of this offering the holders of the Class B common shares immediately prior to the consummation of this offering hold less than 50% of the total Class B common shares then in issue, then all Class B common shares then in issue shall automatically convert into Class A common shares. In any event, all of the Class B common shares will automatically convert into Class A common shares as of the date which is the third anniversary of the consummation of this offering.

**Preference Shares** 

Pursuant to our articles of association to be in effect upon the completion of this offering, our Board of Directors will be authorized, without any action by our shareholders, to designate and issue preference shares in one or more classes and to designate the powers, preferences and rights of each class, which may be greater than the rights of our common shares. It is not possible to state the actual effect of the issuance of any shares of preference shares upon the rights of holders of our common shares until the Board of Directors determines the specific rights of the holders of such preference shares. However, the effects might include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing dividend rights of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diluting the voting power of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing the liquidation rights of our common shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delaying or preventing a change of control of us without further action by our shareholders.

Upon the completion of this offering, all existing Class A convertible preference shares and Class B convertible preference shares will be converted to Class A common shares or Class B common shares, as applicable. Holders of Class C convertible preference shares may elect to convert to Class A common shares or Class B common shares, as applicable, at the time of the offering. While we anticipate that holders of the Class C convertible preference shares will elect to convert to Class A common shares or Class B common shares, as applicable, variability in the timing or pricing of this offering may result in holders electing to redeem their Class C convertible preference shares. The share capital will be redesignated in the amended and restated memorandum and articles of association to eliminate Class A convertible preference shares and Class B convertible preference shares (and Class C convertible preference shares, if applicable) as separate share classes, and we have no present plan to issue any of our preference shares following this offering.

**Limitations on the Right to Own or Vote Shares** 

As a Cayman Islands company, we may not hold our own shares as a shareholder, save for shares that are redeemed or repurchased by us or surrendered by a shareholder and held as treasury shares. We may not exercise any voting or other rights in respect of treasury shares nor may any dividend be declared or paid or other distribution be made in respect of treasury shares. However, bonus shares may be issued in respect of treasury shares although they will, in turn, be treated as treasury shares.

**Limitations on Transfer of Shares** 

Our articles of association give our directors, at their discretion, the right to decline to register any transfers of shares that are not fully paid-up shares.

**Changes in Share Capital** 

We may, from time to time, by ordinary resolution passed by a majority of the votes cast by shareholders present at a shareholder meeting entitled to vote on such resolution, or passed by a unanimous written consent of

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shareholders entitled to vote for so long as we are a controlled company, increase our share capital by such sum, to be allocated among shares of such par value, as the resolution shall prescribe. The new shares shall be subject to the same provisions with reference to the payment of calls, liens, transfers, transmissions, forfeitures and otherwise as the shares in the original share capital. We may by ordinary resolution passed at a shareholder meeting by a majority of the votes cast by shareholders present at such meeting and entitled to vote on such resolution, or passed by a unanimous written consent of shareholders entitled to vote for so long as we are a controlled company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidate our share capital into shares of larger par value than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sub-divide our share capital into shares of smaller par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• divide our shares into multiple classes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cancel any shares which, at the date of the passing of the resolution, have not been issued and diminish the
amount of the shares so cancelled.

We may by special resolution passed by at least two-thirds of the votes cast by shareholders present at a shareholder meeting and entitled to vote on such resolution, or passed by a unanimous written consent of shareholders entitled to vote for so long as we are a controlled company, reduce our share capital to the extent not representing shares in issue or following court application and consent, reduce our share capital in relation to shares in issue or any capital redemption reserve fund maintained in accordance with the Cayman Companies Act.

**Business Opportunities** 

Our articles of association, to the maximum extent permitted from time to time by Cayman Islands law, renounce any interest or expectancy that we have in, or any right to be offered an opportunity to participate in, any business opportunities that are from time to time presented to Altamont Capital, Eldridge Industries, LLC or Barings LLC or their respective affiliates or any of their directors, partners, principals, officers, members, manager and/or employees who is also a director or officer ("Exempted Persons") other than to those directors who are employed by us or our subsidiaries, unless the business opportunity is expressly offered to such person in his or her capacity as a director or officer.

Our articles of association provide that, to the maximum extent permitted from time to time by Cayman Islands law, none of the Exempted Persons, or any director who is not employed by us or any of his or her affiliates, will have any duty to refrain from (1) engaging in similar lines of business in which we or our affiliates are presently engaged or propose to engage or (2) otherwise competing with us or our affiliates. In addition, our articles of association provide that, to the maximum extent permitted from time to time by Cayman Islands law, in the event that any Exempted Person or any nonemployee director acquires knowledge of a potential transaction or other business opportunity, such person will have no duty to communicate or offer such transaction or business opportunity to us or any of our affiliates and they may take any such opportunity for themselves itself, himself or herself or offer it to another person or entity unless the business opportunity is expressly offered to such person in his or her capacity as our director. Our articles of association provide that, such document may only be amended with the consent of Altamont Capital, for so long as Altamont Capital beneficially owns at least % of the voting power of our outstanding shares.

**Registration Rights** 

For information about registration rights, please see "Certain Relationships and Related-Party Transactions—Registration Rights Agreement."

**Certain Effects of Authorized but Unissued Shares** 

Upon completion of this offering, we will have approximately million Class A common shares and Class B common shares remaining authorized but unissued. Authorized but unissued Class A

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common shares and Class B common shares are available for future issuance without shareholder approval. Issuance of these shares will dilute your percentage ownership in us.

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common shares is Computershare Trust Company, N.A. Its address is 150 Royall Street, Canton, Massachusetts 02021.

**Listing** 

We have applied to list our Class A common shares on the NYSE under the symbol "ARX."

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**MATERIAL DIFFERENCES IN CORPORATE LAW** 

**Differences in Corporate Law** 

We are incorporated under the laws of the Cayman Islands. The Cayman Companies Act is modeled after the corporate legislation of the United Kingdom but does not follow recent United Kingdom statutory enactments, and differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the Cayman Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware and their shareholders.

This discussion does not purport to be a complete statement of the rights of holders of our Class A common shares under applicable Cayman Islands law and our Fourth Amended and Restated Memorandum and Articles of Association or the rights of holders of the common stock of a typical corporation under applicable Delaware law and a typical certificate of incorporation and bylaws.

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|  | **Delaware** | **Cayman Islands** |
|  Title of Organizational Documents | Certificate of Incorporation<br> Bylaws | Memorandum of Association<br> Articles of Association |
|  Duties of Directors | Under Delaware law, the business and affairs of a corporation are managed by or under the direction of its board of directors. In exercising their powers, directors are charged with a fiduciary duty of care to protect the interests of the corporation and a fiduciary duty of loyalty to act in the best interests of its shareholders. The duty of care requires that directors act in an informed and deliberative manner and inform themselves, prior to making a business decision, of all material information reasonably available to them. The duty of care also requires that directors exercise care in overseeing and investigating the conduct of the corporation's employees. The duty of loyalty may be summarized as the duty to act in good faith, not out of self-interest, and in a manner which the director reasonably believes to be in the best interests of the shareholders. | As a matter of Cayman Islands law, directors of Cayman Islands companies owe fiduciary duties to their respective companies to, amongst other things, act in good faith in their dealings with or on behalf of the company and exercise their powers and fulfill the duties of their office honestly. This duty has four essential elements:<br>a duty to act in good faith in what the directors bona fide consider to be the best interests of the company (and in this regard, it should be noted that the duty is owed to the company and not to associate companies, subsidiaries or holding companies);<br>a duty not to personally profit from opportunities that arise from the office of director;<br>a duty of trusteeship of the company's assets;<br>a duty to avoid conflicts of interest; and<br>a duty to exercise powers for the purpose for which such powers were conferred.<br>A director of a Cayman Islands company also owes the company a |

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|  | **Delaware** | **Cayman Islands** |
|  |  | duty to act with skill, care and diligence. A director need not exhibit in the performance of his or her duties a greater degree of skill than may reasonably be expected from a person of his or her knowledge and experience. However, Cayman Islands law permits the duty to avoid conflicts of interest to be modified by a company's articles of association. |
|  Limitations on Personal Liability of Directors and Officers | Subject to the limitations described below, a certificate of incorporation may provide for the elimination or limitation of the personal liability of a director or officer to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director or officer.<br>Such provision cannot limit liability for breach of loyalty, bad faith, intentional misconduct, unlawful payment of dividends, or unlawful share purchase or redemption. In addition, the certificate of incorporation cannot limit liability for any act or omission occurring prior to the date when such provision becomes effective. | The Cayman Companies Act has no equivalent provision to Delaware law regarding the limitation of director's liability. However, as a matter of public policy, Cayman Islands law will not allow the limitation of a director's liability to the extent that the liability is a consequence of the director committing a crime or of the director's own actual fraud, dishonesty or willful default. |
|  Indemnification of Directors, Officers, Agents, and Others | A corporation has the power to indemnify any director, officer, employee, or agent of corporation who was, is, or is threatened to be made a party who acted in good faith and in a manner he believed to be in the best interests of the corporation, and if with respect to a criminal proceeding, had no reasonable cause to believe his conduct would be unlawful, against amounts actually and reasonably incurred. | Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own actual fraud, willful deceit, or dishonesty. |
|  Interested Directors | Under Delaware law, subject to provisions in the certificate of incorporation, a transaction in which a director who has an interest in such transaction would not be voidable if (i) the material facts as to such interested director's relationship or | Our articles of association contain provisions that permit a director to vote on a transaction in which he or she is interested provided he or she discloses such interest to the board of directors. |

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|  | **Delaware** | **Cayman Islands** |
|  | interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum, (ii) such material facts are disclosed or are known to the shareholders entitled to vote on such transaction and the transaction is specifically approved in good faith by vote of the shareholders, or (iii) the transaction is fair as to the corporation as of the time it is authorized, approved or ratified. Under Delaware law, a director could be held liable for any transaction in which such director derived an improper personal benefit. |  |
|  Voting Requirements | The certificate of incorporation may include a provision requiring supermajority approval by the directors or shareholders for any corporate action.<br>In addition, under Delaware law, certain business combinations involving interested shareholders require approval by a supermajority of the non-interested shareholders. | For the protection of shareholders, certain matters must be approved by special resolution of the shareholders as a matter of Cayman Islands law, including alteration of the memorandum or articles of association, appointment of inspectors to examine company affairs, reduction of share capital (subject, in relevant circumstances, to court approval), change of name, authorization of a plan of merger or consolidation or voluntary winding up of the company.<br>The Cayman Companies Act requires that a special resolution be passed by a super majority of two-thirds or such higher percentage as set forth in the articles of association, of shareholders being entitled to vote and do vote in person or by proxy at a general meeting, or by unanimous written consent of shareholders. |
|  Voting for Directors | Under Delaware law, unless otherwise specified in the certificate of incorporation or bylaws of the corporation, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. | The Cayman Companies Act defines "special resolutions" only. A company's articles of association can therefore tailor the definition of "ordinary resolutions" as a whole, or with respect to specific provisions. Our articles of association provide that with respect to the election of directors, an ordinary resolution shall be passed by |

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|  | **Delaware** | **Cayman Islands** |
|  |  | a majority of the votes cast by such members as being entitled to vote in person or by proxy. |
|  Cumulative Voting | No cumulative voting for the election of directors unless so provided in the certificate of incorporation. | No cumulative voting for the election of directors unless so provided in the articles of association. |
|  Directors' Powers<br>Regarding Bylaws | The certificate of incorporation may grant the directors the power to adopt, amend, or repeal bylaws. | The memorandum and articles of association may only be amended by a special resolution of the shareholders. |
|  Nomination and Removal of Directors and Filling Vacancies on Board | Shareholders may generally nominate directors if they comply with advance notice provisions and other procedural requirements in company bylaws. Holders of a majority of the shares may remove a director with or without cause, except in certain cases involving a classified board or if the company uses cumulative voting. Unless otherwise provided for in the certificate of incorporation, directorship vacancies are filled by a majority of the directors elected or then in office. | Election and removal of directors and filling of board vacancies are governed by the terms of the articles of association. Our articles of association provide that our directors shall be divided into three classes each serving a three year term. The shareholders shall elect directors of the relevant class by ordinary resolution at each annual general meeting. Our articles of association also provide that shareholders may only remove directors for cause and with a special resolution of two-thirds. Under our articles of association and subject to the Registration Rights Agreement, vacancies on the board are generally filled by the vote of a majority of the directors elected or then in office. |
|  Mergers and Similar Arrangements | Under Delaware law, with certain exceptions, a merger, consolidation, exchange or sale of all or substantially all the assets of a corporation must be approved by the board of directors and a majority of the outstanding shares entitled to vote thereon. Under Delaware law, a shareholder of a corporation participating in certain major corporate transactions may, under certain circumstances, be entitled to appraisal rights pursuant to which such shareholder may receive cash in the amount of the fair value of the shares held by such shareholder (as determined by a court) in lieu of the consideration such shareholder would otherwise receive in the transaction.<br>Delaware law also provides that a parent corporation, by resolution of its board of directors, may merge with | The Cayman Companies Act provides for mergers and consolidations where two or more companies are being formed into a single entity. The legislation makes a distinction between a "consolidation" and a "merger." In a consolidation, a new entity is formed from the combination of each participating company, and the separate consolidating parties, as a consequence, cease to exist and are each stricken by the Registrar of Companies. In a merger, one company remains as the surviving entity, having in effect absorbed the other merging parties that are then stricken and cease to exist.<br>Two or more Cayman-registered companies may merge or consolidate. Cayman-registered companies may |

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| **Delaware** | **Cayman Islands** |
| any subsidiary, of which it owns at least 51% of each class of capital stock without a vote by shareholders of such subsidiary. Upon any such merger, dissenting shareholders do not have appraisal rights if (1) the merger consideration received for the shares consists solely of stock of the surviving company that is listed on a national securities exchange or held of record by more than 2,000 holders, (2) in cash in lieu of fraction shares or (3) any combination of (1) and (2). | also merge or consolidate with foreign companies provided that the laws of<br> the foreign jurisdiction permit such merger or consolidation.<br>Under the Cayman Companies Act, a plan of merger or consolidation shall be authorized by each constituent company by way of (i) a special resolution of the members of each such constituent company; and (ii) such other authorization, if any, as may be specified in such constituent company's articles of association.<br>Shareholder approval is not required where a parent company registered in the Cayman Islands seeks to merge with one or more of its subsidiaries registered in the Cayman Islands and a copy of the plan of merger is given to every member of each subsidiary company to be merged unless that member agrees otherwise.<br>Where the merger or consolidation involves a foreign company, the procedure is similar, save that with respect to the foreign company, the director of the Cayman Islands company is required to make a declaration to the effect that, having made due enquiry, he is of the opinion that the requirements set out below have been met: (i) that the merger or consolidation is permitted or not prohibited by the constitutional documents of the foreign company and by the laws of the jurisdiction in which the foreign company is incorporated, and that those laws and any requirements of those constitutional documents have been or will be complied with; (ii) that no petition or other similar proceeding has been filed and remains outstanding or order made or resolution adopted to wind up or liquidate the foreign company in any jurisdictions; (iii) that no receiver, trustee, administrator, or other similar person has been appointed in any jurisdiction and is acting in respect of |

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| **Delaware** | **Cayman Islands** |
|  | the foreign company, its affairs or its property or any part thereof; (iv) that no scheme, order, compromise, or other similar arrangement has been entered into or made in any jurisdiction whereby the rights of creditors of the foreign company are and continue to be suspended or restricted.<br>Where the surviving company is the Cayman Islands company, the director of the Cayman Islands company is further required to make a declaration to the effect that, having made due enquiry, he is of the opinion that the requirements set out below have been met: (i) that the foreign company is able to pay its debts as they fall due and that the merger or consolidated is bona fide and not intended to defraud unsecured creditors of the foreign company; (ii) that in respect of the transfer of any security interest granted by the foreign company to the surviving or consolidated company (a) consent or approval to the transfer has been obtained, released or waived; (b) the transfer is permitted by and has been approved in accordance with the constitutional documents of the foreign company; and (c) the laws of the jurisdiction of the foreign company with respect to the transfer have been or will be complied with; (iii) that the foreign company will, upon the merger or consolidation becoming effective, cease to be incorporated, registered or exist under the laws of the relevant foreign jurisdiction; and (iv) that there is no other reason why it would be against the public interest to permit the merger or consolidation.<br>Secured creditors must consent to the merger although application can be made to the Grand Court of the Cayman Islands to proceed if such secured creditor does not grant its consent to the merger. Where a foreign company wishes to merge with a Cayman company, consent or approval |

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| **Delaware** | **Cayman Islands** |
|  | to the transfer of any security interest granted by the foreign company to the resulting Cayman entity in the transaction is required, unless otherwise released or waived by the secured party. If the merger plan is approved, it is then filed with the Cayman Islands General Registry along with a declaration by a director of each company. The Registrar of Companies will then issue a certificate of merger which shall be prima facie evidence of compliance with all requirements of the Cayman Companies Act in respect of the merger or consolidation. The surviving entity remains active while the other company or companies are automatically dissolved. Where the above procedures are adopted, the Cayman Companies Act provides for a right of dissenting shareholders to be paid a payment of the fair value of his shares upon their dissenting to the merger or consolidation if they follow a prescribed procedure.<br>Cayman companies may also be restructured or amalgamated under supervision of the Grand Court of the Cayman Islands by way of a "scheme of arrangement." This option is not used with any frequency because a business transaction can be achieved through other means, such as a share capital exchange, merger (as described above), asset acquisition or control, through contractual arrangements, of an operating business. In the event that a business transaction is sought pursuant to a scheme of arrangement it would require the approval of a majority, in number, of each class of shareholders and creditors with whom the arrangement is to be made and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a |

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| **Delaware** | **Cayman Islands** |
|  | meeting, or meeting summoned for that purpose.<br>The convening of the meetings and subsequently the terms of the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder would have the right to express to the Court the view that the transaction ought not be approved, the Court can be expected to approve the arrangement if it satisfies itself that:<br>the company is not proposing to act illegally or beyond the scope of its authority and the statutory provisions as to majority vote have been complied with;<br>the shareholders and creditors (as applicable) have been fairly represented at the meeting in question; and<br>the arrangement is such as a businessman would reasonably approve; and the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Companies Act or that would amount to a "fraud on the minority" (a legal concept, different than "fraud" in the sense of dishonesty).<br>When a takeover offer is made and accepted by holders of 90% of the shares to whom the offer is made within four months, the offeror may, within a two-month period, compulsorily require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection may be made to the Grand Court of the Cayman Islands by any dissenting shareholder but is unlikely to succeed unless there is evidence of fraud, bad faith or collusion.<br>If the arrangement and reconstruction are thus approved, any dissenting shareholders would have no rights |

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|  | **Delaware** | **Cayman Islands** |
|  |  | comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of United States corporations, providing rights to receive payment in cash for the judicially determined value of the shares.<br>|
|  Shareholder Suits | Class actions and derivative actions generally are available to shareholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In such actions, the court generally has discretion to permit the winning party to recover attorneys' fees incurred in connection with such action. | The rights of shareholders under Cayman Islands law are not as extensive as those under Delaware law. Class actions are generally not available to shareholders under Cayman Islands laws and our Cayman Islands counsel is not aware of a significant number of such reported actions having been brought in Cayman Islands courts. Derivative actions have been brought in the Cayman Islands courts and the Cayman Islands courts have confirmed the availability for such actions. In principle, we will normally be the proper plaintiff in any claim based on a breach of duty owed to us and a claim against (for example) our officers and directors usually may not be brought by a shareholder. However, the Cayman Islands courts would ordinarily be expected to follow English case law precedent, which would permit a shareholder to commence an action in the company's name to remedy a wrong done to it where the act complained of is alleged to be beyond the company's corporate power or is illegal or would result in the violation of its memorandum of association or articles of association or where the individual rights of the plaintiff shareholder have been infringed or are about to be infringed. Furthermore, consideration would be given by the court to acts that are alleged to constitute a "fraud on the minority" or where an act requires the approval of a greater percentage of shareholders than actually approved it. The winning party in such an action generally would be able to recover a |

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|  | **Delaware** | **Cayman Islands** |
|  |  | portion of attorney's fees incurred in connection with such action. |
|  Inspection of Corporate Records | Under Delaware law, shareholders of a Delaware corporation have the right during normal business hours to inspect for any proper purpose, and to obtain copies of list(s) of shareholders and other books and records of the corporation and its subsidiaries, if any, to the extent the books and records of such subsidiaries are available to the corporation. | Shareholders of a Cayman Islands exempted company have no general right under Cayman Islands law to inspect or obtain copies of a list of shareholders or other corporate records of the company (other than copies of the memorandum and articles of association and any special resolutions passed by such company, and the registers of mortgages and charges of such company). However, these rights may be provided in the company's articles of association. |
|  Shareholder Proposals | Unless provided in the corporation's certificate of incorporation or bylaws, Delaware law does not include a provision restricting the manner in which shareholders may bring business before a meeting. | The Cayman Companies Act does not provide shareholders any right to bring business before a meeting or requisition a general meeting. However, these rights may be provided in the company's articles of association.<br>Our articles of association establish advance notice procedures with respect to shareholder proposals and the nomination of candidates for election as directors, other than nominations pursuant to the Registration Rights Agreement. Shareholders at a general meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of our board or by a shareholder who was a shareholder of record on both the record date for the meeting and the date of giving the notice of such business, who is entitled to vote at the meeting and who has given timely written notice, in proper form, of the shareholder's intention to bring that business before the meeting. Although our articles of association will not give our board the power to approve or disapprove shareholder nominations of candidates or proposals regarding other business to be conducted at a general meeting, our articles of association may have the effect of |

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|  | **Delaware** | **Cayman Islands** |
|  |  | precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company. |
|  Approval of Corporate Matters by Written Consent | Delaware law permits shareholders to take action by written consent signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting of shareholders. | The Cayman Companies Act allows a special resolution to be passed in writing if signed by all the voting shareholders and authorized by the articles of association.<br>Our articles of association authorize such written consents but we believe that the unanimity requirement will make this option impractical after the consummation of this offering. |
|  Calling of Special Shareholders Meetings | Delaware law permits the board of directors or any person who is authorized under a corporation's certificate of incorporation or bylaws to call a special meeting of shareholders. | The Cayman Companies Act does not have provisions governing the proceedings of shareholders meetings which are usually provided in the articles of association.<br>Our articles of association do not allow shareholders to call extraordinary general meetings. Extraordinary general meetings may only be called by a majority of the directors on our board or by the chairman of our board. |

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our Class A common shares, and there can be no assurance that a significant public market for our Class A common shares will develop or be sustained after this offering. Future sales of substantial amounts of our Class A common shares in the public market (including securities convertible into or redeemable, exchangeable or exercisable for Class A common shares) or the perception that such sales may occur, or the availability of such shares for sale in the public market after this offering could adversely affect the prevailing market price of our Class A common shares. Furthermore, because substantially all of our Class A common shares and Class B common shares outstanding prior to the completion of this offering (including securities convertible into or redeemable, exchangeable, or exercisable for our Class A common shares or Class B common shares) will be subject to the contractual and legal restrictions on resale described below, the sale of a substantial amount of Class A common shares in the public market after these restrictions lapse could materially adversely affect the prevailing market price of our Class A common shares and our ability to raise equity capital in the future.

Upon the completion of this offering, we expect to have Class A common shares outstanding and Class B common shares outstanding, assuming the conversion of all outstanding Accelerant Holdings preference shares into an aggregate of Class A common shares and Class B common shares immediately upon the closing of this offering and no exercise of outstanding options, a -for-1 share subdivision, which became effective , 2025 and assuming that the underwriters have not exercised their option to purchase additional Class A common shares.

All of the Class A common shares sold in this offering will be freely transferable without restriction or further registration under the Securities Act by persons other than "affiliates," as that term is defined in Rule 144 under the Securities Act, except that any Class A common shares purchased by our directors will be subject to the lock-up agreements described below.

Generally, the balance of our outstanding Class A common shares will be deemed "restricted securities" within the meaning of Rule 144 under the Securities Act, subject to the limitations and restrictions that are described below. Class A common shares purchased by our affiliates or by our directors, officers and employees in the directed share program will be "restricted securities" under Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which rules are summarized below.

As a result of the lock-up and market standoff agreements described below and the provisions of our Registration Rights Agreement described in the section titled "Description of Share Capital—Registration Rights," and subject to the provisions of Rule 144 or Rule 701, Class A common shares will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this prospectus, all     Class A common shares sold in this
offering will be immediately available for sale in the public market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning 180 days after the date of this prospectus,    additional Class A
common shares may become eligible for sale in the public market upon the satisfaction of certain conditions as set forth in the section titled "—Lock-Up Agreements," of
which     shares would be held by affiliates and subject to the volume and other restrictions of Rule 144, as described below.

Upon the expiration of the lock-up agreements described below, 180 days after the date of this prospectus, and subject to the provisions of Rule 144, an additional Class A common shares, including Class A common shares issuable upon the conversion of our outstanding Class B common shares will be available for sale in the public market. The sale of these restricted securities is subject, in the case of shares held by affiliates, to the volume restrictions contained in those rules.

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**Lock-up Agreements** 

We, the Selling Shareholder, and all of our directors and executive officers, and certain holders of our Class A common shares and securities exercisable for or convertible into our Class A common shares (including our Class B common shares) outstanding immediately on the closing of this offering, have agreed that, without the prior written consent of Morgan Stanley & Co. LLC, we and they will not, subject to limited exceptions, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale, or otherwise dispose of or hedge any of our Class A common shares, any options, or any securities convertible into, or exchangeable for or that represent the right to receive our Class A common shares for a period of 180 days after the date of this prospectus. Certain of our executive officers and employees have pledged their Class A common shares to lenders as collateral for lending facilities. A total of Class A common shares, or % of our outstanding Class A common shares are subject to such agreements. The lock-up restrictions and specified exemptions are described in more detail under "Underwriting."

In addition to the restrictions contained in the lock-up agreements described above, we have entered into agreements with certain security holders, including our Registration Rights Agreement, that contain or will contain market stand-off provisions imposing restrictions on the ability of such security holders to offer, sell, or transfer our equity securities for a period of 180 days following the date of this prospectus.

**Rule 144** 

In general, under Rule 144 as in effect on the date of this prospectus, beginning 90 days after the completion of this offering, a person (or persons whose Class A common shares are required to be aggregated) who is an affiliate and who has beneficially owned our Class A common shares for at least six months is entitled to sell in any three-month period a number of Class A common shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of our Class A common shares then outstanding, which will equal approximately
    Class A common shares immediately after completion of this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume in our Class A common shares on the NYSE during the four calendar weeks
preceding the filing of a notice on Form 144 with respect to such a sale.

Sales by our affiliates under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us. An "affiliate" is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, an issuer.

Under Rule 144, a person (or persons whose shares are aggregated) who is not deemed to have been an affiliate of ours at any time during the 90 days preceding a sale, and who has beneficially owned the shares proposed to be sold for at least six months (including the holding period of any prior owner other than an affiliate), would be entitled to sell those shares subject only to availability of current public information about us, and after beneficially owning such shares for at least 12 months, would be entitled to sell an unlimited number of shares without restriction. To the extent that our affiliates sell their Class A common shares, other than pursuant to Rule 144 or a registration statement, the purchaser's holding period for the purpose of effecting a sale under Rule 144 commences on the date of transfer from the affiliate.

**Rule 701** 

In general, under Rule 701 as in effect on the date of this prospectus, any of our employees, directors, officers, consultants, or advisors who purchased Class A common shares from us in reliance on Rule 701 in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering, or who purchased Class A common shares from us after that date upon the exercise of options granted before that date, are eligible to resell such Class A common shares 90 days after the effective date of this offering in reliance upon Rule 144. If such person is not an affiliate, such sale may be made subject only to current public information provisions of Rule 144. If such a person is an affiliate, such sale may be made under Rule 144 without compliance with the holding period requirement, but subject to the other Rule 144 restrictions described above.

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**Stock Plans** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register all Class A common shares issued or issuable under our equity incentive plans. Any such Form S-8 registration statements will automatically become effective upon filing. Accordingly, Class A common shares registered under such registration statements will be available for sale in the open market following the expiration of the applicable lock-up period. We expect that the initial registration statement on Form S-8 will cover approximately Class A common shares. Class A common shares issued under our equity incentive plans after the effective date of the applicable Form S-8 registration statement will be eligible for resale in the public market without restriction, subject to Rule 144 limitations applicable to affiliates and the lock-up agreements described above. See "Executive Compensation—Equity Compensation Plans and Other Benefit Plans" for a description of our equity compensation plans.

**Registration Rights** 

Following this offering, some of our Class B shareholders will, under some circumstances, have the right to require us to register their shares for future sale. See "Certain Relationships and Related-Party Transactions—Registration Rights Agreement" and "Description of Share Capital—Registration Rights." If the offer and sale of these Class A common shares are registered, the Class A common shares will be freely tradable without restriction under the Securities Act, subject to the Rule 144 limitations applicable to affiliates, and a large number of Class A common shares may be sold into the public market.

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**CERTAIN MATERIAL TAX CONSIDERATIONS** 

**U.S. Federal Income Tax Considerations** 

The following is a general discussion of the material U.S. federal income tax considerations relating to the ownership and disposition of our Class A common shares purchased in this offering. Statements herein regarding the beliefs, expectations and intentions of Accelerant and its subsidiaries represent the view of management and do not represent the opinions of counsel. The discussion is based on the Code, U.S. Treasury regulations, judicial decisions and administrative pronouncements, all as currently in effect. Such authorities are subject to change, possibly with retroactive effect. Any such change could result in U.S. federal income tax consequences that are materially different from those described below. Moreover, any change after this offering in any of the factual matters set forth in this prospectus or in the conduct, practices or activities of Accelerant and its subsidiaries may affect the considerations discussed below. We are under no obligation to update the discussion to reflect future changes in law or changes in any of the foregoing factual matters that may later come to our attention.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to all prospective investors, some of which, such as dealers in securities, banks, thrifts or other financial institutions, insurance companies, regulated investment companies, tax-exempt organizations, U.S. expatriates, persons that hold our Class A common shares as part of a straddle, conversion transaction or hedge, persons deemed to sell our Class A common shares under the constructive sale provisions of the Code, investors that are subject to the alternative minimum tax, investors whose functional currency is not the U.S. dollar, investors that are treated as partnerships for U.S. federal income tax purposes, investors that are treated as S corporations for U.S. federal income tax purposes, investors that are subject to section 451(b) of the Code, investors that are not the beneficial owners of our Class A common shares, and investors that own, actually or under applicable constructive ownership rules, 10% or more of our Class A common shares, may be subject to special rules. This discussion deals only with holders who purchase our Class A common shares in connection with this offering and hold our Class A common shares as a capital asset (within the meaning of Section 1221 of the Code). If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common shares, the U.S. federal income tax treatment of a partner of the partnership will depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership holding Class A common shares, you are urged to consult your tax advisor regarding the consequences to you of the partnership's ownership and disposition of our Class A common shares.

This discussion does not address any U.S. federal tax laws other than the U.S. federal income tax laws and laws governing excise tax on insurance and reinsurance premiums, any U.S. state or local tax laws or any non-U.S. tax laws. You are encouraged to consult your tax advisors concerning the overall tax consequences arising in your own particular situation under U.S. federal, state, local and non-U.S. laws from the ownership and disposition of our Class A common shares. The conclusions expressed in the discussion below are not binding on the IRS or any court, and there is no assurance that the IRS or a court would not reach a contrary conclusion. No ruling has been or will be sought from the IRS regarding any matter discussed in this prospectus.

***Taxation of Accelerant and Its Subsidiaries***

In general, a non-U.S. corporation is subject to U.S. federal income tax on its taxable income which is effectively connected with the conduct of a trade or business in the United States, including a branch profits tax based upon its after-tax effectively connected earnings and profits, with certain adjustments. Accelerant and its non-U.S. subsidiaries intend to limit their U.S. activities so that they are not considered to be engaged in a U.S. trade or business. No definitive standards, however, are provided by the Code, U.S. Treasury regulations or court decisions regarding when a foreign corporation is engaged in the conduct of a U.S. trade or business. Because the law is unclear, and the determination is highly factual and must be made annually, there can be no assurance that the IRS will not contend that Accelerant or any its non-U.S. subsidiaries treated as a corporation for U.S. federal income tax purposes is engaged in a U.S. trade or business. If any such entity were found to be so engaged, it

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would be subject to U.S. federal income tax on income effectively connected with the conduct of such a U.S. trade or business at regular corporate rates (currently 21%), and it may be subject to a 30% branch profits tax on its after-tax effectively connected earnings and profits. A non-U.S. corporation is generally entitled to deductions and credits only if it timely files a U.S. federal income tax return. Accelerant and certain of its non-U.S. subsidiaries have in the past filed, and intend to continue to file, such returns on a protective basis for each tax year. It is possible that a tax treaty could mitigate certain of the foregoing tax consequences to the extent that a non-U.S. subsidiary does not have business profits attributable to a permanent establishment in the United States. However, no assurances can be provided that benefits under any such treaty will be available.

Accelerant's U.S. corporate subsidiaries will generally be subject to U.S. federal income tax at regular corporate rates (currently 21%).

**Net Investment Income** 

Non-U.S. insurance companies carrying on an insurance business within the United States are treated under the Code as having a certain minimum amount of effectively connected net investment income, determined in accordance with a formula that depends, in part, on the amount of U.S. risk insured or reinsured by such companies. If, contrary to our intention, a Non-U.S. Carrier is considered to be engaged in the conduct of an insurance business in the United States and is not entitled to benefits under an applicable tax treaty, a significant portion of such Non-U.S. Carrier's investment income could be subject to U.S. federal income tax.

**Withholding Tax** 

Non-U.S. corporations not engaged in a trade or business in the United States generally are subject to a 30% U.S. federal income tax (imposed on a gross basis and generally collected by withholding) on certain "fixed or determinable annual or periodical gains, profits and income" from sources within the United States. Such income includes amounts treated as dividends from U.S. corporations and certain interest on investments but does not include insurance premiums paid with respect to a contract that is subject to the excise tax described below. We believe that we and the entities through which we hold our U.S. subsidiaries are eligible for a 5% rate of withholding on dividends under the U.S.-UK Tax Treaty unless we have owned shares representing at least 80% of the voting power of a U.S. subsidiary paying a dividend for the 12-month period ending on the date the dividend was declared, in which case there would be no U.S. withholding on such dividend under the U.S.-UK Tax Treaty. We intend to manage our affairs in a manner that is intended to allow such entities to qualify for such reduction in or exemption from U.S. withholding tax under the U.S.-UK Tax Treaty. However, no assurances can be made that (i) we will qualify for benefits under the U.S.-UK Tax Treaty, (ii) the U.S.-UK Tax Treaty will provide relief from this potential withholding tax or (iii) we would qualify for similar relief under another tax treaty if benefits under the U.S.-UK Tax Treaty were unavailable, in each case, for a taxable year that includes a distribution from our U.S. subsidiaries. We may therefore be limited in our ability to move cash efficiently from our U.S. subsidiaries or to make distributions with respect to our Class A common shares.

**Excise Tax** 

The United States imposes an excise tax on insurance and reinsurance premiums paid to non-U.S. insurers or reinsurers with respect to risks located in the United States. The applicable tax rates are 4% for P&C premiums and 1% for reinsurance premiums. The person who pays the premium to the non-U.S. insurer or reinsurer is customarily responsible for the excise tax. If, however, the tax is not paid by the purchaser of the insurance or reinsurance, the non-U.S. insurer may be held liable for the tax. Accordingly, if our Non-U.S. Carriers insure or reinsure U.S. risks, and their counterparty were not to pay this excise tax, our Non-U.S. Carriers could be held liable for it.

**The Base Erosion and Anti-Abuse Tax** 

The BEAT is a tax imposed on certain U.S. companies that make deductible payments to related non-U.S. companies. The BEAT is generally equal to the excess of a 10% tax on the taxpayer's "modified taxable income"

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over the taxpayer's regular tax liability (reduced by certain credits), with "modified taxable income" being computed without regard to certain deductions for "base erosion payments". The tax on "modified taxable income" also increases from 10% to 12.5% for taxable years beginning after 2025. The BEAT applies to deductions arising out of "any premium or other consideration" paid or accrued to a related foreign reinsurer. Both our U.S. and non-U.S. ceding companies reinsure business to Accelerant affiliates. We have structured our internal reinsurance in a manner intended to ensure that Accelerant Re Cayman (our non-U.S. reinsurer) reinsures business only from other non-U.S. ceding companies for U.S. federal income tax purposes. There can be no assurances our structuring efforts will be successful. If we are not able to structure our internal reinsurance in this manner, or the IRS were to successfully assert that Accelerant Re Cayman reinsures our U.S. ceding companies for U.S. federal income tax purposes, we could be required to pay additional tax.

**Recharacterization of Tax Items** 

Under Section 845 of the Code, the IRS may allocate income, deductions, assets, reserves, credits and any other items related to a reinsurance agreement among certain related parties, recharacterize such items, or make any other adjustment, in order to reflect the proper source, character or amount of the items for each party. In addition, if a reinsurance contract has a significant tax avoidance effect on any party to the contract, the IRS may make adjustments with respect to such party to eliminate the tax avoidance effect. No regulations have been issued under Section 845 of the Code. Accordingly, the application of such provisions to our operations is uncertain, and we cannot predict what effect, if any, such provisions may have on our subsidiaries.

***Taxation of U.S. Holders***

For purposes of this discussion, you are a "U.S. Holder" if, for U.S. federal income tax purposes, you are treated as a beneficial owner of our Class A common shares and you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a citizen or individual resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or
organized in or under the laws of the United States, any state therein or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust if either (1) a court within the United States is able to exercise primary jurisdiction over the
administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable Treasury regulations to be treated as a "United
States person" (as defined in Section 7701(a)(30) of the Code).

**Taxation of Distributions** 

As discussed above under "Dividend Policy", we do not expect to make distributions on our Class A common shares in the near future. In the event that we do make distributions of cash or other property, subject to the discussions below relating to the potential application of the PFIC, CFC and RPII provisions, distributions on our Class A common shares will constitute "dividends" for U.S. federal income tax purposes to the extent paid out of Accelerant's current or accumulated earnings and profits (each as determined under U.S. federal income tax principles). To the extent that distributions on our Class A common shares exceed Accelerant's earnings and profits, the distributions will be treated as a tax-free return of capital that will reduce (but not below zero) your tax basis in the Class A common shares and thereafter as capital gain from the sale or exchange of our Class A common shares. Accelerant's earnings and profits generally will not include the earnings and profits of its subsidiaries until such amounts are distributed to Accelerant.

Dividends paid with respect to our Class A common shares to a U.S. Holder that is treated for U.S. federal income tax purposes as an individual, a trust or an estate (a "non-corporate U.S. Holder") will be treated as "qualified dividend income" taxed at the preferential rates applicable to long-term capital gain if (i) our Class A

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common shares are readily tradable on an established securities market in the United States (such as the NYSE, on which we expect our Class A common shares to be traded) or we qualify for benefits under the U.S.-UK Tax Treaty, (ii) Accelerant is not a PFIC for the taxable year during which the dividend is paid and was not a PFIC for the immediately preceding taxable year, (iii) the U.S. Holder owns the Class A common shares for more than 60 days in the 121-day period beginning 60 days before the date on which the Class A common shares become ex-dividend (and does not enter into certain risk-limiting transactions with respect to the Class A common shares), (iv) the U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related property, and (v) the U.S. Holder does not take the dividends into account as investment income for purposes of deducting investment interest. Dividends you receive from Accelerant that are not treated as "qualified dividend income" will be taxed at ordinary income rates.

Special rules may apply to any "extraordinary dividend." Generally, a dividend with respect to a Class A common share will be an extraordinary dividend if the amount of such dividend equals or exceeds 10% of your adjusted tax basis (or fair market value in certain circumstances) in such common share (subject to certain aggregation rules). In addition, extraordinary dividends include dividends received within a one-year period that, in the aggregate, equal or exceed 20% of your adjusted tax basis (or fair market value). If you receive an extraordinary dividend on a Class A common share that is treated as qualified dividend income and you are a non-corporate U.S. Holder, then any loss recognized by you from a subsequent sale or exchange of such Class A common share will be treated as a long-term capital loss to the extent of such dividend.

Dividends paid with respect to our Class A common shares to a non-corporate U.S. Holder may also be subject to an additional 3.8% tax on net investment income, described below.

**Passive Foreign Investment Company Rules** 

In general, a non-U.S. corporation will be a PFIC during a taxable year if (i) 75% or more of its gross income constitutes passive income or (ii) 50% or more of its assets produce, or are held for the production of, passive income. For these purposes, passive income generally includes interest, dividends and other investment income. However, under the Insurance Exception, income derived in the active conduct of an insurance business by a "qualifying insurance corporation" is not treated as passive income. In addition, passive income does not include income of a QDIC. The PFIC provisions also contain a look-through rule under which a non-U.S. corporation will be treated as if it received directly its proportionate share of the income, and held its proportionate share of the assets, of another corporation if it owns at least 25% of the value of the stock of such other corporation. Accelerant does not expect to be considered a PFIC for the current taxable year or any subsequent taxable year. However, because this determination is made annually at the end of each taxable year and is dependent on a number of factors, there can be no assurance that Accelerant will not be a PFIC in any taxable year. Moreover, our Non-U.S. Carriers will need to be considered engaged in the active conduct of an insurance business and have applicable insurance liabilities that exceed a certain percentage of their total assets to qualify for the Insurance Exception, among other requirements. It is possible that a Non-U.S. Carrier does not satisfy such requirements in a given taxable year, in which case such Non-U.S. Carrier may be treated as a PFIC and the PFIC status of Accelerant could be adversely affected as a result.

If Accelerant is characterized as a PFIC for a taxable year, a U.S. Holder that receives an "excess distribution" on our Class A common shares or recognizes a gain on the disposition of our Class A common shares generally will determine its U.S. federal income tax on such amounts by (1) allocating the excess distribution or gain ratably to each day in the U.S. Holder's holding period for the Class A common shares, (2) including in gross income as ordinary income for the current year the amounts allocated to the current year or to years before Accelerant became a PFIC, and (3) increasing the current year's tax by the "deferred tax amount," which is determined by multiplying the amounts allocated to each of the other taxable years by the highest rate of tax in effect for such taxable year (for the applicable class of taxpayers) to calculate the increases in taxes for each prior year, calculating an interest charge (at the rate applicable to underpayments of U.S. federal income tax for the relevant period) for the deemed deferral of such taxes from each prior year to the current year, and

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combining such increases in taxes and interest charges. In general, a U.S. person that owns shares in a PFIC is treated as receiving an "excess distribution" from the PFIC if the distributions received by the U.S. person with respect to such shares in a taxable year exceed 125% of the average annual distributions received by the U.S. person in the three preceding taxable years (or, if shorter, the U.S. person's holding period for the shares). Accordingly, if Accelerant were a PFIC or, with respect to a particular U.S. Holder, were treated as a PFIC for the taxable year in which we paid a dividend or for the prior taxable year, the preferential dividend rates discussed above applicable to "qualified dividend income" paid to certain non-corporate U.S. Holders would not apply. In addition, a U.S. Holder would be treated as owning a proportionate amount of any shares Accelerant owns, directly or indirectly by application of certain attribution rules, in other PFICs (including the Non-U.S. Carriers if they do not qualify for the Insurance Exception and are treated as PFICs) and would be subject to the PFIC rules on a separate basis with respect to its indirect interests in any such PFICs.

In the event that Accelerant is characterized as a PFIC, a U.S. Holder may be able to mitigate certain of the negative tax consequences described above if the U.S. Holder makes a "qualified electing fund" election or "mark-to-market" election with respect to the Class A common shares. A "qualified electing fund" election would generally be expected to subject an electing U.S. Holder to tax on a current basis with respect such U.S. Holder's pro rata share of Accelerant's ordinary earnings and net capital gain regardless of whether Accelerant makes any distributions. In addition, an electing U.S. Holder's basis in its Class A common shares generally would increase to reflect the tax on undistributed income, and subsequent distributions of previously taxed income would first reduce such U.S. Holder's basis in its Class A common shares and would not be subject to tax to the extent of such basis. However, such election may itself have negative tax consequences to a U.S. Holder. If a PFIC realizes a net loss in a particular year, under the "qualified electing fund" rules, that loss will not pass through to the U.S. Holder nor will it be netted against the income of any other PFIC with respect to which a "qualified electing fund" election has been made. Moreover, the loss also cannot be carried forward to offset income of the PFIC in subsequent years. In addition, if a U.S. Holder makes a "qualified electing fund" election with respect to Accelerant and some or all of its lower-tier PFICs, a U.S. Holder will not be entitled to offset losses of Accelerant against income or gain of any lower-tier PFIC or losses of a lower-tier PFIC against income or gain of Accelerant or other lower-tier PFICs. U.S. Holders should consult with their tax advisors regarding the availability and advisability of such elections (including a retroactive "qualified electing fund" election). Further, there is no assurance that we will provide information necessary for U.S. Holders to make "qualified electing fund" elections.

In lieu of making a "qualified electing fund" election, a U.S. Holder may be able to mitigate certain of the negative tax consequences described above if the U.S. Holder makes a "mark-to-market" election with respect to the Class A common shares, provided that the Class A common shares are "regularly traded" on a "qualified exchange." In general, the Class A common shares would be treated as "regularly traded" for the year of this offering if more than a de minimis quantity of our Class A common shares were traded on a qualified exchange on one-sixth of the days remaining in the calendar quarter in which this offering occurs and on at least 15 days during each remaining calendar quarter. The NYSE, on which our Class A common shares are expected to be listed, is a qualified exchange for this purpose. Once made, the election cannot be revoked without the consent of the IRS unless the shares cease to be regularly traded on a qualified exchange. If a U.S. Holder makes the mark-to-market election, such U.S. Holder will generally recognize as ordinary income any excess of the fair market value of such U.S. Holder's Class A common shares at the end of each taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis of the Class A common shares over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). If a U.S. Holder makes the election, such U.S. Holder's tax basis in its Class A common shares will be adjusted to reflect these income or loss amounts. Any gain recognized on the sale or other disposition of our Class A common shares in a year when Accelerant is a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). This election cannot be made with respect to any of our non-U.S. subsidiaries that are PFICs, if any. Accordingly, a

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U.S. Holder may continue to be subject to tax under the PFIC excess distribution rules with respect to any lower-tier PFICs notwithstanding a mark-to-market election for our Class A common shares.

In addition, a U.S. Holder may be required to comply with other reporting requirements, regardless of the number of shares held, and whether or not a "qualified electing fund" or "mark-to-market" election is made.

The PFIC rules could have a material adverse effect on the taxation of U.S. Holders, and U.S. Holders are therefore urged to consult their own tax advisors about the application of the PFIC rules, the advisability and availability of any elections (including a retroactive qualified electing fund election), and the additional reporting requirements described below.

**Controlled Foreign Corporation Considerations** 

Each 10% U.S. Shareholder of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's subpart F income and tested income (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) on the last day in the non-U.S. corporation's taxable year on which it is a CFC, even if the subpart F income or tested income is not distributed. A "10% U.S. Shareholder" generally is a U.S. person that owns (directly, indirectly through non-U.S. entities or by attribution by application of the constructive ownership rules of section 958(b) of Code (i.e., "constructively")) at least 10% of the total combined voting power or value of all classes of stock of a non-U.S. corporation. Subpart F income of a CFC generally includes "foreign personal holding company income" (such as interest, dividends and other types of passive income), as well as insurance and reinsurance income (including underwriting and investment income), and tested income is generally any income of the CFC other than subpart F income and certain other categories of income. An entity treated as a foreign corporation for U.S. federal income tax purposes is generally considered a CFC if 10% U.S. Shareholders own (directly, indirectly through non-U.S. entities or constructively), in the aggregate, more than 50% of the total combined voting power of all classes of stock of that non-U.S. corporation or more than 50% of the total value of all stock of that non-U.S. corporation. However, for purposes of taking into account insurance income, these 50% thresholds are generally reduced to 25%. Further, special rules apply for purposes of taking into account any RPII of a non-U.S. corporation, as described below.

Whether Accelerant is a CFC for a taxable year will depend upon facts regarding our direct and indirect shareholders, about which we have limited information. Accordingly, no assurance can be provided that Accelerant will not be a CFC. Further, regardless of whether Accelerant is a CFC, most or all of our non-U.S. subsidiaries (to the extent treated as corporations for U.S. federal income tax purposes) are generally treated as CFCs because our U.S. subsidiaries generally are treated as constructively owning the stock of our non-U.S. subsidiaries. Accordingly, any 10% U.S. Shareholders of Accelerant may be required to include in gross income for U.S. federal income tax purposes for each taxable year their pro rata shares of all or a portion of the subpart F income and tested income generated by our non-U.S. subsidiaries (with various adjustments), regardless of whether any distributions are made to them.

If Accelerant or a non-U.S. subsidiary is a CFC, the rules relating to PFICs discussed above generally would not apply to a 10% U.S. Shareholder of Accelerant or such subsidiary, respectively.

Each prospective U.S. Holder should consult its own tax advisor to determine whether its ownership of Class A common shares will cause it to become a 10% U.S. Shareholder with respect to Accelerant or its non-U.S. subsidiaries, and the effect of such a classification.

**Related Person Insurance Income Considerations** 

Special rules apply with respect to a CFC that earns RPII. For purposes of taking into account RPII, an entity treated as a foreign corporation for U.S. federal income tax purposes will be considered a CFC (a "RPII

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CFC") if, on any day of its taxable year, U.S. persons who own any of its stock (directly or indirectly through certain entities, each such person, a "RPII Shareholder") in the aggregate own (directly, indirectly through certain entities or constructively) 25% or more of the total combined voting power of all classes of its voting stock, or 25% or more of the total value of all of its stock.

The RPII of a RPII CFC is certain insurance and reinsurance income (including underwriting and investment income) attributable to a policy of insurance or reinsurance with respect to which the person (directly or indirectly) insured is a "RPII Shareholder" or a "related person" to a RPII Shareholder. Generally, a person is a related person to a RPII Shareholder if the person controls or is controlled by the RPII Shareholder, or if the person is controlled by the same person or persons who control the RPII Shareholder. Control is defined for these purposes as direct or indirect ownership of more than 50% of the value or voting power of the stock of a person treated as a corporation for U.S. federal income tax purposes or more than 50% of the value of the beneficial interests in a person treated as a partnership, trust, or estate for U.S. federal income tax purposes. Certain attribution rules apply for purposes of determining control.

The RPII rules will not apply with respect to a Non-U.S. Carrier for a taxable year if (1) at all times during its taxable year less than 20% of the total combined voting power of all classes of such Non-U.S. Carrier's voting stock and less than 20% of the total value of all of its stock is owned (directly or indirectly) by persons who are (directly or indirectly) insured under any policy of insurance or reinsurance issued by such Non-U.S. Carrier or who are related persons to any such person or (2) its RPII (determined on a gross basis) is less than 20% of its insurance income (as so determined) for the taxable year, determined with certain adjustments.

Our Non-U.S. Carriers generally provide reinsurance to our other subsidiaries and affiliates. If such other subsidiaries or affiliates were treated as related (as defined above) to a RPII Shareholder, or our Non-U.S. Carriers reinsured risks of our RPII Shareholders, earnings from such reinsurance would constitute RPII. However, we do not believe any of our subsidiaries or affiliates will be treated as "related" to a RPII Shareholder based on the expected ownership of our shares, nor do we anticipate that our Non-U.S. Carriers will reinsure the risks of our RPII Shareholders in any material amount. Based on the foregoing, we do not expect U.S. Holders to have RPII inclusions. Nonetheless, we cannot provide assurances that our Non-U.S. Carriers will not recognize RPII due to uncertainty about the future ownership of our shares and the complexity of certain attribution rules that apply for purposes of determining whether a RPII Shareholder would be considered to have control of and, therefore, be related to our subsidiaries or affiliates for purposes of the RPII rules, or that we will qualify for either of the RPII exceptions above in the event that our Non-U.S. Carriers recognize RPII.

If a Non-U.S. Carrier does not qualify for either of the exceptions described above, then a RPII Shareholder that owns, directly or indirectly through certain entities, any of the Class A common shares on the last day of such Non-U.S. Carrier's taxable year will be required to include in gross income the RPII Shareholder's pro rata share of such Non-U.S. Carrier's RPII for the entire taxable year, whether or not distributed, even if that RPII Shareholder did not own Class A common shares throughout the taxable year. The RPII Shareholder's share of the RPII for the taxable year will be determined as if all RPII were distributed proportionately only to RPII Shareholders on such last day of the taxable year, but limited by each such RPII Shareholder's share of such Non-U.S. Carrier's current year earnings and profits as reduced by the RPII Shareholder's share, if any, of certain prior-year deficits in earnings and profits. The RPII Shareholder may exclude from income the amount of any distributions by Accelerant of earnings and profits attributable to amounts which are, or have been, included in the gross income of the RPII Shareholder. A RPII Shareholder will not be able to exclude from income the amount of any distributions by Accelerant of earnings and profits attributable to RPII amounts which have been included in the gross income of any previous RPII Shareholders of the Class A common shares owned, directly or indirectly through certain entities, by such RPII Shareholder if the RPII Shareholder is unable to identify the previous RPII Shareholders and demonstrate the amount of RPII that had previously been included in the gross income of the previous RPII Shareholders.

The meaning of various RPII provisions and their application is uncertain. Certain Treasury regulations interpreting the RPII provisions exist only in proposed form, and it is unclear whether the IRS will adopt the

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proposed Treasury regulations or what changes or clarifications might ultimately be made to the proposed Treasury regulations. Any changes to the proposed Treasury regulations governing RPII, or any interpretation or application of the RPII rules by the IRS, the courts or otherwise, might have retroactive effect. Finally, there can be no assurance that the amount of RPII inclusions, if any, reported by us to a U.S. Holder will not be subject to adjustment based upon subsequent IRS examination.

Each U.S. Holder should consult its own tax advisor regarding the effects of these uncertainties and regarding the effects that the RPII provisions may have on it and on its investment in the Class A common shares.

**Basis Adjustments Under the PFIC, CFC, and RPII Provisions** 

A U.S. Holder's tax basis in its Class A common shares will be increased by the amount of income that such U.S. Holder is required to include under the PFIC rules (assuming a "qualified electing fund" or "mark-to-market" election is made), CFC rules and RPII rules. A U.S. Holder's tax basis in its Class A common shares will be reduced by the amount of any distributions on the Class A common shares of previously taxed income that is excluded from the U.S. Holder's gross income. If such distributions exceed the U.S. Holder's tax basis in its Class A common shares, the excess will be treated as gain from the sale or exchange of its Class A common shares (see discussion below).

**Disposition of Class A Common Shares** 

Subject to the above discussion of the PFIC rules and the below discussion relating to the potential application of Section 1248 of the Code, U.S. Holders will recognize capital gain or loss on the sale or other taxable disposition of the Class A common shares. If the holding period for the Class A common shares sold or otherwise disposed of exceeds one year, any gain recognized by a non-corporate U.S. Holder will be subject to tax at a maximum U.S. federal income tax rate of 20% and may also be subject to an additional 3.8% tax imposed on certain net investment income, as discussed below. With certain exceptions, any gain will be U.S. source gain and generally will be passive category income for foreign tax credit limitation purposes. The deductibility of capital losses is subject to limitations.

Under Section 1248 of the Code, if a U.S. Holder sells or exchanges Class A common shares and the U.S. Holder owned (directly, indirectly through certain entities or constructively) 10% or more of the total combined voting power of the voting stock of Accelerant when Accelerant was a CFC at any time during the 5-year period ending on the date of the sale or exchange, then any gain recognized on the sale or exchange of the stock will be treated as a dividend to the extent of Accelerant's earnings and profits (determined under U.S. federal income tax principles) attributable to the stock accumulated during the period that the U.S. Holder held stock of Accelerant while Accelerant was a CFC (with certain adjustments). Whether Accelerant will be treated as a CFC will depend on its ownership following this offering. In addition, whether a U.S. Holder is treated as owning 10% or more of the total combined voting power of the voting stock of Accelerant is uncertain due to the complexity of the attribution rules contained in the Code. Accordingly, there can be no assurance that Section 1248 of the Code will not apply to a sale or exchange of our Class A common shares by a U.S. Holder.

Section 953(c)(7) of the Code provides that the rules of Section 1248 of the Code will also apply to the sale or exchange of shares in a non-U.S. corporation by a U.S. person (regardless of whether the person is a 10% U.S. Shareholder) if the non-U.S. corporation would be taxed under the provisions of the Code applicable to U.S. insurance companies if it were a U.S. corporation and the non-U.S. corporation is (or would be but for certain exceptions) treated as a RPII CFC. If Section 1248 of the Code applies under such circumstances, gain on the disposition of shares in the non-U.S. corporation may be recharacterized as a dividend to the extent of the U.S. person's share of the corporation's undistributed earnings and profits that were accumulated during the period that the U.S. person owned the shares (possibly whether or not those earnings and profits are attributable to RPII).

Accelerant does not directly engage in an insurance or reinsurance business, but the Non-U.S. Carriers do. The current Treasury regulations do not address whether the provisions of Section 953(c)(7) of the Code may

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apply with respect to the sale of stock in a non-U.S. corporation that is not a RPII CFC but has a non-U.S. subsidiary that is a RPII CFC and that would be taxed under the provisions of the Code applicable to U.S. insurance companies if it were a U.S. corporation. Accordingly, there can be no assurance that the IRS will not interpret these rules, or that the Treasury regulations will not be amended, to apply ordinary income treatment to a sale, exchange or other disposition of the Class A common shares on account of Accelerant's ownership of the Non-U.S. Carriers.

Each U.S. Holder should consult its own tax advisor regarding the tax consequences of these rules on a sale, exchange or other disposition of the Class A common shares.

**Tax-Exempt U.S. Holders** 

A tax-exempt U.S. Holder that owns (directly, indirectly through certain entities or constructively) any shares of stock in a CFC is generally required to treat as UBTI the portion of any amount of subpart F insurance income (including RPII) that such tax-exempt U.S. Holder is required to include in its gross income if such insurance income would be treated as UBTI if derived directly by such tax-exempt U.S. Holder. In addition, a tax-exempt U.S. Holder is expected to recognize UBTI if the Class A common shares owned by such U.S. Holder are considered debt-financed property. Each U.S. Holder that is a tax-exempt entity should consult its own tax advisor regarding the effects that the UBTI provisions may have on it and on its investment in the Class A common shares.

**Foreign Tax Credit** 

Distributions on our Class A common shares that are treated as a dividends and current income inclusions under the PFIC, CFC and RPII rules generally will constitute income from sources outside the United States and generally will be categorized for U.S. foreign tax credit purposes as "passive category income" or, in the case of some U.S. Holders, as "general category income." If, however, 50% or more (by vote or value) of Accelerant's shares are treated as being owned by U.S. persons, the amount of any current income inclusions under the PFIC, CFC and RPII rules and dividends (including any gain from the sale, exchange or other disposition of Class A common shares that is treated as a dividend under Section 1248 of the Code) constituting income from sources outside the United States may be limited to the amount attributable to Accelerant's income from sources outside the United States. Thus, it may not be possible for U.S. Holders to utilize excess foreign tax credits to reduce U.S. federal income tax on such income. The rules relating to U.S. foreign tax credits are very complex, and each U.S. Holder should consult its own tax advisor regarding the application of such rules.

**Net Investment Income Tax** 

A 3.8% tax is imposed on all or a portion of the net investment income of certain individuals with modified adjusted gross income of over $200,000 ($250,000 in the case of joint filers) and the undistributed net investment income of certain estates and trusts. For these purposes, "net investment income" will include a U.S. Holder's share of dividends and gain on the sale or other taxable disposition of our Class A common shares. Unless a U.S. Holder elects otherwise or holds its Class A common shares in connection with certain trades or businesses, the CFC and PFIC provisions generally will not apply for purposes of determining a U.S. Holder's net investment income.

**Reporting Requirements for U.S. Holders** 

Form 926 – A U.S. Holder who transfers cash to Accelerant in exchange for Class A common shares may be required to file Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) with the IRS if (1) immediately after the transfer, such U.S. Holder holds, directly or indirectly, at least 10% of the total voting power or the total value of Accelerant, or (2) the amount of cash transferred by such U.S. Holder (or certain related persons) during the 12-month period ending on the date of the transfer exceeds $100,000.

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Form 5471 – A U.S. Holder who is a 10% U.S. Shareholder or RPII Shareholder of Accelerant or certain of our non-U.S. corporate subsidiaries will be required to file Form 5471 (Information Return of U.S. Persons with Respect to Certain Foreign Corporations) with the IRS for one or more taxable years with respect to Accelerant or such subsidiary, as applicable. This information return requires certain disclosures concerning the filing shareholder, other 10% U.S. Shareholders and Accelerant or such subsidiary, as applicable.

Form 8621 – A U.S. person that is a shareholder of a PFIC is required to file Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) with the IRS. If Accelerant is a PFIC in any year, U.S. Holders may be required to file Forms 8621 with the IRS with respect to Accelerant and any PFICs owned by Accelerant, directly or indirectly by application of certain attribution rules.

Form 8992 – A 10% U.S. Shareholder of a CFC generally is required to file Form 8992 (U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)) with the IRS.

Potential investors are urged to consult their tax advisors for advice regarding reporting on Forms 926, 5471, 8621 and 8992 and any other reporting requirements that may apply to their acquisition, ownership or disposition of our Class A common shares. Accelerant is not obligated to provide U.S. Holders with the information necessary to satisfy such reporting requirements. Failure to properly file such forms, if required, may result in the imposition of substantial penalties and an extension of the statute of limitations for the assessment of any U.S. federal income tax with respect to any tax return, event or period to which the information required to be reported on such forms relates.

***Taxation of Non-U.S. Holders***

For purposes of this discussion, you are a "Non-U.S. Holder" if you are a beneficial owner of our Class A common shares, you are not a U.S. Holder and you are not treated as a partnership for U.S. federal income tax purposes.

**Distributions on Our Class A Common Shares** 

If Accelerant makes distributions on its Class A common shares, the distributions will be dividends for U.S. federal income tax purposes to the extent paid out of Accelerant's current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. Dividends on Class A common shares will not be subject to U.S. federal income tax unless the dividends are effectively connected with the Non-U.S. Holder's conduct of a U.S. trade or business (and, if an income tax treaty applies, the dividends are attributable to a U.S. permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States).

To the extent distributions exceed Accelerant's current and accumulated earnings and profits, they will generally constitute a return of capital that will first reduce a Non-U.S. Holder's basis in the Class A common shares, but not below zero, and then will be treated as gain from the sale or exchange of the Class A common shares (discussed below).

**Dispositions of Our Class A Common Shares** 

A Non-U.S. Holder will generally not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Class A common shares unless (1) such gain is effectively connected with the Non-U.S. Holder's conduct of a U.S. trade or business (and, if an income tax treaty applies, the gain is attributable to a U.S. permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States) or (2) the Non-U.S. Holder is an individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which such sale or other taxable disposition occurs and certain other conditions are met.

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Gain described in clause (1) immediately above will be subject to U.S. federal income tax in the manner described below under "Effectively Connected Income." During each taxable year, a Non-U.S. Holder described in clause (2) immediately above will be subject to tax at a 30% rate (or such lower rate specified by an applicable income tax treaty) on the net gain derived from the sale or other taxable disposition, which may be offset by capital losses of the Non-U.S. Holder during the taxable year allocated to U.S. sources.

**Effectively Connected Income** 

Any dividend with respect to, or gain recognized upon the sale or other taxable disposition of, our Class A common shares that is effectively connected with a trade or business carried on by a Non-U.S. Holder within the United States (and, if an income tax treaty applies, is attributable to a permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States) will be subject to U.S. federal income tax, based on the Non-U.S. Holder's net effectively connected income, generally in the same manner as if the Non-U.S. holder were a U.S. person for U.S. federal income tax purposes. If a dividend or gain is effectively connected with a U.S. trade or business of a Non-U.S. Holder that is a corporation for U.S. federal income tax purposes, such corporate Non-U.S. Holder may also be subject to a "branch profits tax" at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty), subject to certain adjustments. Non-U.S. Holders should consult their tax advisers regarding any applicable tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding** 

Payments of dividends and sales proceeds that are made to a U.S. Holder within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting, and may be subject to backup withholding, unless (i) the U.S. Holder is a corporation or other exempt recipient or (ii) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. A Non-U.S. Holder may be required to provide a certification on an applicable IRS Form W-8 to establish an exemption from such information reporting and backup withholding.

The amount of any backup withholding from a payment to a U.S. Holder or Non-U.S. Holder will be allowed as a credit against the U.S. Holder's or Non-U.S. Holder's U.S. federal income tax liability and may entitle it to a refund, provided that the required information is timely furnished to the IRS.

THIS SUMMARY IS FOR GENERAL INFORMATION PURPOSES ONLY, AND IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSTRUED TO BE, LEGAL OR TAX ADVICE TO ANY PARTICULAR HOLDER. PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR TAX ADVISORS WITH REGARD TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS, AS WELL AS THE APPLICATION OF U.S. NON-INCOME TAX LAWS AND THE LAWS OF ANY STATE, LOCAL OR NON-U.S. JURISDICTION, IN LIGHT OF THEIR PARTICULAR SITUATION.

**Cayman Islands Tax Considerations** 

The following summary contains a description of certain Cayman Islands tax consequences of the acquisition, ownership and disposition of our Class A common shares, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase our Class A common shares. The summary is based upon the tax laws of Cayman Islands and regulations thereunder as of the date hereof, which are subject to change.

If you are considering the purchase of our Class A common shares, you should consult your own tax advisors concerning the particular tax consequences to you of the purchase, ownership and disposition of our Class A common shares, as well as the consequences to you arising under the laws of your country of citizenship, residence, or domicile.

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The following is a discussion of certain Cayman Islands income tax consequences of an investment in our Class A common shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended to be tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands law.

***Under Existing Cayman Islands Laws***

Payments of dividends and capital in respect of our Class A common shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of interest and principal or a dividend or capital to any holder of our Class A common shares, as the case may be, nor will gains derived from the disposal of our Class A common shares be subject to Cayman Islands income or corporation tax. The Cayman Islands currently have no income, corporation, or capital gains tax and no estate duty, inheritance tax, or gift tax.

No stamp duty is payable in respect of the issue of Class A common shares or on an instrument of transfer in respect of an common share.

The Company has been incorporated under the laws of the Cayman Islands as an exempted company with limited liability and, as such, has applied for and received an undertaking from the Financial Secretary of the Cayman Islands in the following form:

The Tax Concessions Act

(As Revised)

Undertaking as to Tax Concessions

In accordance with Section 6 of the Tax Concessions Act (As Revised) the Financial Secretary undertakes with Accelerant Holdings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that no Law which is hereafter enacted in the Islands imposing any tax to be levied on profits, income, gains, or appreciations shall apply to us the Company or our operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax shall be payable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on or in respect of the shares, debentures or other obligations of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of the withholding in whole or part, of any relevant payment as defined in Section 6(3) of the Tax Concessions Act (As Revised).

These concessions shall be for a period of twenty years from June 27, 2023.

**United Kingdom Tax Considerations** 

The following section is intended only as a general guide and does not purport to be a complete analysis of all potential UK tax consequences of acquiring, holding and disposing of Class A common shares. It is based on current UK tax law and on the current published practice of HMRC (which is not a statement of law and which may not be binding on HMRC), as of the date of this prospectus, both of which are subject to change at any time, possibly with retrospective effect. It is intended to address only certain UK tax consequences of the acquisition, holding and disposal of ordinary shares by persons who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are not resident in the UK for UK tax purposes (and, in the case of individuals, are not temporarily non-resident) ("Non-UK Holders");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) are the absolute beneficial owners of their Class A common shares (and any dividends paid on them); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hold their Class A common shares as investments and not in connection with a trade or business carried on to any extent in the UK

This section does not address the UK tax consequences which may be relevant to certain classes of holders of Class A common shares, such as: market makers, intermediaries, traders, brokers or dealers in securities; financial institutions; insurance companies; investment companies; collective investment schemes; charities or tax-exempt organizations; pension schemes; trustees; persons who are connected with the Company or any member of a group of which the Company forms part; persons holding their Class A common shares as part of hedging or conversion transactions; and persons who have (or are deemed to have) acquired their Class A common shares by virtue of an office or employment or who have been officers or employees of the Company or a company forming part of a group of which the Company forms part.

This section is written on the basis that the Company is not resident in any jurisdiction for tax purposes other than the UK and does not (and will not) directly or indirectly derive 75% or more of its value from UK real estate.

The following is intended as a general guide and is not intended to be, nor should it be considered to be, legal or tax advice to any particular prospective subscriber for, or purchaser of, Class A common shares. Accordingly, prospective subscribers for, or purchasers of, Class A common shares should consult their own tax advisors with respect to the UK tax consequences of the acquisition, ownership and disposal of Class A common shares in their specific circumstances.

***Taxation of Dividends Paid on Class A Common Shares***

<u>Withholding Tax</u> 

Dividends paid by the Company in respect of Class A common shares will not be subject to any withholding or deduction at source for or on account of UK tax.

<u>Income Tax</u>

An individual Non-UK Holder should not be chargeable to UK income tax on dividends received from the Company, unless he or she carries on (whether solely or in partnership) any trade, profession, or vocation in the UK through a branch or agency in the UK in connection with which his or her Class A common shares are held.

<u>Corporation Tax</u> 

A corporate Non-UK Holder should not be subject to UK corporation tax on dividends received from the Company, unless it carries on a trade in the UK through a permanent establishment in the UK to which its Class A common shares are attributable. A corporate Non-UK Holder who is carrying on a trade in the UK through a permanent establishment in the UK to which its Class A common shares are attributable will be subject to UK corporation tax on any dividend received from the Company, unless the dividend qualifies for exemption and certain conditions are met (including anti-avoidance conditions). Whether the dividend qualifies for exemption will depend on the circumstances of the particular corporate Non-UK Holder, although it is generally expected that dividends paid by the Company would normally qualify.

***Taxation of Disposal of Class A Common Shares***

A Non-UK Holder who does not carry on a trade in the UK through a branch or agency in the UK (in the case of individual Non-UK Holders) or a permanent establishment in the UK (in the case of corporate Non-UK Holders) to which the Class A common shares are attributable should not be liable for UK tax on capital gains realized on a sale or other disposal of Class A common shares.

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***UK Stamp Duty and Stamp Duty Reserve Tax ("SDRT")***

This section is intended as a general guide to the current position relating to UK stamp duty and SDRT and applies to any holders of Class A common shares irrespective of whether they are resident in the UK for UK tax purposes. It is written on the basis that HMRC regards the Depository Trust Company ("DTC") as a clearance service for the purposes of UK stamp duty and SDRT and that no applicable election under section 97A(1) Finance Act 1986 has been made.

<u>Issuance of Class A Common Shares</u> 

No stamp duty or SDRT should be payable on the issuance of Class A common shares by the Company.

<u>Transfer of Class A Common Shares within the facilities of DTC</u> 

A transfer of Class A common shares within the facilities of DTC should not attract a charge to UK stamp duty or SDRT provided there is no written instrument of transfer.

<u>Transfer of Class A Common Shares outside the facilities of DTC</u> 

If Class A common shares are withdrawn from the facilities of DTC, the UK stamp duty and SDRT treatment of a subsequent transfer of such Class A common shares outside the facilities of DTC is discussed below.

As the Company is not incorporated in the UK, no SDRT should be payable on the transfer of, or an agreement to transfer, Class A common shares provided that the Class A common shares are not registered in a register kept in the UK by or on behalf of the Company and are not paired with any shares issued by a UK incorporated company. It is not intended that such a register will be kept in the UK or that the Class A common shares will be so paired.

A transfer of Class A common shares should not attract a charge to UK stamp duty provided the relevant instrument of transfer is executed and retained outside the UK and does not relate to any property situated in the UK or to any matter or thing done or to be done in the UK. If the relevant instrument of transfer is executed in the UK or relates to any property situated, or to any matter or thing done or to be done, in the UK, then UK stamp duty will technically be payable at the rate of 0.5% of the consideration for the transfer (rounded up to the nearest £5). However, an exemption may be available if the amount or value of the consideration for such transfer is £1,000 or less. Further, even where an instrument of transfer is technically subject to UK stamp duty, such stamp duty may not need to be paid in practice unless it is necessary to rely on the instrument of transfer for legal purposes (for example, to register a change of ownership or in litigation in a UK court) and provided that the Class A common shares are not registered in a register kept in the UK. As a practical matter, therefore, a purchaser of Class A common shares may generally not have to pay UK stamp duty on a mandatory basis.

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**UNDERWRITERS** 

Under the terms and subject to the conditions in an underwriting agreement dated the date of this prospectus, the underwriters named below, for whom Morgan Stanley & Co. LLC is acting as representative, have severally agreed to purchase, and we and the Selling Shareholder have agreed to sell to them, severally, the number of Class A common shares indicated below:

---

| | |
|:---|:---|
| **Name** | **Number of**<br> **Class A**<br> **Common<br>Shares** |
|  Morgan Stanley & Co. LLC |  |
|  Goldman Sachs & Co. LLC |  |
|  BMO Capital Markets Corp. |  |
|  RBC Capital Markets, LLC |  |
|  Piper Sandler & Co.<br> Wells Fargo Securities, LLC |  |
|  William Blair & Company, L.L.C. |  |
|  Raymond James & Associates, Inc. |  |
|  TD Securities (USA) LLC |  |
|  Citizens JMP Securities, LLC |  |
|  FTP Securities LLC |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |

---

The underwriters and the representative are collectively referred to as the "underwriters" and the "representative," respectively. The underwriters are offering the Class A common shares subject to their acceptance of the shares from us and the Selling Shareholder subject to prior sale. The underwriting agreement provides that the obligations of the several underwriters to pay for and accept delivery of the Class A common shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the Class A common shares by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below.

The underwriters initially propose to offer part of the Class A common shares directly to the public at the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the initial offering of the Class A common shares, the offering price and other selling terms may from time to time be varied by the representative.

We and the Selling Shareholder have granted to the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase up to a maximum of additional Class A common shares at the public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering of the Class A common shares offered by this prospectus. To the extent the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase about the same percentage of the additional Class A common shares as the number listed next to the underwriter's name in the preceding table bears to the total number of Class A common shares listed next to the names of all underwriters in the preceding table.

The following table shows the per share and total public offering price, underwriting discounts and commissions, and proceeds before expenses to us and the Selling Shareholder. These amounts are shown

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assuming both no exercise and full exercise of the underwriters' option to purchase up to a maximum of additional Class A common shares.

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| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  |<br>**Per**<br>**Share** | **No Exercise** | **Full<br>Exercise** |
|  Public offering price | $| $| $|
|  Underwriting discounts and commissions to be paid by: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Us | $| $| $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Selling Shareholder | $| $| $|
|  Proceeds, before expenses, to us | $| $| $|
|  Proceeds, before expenses, to the Selling Shareholder | $| $| $|

---

The estimated offering expenses payable by us, exclusive of the underwriting discounts and commissions, are approximately $. We have agreed to reimburse the underwriters for expenses relating to clearance of this offering with the Financial Industry Regulatory Authority up to $.

The underwriters have informed us that they do not intend sales to discretionary accounts to exceed % of the total number of Class A common shares offered by them.

We have applied to list our common shares on the New York Stock Exchange under the trading symbol "ARX."

We, the Selling Shareholder, and all directors and officers and the holders of all of our outstanding Class A common shares have agreed that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we and they will not, and will not publicly disclose an intention to, during the period ending 180 days after the date of this prospectus (the "restricted period"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any Class A common shares or any securities convertible into or exercisable or exchangeable for Class A common
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file any registration statement with the Securities and Exchange Commission relating to the offering of any
Class A common shares or any securities convertible into or exercisable or exchangeable for Class A common shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Class A common shares,

whether any such transaction described above is to be settled by delivery of Class A common shares or such other securities, in cash or otherwise. In addition, we and each such person agree that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we or such other person will not, during the restricted period, make any demand for, or exercise any right with respect to, the registration of any Class A common shares or any security convertible into or exercisable or exchangeable for Class A common shares.

The restrictions described in the immediately preceding paragraph do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sale of shares to the underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers of shares as a bona fide gift or bona fide estate planning purposes, by will, testament or intestate
succession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers of shares by operation of law, court order or regulatory agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers to any immediate family member or affiliate or the shareholder, director or officer, or any trust
for the benefit of the shareholder, director or officer or their affiliates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a corporation, partnership, limited liability company, or other business entity, transfers (i)
to another corporation, partnership, limited liability, trust or other business entity controlling, controlled by, managed or managed by or under common control with an affiliate corporate or business entity or (ii) as part of a distribution or
other transfer to general or limited partners, members or shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance by the Company of Class A common shares upon the vesting, settlement or exercise of restricted
stock units, options, warrants or other rights to purchase Class A common shares outstanding on the date of this prospectus, including for the payment of exercise price and tax withholding and remittance payments due as a result of the vesting,
settlement or exercise of such restricted stock units, options, warrants or rights, of which the underwriters have been advised in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions by the Company of Class A common shares or other securities to limited partners or stockholders
of a holder of lock-up securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers pursuant to a bona fide third-party tender offer, take-over bid, merger, amalgamation, consolidation
or other similar transaction made to all holders of the Company's securities and approved by the Board of Directors involving a change of control; provided that in the event that such transaction is not completed, such lock-up securities would
remain subject to the terms of the lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions by any person other than us relating to Class A common shares or other securities acquired in
open market transactions after the completion of the offering of the shares; provided that no filing under Section 16(a) of the Exchange Act, is required or voluntarily made in connection with subsequent sales of the Class A common shares or
other securities acquired in such open market transactions, unless such filing indicates that such transaction was made in connection with a bona fide gift;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facilitating the establishment of a trading plan on behalf of a shareholder, officer or director of the
Company pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Class A common shares, provided that (i) such plan does not provide for the transfer of Class A common shares during the
restricted period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by the Company regarding the establishment of such plan, such announcement or filing shall include a
statement to the effect that no transfer of Class A common shares may be made under such plan during the restricted period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to the Company only, the issuance of Class A common shares in exchange for approximately $35
million of units issued under the limited liability company agreement of ARU, dated as of May 4, 2021; provided that in the case of any such issuance, the transferee agrees to be bound in writing by the terms of the lock-up agreement at the time of
such transfer (See "Certain Relationships and Related-Party Transactions–2WJ, LLC" for more information); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of certain lock-up parties, a pledge of a security interest in any lock-up securities to certain
lending institutions as collateral or security for any loan, advance or extension of credit existing on the date of this prospectus and the transfer of such lock-up securities to such lending institution upon foreclosure of such lock-up securities;
provided that in the case of any such transfer, the transferee agrees to be bound in writing by the terms of the lock-up agreement at the time of such transfer.

Morgan Stanley & Co. LLC, in its sole discretion, may release the Class A common shares and other securities subject to the lock-up agreements described above in whole or in part at any time.

In the event a release from a lock-up agreement is granted to any officer, director, or holder of greater than 1% of the Company's total outstanding Class A common shares, other holders of lock-up securities will have pro rata release rights on the same terms; provided, however that pro rata release rights will not be applied in connection with any such release (i) to the extent that all such releases granted constitute in the aggregate an amount less than 1% of the Company's total outstanding Class A common shares and no releases are granted to

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any officer, director, or shareholder subject to Section 16 reporting under the Exchange Act; (ii) granted in connection with an underwritten primary or secondary offering during the restricted period; or (iii) in the case of a release granted due to an emergency or hardship of a holder of lock-up securities in the judgment of Morgan Stanley & Co. LLC.

In order to facilitate the offering of the Class A common shares, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the Class A common shares. Specifically, the underwriters may sell more shares than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares available for purchase by the underwriters under the underwriters' option to purchase additional Class A common shares. The underwriters can close out a covered short sale by exercising their option to purchase additional Class A common shares or purchasing shares in the open market. In determining the source of shares to close out a covered short sale, the underwriters will consider, among other things, the open market price of shares compared to the price available under their option to purchase additional Class A common shares. The underwriters may also sell shares in excess of the option to purchase additional Class A common shares, creating a naked short position. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the Class A common shares in the open market after pricing that could adversely affect investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid for, and purchase, Class A common shares in the open market to stabilize the price of the Class A common shares. These activities may raise or maintain the market price of the Class A common shares above independent market levels or prevent or retard a decline in the market price of the Class A common shares. The underwriters are not required to engage in these activities and may end any of these activities at any time.

We, the Selling Shareholder, and the underwriters have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

A prospectus in electronic format may be made available on websites maintained by one or more underwriters, or selling group members, if any, participating in this offering. The representative may agree to allocate a number of Class A common shares to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representative to underwriters that may make Internet distributions on the same basis as other allocations.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees and expenses. Goldman Sachs Bank Europe SE, an affiliate of Goldman Sachs & Co. LLC, one of the underwriters in this offering, has entered into lending facilities with Christopher Lee-Smith, our Co-Founder, Head of Distribution and a member of our Board of Directors and Frank O'Neill, our Co-Founder and Chief Underwriting Officer (together, the "Loans"). The loan to Mr. Lee-Smith is secured by a pledge of approximately Class A common shares beneficially owned by Mr. Lee-Smith. The loan to Mr. O'Neill is secured by a pledge of approximately Class A common shares beneficially owned by Mr. O'Neill. The maturity date of each of the Loans is December 31, 2025. In the case of nonpayment at maturity or another event of default (including but not limited to the borrower's inability to satisfy a margin call, which may be instituted by the lender following certain declines in our stock price, whether before or after the expiration of the lock-up period described above but subject to the limitations set forth below), Goldman Sachs Bank Europe SE may exercise its rights under the loan agreements to obtain shares pledged to cover the amount due under the Loans.

In addition, affiliates of certain of the other underwriters act as arrangers and lenders under the Credit Facilities. See "Description of Certain Indebtedness."

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In addition, in the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

**Pricing of the Offering** 

Prior to this offering, there has been no public market for our Class A common shares. The initial public offering price was determined by negotiations between us, the Selling Shareholder, and the representative. Among the factors considered in determining the initial public offering price were our future prospects and those of our industry in general, our sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios, price-sales ratios, market prices of securities, and certain financial and operating information of companies engaged in activities similar to ours.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the Class A common shares offered hereby, at the initial public offering price, to offer to our directors, officers, employees, business associates and related persons. If purchased by these persons, these shares will be subject to a 180-day lock-up restriction. The underwriters will receive the same underwriting discount on any shares purchased pursuant to this program as they will on any other shares sold to the public in this offering. The number of Class A common shares available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus.

**Selling Restrictions** 

***European Economic Area***

In relation to each Member State of the European Economic Area (each, a "Relevant State"), no shares have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that offers of shares may be made to the public in that Relevant State at any time under the following exemptions under the Prospectus Regulation:

(a) to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the
Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of shares shall require us or any representative to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

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***United Kingdom***

No shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares that has either (i) been approved by the Financial Conduct Authority or (ii) is to be treated as if it had been approved by the Financial Conduct Authority in accordance with the transitional provisions in Article 74 (transitional provisions) of the Prospectus Amendment etc (EU Exit) Regulations 2019/1234, except that offers of shares may be made to the public in the United Kingdom at any time under the following exemptions under the UK Prospectus Regulation:

(a) to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus
Regulation;

(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the
UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

(c) in any other circumstances falling within Section 86 of the FSMA,

provided that no such offer of shares shall require us or any representative to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

***Canada***

The Class A common shares may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 *Prospectus Exemptions* or subsection 73.3(1) of the *Securities Act* (Ontario), and are permitted clients, as defined in National Instrument 31-103 *Registration Requirements, Exemptions and Ongoing Registrant Obligations*. Any resale of the Class A common shares must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

***Hong Kong***

The contents of this prospectus have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice. Please note that (i) the Class A common shares may not be offered or sold in Hong Kong, by means of this prospectus or any document other than to "professional investors" within the meaning of Part I of Schedule 1 of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) (the "SFO")) and any rules made thereunder, or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong) (the "CO")) or which do not constitute an offer or invitation to the public for the purpose of the CO or the SFO, and (ii) no advertisement, invitation or document relating to the Class A common shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere) which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong

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Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the SFO and any rules made thereunder.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the securities may not be circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person, or any person pursuant to Section 275(1A), and in accordance with the conditions, specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

***Brazil***

The offer of securities described in this prospectus will not be carried out by means that would constitute a public offering in Brazil under Law No. 6,385, of December 7, 1976, as amended, under the CVM Rule (Instrução) No. 400, of December 29, 2003. The offer and sale of the securities have not been and will not be registered with the Comissão de Valores Móbilearios in Brazil. The securities have not been offered or sold, and will not be offered or sold in Brazil, except in circumstances that do not constitute a public offering or distribution under Brazilian laws and regulations.

***Australia***

This prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not constitute a disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001
(Cth) (the "Corporations Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has not been, and will not be, lodged with the Australian Securities and Investments Commission (the
"ASIC") as a disclosure document for the purposes of the Corporations Act and does not purport to include the information required of a disclosure document for the purposes of the Corporations Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may only be provided in Australia to select investors who are able to demonstrate that they fall within one or
more of the categories of investors, available under section 708 of the Corporations Act (Exempt Investors).

The Class A common shares may not be directly or indirectly offered for subscription or purchased or sold, and no invitations to subscribe for or buy the Class A common shares may be issued, and no draft or definitive offering memorandum, advertisement or other offering material relating to any Class A common shares may be distributed in Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is otherwise in compliance with all applicable Australian laws and regulations. By submitting an application for the Class A common shares, you represent and warrant to us that you are an Exempt Investor.

As any offer of Class A common shares under this document will be made without disclosure in Australia under Chapter 6D.2 of the Corporations Act, the offer of those securities for resale in Australia within 12 months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none of the exemptions in section 708 applies to that resale. By applying for the shares of Class A common shares you undertake to us that you will not, for a period of 12 months from the date of issue of the shares of Class A

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##### [**Table of Contents**](#toc)
common shares, offer, transfer, assign or otherwise alienate those shares of Class A common shares to investors in Australia except in circumstances where disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure document is prepared and lodged with ASIC.

***China***

This prospectus will not be circulated or distributed in the People's Republic of China (the "PRC"), and the Class A common shares will not be offered or sold and will not be offered or sold to any person for re-offering or resale directly or indirectly to any residents of the PRC except pursuant to any applicable laws and regulations of the PRC. Neither this prospectus nor any advertisement or other offering material may be distributed or published in the PRC, except under circumstances that will result in compliance with applicable laws and regulations.

***France***

Neither this prospectus nor any other offering material relating to the Class A common shares offered by this prospectus has been or will be submitted to the clearance procedures of the Autorité des Marchés Financiers or of the competent authority of another member state of the European Economic Area and notified to the Autorité des Marchés Financiers. The Class A common shares has not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither this prospectus nor any other offering material relating to the Class A common shares has been or will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) released, issued, distributed, or caused to be released, issued, or distributed to the public in France; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) used in connection with any offer for subscription or sale of the notes to the public in France.

Such offers, sales and distributions will be made in France only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to qualified investors (investisseurs qualifiés) and/or to a restricted circle of investors (cercle
restreint d'investisseurs), in each case acting for their own account, or otherwise in circumstances in which no offer to the public occurs, all as defined in and in accordance with Articles L.411-2, D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the French Code monétaire et financier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to investment services providers authorized to engage in portfolio management on behalf of third parties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in a transaction that, in accordance with Article L.411-2-I-1° -or-2° -or 3° of the
French Code monétaire et inancier and Article 211-2 of the General Regulations (Règlement Général) of the Autorité des Marchés Financiers, does not constitute a public
offer (offre au public).

The Class A common shares may not be distributed directly or indirectly to the public except in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier and applicable regulations thereunder.

***Kuwait***

The Class A common shares have not been authorized or licensed for offering, marketing or sale in the State of Kuwait. The distribution of this prospectus and the offering and sale of the Class A common shares in the State of Kuwait is restricted by law unless a license is obtained from the Kuwait Ministry of Commerce and Industry in accordance with Law 31 of 1990. Persons into whose possession this prospectus comes are required by us and the international underwriters to inform themselves about and to observe such restrictions. Investors in the State of Kuwait who approach us or any of the international underwriters to obtain copies of this prospectus are required by us and the international underwriters to keep such prospectus confidential and not to make copies thereof or distribute the same to any other person and are also required to observe the restrictions provided for in all jurisdictions with respect to offering, marketing and the sale of the Class A common shares.

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##### [**Table of Contents**](#toc)
***Qatar***

The Class A common shares described in this prospectus have not been, and will not be, offered, sold, or delivered, at any time, directly or indirectly in the State of Qatar in a manner that would constitute a public offering. This prospectus has not been, and will not be, registered with or approved by the Qatar Financial Markets Authority or Qatar Central Bank and may not be publicly distributed. This prospectus is intended for the original recipient only and must not be provided to any other person. It is not for general circulation in the State of Qatar and may not be reproduced or used for any other purpose.

***Saudi Arabia***

This document may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations as issued by the board of the Saudi Arabian Capital Market Authority (the "CMA"), pursuant to resolution number 2-11-2004 dated 4 October 2004 as amended by resolution number 1-28-2008, as amended. The CMA does not make any representation as to the accuracy or completeness of this document and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the Class A common shares offered hereby should conduct their own due diligence on the accuracy of the information relating to the Class A common shares. If you do not understand the contents of this document, you should consult an authorized financial adviser.

***Switzerland***

The Class A common shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document does not constitute a prospectus within the meaning of, and has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the Class A common shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, us, or the Class A common shares have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of Class A common shares will not be supervised by, the Swiss Financial Market Supervisory Authority, and the offer of Class A common shares has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CSA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of Class A common shares.

***United Arab Emirates***

The Class A common shares have not been and are not being publicly offered, sold, promoted, or advertised in the United Arab Emirates (including the Dubai International Financial Center (the "DIFC")) other than in compliance with the laws of the United Arab Emirates (and the DIFC) governing the issue, offering and sale of securities. Further, this prospectus does not constitute a public offer of securities in the United Arab Emirates (including the DIFC) and is not intended to be a public offer. This prospectus has not been approved by or filed with the Central Bank of the United Arab Emirates, the Securities and Commodities Authority or the Dubai Financial Services Authority.

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##### [**Table of Contents**](#toc)
**LEGAL MATTERS** 

The validity of our Class A common shares and certain other matters of Cayman Islands law will be passed upon for us by Maples and Calder (Cayman) LLP. Certain other matters will be passed upon for us by Sidley Austin LLP. A partner of Sidley Austin LLP beneficially owns less than 1% of our outstanding Class A common shares. Certain legal matters in connection with this offering will be passed upon for the underwriters by Conyers Dill & Pearman LLP and Ropes & Gray LLP, New York, New York.

**EXPERTS** 

The consolidated financial statements of Accelerant Holdings and its subsidiaries as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024 included in this prospectus have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in accounting and auditing.

The consolidated financial statements of Accelerant Holdings LP and its subsidiaries as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024 included in this prospectus have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act with respect to the Class A common shares to be sold in this offering. As allowed by SEC rules, this prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules that are part of the registration statement. For further information with respect to us and our Class A common shares offered hereby, you should refer to the registration statement, including all amendments, supplements, schedules, and exhibits thereto.

Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

The SEC maintains a website that contains reports, proxy statements, and other information about companies like us, who file electronically with the SEC. The address of that website is http://www.sec.gov.

Upon the effectiveness of the registration statement, we will be subject to the reporting, proxy, and information requirements of the Exchange Act, and will be required to file periodic reports, proxy statements, and other information with the SEC. These periodic reports, proxy statements and other information will be available on the website of the SEC referred to above, as well as on our website, www.accelerant.ai. The contents of, or other information accessible through, our website are not part of this prospectus, and you should not consider the contents of our website in making an investment decision with respect to our Class A common shares. You may also request copies of those documents, at no cost to you, by contacting us at the following address:

Accelerant Holdings

c/o Accelerant Re (Cayman) Ltd.

Unit 106, Windward 3, Regatta Office Park,

West Bay Road, Grand Cayman

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##### [**Table of Contents**](#toc)
**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

---

| | |
|:---|:---|
| **Accelerant Holdings Consolidated Financial Statements:** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin543111_10011) | F-4 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_10012) | F-5 |
|  [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_10013) | F-6 |
|  [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_10014) | F-7 |
|  [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_10015) | F-8 |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_10016) | F-9 |
|  [Notes to Consolidated Financial Statements](#fin543111_10017) | F-11 |
|  [Financial Statement Schedules](#fin543111_10018) | F-67 |
| **Accelerant Holdings Condensed Consolidated Interim Financial Statements:** |  |
|  [Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (unaudited)](#fin543111_201) | F-79 |
|  [Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_51) | F-80 |
|  [Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_52) | F-81 |
|  [Condensed Consolidated Statements of Equity for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_53) | F-82 |
|  [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_54) | F-83 |
|  [Notes to Condensed Consolidated Financial Statements](#fin543111_55)(unaudited) | F-85 |
| **Accelerant Holdings LP Consolidated Financial Statements:** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin543111_10091) | F-109 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_10092) | F-110 |
| [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_10093) | F-111 |
|  [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_10094) | F-112 |
|  [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_10095) | F-113 |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_10096) | F-114 |
|  [Notes to Consolidated Financial Statements](#fin543111_10097) | F-116 |
| [Financial Statement Schedules](#fin543111_10098) | F-172 |
| **Accelerant Holdings LP Condensed Consolidated Interim Financial Statements:** |  |
|  [Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (unaudited)](#fin543111_801) | F-184 |
|  [Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_61) | F-185 |
|  [Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_62) | F-186 |
|  [Condensed Consolidated Statements of Equity ended March 31, 2025 and 2024 (unaudited)](#fin543111_63) | F-187 |
|  [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_64) | F-188 |
|  [Notes to Condensed Consolidated Financial Statements (unaudited)](#fin543111_65) | F-190 |

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![LOGO](g543111g67r24.jpg)

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**Accelerant Holdings** 

**Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
| **Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm](#fin543111_501) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_502) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_503) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_504) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_505) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_506) | F-9 |
|  **Notes to Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_507) | F-11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_508) | F-11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_509) | F-24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_510) | F-31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_511) | F-35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Variable interest entities](#fin543111_512) | F-36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Revenue from contracts with customers](#fin543111_513) | F-38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Reinsurance](#fin543111_514) | F-39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Deferred acquisition costs and deferred ceding commissions](#fin543111_515) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Income taxes](#fin543111_516) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Goodwill, other intangible assets and capitalized technology development costs](#fin543111_517) | F-45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Other assets](#fin543111_518) | F-47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Unpaid losses and loss adjustment expenses](#fin543111_519) | F-48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Debt](#fin543111_520) | F-53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_521) | F-54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Equity](#fin543111_522) | F-54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Business acquisitions](#fin543111_523) | F-56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Related party transactions](#fin543111_524) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 19. Commitments and contingencies](#fin543111_525) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 20. Employee benefits and profit interests plans](#fin543111_526) | F-60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 21. Share-based compensation](#fin543111_527) | F-61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 22. Earnings per share](#fin543111_528) | F-62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 23. Dividend restrictions and statutory financial information](#fin543111_529) | F-63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 24. Subsequent events](#fin543111_530) | F-66 |
| **Financial Statement Schedules** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[I. Summary of investments other than investments in related parties as of December 31, 2024](#fin543111_531) | F-67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[II. Condensed financial information of parent only as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_532) | F-68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[III. Supplementary insurance information as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_533) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[IV. Reinsurance for the years ended December 31, 2024, 2023 and 2022](#fin543111_534) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[V. Valuation and qualifying accounts for the years ended December 31, 2024, 2023 and 2022](#fin543111_535) | F-75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[VI. Supplementary information concerning property/casualty insurance operations as of and for the years ended December 31, 2024, 2023 and 2022](#fin543111_536) | F-76 |

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**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and Shareholders of Accelerant Holdings

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Accelerant Holdings and its subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

March 27, 2025

We have served as the Company's auditor since 2021.

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**Accelerant Holdings** 

**Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| ***(expressed in millions of US dollars, except share data)*** |  |  |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2024: $65.0 and 2023: $8.0) | $64.8 | $8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2024: $485.6 and 2023: $87.1) | 479.5 | 86.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value (cost 2023: $115.2) |  | 116.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 18.2 | 15.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 45.3 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **607.8** | **252.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash <sup>(1)</sup> | 1273.0 | 775.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2024: $2.4 and 2023: $2.7) <sup>(1)</sup> | 791.9 | 479.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 364.3 | 374.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 60.7 | 53.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net <sup>(1)</sup> | 64.0 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs <sup>(1)</sup> | 83.6 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets <sup>(1)</sup> | 221.7 | 156.0 |
|  **Total assets** | $**6094.9** | $**3737.2** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1109.0 | 482.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 193.0 | 120.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 746.9 | 544.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable <sup>(1)</sup> | 201.8 | 127.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities <sup>(1)</sup> | 198.2 | 130.9 |
|  **Total liabilities** | **5667.9** | **3450.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 19) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 66,411) | **104.4** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 250,457 and 2023: 249,582) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 150,231 and 2023: 149,707) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.0001 per share, issued and outstanding 2024: 1,986,221 and 2023: 1,979,284)  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 124.8 | 146.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (19.5) | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (182.8) | (210.0) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Accelerant shareholders' equity** | **304.3** | **310.5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** | **18.3** | **(23.8)** |
|  **Total equity** | **427.0** | **286.7** |
|  **Total liabilities and equity** | $**6094.9** | $**3737.2** |

---

<sup>(1)</sup> See Note 6 for details of balances as of December 31, 2023 that were associated with consolidated variable interest entities.

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Operations** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Revenues** | **Revenues** | **Revenues** | **Revenues** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **22.9** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant** | $**27.2** | $**(48.8)** | $**(91.7)** |
|  **Net income (loss) attributable to Accelerant per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $13.71 | $(24.66) | $(46.33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $11.40 | $(24.66) | $(46.33) |
|  **Weighted-average common shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 1983795 | 1979284 | 1979284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 2386353 | 1979284 | 1979284 |

---

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Comprehensive Income (Loss)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $22.9 | $(64.1) | $(95.6) |
|  **Other comprehensive (loss) income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (4.9) | 1.8 | (17.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (losses) gains on fixed maturity securities | (5.7) | 1.4 | (1.6) |
|  **Other comprehensive (loss) income, net of tax** | **(10.6)** | **3.2** | **(18.7)** |
|  **Total comprehensive income (loss)** | **12.3** | **(60.9)** | **(114.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive loss attributable to non-controlling interests | 2.9 | 15.5 | 3.6 |
|  **Comprehensive income (loss) attributable to Accelerant** | $**15.2** | $**(45.4)** | $**(110.7)** |

---

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Equity** 

**Years Ended December 31, 2024, 2023 and 2022** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Balance, January 1, 2022** | $**—** | $**173.8** | $**—** | $**145.5** | $**8.1** | $**(69.5)** | $**257.9** | $**(1.8)** | $**256.1** |
|  Net loss |  |  |  |  |  | (91.7) | (91.7) | (3.9) | (95.6) |
|  Other comprehensive income (loss) |  |  |  |  | (19.0) |  | (19.0) | 0.3 | (18.7) |
|  Issuance of convertible preference shares <sup>(1)</sup> |  | 62.9 | 144.4 |  |  |  | 207.3 |  | 207.3 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (1.8) | (1.8) |
|  Issuance of non-controlling interests |  |  |  |  |  |  |  | 2.7 | 2.7 |
|  **Balance, December 31, 2022** | $**—** | $**236.7** | $**144.4** | $**145.5** | $**(10.9)** | $**(161.2)** | $**354.5** | $**(4.5)** | $**350.0** |
|  Net loss |  |  |  |  |  | (48.8) | (48.8) | (15.3) | (64.1) |
|  Other comprehensive income (loss) |  |  |  |  | 3.4 |  | 3.4 | (0.2) | 3.2 |
|  Issuance of convertible preference shares |  |  | 0.7 |  |  |  | 0.7 |  | 0.7 |
|  Share-based compensation |  |  |  | 4.8 |  |  | 4.8 |  | 4.8 |
|  Acquisition of non-controlling interests in subsidiaries |  |  |  | (4.1) |  |  | (4.1) | (1.4) | (5.5) |
|  Issuance of non-controlling interests |  |  |  |  |  |  |  | 0.5 | 0.5 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (2.9) | (2.9) |
|  **Balance, December 31, 2023** | $**—** | $**236.7** | $**145.1** | $**146.2** | $**(7.5)** | $**(210.0)** | $**310.5** | $**(23.8)** | $**286.7** |
|  Net income (loss) |  |  |  |  |  | 27.2 | 27.2 | (4.3) | 22.9 |
|  Other comprehensive (loss) income |  |  |  |  | (12.0) |  | (12.0) | 1.4 | (10.6) |
|  Issuance of convertible preference shares and contingently issuable detachable warrants  | 104.4 |  |  | 10.1 |  |  | 10.1 |  | 114.5 |
|  Acquisition of non-controlling interests in previously consolidated variable interest entities <sup>(2)</sup> |  |  |  | (39.9) |  |  | (39.9) | 39.9 |  |
|  Share-based compensation |  |  |  | 8.4 |  |  | 8.4 |  | 8.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (3.5) | (3.5) |
|  Issuance of non-controlling interests <sup>(3)</sup> |  |  |  |  |  |  |  | 8.6 | 8.6 |
|  **Balance, December 31, 2024** | $**104.4** | $**236.7** | $**145.1** | $**124.8** | $**(19.5)** | $**(182.8)** | $**304.3** | $**18.3** | $**427.0** |

---

<sup>(1)</sup> Issuance of convertible preference shares included net cash proceeds of $204.8 million and $2.5 million related to a non-cash financing activity consisting of the issuance of 2,500 Class A convertible preference shares to a related party. For further information, refer to Note 16. 

<sup>(2)</sup> For further information related to this acquisition and the corresponding issuance of convertible preference and common shares, refer to Note 6.

<sup>(3)</sup> Refer to Note 17 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Cash Flows** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $22.9 | $(64.1) | $(95.6) |
|  **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gains) losses on investments | (1.9) | (0.5) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.0) | (17.3) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (2.3) | (2.9) | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax (benefits) expenses | (40.9) | 0.3 | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on commutation |  | (4.8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (5.1) | 3.5 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (5.7) | (0.5) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 1.6 | 0.8 | 0.1 |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (319.0) | (221.8) | (114.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (648.3) | (285.7) | (376.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (471.0) | (252.9) | (180.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 7.5 | (162.0) | (74.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs <sup>(1)</sup> | (8.2) | (19.3) | (16.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 540.3 | 326.7 | 241.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 674.8 | 377.0 | 422.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 636.4 | 215.2 | 105.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 68.4 | 32.6 | 59.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 203.0 | 303.4 | 100.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 72.5 | 105.0 | 6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 44.7 | (62.0) | (13.3) |
|  **Net cash provided by operating activities** | **785.7** | **290.0** | **67.5** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 114.8 | 88.6 | 126.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 84.3 | 41.5 | 14.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 0.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 18.6 | 10.7 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | (46.9) | (201.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (500.7) | (73.8) | (56.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (4.3) | (0.9) | (9.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.4) | (0.6) | (6.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | (56.5) | (0.7) | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of subsidiaries, net of cash acquired | (0.5) | 2.8 | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (34.4) | (32.6) | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (1.3) | (0.7) | 0.6 |
|  **Net cash used in investing activities** | **(380.1)** | **(12.6)** | **(147.7)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of convertible preference shares, net of issuance costs <sup>(2)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20.0 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of non-controlling interests in subsidiaries |  | (5.5) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (3.5) | (2.9) | (1.8) |
|  **Net cash provided by financing activities** | **110.3** | **10.3** | **256.0** |
|  **Net increase in cash, cash equivalents and restricted cash** | **515.9** | **287.7** | **175.8** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (18.3) | 4.1 | (15.5) |
|  Cash, cash equivalents and restricted cash at beginning of year | 775.4 | 483.6 | 323.3 |
|  **Cash, cash equivalents and restricted cash at end of year** | $**1273.0** | $**775.4** | $**483.6** |

---

<sup>(1)</sup> Deferred acquisition costs are reduced by the ceding commissions recorded as a reimbursement for acquisition costs of insurance contracts subject to reinsurance.

<sup>(2)</sup> Issuance of convertible preference shares is net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. The 2024 issuance of preference shares included contingently issuable detachable warrants. 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Cash Flows (continued)** 

*See accompanying notes to the consolidated financial statements.* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 45.5 | 20.2 | 21.1 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1225.7 | 775.4 | 482.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 47.3 |  | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1273.0** | $**775.4** | $**483.6** |

---

***<u>Supplemental non-cash activity information:</u>***

For the year ended December 31, 2024, we had non-cash financing activities consisting of the issuance of common shares with a fair value of $7.0 million as consideration for the acquisition of all the outstanding common equity ownership interest in Mission, together with the issuance of convertible preference shares as an anti-dilutive measure to existing shareholders for no consideration. For further information on the Mission acquisition, refer to Note 6.

For the year ended December 31, 2023, we had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. See Note 8 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, we had non-cash financing activities consisting of the issuance of 2,500 Class A convertible preference shares to a related party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related party by way of a $0.5 million loan funded by us. In addition, non-controlling interest increased by $2.3 million due to our acquisition of subsidiaries.

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Notes to Consolidated Financial Statements** 

**1. Nature of business and basis of presentation** 

***Nature of business***

Accelerant Holdings, together with its subsidiary companies ("Accelerant", "we", "us", "our" or the "Company"), connects selected specialty insurance underwriters ("Members") with risk capital partners through its data-driven risk exchange (the "Risk Exchange"). The Company, together with its risk capital partners, provide property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). The Company focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

The Company is the primary operating holding company of the Accelerant group of companies (the "Group"). The ultimate parent company of the Group is Accelerant Holdings LP ("Holdings LP"), a Cayman exempted limited partnership entity.

***Basis of presentation***

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities. Certain prior year comparative information has been reclassified to conform to the current presentation.

**2. Summary of significant accounting policies** 

***Principles of consolidation***

The consolidated financial statements include all the controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests ("VOE"), and variable interest entities ("VIEs") of which we are the primary beneficiary. Non-controlling interests consist of equity that is not attributable directly or indirectly to us. Equity investments in entities that are not consolidated in which we have significant influence over the operating and financial policies are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation.

***Variable interest entities***

VIEs are required to be consolidated by the entity deemed to be the primary beneficiary which is defined as the investor that has the power to direct the activities of the VIE and will absorb a portion of the VIEs expected losses or residual returns that could potentially be significant to the VIE.

To determine whether the Company has a variable interest in a VIE, we analyze whether we are the primary beneficiary of the VIE by considering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's purpose and design, including the risks the VIE intended to pass through to its variable interest
holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms between the VIE and its variable interest holders and other parties involved with the VIE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the power to direct the activities of the VIE, including those that most
significantly impact the VIE's economic performance;

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the obligation to absorb losses or the right to receive benefits from the
VIE, particularly those that could potentially be significant to the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any relevant related party relationships.

We reassess our determination of whether we are the primary beneficiary of a VIE upon changes in facts and circumstances that could potentially change our assessment (i.e., reconsideration events).

***Foreign operations remeasurement and translation***

The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains or losses are reflected in our consolidated statements of operations. Functional currency assets and liabilities are translated into our reporting currency, US dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of other comprehensive (loss) income within shareholders' equity. Amounts included in our consolidated statements of operations are translated using the applicable exchange rates existing during the annual period.

***Business combinations***

The acquisition method of accounting is used to account for all business combinations. The consideration transferred for the acquisition of an entity is comprised of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair values of the assets transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities incurred to the former owners of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity interests issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any asset or liability resulting from additional consideration arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any pre-existing equity interest (non-controlling interest upon consolidation) in the subsidiary.

Identifiable assets acquired (including intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. We recognize any non-controlling interests in the acquired entity at fair value. Acquisition-related costs are expensed as incurred.

Goodwill for business combinations is recorded as the excess of the consideration transferred, over the fair value of the net identifiable assets acquired.

***Use of estimates***

The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of our consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables on unpaid losses, direct and ceding commission income subject to sliding scale adjustments based on actual and expected loss ratios of the underlying insurance policies, valuation allowance on deferred income taxes, fair values of investments, valuation allowance for expected credit losses, recoverability of goodwill and other intangible assets, and useful economic lives of intangible assets.

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***Premiums***

Premiums are generally recorded as written upon inception of the policy, less cancellations. Premiums written are based on contract and policy terms. Premiums are primarily earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

A premium deficiency occurs if the sum of anticipated losses and loss adjustment expenses and deferred acquisition costs ("DAC") exceed the sum of anticipated investment income and unearned premiums. A premium deficiency is recorded by charging any deferred acquisition costs to expenses to the extent required to eliminate the deficiency. If the premium deficiency exceeds deferred acquisition costs, then a liability is accrued for the excess deficiency. No such deficiency has been recognized as of and for the years ended December 31, 2024, 2023 and 2022.

***Deferred policy acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. The costs principally consist of commissions, brokerage, premium tax expenses and direct agency costs. The amounts presented within our consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies we issue, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from our reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs are expensed in the period identified.

***Ceding commission income***

We cede a significant portion of our premiums written to reinsurance companies. This generates ceding commissions which are recorded as a reimbursement for (and reduction of) the pro-rata share of the acquisition costs related to the insurance contracts subject to the reinsurance. Ceding commissions that are more than the proportionate amount of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of the excess deferred ceding commissions is recorded as a component of "Ceding commission income" within our consolidated statements of operations.

Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts. These adjustments often occur well after the ceding commissions are earned based on the development of longer-tail insurance liabilities. In those instances, the commission adjustments are recorded directly as income or loss when determined because they are no longer subject to deferral as the underlying policy periods have ended. Accordingly, in all cases, we adjust ceding commissions as of the reporting date for our best estimate of loss experience for reinsured insurance contracts. Total ceding commission income earned was $249.5 million, $164.2 million and $44.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

***Direct commission income***

The Company operates its Risk Exchange (within the Exchange Services segment - refer to Note 3), its own insurance agencies (that place insurance coverage through a network of MGAs, including independent, partially owned and wholly owned MGAs) and (re)insurance companies. The Risk Exchange generates revenue primarily through commission paid by affiliated and third-party insurance carriers for various agency services and fees paid by third-party reinsurance brokers for placement services.

Our insurance agencies operate through a network of MGAs and third-party claim administrators ("TPAs") that execute various activities on behalf of the Risk Exchange in return for commissions. Transactions among third-

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parties are reflected in our financial statements, while commissions and other amounts paid by and among wholly-owned entities are eliminated in consolidation.

The Exchange Services segment recognizes revenue as direct commission income on a net basis, with its commission income offset by the commission expense paid to MGAs, reflecting that Exchange Services acts in an agency capacity on behalf of the insurance companies in connection with its performance obligations for underwriting, binding, and placement of insurance coverage.

Exchange Services also acts in a principal capacity for the post-placement obligations such as supporting the adjudication of large claims through management of various third-party administrators which perform claims handling and settlement services.

We estimate the stand-alone selling price for each separate performance obligation and allocates the total commission income between the performance obligations. The commissions allocated to the performance obligation of underwriting, binding and placement of insurance coverage are earned upon the effective date of the insurance policy, while the corresponding price allocated to post-placement obligations are recognized over time as the performance obligations are fulfilled on a straight-line basis.

Commissions paid by third-party insurance carriers are also subject to certain contractual clauses that give rise to variable consideration as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions received are subject to adjustment based on the loss experience in the underlying policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions are also subject to return if there are cancellations of the underlying policies.

Commission revenue is only recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. A commission refund liability is estimated for the potential return of commissions.

*<u>Legacy business:</u>* Prior to Accelerant's commencement of underwriting activities in mid-2020, we contracted with other (re)insurance companies in exchange for direct commission income. Such legacy business is subject to sliding scale commissions based on loss experience for the subject insurance policies (whereby favorable development will result in incremental commission income and adverse development will result in a reversal of commission income). For the years ended December 31, 2024, 2023 and 2022, total commission (reversals) income due to (adverse) favorable development related to the Company's legacy business was $(9.6) million, $(5.1) million and $6.9 million, respectively. The total commission refund liability associated with this arrangement was $38.8 million and $29.8 million as of December 31, 2024 and 2023, respectively.

The premiums written under the legacy business were fully reinsured with a third-party reinsurance company, which in turn was subject to a quota share retrocession arrangement that included a requirement to post collateral and funds withheld. As of December 31, 2024 and 2023, there were $18.2 million and $20.0 million, respectively, of aggregate funds withheld and collateral under the retrocession contract recognized as an asset within the Company's balance sheet. The balances are reviewed periodically and are adjusted where required, in line with the claims settlement payments and related experience of the retrocession contract.

***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred.

***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology.

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***Other expenses***

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to stock-based compensation, legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formation costs that support our growing business.

***Income taxes***

The provision for income tax recognized in our consolidated statements of operations consists of current and deferred tax. The calculation of current and deferred tax is based on tax rates and tax laws which have been enacted in the reporting period. The deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. This is assessed based on forecasted future operating results, adjusted for significant non-taxable income and expenses, and specific limits on the use of any unused tax losses or credits. A valuation allowance against deferred tax assets is recorded, if it is more likely than not, that all, or some portion of, the benefits related to these deferred tax assets will not be realized.

Deferred tax liabilities are generally recognized in full, with limited exceptions. Potential tax implications of repatriation from our unremitted earnings that are indefinitely reinvested are driven by facts at the time of distribution. Therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such earnings were remitted. We review all tax positions and determine whether our position is more likely than not to be sustained, upon examination by regulatory authorities. Recognized income tax positions are measured at the largest amount, which has a greater than 50 percent likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

We classify all interest and penalties (if any) related to uncertain tax positions as income tax expense. We did not incur any interest and penalties related to uncertain tax positions, for the years ended December 31, 2024, 2023 and 2022. We did not have any unrecognized tax benefits associated with any uncertain tax positions for the year ended December 31, 2024.

***Cash, cash equivalents and restricted cash***

Cash consists primarily of cash on hand and bank deposits. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of acquisition and are stated at amortized cost, which approximates fair value. Our restricted cash balances are held in segregated accounts and are legally restricted as to withdrawal or usage.

***Investments***

Short-term investments consist of investments with a maturity greater than three months to one year from the date of purchase and are carried at fair value.

Investments in fixed maturity securities consist of bonds with a maturity of greater than one year from the date of purchase. The amortized cost basis of fixed maturity securities is adjusted for the amortization of premiums and accretion of discounts. This amortization or accretion is included in periodic income in our consolidated statements of operations. Our investments in fixed maturity securities are considered available-for-sale and are carried at fair value. Changes in the fair value of available-for-sale investments are recognized as a separate component of shareholders' equity (other comprehensive income (loss)) until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available.

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Our equity securities consist of interests in investment funds that primarily invest in debt securities. Equity securities are measured at fair value with changes in fair value recognized in "Net unrealized gains on investments" in our consolidated statements of operations. Dividends on equity securities and other investments are included in "Net investment income" on the ex-dividend date in our consolidated statements of operations. Realized gains and losses on disposition of investments are based on specific identification of investments sold on the trade date. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in "Net investment income," net of investment management and custody fees, in our consolidated statements of operations.

We have certain unconsolidated investments where we have significant influence over the operating and financial policies of the investee. We account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments in our results for the period in "Net investment income" in our consolidated statements of operations. Any decline in value of equity method investments we consider to be other-than temporary is charged to income in the period in which it is determined.

Other investments include investments in limited partnership and private equity investments in operating entities, as well as associated warrants to acquire additional ownership interests, whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investment from the same issuer occur. The Company recorded $19.8 million, $12.1 million and $3.5 million of income related to these investments for the years ended December 31, 2024, 2023 and 2022, respectively.

We have elected to classify distributions received from equity method investees using the cumulative earnings approach where distributions received are considered returns on investment and are classified as cash inflows from operating activities unless the amount of cumulative distributions received exceed cumulative earnings and are thereby determined to be returns of investment (that would then be classified as cash inflows from investing activities). Any distribution from investments accounted for under the measurement alternative are classified as investing activities.

***Fair value measurement***

Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date, in the principal or most advantageous market for the asset or liability, in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions, and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

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We perform valuations for financial reporting purposes. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of maximizing the use of market-based information.

We use prices from independent pricing vendors to determine fair value estimates of investment funds, which are based on quoted prices in an active market and are disclosed as Level 1. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing vendors has not historically resulted in adjustments to the prices obtained from the pricing service. The independent pricing services used by our vendors obtain actual transaction prices for securities that have quoted prices in active markets. We derive the fair value of fixed maturity securities principally from market price data for identical assets from exchange or dealer markets and from market observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals and are disclosed as Level 2. Rights to acquire equity interests, including warrants, are disclosed as Level 3 due to the use of significant unobservable inputs. We use valuation techniques that rely on internally developed models and reported values from investment managers rather than quoted prices or observable market data. The market for these investments is illiquid and there is no active market.

***Premiums receivable***

Premiums receivable include insurance premiums that are both amounts currently due and not yet due from policyholders as well as amounts due from agents. The balance is reported net of a valuation allowance for expected credit losses. Such allowance is based upon ongoing review of amounts outstanding, the length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2024 and 2023, we had valuation allowance for expected credit losses of $2.4 million and $2.7 million, respectively.

***Goodwill and other intangible assets***

Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination at the date of acquisition. Goodwill is allocated to reporting units based on the expected benefit from the business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. If the goodwill asset is determined to be impaired, it is written down in the period in which the determination is made.

We perform our annual goodwill impairment assessment as of October 1 each year, or more frequently if indicators of impairment exist. For goodwill impairment testing, we have the option to first assess qualitative factors to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of the reporting unit is greater than the carrying amount. If our assessment indicates less than a 50 percent probability that the fair value of a reporting unit is greater than the carrying value or otherwise we elect to bypass the qualitative assessment, we quantitatively estimate the reporting unit's fair value. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.

We determine the fair value of the reporting units using the income approach or the market approach. Under the income approach, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. We prepare cash flow projections based on our estimates of revenue growth rates and operating margins, taking into consideration the historical performance and the current macroeconomic industry and market conditions. Under the market approach, we estimate fair value based on market multiples of earnings, derived from comparable publicly traded companies, with similar characteristics as the reporting unit.

Other intangible assets include finite-lived intangible assets that relate to customer relationships and trademarks. Finite-lived intangible assets are recognized at fair value on the acquisition date and amortized over their

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estimated useful lives. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, generally five to fifteen years, and are reviewed for impairment when events and circumstances indicate that their carrying value may not be recoverable. Estimated useful lives of finite-lived intangible assets are required to be reassessed on at least an annual basis.

Other indefinite-lived intangible assets relate to insurance licenses and are not amortized. We test such assets for impairment annually as of October 1 or more frequently when events and circumstances indicate that their carrying value may not be recoverable.

***Capitalized technology development costs***

We develop internal-use software and implements cloud-computing arrangement software. We capitalize certain of those costs based on the nature of the development activities being performed, including coding, software installation, testing and significant upgrades or enhancements to existing software that result in additional functionality. Costs capitalized to develop internal-use software are amortized using the straight-line method over the estimated useful life, which we generally estimate to be five years, beginning when the software is substantially complete and ready for its intended use. Costs capitalized to implement cloud computing arrangements, are amortized over the term of the hosting arrangement using the straight-line method. Costs associated with activities not described above are expensed as incurred.

We periodically assess the capitalized software's estimated useful lives and potential impairment indicators when there is risk such costs may not be recoverable.

***Unpaid losses and loss adjustment expenses***

Our reserves for losses and LAE include estimates for unpaid claims and claim expenses on reported losses as well as an estimate of losses incurred but not reported ("IBNR"). It represents our best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events amongst other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as our actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in our consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and we account for them as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. Our estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed as new or improved methodologies are developed. The adequacy of the reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods we employ include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by

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underwriting year and development month, segmented into MGAs and products or lines of business as deemed appropriate and material. Our ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because we have limited data to assess our own claims experience given the recently formed nature of our business, we use industry and peer-group data, in addition to our own data, as a basis for selecting our expected paid and reporting patterns.

The recorded reserves represent our best estimate of ultimate liabilities, based on currently known facts, current law, current technology, and reasonable assumptions where facts are not known. Due to the significant uncertainties and related judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

***Reinsurance recoverables and payables***

Our insurance companies use reinsurance to mitigate exposure to losses arising from direct insurance policies, limit liability on specific risks and catastrophes and to stabilize loss experience. We also utilize reinsurance to manage capital (both regulatory and operational) and solvency and as a mechanism to pool risks to maximize diversity of the portfolio.

We purchase various types of reinsurance, including excess of loss contracts (that protect against losses above stipulated amounts) together with quota share contracts (to provide cover for adverse losses on a total portfolio basis). Certain of these reinsurance contracts include risk limiting features, such as loss limits, sliding scale commissions and reinstatement provisions. Risk tolerance is set based on a low probability of exceeding loss limitations. We closely monitor our exposures against the available reinsurance to ensure adequate protection. The impact of the sliding scale commission adjustments following adverse loss experience (resulting in a return of ceding commission to the reinsurers and therefore an offset to the benefit of reinsured losses) could be material to the Company.

Premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Amounts applicable to reinsurance ceded for unearned premiums are reported as Ceded unearned premiums in our consolidated balance sheet.

Certain reinsurance contracts we purchase are retroactive (and take the form of a loss portfolio transfer), whereby the reinsurer agrees to reimburse us because of past insurable events. When a reinsurance contract does not transfer significant insurance risk, we account for the premium paid (net of any amount of premium that will be retained by the reinsurer) as a deposit asset in reinsurance recoverables within our consolidated balance sheets. The amount of the initial deposit asset is adjusted in subsequent reporting periods by calculating an effective yield on the deposit based on actual and expected future payments. Such adjustments are reported as interest income within "Net investment income" in our consolidated statements of operations.

Reinsuring loss exposures does not relieve our obligation to policyholders in the event of nonperformance by the reinsurers, thus a credit and / or dispute exposure exists to the extent that any reinsurer is unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, we evaluate the financial condition of our reinsurers and typically hold collateral in the form of funds withheld, trusts and letters of credit, as security under the reinsurance agreements.

Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the insured business. Reinsurance premiums, commissions, and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts.

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We assess our reinsurance assets for recoverability on a regular basis. If there is objective evidence that the reinsurance asset is not recoverable due to reinsurer insolvency, a contractual dispute, or other reasons, we reduce the carrying amount of the reinsurance asset to our recoverable amount and recognizes that loss in our consolidated statements of operations.

We may periodically enter commutation agreements with our reinsurers. Such agreements result in the termination of all or part of a reinsurance agreement whereby we would assume the obligation to insure the previous loss reserves subject to the reinsurance agreement in exchange for cash or other consideration. Upon execution of a commutation agreement, we reassume the risk of liabilities for losses previously ceded to the reinsurer, while the reinsurer is generally released of our obligations under the commuted (legally extinguished) portions of the reinsurance agreement. Our insurance subsidiaries that originally ceded the insurance business account for a commutation by eliminating their existing reinsurance recoverable and recognizing a gain or loss for the difference between the consideration received and the previously recognized reinsurance recoverable.

*<u>Flywheel Re:</u>* We have entered into a quota share agreement, where we cede certain insured risks to Flywheel Re Ltd. ("Flywheel Re"). Flywheel Re is a Class C Insurer licensed in the Cayman Islands and is a special purpose reinsurance company that provides multi-year collateralized quota share capacity to Accelerant, backed by long-term institutional investors. Flywheel Re is not consolidated in our consolidated financial statements because we i) do not have the power over the activities that most significantly impact Flywheel Re's economic performance, and ii) it is wholly-owned by third-party investors. Each investor group in Flywheel Re purchased preferred shares in a segregated portfolio owned solely by such investor group. The purchase price of the preferred shares was then pledged as collateral to Accelerant Re (Cayman) Ltd. ("Accelerant Re"), the cedent to Flywheel Re under each applicable reinsurance agreement. Accelerant Re cedes premium and losses in accordance with the terms of the applicable reinsurance agreement, to Flywheel Re and all investors are obligated to accept such premium and losses over the course of three underwriting years. Our reinsurance arrangements with Flywheel Re have been contracted on an arm's-length basis.

***Funds held under reinsurance***

Certain of our reinsurance contracts provide for an arrangement where, rather than making a cash payment or transferring investments for ceded premiums written, we hold the related amounts as assets to collateralize the reinsurer's obligations and establish corresponding funds held under reinsurance liabilities.

***Concentrations of credit risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are held with financial institutions of high quality. For equity securities and fixed maturity securities, we manage our credit risk through diversification in terms of instruments by issuer, geographic region and related industry.

The ceding of insurance through our reinsurance partners does not legally discharge us from our primary liability for the full amount of the policy coverage. We will be required to pay the loss and bear the collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, we evaluate the financial condition of our reinsurers and monitor both individual, and concentrations of, credit risk. Refer to Note 8 for more information on how we manage credit risk related to our reinsurance recoverables.

***Segment information***

Accelerant's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer ("CEO"). The CODM has authority and executive oversight over operating decisions and resource allocations such as significant business strategy decisions, capital expenditures, the budget and forecasting processes and all new material

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ventures and contracts. Additionally, the CODM drives the execution of these activities and reviews operating results to assess performance and makes resource allocation decisions. Each segment has a segment manager who reports directly to the CODM.

Adjusted EBITDA, a non-GAAP financial measure, is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the performance of segments, which the CODM utilizes to allocate our resources. We define Adjusted EBITDA as net income (loss) adjusted to remove the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses. We believe the exclusion of the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses is pertinent to understanding Accelerant's performance attributable to our core operating activities, as well as comparability to prior periods and peers. Segment Adjusted EBITDA also excludes certain costs that are not allocated to segments because they are separately managed at the consolidated corporate level. The unallocated costs primarily include general and administrative expenses such as those incurred in the legal and accounting functions.

Refer to Note 3 for more information on our segments.

**Convertible preference shares** 

We have issued convertible preference shares that are evaluated for features that may result in their characterization as permanent equity, temporary equity (often referred to as "mezzanine equity"), or a liability.

We record the Class A and Class B preference shares at their respective fair values on the dates of issuance, net of issuance costs, within permanent equity. Such convertible preference shares are subject to actual liquidation or deemed liquidation events, such as an initial public offering of common shares of the Company, or a sale of the Company. Our Class A and Class B shares are recorded as a component of permanent equity because, while they are subject to redemption on the occurrence of any such liquidation events, all of the holders of equally or more subordinated equity instruments of the Company are also entitled to receive the same form of consideration (for example, cash or shares) upon the occurrence of the event that gives rise to the redemption (that is, all classes of shares subordinate to the Class A and Class B preference shares would also be entitled to be redeemed).

Our Class C preference shares were issued with contingently issuable detachable warrants that only become exercisable on the non-occurrence of an initial public offering or other liquidation event within two years of issuance of the Class C preference shares. Such warrants are equity-linked instruments and are considered issued for accounting purposes. We recorded the Class C preference shares and contingently issuable detachable warrants at their relative fair values on the date of issuance, net of issuance costs, within temporary equity and additional paid in capital, respectively. The Class C preference shares are recorded in temporary equity as they contain redemption rights that are contingent upon the occurrence of actual liquidation or deemed liquidation events of the Company, such as an initial public offering of common shares of the Company, or a sale of the Company, that are not solely within the Company's control, and that such redemption rights are not available to other holders of equally or more subordinated equity instruments of the Company. We deemed the Class C preference shares probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C preference shares at the date of issuance. In subsequent periods, if the Class C preference shares are not converted to common shares and the condition for redemption is met, we will recognize the redemption value immediately. The difference in redemption value from carrying value will be reflected as a deemed dividend and an increase of the Class C preference shares, as well as a corresponding reduction to additional paid in capital and earnings per share. The Class C preference shares would then be subject to cash settlement. If the warrants are never issued, there is no adjustment to the previous amounts in additional paid in capital. If the warrants are issued and are subsequently exercised for common shares, the amount of consideration paid for the exercise price becomes a component of incremental additional paid in capital and par value of the common shares when such common shares are issued in exchange for the warrants.

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**Contingent liabilities** 

We record contingent liability provisions when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

**Earnings per share** 

Our basic earnings per share is based on the weighted average number of common shares outstanding and excludes potentially dilutive securities such as convertible securities.

Our diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding calculated using the if-converted method for all potentially dilutive convertible securities. When the effect of dilutive securities would be anti-dilutive, we exclude these securities from the calculation of diluted earnings per share.

**Share-based compensation** 

Share options we have awarded to employees are measured at fair value at each grant date. We calculate the fair value of the share options using a weighted-average of values derived using the Black-Scholes and Hull-White option-pricing models. The Hull-White model is a trinomial lattice model that incorporates the impact of expected employee exercise behavior to estimate the option value.

Use of such option-pricing models requires us to make several assumptions, including the value of our common shares, estimated equity volatility and expected term to exercise. We evaluate all assumptions employed in the valuation of the share option awards as of each grant date. We estimate volatility based upon comparison to certain publicly traded companies. We determine an expected option term for each hypothetical scenario based on contractual term and exercise probability assumptions, as we do not have sufficient historical data to develop an estimate based upon participant behavior. We use a risk-free interest rate equal to the US treasury bond yield with an equivalent period as the expected option term.

We recognize share-based compensation expense over the requisite service period for awards using the straight-line method and recognize forfeitures as they occur.

***Recent accounting pronouncements***

***Recently adopted accounting pronouncements***

*<u>Measurement of credit losses:</u>* On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2016-13, *Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments*, issued by the Financial Accounting Standards Board ("FASB") in June 2016. The ASU replaced the "incurred loss" approach that was previously applied to determine credit losses with an "expected loss" model for financial instruments measured at amortized cost. The expected loss model changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, premiums receivable and reinsurance recoverables. Our valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets, as well as available for sale securities, are now presented on the financial statements net of the valuation allowance.

We analyzed our reinsurance recoverables, including the current credit quality and credit outlook for reinsurers with at-risk uncollateralized receivable balances. In assessing premium receivables, which are short-term in

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nature, we assessed customer balances leveraging our current process for analyzing collectability of premium receivables. The adoption of the ASU did not have a material impact on our consolidated financial statements and disclosures and no adjustment to the beginning balance of retained earnings was required upon adoption.

*<u>Segment Reporting:</u>* In November 2023, the FASB issued ASU 2023-07, *Segment Reporting, Improvements to Reportable Segment Disclosures*. to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profits or losses in assessing segment performance. We adopted ASU 2023-07 in our annual financial statements for the year ended December 31, 2024, which was applied retrospectively to all prior periods presented. Refer to Note 3 for the expanded segment disclosures.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued an ASU requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

*<u>Income Tax:</u>* In December 2023, the FASB issued an ASU to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

**3. Segment information** 

We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way the CODM assesses performance of the business and makes decisions on the allocation of resources.

***Exchange Services***

Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and risk capital partners and that facilitate the exchange of risk. Insurance companies that join the Risk Exchange pay Accelerant a fixed volume-based fee for sourcing, managing, and monitoring the business they write, and the Risk Exchange pays commissions to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net commissions, fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.

***MGA Operations***

MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a VOE). For further information on our acquisition of Mission and the related issuance of convertible preference and common shares, refer to Note 6.

The Owned Members reporting unit comprises MGAs in which the Company has made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.

***Underwriting***

Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant's consolidated insurance companies and

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Accelerant Re. Our Underwriting segment is a strategic asset that enables access to Accelerant's portfolio for current and prospective risk capital partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.

Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as DAC for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.

We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we generate additional third-party insurance relationships through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions would not be subject to elimination).

The following includes the financial results of our three reportable segments for the years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

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**Financial information by segment:** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $82 | $82 | $— | $167.5 | $249.5 |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1 |  | 38.9 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.7** | **(131.6)** | **602.6** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses <sup>(3) (4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.5 | (56.7) | 227.5 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(15.8)** | $**(52.1)** | $**113.0** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 5.1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**32.0** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

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<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of i) $30.8 million of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense and $4.2 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $78.4 | $78.4 |  | $85.8 | $164.2 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses <sup>(3) (4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

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<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2023 consists of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income <sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Net earned premiums |  |  | 141.2 | 141.2 |  |  | 141.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses <sup>(3) (4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 12.9 | (15.1) | 115.6 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.4)** | $**(31.6)** | $**(39.3)** |
|  Interest expenses |  |  |  |  |  |  | (4.2) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (33.6) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.4) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(84.3)** |

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<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

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<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $10.1 | $39.0 | $31.2 | $80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2022 consists of $11.4 million of system development non-operating costs, $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when we suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other individually insignificant costs. 

We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. We do not allocate assets to reportable segments as we do not use such information, except for (re)insurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments.

All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the years ended December 31, 2024, 2023 and 2022.

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The following table presents our revenues by geography:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $151.2 | $98.3 | $249.5 |
|  Net earned premiums | 165.3 | 61.3 | 226.6 |
|  Direct commission income | 41.9 | 24.8 | 66.7 |
|  Net investment income | 21.0 | 17.9 | 38.9 |
|  Net realized gains on investments |  | 1.9 | 1.9 |
|  Net unrealized gains (losses) on investments | 19.8 | (0.8) | 19.0 |
|  **Total revenues** | $**399.2** | $**203.4** | $**602.6** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $81.5 | $82.7 | $164.2 |
|  Net earned premiums | 77.9 | 27.2 | 105.1 |
|  Direct commission income | 18.6 | 19.0 | 37.6 |
|  Net investment income | 11.6 | 7.7 | 19.3 |
|  Net realized gains on investments | 0.2 | 0.3 | 0.5 |
|  Net unrealized gains on investments | 12.1 | 5.2 | 17.3 |
|  **Total revenues** | $**201.9** | $**142.1** | $**344.0** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income (adjustments) <sup>(1)</sup> | $48.3 | $(4.0) | $44.3 |
|  Net earned premiums | 46.0 | 95.2 | 141.2 |
|  Direct commission income | 2.0 | 32.5 | 34.5 |
|  Net investment income | 1.3 | 1.3 | 2.6 |
|  Net realized losses on investments |  | (3.9) | (3.9) |
|  Net unrealized gains (losses) on investments | 3.4 | (3.1) | 0.3 |
|  **Total revenues** | $**101.0** | $**118.0** | $**219.0** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the years ended December 31, 2024, 2023 and 2022 resulting from the loss experience of covered insurance contracts, refer to Note 9.

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**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $30.6 | $0.3 | $(0.3) | $30.6 |
|  US government and agency | 32.2 | 0.2 | (0.3) | 32.1 |
|  Non-US government and agency | 2.5 | 0.1 |  | 2.6 |
|  Residential mortgage-backed | 19.0 | 0.1 | (0.7) | 18.4 |
|  Commercial mortgage-backed | 2.8 |  |  | 2.8 |
|  Other asset-backed securities | 8.0 |  |  | 8.0 |
|  **Total fixed maturity and short-term investments** | $**95.1** | $**0.7** | $**(1.3)** | $**94.5** |

---

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##### [**Table of Contents**](#toc)
The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $6.9 | $(0.1) | $7.2 | $(0.2) | $14.1 | $(0.3) |
|  US government and agency | 9.5 | (0.3) | 1.1 |  | 10.6 | (0.3) |
|  Residential mortgage-backed | 4.3 | (0.2) | 6.9 | (0.5) | 11.2 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**20.7** | $**(0.6)** | $**15.2** | $**(0.7)** | $**35.9** | $**(1.3)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at December 31, 2024 and 2023 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $105.6 | $104.6 |
|  Due after one year through five years | 277.0 | 275.0 |
|  Due after five years through ten years | 76.4 | 75.0 |
|  Due after ten years | 6.5 | 6.2 |
|  Residential mortgage-backed | 44.4 | 43.0 |
|  Commercial mortgage-backed | 18.6 | 18.4 |
|  Other asset-backed securities | 22.1 | 22.1 |
|  **Total** | $**550.6** | $**544.3** |

---

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

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##### [**Table of Contents**](#toc)
***Equity securities, at fair value***

Our investments in equity securities consisted of mutual funds that primarily invest in high-grade debt securities and were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Equity securities, at fair value** | $**—**  | $**116.7** |

---

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused TPA that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs | 19.0% - 20.0 | $11.0 | 19.0% - 20.0 | $12.7 |
|  Other | 9.4% - 15.0 | 7.2 | 9.4% | 3.0 |
|  **Equity method investments** |  | $**18.2** |  | $**15.7** |

---

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of December 31, 2024, we had unfunded commitments of $2.0 million to our equity method investees.

For the years ended December 31, 2024 and 2023, we received dividends from equity method investees of $1.7 million and $0.8 million, respectively. For the year ended December 31, 2022, we did not receive any dividends from equity method investees.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $26.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 19.1 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  | 0.3 |
|  **Other investments** | $**45.3** | $**25.5** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and

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##### [**Table of Contents**](#toc)
that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the year ended December 31, 2024, we recorded $19.8 million of income as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2023, we recorded $12.1 million of income, net of $0.2 million of impairments, as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2022, we recorded $3.5 million of income as a component of unrealized gains following observable prices related to these investments. We have recognized cumulative income as a component of unrealized gains of $35.4 million, net of $0.2 million of impairments, associated with investments accounted for under the measurement alternative from inception of the related investments.

***Net investment income***

Investment income and expenses were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from equity method investments | $2.3 | $2.9 | $1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on fixed maturity investments | 14.8 | 2.9 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash and cash equivalents | 22.4 | 13.8 | 0.8 |
|  **Gross investment income** | **39.5** | **19.6** | **3.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | (0.6) | (0.3) | (0.4) |
|  **Net investment income** | $**38.9** | $**19.3** | $**2.6** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Net realized gains on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.2 | $0.4 | $(1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on equity securities sold during the year | 0.5 | 0.1 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 1.2 |  |  |
|  **Net realized gains (losses) on investments** | $**1.9** | $**0.5** | $**(3.9)** |
|  **Net unrealized gains (losses) on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (losses) gains on equity securities held at the reporting date | (0.8) | 5.2 | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 8.0 | 3.0 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 11.8 | 9.1 |  |
|  Net unrealized gains on other investments | 19.8 | 12.1 | 3.5 |
|  **Net unrealized gains on investments** | $**19.0** | $**17.3** | $**0.3** |
|  **Net realized and unrealized gains (losses) on investments** | $**20.9** | $**17.8** | $**(3.6)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

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##### [**Table of Contents**](#toc)
***Regulated deposits and restricted assets***

Certain subsidiaries of the Company are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both December 31, 2024 and 2023, which are included in the "Fixed maturity securities available for sale, at fair value" in our consolidated balance sheets.

In addition, we have pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million as of December 31, 2024 in favor of certain ceding companies to collateralize obligations. There were no such pledged assets as of December 31, 2023.

**5. Fair value measurements** 

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | **—** | **544.3** | **—** | **544.3** |
|  **Total assets measured at fair value** | $**—** | $**544.3** | $**—** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $30.6 | $— | $30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 32.1 |  | 32.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 2.6 |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 2.8 |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 8.0 |  | 8.0 |
|  **Total fixed maturity and short-term investments** | **—** | **94.5** | **—** | **94.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value | 116.7 |  |  | 116.7 |
|  **Total assets measured at fair value** | $**116.7** | $**94.5** | $**—** | $**211.2** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2024, 2023 and 2022.

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##### [**Table of Contents**](#toc)
***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $14.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 11.0 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  |  | 0.3 | 0.3 |
|  **Total** | $**—** | $**—** | $**25.5** | $**25.5** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>:* As further described in Note 14, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of December 31, 2024 and 2023. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of December 31, 2024 and 2023.

**6. Variable interest entities** 

***VIEs***

In the normal course of our business activities, we enter into relationships with various entities that are deemed to be VIEs. A VIE is an entity that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has equity investors that lack characteristics of a controlling financial interest (including the ability to
control activities of the entity, the obligation to absorb the entity's expected losses and the right to receive the entity's expected residual returns); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lacks sufficient equity to finance its own activities without additional subordinated financial support.

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##### [**Table of Contents**](#toc)
We consolidate a VIE when we determine that we are the primary beneficiary of that VIE. This analysis includes a review of the VIE's capital structure, related contractual relationships and terms, nature of the VIE's operations and purpose, nature of the VIE's interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.

We are the primary beneficiary if we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to
receive benefits from the VIE that could potentially be significant to the VIE.

***Mission***

Mission, formed in 2021, operates in the US (Mission Underwriting Holdings, LLC, or "Mission US") and in the EU (Mission Holdings Europe Ltd. or "Mission EU"). Each of Mission US and Mission EU operates, pursuant to local licenses as required by its jurisdiction of organization, to support experienced underwriters by providing insurance regulatory, technical infrastructure and product development expertise to them. Each Mission entity was funded principally with loans advanced by the Company in the form of subordinated debt and other working capital arrangements, although at the time of formation ACP Holdings LP ("ACP Holdings") provided the initial equity capital and until 2024 held all the equity of each of Mission US and Mission EU. Also at the time of formation of Mission US and Mission EU, ACP Holdings granted us an option to acquire each of Mission US and Mission EU.

On May 1, 2024, we closed on our acquisition of each of Mission US and Mission EU which we initiated by exercising our options. As described in more detail below, Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Company's financial statements, the exercise of the call option was accounted for as an equity transaction.

The consideration we paid to Accelerant Holdings LP took the form of 6,938 common shares in the Company. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission within our results of operations, holders of the Company's Class A and B convertible preference shares received an additional 875 shares and 525 shares, respectively, in each case without further consideration being paid. The total consideration had a fair value of $7.0 million.

The excess fair value of the consideration we paid as compared to the carrying value of the acquired non-controlling interest in Mission is reflected as a reduction in additional paid-in capital of $39.9 million, with a corresponding increase of non-controlling interests of $39.9 million in our consolidated statements of equity for the year ended December 31, 2024.

Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Company.

Prior to May 1, 2024, Mission was determined to be a VIE, as it lacked sufficient equity at risk and was primarily financed with our subordinated debt. As a result of this determination, we assessed whether we were the primary beneficiary and, thus, would be required to consolidate Mission. We were exposed to a significant amount of income and losses of Mission and we had the substantive power to direct the activities that most significantly impacted Mission. On this basis, we had determined that we were the primary beneficiary of Mission and consolidated it.

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##### [**Table of Contents**](#toc)
The following table presents the total assets and total liabilities (after elimination of intercompany balances) associated with our variable interest in Mission as reported in our consolidated balance sheets as of December 31, 2023.

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | $30.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 49.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 0.9 |
|  **Assets of consolidated VIEs** | $**107.5** |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | $4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 18.2 |
|  **Liabilities of consolidated VIEs** | $**22.3** |

---

**7. Revenue from contracts with customers** 

The following table presents our revenues from contracts with third parties by geographical market. All revenue from contracts with customers is generated by our Exchange Services and MGA Operations segments, specifically by owned MGAs that provide insurance products and services to third party insurers that is not subject to elimination in consolidation. The tables below also include the revenues from our legacy business referenced in Note 2.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $41.9 | $16.6 | $58.5 |
|  Loss experience adjustments |  | (9.6) | (9.6) |
|  Other revenue |  | 17.8 | 17.8 |
|  **Direct commission income** | $**41.9** | $**24.8** | $**66.7** |
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $18.6 | $10.8 | $29.4 |
|  Loss experience adjustments |  | (4.8) | (4.8) |
|  Other revenue |  | 13.0 | 13.0 |
|  **Direct commission income** | $**18.6** | $**19.0** | $**37.6** |
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $2.0 | $13.9 | $15.9 |
|  Loss experience adjustments |  | 5.9 | 5.9 |
|  Other revenue |  | 12.7 | 12.7 |
|  **Direct commission income** | $**2.0** | $**32.5** | $**34.5** |

---

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##### [**Table of Contents**](#toc)
**8. Reinsurance** 

We enter into reinsurance agreements to limit our exposure to large losses and to enable us to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

We use extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage our exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align our interests with those of our reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Written premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2640.0 | $1608.3 | $1200.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 266.3 | 89.5 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2651.7) | (1506.9) | (1013.8) |
|  **Net written premiums** | $**254.6** | $**190.9** | $**186.0** |
|  **Earned premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2103.7 | $1304.5 | $779.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 127.9 | 14.9 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2005.0) | (1214.3) | (637.4) |
|  **Net earned premiums** | $**226.6** | $**105.1** | $**141.2** |
|  **Loss and LAE:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $1136.1 | $669.6 | $433.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.0 | 7.6 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (1044.8) | (596.9) | (332.3) |
|  **Net loss and LAE** | $**167.3** | $**80.3** | $**99.5** |

---

***Reinsurance transactions***

*<u>Loss portfolio transfer</u>:* Effective December 2023, certain of our insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). The reinsurance counterparty reinsures all of the Company's retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby we will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. At inception, we recorded a deposit asset of $130.3 million equal to the $136.5 million premium consideration paid, less the $6.2 million premium to be retained by the reinsurer (irrespective of the experience of the contract) included in "Other assets" within our consolidated balance sheets.

The overall premium is held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld are credited with interest at a fixed annual rate that inures to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

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For the year ended December 31, 2024, we reduced the deposit assets by $47.4 million attributed to actual recoveries. The deposit asset reported as of December 31, 2024, is comprised of expected recoveries of $82.9 million, net of accretion, calculated using the interest method.

*<u>Commutation</u>*: In December 2023, we completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

*<u>Endorsements of existing quota share agreements</u>*: In November 2023, the Company and certain of our reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Reinsurance recoverables on unpaid losses and LAE | $1069.5 | $605.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 281.4 | 162.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 82.9 | 130.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commutation consideration receivable |  | 81.3 |
|  **Total other reinsurance recoverables** | **364.3** | **374.5** |
|  **Reinsurance recoverables** | $**1433.8** | $**980.0** |

---

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of December 31, 2024, 59% were with reinsurers having an A.M. Best rating of A- (excellent) or better. We require reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables.

As of December 31, 2024 and 2023, all reinsurance recoverables with non-rated reinsurers were over collateralized and, accordingly, required no credit valuation allowance. The credit valuation allowance associated with reinsurance recoverables with reinsurers having an A.M. Best rating of A- or better was $0.4 million and $0.3 million as of December 31, 2024 and 2023, respectively.

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**9. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by Accelerant:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $53.0 | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) | (35.0) |
|  Foreign currency translation | (0.4) | 0.7 |  |
|  **Balance as of December 31,** | $**60.7** | $**53.0** | $**26.6** |

---

The following table presents the amounts of ceding commissions deferred and amortized:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $120.4 | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (249.5) | (164.2) | (44.3) |
|  Foreign currency translation | 3.4 | (2.6) |  |
|  **Balance as of December 31,** | $**193.0** | $**120.4** | $**84.5** |

---

As disclosed in Note 2, we cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Certain of our reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the years ended December 31, 2024, 2023 and 2022 included reductions of $15.5 million, $19.1 million and $29.0 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

**10. Income taxes** 

During 2024, the Company and its subsidiaries operated businesses in Bermuda, Belgium, the Cayman Islands, Canada, France, Greece, Italy, Ireland, Malta, Puerto Rico, Spain, Sweden, UK, and US. Under current law of the Cayman Islands and Bermuda, we are not subject to any corporate income taxes.

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The Company is incorporated, and is an exempted company, in the Cayman Islands. The US, UK and EU are the most significant regions contributing to the overall taxation of the Company for the years ended December 31, 2024, 2023 and 2022.

The components of income taxes attributable to operations by jurisdiction were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Income (loss) before income taxes:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $71.2 | $13.3 | $(52.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 45.9 | (17.0) | (20.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (85.1) | (40.2) | (12.1) |
|  **Income (loss) before income taxes** | $**32.0** | $**(43.9)** | $**(84.3)** |
|  **Current income tax expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $36.1 | $6.6 | $4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 13.1 | 13.2 | 12.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.8 | 0.1 |  |
|  **Total current income tax expense** | **50.0** | **19.9** | **17.1** |
|  **Deferred income tax (benefit) expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $(23.9) | $1.2 | $(5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | (16.6) | (0.9) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (0.4) |  |  |
|  **Total deferred income tax (benefit) expense** | **(40.9)** | **0.3** | **(5.8)** |
|  **Income tax expense** | $**9.1** | $**20.2** | $**11.3** |

---

Our expected income tax expense (benefit) has been computed as the sum of the income (loss) before income taxes in each jurisdiction, multiplied by the jurisdiction's applicable statutory tax rate. The applicable statutory tax rates by jurisdiction were as follows: Bermuda (0.0%), Belgium (25.0%), the Cayman Islands (0.0%), Canada (26.5%), France (25.0%), Greece (22.0%), Italy (27.9%), Ireland (12.5%), Malta (35.0%), Puerto Rico (4.0%), Spain (25.0%), Sweden (20.6%), UK (25.0%), and US (21.0%).

Our actual income tax expense (benefit) differs from each jurisdiction's statutory tax rate applied to the applicable income (loss) before income taxes in each jurisdiction due to the tax effects of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| ***(in millions)*** | **Income<br>before**<br>**income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** |
|  Income tax expense computed at statutory tax rate applied to the subcomponents of income (loss) by jurisdiction | $32 | $24 | $(43.9) | $(0.1) | $(84.3) | $(16.1) |
|  Tax effects of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance |  | (9.7) |  | 16.4 |  | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision to return adjustment |  | (2.0) |  | (0.7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses |  | 1.9 |  | 2.2 |  | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income |  | (2.6) |  | (0.8) |  | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US state income taxes |  | 1.5 |  | 1.6 |  | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in entity tax status |  | (5.2) |  |  |  | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable gain on intercompany transfer |  | 1 |  | 2.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 0.2 |  | (0.7) |  | 0.2 |
|  **Total** | $**32.0** | $**9.1** | $**(43.9)** | $**20.2** | $**(84.3)** | $**11.3** |

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The relationship of our income tax expense to our pre-tax income (loss) can be atypical because our taxable income has predominately been generated in the US, UK and Ireland, resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities"). Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

The composition of our effective tax rates among our tax-paying and non-tax paying entities that demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** | **2022** | **2022** | **2022** |
| ***(in millions)*** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.3) | $32.0 | $90.3 | $(134.2) | $(43.9) | $47.9 | $(132.2) | $(84.3) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **6.4%** | **—** | **28.4%** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.4)%** |

---

***Deferred taxes***

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our ability to realize deferred tax assets depends on our ability to generate sufficient taxable income of the same character, within the carryback and carryforward periods permitted within each tax jurisdiction. In assessing future taxable income, we considered all sources of taxable income available to realize our deferred assets, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carry back years and prudent and feasible tax-planning strategies.

We concluded that a valuation allowance of $45.4 million is required as of December 31, 2024. For territories where no valuation allowance is required as of December 31, 2024, we are of the opinion that it is more-likely-than-not that sufficient taxable income will be earned for which the deferred tax assets can be utilized.

During the third quarter of 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group, as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. As noted in the rate reconciliation above, this benefit was offset by $4.9 million of additional valuation allowances, resulting in a net $9.7 million tax benefit recorded during 2024. The additional valuation allowances were primarily related to operating losses and net deferred tax assets in jurisdictions that we are unable to recognize benefits from due to a history of recurring losses.

If changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities, the valuation allowance may need to be adjusted in the future.

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The net deferred tax asset comprises the tax effects of temporary differences related to the following:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Deferred tax assets:** |  |  |
|  Net operating loss | $32.9 | $29.8 |
|  Deferred ceding commission | 49.2 | 21.7 |
|  Unearned premiums | 2.6 | 2.5 |
|  Accrued compensation | 2.0 | 1.3 |
|  Intangible assets | 4.4 | 0.4 |
|  Outside basis difference in partnership investments | 7.4 |  |
|  Other | 4.3 | 3.5 |
|  Deferred tax assets before valuation allowance | 102.8 | 59.2 |
|  Valuation allowance | (45.4) | (46.5) |
|  **Deferred tax assets net of valuation allowance** | **57.4** | **12.7** |
|  **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (7.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (2.3) |
|  **Total deferred tax liabilities** | **(7.2)** | $**(2.3)** |
|  **Net deferred tax assets** | $**50.2** | $**10.4** |

---

The amount and timing of realizing the benefits of our net operating loss carryforwards depend on future taxable income and limitations imposed by tax laws. As of December 31, 2024, our net operating loss carryforwards were as follows:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2024** | **Deferred tax assets on<br>net operating loss** |
|  **Net operating loss carryforwards by jurisdiction:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Belgium <sup>(1)</sup> | $107.8 | $27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | 9.2 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Malta <sup>(1)</sup> | 4.2 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK | 7.7 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other | 2.4 | 0.6 |
|  **Total deferred tax asset on net operating losses** |  | $**32.9** |

---

<sup>(1)</sup> Jurisdictions where the net operating loss has a full valuation allowance.

We did not incur any interest and penalties related to uncertain tax positions for the years ended December 31, 2024, 2023 and 2022. We did not have any accruals for uncertain tax positions nor any unrecognized uncertain tax benefits as of December 31, 2024.

The Company and its subsidiaries file income tax returns in their respective jurisdictions. We are not currently under audit for income taxes in any jurisdiction. The statute of limitations remains open in various jurisdictions from 2019 and forward.

For the year ended December 31, 2024, we consider our earnings within each jurisdiction to be indefinitely reinvested, and as such, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.

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Should the subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, we may be subject to withholding taxes in certain jurisdictions. The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute.

Under the Organization for Economic Co-operation and Development (OECD) / G20 Inclusive Framework, 140 countries agreed to enact a two-pillar solution to address the digitalization of the economy. The OECD's Pillar Two Model Rules introduce global changes to the international tax framework. Large multinational businesses with greater than €750 million total revenue are required to pay a minimum effective tax rate under Pillar Two of 15% on income arising in each jurisdiction where they operate. The proposed rules took effect for tax years beginning on January 1, 2024 in many jurisdictions. We are subject to these rules given our gross earned premiums are more than €750 million and the minimum tax is treated as a period cost. The Pillar Two minimum tax expense for the current year ended December 31, 2024 was $0.7 million.

**11. Goodwill, other intangible assets and capitalized technology development costs** 

***Goodwill***

We have assigned goodwill to our reporting units for impairment testing purposes. As of December 31, 2024, we have two reporting units with goodwill - Owned Members within the MGA Operations segment and Underwriting (whereby the operating unit for impairment testing was at the operating segment level).

A roll forward of goodwill by reportable segment as of and for the years ended December 31, 2024, 2023 and 2022 are as follows:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **Underwriting** | **MGA Operations** | **Total** |
|  **Balance as of January 1, 2022** | $**1.4** | $**11.2** | $**12.6** |
|  Acquisition of business <sup>(1)</sup> |  | 8.7 | 8.7 |
|  Measurement period adjustments | (0.9) |  | (0.9) |
|  Foreign currency translation | (0.2) | (1.9) | (2.1) |
|  **Balance as of December 31, 2022** | $**0.3** | $**18.0** | $**18.3** |
|  Acquisition of business <sup>(1)</sup> | 1.2 | 0.8 | 2.0 |
|  Foreign currency translation |  | 0.4 | 0.4 |
|  **Balance as of December 31, 2023** | $**1.5** | $**19.2** | $**20.7** |
|  Acquisition of business <sup>(1)</sup> |  | 10.8 | 10.8 |
|  Foreign currency translation | (0.1) | (0.5) | (0.6) |
|  **Balance as of December 31, 2024** | $**1.4** | $**29.5** | $**30.9** |

---

<sup>(1)</sup> Refer to Note 17 for additional information pertaining to business combinations and related goodwill determination.

We performed a qualitative assessment of its goodwill for impairment as of the years ended December 31, 2024, 2023 and 2022 and in each case we determined that it was more likely than not that the estimated fair value of the reporting units with goodwill exceed their respective carrying values.

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***Other intangible assets***

Our other intangible assets, acquired in connection with its business combination activities, accumulated amortization and their carrying amounts were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $29.6 | $(8.9) | $20.7 |
|  Licenses and other | 13.0 | (0.6) | 12.4 |
|  **Total** | $**42.6** | $**(9.5)** | $**33.1** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $24.9 | $(6.4) | $18.5 |
|  Licenses and other | 12.7 | (0.4) | 12.3 |
|  **Total** | $**37.6** | $**(6.8)** | $**30.8** |

---

Included in the gross carrying amounts of Licenses and other was $11.0 million of indefinite-lived licenses as of December 31, 2024 and 2023. We performed a qualitative assessment for impairment and the useful lives of its indefinite and finite lived intangible assets, as applicable, and we determined there were no impairments or need to change the useful lives of the finite lived intangibles assets as of December 31, 2024 and 2023.

***Capitalized technology development costs***

Our capitalized technology development costs, accumulated amortization and their carrying amounts are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $117.1 | $(33.5) | $83.6 |

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $84.1 | $(15.0) | $69.1 |

---

There was no change in estimated useful lives of other intangible assets and capitalized technology development costs for the years ended December 31, 2024, 2023 and 2022. The weighted-average remaining useful life is 7.4 years for customer relationships and 3.7 years for capitalized technology development costs. For the year ended December 31, 2024, we recorded an impairment of $3.5 million of capitalized technology development costs, which is included in the "Depreciation and amortization" in our consolidated statements of operations. There was no impairment of other intangible assets and capitalized technology development costs for the year ended December 31, 2023. Depreciation and amortization presented in our consolidated statements of operations were $26.6 million, $14.5 million and $5.8 million for the years ended December 31, 2024, 2023 and 2022, respectively, the majority of which represents amortization expenses of other intangible assets and capitalized technology development costs.

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As of December 31, 2024, estimated amortization expenses of other intangible assets and capitalized technology development costs to be recognized by the Company over the next five years are as follows:

---

| | |
|:---|:---|
|  | **Estimated<br>amortization<br>expenses** |
| **Years Ended December 31,** | ***(in millions)*** |
| 2025 | $26.8 |
| 2026 | 27.0 |
| 2027 | 25.1 |
| 2028 | 13.6 |
| 2029 | 6.4 |

---

**12. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $58.6 | $66.0 |
|  Net deferred tax assets (refer to Note 10) <sup>(2)</sup> | 51.6 | 10.4 |
|  Commission income receivable | 28.3 | 17.4 |
|  Funds withheld by reinsurers | 18.2 | 20.0 |
|  Deferred offering costs <sup>(3)</sup> | 16.0 | 12.4 |
|  Prepaid expenses | 11.8 | 4.2 |
|  Related party receivables (refer to Note 18) | 7.6 | 7.1 |
|  Prepaid retrocession premium (refer to Note 8) | 5.3 | 6.2 |
|  Other | 24.3 | 12.3 |
|  **Total** | $**221.7** | $**156.0** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> Total net deferred tax assets presented in Note 10 are $50.2 million. However, net deferred tax assets may not be offset with net deferred tax liabilities from different tax jurisdictions. As of December 31, 2024, one of our tax jurisdictions had $1.4 million of net deferred tax liabilities, which is included in "Accounts payable and other liabilities" in our consolidated balance sheets. All other jurisdictions had aggregate net deferred tax assets of $51.6 million. 

<sup>(3)</sup> As of the date of completion of these financial statements, the Company is preparing for its planned initial public offering. In the event that the Company postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

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**13. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $772.5 | $415.4 | $182.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 605.5 | 333.4 | 144.3 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **167.0** | **82.0** | **37.7** |
|  Acquired reserves from business combinations |  | 6.1 |  |
|  Reserves reassumed under commutation agreement <sup>(1)</sup> |  | 74.7 |  |
|  Incurred losses and LAE related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 152.2 | 75.4 | 94.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 15.1 | 4.9 | 4.8 |
|  **Total incurred losses and LAE** | **167.3** | **80.3** | **99.5** |
|  Paid losses and LAE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (28.8) | (32.2) | (32.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (76.8) | (49.0) | (20.6) |
|  **Total paid losses and LAE** | **(105.6)** | **(81.2)** | **(53.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | (3.8) | 5.1 | (1.9) |
|  **Net reserve for unpaid losses and LAE, end of year** | **224.9** | **167.0** | **82.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of year | 1069.5 | 605.5 | 333.4 |
|  **Gross reserve for unpaid losses and LAE, end of year** | $**1294.4** | $**772.5** | $**415.4** |

---

<sup>(1)</sup> Amount is presented net of a $4.1 million settlement of net receivables from the counterparty upon commutation. 

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

The increase in incurred losses and LAE ("adverse development") attributable to prior accident years of $15.1 million for the year ended December 31, 2024 primarily related to the EU and UK general liability and property portfolio for Members that we have either discontinued or subject to significant responsive underwriting actions.

Adverse development attributable to prior accident years of $4.9 million for the year ended December 31, 2023 was primarily driven by $2.8 million of adverse development on certain UK legacy discontinued business, including from a previous acquisition, in addition to $2.1 million related to US commercial auto reserves.

Adverse development attributable to prior accident years of $4.8 million incurred during the year ended December 31, 2022 primarily related to adverse development associated with one large MGA with UK commercial property and liability exposures. Such losses do not include the impacts of negative sliding scale commission adjustments resulting from increased loss estimates that we recognize as a component of ceding commission income. For further information, refer to Note 9.

***Lines of business***

Due to the nature of business written and the distribution channels used by Accelerant, (i.e., specialist and tailor-made products sold via MGAs), we perform day-to-day monitoring and oversight of the performance at the

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individual MGA level, with splits into lines of business or products where appropriate. This granular and detailed analysis and monitoring is designed to provide appropriate oversight over the delegated business and timely detection of any trends. We analyze the performance within three main lines of business, namely Property, Liability and Other.

Property losses are generally reported, settled and paid within a short period of time from the date of loss. However, property can be impacted by catastrophe losses which can be more complex than non-catastrophe property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments, potentially extending the period it takes to settle and pay claims.

Our Liability insurance products generally cover exposures where most claims are reported without a significant time lag. However, since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined.

Our Other category primarily encompasses motor, marine and surety business. We perform this aggregation solely for reporting purposes considering the materiality of these sub-segments.

***Foreign currency***

We translate the loss development for operations outside of the US for all accident years using the constant currency exchange rates as of December 31, 2024. Although this approach requires adjusting all prior accident year information for use in the tables, the changes in exchange rates do not impact incurred and paid loss development trends.

The following is information about incurred and paid losses development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities included within the net incurred loss amounts.

***Incurred loss and allocated loss adjustment expense ("ALAE"), net of reinsurance***

The following tables represent our incurred loss and ALAE, net of reinsurance, less cumulative paid claims and ALAE by business line as of December 31, 2024, net of reinsurance, as well as cumulative claims frequency and the total IBNR liabilities plus expected development on reported claims included within the net incurred claims amount. We have adjusted these tables for accident years 2019 through 2022 to present the retrospective effects of the commutation reinsurance transaction described in Note 8.

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***Property***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2019 | $1.1 | $1.3 | $1.3 | $1.2 | $1.4 | $1.4 | $— | 3529 |
| 2020 |  | 17.7 | 19.0 | 17.5 | 23.2 | 22.7 |  | 12319 |
| 2021 |  |  | 10.9 | 14.6 | 23.7 | 23.4 |  | 12906 |
| 2022 |  |  |  | 59.0 | 77.8 | 85.6 | 0.1 | 17776 |
| 2023 |  |  |  |  | 45.7 | 41.3 | 1.3 | 16572 |
| 2024 |  |  |  |  |  | 71.1 | 34.8 | 15662 |
|  |  |  |  |  | **Total** | $**245.5** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2019 | $— | $0.3 | $0.3 | $0.5 | $0.8 | $1.4 |
| 2020 |  | 1.7 | 11.7 | 15.4 | 18.8 | 22.5 |
| 2021 |  |  | 1.7 | 13.3 | 17.6 | 22.9 |
| 2022 |  |  |  | 28.3 | 47.9 | 83.0 |
| 2023 |  |  |  |  | 29.2 | 36.8 |
| 2024 |  |  |  |  |  | 17.6 |
|  |  |  |  |  | **Total** | $**184.2** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**61.3** |

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***Liability***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2019 | $0.4 | $0.4 | $0.4 | $0.4 | $1.3 | $1.5 | $— | 2001 |
| 2020 |  | 6.4 | 7.3 | 7.1 | 9.8 | 12.7 | 0.6 | 2522 |
| 2021 |  |  | 9.5 | 10.8 | 15.5 | 19.4 | 2.0 | 5061 |
| 2022 |  |  |  | 29.8 | 46.5 | 51.2 | 12.7 | 8142 |
| 2023 |  |  |  |  | 25.0 | 22.4 | 9.4 | 9339 |
| 2024 |  |  |  |  |  | 47.2 | 28.8 | 8913 |
|  |  |  |  |  | **Total** | $**154.4** |  |  |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2019 | $— | $0.1 | $0.1 | $0.2 | $1.2 | $1.2 |
| 2020 |  | 0.5 | 4.2 | 5.4 | 7.4 | 7.6 |
| 2021 |  |  | 0.6 | 1.9 | 4.0 | 5.4 |
| 2022 |  |  |  | 2.6 | 10.7 | 11.3 |
| 2023 |  |  |  |  | 1.7 | 3.4 |
| 2024 |  |  |  |  |  | 4.0 |
|  |  |  |  |  | **Total** | $**32.9** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**121.5** |

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***Other***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
|  | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2020 | $0.2 | $0.2 | $0.2 | $0.9 | $0.8 | $— | 4306 |
| 2021 |  | 7.0 | 9.4 | 18.3 | 18.5 | 1.3 | 9276 |
| 2022 |  |  | 5.8 | 21.9 | 21.0 | 2.2 | 20383 |
| 2023 |  |  |  | 9.2 | 9.9 | 2.8 | 30937 |
| 2024 |  |  |  |  | 31.9 | 16.4 | 33774 |
|  |  |  |  | **Total** | $**82.1** |  |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2020 | $— | $0.1 | $0.1 | $0.4 | $0.8 |
| 2021 |  | 2.9 | 5.6 | 11.1 | 15.7 |
| 2022 |  |  | 2.1 | 4.3 | 16.4 |
| 2023 |  |  |  | 1.4 | 4.9 |
| 2024 |  |  |  |  | 7.1 |
|  |  |  |  | **Total** | $**44.9** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**37.2** |

---

The reconciliation of our net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows:

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| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2024** |
|  **Net outstanding liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | $61.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 37.2 |
|  **Liabilities for unpaid losses and ALAE, net of reinsurance** | **220.0** |
|  **Reinsurance recoverables on unpaid claims** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | 295.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 592.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 181.4 |
|  **Total reinsurance recoverables on unpaid losses and LAE** | **1069.5** |
|  **Unallocated LAE** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 3.0 |
|  **Total unallocated LAE** | **4.9** |
|  **Total unpaid losses and LAE** | $**1294.4** |

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***Claims duration***

The following table presents the historical average annual percentage payout, net of reinsurance on an accident year basis at the same level of disaggregation as presented in the claims development tables above. Given we established operations in 2019, the typical full payout pattern to 100% is not yet available.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** |
|  Property | 15% | 20% | 12% | 12% | 10% | 30% |
|  Liability | 6% | 17% | 7% | 12% | 45% | 3% |
|  Other | 8% | 10% | 18% | 21% | 24% |  |

---

<sup>(1)</sup> Average annual percentage payout is calculated using a paid loss and ALAE development pattern based on an actuarial analysis of the paid loss and ALAE movements by accident year for each disaggregation category. Our average annual percentage payouts shown have been scaled to align with historical expected total payment development after 6 years. 

**14. Debt** 

We had the following senior unsecured debt outstanding as of December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Senior unsecured debt | $125.0 | $123.3 |
|  Less: unamortized debt issuance costs | (3.6) | (3.0) |
|  **Senior unsecured debt** | $**121.4** | $**120.3** |

---

The following table presents estimated future repayments of long-term debt as of December 31, 2024, excluding the debt issuance costs which will be amortized over the remaining term:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| ***(in millions)*** | **Total** | **2025** | **2026** | **2027** | **2028** | **2029** |
|  **Senior unsecured debt** | $125.0 | $0.8 | $3.1 | $5.9 | $5.7 | $109.5 |

---

During the third quarter of 2024, we amended our syndicated loan agreement related to our senior unsecured debt facility including Euro and US dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the amended credit agreement, we refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single US dollar denominated facility. In addition, the credit agreement was amended to add a $50 million revolving credit facility (all of which was unutilized and available as of December 31, 2024).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows us to withdraw predefined amounts of the approved total US Dollar aggregate principal amount. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the

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applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the years ended December 31, 2024, 2023 and 2022 was $12.1 million, $10.9 million and $4.2 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts we prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of December 31, 2024, we were in compliance with all such covenants.

**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Premium tax payables | $53.7 | $36.0 |
|  Deposit liabilities <sup>(1)</sup> | 43.9 |  |
|  Commission refund liabilities | 38.8 | 29.8 |
|  Trade payables | 13.8 | 9.5 |
|  Accrued expenses and other | 48.0 | 55.6 |
|  **Total** | $**198.2** | $**130.9** |

---

<sup>(1)</sup> During the third quarter of 2024, we assumed loss and loss adjustment expense reserves in a novation transaction with an unaffiliated insurer who additionally provided coverage for adverse development on the novated loss reserves. We accounted for the arrangement using deposit accounting because the contract did not transfer significant insurance risk. 

**16. Equity** 

***Common shares:***

As of December 31, 2024 and 2023, there are 3,019,667 and 2,907,145 shares authorized, respectively, with a par value of $0.0001 per share. As of December 31, 2024 and 2023, there were 1,986,221 and 1,979,284 shares, respectively, issued and outstanding.

The Company's common shares confer upon its holders the following rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to participate and vote in the Company's general meetings, whether regular or extraordinary. Each
share entitles its holder, when attending and participating in the voting in person or via agent or letter, to one vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to share in the distribution of dividends, whether in cash or in the form of bonus share, the
distribution of assets or any other distribution pro-rata to the par value of the shares held by them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to share in the distribution of the Company's excess assets upon liquidation pro-rata to the par value of the shares held by them.

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***Preference shares:***

Convertible preference shares authorized, issued and outstanding as of December 31, 2024 consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 250,459 Class A shares authorized, 250,457 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 150,233 Class B shares authorized, 150,231 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 66,500 Class C shares authorized, 66,411 issued and outstanding

Convertible preference shares authorized, issued and outstanding at December 31, 2023 consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 249,583 Class A shares authorized, 249,582 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 149,708 Class B shares authorized, 149,707 issued and outstanding

<u>Class</u> <u>C preference share issuance in 2024</u>: In 2024, we issued 53,308 Class C convertible preference shares to third-party investors for $100.5 million of gross proceeds, 10,874 Class C convertible preference shares to the owners of the immediate parent entity for $20.5 million of gross proceeds, and 2,229 Class C convertible preference shares to certain executives of the Company for $4.2 million gross proceeds. There was a total of 66,411 Class C preference shares issued and total net proceeds of $114.5 million, after giving effect to $10.7 million in issuance costs.

<u>Common share, Class</u> <u>A preference share and Class</u> <u>B preference share issuance in 2024</u>: As referenced in Note 6, there were 6,938 common shares, 875 Class A preference shares and 525 Class B preference shares issued in connection with our acquisition of the equity interests in Mission.

<u>Class</u> <u>B preference share issuance in 2023</u>: In February 2023, we issued 681 Class B convertible preference shares to third-party investors for $0.7 million gross proceeds and 223 Class B convertible preference shares to certain executives of the Company for $0.2 million gross proceeds. The total capital raised in 2023 was $0.7 million, net of $0.2 million in issuance costs.

<u>Class</u> <u>B preference share issuance in 2022</u>: In 2022, we issued 89,155 Class B convertible preference shares to third-party investors for $90.0 million of gross proceeds as well as 59,648 Class B convertible preference shares to the owners of the immediate parent entity for $60.2 million of gross proceeds.

<u>Class</u> <u>A preference share issuance in 2022</u>: In 2022, we issued 36,000 Class A convertible preference shares to third-party investors for $36.0 million in gross proceeds as well as 27,500 Class A convertible preference shares to the owners of the immediate parent company for $27.5 million in gross proceeds. We also issued 2,500 Class A convertible preference shares to a related party in settlement of an outstanding loan balance of $2.5 million. In addition, in 2022, 866 Class A convertible preference shares were issued to certain executives of the Company for $0.9 million gross proceeds.

The total capital raised in 2022 was $207.3 million, net of $9.8 million in issuance costs. Total cash proceeds from the 2022 offerings were $204.8 million (representing the $207.3 million total capital less the $2.5 million non-cash settlement of the outstanding loan balance).

The Class A and Class B preference shares are convertible to common shares upon an initial public offering of the Company, as well as in the case of other defined liquidation events. In the case of such an initial public offering or a liquidation event, all other equity holders of the Company will also participate and receive the same form of consideration. The Class A and Class B preference shares are subject to an accreted liquidation preference of 8% and 16%, respectively. The holders of the Class A and Class B preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class A and Class B preference shares have not appreciated to the sum of the initial investment and the accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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The Class C preference shares are convertible to common shares subject to the occurrence of an initial public offering or other defined liquidation event. The Class C preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 58,331 detachable warrants (42,902 warrants with an exercise price approximating 75% of the independently determined fair value of the Company as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 15,429 warrants with an exercise price approximating 150% of the Issuance Date Valuation.

If a holder of Class C preference shares elects to convert Class C preference shares to common shares, the holder will receive Class A or Class B common shares, as applicable, equivalent to the same number of the Class C preference shares subject to conversion. If a holder of the Class C preference shares elects, prior to the first anniversary of the Class C Issuance Date, to redeem such holder's shares for cash, the holder will receive 1.4 times such holder's initial investment; and if such an election is made following the first anniversary of the Class C Issuance Date, but prior to the second anniversary thereof, the holder will receive 1.5 times such holder's initial investment. After the second anniversary of the Class C Issuance Date, the value of the redemption right will change in accordance with the accreted liquidation preference rates as defined in the following paragraph.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed 17.0%). The holders of the Class C preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, we may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

**17. Business acquisitions** 

During the years ended December 31, 2024, 2023 and 2022, we made several acquisitions that were individually not material. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the 2024 acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. We may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). We recorded goodwill from these acquisitions, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of the acquisitions after their respective closing dates. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of the Company. The acquisition-related costs incurred for the acquisitions which occurred during the years ended December 31, 2024, 2023 and 2022 were $0.3 million, $1.2 million and $0.7 million, respectively.

***2024 Activity*:** 

The following represents a summary of the acquisitions that occurred during 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In May 2024, we closed on our acquisition of each of Mission US and Mission EU which we initiated by exercising
our options. Mission was previously a consolidated VIE given financial support and

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variable interest considerations. Because Mission was previously consolidated within our financial statements, the exercise of the call option was accounted for as an equity transaction. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Company. For further information on the Mission acquisition, refer to Note 6. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2024, our consolidated subsidiary Ayax Acquisition Co. Ltd acquired an additional 32% of the
outstanding share capital of Ayax Specialty, S.L ("Ayax"), a Spanish MGA specializing in the insurance of surety risks, in exchange for $17.5 million of total consideration (consisting of cash of $5.6 million, our existing equity
interest of $3.3 million and the non-controlling interests of $8.6 million). The additional 32% interest increased our ownership in Ayax from 19% to 51%. Previously, we accounted for our investment in
Ayax as an equity method investment. Following the completion of the step acquisition, we gained majority ownership and control of Ayax and consolidated it. Our previously held equity interest was remeasured to fair value at the step acquisition
date. Accordingly, we recorded a revaluation gain of $2.4 million within "Net realized gains (losses) on investments" in our consolidated statements of operations.

The following table provides our preliminary purchase accounting financial information for the Ayax acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2024** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $5.1 |
|  Other identifiable intangible assets | 5.3 |
|  Premiums receivable | 1.1 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **12.0** |
|  **Liabilities assumed:** |  |
|  Insurance balances payable | 3.0 |
|  Accounts payable and other liabilities | 2.3 |
|  **Total liabilities assumed** | **5.3** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.7** |
|  Goodwill | 10.8 |
|  **Total acquisition consideration** | $**17.5** |

---

<sup>(1)</sup> Total net cash paid for the interest in Ayax was $0.5 million, net of cash acquired (consisting of the $5.6 million payment net of the $5.1 million cash acquired). 

***2023 Activity:***

The following represents a summary of the acquisitions that occurred during 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Markets Underwriting Limited ("CMU"): In June 2023, our consolidated subsidiary Nationwide
Broker Services Limited acquired a 70% ownership stake in CMU for consideration of $0.9 million. CMU is a UK-based MGA and cover holder at Lloyd's (representing a company authorized to enter into
insurance contracts on behalf of a Lloyd's syndicate in accordance with the terms of a binding authority contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omega Insurance Holdings, Inc ("Omega"): In October 2023, our consolidated subsidiary Omega Acquisition
Co Ltd. purchased all the common shares of Omega Insurance Holdings Inc. (subsequently renamed Accelerant Canada Holdings, Inc.) for consideration of $9.5 million. Accelerant Canada Holdings, Inc. owns all the common shares of Omega General
Insurance Company (subsequently renamed Accelerant Insurance Company of Canada) and Focus Group Inc (subsequently renamed Accelerant Canada Services). Our acquisition of Omega will support Accelerant's continued international expansion,
specifically into the Canadian market.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• American Eagle Underwriting Managers, LLC ("American Eagle"): In November 2023, our consolidated
subsidiary, Mission UH Holdings LLC acquired all the ownership interests of American Eagle for consideration of $2.4 million. American Eagle is a US-based MGA and cover holder at Lloyd's.

The following table provides certain financial information for these acquisitions:

---

| | |
|:---|:---|
| ***(in millions)*** | **2023** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $15.2 |
|  Investments | 6.8 |
|  Premiums receivable | 12.1 |
|  Ceded unearned premiums | 12.2 |
|  Reinsurance recoverables <sup>(1)</sup> | 11.4 |
|  Other identifiable intangible assets | 1.6 |
|  Other assets | 1 |
|  **Total assets acquired** | **60.3** |
|  **Liabilities assumed:** |  |
|  Unpaid losses and loss adjustment expenses | 16.8 |
|  Unearned premiums | 13.2 |
|  Insurance balances payable | 13.5 |
|  Accounts payable and other liabilities | 6 |
|  **Total liabilities assumed** | **49.5** |
|  **Total identifiable net assets acquired <sup>(2)</sup>** | **10.8** |
|  Goodwill | 2 |
|  **Total acquisition consideration** | $**12.8** |

---

<sup>(1)</sup> Reinsurance recoverables acquired include $10.7 million of reinsurance recoverables on unpaid losses and LAE and $0.7 million of reinsurance recoverables on paid losses and LAE. 

<sup>(2)</sup> The acquisitions of the entities resulted in net cash and cash equivalents received of $2.8 million, representing the $12.4 million cash payment for the acquisition compared to net of cash and cash equivalents acquired of $15.2 million. Total acquisition consideration consisted of the cash payment and $0.4 million of non-controlling interests. 

***2022 Activity:***

The following summarizes our acquisitions that occurred during 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2022, we acquired 77.6% of the share capital of United Brokers International Limited ("UBI")
for consideration of $10.3 million. The consideration transferred consisted of $4.4 million of cash, $4.6 million of deferred consideration and $1.3 million of non-controlling interest. UBI
is a UK and Ireland based MGA that specializes in the insurance of construction risks in France.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2022, we acquired 78.1% of the share capital of *Servicios Profesionales de Suscripcion de Riesgos Iberia S.L.* ("SSR Iberia") for consideration of $4.7 million. The consideration transferred consisted of $3.7 million of cash and $1.0 million of non-controlling interest. SSR
Iberia is a Spain based MGA that specializes in the insurance of construction and real estate development risks.

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The following table provides certain financial information for these acquisitions:

---

| | |
|:---|:---|
| ***(in millions)*** | **2022** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $6.4 |
|  Other identifiable intangible assets | 4.9 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **11.8** |
|  **Liabilities assumed:** |  |
|  Commissions payable | 0.3 |
|  Accounts payable and other liabilities | 5.2 |
|  **Total liabilities assumed** | **5.5** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.3** |
|  Goodwill | 8.7 |
|  **Total acquisition consideration** | $**15.0** |

---

<sup>(1)</sup> Total cash paid for acquisitions, net of cash acquired, was $1.7 million representing the $8.1 million cash payment for the acquisition compared to cash and cash equivalents acquired of $6.4 million. Total acquisition consideration consisted of the cash payment, $4.6 million of deferred consideration and $2.3 million of non-controlling interests. 

***Purchase of additional non-controlling interests in previously consolidated entities:***

During 2023, we purchased $5.5 million of non-controlling interests related to previously consolidated entities in which an existing majority ownership and controlling interest was held. The purchase of such non-controlling interests was reflected as a reduction of the previously outstanding non-controlling interests and additional paid in capital presented within our consolidated statement of shareholders' equity and as a financing outflow within our consolidated statement of cash flows.

**18. Related party transactions** 

As of December 31, 2024 and 2023, the outstanding balance of short-term financing by the Company to Accelerant Holdings LP was $7.6 million and $7.1 million, respectively. This balance is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

As of December 31, 2024, we had accounts payable of $0.9 million to Accelerant Holdings LP, primarily related to legal costs.

For the years ended December 31, 2024, 2023 and 2022, we incurred $0.2 million, $2.8 million and $3.7 million, respectively, of advisory fees and expenses with Altamont Capital Management LLC, an affiliate.

We incurred expenses of $0.4 million during the year ended December 31, 2022 as compensation for services rendered by Jeff Radke, CEO of Accelerant, via Indica Limited, a services company of which he is the sole shareholder. Payments made to the CEO during 2022 principally consisted of a cash performance bonus accrued by the Company in connection with services rendered during 2021. The CEO became a direct employee of Accelerant in April 2022.

**19. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

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Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

***Unfunded investment commitments***

As of December 31, 2024, we had unfunded commitments of $2.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**20. Employee benefits and profit interests plans** 

***Employee benefit plan***

We operate a defined contribution post-employment plan. A defined contribution plan is a benefit plan under which the Company pays fixed contributions into a separate entity. We have no legal or constructive obligations to pay further contributions if the entity, typically taking the form of a fund, does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

We pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The contributions are recognized as employee benefit expenses when they are due. Expenses related to the plans were $4.6 million, $2.8 million and $1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are included in the "General and administrative expenses" within our consolidated statements of operations.

***Cash bonus plan***

We have a deferred compensation plan that entitles every employee, subject to certain qualifying criteria, to a cash bonus equal to a multiple of such employee's salary less applicable taxes upon the occurrence of a qualifying liquidity event. The amount of the cash bonus for an eligible employee will be dependent upon the valuation of the Company if the qualifying liquidity event occurs and is subject to adjustment if an employee's length of service is less than two years. All payments will be determined at the discretion of the Company's Board of Directors. Any future liability recognized for this plan will be recognized at fair value at the date of initial recognition and then subsequently updated at each reporting period. Such amount will be material to our operating results in any future period.

We did not recognize any compensation cost for the cash bonus plan during the years ended December 31, 2024, 2023 and 2022 as the cash bonus payments were not probable.

***Profits interest awards***

Accelerant Holdings LP and Mission have issued profits interest awards to certain officers and employees of the Company in the form of partnership shares and incentive units. The awards require achievement of certain return thresholds and continuous service for the officers and employees to receive distributions. The awards do not represent an equity interest for accounting purposes in the Company, the Company's parent, or its subsidiaries. These units are accounted for as deferred compensation and compensation cost is measured according to the value of expected benefits as of each reporting date. Profits interest awards are subject to vesting over a continuous service period and forfeiture upon a recipient voluntarily resigning, in the normal course of business, regardless of such employee's length of service or vested units. Since the awards are subject to forfeiture upon termination for no value, the awards represent a deferred compensation liability rather than equity classified stock compensation. Compensation cost will be recorded to the extent payment is reasonably estimable and probable, as well as considering service requirements. Any future liability recognized for these awards will be recognized at the fair value of the awards at the date of initial recognition and then subsequently updated at each reporting period. Such amounts will be material to the Company's operating results in any future period.

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We recognized $7.0 million of compensation expenses during the year ended December 31, 2024 attributable to the Mission profits interest awards as certain return thresholds and continuous services requirements were met for specific components of the business. There were no Mission profits interest awards compensation expenses for the years ended December 31, 2023 and 2022.

We did not recognize any compensation cost for the Accelerant Holdings LP profits interest awards during the years ended December 31, 2024, 2023 and 2022 as the distributions were not probable.

***Potential distribution of common shares of the Company in the event of an initial public offering***

In the event of an initial public offering of the Company, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interests awards in Accelerant Holdings LP in proportion to the economic interests represented by those profits interest awards. The distribution of common shares would be made upon the consummation of an initial public offering to holders of vested profits interest awards of Accelerant Holdings LP, and of restricted common shares of the Company to holders of unvested profits interest awards. After making such distribution, Accelerant Holdings LP will be liquidated and dissolved. The number of common shares of the Company that holders of profits interests awards of Accelerant Holdings LP will receive upon the completion of the distribution will be dependent upon the implied market value of the Company at the time of the initial public offering. The Company would then recognize compensation expense at such time for the value of the new unrestricted common shares of the Company distributed to holders of vested profits interest awards of Accelerant Holdings LP, and in each subsequent reporting period for the value of the restricted common shares of the Company that vest and become unrestricted during each such reporting period. The compensation expense will be material to our income in future periods.

**21. Share-based compensation** 

***Share options granted to employees***

During 2024, we granted 77,702 options to certain of our employees (which followed the grants during 2023 of 103,756 stock option awards, net of forfeitures) under our employee share incentive plan. The contractual term of the option awards is ten years from the grant date. The vesting terms of the option awards varied based on the date of the respective employee's date of service commencement such that a portion of the awards was typically vested as of the grant date. The vesting periods per each of the awards varied from two to four years (with either quarterly or annual partial vesting periods over those two to four year full vesting periods).

The fair value of each share option award granted was estimated on the date of grant using the following option pricing model assumptions:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Weighted average expected term (years) | 1.2 - 10.0 | 0.5 - 10.0 |
|  Risk-free interest rate | 3.82% - 4.87% | 4.14% - 5.40% |
|  Expected volatility | 31% - 38% | 32% - 37% |
|  Expected dividend yield | 0% | 0% |

---

Based on application of the Hull-White valuation method (widely used in the determination of option fair value), we estimate the expected term of the share options granted, assuming that employees exercise their options, on average, when the stock price over strike price reaches a threshold of 2.20. The risk-free interest rate is based on observed interest rates appropriate for the term of our stock options. Expected volatility is based on companies at a comparable stage, as well as companies in the same or similar industry. The dividend yield assumption is based on the Company's historical and expected future dividend payouts and may be subject to change in the future.

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The following table summarizes the activity related to share option awards for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of December 31, 2023 | 103756 | $1615.12 | 8.7 | $— | $140.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 77702 | 1615.12 | 9.5 |  | 361.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercise |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1982) | 1615.12 |  |  |  |
|  **Outstanding as of December 31, 2024** | **179476** | $**1615.12** | **9.1** | $**—** | $**237.45** |
|  Options exercisable as of December 31, 2024 | 66597 | $1615.12 | 8.8 | $— | $163.96 |
|  Options unvested as of December 31, 2024 | 112880 | $1615.12 | 9.2 | $— | $278.35 |

---

For the years ended December 31, 2024 and 2023, share-based compensation expense from share option awards granted was $8.4 million and $4.8 million, respectively, which is included in "Other expenses" in our consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of December 31, 2024 and 2023 was $29.6 million and $9.6 million, respectively. The weighted average remaining requisite service period as of December 31, 2024 is 1.6 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**22. Earnings per share** 

The following table sets forth the computation of basic and diluted net earnings per common share:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, except share data)*** | **2024** | **2023** | **2022** |
|  **Numerator:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to Accelerant common shareholders | $27.2 | $(48.8) | $(91.7) |
|  **Denominator:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - basic | 1983795 | 1979284 | 1979284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive common shares | 402558 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - diluted | 2386353 | 1979284 | 1979284 |
|  **Net income (loss) attributable to Accelerant per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $13.71 | $(24.66) | $(46.33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $11.40 | $(24.66) | $(46.33) |

---

During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted income (loss) per common share computation as the effect of including potentially dilutive securities would be anti-dilutive. For the years ended December 31, 2024 and 2023, all share option awards granted to employees would have an anti-dilutive effect on net income (loss) per share under the treasury stock method, as the average estimated common share price is less than the corresponding option exercise price. For the years

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ended December 31, 2023 and 2022, all the Company's preference stock, consisting of the Class A and Class B convertible preference shares, were excluded from the computation of diluted net loss per share as the effect would have been anti-dilutive.

We excluded the following potential common shares outstanding as of each period end from the computation of diluted net loss per share attributable to Accelerant per common share as the effect would have been anti-dilutive:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2023** | **2022** |
|  **Convertible preference shares issued and outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A |  | 249582 | 249582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B |  | 149707 | 148803 |
|  **Share options granted and outstanding** | 179476 | 103756 |  |
|  **Total** | **179476** | **503045** | **398385** |

---

In the event of an initial public offering, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interest awards of Accelerant Holdings LP. The quantity of common shares that may be distributed is currently indeterminable as the amount holders will receive will be dependent upon the implied market value of the Company at the time of the initial public offering.

**23. Dividend restrictions and statutory financial information** 

Subject to the Cayman Islands Companies Act, the Articles of the Company, and except for rights attaching to the shares by contract, the directors may resolve to pay dividends and other distributions on shares in issue and authorize payment of the dividends or other distributions out of the funds of the Company lawfully available. No dividend or other distribution shall be paid except out of the realized or unrealized profits of the Company or as otherwise permitted by law.

The Articles of the Company establish mechanisms and the order of priority for the payment of dividends but, generally, dividends shall be paid pro rata among the Class A Convertible Preference Shareholders, the Class B Convertible Preference Shareholders, the Class C Redeemable Preference Shareholders and the Common Shareholders, participating equally on an as-converted basis in accordance with the applicable conversion rate.

Our subsidiaries are subject to certain regulatory restrictions on the distribution of capital and payment of dividends in the jurisdictions in which they operate, as described below. The restrictions are generally based on net income or levels of capital and surplus as determined in accordance with the relevant statutory accounting principles. Failure of these subsidiaries to comply with their applicable regulatory requirements could result in restrictions on any distributions of capital or retained earnings or stricter regulatory oversight of the subsidiaries.

Our ability to pay dividends and make other forms of distributions may also be limited by repayment obligations and financial covenants in our outstanding loan facility agreements. During the years ended December 31, 2024, 2023 and 2022, no dividends were declared or paid by the Company to its shareholders. Certain subsidiaries of the Company paid dividends of $3.5 million, $2.9 million and $1.8 million to non-controlling interests during the years ended December 31, 2024, 2023 and 2022, respectively.

**Subsidiary statutory financial information and dividend restrictions** 

Our (re)insurance subsidiaries prepare their statutory financial statements in accordance with statutory accounting practices prescribed or permitted by local regulators. Statutory and local accounting differs from

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US GAAP, including in the treatment of investments, acquisition costs and deferred income taxes, amongst other items.

The statutory capital and surplus amounts as of December 31, 2024 and 2023 and statutory net income (loss) amounts for the years ended December 31, 2024, 2023 and 2022 for our insurance companies and intermediaries based in the EU, UK, US and Canada and reinsurance companies based in Bermuda and the Cayman Islands are summarized in the table below, which includes information relating to acquisitions from the year of acquisition:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | | | |
|  | **Required** | **Required** | **Actual** | **Actual** | **Statutory Income (Loss)** | **Statutory Income (Loss)** | **Statutory Income (Loss)** |
| ***(in millions)*** | **2024** | **2023** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2024<sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2022** |
|  EU - Belgium | $43.8 | $56.6 | $103.8 | $99.8 | $3.5 | $(52.9) | $(45.1) |
|  EU - Ireland | 7 | 6.5 | 62.3 | 53 | 54.9 | 46.4 | 44.2 |
|  US | 124.9 | 86.3 | 166.7 | 100.7 | 12.1 | (9.1) | (15.7) |
|  UK | 43.8 | 13 | 69.6 | 12.9 | (4.8) | (3.2) | (3.2) |
|  Canada | 5.5 | 5.7 | 13.8 | 12.9 | 1.8 | (0.8) |  |
|  Cayman Islands | 5.5 | 7.7 | 78.5 | 91 | (7.8) | (3.3) | (24.9) |
|  Bermuda <sup>(3)</sup> | 1 | 1 | 3.1 | 4.7 | (1.3) |  | (4.0) |

---

<sup>(1)</sup> The 2024 amounts reflect our best estimate of the statutory capital and surplus and net income as of the date of completion of these consolidated financial statements. 

<sup>(2)</sup> The amounts have been revised to reflect the final statutory capital and surplus as well as statutory net loss for 2023 as reported in the statutory financial statements. We do not view the differences from previously disclosed amounts to be qualitatively or quantitatively material to the consolidated financial statements. However, the revised amounts are being provided for the purposes of comparability with the amounts presented as of and for the year ended December 31, 2024. 

<sup>(3)</sup> Accelerant Re Ltd had not written any reinsurance business and was not making use of its license with the Bermuda Monetary Authority ("BMA"). Accelerant Re Ltd's board of directors therefore decided to voluntarily surrender such license and Accelerant Re Ltd was deregistered by the BMA in December 2023. We continue to own a segregated account with an entity that remains subject to BMA regulation. 

Certain material aspects of these laws and regulations as they relate to solvency, dividends and capital and surplus are summarized below.

***EU - Belgium***

Our Belgium insurance subsidiary (Accelerant Insurance Europe SA/NV) is regulated by the National Bank of Belgium ("NBB") pursuant to the Belgium Insurance Act of 2014. This subsidiary is obligated to maintain a minimum solvency margin based on the Solvency II regulations. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

The amount of dividends that this subsidiary is permitted to distribute is restricted to retained earnings, the current year profit and legal reserves (as defined). Dividends must be approved by the NBB before distribution. Solvency and capital requirements for this subsidiary are based on the Solvency II framework and must continue to be met following any distribution.

***EU - Ireland***

Our European insurance intermediary (Accelerant Agency Limited) is registered as an insurance intermediary by the Central Bank of Ireland ("CBI") under the European Union (Insurance Distribution) Regulations, 2018 ("IDD"). This subsidiary also has a UK third branch (Accelerant Agency Limited UK Branch) which is

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authorized and regulated by the Financial Conduct Authority ("FCA"). The FCA's applicable regulations require that a firm must at all times ensure that it is able to meet its liabilities as they fall due and at all times maintain capital resources equal to or in excess of its relevant capital resources requirement. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***U.S.***

Our U.S. insurance subsidiaries are required to maintain minimum levels of solvency and liquidity as determined by law, and to comply with Risk-Based Capital ("RBC") requirements and licensing rules as required by each U.S. insurer's domiciliary state, and the states in which they operate. RBC is used to evaluate the adequacy of capital and surplus maintained by our U.S. insurance subsidiaries in relation to three major risk areas associated with asset risk, insurance risk and other risks. For both of our U.S. insurance subsidiaries, there are no prescribed or permitted statutory accounting practices that differ from the statutory accounting principles established by National Association of Insurance Commissioners and adopted by the US state regulators. Dividends must be approved by the insurance commissioner in the state of domicile before distribution. As of December 31, 2024 and 2023, our U.S. insurance subsidiaries exceeded their required levels of RBC.

***UK***

Our UK based insurance subsidiary is regulated by the Prudential Regulatory Authority ("PRA") and the FCA. Our UK based insurance subsidiary is required to maintain adequate financial resources in accordance with the requirements of the PRA. Insurers must comply with both a Minimum Capital Requirement ("MCR") and a Solvency Capital Requirement ("SCR") calculated using the Solvency II standard formula. The calculation of the MCR and SCR is based on, among other things, the type and amount of insurance business written and claims paid by the insurance company. The PRA's rules require our UK insurance subsidiary to obtain regulatory approval for any proposed payment of a dividend. The UK Regulator considers the MCR and SCR when assessing requests to make distributions. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***Canada***

Our insurance subsidiary based in Canada is regulated for solvency purposes by the Office of the Superintendent of Financial Institutions ("OSFI") under the provisions of the Insurance Companies Act (Canadian Act). Our Canadian subsidiary is committed to establishing and maintaining an internal targeted capital ratio that is set above OSFI's supervisory target capital ratio. The internal targeted capital ratio is the level of capital based on the subsidiary's Own Risk and Solvency Assessment ("ORSA") that is necessary to cover the risks specified in the Minimum Capital Test Guideline (as defined) as well as other risks of the insurer. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***Cayman Islands***

After evaluating the business and liquidity needs of our Cayman Islands reinsurance subsidiary, the directors may, from time to time, declare dividends to the shareholders. Such dividends shall only be paid out of our Cayman Islands reinsurance subsidiary's retained earnings and any paid-in capital in excess of par, provided that, after giving effect to each such dividend, the remaining capital is in excess of any capital requirements as prescribed by our Cayman Islands reinsurance subsidiary's Board and/or the regulator, the Cayman Islands Monetary Authority ("CIMA"). Prior notification of the payment of such dividends will be given to CIMA. Further, our Cayman Islands reinsurance subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes from time to time subject to approval from our Cayman Islands subsidiary's Board and, thereafter, prior written approval from CIMA. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

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***Bermuda***

Redemption or repurchase of securities may only be paid for out of paid-up capital and profits of our Bermuda subsidiary available for dividends, or from the proceeds of a fresh issue of securities. Any premium payable on redemption may only be paid out of our Bermuda subsidiary's share premium account, profits available for dividends or out of the contributed surplus account. (A Bermuda company may only pay dividends out of profits, but distributions to shareholders can be made out of any contributed surplus). Further, our Bermuda subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes subject to approval from our Bermuda subsidiary's Board.

**24. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was March 27, 2025. Based upon this review, other than as described below, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

***Acquisition of an MGA***

In January 2025, our consolidated subsidiary Corniche Acquisition Co. Ltd. acquired a controlling interest in the outstanding common shares of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, for $56 million of consideration such that it owns 80.5% of Corniche's common shares. Previously, the investment in Corniche was accounted for as an equity method investment. Following the completion of the step acquisition, we remeasured our previously held equity interest to fair value at the acquisition date and we expect to record a gain of $2.1 million within "Net realized gains on investments" in the first quarter 2025.

***Tax residency***

On March 25, 2025, the Board of Directors of each of Accelerant Holdings and its subsidiary, Accelerant Holdings (Cayman) Ltd., (together, the "Holding Companies"), approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK, in each case determining that the Holdings Companies would be centrally managed and controlled from the UK on a prospective basis. "Central management and control" means that the strategic policy and direction of a company will be set from within the UK. Such actions are distinguished from decisions of a more day-to-day, operational nature. Becoming UK tax residents will enable the Holding Companies to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. The Company does not expect any material impact to current or deferred taxes upon the change of tax residency of the Holdings Companies. Status as a UK tax resident has no implications for the day-to-day management and operations of the Holding Companies which will remain sited in the Cayman Islands.

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**Schedule I** 

**Accelerant Holdings** 

**Summary of Investments Other Than Investments in Related Parties** 

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Cost** | **Fair value** | **Amount at which<br>shown in the<br>balance sheet** |
|  **Type of Investment** |  |  |  |
|  Fixed maturity and short-term investments available for sale, at fair value <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $175.5 | $174.0 | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency | 128.9 | 128.2 | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency | 161.1 | 158.6 | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed | 44.4 | 43.0 | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed | 18.6 | 18.4 | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities | 22.1 | 22.1 | 22.1 |
|  Total | 550.6 | 544.3 | 544.3 |
|  Other investments, at fair value | 10.0 | 45.3 | 45.3 |
|  **Total** | $**560.6** | $**589.6** | $**589.6** |

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<sup>(1)</sup> Original cost of fixed maturities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

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**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Balance Sheets - Parent Company Only** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions, except number of shares and per share amounts)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | $4.2 | $3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 31.7 | 11.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **35.9** | **14.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 7.8 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in subsidiaries | 490.8 | 411.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 17.5 | 13.1 |
|  **Total assets** | $**552.0** | $**439.6** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | $121.4 | $120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 10.1 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payables and other liabilities | 11.8 | 7.5 |
|  **Total liabilities** | **143.3** | **129.1** |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 66,411) | **104.4** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholder's equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 250,457 and 2023: 249,582) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 150,231 and 2023: 149,707) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.0001 per share, issued and outstanding 2024: 1,986,221 and 2023: 1,979,284) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 124.8 | 146.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (19.5) | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (182.8) | (210.0) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' equity** | **304.3** | **310.5** |
|  **Total equity** | **408.7** | **310.5** |
|  **Total liabilities and equity** | $**552.0** | $**439.6** |

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*See accompanying notes to the Condensed Financial Information of Registrant.* 

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**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Operations - Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $0.7 | $0.9 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.8 | 2.8 | 3.4 |
|  **Total revenues** | **20.5** | **3.7** | **3.4** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 5.8 | 9.6 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.6 | 10.3 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.0 | 2.1 | 14.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 0.5 | 1.4 | (2.8) |
|  **Total expenses** | **32.9** | **23.4** | **18.3** |
|  **Loss before taxes** | **(12.4)** | **(19.7)** | **(14.9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss before equity in undistributed earnings of subsidiaries** | **(12.4)** | **(19.7)** | **(14.9)** |
|  Equity in income (losses) of subsidiaries | 39.6 | (29.1) | (76.8) |
|  **Net income (loss)** | $**27.2** | $**(48.8)** | $**(91.7)** |

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*See accompanying notes to the Condensed Financial Information of Registrant.* 

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**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Comprehensive Income (Loss) - Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $27.2 | $(48.8) | $(91.7) |
|  Other comprehensive (loss) income relating to subsidiaries, net of tax | (12.0) | 3.4 | (19.0) |
|  **Comprehensive income (loss)** | $**15.2** | $**(45.4)** | $**(110.7)** |

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*See accompanying notes to the Condensed Financial Information of Registrant.* 

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**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Cash Flows - Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $27.2 | $(48.8) | $(91.7) |
|  **Adjustments to reconcile net income (loss) to net cash used in operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in undistributed net (income) loss of subsidiaries | (39.6) | 29.1 | 76.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.8) | (2.8) | (3.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.7) | (0.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 0.5 | 1.4 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1.2 | 0.3 |  |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 8.8 | 1 | (4.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 0.3 | (12.1) | 4.6 |
|  **Net cash used in operating activities** | **(13.7)** | **(28.0)** | **(20.6)** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (0.8) | (0.9) | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.1) | (0.6) | (5.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions to subsidiaries | (91.9) |  | (219.3) |
|  **Net cash used in investing activities** | **(92.8)** | **(1.5)** | **(225.5)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of convertible preference shares, net of issuance costs <sup>(1)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (1.5) |
|  **Net cash provided by financing activities** | **113.8** | **18.7** | **257.4** |
|  **Net increase in cash, cash equivalents and restricted cash** | **7.3** | **(10.8)** | **11.3** |
|  Cash, cash equivalents and restricted cash at beginning of the year | 0.5 | 11.3 |  |
|  **Cash, cash equivalents and restricted cash at end of the year** | $**7.8** | $**0.5** | $**11.3** |

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<sup>(1)</sup> Issuance of convertible preference shares is net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. 

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| | | | |
|:---|:---|:---|:---|
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid |  |  |  |

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*See accompanying notes to the Condensed Financial Information of Registrant.* 

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**Notes to the Condensed Financial Information of Registrant - Parent Company Only** 

The Condensed Financial Information of Accelerant Holdings (the Registrant) should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of Accelerant Holdings and subsidiaries as of December 31, 2024 and 2023 and for each of the three years ended December 31, 2024 (the "Consolidated Financial Statements").

The Registrant's investments in consolidated subsidiaries are stated at cost plus equity in losses or undistributed income of consolidated subsidiaries.

For additional information regarding Net realized and unrealized gains on investments for the years ended December 31, 2024, 2023 and 2022, refer to Note 4 to the Consolidated Financial Statements.

For additional information regarding the Registrant's Senior unsecured debt, including estimated future repayments of long-term debt as of December 31, 2024 and 2023, refer to Note 14 to the Consolidated Financial Statements.

For additional information regarding the Registrant's issuance of Class C convertible preference shares for the year ended December 31, 2024, refer to Note 16 to the Consolidated Financial Statements.

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**Schedule III** 

**Accelerant Holdings** 

**Supplementary Insurance Information** 

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **Deferred<br>acquisition<br>costs** | **Unpaid<br>losses and<br>loss<br>adjustment<br>expenses** | **Unearned<br>premiums** | **Net<br>written<br>premiums** | **Net<br>earned<br>premiums** | **Net<br>investment<br>income** | **Losses and<br>loss<br>adjustment<br>expenses** | **Amortization<br>of deferred<br>acquisition<br>costs** | **Other<br>operating<br>expenses <sup>(1)</sup>** |
| **2024** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $65 |
|  MGA Operations |  |  |  |  |  | 4.2 |  |  | 105.6 |
|  Underwriting | 83.4 | 1294.4 | 1803.2 | 254.6 | 226.6 | 32.6 | 167.3 | 104.2 | 90.5 |
|  Corporate and Other |  |  |  |  |  | 1 |  |  | 36.5 |
|  Consolidation and elimination adjustments | (22.7) |  |  |  |  |  |  | (22.8) | (56.7) |
|  **Total** | $**60.7** | $**1294.4** | $**1803.2** | $**254.6** | $**226.6** | $**38.9** | $**167.3** | $**81.4** | $**240.9** |
| **2023** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $36.2 |
|  MGA Operations |  |  |  |  |  | 2.8 |  |  | 80.6 |
|  Underwriting | 71.9 | 772.5 | 1152.1 | 190.9 | 105.1 | 12.1 | 80.3 | 68.4 | 56 |
|  Corporate and Other |  |  |  |  |  | 3.3 |  |  | 31.7 |
|  Consolidation and elimination adjustments | (18.9) |  |  |  |  |  |  | (18.5) | (26.8) |
|  **Total** | $**53.0** | $**772.5** | $**1152.1** | $**190.9** | $**105.1** | $**19.3** | $**80.3** | $**49.9** | $**177.7** |
| **2022** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $0.1 | $— | $— | $26.3 |
|  MGA Operations |  |  |  |  |  | 1 |  |  | 52.6 |
|  Underwriting | 34.3 | 415.4 | 743.6 | 186 | 141.2 | 1.5 | 99.5 | 58 | 47.1 |
|  Corporate and Other |  |  |  |  |  |  |  |  | 12.9 |
|  Consolidation and elimination adjustments | (7.7) |  |  |  |  |  |  | (23.0) | (15.1) |
|  **Total** | $**26.6** | $**415.4** | $**743.6** | $**186.0** | $**141.2** | $**2.6** | $**99.5** | $**35.0** | $**123.8** |

---

<sup>(1)</sup> Consolidated Other operating expenses consists of general and administration expenses of $227.5 million, $169.2 million, and $115.6 million and technology and development operating expenses of $13.4 million, $8.5 million, and $8.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. 

------

##### [**Table of Contents**](#toc)
**Schedule IV** 

**Accelerant Holdings** 

**Reinsurance** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Gross<br>amount** | **Ceded to other<br>companies** | **Assumed from<br>other companies** | **Net<br>amount** | **Percentage of amount<br>assumed to net** |
|  **Year Ended December 31, 2024** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | $2103.7 | $(2005.0) | $127.9 | $226.6 | 56.4% |
|  **Total premium earned** | $**2103.7** | $**(2005.0)** | $**127.9** | $**226.6** | 56.4% |
|  **Year Ended December 31, 2023** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 1304.5 | (1214.3) | 14.9 | 105.1 | 14.2% |
|  **Total premium earned** | $**1304.5** | $**(1214.3)** | $**14.9** | $**105.1** | 14.2% |
|  **Year Ended December 31, 2022** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 779.5 | (637.4) | (0.9) | 141.2 | (0.6)% |
|  **Total premium earned** | $**779.5** | $**(637.4)** | $**(0.9)** | $**141.2** | (0.6)% |

---

------

##### [**Table of Contents**](#toc)
**Schedule V** 

**Accelerant Holdings** 

**Valuation and Qualifying Accounts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Balance at<br>beginning of<br>year** | **Charged to<br>costs and<br>expenses** | **Charged to<br>other<br>accounts** | **(Deductions)** | **Foreign<br>currency<br>translation<br>adjustment** | **Balance at<br>the end of<br>year** |
| **2024** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | $46.5 | $(9.7) | $8.6 | $— | $— | $45.4 |
|  Allowance for premiums receivable | 2.7 |  |  | (0.3) |  | 2.4 |
|  Allowance for reinsurance recoverables | 0.3 | 0.1 |  |  |  | 0.4 |
| **2023** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 35.2 | 11.6 | (0.3) |  |  | 46.5 |
|  Allowance for premiums receivable | 1.8 | 0.9 |  |  |  | 2.7 |
|  Allowance for reinsurance recoverables |  | 0.3 |  |  |  | 0.3 |
| **2022** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 6.9 | 25.4 |  |  | 2.9 | 35.2 |
|  Allowance for premiums receivable | 1.3 | 0.5 |  |  |  | 1.8 |

---

------

##### [**Table of Contents**](#toc)
**Schedule VI** 

**Accelerant Holdings** 

**Supplementary Information Concerning Property/Casualty Insurance Operations** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | | | | | | | | **Losses and loss<br>adjustment<br>expenses** | **Losses and loss<br>adjustment<br>expenses** | | |
| **Affiliation with<br>Registrant** |<br>**Deferred<br>policy<br>acquisition<br>costs** | **Unpaid<br>losses and<br>loss<br>adjustment<br>expenses** | **Discount,<br>if any** |<br>**Unearned<br>premiums** |<br>**Written<br>premiums** |<br>**Net<br>earned<br>premiums** |<br>**Net<br>investment<br>income** | **Current<br>year** | **Prior<br>years** |<br>**Amortization<br>of deferred<br>acquisition<br>costs** |<br>**Paid claims<br>and claim<br>adjustment<br>expenses** |
|  Consolidated subsidiaries |  |  |  |  |  |  |  |  |  |  |  |
| 2024 | $60.7 | $1294.4 | $— | $1803.2 | $254.6 | $226.6 | $38.9 | $152.2 | $15.1 | $81.4 | $105.6 |
| 2023 | 53.0 | 772.5 |  | 1152.1 | 190.9 | 105.1 | 19.3 | 75.4 | 4.9 | 49.9 | 81.2 |
| 2022 | 26.6 | 415.4 |  | 743.6 | 186.0 | 141.2 | 2.6 | 94.7 | 4.8 | 35.0 | 53.3 |

---

------

##### [**Table of Contents**](#toc)
![LOGO](g543111g95u25.jpg)

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
| **Condensed Consolidated Interim Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Interim Financial Statements](#fin543111_201) | F-79 |
|  **Notes to the Condensed Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_202) | F-85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_203) | F-85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_204) | F-86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_205) | F-91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_206) | F-95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Unpaid losses and loss adjustment expenses](#fin543111_207) | F-98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Reinsurance](#fin543111_208) | F-98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Deferred acquisition costs and deferred ceding commissions](#fin543111_209) | F-100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Debt](#fin543111_210) | F-101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Business acquisitions](#fin543111_211) | F-101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Share-based compensation](#fin543111_212) | F-103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Earnings per share](#fin543111_213) | F-103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Income taxes](#fin543111_214) | F-104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Other assets](#fin543111_215) | F-105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_216) | F-106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Related party transactions](#fin543111_217) | F-106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Commitments and contingencies](#fin543111_218) | F-106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Subsequent events](#fin543111_219) | F-106 |

---

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Balance Sheets (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| ***(expressed in millions of US dollars, except share data)*** | | |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2025: $63.9 and 2024: $65.0) | $64.2 | $64.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2025: $583.1 and 2024: $485.6) | 582.7 | 479.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 | 45.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **702.8** | **607.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.7 | 1273.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2025: $2.7 and 2024: $2.4) | 863.3 | 791.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 | 1069.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 | 364.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 | 60.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net  | 114.9 | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 | 83.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets  | 255.6 | 221.7 |
|  **Total assets** | $**6715.9** | $**6094.9** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 | 1803.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 | 1109.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 | 193.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 | 746.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 | 201.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 209.6 | 198.2 |
|  **Total liabilities** | **6261.5** | **5667.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 17) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2025 and 2024: 66,411) | **104.4** | **104.4** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2025 and 2024: 250,457) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2025 and 2024: 150,231) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.0001 per share, issued and outstanding 2025 and 2024: 1,986,221) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 127.2 | 124.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (11.2) | (19.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (176.3) | (182.8) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Accelerant shareholders' equity** | **321.5** | **304.3** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** | **28.5** | **18.3** |
|  **Total equity** | **454.4** | **427.0** |
|  **Total liabilities and equity** | $**6715.9** | $**6094.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Revenues** | **Revenues** | **Revenues** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
|  **Total expenses** | **162.5** | **116.1** |
|  **Income before income taxes** | **15.5** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.8** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant** | $**6.5** | $**7.1** |
|  **Net income attributable to Accelerant per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $3.27 | $3.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $2.65 | $2.98 |
|  **Weighted-average common shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 1986221 | 1979284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 2453396 | 2378573 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  Net income | $7.8 | $2.1 |
|  **Other comprehensive income, net of tax:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 2.5 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities | 4.8 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments for losses recognized in net income | 1.2 |  |
|  **Other comprehensive income, net of tax** | **8.5** | **—** |
|  **Total comprehensive income** | **16.3** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive (income) loss attributable to non-controlling interests | (1.5) | 5.0 |
|  **Comprehensive income attributable to Accelerant** | $**14.8** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Equity (unaudited)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2025** |  |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2025** | $**104.4** | $**236.7** | $**145.1** | $**124.8** | $**(19.5)** | $**(182.8)** | $**304.3** | $**18.3** | $**427.0** |
|  Net income |  |  |  |  |  | 6.5 | 6.5 | 1.3 | 7.8 |
|  Other comprehensive income |  |  |  |  | 8.3 |  | 8.3 | 0.2 | 8.5 |
|  Share-based compensation |  |  |  | 2.4 |  |  | 2.4 |  | 2.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (2.3) | (2.3) |
|  Issuance of non-controlling interests <sup>(1)</sup> |  |  |  |  |  |  |  | 11.0 | 11.0 |
|  **Balance, March 31, 2025** | $**104.4** | $**236.7** | $**145.1** | $**127.2** | $**(11.2)** | $**(176.3)** | $**321.5** | $**28.5** | $**454.4** |

---

<sup>(1)</sup> Refer to Note 10 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2024** |  |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2024** | $**—** | $**236.7** | $**145.1** | $**146.2** | $**(7.5)** | $**(210.0)** | $**310.5** | $**(23.8)** | $**286.7** |
|  Net income (loss) |  |  |  |  |  | 7.1 | 7.1 | (5.0) | 2.1 |
|  Share-based compensation |  |  |  | 2.2 |  |  | 2.2 |  | 2.2 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (1.6) | (1.6) |
|  **Balance, March 31, 2024** | $**—** | $**236.7** | $**145.1** | $**148.4** | $**(7.5)** | $**(202.9)** | $**319.8** | $**(30.4)** | $**289.4** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Cash Flows (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $7.8 | $2.1 |
|  **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gains on investments | (2.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gains) losses on investments | (1.7) | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.5) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 2.4 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax expenses (benefits) | 0.3 | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (1.8) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 0.2 | 0.3 |
|  **Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (55.7) | (10.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (138.0) | (90.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (188.7) | (33.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | (2.0) | (34.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 4.3 | (2.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 194.2 | 102.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 155.0 | 95.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 66.6 | 112.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 7.5 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 108.0 | 57.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | (8.6) | (13.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (65.7) | (48.6) |
|  **Net cash provided by operating activities** | **91.8** | **144.3** |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 26.4 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 15.8 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (126.9) | (161.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | 2.5 | (45.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (6.6) | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (0.9) | (2.6) |
|  **Net cash used in investing activities** | **(89.7)** | **(90.3)** |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (2.3) | (1.4) |
|  **Net cash used in financing activities** | **(2.3)** | **(1.9)** |
|  **Net increase in cash, cash equivalents and restricted cash** | **(0.2)** | **52.1** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  Cash, cash equivalents and restricted cash at beginning of period | 1273.0 | 775.4 |
|  **Cash, cash equivalents and restricted cash at end of period** | $**1290.7** | $**824.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Cash Flows (unaudited) (continued)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Supplemental cash flows information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $2.6 | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 3.3 | 2.0 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1238.0 | 823.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 52.7 | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1290.7** | $**824.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Notes to Condensed Consolidated Financial Statements (unaudited)** 

**1. Nature of business and basis of presentation** 

Accelerant Holdings, together with its subsidiary companies ("Accelerant", "we", "us", "our" or the "Company"), connects selected specialty insurance underwriters ("Members") with risk capital partners through its data-driven risk exchange (the "Risk Exchange"). The Company, together with its risk capital partners, provides property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). The Company focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

These unaudited condensed consolidated interim financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information. Accordingly, they do not include all of the financial information and note disclosures required by US GAAP for complete consolidated financial statements. The condensed consolidated interim financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities.

In our opinion, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature necessary to fairly state our financial position as of March 31, 2025, our results of operations and cash flows for the three months ended March 31, 2025 and 2024. The results of operations for any interim period are not necessarily indicative of results for the full year.

These unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes included in our annual financial statements for the year ended December 31, 2024. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP.

**2. Summary of significant accounting policies** 

There were no material changes to our significant accounting policies from those that were disclosed in our annual consolidated financial statements as of and for the year ended December 31, 2024.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued ASU 2024-03 *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses,* requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective

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basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard.

*<u>Income Tax:</u>* In December 2023, the FASB issued ASU 2023-09 *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*, to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard on our disclosures as well as the period in which we will adopt.

**3. Segment information** 

We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way the CODM assesses performance of the business and makes decisions on the allocation of resources.

***Exchange Services***

Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and risk capital partners. Insurance companies that join the Risk Exchange pay Accelerant a fixed-percentage volume-based fee for sourcing, managing, and monitoring the business they write. The Risk Exchange pays fees to Members for the distribution services provided to both consolidated affiliates

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and third parties. We eliminate net fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.

***MGA Operations***

MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a voting interest entity, or "VOE").

The Owned Members reporting unit comprises MGAs in which the Company has made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.

***Underwriting***

Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant's consolidated insurance companies and Accelerant Re. Our Underwriting segment is a strategic asset that enables access to Accelerant's portfolio for current and prospective risk capital partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.

Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as deferred acquisition costs ("DAC") for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.

We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we generate additional third-party insurance relationships through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions would not be subject to elimination).

The following includes the financial results of our three reportable segments for the three months ended March 31, 2025 and 2024. Corporate functions and certain other businesses and operations are included in Corporate and Other.

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**Financial information by segment:** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses <sup>(2) (3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.5 | (8.1) | 69.9 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.1)** | $**(23.2)** | $**42.8** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.1) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.5** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

---

<sup>(3)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(4)</sup> Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $29.8 | $29.8 |  | $35.2 | $65 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 36.5 | 20.5 |  | 57 |  | (57.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 5 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44 | 44 |  |  | 44 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3) (4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8.

<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the three months ended March 31, 2024 consists of $2.7 million of system development non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation and $1.1 million of individually insignificant costs. 

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We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. We do not allocate assets to reportable segments as we do not use such information, except for (re)insurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments.

All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the three months ended March 31, 2025 and 2024.

Our revenues by geography were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $49.0 | $21.7 | $70.7 |
|  Direct commission income | 14.0 | 14.1 | 28.1 |
|  Net earned premiums | 15.1 | 47.9 | 63.0 |
|  Net investment income | 7.4 | 4.8 | 12.2 |
|  Net realized gains on investments | 0.2 | 2.1 | 2.3 |
|  Net unrealized gains on investments | 1.7 |  | 1.7 |
|  **Total revenues** | $**87.4** | $**90.6** | $**178.0** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $30.2 | $34.8 | $65.0 |
|  Direct commission income | 5.5 | 6.1 | 11.6 |
|  Net earned premiums | 25.6 | 18.4 | 44.0 |
|  Net investment income | 3.9 | 4.0 | 7.9 |
|  Net realized gains on investments |  | 0.4 | 0.4 |
|  Net unrealized losses on investments |  | (0.8) | (0.8) |
|  **Total revenues** | $**65.2** | $**62.9** | $**128.1** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the three months ended March 31, 2025 and 2024 resulting from the loss experience of covered insurance contracts, refer to Note 8.

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**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $223.3 | $1.3 | $(1.3) | $223.3 |
|  US government and agency | 154.9 | 0.9 | (0.3) | 155.5 |
|  Non-US government and agency | 175.2 | 0.9 | (1.5) | 174.6 |
|  Residential mortgage-backed | 46.0 | 0.3 | (0.7) | 45.6 |
|  Commercial mortgage-backed | 20.9 | 0.2 |  | 21.1 |
|  Other asset-backed securities | 26.7 | 0.1 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**647.0** | $**3.7** | $**(3.8)** | $**646.9** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

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The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $75.9 | $(1.3) | $— | $— | $75.9 | $(1.3) |
|  US government and agency | 31.7 | (0.1) | 4.7 | (0.2) | 36.4 | (0.3) |
|  Non-US government and agency | 76.7 | (1.5) |  |  | 76.7 | (1.5) |
|  Residential mortgage-backed | 15.0 | (0.2) | 3.4 | (0.5) | 18.4 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**199.3** | $**(3.1)** | $**8.1** | $**(0.7)** | $**207.4** | $**(3.8)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at March 31, 2025 and December 31, 2024 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $114.2 | $114.4 |
|  Due after one year through five years | 342.6 | 343.7 |
|  Due after five years through ten years | 89.2 | 88.3 |
|  Due after ten years | 7.4 | 7.0 |
|  Residential mortgage-backed | 46.0 | 45.6 |
|  Commercial mortgage-backed | 20.9 | 21.1 |
|  Other asset-backed securities | 26.7 | 26.8 |
|  **Total** | $**647.0** | $**646.9** |

---

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The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused third-party claim administrator ("TPA") that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs <sup>(1)</sup> | 19.0% - 20.0% | $2.2 | 19.0% - 20.0% | $11.0 |
|  Other | 9.4% - 15.0% | 6.7 | 9.4% - 15.0% | 7.2 |
|  **Equity method investments** |  | $**8.9** |  | $**18.2** |

---

<sup>(1)</sup> During the first quarter of 2025, we acquired a controlling interest in an MGA subsidiary that we previously accounted for as an equity method investment. Refer to Note 10 for additional information.

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of March 31, 2025, we had unfunded commitments of $7.0 million to our equity method investees.

For the three months ended March 31, 2025 and 2024, we received dividends from equity method investees of $0.9 million and $0.2 million, respectively.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $27.9 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds | 19.1 | 19.1 |
|  **Other investments** | $**47.0** | $**45.3** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the three months ended March 31, 2025, there were no impairments and we recorded $1.7 million of income as a component of unrealized gains following observable prices related to these investments. For the three months ended March 31, 2024, there were no impairments and no observable transaction prices based on orderly transaction prices for the identical or similar investments of the same issuer.

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We have recognized cumulative income as a component of unrealized gains of $37.1 million, net of cumulative impairments of $0.2 million associated with investments accounted for under the measurement alternative from inception of the related investments.

As of March 31, 2025, we had unfunded commitments of $2.2 million to venture funds.

***Net investment income***

Investment income and expenses were as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash and cash equivalents | $6.6 | $5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on fixed maturity investments | 5.3 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from equity method investments | 0.5 | 0.3 |
|  **Gross investment income** | **12.4** | **8.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | (0.2) | (0.1) |
|  **Net investment income** | $**12.2** | $**7.9** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Net realized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.3 | $(0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity securities sold during the period |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 2.0 |  |
|  **Net realized gains on investments** | **2.3** | **0.4** |
|  **Net unrealized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized losses on equity securities held at the reporting date |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 1.7 |  |
|  **Net unrealized gains (losses) on investments** | **1.7** | **(0.8)** |
|  **Net realized and unrealized gains (losses) on investments** | $**4.0** | $**(0.4)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

***Regulated deposits and restricted assets***

Certain subsidiaries of the Company are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in our condensed consolidated balance sheets.

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The following table represents the restricted assets we have pledged in favor of certain ceding companies to collateralized obligations:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Short-term investments | $17.3 | $17.2 |
|  Fixed maturity securities | 33.6 | 33.0 |
|  Cash and cash equivalents | 52.7 | 47.3 |
|  **Total** | $**103.6** | $**97.5** |

---

**5. Fair value measurements** 

Assets recorded at fair value in our condensed consolidated balance sheets are measured and classified in accordance with a fair value hierarchy consisting of three "levels" based on the observability of valuation inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

There were no material changes to valuation methodologies of assets measured at fair value.

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***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $223.3 | $— | $223.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 155.5 |  | 155.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 174.6 |  | 174.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 45.6 |  | 45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 21.1 |  | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 26.8 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**—** | $**646.9** | $**—** | $**646.9** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | $**—** | $**544.3** | $**—** | $**544.3** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the three months ended March 31, 2025 and for the year ended December 31, 2024.

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***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our condensed consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $27.9 | $27.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**47.0** | $**47.0** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>:* As further described in Note 9, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of March 31, 2025 and December 31, 2024. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of March 31, 2025 and December 31, 2024.

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**6. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 1069.5 | 605.5 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **224.9** | **167.0** |
|  Incurred losses and LAE related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years |  |  |
|  **Total incurred losses and LAE** | **45.2** | **28.7** |
|  Paid losses and LAE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (1.9) | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (26.7) | (21.0) |
|  **Total paid losses and LAE** | **(28.6)** | **(23.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | 5.1 | (4.4) |
|  **Net reserve for unpaid losses and LAE, end of period** | **246.6** | **168.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of period | 1266.5 | 695.0 |
|  **Gross reserve for unpaid losses and LAE, end of period** | $**1513.1** | $**863.3** |

---

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

**7. Reinsurance** 

We enter into reinsurance agreements to limit our exposure to large losses and to enable us to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

We use extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage our exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align our interests with those of our reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

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The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Written premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $800.8 | $532.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 73.2 | 18.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Earned premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $642.1 | $436.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.7 | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (655.8) | (406.7) |
|  **Net earned premiums** | $**63.0** | $**44.0** |
|  **Loss and LAE:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $365.5 | $227.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 17.3 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (337.6) | (206.0) |
|  **Net loss and LAE** | $**45.2** | $**28.7** |

---

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Reinsurance recoverables on unpaid losses and LAE | $1266.5 | $1069.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 292.6 | 281.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 77.6 | 82.9 |
|  **Total other reinsurance recoverables** | **370.2** | **364.3** |
|  **Reinsurance recoverables** | $**1636.7** | $**1433.8** |

---

For the three months ended March 31, 2025, we reduced the deposit assets by $5.3 million attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of A- (excellent) or better, and we require reinsurance

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recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

**8. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by Accelerant:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

---

The following table presents the amounts of ceding commission deferred and amortized:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commission to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | $**194.6** | $**128.0** |

---

We cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Our contractual acquisition costs are expressed as a percentage of the underlying premiums by type of insurance policy. Certain agreements with our Members include sliding scale adjustments to acquisition cost based on the actual loss experience of the insurance contracts they write, such that our ultimate acquisition cost inversely changes relative to the loss ratio (i.e., adverse experience in the loss ratio will result in a reduction in the related acquisition cost and, conversely, any favorable experience in the loss ratio will result in an increase in the acquisition cost).

Certain of our reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commission will result in a change to the deferred ceding commissions liability to the extent that the underlying premiums are unearned and,

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conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the three months ended March 31, 2024 included reductions of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There was no net sliding scale commission adjustment during the three months ended March 31, 2025.

**9. Debt** 

We had the following senior unsecured debt outstanding as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Senior unsecured debt | $125.0 | $125.0 |
|  Less: unamortized debt issuance costs | (3.5) | (3.6) |
|  **Senior unsecured debt** | $**121.5** | $**121.4** |

---

We have a senior unsecured syndicated US dollar denominated loan facility with a September 2029 maturity date with an aggregate outstanding principal balance of $125 million. The credit agreement includes a $50 million revolving credit facility (which was unutilized and available as of March 31, 2025).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows us to withdraw predefined amounts. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts we prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, we were in compliance with all such covenants.

**10. Business acquisitions** 

In January 2025, our consolidated subsidiary Corniche Acquisition Co. Ltd. acquired an additional 61% of the outstanding share capital of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, in exchange for $56.2 million of consideration consisting of i) $17.1 million of cash paid at acquisition, and an additional $17.1 million of cash to be paid over two equal installments due in June 2025 and January 2026 that is reflected as a payable within "Accounts payable and other liabilities" in our condensed consolidated balance sheets as of March 31, 2025); ii) our previously held equity interest of $11.0 million; and iii) the non-controlling interests of $11.0 million. The acquisition of the additional 61% interest increased our ownership in Corniche from 19.5% to 80.5%. Previously, we accounted for the investment in Corniche as an equity method investment. Following the completion of the step acquisition, we remeasured our previously held equity interest to fair value at the step acquisition date. Accordingly, we recorded a revaluation gain of $2.0 million within "Net realized gains on investments" in our condensed consolidated statements of operations.

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The fair value of the assets acquired and liabilities assumed and non-controlling interest was estimated using an income approach. Key assumptions included market-observable inputs and management's estimates of nominal cash flows. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. We may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). We recorded goodwill from this acquisition, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of this acquisition after the respective closing date. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of the Company. The acquisition-related costs incurred during the three months ended March 31, 2025 were $0.7 million.

The following table provides our preliminary purchase accounting financial information for the Corniche acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2025** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $16.2 |
|  Other identifiable intangible assets | 21.6 |
|  Premiums receivable | 7.0 |
|  Other assets | 0.4 |
|  **Total assets acquired** | **45.2** |
|  **Liabilities assumed:** |  |
|  Accounts payable and other liabilities | 16.7 |
|  **Total liabilities assumed** | **16.7** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **28.5** |
|  Goodwill | 27.7 |
|  **Total acquisition consideration** | $**56.2** |

---

<sup>(1)</sup> Total net cash paid to date for the interest in Corniche was $0.9 million, net of cash acquired (consisting of the $17.1 million initial payment at acquisition date net of the $16.2 million cash acquired). As noted above, this does not include cash payments of $17.1 million that will be due in two installments through January 2026. 

A roll forward of goodwill and other intangible assets, net as of and for the three months ended March 31, 2025 is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **Goodwill and other<br>intangible assets, net** |
|  Balance as of January 1, 2025 | $64.0 |
|  Goodwill from acquisition of business | 27.7 |
|  Other intangible assets from acquisition of business | 21.6 |
|  Amortization of other intangible assets | (1.2) |
|  Foreign currency translation | 2.8 |
|  **Balance as of March 31, 2025** | $**114.9** |

---

We did not have any business acquisitions during the three months ended March 31, 2024.

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**11. Share-based compensation** 

***Share options granted***

No options have been granted during the first quarter of 2025. The following table summarizes the activity related to share option awards for the three months ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of January 1, 2025 | 179476 | $1615.12 | 9.1 | $— | $237.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled | (925) | 1615.12 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (2246) | 1615.12 |  |  |  |
|  **Outstanding as of March 31, 2025** | **176305** | $**1615.12** | **8.8** | $**—** | $**234.78** |
|  Options exercisable as of March 31, 2025 | 76646 | $1615.12 | 8.6 | $— | $175.92 |
|  Options unvested as of March 31, 2025 | 99659 | $1615.12 | 9.0 | $— | $280.05 |

---

The weighted average grant-date fair value of share options granted during the three months ended March 31, 2024 was $294.90.

For the three months ended March 31, 2025 and 2024, share-based compensation expense from share option awards granted was $2.4 million and $2.2 million, respectively, which is included in "Other expenses" in our condensed consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of March 31, 2025 and December 31, 2024 was $26.1 million and $29.6 million, respectively. The weighted average remaining requisite service period as of March 31, 2025 is 1.5 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**12. Earnings per share** 

The following table sets forth the computation of basic and diluted net earnings per common share:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions, except share data)*** | **2025** | **2024** |
|  **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Accelerant common shareholders | $6.5 | $7.1 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - basic | 1986221 | 1979284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive common shares <sup>(1)</sup> | 467175 | 399289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - diluted | 2453396 | 2378573 |
|  **Net income attributable to Accelerant per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $3.27 | $3.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $2.65 | $2.98 |

---

<sup>(1)</sup> Potential dilutive common shares consist of all of our convertible preference shares and certain of our share-based compensation options described in Note 11. The potential common shares excluded from the calculation of potential diluted shares outstanding were 176,229 and 137,188 shares for the three months ended March 31, 2025 and 2024, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. Such potential common shares solely related to share options granted and outstanding described in Note 11. 

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In the event of an initial public offering, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interest awards of Accelerant Holdings LP. The quantity of common shares that may be distributed is currently indeterminable as the amount holders will receive will be dependent upon the implied market value of the Company at the time of the initial public offering.

**13. Income taxes** 

For the three months ended March 31, 2025 and 2024, our effective tax rates were 49.7% and 82.5%, respectively. We use the estimated annual effective tax rate method for calculating our tax provision in interim periods, which reflects our best estimate of the effective tax rate expected for the full year. The effective tax rates in both periods were impacted by taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the US, UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

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Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

The composition of our effective tax rates among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(34.0) | $15.5 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.7%** | **27.8%** | **—** | **82.5%** |

---

**14. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $89.5 | $58.6 |
|  Net deferred tax assets | 50.3 | 51.6 |
|  Commission income receivable | 28.5 | 28.3 |
|  Funds withheld by reinsurers | 18.5 | 18.2 |
|  Deferred offering costs <sup>(2)</sup> | 17.2 | 16.0 |
|  Prepaid expenses | 11.2 | 11.8 |
|  Related party receivables (refer to Note 16) | 7.2 | 7.6 |
|  Prepaid retrocession premium | 5.1 | 5.3 |
|  Other | 28.1 | 24.3 |
|  **Total** | $**255.6** | $**221.7** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> As of the date of completion of these financial statements, the Company is preparing for its planned initial public offering. In the event that the Company postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

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**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Premium tax payables | $48.0 | $53.7 |
|  Commission refund liabilities | 40.1 | 38.8 |
|  Deposit liabilities | 29.5 | 43.9 |
|  Trade payables | 17.1 | 13.8 |
|  Corporation tax payable | 9.0 | 4.4 |
|  Accrued expenses and other | 65.9 | 43.6 |
|  **Total** | $**209.6** | $**198.2** |

---

**16. Related party transactions** 

As of March 31, 2025 and December 31, 2024, the outstanding balance of short-term financing by the Company to Accelerant Holdings LP was $7.3 million and $7.6 million, respectively. This balance is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

As of March 31, 2025 and December 31, 2024, we had accounts payable of $0.7 million and $0.9 million, respectively, to Accelerant Holdings LP, primarily related to legal costs.

For the three months ended March 31, 2025 and 2024, we incurred $2.1 million and $0.1 million, respectively, of advisory fees and expenses with Altamont Capital Management LLC, an affiliate.

**17. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

***Unfunded investment commitments***

As of March 31, 2025, we had unfunded commitments of $9.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**18. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was May 16, 2025. Based upon this review, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

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![LOGO](g543111g44i14.jpg)

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**Accelerant Holdings LP** 

**Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
|  **Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm](#fin543111_1) | F-109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_2) | F-110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_3) | F-111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_4) | F-112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_5) | F-113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_6) | F-114 |
|  **Notes to Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_7) | F-116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_8) | F-116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_9) | F-129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_10) | F-136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_11) | F-141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Variable interest entities](#fin543111_12) | F-142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Revenue from contracts with customers](#fin543111_13) | F-144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Reinsurance](#fin543111_14) | F-145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Deferred acquisition costs and deferred ceding commissions](#fin543111_15) | F-147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Income taxes](#fin543111_16) | F-147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Goodwill, other intangible assets and capitalized technology development costs](#fin543111_17) | F-151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Other assets](#fin543111_18) | F-153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Unpaid losses and loss adjustment expenses](#fin543111_19) | F-154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Debt](#fin543111_20) | F-159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_21) | F-160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Equity](#fin543111_22) | F-160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Business acquisitions](#fin543111_23) | F-163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Related party transactions](#fin543111_24) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 19. Commitments and contingencies](#fin543111_25) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 20. Employee benefits and profit interests plans](#fin543111_26) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 21. Share-based compensation](#fin543111_27) | F-167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 22. Dividend restrictions and statutory financial information](#fin543111_28) | F-168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 23. Subsequent events](#fin543111_29) | F-171 |
|  **Financial Statement Schedules** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[I.](#fin543111_30) [Summary of investments other than investments in related parties as of December 31, 2024](#fin543111_30) | F-172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[II.](#fin543111_31) [Condensed financial information of parent only as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_31) | F-173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[III.](#fin543111_32) [Supplementary insurance information as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_32) | F-178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[IV.](#fin543111_33) [Reinsurance for the years ended December 31, 2024, 2023 and 2022](#fin543111_33) | F-179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[V.](#fin543111_34) [Valuation and qualifying accounts for the years ended December 31, 2024, 2023 and 2022](#fin543111_34) | F-180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[VI.](#fin543111_35) [Supplementary information concerning property/casualty insurance operations as of and for the years ended December 31, 2024, 2023 and 2022](#fin543111_35) | F-181 |

---

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**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors of Accelerant Holdings and Shareholders of Accelerant Holdings LP

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Accelerant Holdings LP and its subsidiaries (the "Partnership") as of December 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

March 27, 2025

We have served as the Partnership's auditor since 2021.

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**Accelerant Holdings LP** 

**Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(expressed in millions of US dollars, except share data)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2024: $65.0 and 2023: $8.0) | $64.8 | $8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2024: $485.6 and 2023: $87.1) | 479.5 | 86.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value (cost 2023: $115.2) |  | 116.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 18.2 | 15.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 45.3 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **607.8** | **252.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash <sup>(1)</sup> | 1273.2 | 775.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2024: $2.4 and 2023: $2.7) <sup>(1)</sup> | 791.9 | 479.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 364.3 | 374.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 60.7 | 53.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net <sup>(1)</sup> | 64.0 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs <sup>(1)</sup> | 83.6 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets <sup>(1)</sup> | 219.1 | 154.1 |
|  **Total assets** | $**6092.5** | $**3735.7** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1109.0 | 482.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 193.0 | 120.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 746.9 | 544.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable <sup>(1)</sup> | 201.8 | 127.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities <sup>(1)</sup> | 198.8 | 132.0 |
|  **Total liabilities** | **5668.5** | **3451.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 19) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference | **50.2** | **44.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | $110.6 | $110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (21.0) | (9.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (211.7) | (232.3) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(110.0)** | **(118.7)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of consolidated subsidiary | 486.2 | 381.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | (2.4) | (23.1) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **483.8** | **358.7** |
|  **Total equity** | **424.0** | **284.1** |
|  **Total liabilities and equity** | $**6092.5** | $**3735.7** |

---

<sup>(1)</sup> See Note 6 for details of balances as of December 31, 2023 that were associated with consolidated variable interest entities.

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Consolidated Statements of Operations** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 39.1 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **602.8** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.9 | 169.2 | 116.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 | 33.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (4.8) | 3.5 | 1.7 |
|  **Total expenses** | **571.3** | **387.9** | **304.1** |
|  **Income (loss) before income taxes** | **31.5** | **(43.9)** | **(85.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **22.4** | **(64.1)** | **(96.4)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant Holdings LP** | $**26.7** | $**(48.8)** | $**(92.5)** |

---

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Consolidated Statements of Comprehensive Income (Loss)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $22.4 | $(64.1) | $(96.4) |
|  **Other comprehensive (loss) income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (4.8) | 1.8 | (18.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (losses) gains on fixed maturity securities | (5.7) | 1.4 | (1.6) |
|  **Other comprehensive (loss) income, net of tax** | **(10.5)** | **3.2** | **(19.6)** |
|  **Total comprehensive income (loss)** | **11.9** | **(60.9)** | **(116.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive loss attributable to non-controlling interests | 2.9 | 15.5 | 3.6 |
|  **Comprehensive income (loss) attributable to Accelerant Holdings LP** | $**14.8** | $**(45.4)** | $**(112.4)** |

---

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Consolidated Statements of Equity** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-**<br>**controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-**<br>**controlling<br>interests** | **Total<br>equity** |
|  **Balance, December 31, 2021** | $**34.0** | $**110.6** | $**12.1** | $**7.4** | $**(80.9)** | $**49.2** | $**172.0** | $**255.2** |
|  Net loss |  |  |  |  | (92.5) | (92.5) | (3.9) | (96.4) |
|  Other comprehensive (loss) income |  |  |  | (19.9) |  | (19.9) | 0.3 | (19.6) |
|  Capital contributions |  |  |  |  |  |  |  |  |
|  Accretion on preference shares | 4.8 |  |  |  | (4.8) | (4.8) |  |  |
|  Issuance of convertible preference shares by consolidated subsidiary <sup>(1)</sup> |  |  |  |  |  |  | 207.3 | 207.3 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (1.8) | (1.8) |
|  Issuance of non-controlling interests |  |  |  |  |  |  | 2.7 | 2.7 |
|  **Balance, December 31, 2022** | $**38.8** | $**110.6** | $**12.1** | $**(12.5)** | $**(178.2)** | $**(68.0)** | $**376.6** | $**347.4** |
|  Net loss |  |  |  |  | (48.8) | (48.8) | (15.3) | (64.1) |
|  Other comprehensive income |  |  |  | 3.4 |  | 3.4 | (0.2) | 3.2 |
|  Accretion of preference shares | 5.3 |  |  |  | (5.3) | (5.3) |  |  |
|  Issuance of convertible preference shares by consolidated subsidiary |  |  |  |  |  |  | 0.7 | 0.7 |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 4.8 | 4.8 |
|  Acquisition of non-controlling interests in subsidiaries |  |  |  |  |  |  | (5.5) | (5.5) |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (2.9) | (2.9) |
|  Issuance of non-controlling interests |  |  |  |  |  |  | 0.5 | 0.5 |
|  **Balance, December 31, 2023** | $**44.1** | $**110.6** | $**12.1** | $**(9.1)** | $**(232.3)** | $**(118.7)** | $**358.7** | $**284.1** |
|  Net loss |  |  |  |  | 26.7 | 26.7 | (4.3) | 22.4 |
|  Other comprehensive income |  |  |  | (11.9) |  | (11.9) | 1.4 | (10.5) |
|  Accretion of preference shares | 6.1 |  |  |  | (6.1) | (6.1) |  |  |
|  Issuance of convertible preference shares and contingently issuable detachable warrants by consolidated subsidiary <sup>(2)</sup> |  |  |  |  |  |  | 114.5 | 114.5 |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 8.4 | 8.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (3.5) | (3.5) |
|  Issuance of non-controlling interests <sup>(3)</sup> |  |  |  |  |  |  | 8.6 | 8.6 |
|  **Balance, December 31, 2024** | $**50.2** | $**110.6** | $**12.1** | $**(21.0)** | $**(211.7)** | $**(110.0)** | $**483.8** | $**424.0** |

---

<sup>(1)</sup> Issuance of convertible preference shares included net cash proceeds of $204.8 million and $2.5 million related to a non-cash financing activity consisting of the issuance of 2,500 Class A convertible preference shares to a related party. For further information, refer to Note 16. 

<sup>(2)</sup> Issuance of convertible preference shares was $104.4 million and contingently issuable detachable warrants of $10.1 million on a relative fair value basis, net of acquisition costs of $10.7 million. 

<sup>(3)</sup> Refer to Note 17 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Consolidated Statements of Cash Flows** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $22.4 | $(64.1) | $(96.4) |
|  **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gains) losses on investments | (1.9) | (0.5) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.0) | (17.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (2.3) | (2.9) | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax (benefits) expenses | (40.9) | 0.3 | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on commutation |  | (4.8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (4.8) | 3.5 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (5.7) | (0.5) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 1.6 | 0.4 | 0.1 |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (319.0) | (221.8) | (114.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (648.3) | (285.7) | (376.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (471.0) | (252.9) | (180.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 7.5 | (162.0) | (74.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs <sup>(1)</sup> | (8.2) | (19.3) | (16.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 540.3 | 326.7 | 241.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 674.8 | 377.0 | 422.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 636.4 | 215.2 | 105.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 68.4 | 32.6 | 59.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 203.0 | 303.4 | 100.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 72.5 | 105.0 | 6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 44.7 | (61.7) | (14.5) |
|  **Net cash provided by operating activities** | **785.5** | **289.9** | **65.7** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 114.8 | 88.6 | 126.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 84.3 | 41.5 | 14.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 0.3 |  | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 18.6 | 10.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | (46.9) | (201.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (500.7) | (73.8) | (56.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (4.3) | (0.6) | (9.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.4) | (0.6) | (6.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | (56.5) | (0.7) | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of subsidiaries, net of cash acquired | (0.5) | 2.8 | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (34.4) | (32.6) | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (1.3) | (0.1) | 0.6 |
|  **Net cash used in investing activities** | **(380.1)** | **(11.7)** | **(147.5)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests - issuance of preference shares, net of issuance costs <sup>(2)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20.0 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of non-controlling interests in subsidiaries |  | (5.5) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (3.5) | (2.9) | (1.8) |
|  **Net cash provided by financing activities** | **110.3** | **10.3** | **254.7** |
|  **Net increase in cash, cash equivalents and restricted cash** | **515.7** | **288.5** | **172.9** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (18.3) | 3.3 | (14.6) |
|  Cash, cash equivalents and restricted cash at beginning of year | 775.8 | 484.0 | 325.7 |
|  **Cash, cash equivalents and restricted cash at end of year** | $**1273.2** | $**775.8** | $**484.0** |

---

<sup>(1)</sup> Deferred acquisition costs are reduced by the ceding commissions recorded as a reimbursement for acquisition costs of insurance contracts subject to reinsurance.

<sup>(2)</sup> Issuance of convertible preference shares related to non-controlling interests are net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. The 2024 issuance of preference shares included contingently issuable detachable warrants. 

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Consolidated Statements of Cash Flows (continued)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 45.5 | 20.2 | 21.1 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1225.9 | 775.8 | 482.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents  | 47.3 |  | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1273.2** | $**775.8** | $**484.0** |

---

***<u>Supplemental non-cash activity information:</u>***

The Partnership is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). For the year ended December 31, 2023, the Group had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. See Note 8 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, the Group had non-cash financing activities consisting of the issuance of 2,500 Class A convertible preference shares to a related party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related party by way of a $0.5 million loan funded by Accelerant Holdings. In addition, non-controlling interest increased by $2.3 million due to the Group's acquisition of subsidiaries.

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Notes to Consolidated Financial Statements** 

**1. Nature of business and basis of presentation** 

***Nature of business***

Accelerant Holdings LP ("AHLP") is a Cayman Islands exempted limited partnership, formed in December 2018 with capital provided by initial investors, which included entities affiliated with Altamont Capital Partners, a private equity firm, as well as certain members of the Partnership's executive management team. AHLP is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). Accelerant Holdings, together with its risk capital partners, provide property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). AHLP, together with its subsidiary companies ("we","us","our" or the "Partnership") focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

Accelerant Holdings is the primary operating holding company of the Group.

Accelerant Holdings (Cayman) Ltd ("Accelerant Cayman") is a holding company incorporated in the Cayman Islands and is the entity which owns the underlying operating group companies engaged in the Accelerant business.

***Basis of presentation***

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities. Certain prior year comparative information has been reclassified to conform to the current presentation.

Earnings per share is not presented within these financial statements on the basis that AHLP, as predecessor of Accelerant Holdings, will not be issuing any securities in the public market and it will be dissolved in connection with the initial public offering of Accelerant Holdings as the successor and intended registrant.

**2. Summary of significant accounting policies** 

***Principles of consolidation***

The consolidated financial statements include all the controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests ("VOE"), and variable interest entities ("VIEs") of which we are the primary beneficiary. Non-controlling interests consist of equity that is not attributable directly or indirectly to us. Equity investments in entities that are not consolidated in which we have significant influence over the operating and financial policies are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation.

***Variable interest entities***

VIEs are required to be consolidated by the entity deemed to be the primary beneficiary which is defined as the investor that has the power to direct the activities of the VIE and will absorb a portion of the VIEs expected losses or residual returns that could potentially be significant to the VIE.

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To determine whether the Partnership or its consolidated subsidiaries have a variable interest in a VIE, we analyze whether we are the primary beneficiary of the VIE by considering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's purpose and design, including the risks the VIE intended to pass through to its variable interest
holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms between the VIE and its variable interest holders and other parties involved with the VIE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the power to direct the activities of the VIE, including those that most
significantly impact the VIE's economic performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the obligation to absorb losses or the right to receive benefits from the
VIE, particularly those that could potentially be significant to the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any relevant related party relationships.

We reassess our determination of whether we are the primary beneficiary of a VIE upon changes in facts and circumstances that could potentially change our assessment (i.e., reconsideration events).

***Foreign operations remeasurement and translation***

The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains or losses are reflected in our consolidated statements of operations. Functional currency assets and liabilities are translated into our reporting currency, US dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of other comprehensive (loss) income in partners' equity. Amounts included in our consolidated statements of operations are translated using the applicable exchange rates existing during the annual period.

***Business combinations***

The acquisition method of accounting is used to account for all business combinations. The consideration transferred for the acquisition of an entity is comprised of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair values of the assets transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities incurred to the former owners of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity interests issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any asset or liability resulting from additional consideration arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any pre-existing equity interest (non-controlling interest upon consolidation) in the subsidiary.

Identifiable assets acquired (including intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. We recognize any non-controlling interests in the acquired entity at fair value. Acquisition-related costs are expensed as incurred.

Goodwill for business combinations is recorded as the excess of the consideration transferred, over the fair value of the net identifiable assets acquired.

***Use of estimates***

The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of our consolidated

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financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables on unpaid losses, direct and ceding commission income subject to sliding scale adjustments based on actual and expected loss ratios of the underlying insurance policies, valuation allowance on deferred income taxes, fair values of investments, valuation allowance for expected credit losses, recoverability of goodwill and other intangible assets, and useful economic lives of intangible assets.

***Premiums***

Premiums are generally recorded as written upon inception of the policy, less cancellations. Premiums written are based on contract and policy terms. Premiums are primarily earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

A premium deficiency occurs if the sum of anticipated losses and loss adjustment expenses and deferred acquisition costs ("DAC") exceed the sum of anticipated investment income and unearned premiums. A premium deficiency is recorded by charging any deferred acquisition costs to expenses to the extent required to eliminate the deficiency. If the premium deficiency exceeds deferred acquisition costs, then a liability is accrued for the excess deficiency. No such deficiency has been recognized as of and for the years ended December 31, 2024, 2023 and 2022.

***Deferred policy acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. The costs principally consist of commissions, brokerage, premium tax expenses and direct agency costs. The amounts presented within our consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies the Group issues, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from the Group's reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs are expensed in the period identified.

**Ceding commission income** 

The Group cedes a significant portion of its premiums written to reinsurance companies. This generates ceding commissions which are recorded as a reimbursement for (and reduction of) the pro-rata share of the acquisition costs related to the insurance contracts subject to the reinsurance. Ceding commissions that are more than the proportionate amount of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of the excess deferred ceding commissions is recorded as a component of "Ceding commission income" our the consolidated statements of operations.

Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts. These adjustments often occur well after the ceding commissions are earned based on the development of longer-tail insurance liabilities. In those instances, the commission adjustments are recorded directly as income or loss when determined because they are no longer subject to deferral as the underlying policy periods have ended. Accordingly, in all cases, the Group adjusts ceding commissions as of the reporting date for its best estimate of loss experience for reinsured insurance contracts. Total ceding commission income earned was $249.5 million, $164.2 million and $44.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

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***Direct commission income***

The Group operates its Risk Exchange (within the Exchange Services segment - refer to Note 3), its own insurance agencies (that place insurance coverage through a network of MGAs, including independent, partially owned and wholly owned MGAs) and (re)insurance companies. The Risk Exchange generates revenue primarily through commission paid by affiliated and third-party insurance carriers for various agency services and fees paid by third-party reinsurance brokers for placement services.

The Group's insurance agencies operate through a network of MGAs and third-party claim administrators ("TPAs") that execute various activities on behalf of the Risk Exchange in return for commissions. Transactions among third-parties are reflected in the Group's financial statements, while commissions and other amounts paid by and among wholly-owned entities are eliminated in consolidation.

The Exchange Services segment recognizes revenue as direct commission income on a net basis, with its commission income offset by the commission expense paid to MGAs, reflecting that Exchange Services acts in an agency capacity on behalf of the insurance companies in connection with its performance obligations for underwriting, binding, and placement of insurance coverage.

Exchange Services also acts in a principal capacity for the post-placement obligations such as supporting the adjudication of large claims through management of various third-party administrators which perform claims handling and settlement services.

The Group estimates the stand-alone selling price for each separate performance obligation and allocates the total commission income between the performance obligations. The commissions allocated to the performance obligation of underwriting, binding and placement of insurance coverage are earned upon the effective date of the insurance policy, while the corresponding price allocated to post-placement obligations are recognized over time as the performance obligations are fulfilled on a straight-line basis.

Commissions paid by third-party insurance carriers are also subject to certain contractual clauses that give rise to variable consideration as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions received are subject to adjustment based on the loss experience in the underlying policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions are also subject to return if there are cancellations of the underlying policies.

Commission revenue is only recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. A commission refund liability is estimated for the potential return of commissions.

*<u>Legacy business:</u>* Prior to the Group's commencement of underwriting activities in mid-2020, the Group contracted with other (re)insurance companies in exchange for direct commission income. Such legacy business is subject to sliding scale commissions based on loss experience for the subject insurance policies (whereby favorable development will result in incremental commission income and adverse development will result in a reversal of commission income). For the years ended December 31, 2024, 2023 and 2022, total commission (reversals) income due to (adverse) favorable development related to the Group's legacy business was $(9.6) million, $(5.1) million and $6.9 million, respectively. The total commission refund liability associated with this arrangement was $38.8 million and $29.8 million as of December 31, 2024 and 2023, respectively.

The premiums written under the legacy business were fully reinsured with a third-party reinsurance company, which in turn was subject to a quota share retrocession arrangement that included a requirement to post collateral and funds withheld. As of December 31, 2024 and 2023, there were $18.2 million and $20.0 million, respectively, of aggregate funds withheld and collateral under the retrocession contract recognized as an asset within our balance sheet. The balances are reviewed periodically and are adjusted where required, in line with the claims settlement payments and related experience of the retrocession contract.

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***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred.

***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology.

***Other expenses***

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to stock-based compensation, legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formation costs that support our growing business.

***Income taxes***

The provision for income tax recognized in our consolidated statements of operations consists of current and deferred tax. The calculation of current and deferred tax is based on tax rates and tax laws which have been enacted in the reporting period. The deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. This is assessed based on forecasted future operating results, adjusted for significant non-taxable income and expenses, and specific limits on the use of any unused tax losses or credits. A valuation allowance against deferred tax assets is recorded, if it is more likely than not, that all, or some portion of, the benefits related to these deferred tax assets will not be realized.

Deferred tax liabilities are generally recognized in full, with limited exceptions. Potential tax implications of repatriation from our unremitted earnings that are indefinitely reinvested are driven by facts at the time of distribution. Therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such earnings were remitted. We review all tax positions and determine whether our position is more likely than not to be sustained, upon examination by regulatory authorities. Recognized income tax positions are measured at the largest amount, which has a greater than 50 percent likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

We classify all interest and penalties (if any) related to uncertain tax positions as income tax expense. We did not incur any interest and penalties related to uncertain tax positions, for the years ended December 31, 2024, 2023 and 2022. We did not have any unrecognized tax benefits associated with any uncertain tax positions for the year ended December 31, 2024.

***Cash, cash equivalents and restricted cash***

Cash consists primarily of cash on hand and bank deposits. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of acquisition and are stated at amortized cost, which approximates fair value. The Group's restricted cash balances are held in segregated accounts and are legally restricted as to withdrawal or usage.

***Investments***

Short-term investments consist of investments with a maturity greater than three months to one year from the date of purchase and are carried at fair value.

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Investments in fixed maturity securities consist of bonds with a maturity of greater than one year from the date of purchase. The amortized cost basis of fixed maturity securities is adjusted for the amortization of premiums and accretion of discounts. This amortization or accretion is included in periodic income in our consolidated statements of operations. Our investments in fixed maturity securities are considered available-for-sale and are carried at fair value. Changes in the fair value of available-for-sale investments are recognized as a separate component of partners' equity (other comprehensive income (loss)) until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available.

Our equity securities consist of interests in investment funds that primarily invest in debt securities. Equity securities are measured at fair value with changes in fair value recognized in "Net unrealized gains on investments" in our consolidated statements of operations. Dividends on equity securities and other investments are included in "Net investment income" on the ex-dividend date in our consolidated statements of operations. Realized gains and losses on disposition of investments are based on specific identification of investments sold on the trade date. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in "Net investment income," net of investment management and custody fees, in our consolidated statements of operations.

We have certain unconsolidated investments where we have significant influence over the operating and financial policies of the investee. We account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments in our results for the period in "Net investment income" in our consolidated statements of operations. Any decline in value of equity method investments we consider to be other-than temporary is charged to income in the period in which it is determined.

Other investments include investments in limited partnership and private equity investments in operating entities, as well as associated warrants to acquire additional ownership interests, whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investment from the same issuer occur. The Partnership recorded $19.8 million, $12.1 million and $3.5 million of income related to these investments for the years ended December 31, 2024, 2023 and 2022, respectively.

We have elected to classify distributions received from equity method investees using the cumulative earnings approach where distributions received are considered returns on investment and are classified as cash inflows from operating activities unless the amount of cumulative distributions received exceed cumulative earnings and are thereby determined to be returns of investment (that would then be classified as cash inflows from investing activities). Any distribution from investments accounted for under the measurement alternative are classified as investing activities.

***Fair value measurement***

Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date, in the principal or most advantageous market for the asset or liability, in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions, and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

We perform valuations for financial reporting purposes. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of maximizing the use of market-based information.

We use prices from independent pricing vendors to determine fair value estimates of investment funds, which are based on quoted prices in an active market and are disclosed as Level 1. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing vendors has not historically resulted in adjustments to the prices obtained from the pricing service. The independent pricing services used by our vendors obtain actual transaction prices for securities that have quoted prices in active markets. We derive the fair value of fixed maturity securities principally from market price data for identical assets from exchange or dealer markets and from market observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals and are disclosed as Level 2. Rights to acquire equity interests, including warrants, are disclosed as Level 3 due to the use of significant unobservable inputs. We use valuation techniques that rely on internally developed models and reported values from investment managers rather than quoted prices or observable market data. The market for these investments is illiquid and there is no active market.

***Premiums receivable***

Premiums receivable include insurance premiums that are both amounts currently due and not yet due from policyholders as well as amounts due from agents. The balance is reported net of a valuation allowance for expected credit losses. Such allowance is based upon ongoing review of amounts outstanding, the length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2024 and 2023, the Group had valuation allowance for expected credit losses of $2.4 million and $2.7 million, respectively.

***Goodwill and other intangible assets***

Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination at the date of acquisition. Goodwill is allocated to reporting units based on the expected benefit from the business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. If the goodwill asset is determined to be impaired, it is written down in the period in which the determination is made.

We perform our annual goodwill impairment assessment as of October 1 each year, or more frequently if indicators of impairment exist. For goodwill impairment testing, we have the option to first assess qualitative factors to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of the reporting unit is greater than the carrying amount. If our assessment indicates less than a 50 percent probability that the fair value of a reporting unit is greater than the carrying value or otherwise we elect to bypass the qualitative assessment, we quantitatively estimate the reporting unit's fair value. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.

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We determine the fair value of the reporting units using the income approach or the market approach. Under the income approach, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. We prepare cash flow projections based on our estimates of revenue growth rates and operating margins, taking into consideration the historical performance and the current macroeconomic industry and market conditions. Under the market approach, we estimate fair value based on market multiples of earnings, derived from comparable publicly traded companies, with similar characteristics as the reporting unit.

Other intangible assets include finite-lived intangible assets that relate to customer relationships and trademarks. Finite-lived intangible assets are recognized at fair value on the acquisition date and amortized over their estimated useful lives. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, generally five to fifteen years, and are reviewed for impairment when events and circumstances indicate that their carrying value may not be recoverable. Estimated useful lives of finite-lived intangible assets are required to be reassessed on at least an annual basis.

Other indefinite-lived intangible assets relate to insurance licenses and are not amortized. We test such assets for impairment annually as of October 1 or more frequently when events and circumstances indicate that their carrying value may not be recoverable.

***Capitalized technology development costs***

We develop internal-use software and implements cloud-computing arrangement software. We capitalize certain of those costs based on the nature of the development activities being performed, including coding, software installation, testing and significant upgrades or enhancements to existing software that result in additional functionality. Costs capitalized to develop internal-use software are amortized using the straight-line method over the estimated useful life, which we generally estimate to be five years, beginning when the software is substantially complete and ready for its intended use. Costs capitalized to implement cloud computing arrangements, are amortized over the term of the hosting arrangement using the straight-line method. Costs associated with activities not described above are expensed as incurred.

We periodically assess the capitalized software's estimated useful lives and potential impairment indicators when there is risk such costs may not be recoverable.

***Unpaid losses and loss adjustment expenses***

The reserves for losses and LAE include estimates for unpaid claims and claim expenses on reported losses as well as an estimate of losses incurred but not reported ("IBNR"). It represents management's best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events amongst other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in our consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and we account for them as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. Our estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed as new or improved methodologies are developed. The adequacy of the

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reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods employed by the Group include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by underwriting year and development month, segmented into MGAs and products or lines of business as deemed appropriate and material. The ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because the Group has limited data to assess its own claims experience given the recently formed nature of the business, the Group uses industry and peer-group data, in addition to its own data, as a basis for selecting its expected paid and reporting patterns.

The recorded reserves represent the best estimate of ultimate liabilities, based on currently known facts, current law, current technology, and reasonable assumptions where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

***Reinsurance recoverables and payables***

The Group's insurance companies use reinsurance to mitigate exposure to losses arising from direct insurance policies, limit liability on specific risks and catastrophes and to stabilize loss experience. The Group also utilizes reinsurance to manage capital (both regulatory and operational) and solvency and as a mechanism to pool risks to maximize diversity of the portfolio.

The Group purchases various types of reinsurance, including excess of loss contracts (that protect against losses above stipulated amounts) together with quota share contracts (to provide cover for adverse losses on a total portfolio basis). Certain of these reinsurance contracts include risk limiting features, such as loss limits, sliding scale commissions and reinstatement provisions. Risk tolerance is set based on a low probability of exceeding loss limitations. The Group closely monitors its exposures against the available reinsurance to ensure adequate protection. The impact of the sliding scale commission adjustments following adverse loss experience (resulting in a return of ceding commission to the reinsurers and therefore an offset to the benefit of reinsured losses) could be material to the Group.

Premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Amounts applicable to reinsurance ceded for unearned premiums are reported as Ceded unearned premiums in our consolidated balance sheet.

Certain reinsurance contracts purchased by the Group are retroactive (and take the form of a loss portfolio transfer), whereby the reinsurer agrees to reimburse the Group because of past insurable events. When a reinsurance contract does not transfer significant insurance risk, the Group accounts for the premium paid (net of any amount of premium that will be retained by the reinsurer) as a deposit asset in reinsurance recoverables within our consolidated balance sheets. The amount of the initial deposit asset is adjusted in subsequent reporting periods by calculating an effective yield on the deposit based on actual and expected future payments. Such adjustments are reported as interest income within "Net investment income" in our consolidated statements of operations.

Reinsuring loss exposures does not relieve the Group from its obligation to policyholders in the event of nonperformance by the reinsurers, thus a credit and / or dispute exposure exists to the extent that any reinsurer is

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unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, the Group evaluates the financial condition of its reinsurers and typically holds collateral, in the form of funds withheld, trusts and letters of credit, as security under the reinsurance agreements.

Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the insured business. Reinsurance premiums, commissions, and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts.

The Group assesses its reinsurance assets for recoverability on a regular basis. If there is objective evidence that the reinsurance asset is not recoverable due to reinsurer insolvency, a contractual dispute, or other reasons, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognizes that loss in our consolidated statements of operations.

The Group may periodically enter commutation agreements with its reinsurers. Such agreements result in the termination of all or part of a reinsurance agreement whereby the Group would assume the obligation to insure the previous loss reserves subject to the reinsurance agreement in exchange for cash or other consideration. Upon execution of a commutation agreement, the Group reassumes the risk of liabilities for losses previously ceded to the reinsurer, while the reinsurer is generally released of its obligations under the commuted (legally extinguished) portions of the reinsurance agreement. The Group's insurance subsidiaries that originally ceded the insurance business account for a commutation by eliminating their existing reinsurance recoverable and recognizing a gain or loss for the difference between the consideration received and the previously recognized reinsurance recoverable.

*<u>Flywheel Re:</u>* The Group has entered into a quota share agreement, where it cedes certain insured risks to Flywheel Re Ltd. ("Flywheel Re"). Flywheel Re is a Class C Insurer licensed in the Cayman Islands and is a special purpose reinsurance company that provides multi-year collateralized quota share capacity to the Group backed by long-term institutional investors. Flywheel Re is not consolidated in the Group's consolidated financial statements because the Group i) does not have the power over the activities that most significantly impact Flywheel Re's economic performance, and ii) it is wholly-owned by third-party investors. Each investor group in Flywheel Re purchased preferred shares in a segregated portfolio owned solely by such investor group. The purchase price of the preferred shares was then pledged as collateral to Accelerant Re (Cayman) Ltd. ("Accelerant Re"), the cedent to Flywheel Re under each applicable reinsurance agreement. Accelerant Re cedes premium and losses in accordance with the terms of the applicable reinsurance agreement, to Flywheel Re and all investors are obligated to accept such premium and losses over the course of three underwriting years. The Group's reinsurance arrangements with Flywheel Re have been contracted on an arm's-length basis.

***Funds held under reinsurance***

Certain of the Group's reinsurance contracts provide for an arrangement where, rather than making a cash payment or transferring investments for ceded premiums written, The Group holds the related amounts as assets to collateralize the reinsurer's obligations and establishes corresponding funds held under reinsurance liabilities.

***Concentrations of credit risk***

Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are held with financial institutions of high quality. For equity securities and fixed maturity securities, we manage our credit risk through diversification in terms of instruments by issuer, geographic region and related industry.

The ceding of insurance through the Group's reinsurance partners does not legally discharge the Group from its primary liability for the full amount of the policy coverage. The Group will be required to pay the loss and bear

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the collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, The Group evaluates the financial condition of its reinsurers and monitors both individual, and concentrations of, credit risk. Refer to Note 8 for more information on how the Group manages credit risk related to its reinsurance recoverables.

***Segment information***

The Partnership's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer ("CEO") of the Group. The CODM has authority and executive oversight over operating decisions and resource allocations such as significant business strategy decisions, capital expenditures, the budget and forecasting processes and all new material ventures and contracts. Additionally, the CODM drives the execution of these activities and reviews operating results to assess performance and makes resource allocation decisions. Each segment has a segment manager who reports directly to the CODM.

Adjusted EBITDA, a non-GAAP financial measure, is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the performance of segments, which the CODM utilizes to allocate our resources. We define Adjusted EBITDA as net income (loss) adjusted to remove the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses. We believe the exclusion of the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses is pertinent to understanding our performance attributable to our core operating activities, as well as comparability to prior periods and peers. Segment Adjusted EBITDA also excludes certain costs that are not allocated to segments because they are separately managed at the consolidated corporate level. The unallocated costs primarily include general and administrative expenses such as those incurred in the legal and accounting functions.

Refer to Note 3 for more information on our segments.

***Partners' redeemable preference shares***

AHLP has issued various financial instruments, including convertible preference shares. The preference shares are evaluated for mandatorily redeemable and potential liability classification. We accounts for instruments containing redemption rights that are either within the control of the preference shareholder or subject to redemption upon the occurrence of uncertain events not solely within our control within mezzanine equity. Any instruments containing holder redemption rights or that are deemed probable of redemption are remeasured to their maximum redemption value as of each reporting date.

***Convertible preference shares***

Accelerant Holdings has issued convertible preference shares that are evaluated for features that may result in their characterization as permanent equity, temporary equity (often referred to as "mezzanine equity"), or a liability.

The Class A and Class B preference shares are recorded at their respective fair values on the dates of issuance, net of issuance costs, within permanent equity. Such convertible preference shares are subject to actual liquidation or deemed liquidation events, such as an initial public offering of common shares of Accelerant Holdings, or a sale of Accelerant Holdings. The Class A and Class B shares are recorded as a component of permanent equity because, while they are subject to redemption on the occurrence of any such liquidation events, all of the holders of equally or more subordinated equity instruments of Accelerant Holdings are also entitled to receive the same form of consideration (for example, cash or shares) upon the occurrence of the event that gives rise to the redemption (that is, all classes of shares subordinate to the Class A and Class B preference shares would also be entitled to be redeemed).

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The Class C preference shares were issued with contingently issuable detachable warrants that only become exercisable on the non-occurrence of an initial public offering or other liquidation event within two years of issuance of the Class C preference shares. Such warrants are equity-linked instruments and are considered issued for accounting purposes. The Class C preference shares and contingently detachable issuable warrants at their relative fair values on the date of issuance, net of issuance costs, within temporary equity and additional paid in capital, respectively. The Class C preference shares are recorded in temporary equity as they contain redemption rights that are contingent upon the occurrence of actual liquidation or deemed liquidation events of Accelerant Holdings, such as an initial public offering of common shares of Accelerant Holdings, or a sale of Accelerant Holdings, that are not solely within Accelerant Holdings' control, and that such redemption rights are not available to other holders of equally or more subordinated equity instruments of Accelerant Holdings. The Class C preference shares were deemed probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C preference shares at the date of issuance. In subsequent periods, if the Class C preference shares are not converted to common shares and the condition for redemption is met, Accelerant Holdings will recognize the redemption value immediately. The difference in redemption value from carrying value will be reflected as a deemed dividend and an increase of the Class C preference shares, as well as a corresponding reduction to additional paid in capital and earnings per share. The Class C preference shares would then be subject to cash settlement. If the warrants are never issued, there is no adjustment to the previous amounts in additional paid in capital. If the warrants are issued and are subsequently exercised for common shares, the amount of consideration paid for the exercise price becomes a component of incremental additional paid in capital and par value of the common shares when such common shares are issued in exchange for the warrants.

We reflect these shares as non-controlling interests within our financial statements as the convertible preference shares were issued by Accelerant Holdings, as a consolidated subsidiary, not Accelerant Holdings LP.

***Contingent liabilities***

We record contingent liability provisions when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

**Share-based compensation** 

Share options we have awarded to employees are measured at fair value at each grant date. We calculate the fair value of the share options using a weighted-average of values derived using the Black-Scholes and Hull-White option-pricing models. The Hull-White model is a trinomial lattice model that incorporates the impact of expected employee exercise behavior to estimate the option value.

Use of such option-pricing models requires us to make several assumptions, including the value of our common shares, estimated equity volatility and expected term to exercise. We evaluate all assumptions employed in the valuation of the share option awards as of each grant date. We estimate volatility based upon comparison to certain publicly traded companies. We determine an expected option term for each hypothetical scenario based on contractual term and exercise probability assumptions, as we do not have sufficient historical data to develop an estimate based upon participant behavior. We use a risk-free interest rate equal to the US treasury bond yield with an equivalent period as the expected option term.

We recognize share-based compensation expense over the requisite service period for awards using the straight-line method and recognize forfeitures as they occur.

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***Recent accounting pronouncements***

***Recently adopted accounting pronouncements***

*<u>Measurement of credit losses:</u>* On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2016-13, *Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments*, issued by the Financial Accounting Standards Board ("FASB") in June 2016. The ASU replaced the "incurred loss" approach that was previously applied to determine credit losses with an "expected loss" model for financial instruments measured at amortized cost. The expected loss model changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, premiums receivable and reinsurance recoverables. Our valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets, as well as available for sale securities, are now presented on the financial statements net of the valuation allowance.

We analyzed our reinsurance recoverables, including the current credit quality and credit outlook for reinsurers with at-risk uncollateralized receivable balances. In assessing premium receivables, which are short-term in nature, we assessed customer balances leveraging our current process for analyzing collectability of premium receivables. The adoption of the ASU did not have a material impact on our consolidated financial statements and disclosures and no adjustment to the beginning balance of retained earnings was required upon adoption.

*<u>Segment Reporting:</u>* In November 2023, the FASB issued ASU 2023-07, *Segment Reporting, Improvements to Reportable Segment Disclosures*. to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profits or losses in assessing segment performance. We adopted ASU 2023-07 in our annual financial statements for the year ended December 31, 2024, which was applied retrospectively to all prior periods presented. Refer to Note 3 for the expanded segment disclosures.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued an ASU requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

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*<u>Income Tax:</u>* In December 2023, the FASB issued an ASU to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

**3. Segment information** 

We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way the CODM assesses performance of the business and makes decisions on the allocation of resources.

***Exchange Services***

Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and risk capital partners and that facilitate the exchange of risk. Insurance companies that join the Risk Exchange pay Accelerant a fixed volume-based fee for sourcing, managing, and monitoring the business they write, and the Risk Exchange pays commissions to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net commissions, fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.

***MGA Operations***

MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents

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the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a VOE). For further information on our acquisition of Mission, refer to Note 6.

The Owned Members reporting unit comprises MGAs in which the Partnership has made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.

***Underwriting***

Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant's consolidated insurance companies and Accelerant Re. Our Underwriting segment is a strategic asset that enables access to Accelerant's portfolio for current and prospective risk capital partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.

Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as DAC for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.

We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we generate additional third-party insurance relationships through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions would not be subject to elimination).

The following includes the financial results of our three reportable segments for the years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

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***Financial information by segment:***

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $82.0 | $82.0 | $— | $167.5 | $249.5 |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1.2 |  | 39.1 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19.0 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.9** | **(131.6)** | **602.8** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses <sup>(3) (4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.9 | (56.7) | 227.9 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(16.0)** | $**(52.1)** | $**112.8** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 4.8 |
|  **Income before income taxes** |  |  |  |  |  |  | $**31.5** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

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<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of i) $30.8 million of expenses attributable to Exchange Services and MGA Operations that form components 

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of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments.

<sup>(5)</sup> Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense and $4.2 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $78.4 | $78.4 | $— | $85.8 | $164.2 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses <sup>(3) (4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

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<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

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<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2023 consists of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  Revenues |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income <sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Net earned premiums |  |  | 141.2 | 141.2 |  |  | 141.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses <sup>(3) (4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 13.4 | (15.1) | 116.1 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.9)** | $**(31.6)** | $**(39.8)** |
|  Interest expenses |  |  |  |  |  |  | (4.3) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (33.5) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.7) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(85.1)** |

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<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.

<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $10.1 | $39.0 | $31.2 | $80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2022 consists of $11.4 million of system development non-operating costs, $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when the Group suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other individually insignificant costs. 

We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. We do not allocate assets to reportable segments as we do not use such information, except for (re)insurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments.

All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the years ended December 31, 2024, 2023 and 2022.

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The following table presents our revenues by geography:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $151.2 | $98.3 | $249.5 |
|  Net earned premiums | 165.3 | 61.3 | 226.6 |
|  Direct commission income | 41.9 | 24.8 | 66.7 |
|  Net investment income | 21.2 | 17.9 | 39.1 |
|  Net realized gains on investments |  | 1.9 | 1.9 |
|  Net unrealized gains (losses) on investments | 19.8 | (0.8) | 19.0 |
|  **Total revenues** | $**399.4** | $**203.4** | $**602.8** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $81.5 | $82.7 | $164.2 |
|  Net earned premiums | 77.9 | 27.2 | 105.1 |
|  Direct commission income | 18.6 | 19.0 | 37.6 |
|  Net investment income | 11.6 | 7.7 | 19.3 |
|  Net realized gains on investments | 0.2 | 0.3 | 0.5 |
|  Net unrealized gains on investments | 12.1 | 5.2 | 17.3 |
|  **Total revenues** | $**201.9** | $**142.1** | $**344.0** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income (adjustments) <sup>(1)</sup> | $48.3 | $(4.0) | $44.3 |
|  Net earned premiums | 46.0 | 95.2 | 141.2 |
|  Direct commission income | 2.0 | 32.5 | 34.5 |
|  Net investment income | 1.3 | 1.3 | 2.6 |
|  Net realized losses on investments |  | (3.9) | (3.9) |
|  Net unrealized gains (losses) on investments | 3.4 | (3.1) | 0.3 |
|  **Total revenues** | $**101.0** | $**118.0** | $**219.0** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the years ended December 31, 2024, 2023 and 2022 resulting from the loss experience of covered insurance contracts, refer to Note 9.

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##### [**Table of Contents**](#toc)
**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $30.6 | $0.3 | $(0.3) | $30.6 |
|  US government and agency | 32.2 | 0.2 | (0.3) | 32.1 |
|  Non-US government and agency | 2.5 | 0.1 |  | 2.6 |
|  Residential mortgage-backed | 19.0 | 0.1 | (0.7) | 18.4 |
|  Commercial mortgage-backed | 2.8 | **—** |  | 2.8 |
|  Other asset-backed securities | 8.0 | **—** |  | 8.0 |
|  **Total fixed maturity and short-term investments** | $**95.1** | $**0.7** | $**(1.3)** | $**94.5** |

---

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##### [**Table of Contents**](#toc)
The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $6.9 | $(0.1) | $7.2 | $(0.2) | $14.1 | $(0.3) |
|  US government and agency | 9.5 | (0.3) | 1.1 |  | 10.6 | (0.3) |
|  Residential mortgage-backed | 4.3 | (0.2) | 6.9 | (0.5) | 11.2 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**20.7** | $**(0.6)** | $**15.2** | $**(0.7)** | $**35.9** | $**(1.3)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at December 31, 2024 and 2023 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $105.6 | $104.6 |
|  Due after one year through five years | 277.0 | 275.0 |
|  Due after five years through ten years | 76.4 | 75.0 |
|  Due after ten years | 6.5 | 6.2 |
|  Residential mortgage-backed | 44.4 | 43.0 |
|  Commercial mortgage-backed | 18.6 | 18.4 |
|  Other asset-backed securities | 22.1 | 22.1 |
|  **Total** | $**550.6** | $**544.3** |

---

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

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##### [**Table of Contents**](#toc)
***Equity securities, at fair value***

Our investments in equity securities consisted of mutual funds that primarily invest in high-grade debt securities and were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Equity securities, at fair value** | $**—** | $**116.7** |

---

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused TPA that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs | 19.0% - 20.0 | $11.0 | 19.0% - 20.0 | $12.7 |
|  Other | 9.4% - 15.0 | 7.2 | 9.4% | 3.0 |
|  **Equity method investments** |  | $**18.2** |  | $**15.7** |

---

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of December 31, 2024, we had unfunded commitments of $2.0 million to our equity method investees.

For the years ended December 31, 2024 and 2023, we received dividends from equity method investees of $1.7 million and $0.8 million, respectively. For the year ended December 31, 2022, we did not receive any dividends from equity method investees.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $26.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 19.1 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  | 0.3 |
|  **Other investments** | $**45.3** | $**25.5** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

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##### [**Table of Contents**](#toc)
For the year ended December 31, 2024, we recorded $19.8 million of income as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2023, we recorded $12.1 million of income, net of $0.2 million of impairments, as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2022, we recorded $3.5 million of income as a component of unrealized gains following observable prices related to these investments. We have recognized cumulative income as a component of unrealized gains of $35.4 million, net of $0.2 million of impairments, associated with investments accounted for under the measurement alternative from inception of the related investments.

***Net investment income***

Investment income and expenses were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Income from equity method investments | $2.3 | $2.9 | $1.0 |
|  Interest on fixed maturity investments | 14.8 | 2.9 | 1.2 |
|  Interest on cash and cash equivalents | 22.6 | 13.8 | 0.8 |
|  **Gross investment income** | **39.7** | **19.6** | **3.0** |
|  Investment expenses | (0.6) | (0.3) | (0.4) |
|  **Net investment income** | $**39.1** | $**19.3** | $**2.6** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Net realized gains on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.2 | $0.4 | $(1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on equity securities sold during the year | 0.5 | 0.1 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 1.2 |  |  |
|  **Net realized gains (losses) on investments** | $**1.9** | $**0.5** | $**(3.9)** |
|  **Net unrealized gains (losses) on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (losses) gains on equity securities held at the reporting date | (0.8) | 5.2 | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 8.0 | 3.0 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 11.8 | 9.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on other investments | 19.8 | 12.1 | 3.5 |
|  **Net unrealized gains on investments** | $**19.0** | $**17.3** | $**0.3** |
|  **Net realized and unrealized gains (losses) on investments** | $**20.9** | $**17.8** | $**(3.6)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

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##### [**Table of Contents**](#toc)
***Regulated deposits and restricted assets***

Certain companies in the Group are required to maintain assets on deposit with various regulatory authorities to support the Group's insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both December 31, 2024 and 2023, which are included in the "Fixed maturity securities available for sale, at fair value" in our consolidated balance sheets.

In addition, the Group has pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million as of December 31, 2024 in favor of certain ceding companies to collateralize obligations. There were no such pledged assets as of December 31, 2023.

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##### [**Table of Contents**](#toc)
***5. Fair value measurements***

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | **—** | **544.3** | **—** | **544.3** |
|  **Total assets measured at fair value** | $**—** | $**544.3** | $**—** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $30.6 | $— | $30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 32.1 |  | 32.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 2.6 |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 2.8 |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 8.0 |  | 8.0 |
|  **Total fixed maturity and short-term investments** | **—** | **94.5** | **—** | **94.5** |
|  Equity securities, at fair value | 116.7 |  |  | 116.7 |
|  **Total assets measured at fair value** | $**116.7** | $**94.5** | $**—** | $**211.2** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2024, 2023 and 2022.

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##### [**Table of Contents**](#toc)
***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $14.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 11.0 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  |  | 0.3 | 0.3 |
|  **Total** | $**—** | $**—** | $**25.5** | $**25.5** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>****:*** As further described in Note 14, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of December 31, 2024 and 2023. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of December 31, 2024 and 2023.

**6. Variable interest entities** 

***VIEs***

In the normal course of our business activities, we enter into relationships with various entities that are deemed to be VIEs. A VIE is an entity that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has equity investors that lack characteristics of a controlling financial interest (including the ability to
control activities of the entity, the obligation to absorb the entity's expected losses and the right to receive the entity's expected residual returns); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lacks sufficient equity to finance its own activities without additional subordinated financial support.

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##### [**Table of Contents**](#toc)
We consolidate a VIE when we determine that we are the primary beneficiary of that VIE. This analysis includes a review of the VIE's capital structure, related contractual relationships and terms, nature of the VIE's operations and purpose, nature of the VIE's interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.

We are the primary beneficiary if we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to
receive benefits from the VIE that could potentially be significant to the VIE.

***Mission***

Mission, formed in 2021, operates in the US (Mission Underwriting Holdings, LLC, or "Mission US") and in the EU (Mission Holdings Europe Ltd. or "Mission EU"). Each of Mission US and Mission EU operates, pursuant to local licenses as required by its jurisdiction of organization, to support experienced underwriters by providing insurance regulatory, technical infrastructure and product development expertise to them. Each Mission entity was funded principally with loans advanced by the Group in the form of subordinated debt and other working capital arrangements, although at the time of formation ACP Holdings LP ("ACP Holdings") provided the initial equity capital and until 2024 held all the equity of each of Mission US and Mission EU. Also at the time of formation of Mission US and Mission EU, ACP Holdings granted the Group an option to acquire each of Mission US and Mission EU.

On May 1, 2024, the Group closed on its acquisition of each of Mission US and Mission EU which the Group initiated by exercising its options. As described in more detail below, Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Group's financial statements, the exercise of the call option was accounted for as an equity transaction.

The consideration paid by the Group to Accelerant Holdings LP took the form of 6,938 common shares in Accelerant Holdings. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Group's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission within the Group's results of operations, holders of the Group's Class A and B convertible preference shares received an additional 875 shares and 525 shares, respectively, in each case without further consideration being paid. The total consideration had a fair value of $7.0 million.

The excess fair value of the consideration paid by Accelerant Holdings as compared to the carrying value of the acquired non-controlling interest in Mission is reflected as a reduction in additional paid-in capital of Accelerant Holdings of $39.3 million, with a corresponding increase of non-controlling interests of $39.9 million in the Group's consolidated statements of equity for the year ended December 31, 2024. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Group.

However, since the interests in Mission were acquired using shares issued by Accelerant Holdings, they are classified as Non-controlling interests: other interests in our consolidated balance sheets.

Prior to May 1, 2024, Mission was determined to be a VIE, as it lacked sufficient equity at risk and was primarily financed with the Group's subordinated debt. As a result of this determination, the Group assessed whether it was the primary beneficiary and, thus, would be required to consolidate Mission. The Group was exposed to a significant amount of income and losses of Mission and the Group had the substantive power to direct the activities that most significantly impacted Mission. On this basis, the Group had determined that it was the primary beneficiary of Mission and consolidated it.

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##### [**Table of Contents**](#toc)
The following table presents the total assets and total liabilities (after elimination of intercompany balances) associated with the Partnership's variable interest in Mission as reported in our consolidated balance sheets as of December 31, 2023.

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | $30.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 49.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 0.9 |
|  **Assets of consolidated VIEs** | $**107.5** |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | $4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 18.2 |
|  **Liabilities of consolidated VIEs** | $**22.3** |

---

**7. Revenue from contracts with customers** 

The following table presents our revenues from contracts with third parties by geographical market. All revenue from contracts with customers is generated by our Exchange Services and MGA Operations segments, specifically by owned MGAs that provide insurance products and services to third party insurers that is not subject to elimination in consolidation. The tables below also include the revenues from our legacy business referenced in Note 2.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $41.9 | $16.6 | $58.5 |
|  Loss experience adjustments |  | (9.6) | (9.6) |
|  Other revenue |  | 17.8 | 17.8 |
|  **Direct commission income** | $**41.9** | $**24.8** | $**66.7** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $18.6 | $10.8 | $29.4 |
|  Loss experience adjustments |  | (4.8) | (4.8) |
|  Other revenue |  | 13.0 | 13.0 |
|  **Direct commission income** | $**18.6** | $**19.0** | $**37.6** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $2.0 | $13.9 | $15.9 |
|  Loss experience adjustments |  | 5.9 | 5.9 |
|  Other revenue |  | 12.7 | 12.7 |
|  **Direct commission income** | $**2.0** | $**32.5** | $**34.5** |

---

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##### [**Table of Contents**](#toc)
**8. Reinsurance** 

The Group enters into reinsurance agreements to limit its exposure to large losses and to enable it to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

The Group uses extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage its exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align the Group's interests with those of its reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Written premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2640.0 | $1608.3 | $1200.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 266.3 | 89.5 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2651.7) | (1506.9) | (1013.8) |
|  **Net written premiums** | $**254.6** | $**190.9** | $**186.0** |
|  **Earned premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2103.7 | $1304.5 | $779.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 127.9 | 14.9 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2005.0) | (1214.3) | (637.4) |
|  **Net earned premiums** | $**226.6** | $**105.1** | $**141.2** |
|  **Loss and LAE:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $1136.1 | $669.6 | $433.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.0 | 7.6 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (1044.8) | (596.9) | (332.3) |
|  **Net loss and LAE** | $**167.3** | $**80.3** | $**99.5** |

---

***Reinsurance transactions***

*<u>Loss portfolio transfer</u>:* Effective December 2023, certain of the Group's insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). The reinsurance counterparty reinsures all of the Group's retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby the Group will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. At inception, the Group recorded a deposit asset of $130.3 million equal to the $136.5 million premium consideration paid, less the $6.2 million premium to be retained by the reinsurer (irrespective of the experience of the contract) included in "Other assets" within our consolidated balance sheets.

The overall premium is held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld are credited with interest at a fixed annual rate that inures to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

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For the year ended December 31, 2024, the Group reduced the deposit assets by $47.4 million attributed to actual recoveries. The deposit asset reported as of December 31, 2024, is comprised of expected recoveries of $82.9 million, net of accretion, calculated using the interest method.

*<u>Commutation</u>*: In December 2023, the Group completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

*<u>Endorsements of existing quota share agreements</u>*: In November 2023, the Group and certain of its reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | $281.4 | $162.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 82.9 | 130.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commutation consideration receivable |  | 81.3 |
|  **Total other reinsurance recoverables** | **364.3** | **374.5** |
|  **Reinsurance recoverables** | $**1433.8** | $**980.0** |

---

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, the Group has received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of December 31, 2024, 59% were with reinsurers with an A.M. Best rating of A- (excellent) or better. The Group requires reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables.

As of December 31, 2024 and 2023, all reinsurance recoverables with non-rated reinsurers were over collateralized and, accordingly, required no credit valuation allowance. The credit valuation allowance associated with reinsurance recoverables with reinsurers having an A.M. Best rating of A- or better was $0.4 million and $0.3 million as of December 31, 2024 and 2023, respectively.

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##### [**Table of Contents**](#toc)
**9. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by the Group:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $53.0 | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) | (35.0) |
|  Foreign currency translation | (0.4) | 0.7 |  |
|  **Balance as of December 31,** | $**60.7** | $**53.0** | $**26.6** |

---

The following table presents the amounts of ceding commissions deferred and amortized:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $120.4 | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (249.5) | (164.2) | (44.3) |
|  Foreign currency translation | 3.4 | (2.6) |  |
|  **Balance as of December 31,** | $**193.0** | $**120.4** | $**84.5** |

---

As disclosed in Note 2, the Group cedes a significant portion of its premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Certain of the Group's reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the years ended December 31, 2024, 2023 and 2022 included reductions of $15.5 million, $19.1 million and $29.0 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

**10. Income taxes** 

During 2024, the Partnership and its subsidiaries operated businesses in Bermuda, Belgium, the Cayman Islands, Canada, France, Greece, Italy, Ireland, Malta, Puerto Rico, Spain, Sweden, UK, and US. Under current law of the Cayman Islands and Bermuda, we are not subject to any corporate income taxes.

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The Partnership is registered in the Cayman Islands as an exempted limited partnership. Accelerant Holdings is incorporated, and is an exempted company, in the Cayman Islands. The US, UK and EU are the most significant regions contributing to the overall taxation of the Partnership for the years ended December 31, 2024, 2023 and 2022.

The components of income taxes attributable to operations by jurisdiction were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Income (loss) before income taxes:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $71.2 | $13.3 | $(52.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 45.9 | (17.0) | (20.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (85.6) | (40.2) | (12.9) |
|  **Income (loss) before income taxes** | $**31.5** | $**(43.9)** | $**(85.1)** |
|  **Current income tax expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $36.1 | $6.6 | $4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 13.1 | 13.2 | 12.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.8 | 0.1 |  |
|  **Total current income tax expense** | **50.0** | **19.9** | **17.1** |
|  **Deferred income tax (benefit) expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $(23.9) | $1.2 | $(5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | (16.6) | (0.9) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (0.4) |  |  |
|  **Total deferred income tax (benefit) expense** | **(40.9)** | **0.3** | **(5.8)** |
|  **Income tax expense** | $**9.1** | $**20.2** | $**11.3** |

---

Our expected income tax expense (benefit) has been computed as the sum of the income (loss) before income taxes in each jurisdiction, multiplied by the jurisdiction's applicable statutory tax rate. The applicable statutory tax rates by jurisdiction were as follows: Bermuda (0.0%), Belgium (25.0%), the Cayman Islands (0.0%), Canada (26.5%), France (25.0%), Greece (22.0%), Italy (27.9%), Ireland (12.5%), Malta (35.0%), Puerto Rico (4.0%), Spain (25.0%), Sweden (20.6%), UK (25.0%), and US (21.0%).

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Our actual income tax expense (benefit) differs from each jurisdiction's statutory tax rate applied to the applicable income (loss) before income taxes in each jurisdiction due to the tax effects of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| ***(in millions)*** | **Income<br>before**<br>**income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** |
|  Income tax expense computed at statutory tax rate applied to the subcomponents of income (loss) by jurisdiction | $31.5 | $24 | $(43.9) | $(0.1) | $(85.1) | $(16.1) |
|  Tax effects of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance |  | (9.7) |  | 16.4 |  | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision to return adjustment |  | (2.0) |  | (0.7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses |  | 1.9 |  | 2.2 |  | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income |  | (2.6) |  | (0.8) |  | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US state income taxes |  | 1.5 |  | 1.6 |  | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in entity tax status |  | (5.2) |  |  |  | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable gain on intercompany transfer |  | 1 |  | 2.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 0.2 |  | (0.7) |  | 0.2 |
|  **Total** | $**31.5** | $**9.1** | $**(43.9)** | $**20.2** | $**(85.1)** | $**11.3** |

---

The relationship of our income tax expense to its pre-tax income (loss) can be atypical because our taxable income has predominately been generated in the US, UK and Ireland, resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities"). Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

The composition of our effective tax rates among our tax-paying and non-tax paying entities that demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** | **2022** | **2022** | **2022** |
| ***(in millions)*** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.8) | $31.5 | $90.3 | $(134.2) | $(43.9) | $47.9 | $(133.0) | $(85.1) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **6.4%** | **—** | **28.9%** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.3)%** |

---

***Deferred taxes***

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our ability to realize deferred tax assets depends on our ability to generate sufficient taxable income of the same character, within the carryback and carryforward periods permitted within each tax jurisdiction. In assessing future taxable income, we considered all sources of taxable income available to realize our deferred assets, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carry back years and prudent and feasible tax-planning strategies.

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We concluded that a valuation allowance of $45.4 million is required as of December 31, 2024. For territories where no valuation allowance is required as of December 31, 2024, we are of the opinion that it is more-likely-than-not that sufficient taxable income will be earned for which the deferred tax assets can be utilized.

During the third quarter of 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group, as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. As noted in the rate reconciliation above, this benefit was offset by $4.9 million of additional valuation allowances, resulting in a net $9.7 million tax benefit recorded during 2024. The additional valuation allowances were primarily related to operating losses and net deferred tax assets in jurisdictions that we are unable to recognize benefits from due to a history of recurring losses.

If changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities, the valuation allowance may need to be adjusted in the future.

The net deferred tax asset comprises the tax effects of temporary differences related to the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Deferred tax assets:** |  |  |
|  Net operating loss | $32.9 | $29.8 |
|  Deferred ceding commission | 49.2 | 21.7 |
|  Unearned premiums | 2.6 | 2.5 |
|  Accrued compensation | 2.0 | 1.3 |
|  Intangible assets | 4.4 | 0.4 |
|  Outside basis difference in partnership investments | 7.4 |  |
|  Other | 4.3 | 3.5 |
|  Deferred tax assets before valuation allowance | 102.8 | 59.2 |
|  Valuation allowance | (45.4) | (46.5) |
|  **Deferred tax assets net of valuation allowance** | **57.4** | **12.7** |
|  **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (7.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (2.3) |
|  **Total deferred tax liabilities** | **(7.2)** | $**(2.3)** |
|  **Net deferred tax assets** | $**50.2** | $**10.4** |

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##### [**Table of Contents**](#toc)
The amount and timing of realizing the benefits of our net operating loss carryforwards depend on future taxable income and limitations imposed by tax laws. As of December 31, 2024, our net operating loss carryforwards were as follows:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2024** | **Deferred tax assets on<br>net operating loss** |
|  **Net operating loss carryforwards by jurisdiction:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Belgium <sup>(1)</sup> | $107.8 | $27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | 9.2 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Malta <sup>(1)</sup> | 4.2 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK | 7.7 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other | 2.4 | 0.6 |
|  **Total deferred tax asset on net operating losses** |  | $**32.9** |

---

<sup>(1)</sup> Jurisdictions where the net operating loss has a full valuation allowance.

We did not incur any interest and penalties related to uncertain tax positions for the years ended December 31, 2024, 2023 and 2022. We did not have any accruals for uncertain tax positions nor any unrecognized uncertain tax benefits as of December 31, 2024.

The Partnership and its subsidiaries file income tax returns in their respective jurisdictions. We are not currently under audit for income taxes in any jurisdiction. The statute of limitations remains open in various jurisdictions from 2019 and forward.

For the year ended December 31, 2024, we consider our earnings within each jurisdiction to be indefinitely reinvested, and as such, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. Should the subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, we may be subject to withholding taxes in certain jurisdictions. The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute.

Under the Organization for Economic Co-operation and Development (OECD) / G20 Inclusive Framework, 140 countries agreed to enact a two-pillar solution to address the digitalization of the economy. The OECD's Pillar Two Model Rules introduce global changes to the international tax framework. Large multinational businesses with greater than €750 million total revenue are required to pay a minimum effective tax rate under Pillar Two of 15% on income arising in each jurisdiction where they operate. The proposed rules took effect for tax years beginning on January 1, 2024 in many jurisdictions. We are subject to these rules given our gross earned premiums are more than €750 million and the minimum tax is treated as a period cost. The Pillar Two minimum tax expense for the current year ended December 31, 2024 was $0.7 million.

**11. Goodwill, other intangible assets and capitalized technology development costs** 

***Goodwill***

We have assigned goodwill to our reporting units for impairment testing purposes. As of December 31, 2024, we have two reporting units with goodwill - Owned Members within the MGA Operations segment and Underwriting (whereby the operating unit for impairment testing was at the operating segment level).

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A roll forward of goodwill by reportable segment as of and for the years ended December 31, 2024, 2023 and 2022 are as follows:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **Underwriting** | **MGA Operations** | **Total** |
|  **Balance as of January 1, 2022** | $**1.4** | $**11.2** | $**12.6** |
|  Acquisition of business <sup>(1)</sup> |  | 8.7 | 8.7 |
|  Measurement period adjustments | (0.9) |  | (0.9) |
|  Foreign currency translation | (0.2) | (1.9) | (2.1) |
|  **Balance as of December 31, 2022** | $**0.3** | $**18.0** | $**18.3** |
|  Acquisition of business <sup>(1)</sup> | 1.2 | 0.8 | 2.0 |
|  Foreign currency translation |  | 0.4 | 0.4 |
|  **Balance as of December 31, 2023** | $**1.5** | $**19.2** | $**20.7** |
|  Acquisition of business <sup>(1)</sup> |  | 10.8 | 10.8 |
|  Foreign currency translation | (0.1) | (0.5) | (0.6) |
|  **Balance as of December 31, 2024** | $**1.4** | $**29.5** | $**30.9** |

---

<sup>(1)</sup> Refer to Note 17 for additional information pertaining to business combinations and related goodwill determination.

We performed a qualitative assessment of its goodwill for impairment as of the years ended December 31, 2024, 2023 and 2022 and in each case we determined that it was more likely than not that the estimated fair value of the reporting units with goodwill exceed their respective carrying values.

***Other intangible assets***

Our other intangible assets, acquired in connection with its business combination activities, accumulated amortization and their carrying amounts were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $29.6 | $(8.9) | $20.7 |
|  Licenses and other | 13.0 | (0.6) | 12.4 |
|  **Total** | $**42.6** | $**(9.5)** | $**33.1** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $24.9 | $(6.4) | $18.5 |
|  Licenses and other | 12.7 | (0.4) | 12.3 |
|  **Total** | $**37.6** | $**(6.8)** | $**30.8** |

---

Included in the gross carrying amounts of Licenses and other was $11.0 million of indefinite-lived licenses as of December 31, 2024 and 2023. We performed a qualitative assessment for impairment and the useful lives of its indefinite and finite lived intangible assets, as applicable, and we determined there were no impairments or need to change the useful lives of the finite lived intangibles assets as of December 31, 2024 and 2023.

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##### [**Table of Contents**](#toc)
***Capitalized technology development costs***

Our capitalized technology development costs, accumulated amortization and their carrying amounts are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $117.1 | $(33.5) | $83.6 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $84.1 | $(15.0) | $69.1 |

---

There was no change in estimated useful lives of other intangible assets and capitalized technology development costs for the years ended December 31, 2024, 2023 and 2022. The weighted-average remaining useful life is 7.4 years for customer relationships and 3.7 years for capitalized technology development costs. For the year ended December 31, 2024, we recorded an impairment of $3.5 million of capitalized technology development costs, which is included in the "Depreciation and amortization" in our consolidated statements of operations. There was no impairment of other intangible assets and capitalized technology development costs for the year ended December 31, 2023. Depreciation and amortization presented in our consolidated statements of operations were $26.6 million, $14.5 million and $5.8 million for the years ended December 31, 2024, 2023 and 2022, respectively, the majority of which represents amortization expenses of other intangible assets and capitalized technology development costs.

As of December 31, 2024, estimated amortization expenses of other intangible assets and capitalized technology development costs to be recognized by the Partnership over the next five years are as follows:

---

| | |
|:---|:---|
|  | **Estimated<br>amortization<br>expenses** |
| **Years Ended December 31,** | ***(in millions)*** |
| 2025 | $26.8 |
| 2026 | 27.0 |
| 2027 | 25.1 |
| 2028 | 13.6 |
| 2029 | 6.4 |

---

**12. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $58.6 | $66.0 |
|  Net deferred tax assets (refer to Note 10) <sup>(2)</sup> | 51.6 | 10.4 |
|  Commission income receivable | 28.3 | 17.4 |
|  Funds withheld by reinsurers | 18.2 | 20.0 |
|  Deferred offering costs <sup>(3)</sup> | 16.0 | 12.4 |
|  Prepaid expenses | 11.8 | 4.2 |
|  Prepaid retrocession premium (refer to Note 8) | 5.3 | 6.2 |
|  Other | 29.3 | 17.5 |
|  **Total** | $**219.1** | $**154.1** |

---

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| <sup>(1</sup><sup>)</sup> | This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis.  |

---

<sup>(2)</sup> Total net deferred tax assets presented in Note 10 are $50.2 million. However, net deferred tax assets may not be offset with net deferred tax liabilities from different tax jurisdictions. As of December 31, 2024, one of our tax jurisdictions had $1.4 million of net deferred tax liabilities, which is included in "Accounts payable and other liabilities" in our consolidated balance sheets. All other jurisdictions had aggregate net deferred tax assets of $51.6 million. 

<sup>(3)</sup> As of the date of completion of these financial statements, the Group is preparing for its planned initial public offering. In the event that the Group postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

**13. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $772.5 | $415.4 | $182.0 |
|  Less: Reinsurance recoverables, beginning of year | 605.5 | 333.4 | 144.3 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **167.0** | **82.0** | **37.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquired reserves from business combinations |  | 6.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserves reassumed under commutation agreement <sup>(1)</sup> |  | 74.7 |  |
|  Incurred losses and LAE related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 152.2 | 75.4 | 94.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 15.1 | 4.9 | 4.8 |
|  **Total incurred losses and LAE** | **167.3** | **80.3** | **99.5** |
|  Paid losses and LAE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (28.8) | (32.2) | (32.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (76.8) | (49.0) | (20.6) |
|  **Total paid losses and LAE** | **(105.6)** | **(81.2)** | **(53.3)** |
|  Foreign exchange adjustments | (3.8) | 5.1 | (1.9) |
|  **Net reserve for unpaid losses and LAE, end of year** | **224.9** | **167.0** | **82.0** |
|  Reinsurance recoverables on unpaid losses and LAE, end of year | 1069.5 | 605.5 | 333.4 |
|  **Gross reserve for unpaid losses and LAE, end of year** | $**1294.4** | $**772.5** | $**415.4** |

---

<sup>(1)</sup> Amount is presented net of a $4.1 million settlement of net receivables from the counterparty upon commutation. 

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

The increase in incurred losses and LAE ("adverse development") attributable to prior accident years of $15.1 million for the year ended December 31, 2024 primarily related to the EU and UK general liability and

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##### [**Table of Contents**](#toc)
property portfolio for Members that we have either discontinued or subject to significant responsive underwriting actions.

Adverse development attributable to prior accident years of $4.9 million for the year ended December 31, 2023 was primarily driven by $2.8 million of adverse development on certain UK legacy discontinued business, including from a previous acquisition, in addition to $2.1 million related to US commercial auto reserves.

Adverse development attributable to prior accident years of $4.8 million incurred during the year ended December 31, 2022 primarily related to adverse development associated with one large MGA with UK commercial property and liability exposures. Such losses do not include the impacts of negative sliding scale commission adjustments resulting from increased loss estimates that we recognize as a component of ceding commission income. For further information, refer to Note 9.

**Lines of business** 

Due to the nature of business written and the distribution channels used by the Group, (i.e., specialist and tailor-made products sold via MGAs), we perform day-to-day monitoring and oversight of the performance at the individual MGA level, with splits into lines of business or products where appropriate. This granular and detailed analysis and monitoring is designed to provide appropriate oversight over the delegated business and timely detection of any trends. The Group analyzes the performance within three main lines of business, namely Property, Liability and Other.

Property losses are generally reported, settled and paid within a short period of time from the date of loss. However, property can be impacted by catastrophe losses which can be more complex than non-catastrophe property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments, potentially extending the period it takes to settle and pay claims.

Our Liability insurance products generally cover exposures where most claims are reported without a significant time lag. However, since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined.

Our Other category primarily encompasses motor, marine and surety business. We perform this aggregation solely for reporting purposes considering the materiality of these sub-segments.

**Foreign currency** 

We translate the loss development for operations outside of the US for all accident years using the constant currency exchange rates as of December 31, 2024. Although this approach requires adjusting all prior accident year information for use in the tables, the changes in exchange rates do not impact incurred and paid loss development trends.

The following is information about incurred and paid losses development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities included within the net incurred loss amounts.

**Incurred loss and allocated loss adjustment expense ("ALAE"), net of reinsurance** 

The following tables represent our incurred loss and ALAE, net of reinsurance, less cumulative paid claims and ALAE by business line as of December 31, 2024, net of reinsurance, as well as cumulative claims frequency and the total IBNR liabilities plus expected development on reported claims included within the net incurred claims amount. We have adjusted these tables for accident years 2019 through 2022 to present the retrospective effects of the commutation reinsurance transaction described in Note 8.

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##### [**Table of Contents**](#toc)
**Property** 

***(in millions, except for number of claims)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2019 | $1.1 | $1.3 | $1.3 | $1.2 | $1.4 | $1.4 | $— | 3529 |
| 2020 |  | 17.7 | 19.0 | 17.5 | 23.2 | 22.7 |  | 12319 |
| 2021 |  |  | 10.9 | 14.6 | 23.7 | 23.4 |  | 12906 |
| 2022 |  |  |  | 59.0 | 77.8 | 85.6 | 0.1 | 17776 |
| 2023 |  |  |  |  | 45.7 | 41.3 | 1.3 | 16572 |
| 2024 |  |  |  |  |  | 71.1 | 34.8 | 15662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**245.5** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2019 | $— | $0.3 | $0.3 | $0.5 | $0.8 | $1.4 |
| 2020 |  | 1.7 | 11.7 | 15.4 | 18.8 | 22.5 |
| 2021 |  |  | 1.7 | 13.3 | 17.6 | 22.9 |
| 2022 |  |  |  | 28.3 | 47.9 | 83.0 |
| 2023 |  |  |  |  | 29.2 | 36.8 |
| 2024 |  |  |  |  |  | 17.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**184.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  |  | $**61.3** |

---

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##### [**Table of Contents**](#toc)
**Liability** 

***(in millions, except for number of claims)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2019 | $0.4 | $0.4 | $0.4 | $0.4 | $1.3 | $1.5 | $— | 2001 |
| 2020 |  | 6.4 | 7.3 | 7.1 | 9.8 | 12.7 | 0.6 | 2522 |
| 2021 |  |  | 9.5 | 10.8 | 15.5 | 19.4 | 2.0 | 5061 |
| 2022 |  |  |  | 29.8 | 46.5 | 51.2 | 12.7 | 8142 |
| 2023 |  |  |  |  | 25.0 | 22.4 | 9.4 | 9339 |
| 2024 |  |  |  |  |  | 47.2 | 28.8 | 8913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**154.4** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2019 | $— | $0.1 | $0.1 | $0.2 | $1.2 | $1.2 |
| 2020 |  | 0.5 | 4.2 | 5.4 | 7.4 | 7.6 |
| 2021 |  |  | 0.6 | 1.9 | 4.0 | 5.4 |
| 2022 |  |  |  | 2.6 | 10.7 | 11.3 |
| 2023 |  |  |  |  | 1.7 | 3.4 |
| 2024 |  |  |  |  |  | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**32.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  |  | $**121.5** |

---

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##### [**Table of Contents**](#toc)
**Other** 

***(in millions, except for number of claims)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| ***Accident year*** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2020 | $0.2 | $0.2 | $0.2 | $0.9 | $0.8 | $— | 4306 |
| 2021 |  | 7.0 | 9.4 | 18.3 | 18.5 | 1.3 | 9276 |
| 2022 |  |  | 5.8 | 21.9 | 21.0 | 2.2 | 20383 |
| 2023 |  |  |  | 9.2 | 9.9 | 2.8 | 30937 |
| 2024 |  |  |  |  | 31.9 | 16.4 | 33774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  | $**82.1** |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2020 | $— | $0.1 | $0.1 | $0.4 | $0.8 |
| 2021 |  | 2.9 | 5.6 | 11.1 | 15.7 |
| 2022 |  |  | 2.1 | 4.3 | 16.4 |
|  |  |  |  | 1.4 | 4.9 |
|  |  |  |  |  | **7.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  | $**44.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  | $**37.2** |

---

The reconciliation of our net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2024** |
|  **Net outstanding liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | $61.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 37.2 |
|  **Liabilities for unpaid losses and ALAE, net of reinsurance** | **220.0** |
|  **Reinsurance recoverables on unpaid claims** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | 295.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 592.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 181.4 |
|  **Total reinsurance recoverables on unpaid losses and LAE** | **1069.5** |
|  **Unallocated LAE** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 3.0 |
|  **Total unallocated LAE** | **4.9** |
|  **Total unpaid losses and LAE** | $**1294.4** |

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##### [**Table of Contents**](#toc)
**Claims duration** 

The following table presents the historical average annual percentage payout, net of reinsurance on an accident year basis at the same level of disaggregation as presented in the claims development tables above. Given we established operations in 2019, the typical full payout pattern to 100% is not yet available.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** |
|  Property | 15% | 20% | 12% | 12% | 10% | 30% |
|  Liability | 6% | 17% | 7% | 12% | 45% | 3% |
|  Other | 8% | 10% | 18% | 21% | 24% |  |

---

<sup>(1)</sup> Average annual percentage payout is calculated using a paid loss and ALAE development pattern based on an actuarial analysis of the paid loss and ALAE movements by accident year for each disaggregation category. Our average annual percentage payouts shown have been scaled to align with historical expected total payment development after 6 years. 

**14. Debt** 

The Group had the following senior unsecured debt outstanding as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Senior unsecured debt | $125.0 | $123.3 |
|  Less: unamortized debt issuance costs | (3.6) | (3.0) |
|  **Senior unsecured debt** | $**121.4** | $**120.3** |

---

The following table presents estimated future repayments of long-term debt as of December 31, 2024, excluding the debt issuance costs which will be amortized over the remaining term:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| ***(in millions)*** | **Total** | **2025** | **2026** | **2027** | **2028** | **2029** |
|  Senior unsecured debt | $125.0 | $0.8 | $3.1 | $5.9 | $5.7 | $109.5 |

---

During the third quarter of 2024, the Group amended its syndicated loan agreement related to its senior unsecured debt facility including Euro and US dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the amended credit agreement, the Group refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single US dollar denominated facility. In addition, the credit agreement was amended to add a $50 million revolving credit facility (all of which was unutilized and available as of December 31, 2024).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows the Group to withdraw predefined amounts of the approved total US Dollar aggregate principal amount. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the

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applicable interest rate has been reset. The interest rate is subject to a sliding scale based on the Group's consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the years ended December 31, 2024, 2023 and 2022 was $12.1 million, $10.9 million and $4.2 million, respectively.

Subject to conditions of optional prepayment, the Group may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts prepaid may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of December 31, 2024, the Group was in compliance with all such covenants.

**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Premium tax payables | $53.7 | $36.0 |
|  Deposit liabilities <sup>(1)</sup> | 43.9 |  |
|  Commission refund liabilities | 38.8 | 29.8 |
|  Trade payables | 13.8 | 9.6 |
|  Accrued expenses and other | 48.6 | 56.6 |
|  **Total** | $**198.8** | $**132.0** |

---

<sup>(1)</sup> During the third quarter of 2024, the Group assumed loss and loss adjustment expense reserves in a novation transaction with an unaffiliated insurer who additionally provided coverage for adverse development on the novated loss reserves. We accounted for the arrangement using deposit accounting because the contract did not transfer significant insurance risk. 

**16. Equity** 

**Partnership equity and interests structure** 

Financial interests (investments) in the Partnership are held by the Limited Partners through different classes of partnership interests (referenced as ordinary shares herein) with a par value issued to the security holder at the time of the capital contribution (or grant date in the case of incentive awards). Each class of shares conveys specific rights to the security holder aligned to the holders' relationship to the Partnership. Limited Partners are comprised of Altamont Capital Partners, various co-investors and managers (employees) of the Partnership group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A shares (A1 and A2) were issued for consideration equal to capital contributions made and are held by
the initial Limited Partner (Class A1 shares) (initial and subsequent issuances) and the co-investors (Class A2 shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class D shares were issued for specific capital raises to support the Partnership's and its subsidiary
companies' periodic capital needs.

The sole General Partner (Accelerant Holdings GP) holds a voting interest only and does not hold any ordinary shares.

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AHLP has also issued various profit interests awards from 2019 to 2022, consisting of Class A3, Class B and Class C1, C2, C3 and C4 awards to certain officers and employees within the consolidated group of companies in the form of partnership shares and incentive units. Such awards are not considered equity of the Partnership.

**Distributions** 

AHLP may make discretionary interim distributions of income or final liquidation distributions of equity of the Partnership to the Limited Partners or the holders of the profit interests awards in accordance with a defined payment structure. Specifically, the distributions may occur whereby each security holder receives a pro rata portion of their respective share class pool to the extent the applicable share class payment threshold has been met. There were no distributions paid during the years ended December 31, 2024, 2023 and 2022.

**Partners' redeemable preference shares** 

<u>Class</u> <u>D:</u> The Partnership has issued and outstanding 100 Class D limited partnership interests at December 31, 2024 and 2023 with a value of $301,248 per limited partnership interest. The Class D limited partnership interests are classified as preference shares due to the rights attaching to them in liquidation and distributions where they are preferred over other limited partnership interests. The Class D interests received a fixed distribution at an annual rate of 14% from their original issuance date through May 2022, and 13% thereafter, compounding quarterly, which interest rates correspond to the liquidation preference. Any unpaid distributions accrue until redemption, which may be triggered in the discretion of the holder of the Class D interests upon the repayment, or default, of the debt that was used to fund the purchase of the Class D limited partnership interests. The underlying debt has a maturity date in May 2027. Accrual of the liquidation preference of the Class D interests will continue for the same period that such debt is outstanding. The consolidated financial statements reflect the ongoing adjustment of the Class D limited partnership interests in order to reflect the liquidation preference (maximum redemption value) as of each reporting date, with a corresponding offset to the Partnership's accumulated deficit.

**Partners' common shares** 

<u>Class</u> <u>A1:</u> There are 8,491,134,079 Class A1 common shares issued and outstanding at December 31, 2024 and 2023 with a par value of $0.01 per share.

<u>Class</u> <u>A2:</u> There are 693,970,910 Class A2 common shares issued and outstanding at December 31, 2024 and 2023 with a par value of $0.02 per share.

The common shares are all held by limited partners as either the primary or co-investors and confer upon its holders the right to participate and vote in accordance with the limited partnership agreement and the right to participate in a share of any distributions (as described above) or dividends.

**Non-controlling interests** 

**Convertible preference shares of consolidated subsidiary** 

<u>Class</u> <u>C preference share issuance in 2024</u>: In 2024, Accelerant Holdings issued 53,308 Class C convertible preference shares to third-party investors for $100.5 million of gross proceeds, 10,874 Class C convertible preference shares to Altamont Capital Partners for $20.5 million of gross proceeds and 2,229 Class C convertible preference shares to certain executives of the Partnership's subsidiary companies for $4.2 million gross proceeds. There was a total of 66,411 Class C preference shares issued and total net proceeds of $114.5 million, after giving effect to $10.7 million in issuance costs.

<u>Class</u> <u>A preference share and Class</u> <u>B preference share issuance in 2024</u>: As referenced in Note 6, there were 875 Class A preference shares and 525 Class B preference in connection with Accelerant Holdings' acquisition of the equity interests in Mission.

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<u>Class</u> <u>B preference share issuance in 2023</u>: In February 2023, Accelerant Holdings issued 681 Class B convertible preference shares to third-party investors for $0.7 million gross proceeds and 223 Class B convertible preference shares to certain executives of the Partnership's subsidiary companies for $0.2 million gross proceeds. The total capital raised in 2023 was $0.7 million, net of $0.2 million in issuance costs.

<u>Class</u> <u>B preference share issuance in 2022</u>: In 2022, Accelerant Holdings issued 89,155 Class B convertible preference shares to third-party investors for $90.0 million of gross proceeds as well as 59,648 Class B convertible preference shares to Altamont Capital Partners for $60.2 million of gross proceeds.

<u>Class</u> <u>A preference share issuance in 2022:</u> In 2022, Accelerant Holdings issued 36,000 Class A convertible preference shares to third-party investors for $36.0 million in gross proceeds as well as 27,500 Class A convertible preference shares to Altamont Capital Partners for $27.5 million in gross proceeds. Accelerant Holdings also issued 2,500 Class A convertible preference shares to a related party in settlement of an outstanding loan balance of $2.5 million. In addition, in 2022, 866 Class A convertible preference shares were issued to certain executives of the Partnership's subsidiary companies for $0.9 million gross proceeds.

The total capital raised in 2022 was $207.3 million, net of $9.8 million in issuance costs. Total cash proceeds from the 2022 offerings were $204.8 million (representing the $207.3 million total capital less the $2.5 million non-cash settlement of the outstanding loan balance).

The Class A and Class B preference shares are convertible to common shares upon an initial public offering of Accelerant Holdings, as well as in the case of other defined liquidation events. In the case of such an initial public offering or a liquidation event, all other equity holders of Accelerant Holdings will also participate and receive the same form of consideration. The Class A and Class B preference shares are subject to an accreted liquidation preference of 8% and 16%, respectively. The holders of the Class A and Class B preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class A and Class B preference shares have not appreciated to the sum of the initial investment and the accreted liquidation preference. In such circumstance, Accelerant Holdings may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

The Class C preference shares are convertible to common shares subject to the occurrence of an initial public offering or other defined liquidation event. The Class C preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 58,331 detachable warrants (42,902 warrants with an exercise price approximating 75% of the independently determined fair value of Accelerant Holdings as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 15,429 warrants with an exercise price approximating 150% of the Issuance Date Valuation.

If a holder of Class C preference shares elects to convert Class C preference shares to common shares, the holder will receive Class A or Class B common shares, as applicable, equivalent to the same number of the Class C preference shares subject to conversion. If a holder of the Class C preference shares elects, prior to the first anniversary of the Class C Issuance Date, to redeem such holder's shares for cash, the holder will receive 1.4 times such holder's initial investment; and if such an election is made following the first anniversary of the Class C Issuance Date, but prior to the second anniversary thereof, the holder will receive 1.5 times such holder's initial investment. After the second anniversary of the Class C Issuance Date, the value of the redemption right will change in accordance with the accreted liquidation preference rates as defined in the following paragraph.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed

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17.0%). The holders of the Class C preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, Accelerant Holdings may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

**Other interests** 

For the years ended December 31, 2024, 2023 and 2022, other non-controlling interests consist of the non-controlling interest in other companies with a total attributed net loss to such non-controlling interests of $4.3 million, $15.3 million and $3.9 million, respectively.

**17. Business acquisitions** 

During the years ended December 31, 2024, 2023 and 2022, the Group made several acquisitions that were individually not material. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the 2024 acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. The Group may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). The Group recorded goodwill from these acquisitions, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of the acquisitions after their respective closing dates. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of AHLP. The acquisition-related costs incurred for the acquisitions which occurred during the years ended December 31, 2024, 2023 and 2022 were $0.3 million, $1.2 million and $0.7 million, respectively.

**2024 Activity:** 

The following represents a summary of the acquisitions that occurred during 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In May 2024, the Group closed on its acquisition of each of Mission US and Mission EU which the Group initiated
by exercising its options. Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Group's financial statements, the exercise of the call
option was accounted for as an equity transaction. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Group. For further information on the Mission acquisition, refer to Note 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2024, the Group's subsidiary Ayax Acquisition Co. Ltd acquired an additional 32% of the
outstanding share capital of Ayax Specialty, S.L ("Ayax"), a Spanish MGA specializing in the insurance of surety risks, in exchange for $17.5 million of total consideration (consisting of cash of $5.6 million, the Group's
existing equity interest of $3.3 million and the non-controlling interests of $8.6 million). The additional 32% interest increased the Group's ownership in Ayax from 19% to 51%. Previously, the
investment in Ayax was accounted for as an equity method investment. Following the completion of the step acquisition, in which the Group gained majority ownership and control of Ayax, it was consolidated. The Group's previously held equity
interest was remeasured to fair value at the step acquisition date. Accordingly, we recorded a revaluation gain of $2.4 million within "Net realized gains (losses) on investments" in our consolidated statements of operations.

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The following table provides our preliminary purchase accounting financial information for the Ayax acquisition:

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| | |
|:---|:---|
| ***(in millions)*** | **2024** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $5.1 |
|  Other identifiable intangible assets | 5.3 |
|  Premiums receivable | 1.1 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **12.0** |
|  **Liabilities assumed:** |  |
|  Insurance balances payable | 3.0 |
|  Accounts payable and other liabilities | 2.3 |
|  **Total liabilities assumed** | **5.3** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.7** |
|  Goodwill | 10.8 |
|  **Total acquisition consideration** | $**17.5** |

---

<sup>(1)</sup> Total net cash paid for the interest in Ayax was $0.5 million, net of cash acquired (consisting of the $5.6 million payment net of the $5.1 million cash acquired). 

**2023 Activity:** 

The following represents a summary of the acquisitions that occurred during *2023*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Markets Underwriting Limited ("CMU"): In June 2023, the Group's consolidated
subsidiary Nationwide Broker Services Limited acquired a 70% ownership stake in CMU for consideration of $0.9 million. CMU is a UK-based MGA and cover holder at Lloyd's (representing a company
authorized to enter into insurance contracts on behalf of a Lloyd's syndicate in accordance with the terms of a binding authority contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omega Insurance Holdings, Inc ("Omega"): In October 2023, the Group's consolidated
subsidiary Omega Acquisition Co Ltd. purchased all the common shares of Omega Insurance Holdings Inc. (subsequently renamed Accelerant Canada Holdings, Inc.) for consideration of $9.5 million. Accelerant Canada Holdings, Inc. owns all the
common shares of Omega General Insurance Company (subsequently renamed Accelerant Insurance Company of Canada) and Focus Group Inc (subsequently renamed Accelerant Canada Services). Our acquisition of Omega will support Accelerant's continued
international expansion, specifically into the Canadian market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• American Eagle Underwriting Managers, LLC ("American Eagle"): In November 2023, the Group's
consolidated subsidiary, Mission UH Holdings LLC acquired all the ownership interests of American Eagle for consideration of $2.4 million. American Eagle is a US-based MGA and cover holder at
Lloyd's.

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The following table provides certain financial information for these acquisitions:

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| | |
|:---|:---|
| ***(in millions)*** | **2023** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $15.2 |
|  Investments | 6.8 |
|  Premiums receivable | 12.1 |
|  Ceded unearned premiums | 12.2 |
|  Reinsurance recoverables <sup>(1)</sup> | 11.4 |
|  Other identifiable intangible assets | 1.6 |
|  Other assets | 1 |
|  **Total assets acquired** | **60.3** |
|  **Liabilities assumed:** |  |
|  Unpaid losses and loss adjustment expenses | 16.8 |
|  Unearned premiums | 13.2 |
|  Insurance balances payable | 13.5 |
|  Accounts payable and other liabilities | 6 |
|  **Total liabilities assumed** | **49.5** |
|  **Total identifiable net assets acquired <sup>(2)</sup>** | **10.8** |
|  Goodwill | 2 |
|  **Total acquisition consideration** | $**12.8** |

---

<sup>(1)</sup> Reinsurance recoverables acquired include $10.7 million of reinsurance recoverables on unpaid losses and LAE and $0.7 million of reinsurance recoverables on paid losses and LAE. 

<sup>(2)</sup> The acquisitions of the entities resulted in net cash and cash equivalents received of $2.8 million, representing the $12.4 million cash payment for the acquisition compared to net of cash and cash equivalents acquired of $15.2 million. Total acquisition consideration consisted of the cash payment and $0.4 million of non-controlling interests. 

**2022 Activity:** 

The following summarizes the acquisitions that occurred during 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2022, the Group acquired 77.6% of the share capital of United Brokers International Limited
("UBI") for consideration of $10.3 million. The consideration transferred consisted of $4.4 million of cash, $4.6 million of deferred consideration and $1.3 million of non-controlling interest. UBI is a UK and Ireland based MGA that specializes in the insurance of construction risks in France.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2022, the Group acquired 78.1% of the share capital of *Servicios Profesionales de Suscripcion de Riesgos Iberia S.L.* ("SSR Iberia") for consideration of $4.7 million. The consideration transferred consisted of $3.7 million of cash and $1.0 million of non-controlling interest.
SSR Iberia is a Spain based MGA that specializes in the insurance of construction and real estate development risks.

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The following table provides certain financial information for these acquisitions:

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| | |
|:---|:---|
| ***(in millions)*** | **2022** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $6.4 |
|  Other identifiable intangible assets | 4.9 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **11.8** |
|  **Liabilities assumed:** |  |
|  Commissions payable | 0.3 |
|  Accounts payable and other liabilities | 5.2 |
|  **Total liabilities assumed** | **5.5** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.3** |
|  Goodwill | 8.7 |
|  **Total acquisition consideration** | $**15.0** |

---

<sup>(1)</sup> Total cash paid for acquisitions, net of cash acquired, was $1.7 million representing the $8.1 million cash payment for the acquisition compared to cash and cash equivalents acquired of $6.4 million. Total acquisition consideration consisted of the cash payment, $4.6 million of deferred consideration and $2.3 million of non-controlling interests. 

**18. Related party transactions** 

We have loans receivable from certain of the directors of the Partnership. At December 31, 2024 and 2023 the value of the loans receivable were $3.7 million and $2.8 million, respectively. Interest will accrue on the outstanding principal balance at a floating per annum rate equal to the greater of (i) the Prime Rate minus one percent (1.0%) and (ii) two and one quarter of one percent (2.25%). Interest will be due and payable on the repayment date. There is no fixed repayment date.

**19. Commitments and contingencies** 

**Litigation** 

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

**Unfunded investment commitments** 

As of December 31, 2024, we had unfunded commitments of $2.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**20. Employee benefits and profit interests plans** 

**Employee benefit plans** 

The Group operates a defined contribution post-employment plan. A defined contribution plan is a benefit plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the entity, typically taking the form of a fund, does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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We pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The contributions are recognized as employee benefit expenses when they are due. Expenses related to the plans were $4.6 million, $2.8 million and $1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are included in the "General and administrative expenses" within our consolidated statements of operations.

**Cash bonus plan** 

The Group has a deferred compensation plan that entitles every employee, subject to certain qualifying criteria, to a cash bonus equal to a multiple of such employee's salary less applicable taxes upon the occurrence of a qualifying liquidity event. The amount of the cash bonus for an eligible employee will be dependent upon the valuation of the Group if the qualifying liquidity event occurs and is subject to adjustment if an employee's length of service is less than two years. All payments will be determined at the discretion of the Group Board of Directors. Any future liability recognized for this plan will be recognized at fair value at the date of initial recognition and then subsequently updated at each reporting period. Such amount will be material to our operating results in any future period.

There was no compensation cost for the cash bonus plan recognized by the Group during the years ended December 31, 2024, 2023 and 2022 as the cash bonus payments were not probable.

**Profit interests awards** 

AHLP and Mission have issued profits interest awards to certain officers and employees within our consolidated group of companies in the form of partnership shares and incentive units. As referenced in Note 16, the Partnership's profits interest awards consist of Class A3, Class B and Class C1, C2, C3 and C4 awards.

The awards require achievement of certain return thresholds and continuous service for the officers and employees to receive distributions. The awards do not represent an equity interest for accounting purposes in the Partnership or its subsidiaries. These units are accounted for as deferred compensation and compensation cost is measured according to the value of expected benefits as of each reporting date. Profits interest awards are subject to vesting over a continuous service period and forfeiture upon a recipient voluntarily resigning, in the normal course of business, regardless of such employee's length of service or vested units. Since the awards are subject to forfeiture upon termination for no value, the awards represent a deferred compensation liability rather than equity classified stock compensation. Compensation cost will be recorded to the extent payment is reasonably estimable and probable, as well as considering service requirements. Any future liability recognized for these awards will be recognized at the fair value of the awards at the date of initial recognition and then subsequently updated at each reporting period. Such amounts will be material to the Partnership's operating results in any future period.

The Group recognized $7.0 million of compensation expenses during the year ended December 31, 2024 attributable to the Mission profits interest awards as certain return thresholds and continuous services requirements were met for specific components of the business. There were no Mission profits interest awards compensation expenses for the years ended December 31, 2023 and 2022.

We did not recognize any compensation cost for the Accelerant Holdings LP profits interest awards during the years ended December 31, 2024, 2023 and 2022 as the distributions were not probable.

**21. Share-based compensation** 

**Share options granted to employees** 

During 2024, the Group granted 77,702 options to certain of its employees (which followed the grants during 2023 of 103,756 stock option awards, net of forfeitures) under its employee share incentive plan. The contractual

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term of the option awards is ten years from the grant date. The vesting terms of the option awards varied based on the date of the respective employee's date of service commencement such that a portion of the awards was typically vested as of the grant date. The vesting periods per each of the awards varied from two to four years (with either quarterly or annual partial vesting periods over those two to four year full vesting periods).

The fair value of each share option award granted was estimated on the date of grant using the following option pricing model assumptions:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Weighted average expected term (years) | 1.2 - 10.0 | 0.5 - 10.0 |
|  Risk-free interest rate | 3.82% - 4.87 | 4.14% - 5.40 |
|  Expected volatility | 31% - 38 | 32% - 37 |
|  Expected dividend yield | 0% | 0% |

---

Based on application of the Hull-White valuation method (widely used in the determination of option fair value), we estimate the expected term of the share options granted, assuming that employees exercise their options, on average, when the stock price over strike price reaches a threshold of 2.20. The risk-free interest rate is based on observed interest rates appropriate for the term of the Group's stock options. Expected volatility is based on companies at a comparable stage, as well as companies in the same or similar industry. The dividend yield assumption is based on the Group's historical and expected future dividend payouts and may be subject to change in the future.

The following table summarizes the activity related to share option awards for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of**<br>**Options** | **Weighted-**<br>**Average**<br>**Exercise Price** | **Weighted-**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Term (Years)** | **Aggregate**<br>**Intrinsic**<br>**Value** | **Aggregate**<br>**Fair Value** |
|  Outstanding as of December 31, 2023 | 103756 | $1615.12 | 8.7 | $– $| 140.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 77702 | 1615.12 | 9.5 | – | 361.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercise |  |  |  | – |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled |  |  |  | – |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1982) | 1615.12 |  | – |  |
|  **Outstanding as of December 31, 2024** | **179476** | $**1615.12** | **9.1** | $– **$** | **237.45** |
|  Options exercisable as of December 31, 2024 | 66597 | $1615.12 | 8.8 | $– $| 163.96 |
|  Options unvested as of December 31, 2024 | 112880 | $1615.12 | 9.2 | $– $| 278.35 |

---

For the years ended December 31, 2024 and 2023, share-based compensation expense from share option awards granted was $8.4 million and $4.8 million, respectively, which is included in "Other expenses" in our consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of December 31, 2024 and 2023 was $29.6 million and $9.6 million, respectively. The weighted average remaining requisite service period as of December 31, 2024 is 1.6 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**22. Dividend restrictions and statutory financial information** 

Subject to the Cayman Islands Exempted Limited Partnership Act (As Revised), the Second Amended and Restated Exempted Limited Partnership Agreement of the Partnership and the Amended and Restated Securityholders' Deed (the "Securityholders' Deed") between the General Partner and each of the Limited Partners, the board of directors of the General Partner may resolve to make distributions to the Limited Partners and authorize payment of the distributions out of the funds of the Partnership lawfully available.

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The Securityholders' Deed establishes mechanisms and the order of priority for the payment of distributions but, generally, distributions shall be paid pro rata among the holders of each class of interest.

Our subsidiaries are subject to certain regulatory restrictions on the distribution of capital and payment of dividends in the jurisdictions in which they operate, as described below. The restrictions are generally based on net income or levels of capital and surplus as determined in accordance with the relevant statutory accounting principles. Failure of these subsidiaries to comply with their applicable regulatory requirements could result in restrictions on any distributions of capital or retained earnings or stricter regulatory oversight of the subsidiaries.

Our ability to make distributions may also be limited by repayment obligations and financial covenants in our outstanding loan facility agreements. During the years ended December 31, 2024, 2023 and 2022, no distributions were declared or paid by AHLP to the Limited Partners. Certain of our subsidiaries paid dividends of $3.5 million, $2.9 million and $1.8 million to non-controlling interests during the years ended December 31, 2024, 2023 and 2022, respectively.

**Subsidiary statutory financial information and dividend restrictions** 

Our (re)insurance subsidiaries prepare their statutory financial statements in accordance with statutory accounting practices prescribed or permitted by local regulators. Statutory and local accounting differs from US GAAP, including in the treatment of investments, acquisition costs and deferred income taxes, amongst other items.

The statutory capital and surplus amounts as of December 31, 2024 and 2023 and statutory net income (loss) amounts for the years ended December 31, 2024, 2023 and 2022 for our insurance companies and intermediaries based in the EU, UK, US and Canada and reinsurance companies based in Bermuda and the Cayman Islands are summarized in the table below, which includes information relating to acquisitions from the year of acquisition:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | | | |
|  | **Required** | **Required** | **Actual** | **Actual** | **Statutory Income (Loss)** | **Statutory Income (Loss)** | **Statutory Income (Loss)** |
| ***(in millions)*** | **2024** | **2023** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2022** |
|  EU - Belgium | $43.8 | $56.6 | $103.8 | $99.8 | $3.5 | $(52.9) | $(45.1) |
|  EU - Ireland | 7 | 6.5 | 62.3 | 53 | 54.9 | 46.4 | 44.2 |
|  US | 124.9 | 86.3 | 166.7 | 100.7 | 12.1 | (9.1) | (15.7) |
|  UK | 43.8 | 13 | 69.6 | 12.9 | (4.8) | (3.2) | (3.2) |
|  Canada | 5.5 | 5.7 | 13.8 | 12.9 | 1.8 | (0.8) |  |
|  Cayman Islands | 5.5 | 7.7 | 78.5 | 91 | (7.8) | (3.3) | (24.9) |
|  Bermuda <sup>(3)</sup> | 1 | 1 | 3.1 | 4.7 | (1.3) |  | (4.0) |

---

<sup>(1)</sup> The 2024 amounts reflect our best estimate of the statutory capital and surplus and net income as of the date of completion of these consolidated financial statements. 

<sup>(2)</sup> The amounts have been revised to reflect the final statutory capital and surplus as well as statutory net loss for 2023 as reported in the statutory financial statements. We do not view the differences from previously disclosed amounts to be qualitatively or quantitatively material to the consolidated financial statements. However, the revised amounts are being provided for the purposes of comparability with the amounts presented as of and for the year ended December 31, 2024. 

<sup>(3)</sup> Accelerant Re Ltd had not written any reinsurance business and was not making use of its license with the Bermuda Monetary Authority ("BMA"). Accelerant Re Ltd's board of directors therefore decided to voluntarily surrender such license and Accelerant Re Ltd was deregistered by the BMA in December 2023. We continue to own a segregated account with an entity that remains subject to BMA regulation. 

Certain material aspects of these laws and regulations as they relate to solvency, dividends and capital and surplus are summarized below.

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**EU — Belgium** 

Our Belgium insurance subsidiary (Accelerant Insurance Europe SA/NV) is regulated by the National Bank of Belgium ("NBB") pursuant to the Belgium Insurance Act of 2014. This subsidiary is obligated to maintain a minimum solvency margin based on the Solvency II regulations. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

The amount of dividends that this subsidiary is permitted to distribute is restricted to retained earnings, the current year profit and legal reserves (as defined). Dividends must be approved by the NBB before distribution. Solvency and capital requirements for this subsidiary are based on the Solvency II framework and must continue to be met following any distribution.

**EU — Ireland** 

Our European insurance intermediary (Accelerant Agency Limited) is registered as an insurance intermediary by the Central Bank of Ireland ("CBI") under the European Union (Insurance Distribution) Regulations, 2018 ("IDD"). This subsidiary also has a UK third branch (Accelerant Agency Limited UK Branch) which is authorized and regulated by the Financial Conduct Authority ("FCA"). The FCA's applicable regulations require that a firm must at all times ensure that it is able to meet its liabilities as they fall due and at all times maintain capital resources equal to or in excess of its relevant capital resources requirement. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**U.S.** 

Our U.S. insurance subsidiaries are required to maintain minimum levels of solvency and liquidity as determined by law, and to comply with Risk-Based Capital ("RBC") requirements and licensing rules as required by each U.S. insurer's domiciliary state, and the states in which they operate. RBC is used to evaluate the adequacy of capital and surplus maintained by our U.S. insurance subsidiaries in relation to three major risk areas associated with asset risk, insurance risk and other risks. For both of our U.S. insurance subsidiaries, there are no prescribed or permitted statutory accounting practices that differ from the statutory accounting principles established by National Association of Insurance Commissioners and adopted by the US state regulators. Dividends must be approved by the insurance commissioner in the state of domicile before distribution. As of December 31, 2024 and 2023, our U.S. insurance subsidiaries exceeded their required levels of RBC.

**UK** 

Our UK based insurance subsidiary is regulated by the Prudential Regulatory Authority ("PRA") and the FCA. Our UK based insurance subsidiary is required to maintain adequate financial resources in accordance with the requirements of the PRA. Insurers must comply with both a Minimum Capital Requirement ("MCR") and a Solvency Capital Requirement ("SCR") calculated using the Solvency II standard formula. The calculation of the MCR and SCR is based on, among other things, the type and amount of insurance business written and claims paid by the insurance company. The PRA's rules require our UK insurance subsidiary to obtain regulatory approval for any proposed payment of a dividend. The UK Regulator considers the MCR and SCR when assessing requests to make distributions. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**Canada** 

Our insurance subsidiary based in Canada is regulated for solvency purposes by the Office of the Superintendent of Financial Institutions ("OSFI") under the provisions of the Insurance Companies Act (Canadian Act). Our Canadian subsidiary is committed to establishing and maintaining an internal targeted capital ratio that is set above OSFI's supervisory target capital ratio. The internal targeted capital ratio is the level of capital based on the subsidiary's Own Risk and Solvency Assessment ("ORSA") that is necessary to cover the risks specified in the Minimum Capital Test Guideline (as defined) as well as other risks of the insurer. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

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**Cayman Islands** 

After evaluating the business and liquidity needs of our Cayman Islands reinsurance subsidiary, the directors may, from time to time, declare dividends to the shareholders. Such dividends shall only be paid out of our Cayman Islands reinsurance subsidiary's retained earnings and any paid-in capital in excess of par, provided that, after giving effect to each such dividend, the remaining capital is in excess of any capital requirements as prescribed by our Cayman Islands reinsurance subsidiary's Board and/or the regulator, the Cayman Islands Monetary Authority ("CIMA"). Prior notification of the payment of such dividends will be given to CIMA. Further, our Cayman Islands reinsurance subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes from time to time subject to approval from our Cayman Islands subsidiary's Board and, thereafter, prior written approval from CIMA. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**Bermuda** 

Redemption or repurchase of securities may only be paid for out of paid-up capital and profits of our Bermuda subsidiary available for dividends, or from the proceeds of a fresh issue of securities. Any premium payable on redemption may only be paid out of our Bermuda subsidiary's share premium account, profits available for dividends or out of the contributed surplus account. (A Bermuda company may only pay dividends out of profits, but distributions to shareholders can be made out of any contributed surplus). Further, our Bermuda subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes subject to approval from our Bermuda subsidiary's Board.

**23. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was March 27, 2025. Based upon this review, other than as described below, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

***Acquisition of an MGA***

In January 2025, the Group's subsidiary Corniche Acquisition Co. Ltd. acquired a controlling interest in the outstanding common shares of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, for $56 million of consideration such that it owns 80.5% of Corniche's common shares. Previously, the investment in Corniche was accounted for as an equity method investment. Following the completion of the step acquisition, the Group remeasured its previously held equity interest to fair value at the acquisition date and we expect to record a gain of $2.1 million within "Net realized gains on investments" in the first quarter 2025.

***Tax residency***

On March 25, 2025, the Board of Directors of each of Accelerant Holdings and its subsidiary, Accelerant Holdings (Cayman) Ltd., (together, the "Holding Companies"), approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK, in each case determining that the Holdings Companies would be centrally managed and controlled from the UK on a prospective basis. "Central management and control" means that the strategic policy and direction of a company will be set from within the UK. Such actions are distinguished from decisions of a more day-to-day, operational nature. Becoming UK tax residents will enable the Holding Companies to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. The Company does not expect any material impact to current or deferred taxes upon the change of tax residency of the Holdings Companies. Status as a UK tax resident has no implications for the day-to-day management and operations of the Holding Companies which will remain sited in the Cayman Islands.

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**Schedule I** 

**Accelerant Holdings LP** 

**Summary of Investments Other Than Investments in Related Parties** 

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Cost** | **Fair value** | **Amount at**<br>**which shown**<br>**in the balance**<br>**sheet** |
|  **Type of Investment** |  |  |  |
|  Fixed maturity and short-term investments available for sale, at fair value <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $175.5 | $174.0 | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency | 128.9 | 128.2 | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency | 161.1 | 158.6 | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed | 44.4 | 43.0 | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed | 18.6 | 18.4 | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities | 22.1 | 22.1 | 22.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 550.6 | 544.3 | 544.3 |
|  Other investments, at fair value | 10.0 | 45.3 | 45.3 |
|  **Total** | $**560.6** | $**589.6** | $**589.6** |

---

<sup>(1)</sup> Original cost of fixed maturities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

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**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Balance Sheets — Parent Company Only** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions, except number of shares and per share amounts)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 0.2 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from related parties | 0.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4.9 | 5.2 |
|  **Total assets** | $**5.6** | $**5.6** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated losses in subsidiaries | 56.6 | 72.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 7.2 | 6.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payables and other liabilities | 1.6 | 1.6 |
|  **Total liabilities** | $**65.4** | $**80.2** |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference <sup>(2)</sup> | $**50.2** | $**44.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | 110.6 | 110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive losses | (21.0) | (9.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (211.7) | (232.3) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity <sup>(1)</sup>** | **(110.0)** | **(118.7)** |
|  **Total Equity** | **(59.8)** | **(74.6)** |
|  **Total liabilities and equity** | $**5.6** | $**5.6** |

---

<sup>(1)</sup> The Partners' convertible preference shares and convertible preference shares owned by non-Partners are considered non-controlling interests as the convertible preference shares were issued by a consolidated subsidiary and not Accelerant Holdings LP. Refer to Note 16 of the Consolidated Financial Statements for additional information. 

<sup>(2)</sup> See Note 16 of the Consolidated Financial Statements for details regarding the Class D shares and liquidation preference.

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

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**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Operations — Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $0.2 | $0.1 | $— |
|  **Total revenues** | **0.2** | **0.1** | **—** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 0.4 | 0.2 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses |  |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  |  | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses | 0.3 |  | 0.3 |
|  **Total expenses** | **0.7** | **0.2** | **0.8** |
|  **Loss (income) before taxes** | **(0.5)** | **(0.1)** | **(0.8)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense |  |  |  |
|  **Net (loss) income before equity in undistributed earnings of subsidiaries** | **(0.5)** | **(0.1)** | **(0.8)** |
|  Equity in undistributed earnings of subsidiaries | 27.2 | (48.7) | (91.7) |
|  **Net income (loss)** | $**26.7** | $**(48.8)** | $**(92.5)** |

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*See accompanying notes to the Condensed Financial Information of Predecessor.* 

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**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Comprehensive Income (Loss) — Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $26.7 | $(48.8) | $(92.5) |
|  Other comprehensive (loss) income, net of tax | (11.9) | 3.4 | (19.9) |
|  **Comprehensive income (loss)** | **14.8** | **(45.4)** | **(112.4)** |

---

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

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**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Cash Flows — Parent Company Only** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023<sup>(1)</sup>** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $26.7 | $(48.8) | $(92.5) |
|  **Adjustments to reconcile net income (loss) to net cash used in operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-cash revenues, expenses, gains and losses included in income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in undistributed earnings of subsidiaries | (27.2) | 48.7 | 91.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.3 |  | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 0.1 | 0.4 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (0.1) | 0.5 | (4.7) |
|  **Net cash (used in) provided by operating activities** | **(0.2)** | **0.8** | **(0.1)** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of other investments |  |  | 0.3 |
|  **Net cash provided by investing activities** | **—** | **—** | **0.3** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  |  | (1.3) |
|  **Net cash used in financing activities** | **—** | **—** | **(1.3)** |
|  **Net increase in cash, cash equivalents and restricted cash** | (0.2) | 0.8 | (1.1) |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash |  | (0.8) | (0.9) |
|  Cash, cash equivalents and restricted cash at beginning of the year | 0.4 | 0.4 | 2.4 |
|  **Cash, cash equivalents and restricted cash at end of the year** | $**0.2** | $**0.4** | $**0.4** |

---

<sup>(1)</sup> Disclosed amounts were revised to reflect the correction of certain errors, primarily related to the nearly equal and offsetting amounts of payment of debt (previously reported as $72.2 million) and the effect of foreign currency rate change on cash, cash equivalents and restricted cash (previously reported as $(71.3) million). In addition, equity in undistributed earnings of subsidiaries; other; and other assets, accounts payable and other liabilities were revised from previously reported amounts of $48.0 million, $0.3 million and $(0.8) million, respectively. We note that the information prescribed within Schedule II, Condensed financial information of registrant, pursuant to Regulation S-X 7-05 is required for registrants and was voluntarily provided for Accelerant Holdings LP (predecessor to the intended registrant, Accelerant Holdings). In considering such factors and no impact on overall cash flows or period end balances, we have concluded that the errors were immaterial to the previously issued financial statements. However, such disclosed amounts are being revised to enhance comparability among the periods. 

**Supplemental cash flow information:** 

For the years ended December 31, 2024, 2023 and 2022, Accelerant Holdings LP did not pay any interest on debt or income taxes.

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

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**Notes to the Condensed Financial Information of Predecessor—Parent Company Only** 

The Condensed Financial Information of Accelerant Holdings LP (the Predecessor) should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of Accelerant Holdings LP and subsidiaries as of December 31, 2024 and 2023 and for each of the three years ended December 31, 2024 (the "Consolidated Financial Statements").

The Predecessor's investments in consolidated subsidiaries are stated at cost plus equity in losses or undistributed income of consolidated subsidiaries.

The Partners' convertible preference shares and convertible preference shares owned by non-Partners, are considered non-controlling interests as the convertible preference shares were issued by a consolidated subsidiary and not Accelerant Holdings LP. Refer to Note 16 of the Consolidated Financial Statements for additional information.

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**Schedule III** 

**Accelerant Holdings LP** 

**Supplementary Insurance Information** 

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **Deferred**<br>**acquisition**<br>**costs** | **Unpaid losses**<br>**and loss**<br>**adjustment**<br>**expenses** | **Unearned**<br>**premiums** | **Net written**<br>**premiums** | **Net**<br>**earned**<br>**premiums** | **Net**<br>**investment**<br>**income** | **Losses and**<br>**loss**<br>**adjustment**<br>**expenses** | **Amortization**<br>**of deferred**<br>**acquisition**<br>**costs** | **Other**<br>**operating**<br>**expenses <sup>(1)</sup>** |
| **2024** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $65 |
|  MGA Operations |  |  |  |  |  | 4.2 |  |  | 105.6 |
|  Underwriting | 83.4 | 1294.4 | 1803.2 | 254.6 | 226.6 | 32.6 | 167.3 | 104.2 | 90.5 |
|  Corporate and Other |  |  |  |  |  | 1.2 |  |  | 36.9 |
|  Consolidation and elimination adjustments | (22.7) |  |  |  |  |  |  | (22.8) | (56.7) |
|  **Total** | $**60.7** | $**1294.4** | $**1803.2** | $**254.6** | $**226.6** | $**39.1** | $**167.3** | $**81.4** | $**241.3** |
| **2023** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $36.2 |
|  MGA Operations |  |  |  |  |  | 2.8 |  |  | 80.6 |
|  Underwriting | 71.9 | 772.5 | 1152.1 | 190.9 | 105.1 | 12.1 | 80.3 | 68.4 | 56 |
|  Corporate and Other |  |  |  |  |  | 3.3 |  |  | 31.7 |
|  Consolidation and elimination adjustments | (18.9) |  |  |  |  |  |  | (18.5) | (26.8) |
|  **Total** | $**53.0** | $**772.5** | $**1152.1** | $**190.9** | $**105.1** | $**19.3** | $**80.3** | $**49.9** | $**177.7** |
| **2022** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $0.1 | $— | $— | $26.3 |
|  MGA Operations |  |  |  |  |  | 1 |  |  | 52.6 |
|  Underwriting | 34.3 | 415.4 | 743.6 | 186 | 141.2 | 1.5 | 99.5 | 58 | 47.1 |
|  Corporate and Other |  |  |  |  |  |  |  |  | 13.4 |
|  Consolidation and elimination adjustments | (7.7) |  |  |  |  |  |  | (23.0) | (15.1) |
|  **Total** | $**26.6** | $**415.4** | $**743.6** | $**186.0** | $**141.2** | $**2.6** | $**99.5** | $**35.0** | $**124.3** |

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<sup>(1)</sup> Consolidated Other operating expenses consists of general and administration expenses of $227.9 million, $169.2 million, and $116.1 million and technology and development operating expenses of $13.4 million, $8.5 million, and $8.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. 

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**Schedule IV** 

**Accelerant Holdings LP** 

**Reinsurance** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Gross**<br>**amount** | **Ceded to other**<br>**companies** | **Assumed from**<br>**other companies** | **Net**<br>**amount** | **Percentage of**<br>**amount assumed to**<br>**net** |
|  **Year Ended December 31, 2024** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | $2103.7 | $(2005.0) | $127.9 | $226.6 | 56.4% |
|  **Total premium earned** | $**2103.7** | $**(2005.0)** | $**127.9** | $**226.6** | 56.4% |
|  **Year Ended December 31, 2023** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 1304.5 | (1214.3) | 14.9 | 105.1 | 14.2% |
|  **Total premium earned** | $**1304.5** | $**(1214.3)** | $**14.9** | $**105.1** | 14.2% |
|  **Year Ended December 31, 2022** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 779.5 | (637.4) | (0.9) | 141.2 | (0.6)% |
|  **Total premium earned** | $**779.5** | $**(637.4)** | $**(0.9)** | $**141.2** | (0.6)% |

---

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##### [**Table of Contents**](#toc)
**Schedule V** 

**Accelerant Holdings LP** 

**Valuation and Qualifying Accounts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Balance at**<br>**beginning of year** | **Charged to costs<br>and expenses** | **Charged to**<br>**other accounts** | **(Deductions)** | **Foreign**<br>**currency**<br>**translation**<br>**adjustment** | **Balance at the**<br>**end of year** |
| **2024** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | $46.5 | $(9.7) | $8.6 | $— | $— | $45.4 |
|  Allowance for premiums receivable | 2.7 |  |  | (0.3) |  | 2.4 |
|  Allowance for reinsurance recoverables | 0.3 | 0.1 |  |  |  | 0.4 |
| **2023** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 35.2 | 11.6 | (0.3) |  |  | 46.5 |
|  Allowance for premiums receivable | 1.8 | 0.9 |  |  |  | 2.7 |
|  Allowance for reinsurance recoverables |  | 0.3 |  |  |  | 0.3 |
| **2022** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 6.9 | 25.4 |  |  | 2.9 | 35.2 |
|  Allowance for premiums receivable | 1.3 | 0.5 |  |  |  | 1.8 |

---

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##### [**Table of Contents**](#toc)
**Schedule VI** 

**Accelerant Holdings LP** 

**Supplementary Information Concerning Property/Casualty Insurance Operations** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | | | | | | | | **Losses and loss<br>adjustment expenses** | **Losses and loss<br>adjustment expenses** | | |
| **Affiliation with**<br> **Registrant** | **Deferred**<br>**policy**<br>**acquisition**<br>**costs** | **Unpaid**<br>**losses and**<br>**loss**<br>**adjustment**<br>**expenses** | **Discount,**<br>**if any** | **Unearned**<br>**premiums** | **Written**<br>**premiums** | **Net**<br>**earned**<br>**premiums** | **Net**<br>**investment**<br>**income** | **Current**<br>**year** | **Prior**<br>**years** | **Amortization**<br>**of deferred**<br>**acquisition**<br>**costs** | **Paid**<br>**claims and<br>claim**<br>**adjustment**<br>**expenses** |
|  Consolidated subsidiaries |  |  |  |  |  |  |  |  |  |  |  |
| 2024 | $60.7 | $1294.4 | $— | $1803.2 | $254.6 | $226.6 | $39.1 | $152.2 | $15.1 | $81.4 | $105.6 |
| 2023 | 53.0 | 772.5 |  | 1152.1 | 190.9 | 105.1 | 19.3 | 75.4 | 4.9 | 49.9 | 81.2 |
| 2022 | 26.6 | 415.4 |  | 743.6 | 186.0 | 141.2 | 2.6 | 94.7 | 4.8 | 35.0 | 53.3 |

---

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##### [**Table of Contents**](#toc)
![LOGO](g543111g17i82.jpg)

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
|  **[Condensed Consolidated Interim Financial Statements:](#fin543111_800)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Interim Financial Statements](#fin543111_801) | F-184 |
|  **[Notes to the Condensed Consolidated Financial Statements:](#fin543111_802)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_803) | F-190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_804) | F-190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_805) | F-191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_806) | F-196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_807) | F-200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Unpaid losses and loss adjustment expenses](#fin543111_808) | F-202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Reinsurance](#fin543111_809) | F-202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Deferred acquisition costs and deferred ceding commissions](#fin543111_810) | F-204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Debt](#fin543111_811) | F-205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Business acquisitions](#fin543111_812) | F-205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Share-based compensation](#fin543111_813) | F-207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Income taxes](#fin543111_814) | F-207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Other assets](#fin543111_815) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Accounts payable and other liabilities](#fin543111_816) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Related party transactions](#fin543111_817) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Commitments and contingencies](#fin543111_818) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Subsequent events](#fin543111_819) | F-210 |

---

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Balance Sheets (unaudited)** 

---

| | | |
|:---|:---|:---|
| ***(expressed in millions of US dollars, except share data)*** | **March 31, 2025** | **December 31, 2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2025: $63.9 and 2024: $65.0) | $64.2 | $64.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2025: $583.1 and 2024: $485.6) | 582.7 | 479.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 | 45.3 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **702.8** | **607.8** |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.9 | 1273.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2025: $2.7 and 2024: $2.4) | 863.3 | 791.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 | 1069.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 | 364.3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 | 60.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 114.9 | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 | 83.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | 253.4 | 219.1 |
|  **Total assets** | $**6713.9** | $**6092.5** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 | 1803.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 | 1109.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 | 193.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 | 746.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 | 201.8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 210.7 | 198.8 |
|  **Total liabilities** | **6262.6** | **5668.5** |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 16) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference | **51.8** | **50.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | $110.6 | $110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (12.9) | (21.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (206.7) | (211.7) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(96.9)** | **(110.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of consolidated subsidiary | 486.2 | 486.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | 10.2 | (2.4) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **496.4** | **483.8** |
|  **Total equity** | **451.3** | **424.0** |
|  **Total liabilities and equity** | $**6713.9** | $**6092.5** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Operations (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 70.0 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 2.9 | (1.0) |
|  **Total expenses** | **162.4** | **116.1** |
|  **Income before income taxes** | **15.6** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.9** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant Holdings LP** | $**6.6** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  Net income | $7.9 | $2.1 |
|  **Other comprehensive income, net of tax:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 2.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities | 4.8 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments for losses recognized in net income | 1.2 |  |
|  **Other comprehensive income, net of tax** | **8.3** | **—** |
|  **Total comprehensive income** | **16.2** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive (income) loss attributable to non-controlling interests | (1.5) | 5.0 |
|  **Comprehensive income attributable to Accelerant Holdings LP** | $**14.7** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Equity (unaudited)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2025** |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2025** | $**50.2** | $**110.6** | $**12.1** | $**(21.0)** | $**(211.7)** | $**(110.0)** | $**483.8** | $**424.0** |
|  Net income |  |  |  |  | 6.6 | 6.6 | 1.3 | 7.9 |
|  Other comprehensive income |  |  |  | 8.1 |  | 8.1 | 0.2 | 8.3 |
|  Accretion on preferred shares | 1.6 |  |  |  | (1.6) | (1.6) |  |  |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 2.4 | 2.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (2.3) | (2.3) |
|  Issuance of non-controlling interests <sup>(1)</sup> |  |  |  |  |  |  | 11.0 | 11.0 |
|  **Balance, March 31, 2025** | $**51.8** | $**110.6** | $**12.1** | $**(12.9)** | $**(206.7)** | $**(96.9)** | $**496.4** | $**451.3** |

---

<sup>(1)</sup> Refer to Note 10 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2024** |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2024** | $**44.1** | $**110.6** | $**12.1** | $**(9.1)** | $**(232.3)** | $**(118.7)** | $**358.7** | $**284.1** |
|  Net income (loss) |  |  |  |  | 7.1 | 7.1 | (5.0) | 2.1 |
|  Accretion of preference shares | 1.5 |  |  |  | (1.5) | (1.5) |  |  |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 2.2 | 2.2 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (1.6) | (1.6) |
|  **Balance, March 31, 2024** | $**45.6** | $**110.6** | $**12.1** | $**(9.1)** | $**(226.7)** | $**(113.1)** | $**354.3** | $**286.8** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Cash Flows (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $7.9 | $2.1 |
|  **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gains on investments | (2.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gains) losses on investments | (1.7) | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.5) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 2.4 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax expenses (benefits) | 0.3 | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 2.9 | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (1.8) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 0.2 | 0.4 |
|  **Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (55.7) | (10.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (138.0) | (90.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (188.7) | (33.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | (2.0) | (34.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 4.3 | (2.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 194.2 | 102.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 155.0 | 95.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 66.6 | 112.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 7.5 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 108.0 | 57.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | (8.6) | (13.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (65.6) | (49.0) |
|  **Net cash provided by operating activities** | **91.8** | **144.0** |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 26.4 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 15.8 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (126.9) | (161.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | 2.5 | (45.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (6.6) | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (0.9) | (2.4) |
|  **Net cash used in investing activities** | **(89.7)** | **(90.1)** |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (2.3) | (1.4) |
|  **Net cash used in financing activities** | **(2.3)** | **(1.9)** |
|  **Net increase in cash, cash equivalents and restricted cash** | **(0.2)** | **52.0** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  Cash, cash equivalents and restricted cash at beginning of period | 1273.2 | 775.8 |
|  **Cash, cash equivalents and restricted cash at end of period** | $**1290.9** | $**825.2** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Cash Flows (unaudited) (continued)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Supplemental cash flows information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $2.6 | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 3.3 | 2.0 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1238.2 | 823.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents  | 52.7 | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1290.9** | $**825.2** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Notes to Condensed Consolidated Financial Statements (unaudited)** 

**1. Nature of business and basis of presentation** 

Accelerant Holdings LP ("AHLP") is a Cayman Islands exempted limited partnership, formed in December 2018 with capital provided by initial investors, which included entities affiliated with Altamont Capital Partners, a private equity firm, as well as certain members of the Partnership's executive management team. AHLP is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). Accelerant Holdings, together with its risk capital partners, provides property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). AHLP, together with its subsidiary companies ("we", "us", "our" or the "Partnership") focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

Accelerant Holdings is the primary operating holding company of the Group.

Accelerant Holdings (Cayman) Ltd ("Accelerant Cayman") is a holding company incorporated in the Cayman Islands and is the entity which owns the underlying operating group companies engaged in the Accelerant business.

These unaudited condensed consolidated interim financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information. Accordingly, they do not include all of the financial information and note disclosures required by US GAAP for complete consolidated financial statements. The condensed consolidated interim financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities.

In our opinion, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature necessary to fairly state our financial position as of March 31, 2025, our results of operations and cash flows for the three months ended March 31, 2025 and 2024. The results of operations for any interim period are not necessarily indicative of results for the full year.

These unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes included in our annual financial statements for the year ended December 31, 2024. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP.

**2. Summary of significant accounting policies** 

There were no material changes to our significant accounting policies from those that were disclosed in our annual consolidated financial statements as of and for the year ended December 31, 2024.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued ASU 2024-03 *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses,* requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard.

*<u>Income Tax:</u>* In December 2023, the FASB issued ASU 2023-09 *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*, to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard on our disclosures as well as the period in which we will adopt.

**3. Segment information** 

We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way the CODM assesses performance of the business and makes decisions on the allocation of resources.

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***Exchange Services***

Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and risk capital partners. Insurance companies that join the Risk Exchange pay Accelerant a fixed-percentage volume-based fee for sourcing, managing, and monitoring the business they write. The Risk Exchange pays fees to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.

***MGA Operations***

MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a voting interest entity, or "VOE").

The Owned Members reporting unit comprises MGAs in which the Partnership has made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.

***Underwriting***

Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant's consolidated insurance companies and Accelerant Re. Our Underwriting segment is a strategic asset that enables access to Accelerant's portfolio for current and prospective risk capital partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.

Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as deferred acquisition costs ("DAC") for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.

We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we generate additional third-party insurance relationships through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions would not be subject to elimination).

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The following includes the financial results of our three reportable segments for the three months ended March 31, 2025 and 2024. Corporate functions and certain other businesses and operations are included in Corporate and Other.

***Financial information by segment:***

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses <sup>(2) (3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.6 | (8.1) | 70.0 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.2)** | $**(23.2)** | $**42.7** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (2.9) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.6** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

---

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<sup>(3)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(4)</sup> Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $29.8 | $29.8 | $— | $35.2 | $65 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 36.5 | 20.5 |  | 57 |  | (57.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 5 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44 | 44 |  |  | 44 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3) (4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8.

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<sup>(3)</sup> General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the three months ended March 31, 2024 consists of $2.7 million of system development non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation and $1.1 million of individually insignificant costs. 

We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. We do not allocate assets to reportable segments as we do not use such information, except for (re)insurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments.

All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the three months ended March 31, 2025 and 2024.

Our revenues by geography were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $49.0 | $21.7 | $70.7 |
|  Direct commission income | 14.0 | 14.1 | 28.1 |
|  Net earned premiums | 15.1 | 47.9 | 63.0 |
|  Net investment income | 7.4 | 4.8 | 12.2 |
|  Net realized gains on investments | 0.2 | 2.1 | 2.3 |
|  Net unrealized gains on investments | 1.7 |  | 1.7 |
|  **Total revenues** | $**87.4** | $**90.6** | $**178.0** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $30.2 | $34.8 | $65.0 |
|  Direct commission income | 5.5 | 6.1 | 11.6 |
|  Net earned premiums | 25.6 | 18.4 | 44.0 |
|  Net investment income | 3.9 | 4.0 | 7.9 |
|  Net realized gains on investments |  | 0.4 | 0.4 |
|  Net unrealized losses on investments |  | (0.8) | (0.8) |
|  **Total revenues** | $**65.2** | $**62.9** | $**128.1** |

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<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the three months ended March 31, 2025 and 2024 resulting from the loss experience of covered insurance contracts, refer to Note 8.

**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $223.3 | $1.3 | $(1.3) | $223.3 |
|  US government and agency | 154.9 | 0.9 | (0.3) | 155.5 |
|  Non-US government and agency | 175.2 | 0.9 | (1.5) | 174.6 |
|  Residential mortgage-backed | 46.0 | 0.3 | (0.7) | 45.6 |
|  Commercial mortgage-backed | 20.9 | 0.2 |  | 21.1 |
|  Other asset-backed securities | 26.7 | 0.1 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**647.0** | $**3.7** | $**(3.8)** | $**646.9** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

---

The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $75.9 | $(1.3) | $— | $— | $75.9 | $(1.3) |
|  US government and agency | 31.7 | (0.1) | 4.7 | (0.2) | 36.4 | (0.3) |
|  Non-US government and agency | 76.7 | (1.5) |  |  | 76.7 | (1.5) |
|  Residential mortgage-backed | 15.0 | (0.2) | 3.4 | (0.5) | 18.4 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**199.3** | $**(3.1)** | $**8.1** | $**(0.7)** | $**207.4** | $**(3.8)** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at March 31, 2025 and December 31, 2024 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $114.2 | $114.4 |
|  Due after one year through five years | 342.6 | 343.7 |
|  Due after five years through ten years | 89.2 | 88.3 |
|  Due after ten years | 7.4 | 7.0 |
|  Residential mortgage-backed | 46.0 | 45.6 |
|  Commercial mortgage-backed | 20.9 | 21.1 |
|  Other asset-backed securities | 26.7 | 26.8 |
|  **Total** | $**647.0** | $**646.9** |

---

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused third-party claim administrator ("TPA") that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

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Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs <sup>(1)</sup> | 19.0% - 20.0% | $2.2 | 19.0% - 20.0% | $11.0 |
|  Other | 9.4% - 15.0% | 6.7 | 9.4% - 15.0% | 7.2 |
|  **Equity method investments** |  | $**8.9** |  | $**18.2** |

---

<sup>(1)</sup> During the first quarter of 2025, we acquired a controlling interest in an MGA subsidiary that we previously accounted for as an equity method investment. Refer to Note 10 for additional information.

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of March 31, 2025, we had unfunded commitments of $7.0 million to our equity method investees.

For the three months ended March 31, 2025 and 2024, we received dividends from equity method investees of $0.9 million and $0.2 million, respectively.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $27.9 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds | 19.1 | 19.1 |
|  **Other investments** | $**47.0** | $**45.3** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the three months ended March 31, 2025, there were no impairments and we recorded $1.7 million of income as a component of unrealized gains following observable prices related to these investments. For the three months ended March 31, 2024, there were no impairments and no observable transaction prices based on orderly transaction prices for the identical or similar investments of the same issuer.

We have recognized cumulative income as a component of unrealized gains of $37.1 million, net of cumulative impairments of $0.2 million associated with investments accounted for under the measurement alternative from inception of the related investments.

As of March 31, 2025, we had unfunded commitments of $2.2 million to venture funds.

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***Net investment income***

Investment income and expenses were as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Interest on cash and cash equivalents | $6.6 | $5.0 |
|  Interest on fixed maturity investments | 5.3 | 2.7 |
|  Income from equity method investments | 0.5 | 0.3 |
|  **Gross investment income** | **12.4** | **8.0** |
|  Investment expenses | (0.2) | (0.1) |
|  **Net investment income** | $**12.2** | $**7.9** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Net realized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.3 | $(0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity securities sold during the period |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 2.0 |  |
|  **Net realized gains on investments** | $**2.3** | $**0.4** |
|  **Net unrealized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized losses on equity securities held at the reporting date |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 1.7 |  |
|  **Net unrealized gains (losses) on investments** | $**1.7** | $**(0.8)** |
|  **Net realized and unrealized gains (losses) on investments** | $**4.0** | $**(0.4)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

***Regulated deposits and restricted assets***

Certain subsidiaries of the Group are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in our condensed consolidated balance sheets.

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The following table represents the restricted assets we have pledged in favor of certain ceding companies to collateralized obligations:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Short-term investments | $17.3 | $17.2 |
|  Fixed maturity securities | 33.6 | 33.0 |
|  Cash and cash equivalents | 52.7 | 47.3 |
|  **Total** | $**103.6** | $**97.5** |

---

**5. Fair value measurements** 

Assets recorded at fair value in our condensed consolidated balance sheets are measured and classified in accordance with a fair value hierarchy consisting of three "levels" based on the observability of valuation inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

There were no material changes to valuation methodologies of assets measured at fair value.

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $223.3 | $— | $223.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 155.5 |  | 155.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 174.6 |  | 174.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 45.6 |  | 45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 21.1 |  | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 26.8 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**—** | $**646.9** | $**—** | $**646.9** |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | $**—** | $**544.3** | $**—** | $**544.3** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the three months ended March 31, 2025 and for the year ended December 31, 2024.

***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our condensed consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $27.9 | $27.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**47.0** | $**47.0** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

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##### [**Table of Contents**](#toc)
***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>****:*** As further described in Note 9, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of March 31, 2025 and December 31, 2024. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of March 31, 2025 and December 31, 2024.

**6. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 1069.5 | 605.5 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **224.9** | **167.0** |
|  Incurred losses and LAE related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years |  |  |
|  **Total incurred losses and LAE** | **45.2** | **28.7** |
|  Paid losses and LAE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (1.9) | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (26.7) | (21.0) |
|  **Total paid losses and LAE** | **(28.6)** | **(23.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | 5.1 | (4.4) |
|  **Net reserve for unpaid losses and LAE, end of period** | **246.6** | **168.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of period | 1266.5 | 695.0 |
|  **Gross reserve for unpaid losses and LAE, end of period** | $**1513.1** | $**863.3** |

---

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

**7. Reinsurance** 

The Group enters into reinsurance agreements to limit its exposure to large losses and to enable it to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

The Group uses extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage its exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align the Group's interests with those of its reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

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The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Written premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $800.8 | $532.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 73.2 | 18.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Earned premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $642.1 | $436.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.7 | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (655.8) | (406.7) |
|  **Net earned premiums** | $**63.0** | $**44.0** |
|  **Loss and LAE:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $365.5 | $227.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 17.3 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (337.6) | (206.0) |
|  **Net loss and LAE** | $**45.2** | $**28.7** |

---

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Reinsurance recoverables on unpaid losses and LAE | $1266.5 | $1069.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 292.6 | 281.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 77.6 | 82.9 |
|  **Total other reinsurance recoverables** | **370.2** | **364.3** |
|  **Reinsurance recoverables** | $**1636.7** | $**1433.8** |

---

For the three months ended March 31, 2025, the Group reduced the deposit assets by $5.3 million attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, the Group has received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of A- (excellent) or better, and the Group requires reinsurance

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##### [**Table of Contents**](#toc)
recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

**8. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by the Group:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

---

The following table presents the amounts of ceding commission deferred and amortized:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commission to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | $**194.6** | $**128.0** |

---

The Group cedes a significant portion of its premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

The Group's contractual acquisition costs are expressed as a percentage of the underlying premiums by type of insurance policy. Certain agreements with our Members include sliding scale adjustments to acquisition cost based on the actual loss experience of the insurance contracts they write, such that our ultimate acquisition cost inversely changes relative to the loss ratio (i.e., adverse experience in the loss ratio will result in a reduction in the related acquisition cost and, conversely, any favorable experience in the loss ratio will result in an increase in the acquisition cost).

Certain of the Group's reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected

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contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commission will result in a change to the deferred ceding commissions liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the three months ended March 31, 2024 included reductions of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There was no net sliding scale commission adjustment during the three months ended March 31, 2025.

**9. Debt** 

The Group had the following senior unsecured debt outstanding as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Senior unsecured debt | $125.0 | $125.0 |
|  Less: unamortized debt issuance costs | (3.5) | (3.6) |
|  **Senior unsecured debt** | $**121.5** | $**121.4** |

---

The Group has a senior unsecured syndicated US dollar denominated loan facility with a September 2029 maturity date with an aggregate outstanding principal balance of $125 million. The credit agreement includes a $50 million revolving credit facility (which was unutilized and available as of March 31, 2025).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows the Group to withdraw predefined amounts. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on the Group's consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, the Group may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts the Group prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, the Group was in compliance with all such covenants.

**10. Business acquisitions** 

In January 2025, the Group's consolidated subsidiary Corniche Acquisition Co. Ltd. acquired an additional 61% of the outstanding share capital of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes

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##### [**Table of Contents**](#toc)
in the insurance of risks related to the recycling industry, in exchange for $56.2 million of consideration consisting of i) $17.1 million of cash paid at acquisition, and an additional $17.1 million of cash to be paid over two equal installments due in June 2025 and January 2026 that is reflected as a payable within "Accounts payable and other liabilities" in our condensed consolidated balance sheets as of March 31, 2025); ii) the Group's previously held equity interest of $11.0 million; and iii) the non-controlling interests of $11.0 million. The acquisition of the additional 61% interest increased our ownership in Corniche from 19.5% to 80.5%. Previously, the Group accounted for the investment in Corniche as an equity method investment. Following the completion of the step acquisition, the Group remeasured its previously held equity interest to fair value at the step acquisition date. Accordingly, the Group recorded a revaluation gain of $2.0 million within "Net realized gains on investments" in our condensed consolidated statements of operations.

The fair value of the assets acquired and liabilities assumed and non-controlling interest was estimated using an income approach. Key assumptions included market-observable inputs and management's estimates of nominal cash flows. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. The Group's purchase price allocation related to the acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. The Group may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). The Group recorded goodwill from this acquisition, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of this acquisition after the respective closing date. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of AHLP. The acquisition-related costs incurred during the three months ended March 31, 2025 were $0.7 million.

The following table provides our preliminary purchase accounting financial information for the Corniche acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2025** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $16.2 |
|  Other identifiable intangible assets | 21.6 |
|  Premiums receivable | 7.0 |
|  Other assets | 0.4 |
|  **Total assets acquired** | **45.2** |
|  **Liabilities assumed:** |  |
|  Accounts payable and other liabilities | 16.7 |
|  **Total liabilities assumed** | **16.7** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **28.5** |
|  Goodwill | 27.7 |
|  **Total acquisition consideration** | $**56.2** |

---

<sup>(1)</sup> Total net cash paid to date for the interest in Corniche was $0.9 million, net of cash acquired (consisting of the $17.1 million initial payment at acquisition date net of the $16.2 million cash acquired). As noted above, this does not include cash payments of $17.1 million that will be due in two installments through January 2026. 

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##### [**Table of Contents**](#toc)
A roll forward of goodwill and other intangible assets, net as of and for the three months ended March 31, 2025 is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **Goodwill and other<br>intangible assets, net** |
|  Balance as of January 1, 2025 | $64.0 |
|  Goodwill from acquisition of business | 27.7 |
|  Other intangible assets from acquisition of business | 21.6 |
|  Amortization of other intangible assets | (1.2) |
|  Foreign currency translation | 2.8 |
|  **Balance as of March 31, 2025** | $**114.9** |

---

The Group did not have any business acquisitions during the three months ended March 31, 2024.

**11. Share-based compensation** 

***Share options granted***

No options have been granted during the first quarter of 2025. The following table summarizes the activity related to share option awards for the three months ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of January 1, 2025 | 179476 | $1615.12 | 9.1 | $— | $237.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled | (925) | 1615.12 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (2246) | 1615.12 |  |  |  |
|  **Outstanding as of March 31, 2025** | **176305** | $**1615.12** | **8.8** | $**—** | $**234.78** |
|  Options exercisable as of March 31, 2025 | 76646 | $1615.12 | 8.6 | $— | $175.92 |
|  Options unvested as of March 31, 2025 | 99659 | $1615.12 | 9.0 | $— | $280.05 |

---

The weighted average grant-date fair value of share options granted during the three months ended March 31, 2024 was $294.90.

For the three months ended March 31, 2025 and 2024, share-based compensation expense from share option awards granted was $2.4 million and $2.2 million, respectively, which is included in "Other expenses" in our condensed consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of March 31, 2025 and December 31, 2024 was $26.1 million and $29.6 million, respectively. The weighted average remaining requisite service period as of March 31, 2025 is 1.5 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**12. Income taxes** 

For the three months ended March 31, 2025 and 2024, our effective tax rate was 49.4% and 82.5%, respectively. We use the estimated annual effective tax rate method for calculating our tax provision in interim periods, which reflects our best estimate of the effective tax rate expected for the full year. The effective tax rates in both periods

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were impacted by taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the US, UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

The composition of our effective tax rates among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(33.9) | $15.6 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.4%** | **27.8%** | **—** | **82.5%** |

---

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##### [**Table of Contents**](#toc)
**13. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Prefunded claim settlement<br>accounts <sup>(1)</sup> | $89.5 | $58.6 |
|  Net deferred tax assets | 50.3 | 51.6 |
|  Commission income receivable | 28.5 | 28.3 |
|  Funds withheld by reinsurers | 18.5 | 18.2 |
|  Deferred offering costs <sup>(3)</sup> | 17.2 | 16.0 |
|  Prepaid expenses | 11.2 | 11.8 |
|  Prepaid retrocession premium | 5.1 | 5.3 |
|  Other | 33.1 | 29.3 |
|  **Total** | $**253.4** | $**219.1** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> As of the date of completion of these financial statements, the Group is preparing for its planned initial public offering. In the event that the Group postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

**14. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Premium tax payables | $48.0 | $53.7 |
|  Commission refund liabilities | 40.1 | 38.8 |
|  Deposit liabilities | 29.5 | 43.9 |
|  Trade payables | 17.2 | 13.8 |
|  Corporation tax payable | 9.0 | 4.4 |
|  Accrued expenses and other | 66.9 | 44.2 |
|  **Total** | $**210.7** | $**198.8** |

---

**15. Related party transactions** 

We have loans receivable from certain of the directors of the Partnership. At March 31, 2025 and December 31, 2024 the value of the loans receivable were $3.9 million and $3.7 million, respectively. Interest will accrue on the outstanding principal balance at a floating per annum rate equal to the greater of (i) the Prime Rate minus one percent (1.0%) and (ii) two and one quarter of one percent (2.25%). Interest will be due and payable on the repayment date. There is no fixed repayment date.

**16. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

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##### [**Table of Contents**](#toc)
***Unfunded investment commitments***

As of March 31, 2025, we had unfunded commitments of $9.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**17. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was May 16, 2025. Based upon this review, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

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![LOGO](g543111dsp04.jpg)

Accelerant Where true partnership exists

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##### [**Table of Contents**](#toc)
*Shares*![LOGO](g543111g14m98.jpg)

*Class A Common Shares* 

*PRELIMINARY PROSPECTUS* 

*Morgan Stanley* 

*Goldman Sachs & Co. LLC* 

*BMO Capital Markets* 

*RBC Capital Markets* 

*Piper Sandler* 

*Wells Fargo Securities* 

*William Blair* 

*Raymond James* 

*TD Securities* 

*Citizens Capital Markets* 

*FT Partners* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*, 2025* 

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##### [**Table of Contents**](#toc)
**PART II.** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution** <br>

The following table sets forth all the costs and expenses, other than underwriting discounts and commissions, payable in connection with the sale of our Class A common shares being registered hereby. Except as otherwise noted, the registrant will pay all of the costs and expenses set forth in the following table. All amounts shown below are estimates, except the SEC registration fee, the FINRA filing fee and the stock exchange listing fee:

---

| | |
|:---|:---|
|  | Amount |
|  SEC registration fee | $\* |
|  FINRA filing fee | \* |
|  NYSE listing fee | \* |
|  Printing and engraving expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Transfer agent and registrar fees | \* |
|  Miscellaneous expenses | \* |
|  Total | $\* |

---

\* To be completed by amendment.

**Item 14.** **Indemnification of Directors and Officers** <br>

Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences or committing a crime. Our amended and restated articles of association will provide for indemnification of officers and directors to the maximum extent permitted by law for losses, damages, costs and expenses incurred in their capacities as such, except through their own actual fraud and dishonesty or willful default.

We intend to enter into indemnification agreements with each of our directors and officers pursuant to which we will agree to indemnify our directors and officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

We also expect to maintain standard policies of insurance that provide coverage (1) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.

**Item 15.** **Recent Sales of Unregistered Securities** <br>

In the preceding three years, the registrant has sold and issued the following securities that were not registered under the Securities Act:

**Option, Restricted Stock Unit and Common Share Issuances** 

Since January 1, 2022, the Company granted employees options to purchase an aggregate of 177,493 common shares under our Share Incentive Plan at an exercise price of $1,615.12 per common share (all such options were issued during 2023 and 2024).

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##### [**Table of Contents**](#toc)
Since January 1, 2022, we have not granted any restricted stock units to our employees.

**Preference Share Issuances** 

In December 2024, the Company issued 55,537 Class C convertible preference shares for $104.7 million of gross proceeds as well as 10,874 Class C convertible preference shares to the owners of the immediate parent company for $20.5 million of gross proceeds.

In December 2022, the Company issued 89,155 Class B convertible preference shares for $90.0 million of gross proceeds as well as 59,648 Class B convertible preference shares to the owners of the immediate parent company for $60.2 million of gross proceeds.

In three issuances in January and March of 2022, the Company issued a total of 66,866 Class A convertible preference shares to employees and third-party investors for $66.9 million of gross proceeds. In January 2022, the Company issued 27,500 Class A convertible preference shares to the owners of Accelerant Holdings LP for $27.5 million of gross proceeds. The Company also issued 2,500 Class A convertible preference shares to a related-party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related-party by way of a $0.5 million loan funded by the Company. In addition, in January 2022, 866 Class A convertible preference shares were issued to certain executives of the Company for $0.9 million of gross proceeds.

None of the foregoing transactions involved any underwriters, underwriting discounts or commissions, or any public offering. We believe the offers, sales, and issuances of the above securities were exempt from registration under the Securities Act (or Regulation D or Regulation S promulgated thereunder) by virtue of Section 4(a)(2) of the Securities Act because the issuance of securities to the recipients did not involve a public offering, or in reliance on Rule 701 because the transactions were pursuant to compensatory benefit plans or contracts relating to compensation as provided under such rule. The recipients of the securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed upon the share certificates issued in these transactions. All recipients had adequate access, through their relationships with us, to information about us. The sales of these securities were made without any general solicitation or advertising.

**Item 16.** **Exhibits and Financial Statement Schedules** <br>

The exhibits filed herewith are set forth on the Index to Exhibits filed as a part of this Registration Statement beginning on page II-2 hereof.

**INDEX TO EXHIBITS** 

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 1.1\* | Form of Underwriting Agreement. |
| 3.1 | [Certificate of Incorporation dated as of October 7, 2021.](d543111dex31.htm) |
| 3.2 | [Second Amended and Restated Memorandum and Articles of Association dated as of May 19, 2023.](d543111dex32.htm) |
| 3.3 | [Third Amended and Restated Memorandum and Articles of Association dated as of December 30, 2024.](d543111dex33.htm) |
| 3.4 | [Form of Fourth Amended and Restated Memorandum and Articles of Association of Accelerant Holdings to be effective prior to the completion of this offering.](d543111dex34.htm) |
| 3.5 | [Second Amended and Restated Shareholders Agreement dated December 18, 2024.](d543111dex35.htm) |
| 4.1 | [Specimen Common Share Certificate of Accelerant Holdings.](d543111dex41.htm) |
| 5.1\* | Opinion of Maples and Calder (Cayman) LLP, Cayman Islands Legal Counsel to the Registrant. |
| 10.1 | [Form of Indemnification Agreement between Accelerant Holdings and each of its directors and executive officers.](d543111dex101.htm) |

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 10.2 | [Employment Agreement, by and between Jeff Radke and Accelerant Holdings, dated , 2025](d543111dex102.htm). |
| 10.3\* | Employment Agreement, by and between Christopher Lee-Smith and Accelerant Holdings, dated April 6, 2020. |
| 10.4\* | Employment Agreement, by and between Frank O'Neill and Accelerant Holdings, dated April 29, 2022. |
| 10.5\* | Letter of Variation, by and between Frank O'Neill and Accelerant Holdings, dated May 19, 2022. |
| 10.6+ | [2023 Accelerant Share Incentive Plan and form of award agreements thereunder.](d543111dex106.htm) |
| 10.7+ | [Employee Share Purchase Plan.](d543111dex107.htm) |
| 10.8 | [Credit Agreement, dated January 29, 2021, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](d543111dex108.htm) |
| 10.9 | [Guaranty Agreement, dated as of January 29, 2021, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](d543111dex109.htm) |
| 10.10 | [Amended and Restated Guaranty Agreement, dated as of May 11, 2022, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](d543111dex1010.htm) |
| 10.11 | [Second Amended and Restated Guaranty Agreement, dated as of September 26, 2024, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](d543111dex1011.htm) |
| 10.12 | [Amended and Restated Credit Agreement, dated as of May 11, 2022, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](d543111dex1012.htm) |
| 10.13 | [First Amendment to Amended and Restated Credit Agreement, dated as of November 30, 2023, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](d543111dex1013.htm) |
| 10.14 | [Second Amended and Restated Credit Agreement, dated September 26, 2024, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](d543111dex1014.htm) |
| 10.15\* | Registration Rights Agreement between Accelerant Holdings and the Common Shareholders, dated , 2025. |
| 10.16 | [Class A Convertible Preferred Shares Securities Purchase Agreement dated December 28, 2021.](d543111dex1016.htm) |
| 10.17 | [Class A Convertible Preferred Shares Securities Purchase Agreement dated January 7, 2022.](d543111dex1017.htm) |
| 10.18 | [Class A Convertible Preferred Shares Securities Purchase Agreement dated January 31, 2022.](d543111dex1018.htm) |
| 10.19 | [Class A Convertible Preferred Shares Securities Purchase Agreement dated March 30, 2022.](d543111dex1019.htm) |
| 10.20 | [Class B Convertible Preferred Shares Securities Purchase Agreement dated December 28, 2022.](d543111dex1020.htm) |
| 10.21 | [Class C Convertible Preferred Shares Securities Purchase Agreement dated December 18, 2024.](d543111dex1021.htm) |
| 10.22# | [Investment Management Agreement, dated as of April 20, 2021, by and among Accelerant Insurance Europe SA and Mercer Global Investments Europe Limited.](d543111dex1022.htm) |
| 10.23# | [Side Letter to the Investment Management Agreement with Mercer Global Investments Europe Limited.](d543111dex1023.htm) |

---

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 10.24# | [Investment Management Agreement (Germany), dated as of October 2, 2023, by and among Accelerant Insurance Europe SA and Wellington Management Europe GmbH.](d543111dex1024.htm) |
| 10.25# | [Investment Management Agreement, dated as of August 14, 2023, by and among Accelerant Re (Cayman) Ltd. and Wellington Management Company LLP.](d543111dex1025.htm) |
| 10.26# | [Engagement Letter, dated as of August 16, 2022, between Accelerant Re (Cayman) Ltd. and Mercer Global Investments Europe Limited.](d543111dex1026.htm) |
| 10.27# | [Engagement Letter, dated May 13, 2022, between Accelerant Re Ltd and Mercer Global Investments Europe Limited.](d543111dex1027.htm) |
| 10.28# | [Investment Management Agreement, dated as of July 20, 2022, by and among Accelerant Re Ltd and Mercer Global Investments Europe Limited.](d543111dex1028.htm) |
| 10.29# | [Engagement Letter, dated as of April 5, 2022, between Guarantee Protection Insurance Limited and Mercer Limited.](d543111dex1029.htm) |
| 10.30# | [Investment Management Agreement, dated as of May 31, 2022, by and among Guarantee Protection Insurance Limited and Mercer Limited.](d543111dex1030.htm) |
| 10.31# | [Investment Management Agreement (UK), dated as of October 2, 2023, by and among Accelerant Insurance UK Limited and Wellington Management International Limited.](d543111dex1031.htm) |
| 10.32# | [Investment Services Agreement, dated as of February 3, 2021, by and among Accelerant Specialty Insurance Company and Mercer Investments LLC.](d543111dex1032.htm) |
| 10.33# | [Second Amendment to Investment Services Agreement, dated as of January 21, 2022, by and among Accelerant Specialty Insurance Company, Accelerant National Insurance Company and Mercer Investments LLC.](d543111dex1033.htm) |
| 10.34# | [Investment Management Agreement, dated as of August 8, 2023, by and among Accelerant Specialty Insurance Company and Wellington Management Company LLP.](d543111dex1034.htm) |
| 10.35# | [Investment Management Agreement, dated as of August 8, 2023, by and among Accelerant National Insurance Company and Wellington Management Company LLP.](d543111dex1035.htm) |
| 10.36# | [Investment Management Agreement (UK), dated as of October 2, 2023, by and among Accelerant Insurance SA/NV UK Branch and Wellington Management International Limited.](d543111dex1036.htm) |
| 10.37# | [Investment Management Agreement, dated as of December 1, 2023 by and among Omega General Insurance Company and Wellington Management Canada.](d543111dex1037.htm) |
| 21.1 | [List of Subsidiaries of Accelerant Holdings.](d543111dex211.htm) |
| 23.1 | [Consent of PricewaterhouseCoopers LLP (Accelerant Holdings).](d543111dex231.htm) |
| 23.2 | [Consent of PricewaterhouseCoopers LLP (Accelerant Holdings LP).](d543111dex232.htm) |
| 23.3\* | Consent of Maples and Calder (Cayman) LLP (included in Exhibit 5.1). |
| 24.1 | [Power of Attorney (included in signature page).](#ii543111_500) |
| 99.1 | Form F-N (to be filed concurrently with this registration statement). |
| 107 | [Filing Fee Table.](d543111dexfilingfees.htm) |

---

# Portions of this exhibit have been redacted in accordance with Item 601(b)(10)(iv) of Regulation S-K.

+ Denotes management contract or compensatory plan or arrangement.

\* To be filed by amendment.

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##### [**Table of Contents**](#toc)
**Item 17.** **Undertakings** <br>

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in George Town, Cayman Islands, on this 30th day of June, 2025.

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| | |
|:---|:---|
| **Accelerant Holdings** | **Accelerant Holdings** |
| By: | /s/ Jeff Radke |
| Name: | Jeff Radke |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY** 

Each person whose signature appears below constitutes and appoints Jeff Radke and Jay Green, and each of them singly, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement and any and all additional Registration Statements pursuant to Rule 462(b) of the Securities Act, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the SEC, granting unto each said attorney-in-fact and agents full power and authority to do and perform each and every act in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or either of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Jeff Radke | Chief Executive Officer (Principal Executive Officer) and Director | June 30, 2025 |
|  Jeff Radke | Chief Executive Officer (Principal Executive Officer) and Director | June 30, 2025 |
| /s/ Jay Green | Chief Financial Officer (Principal Financial and Principal Accounting Officer) | June 30, 2025 |
|  Jay Green | Chief Financial Officer (Principal Financial and Principal Accounting Officer) | June 30, 2025 |
| /s/ Todd Boehly | Director | June 30, 2025 |
|  Todd Boehly | Director | June 30, 2025 |
| /s/ Samuel Gaynor | Director | June 30, 2025 |
|  Samuel Gaynor | Director | June 30, 2025 |
| /s/ Wendy Harrington | Director | June 30, 2025 |
|  Wendy Harrington | Director | June 30, 2025 |
| /s/ Nancy Hasley | Director | June 30, 2025 |
|  Nancy Hasley | Director | June 30, 2025 |
| /s/ Christopher Lee-Smith | Director | June 30, 2025 |
|  Christopher Lee-Smith | Director | June 30, 2025 |

---

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Paul Little | Director | June 30, 2025 |
|  Paul Little | Director | June 30, 2025 |
|  /s/ Karen Meriwether<br> Karen Meriwether | Director | June 30, 2025 |
|  /s/ Keoni Schwartz<br> Keoni Schwartz | Director | June 30, 2025 |
| /s/ Michael Searles | Director | June 30, 2025 |
|  Michael Searles | Director | June 30, 2025 |
| /s/ Jay Green | Authorized Representative in the United States | June 30, 2025 |
|  Jay Green | Authorized Representative in the United States | June 30, 2025 |

---

## Exhibit 3.1

**Exhibit 3.1**![LOGO](g543111dsp001.jpg)

MC-381680 Certificate Of Incorporation I, MELANIE E. RIVERS Assistant Registrar of Companies of the Cayman Islands DO HEREBY CERTIFY, pursuant to the Companies Act, that all requirements of the said Act in respect of registration were complied with by Accelerant Holdings an Exempted Company incorporated in the Cayman Islands with Limited Liability with effect from the 6th day of October Two Thousand Twenty-One Given under my hand and Seal at George Town in the Island of Grand Cayman this 6th day of October Two Thousand Twenty-One Assistant Registrar of Companies, Cayman Islands.

## Exhibit 3.2

**Exhibit 3.2** 

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**SECOND AMENDED AND RESTATED** 

**MEMORANDUM AND ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated 19 May, 2023)** 

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**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**SECOND AMENDED AND RESTATED** 

**MEMORANDUM OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated 19 May, 2023)** 

1. The name of the Company is Accelerant Holdings.

2. The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place within the Cayman Islands as the Directors may decide.

3. The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the laws of the Cayman Islands.

4. The liability of each Member is limited to the amount unpaid on such Member's shares.

5. The authorized share capital of the Company is US $330.6436, consisting of 3,306,436 shares of a nominal or par value of US$0.0001 each, of which: (i) 2,907,145 shares are designated as Common Shares of a nominal or par value of US$0.0001 each (the "**Common Shares**"), (ii) 215,583 shares are designated as Class A Convertible Preference Shares of a nominal or par value of US$0.0001 each (the "**Class A Convertible Preference Shares**"), (iii) 34,000 shares are designated as Class A-1 Convertible Preference Shares of a nominal or par value of US$0.0001 each (the "**Class A 1 Convertible Preference Shares**"), (iv) 149,707 shares are designated as Class B Convertible Preference Shares of a nominal or par value of US$0.0001 each (the "**Class B Convertible Preference Shares**") and (v) 1 share is designated as a Class B-1 Convertible Preference Shares of a nominal or par value of US$0.0001 each (the "**Class B-1 Convertible Preference Share**").

6. The Company has power to register by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

7. Capitalised terms that are not defined in this Amended and Restated Memorandum of Association bear the respective meanings given to them in the Amended and Restated Articles of Association of the Company.

------

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**SECOND AMENDED AND RESTATED** 

**ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated 18 May, 2023)** 

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| | |
|:---|:---|
| **1** | **Interpretation**  |

---

1.1 For purposes of these Articles, Table A in the First Schedule to the Statute does not apply and, unless there is something in the subject or context inconsistent therewith:

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| | |
|:---|:---|
| **"Accreted Liquidation Preference"** | means: (i) with respect to any Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as of any measurement date, 8% per annum on the Original Issue Price thereof, calculated from the date such Class A Convertible Preference Share or Class A-1 Convertible Preference Share became outstanding through (and including) the measurement date, and accruing and compounding quarterly, as adjusted in accordance with these Articles; and<br>(ii) with respect to any Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as of any measurement date, 16% per annum on the Original Issue Price thereof, calculated from the date such Class B Convertible Preference Share or Class B-1 Convertible Preference Share became outstanding through (and including) the measurement date, and accruing and compounding quarterly, as adjusted in accordance with these Articles. |
| **"AEOI"** | means: (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, |

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| | |
|:---|:---|
|  | regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv). |
| **"Affiliate"** | means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and, with respect to Persons that are individuals, also means the parents, grandparents, children, grandchildren and spouse of such individual, and trusts established for the benefit of any of the foregoing; *provided*, *however*, that Subsidiary Companies shall not be treated as "Affiliates" of the Company for purposes of these Articles. |
| **"Articles"** | means these second amended and restated articles of association of the Company. |
| **"Auditor"** | means the Person for the time being performing the duties of auditor of the Company (if any). |
| **"Business Day"** | means any day on which commercial banks in New York, New York and the Cayman Islands are open and conducting regular business. |
| **"Capital Contribution"** | means the amount of cash and the initial Fair Market Value of any property (other than cash) contributed or deemed contributed from time to time to the Company by a Member, which shall be reflected on the Register of Members. |
| **"Class A Convertible Preference Shares"** | means those Shares designated as Class A Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class A Convertible Preference Shares and the Class A-1 Convertible Preference Shares shall be identical in all respects. |

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| | |
|:---|:---|
| **"Class A-1 Convertible Preference Shares"** | means those Shares designated as Class A-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class A Convertible Preference Shares and the Class A-1 Convertible Preference Shares shall be identical in all respects |
| **"Class A Shareholder"** | means any holder of Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares. |
| **"Class B Convertible Preference Shares"** | means those Shares designated as Class B Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in Article 41.2 and the other rights and privileges set forth in these Articles and the Shareholders Agreement. |
| **"Class B-1 Convertible Preference Shares"** | means those Shares designated as Class B-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in Article 41.2 and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class B Convertible Preference Shares and the Class B-1 Convertible Preference Shares shall be identical in all respects. |
| **"Class B Preference Shareholder"** | means any holder of Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares. |
| **"Code"** | means the U.S. Internal Revenue Code of 1986. |
| **"Common Shares"** | means those Shares designated as Common Shares, and which shall represent common shares in the Company with the rights and privileges set forth in these Articles and the Shareholders Agreement. |
| **"Common Shareholder"** | means any holder of Common Shares. |

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| | |
|:---|:---|
| **"Company"** | means the above named company. |
| **"Credit <br>Agreement"** | means that certain Amended and Restated Credit Agreement, dated as of May 11, 2022, by and among the Company, each Guarantor (as defined therein) from time to time party thereto, each lender from time to time party thereto, and Bank of Montreal, as administrative agent, as amended or amended and restated from time to time. |
| **"Conversion <br>Rate"** | means (i) as of the date of these Articles, a rate of one Class A Convertible Preference Share, Class A-1 Convertible Preference Share, Class B Convertible Preference Share or Class B-1 Convertible Preference Share to one Common Share, and (ii) thereafter, such rate as may be adjusted pursuant to and in accordance with Article 18. |
| **"Directors"** | means the directors for the time being of the Company. |
| **"Dividend"** | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. |
| **"Electronic Record"** | has the same meaning as in the Electronic Transactions Act. |
| **"Electronic Transactions Act"** | means the Electronic Transactions Act (As Revised) of the Cayman Islands. |
| **"Equity Securities"** | means as to any Person that is a corporation, the share or shares of such Person's capital stock, including all classes of common, preferred, voting and nonvoting shares or capital stock, and, as to any Person that is not a corporation or an individual, the ownership, beneficial or limited partner interests in such Person, including, without limitation, the right to share in profits and losses, the right to receive distributions of cash and property, and the right to receive allocations of items of income, gain, loss, deduction and credit and similar items from such Person, whether or not such interests include voting or similar rights entitling the holder thereof to exercise control over such Person. |
| **"Fair Market Value"** | means, with respect to any securities or Persons, the fair market value thereof as determined by the Directors in good faith. |

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| | |
|:---|:---|
| **"FATCA"** | means Sections 1471 through 1474 of the Code, as of the date of these Articles, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto. |
| **"Indemnified Person"** | has the meaning set forth in Article 48.1. |
| **"Liquidation Transaction"** | means any of the following transactions: (a) a liquidation, dissolution or winding up, whether voluntary or involuntary, of the Company; (b) a consolidation or merger of the Company with any other Person; (c) a transaction or series of related transactions pursuant to which or as a result of which a single Person (or a Person together with its Affiliates) acquires or holds Equity Securities of the Company representing a majority of the outstanding Equity Securities of the Company (on a fully converted basis); or (d) a sale, license, lease or transfer of all or substantially all of the Company's assets. |
| **"Member"** | has the same meaning as in the Statute. |
| **"Memorandum"** | means the Second Amended and Restated Memorandum of Association of the Company, as amended or amended and restated from time to time. |
| **"Ordinary Resolution"** | means a resolution passed by Members holding a simple majority of the voting power of the Shares as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. |
| **"Original Issue Price"** | means (a), with respect to each Class A Convertible Preference Share and Class A-1 Convertible Preference Share, $1,000.00 or (b), with respect to each Class B Convertible Preference Share and Class B-1 Convertible Preference Share, $1,009.482. |
| **"Person"** | means any individual or any business, corporation, partnership, joint venture, limited liability company, unincorporated association, trust or other enterprise. |

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| | |
|:---|:---|
| **"Qualified Direct <br>Listing"** | means the Company's (or its successor's) listing of its Common Shares (or their successor Equity Securities) pursuant to an effective registration statement under the Securities Act; *provided*, that the Common Shares (or successor Equity Securities) are, or become, in connection with such listing, listed for trading on the New York Stock Exchange, the Nasdaq National Market or another applicable nationally recognized securities exchange. |
| **"Qualified Initial Public Offering"** | means the Company's (or its successor's) first underwritten offering to the public pursuant to an effective registration statement under the Securities Act that results in aggregate gross proceeds to the Company and any selling stockholders of not less than $100 million at a price per share valuation not less than the Original Issue Price plus the Accreted Liquidation Preference; *provided*, that the Common Shares (or successor equity interests) are, or become, in connection with such offering, listed for trading on the New York Stock Exchange, the Nasdaq National Market or another applicable nationally recognized securities exchange. |
| **"Qualified SPAC"** | means a merger or other similar transaction which results in the Company's (or its successor's) Equity Securities being listed or quoted for trading on the New York Stock Exchange or the Nasdaq National Market or otherwise subject to registration under the Securities Act which results in aggregate gross proceeds to the Company and any selling stockholders of not less than $100 million at a price per share valuation not less than the Original Issue Price plus the Accreted Liquidation Preference. |
| **"Register of Members"** | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. |
| **"Registered Office"** | means the registered office of the Company as determined by the Directors from time to time. |
| **"Required Class A Shareholders"** | means the Class A Shareholders that collectively hold more than fifty percent (50%) of the issued and outstanding Class A Convertible Preference Shares and Class A-1 Convertible<br>Preference Shares. |
| **"Required Class B <br>Preference <br>Shareholders"** | means the Class B Preference Shareholders that collectively hold more than fifty percent (50%) of the issued and outstanding Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, provided, that with respect to Articles 11.1(b)(i) (solely with respect to this proviso), (ii) and (iii), seventy percent (70%) shall be substituted for fifty percent (50%). |

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| | |
|:---|:---|
| **"Seal"** | means the common seal of the Company and includes every duplicate seal. |
| **"Securities Act"** | means the U.S. Securities Act of 1933. |
| **"Share"** | means a Common Share, a Class A Convertible Preference Share, a Class A-1 Convertible Preference Share, a Class B Convertible Preference Share or a Class B-1 Convertible Preference Share. |
| **"Shareholder"** | means the Common Shareholders, the Class A Shareholders and the Class B Preference Shareholders. |
| **"Shareholders Agreement"** | means the Amended and Restated Shareholders Agreement of the Company, as amended or amended and restated from time to time. |
| **"Special Resolution"** | has the same meaning as in the Statute, and includes a unanimous written resolution. |
| **"Statute"** | means the Companies Act (As Revised) of the Cayman Islands. |
| **"Subsidiary Company"** | means any entity in which, directly or indirectly, a Subsidiary Investment is made, and continues to be held, by the Company. |
| **"Subsidiary <br>Investments"** | means all investments by the Company. |
| **"Treasury Share"** | means a Share held in the name of the Company as a treasury share in accordance with the Statute. |
| **"Winding Up Event"** | has the meaning set forth in Article 47.1. |

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1.2 In the Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "written" and "in writing" include all modes of representing or reproducing words in
visible form, including in the form of an Electronic Record;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "shall" shall be construed as imperative and "may" shall be construed as permissive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) references to provisions of any law or regulation shall be construed as references to those provisions as
amended, modified, re-enacted or replaced, and shall include implementing rules or regulations (to the extent applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any phrase introduced by the terms "including", "include", "in particular" or any
similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the term "and/or" is used herein to mean both "and" as well as "or." The use of
"and/or" in certain contexts in no respects qualifies or modifies the use of the terms "and" or "or" in others. The term "or" shall not be interpreted to be exclusive and the term "and" shall not be
interpreted to require the conjunctive (in each case, unless the context otherwise requires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) headings are inserted for reference only and shall be ignored in construing the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any requirements as to delivery under the Articles include delivery in the form of an Electronic Record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any requirements as to execution or signature under the Articles including the execution of the Articles
themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sections 8 and 19(3) of the Electronic Transactions Act shall not apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the term "clear days" in relation to the period of a notice means that period excluding the day when
the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the term "holder" in relation to a Share means a Person whose name is entered in the Register of
Members as the holder of such Share.

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| | |
|:---|:---|
| **2** | **Commencement of Business**  |

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2.1 The business of the Company commenced after incorporation of the Company.

2.2 The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about
the formation and establishment of the Company, including the expenses of registration and expenses associated with the adoption of these Articles and the Shareholders Agreement.

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| | |
|:---|:---|
| **3** | **Issue of Shares**  |

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3.1 Subject to the provisions, if any, in the Memorandum (including <u>Article 11.1</u>) (and to any direction that
may be given by the Company in general meeting) and without prejudice to any rights attached to any existing Shares (including the rights set forth in <u>Article 11.1</u>), the Directors may allot, issue, grant options over or otherwise dispose of
Shares (including fractions of a Share) with or without preferred, deferred or other rights or restrictions, whether in regard to a Dividend or other distribution, voting, return of capital or otherwise and to such Persons, at such times and on such
other terms as they think proper, and may also (subject to the Statute and these Articles) vary such rights provided that the Directors shall not issue shares if such action would be contrary to or inconsistent with the terms of the Shareholders
Agreement.

3.2 The Company shall not issue Shares to bearer.

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| | |
|:---|:---|
| **4** | **Currency**  |

---

The reporting currency of the Company shall be United States dollars. All currency references herein shall be to United States dollars unless otherwise stated. No Member shall be entitled to receive cash distributions from the Company other than in United States dollars. In the event that it is necessary or convenient for Company purposes to apply an exchange rate between different currencies, the exchange rate shall be determined by the Directors using such publicly available indices as they shall select in their reasonable discretion.

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| | |
|:---|:---|
| **5** | **Register of Members**  |

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5.1 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute.

5.2 The Directors may determine that the Company shall maintain one or more branch registers of Members in
accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time.

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| | |
|:---|:---|
| **6** | **Closing Register of Members or Fixing Record Date**  |

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6.1 For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any
adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may provide that the Register of Members shall be closed for
transfers for a stated period which shall not in any case exceed 40 days.

6.2 In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date
as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other
distribution, or in order to make a determination of Members for any other purpose.

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6.3 If the Register of Members is not so closed and no record date is fixed for the determination of Members
entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to
pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article,
such determination shall apply to any adjournment thereof.

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| | |
|:---|:---|
| **7** | **Certificates for Shares**  |

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7.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall
be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other Persons authorised by the Directors. The Directors may authorise
certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates
surrendered to the Company for transfer shall be cancelled and subject to the Articles no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled.

7.2 The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one
Person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them.

7.3 If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to
evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate.

7.4 Every share certificate sent in accordance with the Articles will be sent at the risk of the Member or other
Person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery.

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| | |
|:---|:---|
| **8** | **Transfer of Shares**  |

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8.1 Shares are transferable subject to the approval of the Directors by resolution who may, in their absolute
discretion, decline to register any transfer of Shares without giving any reason provided that (i) the Directors shall not decline to register any transfer of Shares made in accordance with the terms of the Shareholders Agreement and these
Articles (including <u>Article 17</u>), and (ii) shall decline to register any transfer of shares not so made. If the Directors refuse to register a transfer they shall notify the transferee within two months of such refusal.

8.2 The instrument of transfer of any Share shall be in writing and shall be executed by or on behalf of the
transferor (and if the Directors so require, signed by or on behalf of the transferee). The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members.

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| | |
|:---|:---|
| **9** | **Redemption, Repurchase and Surrender of Shares**  |

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9.1 Subject to the provisions of the Statute and these Articles (including <u>Article 11.1</u>), the Company may
issue Shares that are to be redeemed or are liable to be redeemed at the option of the Common Shareholders owning a majority of the voting power of the then outstanding Common Shares or the Company. The redemption of such Shares shall be effected in
such manner and upon such other terms as the Company may, by Special Resolution, determine before the issue of the Shares.

9.2 Subject to the provisions of the Statute and these Articles (including <u>Article 11.1</u>), the Company may
purchase its own Shares (including any redeemable Shares) in such manner and on such other terms as the Directors may agree with the relevant Member.

9.3 The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner
permitted by the Statute, including out of capital.

9.4 The Directors may accept the surrender for no consideration of any fully paid Share.

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| | |
|:---|:---|
| **10** | **Treasury Shares**  |

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10.1 The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall
be held as a Treasury Share.

10.2 The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think
proper (including, without limitation, for nil consideration).

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| | |
|:---|:---|
| **11** | **Voting and Approval Rights of Shares**  |

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11.1 Notwithstanding <u>Article 11.2</u>, prior to the occurrence of a Qualified Initial Public Offering, Qualified
Direct Listing or Qualified SPAC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for so long as any Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares remain issued and outstanding, the Company shall not, and to the extent applicable, shall not permit the Board, any Subsidiary Company or any board of any
Subsidiary to, take any of the following actions, without having received the consent or vote of the Required Class A Shareholders and any such act or transaction entered into without such consent or vote shall be null and void ab initio and of
no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, waive or repeal any provision of the Memorandum or these Articles in a manner adverse to the
rights, preferences and privileges of the Class A Convertible Preference Shares or the Class A1 Convertible Preference Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, authorize, incur or issue (including through reclassification, alteration, amendment or otherwise) any
Equity Securities in the Company having rights, preferences or privileges senior to or pari passu with the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares (it being
understood and agreed that notwithstanding that the Common Shares have pari passu voting rights with the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, the consent
required by this <u>Section</u> <u>11.1(a)(ii)</u> does not apply to issuances of Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) authorize, incur or issue any debt or debt securities if the Company's 10 consolidated aggregate debt
would exceed $200,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) purchase or redeem or pay any dividend on any Equity Security junior to the Class A Convertible Preference
Shares or Class A-1 Convertible Preference Shares other than in the manner contemplated by Article 41;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) effect a Liquidation Transaction at a per Share valuation that would result in the Class A Shareholders
receiving an amount per Class A Convertible Preference Share or Class A-1 Convertible Preference Share of less than the sum of (A) the Original Issue Price plus (B) the Accreted Liquidation
Preference; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) increase or decrease the size of the board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for so long as any Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares remain issued and outstanding, the Company shall not, and to the extent applicable, shall not permit the Board, any Subsidiary Company or any board of any
Subsidiary to, take any of the following actions, without having received the consent or vote of the Required Class B Preference Shareholders and any such act or transaction entered into without such consent or vote shall be null and void ab
initio and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, waive or repeal any provision of the Memorandum or these Articles in a manner disproportionately
adverse to the rights, preferences and privileges of the Class B Convertible Preference Shares or the Class B-1 Convertible Preference Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, authorize, incur or issue (including through reclassification, alteration, amendment or otherwise) any
Equity Securities in the Company having rights, preferences or privileges senior to or pari passu with the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares (it being
understood and agreed that notwithstanding that the Common Shares have pari passu voting rights with the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, the consent
required by this <u>Section</u> <u>11.1(b)(ii)</u> does not apply to issuances of Common Shares);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) authorize, incur or issue any debt or debt securities if the ratio of Consolidated Total Debt (as defined in
the Credit Agreement) to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) would, as a result of such authorization, incurrence or issuance, exceed 4.5x;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) purchase or redeem or pay any dividend on any Equity Security junior to the Class B Convertible Preference
Shares and Class B-1 Convertible Preference Shares other than in the manner contemplated by <u>Article 41</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) effect a Liquidation Transaction at a per Share valuation that would result in the Class B Preference
Shareholders receiving an amount per Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, of less than the sum of (A) the Original Issue Price plus
(B) the Accreted Liquidation Preference; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) increase or decrease the size of the board of Directors.

11.2 As to any matter which shall be subject to a vote of the Shareholders or on which the Class A Shareholders
or Class B Preference Shareholders, as applicable, shall be entitled to vote or consent under applicable law or <u>Article 11.1</u>, each Class A Shareholder or Class B Preference Shareholder, as applicable, shall be entitled to that
number of votes with respect to its Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, as applicable, equal to the number of Common Shares into which such Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares would then convert at the
then-applicable Conversion Rate; provided, however, that the Class A-1 Convertible Preference Shares and the Class B-1 Convertible Preference Shares shall have
no right to vote with respect to the election of Directors. As to any matter which shall be subject to a vote of the Shareholders or on which the Common Shareholders shall be entitled to vote or consent under applicable law, each Common Shareholder
shall be entitled to one vote per Common Share held by such Common Shareholder.

11.3 For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares
as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.

11.4 The rights conferred upon the holders of Shares of any class issued with preferred or other rights shall not,
unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith.

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|:---|:---|
| **12** | **Variation of Rights**  |

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12.1 Subject to <u>Article 11.1</u>, if at any time the share capital of the Company is divided into different
classes of Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the
issued Shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two
thirds of the issued Shares of that class, or with the approval of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the
Directors reserve the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Articles relating to
general meetings shall apply mutatis mutandis, except that the necessary quorum shall be one person holding or representing by proxy at least one third of the issued Shares of the class and that any holder of Shares of the class present in person or
by proxy may demand a poll.

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| | |
|:---|:---|
| **13** | **Non Recognition of Trusts**  |

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The Company shall not be bound by or compelled to recognise in any way (even when notified) any equitable, contingent, future or partial interest in any Share, or (except only as is otherwise provided by the Articles or the Statute) any other rights in respect of any Share other than an absolute right to the entirety thereof in the holder.

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| | |
|:---|:---|
| **14** | **Lien on Shares**  |

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14.1 The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or
his estate, either alone or jointly with any other Person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such
Share shall operate as a waiver of the Company's lien thereon. The Company's lien on a Share shall also extend to any amount payable in respect of that Share.

14.2 The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if
a sum in respect of which the lien exists is presently payable, and is not paid within fourteen clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the Person entitled to it in consequence of
the death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold.

14.3 To give effect to any such sale, the Directors may authorise any Person to execute an instrument of transfer of
the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or his nominee shall be registered as the holder of the Shares comprised in any such transfer, and he shall not be bound to see to the application of the
purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company's power of sale under the Articles.

14.4 The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in
respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the Person entitled to the Shares at the date of the sale.

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|:---|:---|
| **15** | **Call on Shares**  |

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15.1 Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in
respect of any monies unpaid on their Shares (whether in respect of par value or premium), and each Member shall (subject to receiving at least fourteen clear days' notice specifying the time or times of payment) pay to the Company at the time
or times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A Person upon whom a call is made shall remain liable
for calls made upon him notwithstanding the subsequent transfer of the Shares in respect of which the call was made.

15.2 A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call
was passed.

15.3 The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.

15.4 If a call remains unpaid after it has become due and payable, the Person from whom it is due shall pay interest
on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part.

15.5 An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the
par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of the Articles shall apply as if that amount had become due and payable by virtue of a call.

15.6 The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the
interest to be paid.

15.7 The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of
the monies uncalled and unpaid upon any Shares held by him, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance.

15.8 No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a
Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable.

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|:---|:---|
| **16** | **Forfeiture of Shares**  |

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16.1 If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to
the Person from whom it is due not less than fourteen clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice
shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited.

16.2 If the notice is not complied with, any Share in respect of which it was given may, before the payment required
by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture.

16.3 A forfeited Share may be sold, re-allotted or otherwise disposed of on
such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the
purposes of its disposal a forfeited Share is to be transferred to any Person the Directors may authorise some Person to execute an instrument of transfer of the Share in favour of that Person.

16.4 A Person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall
surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by him to the Company in respect of those Shares together with
interest at such rate as the Directors may determine, but his liability shall cease if and when the Company shall have received payment in full of all monies due and payable by him in respect of those Shares.

16.5 A certificate in writing under the hand of one Director or officer of the Company that a Share has been
forfeited on a specified date shall be conclusive evidence of the facts stated in it as against all Persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title
to the Share and the Person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Share be affected by any irregularity or invalidity in the
proceedings in reference to the forfeiture, sale or disposal of the Share.

16.6 The provisions of the Articles as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a
call duly made and notified.

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|:---|:---|
| **17** | **Transmission of Shares**  |

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17.1 If a Member dies the survivor or survivors (where he was a joint holder) or his legal personal representatives
(where he was a sole holder), shall be the only Persons recognised by the Company as having any title to his Shares. The estate of a deceased Member is not thereby released from any liability in respect of any Share, for which he was a joint or sole
holder.

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17.2 Any Person becoming entitled to a Share in consequence of the death or bankruptcy or liquidation or dissolution
of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by him to the Company, either to become the holder of such Share or to have some Person
nominated by him registered as the holder of such Share. If he elects to have another Person registered as the holder of such Share he shall sign an instrument of transfer of that Share to that Person. The Directors shall, in either case, have the
same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution, as the case may be.

17.3 A Person becoming entitled to a Share by reason of the death or bankruptcy or liquidation or dissolution of a
Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which it would be entitled if it were the holder of such Share. However, it shall not, before becoming a Member in
respect of a Share, be entitled in respect of such Share to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such Person to elect either to be
registered itself or to have some Person nominated by it be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of
the Share by the relevant Member before its death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within ninety days of being received or deemed to be received
(as determined pursuant to the Articles) the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with.

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|:---|:---|
| **18** | **Conversion of Shares; Adjustments**  |

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18.1 In connection with any Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, the
Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares and Class B-1 Convertible
Preference Shares issued and outstanding immediately prior to such Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC shall be converted, automatically and without further action by any Person, into Common Shares at the
then-applicable Conversion Rate. Any such conversion shall be effected by the compulsory redemption by the Company of such Class A Convertible Preference Shares, Class A-1 Convertible Preference
Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares at par, and the application of such redemption proceeds to the paying up of newly issued Common Shares.

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18.2 In the event the outstanding Common Shares shall be subdivided (by share split, by payment of a share dividend,
a bonus issue or otherwise) into a greater number of Common Shares, the Conversion Rate in effect immediately prior to such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately decreased. In the event the
outstanding Common Shares shall be consolidated (by reclassification or otherwise) into a lesser number of Common Shares, the Conversion Rate in effect immediately prior to such combination shall, concurrently with the effectiveness of such
combination, be proportionately increased.

18.3 In the event the outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares shall be subdivided (by share
split, by payment of a share dividend, a bonus issue or otherwise), into a greater number of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible
Preference Shares or Class B-1 Convertible Preference Shares, respectively, the Accreted Liquidation Preference and the Conversion Rate in effect immediately prior to such subdivision shall, concurrently
with the effectiveness of such subdivision, be proportionately decreased. In the event the outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B
Convertible Preference Shares or Class B-1 Convertible Preference Shares shall be consolidated (by reclassification or otherwise) into a lesser number of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, respectively, the Accreted
Liquidation Preference and the Conversion Rate in effect immediately prior to such combination shall, concurrently with the effectiveness of such combination, be proportionately increased.

18.4 If the Common Shares issuable upon conversion of the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares shall be changed into the same or a
different number of shares of any other class or classes of Equity Securities, whether by capital reorganization, reclassification or otherwise (other than a subdivision or consolidation of shares provided for above), then, in any such event, in
lieu of the number of Common Shares which the Class A Shareholders or Class B Preference Shareholders, as applicable, would otherwise have been entitled to receive, each Class A Shareholder or Class B Preference Shareholder, as
applicable, shall have the right thereafter to convert such Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, as applicable, into a number of shares of such other class or classes of Equity Securities which a holder of the number of Common Shares deliverable upon conversion of
such Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible
Preference Shares immediately before that change would have been entitled to receive in such reorganization or reclassification, all subject to further adjustment as provided herein with respect to such other shares.

18.5 Upon the occurrence of each adjustment or readjustment of the Conversion Rate pursuant to this <u>Article 18</u>, the Company shall, upon the written request at any time of any Class A Shareholder or Class B Preference Shareholder, as applicable, furnish or cause to be furnished to such Person a certificate setting forth (a) such
adjustments and readjustments, (b) the applicable Conversion Rate at the time in effect and (c) the number of Common Shares and the amount, if any, of other property which at the time would be received upon the conversion of Class A
Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares.

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18.6 The Company shall at all times reserve and keep available out of its authorized but unissued Common Shares
solely for the purpose of effecting the conversion of the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, such number of its Common Shares as shall from time to time be sufficient to effect the conversion of all then outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares; and, if at any time the number of
authorized but unissued Common Shares shall not be sufficient to effect the conversion of all then outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares,
Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, the Company shall seek an Ordinary Resolution in accordance with <u>Article 19.1</u> to increase its authorized but
unissued Common Shares to such number of shares as shall be sufficient for such purpose.

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|:---|:---|
| **19** | **Amendments of Memorandum and Articles of Association and Alteration of Capital**  |

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19.1 Subject to <u>Article 11.1 and Article 19.4</u>, the Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights,
priorities and privileges annexed thereto, as the Company in general meeting may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger 17 amount than its existing
Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its paid-up Shares into stock, and reconvert that
stock into paid-up Shares of any denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into
Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to
be taken by any Person and diminish the amount of its share capital by the amount of the Shares so cancelled.

19.2 All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same
provisions of the Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital.

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19.3 Subject to the provisions of the Statute and the provisions of these Articles (including <u>Article 11.1 and Article 19.4</u>) as regards the matters to be dealt with by Ordinary Resolution, the Company may by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) alter or add to the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce its share capital or any capital redemption reserve fund.

19.4 The Company shall not adopt any amendment, alteration, waiver or repeal of all or any portion of these Articles
that has a disproportionate and adverse effect on any Shareholder relative to the other holders of the same class of Shares without the prior written consent of such Shareholder.

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| | |
|:---|:---|
| **20** | **Offices and Places of Business**  |

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Subject to the provisions of the Statute, the Company may by resolution of the Directors change the location of its Registered Office. The Company may, in addition to its Registered Office, maintain such other offices or places of business as the Directors determine.

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|:---|:---|
| **21** | **General Meetings**  |

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21.1 All general meetings other than annual general meetings shall be called extraordinary general meetings.

21.2 The Company may, but shall not (unless required by the Statute) be obliged to, in each year hold a general
meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. Any annual general meeting shall be held at such time and place as the Directors shall appoint and if no other time and place is prescribed by
them, it shall be held at the Registered Office on the second Wednesday in December of each year at ten o'clock in the morning. At these meetings the report of the Directors (if any) shall be presented.

21.3 The Directors may call general meetings, and they shall on a Members' requisition forthwith proceed to
convene an extraordinary general meeting of the Company.

21.4 A Members' requisition is a requisition of Members holding at the date of deposit of the requisition not
less than ten percent of the voting power of the outstanding Shares.

21.5 The Members' requisition must state the objects of the meeting and must be signed by the requisitionists
and deposited at the Registered Office, and may consist of several documents in like form each signed by one or more requisitionists.

21.6 If there are no Directors as at the date of the deposit of the Members' requisition or if the Directors do
not within twenty-one days from the date of the deposit of the Members' requisition duly proceed to convene a general meeting to be held within a further twenty-one days, the requisitionists, or any of them representing more than one-half of the total voting rights of all of the requisitionists, may themselves convene a general meeting, but any meeting so convened shall
be held no later than the day which falls three months after the expiration of the said twenty-one day period.

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21.7 A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly as
possible as that in which general meetings are to be convened by Directors.

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|:---|:---|
| **22** | **Notice of General Meetings**  |

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22.1 At least five Business Days' notice shall be given of any general meeting. Every notice shall specify the
place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be prescribed by the Company,
provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of the Articles regarding general meetings have been complied with, be deemed to have been
duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all of the Members entitled to attend and vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by Members representing not less than ninety five percent of
the aggregate voting power of the outstanding Shares.

22.2 The accidental omission to give notice of a general meeting to, or the non receipt of notice of a general
meeting by, any Person entitled to receive such notice shall not invalidate the proceedings of that general meeting.

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|:---|:---|
| **23** | **Proceedings at General Meetings**  |

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23.1 No business shall be transacted at any general meeting unless a quorum is present. Members holding Shares
representing a majority of the voting power of the outstanding Shares entitled to vote at such general meeting, represented in person or by proxy, shall be a quorum.

23.2 A Person may participate at a general meeting by conference telephone or other communications equipment by
means of which all the Persons participating in the meeting can communicate with each other. Participation by a Person in a general meeting in this manner is treated as presence in Person at that meeting.

23.3 A Special Resolution in writing (in one or more counterparts) signed by or on behalf of all of the Members for
the time being entitled to receive notice of and to attend and vote at general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) shall be as valid
and effective as if the resolution had been passed at a general meeting of the Company duly convened and held. An Ordinary Resolution in writing (in one or more counterparts) signed by or on behalf of such number of the Members for the time being
entitled to receive notice of and to attend and vote at

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general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) as would be required to pass such resolution at a general meeting of the Company duly convened and held at which all Members for the time being entitled to receive notice of and to attend and vote at general meetings were in attendance, shall be as valid and effective as if the resolution had been passed at a general meeting of the Company duly convened and held.

23.4 If a quorum is not present within half an hour from the time appointed for the meeting to commence or if during
such a meeting a quorum ceases to be present, the meeting, if convened upon a Members' requisition, shall be dissolved and in any other case it shall stand adjourned to the same day in the next week at the same time and/or place or to such
other day, time and/or place as the Directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting to commence, the Members present shall be a quorum.

23.5 The Directors may, at any time prior to the time appointed for the meeting to commence, appoint any Person to
act as chairman of a general meeting of the Company or, if the Directors do not make any such appointment, the chairman, if any, of the board of Directors shall preside as chairman at such general meeting. If there is no such chairman, or if he
shall not be present within fifteen minutes after the time appointed for the meeting to commence, or is unwilling to act, the Directors present shall elect one of their number to be chairman of the meeting.

23.6 If no Director is willing to act as chairman or if no Director is present within fifteen minutes after the time
appointed for the meeting to commence, the Members present shall choose one of their number to be chairman of the meeting.

23.7 The chairman may, with the consent of a meeting at which a quorum is present (and shall if so directed by the
meeting) adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

23.8 When a general meeting is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in
the case of an original meeting. Otherwise it shall not be necessary to give any such notice of an adjourned meeting.

23.9 A resolution put to the vote of the meeting shall be decided on a show of hands unless before, or on the
declaration of the result of, the show of hands, the chairman demands a poll, or any other Member or Members collectively present in person or by proxy (or in the case of a corporation or other non-natural person, by its duly authorised representative or proxy) and holding at least ten percent of the voting power of the outstanding Shares giving a right to attend and vote at the meeting demand a poll.

23.10 Unless a poll is duly demanded and the demand is not withdrawn a declaration by the chairman that a resolution
has been carried or carried unanimously, or by a particular majority, or lost or not carried by a particular majority, an entry to that effect in the minutes of the proceedings of the meeting shall be conclusive evidence of that fact without proof
of the number or proportion of the votes recorded in favour of or against such resolution.

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23.11 The demand for a poll may be withdrawn.

23.12 Except on a poll demanded on the election of a chairman or on a question of adjournment, a poll shall be taken
as the chairman directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded.

23.13 A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith. A poll
demanded on any other question shall be taken at such date, time and place as the chairman of the general meeting directs, and any business other than that upon which a poll has been demanded or is contingent thereon may proceed pending the taking
of the poll.

23.14 In the case of an equality of votes, whether on a show of hands or on a poll, the chairman shall be entitled to
a second or casting vote.

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|:---|:---|
| **24** | **Votes of Members**  |

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24.1 Subject to any rights or restrictions attached to any Shares, with respect to any matter to which any Member is
entitled to vote, on a show of hands every such Member who (being an individual) is present in person or by proxy or, if a corporation or other non-natural person is present by its duly authorised
representative or by proxy, shall have the number of votes calculated in accordance with <u>Article 11.2</u>.

24.2 Any matter brought before any meeting of the Members shall be decided by the affirmative vote of Members
holding a majority of the voting power of the Company's capital stock present in person or represented by proxy at the meeting and entitled to vote on such matter, voting as a single class, unless the matter is one upon which, by express
provision of law, the Memorandum or these Articles (including <u>Article 11.1</u>), a different vote is required, in which case such express provision shall govern and control the decision of such matter.

24.3 In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy
(or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall
be determined by the order in which the names of the holders stand in the Register of Members.

24.4 A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in
lunacy, may vote, whether on a show of hands or on a poll, by his committee, receiver, curator bonis or other Person on such Member's behalf appointed by that court, and any such committee, receiver, curator bonis or other Person may vote by
proxy.

24.5 No Person shall be entitled to vote at any general meeting unless he is registered as a Member on the record
date for such meeting nor unless all calls or other monies then payable by him in respect of Shares have been paid.

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24.6 No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned
general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairman whose decision shall be
final and conclusive.

24.7 On a poll or on a show of hands votes may be cast either personally or by proxy (or in the case of a
corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a
meeting. Where a Member appoints more than one proxy the instrument of proxy shall state which proxy is entitled to vote on a show of hands and shall specify the number of Shares in respect of which each proxy is entitled to exercise the related
votes.

24.8 On a poll, a Member holding more than one Share need not cast the votes in respect of his Shares in the same
way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing him, a proxy
appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which he is appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which he is
appointed.

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| | |
|:---|:---|
| **25** | **Proxies**  |

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25.1 The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or
of his attorney duly authorised in writing, or, if the appointor is a corporation or other non natural person, under the hand of its duly authorised representative. A proxy need not be a Member.

25.2 The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent
out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy
relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the
instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the Person named in the instrument proposes to vote.

25.3 The chairman may in any event at his discretion declare that an instrument of proxy shall be deemed to have
been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairman, shall be invalid.

25.4 The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may
approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll.

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25.5 Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous
death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or
transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.

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| | |
|:---|:---|
| **26** | **Corporate Members**  |

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Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such Person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the Person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as the corporation could exercise if it were an individual Member.

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| | |
|:---|:---|
| **27** | **Shares that May Not be Voted**  |

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Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding Shares at any given time.

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| | |
|:---|:---|
| **28** | **Directors**  |

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There shall be a board of Directors consisting of ten people (exclusive of alternate Directors); *provided*, *however*, that the Company may by Ordinary Resolution increase or reduce the limits in the number of Directors. The Directors of the Company shall be determined in writing by, or appointed by a resolution of, the Common Shareholders holding a majority of the then outstanding Common Shares.

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| | |
|:---|:---|
| **29** | **Powers of Directors**  |

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29.1 Subject to the provisions of the Statute, the Memorandum and the Articles, the Shareholders Agreement and any
directions given by Special Resolution, the business of the Company shall be managed by the Directors who may exercise all the powers of the Company. No alteration of the Memorandum, Articles or Shareholders Agreement and no such direction shall
invalidate any prior act of the Directors which would have been valid if that alteration had not been made or that direction had not been given. A duly convened meeting of Directors at which a quorum is present may exercise all powers exercisable by
the Directors.

29.2 All cheques, promissory notes, drafts, bills of exchange and other negotiable or transferable instruments and
all receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed as the case may be in such manner as the Directors shall determine by resolution.

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29.3 The Directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any Director
who has held any other salaried office or place of profit with the Company or to his widow or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

29.4 The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its
undertaking, property and assets (present and future) and uncalled capital or any part thereof and to issue debentures, debenture stock, mortgages, bonds and other such securities whether outright or as security for any debt, liability or obligation
of the Company or of any third party.

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| | |
|:---|:---|
| **30** | **Appointment and Removal of Directors**  |

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30.1 Subject to the provisions of the Shareholders Agreement, the Company may by Ordinary Resolution appoint any
person to be a Director or may by Ordinary Resolution remove any Director.

30.2 Subject to the provisions of the Shareholders Agreement, the Directors may appoint any person to be a Director,
either to fill a vacancy or as an additional Director provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with the Articles as the maximum number of Directors, provided that the
Director shall only make such appointment if permitted by the terms of the Shareholders Agreement.

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| | |
|:---|:---|
| **31** | **Vacation of Office of Director**  |

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The office of a Director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Director gives notice in writing to the Company that he resigns the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Director absents himself (for the avoidance of doubt, without being represented by proxy or an alternate
Director appointed by him) from three consecutive meetings of the Directors without special leave of absence from the Directors, and the Directors pass a resolution that he has by reason of such absence vacated office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Director dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Director is found to be or becomes of unsound mind; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to the provisions of the Shareholders Agreement, all of the other Directors (being not less than two in
number) determine that he should be removed as a Director, either by a resolution passed by all of the other Directors at a meeting of the Directors duly convened and held in accordance with the Articles or by a resolution in writing signed by all
of the other Directors.

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| | |
|:---|:---|
| **32** | **Proceedings of Directors**  |

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32.1 At all meetings of the board of Directors, a majority of Directors shall constitute a quorum for the
transaction of business, and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Directors, unless the matter is one upon which, by express provision of law, the Memorandum or these
Articles (including <u>Article 11.1</u>), a different vote is required, in which case such express provision shall govern and control the decision of such matter. If a quorum shall not be present at any meeting of the board of Directors, the
Directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting of the time and place of the adjourned meeting, until a quorum shall be present. A quorum, once established, shall not be
broken by the withdrawal of enough Directors to leave less than a quorum.

32.2 Subject to the provisions of the Articles, the Directors may regulate their proceedings as they think fit.
Questions arising at any meeting shall be decided by a majority of votes.

32.3 A person may participate in a meeting of the Directors or any committee of Directors by conference telephone or
other communications equipment by means of which all the persons participating in the meeting can communicate with each other at the same time. Participation by a person in a meeting in this manner is treated as presence in person at that meeting.
Unless otherwise determined by the Directors the meeting shall be deemed to be held at the place where the chairman is located at the start of the meeting.

32.4 A resolution in writing (in one or more counterparts) signed by all the Directors or all the members of a
committee of the Directors or, in the case of a resolution in writing relating to the removal of any Director or the vacation of office by any Director, all of the Directors other than the Director who is the subject of such resolution (an alternate
Director being entitled to sign such a resolution on behalf of his appointor and if such alternate Director is also a Director, being entitled to sign such resolution both on behalf of his appointer and in his capacity as a Director) shall be as
valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as the case may be, duly convened and held.

32.5 A Director or alternate Director may, or other officer of the Company on the direction of a Director or
alternate Director shall, call a meeting of the Directors by at least two days' notice in writing to every Director and alternate Director which notice shall set forth the general nature of the business to be considered unless notice is waived
by all the Directors (or their alternates) either at, before or after the meeting is held. To any such notice of a meeting of the Directors all the provisions of the Articles relating to the giving of notices by the Company to the Members shall
apply *mutatis mutandis.* 

32.6 The continuing Directors (or a sole continuing Director, as the case may be) may act notwithstanding any
vacancy in their body, but if and so long as their number is reduced below the number fixed by or pursuant to the Articles as the necessary quorum of Directors the continuing Directors or Director may act for the purpose of increasing the number of
Directors to be equal to such fixed number, or of summoning a general meeting of the Company, but for no other purpose.

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32.7 The Directors may elect a chairman of their board and determine the period for which he is to hold office; but
if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for the meeting to commence, the Directors present may choose one of their number to be chairman of the meeting.

32.8 All acts done by any meeting of the Directors or of a committee of the Directors (including any person acting
as an alternate Director) shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any Director or alternate Director, and/or that they or any of them were disqualified, and/or had vacated their office
and/or were not entitled to vote, be as valid as if every such person had been duly appointed and/or not disqualified to be a Director or alternate Director and/or had not vacated their office and/or had been entitled to vote, as the case may be.

32.9 A Director but not an alternate Director may be represented at any meetings of the board of Directors by a
proxy appointed in writing by him. The proxy shall count towards the quorum and the vote of the proxy shall for all purposes be deemed to be that of the appointing Director.

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| | |
|:---|:---|
| **33** | **Presumption of Assent**  |

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A Director or alternate Director who is present at a meeting of the board of Directors at which action on any Company matter is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment thereof or shall forward such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director or alternate Director who voted in favour of such action.

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| | |
|:---|:---|
| **34** | **Directors' Interests**  |

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34.1 A Director or alternate Director may hold any other office or place of profit under the Company (other than the
office of Auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine.

34.2 A Director or alternate Director may act by himself or by, through or on behalf of his firm in a professional
capacity for the Company and he or his firm shall be entitled to remuneration for professional services as if he were not a Director or alternate Director.

34.3 A Director or alternate Director may be or become a director or other officer of or otherwise interested in any
company promoted by the Company or in which the Company may be interested as a shareholder, a contracting party or otherwise, and no such Director or alternate Director shall be accountable to the Company for any remuneration or other benefits
received by him as a director or officer of, or from his interest in, such other company.

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34.4 No person shall be disqualified from the office of Director or alternate Director or prevented by such office
from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction entered into by or on behalf of the Company in which any Director or alternate Director shall be in any way
interested be or be liable to be avoided, nor shall any Director or alternate Director so contracting or being so interested be liable to account to the Company for any profit realised by or arising in connection with any such contract or
transaction by reason of such Director or alternate Director holding office or of the fiduciary relationship thereby established. A Director (or his alternate Director in his absence) shall be at liberty to vote in respect of any contract or
transaction in which he is interested provided that the nature of the interest of any Director or alternate Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

34.5 A general notice that a Director or alternate Director is a shareholder, director, officer or employee of any
specified firm or company and is to be regarded as interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest,
and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

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|:---|:---|
| **35** | **Minutes**  |

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The Directors shall cause minutes to be made in books kept for the purpose of recording all appointments of officers made by the Directors, all proceedings at meetings of the Company or the holders of any class of Shares and of the Directors, and of committees of the Directors, including the names of the Directors or alternate Directors present at each meeting.

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| | |
|:---|:---|
| **36** | **Delegation of Directors' Powers**  |

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36.1 The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committee consisting of one or more Directors. They may also delegate to any managing director or any Director holding any other executive office such of their powers, authorities and
discretions as they consider desirable to be exercised by him provided that an alternate Director may not act as managing director and the appointment of a managing director shall be revoked forthwith if he ceases to be a Director. Any such
delegation may be made subject to any conditions the Directors may impose and either collaterally with or to the exclusion of their own powers and any such delegation may be revoked or altered by the Directors. Subject to any such conditions, the
proceedings of a committee of Directors shall be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying.

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36.2 The Directors may establish any committees, local boards or agencies or appoint any person to be a manager or
agent for managing the affairs of the Company and may appoint any person to be a member of such committees, local boards or agencies. Any such appointment may be made subject to any conditions the Directors may impose, and either collaterally with
or to the exclusion of their own powers and any such appointment may be revoked or altered by the Directors. Subject to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating
the proceedings of Directors, so far as they are capable of applying.

36.3 The Directors may by power of attorney or otherwise appoint any person to be the agent of the Company on such
conditions as the Directors may determine, provided that the delegation is not to the exclusion of their own powers and may be revoked by the Directors at any time.

36.4 The Directors may by power of attorney or otherwise appoint any company, firm, Person or body of Persons,
whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors
under the Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of Persons dealing with any such
attorneys or authorised signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of the powers, authorities and discretions vested in him.

36.5 The Directors may appoint such officers of the Company (including, for the avoidance of doubt and without
limitation, any secretary) as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think fit. Unless otherwise specified in the
terms of his appointment an officer of the Company may be removed by resolution of the Directors or Members. An officer of the Company may vacate his office at any time if he gives notice in writing to the Company that he resigns his office.

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|:---|:---|
| **37** | **Alternate Directors**  |

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37.1 Any Director (but not an alternate Director) may by writing appoint any other Director, or any other person
willing to act, to be an alternate Director and by writing may remove from office an alternate Director so appointed by him.

37.2 An alternate Director shall be entitled to receive notice of all meetings of Directors and of all meetings of
committees of Directors of which his appointor is a member, to attend and vote at every such meeting at which the Director appointing him is not personally present, to sign any written resolution of the Directors, and generally to perform all the
functions of his appointor as a Director in his absence.

37.3 An alternate Director shall cease to be an alternate Director if his appointor ceases to be a Director.

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37.4 Any appointment or removal of an alternate Director shall be by notice to the Company signed by the Director
making or revoking the appointment or in any other manner approved by the Directors.

37.5 Subject to the provisions of the Articles, an alternate Director shall be deemed for all purposes to be a
Director and shall alone be responsible for his own acts and defaults and shall not be deemed to be the agent of the Director appointing him.

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| | |
|:---|:---|
| **38** | **No Minimum Shareholding**  |

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The Company in general meeting may fix a minimum shareholding required to be held by a Director, but unless and until such a shareholding qualification is fixed a Director is not required to hold Shares.

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| | |
|:---|:---|
| **39** | **Remuneration of Directors**  |

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39.1 The remuneration to be paid to the Directors, if any, shall be such remuneration as the Directors shall
determine. The Directors shall also be entitled to be paid all travelling, hotel and other expenses properly incurred by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the
Company, or separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of the Company or the discharge of their duties as a Director, or to receive a fixed allowance in respect
thereof as may be determined by the Directors, or a combination partly of one such method and partly the other.

39.2 The Directors may by resolution approve additional remuneration to any Director for any services which in the
opinion of the Directors go beyond his ordinary routine work as a Director. Any fees paid to a Director who is also counsel, attorney or solicitor to the Company, or otherwise serves it in a professional capacity shall be in addition to his
remuneration as a Director.

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|:---|:---|
| **40** | **Seal**  |

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40.1 The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of
the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some officer of the Company or other person
appointed by the Directors for the purpose.

40.2 The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each
of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used.

40.3 A Director or officer, representative or attorney of the Company may without further authority of the Directors
affix the Seal over his signature alone to any document of the Company required to be authenticated by him under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

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|:---|:---|
| **41** | **Dividends, Distributions and Reserves**  |

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41.1 <u>Dividends</u>. Subject to the Statute, this Article and <u>Article 11</u>, and except as otherwise provided
by the rights attached to any Shares, the Directors may resolve to pay Dividends and other distributions on Shares in issue and authorise payment of the Dividends or other distributions out of the funds of the Company lawfully available therefor. A
Dividend shall be deemed to be an interim Dividend unless the terms of the resolution pursuant to which the Directors resolve to pay such Dividend specifically state that such Dividend shall be a final Dividend. No Dividend or other distribution
shall be paid except out of the realised or unrealised profits of the Company, out of the share premium account or as otherwise permitted by law.

41.2 <u>Ranking</u>. No interest or other compensation shall be allowed to any Member by reason of its holding of
Shares except pursuant to its share of Dividends as set forth below. Dividends shall not be cumulative. All cash Dividends shall be made in United States dollars. Except as otherwise provided in <u>Article 47</u>, distributions shall be made by the
Company only in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Distributions of Proceeds Generally</u>. Dividends, if and when declared, shall be paid to the Members *pro rata* among the Class A Shareholders, Class B Preference Shareholders and the Common Shareholders, participating equally on an as-converted basis in accordance with the then-applicable
Conversion Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends in connection with Liquidation Transactions</u>. In connection with the consummation of a
Liquidation Transaction, notwithstanding anything to the contrary in <u>Article 41.2(a)</u>, (i) the Class B Preference Shareholders shall be entitled to receive, in respect of each Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, held thereby an amount equal to the greater of (A) the Original Issue Price of such Share plus the Accreted Liquidation Preference on such Share or
(B) the amount to which such Class B Preference Shareholder would be entitled had such Class B Convertible Preference Share or Class B-1 Convertible Preference Share been converted into
Common Shares immediately prior to the consummation of the applicable Liquidation Transaction at the then-current Conversion Rate (in each case of clause (A) and clause (B), after giving effect to all distributions received by such Class B
Preference Shareholder in respect of such Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date
thereof), (ii) after all amounts pursuant to clause (i) have been distributed, the Class A Shareholders shall be entitled to receive, in respect of each Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as applicable, held thereby an amount equal to the greater of (A) the Original Issue Price of such Share plus the Accreted Liquidation Preference on such Share
or (B) the amount to which such Class A Shareholder would be entitled had such Class A Convertible Preference Share or Class A-1 Convertible Preference Share been converted into Common
Shares immediately prior to the consummation of the applicable Liquidation Transaction at the then-current Conversion Rate (in each case of clause (A) and clause (B), after giving effect to all distributions received by such Class A

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Shareholder in respect of such Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date thereof), and (iii) after all amounts pursuant to clause (i) and clause (ii) have been distributed, the Common Shareholders shall receive all remaining distributable amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Same form and nature of consideration; Dividends in-kind</u>.
Dividends pursuant 30 to <u>Articles 41.2(a)</u> and <u>41.2(b)</u> may be paid wholly or partly by the distribution of specific assets and in particular (but without limitation) by the distribution of shares, debentures, or securities of any other
company. In the case of any distribution of securities: (i) such securities that are publicly traded shall be valued at (A) the average of the last reported trade price of securities of such class on the 10 most recent trading days prior
to the date as of which their value is to be determined, or (B) if such trade price is not readily available, the average of the closing "bid" price on the 10 most recent trading days prior to the date as of which their value is to be
determined; and (ii) securities that are not publicly traded shall be valued shortly before the distribution according to their Fair Market Value. The Directors shall, in making distributions of cash and securities or more than one type of
security) under any applicable provision hereof, allocate such cash and/or assets (including securities) in equal proportions among the Members except to the extent necessary to avoid a Member receiving a security that it is prohibited from holding.

41.3 <u>Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority to Withhold</u>. The Company shall be authorized to withhold and pay over any withholding or other
taxes payable by the Company as a result of any Member's status as a Member hereunder or otherwise attributable to such Member (as determined by the Directors in its sole discretion). Any such payment withheld from a distribution to a Member
shall be deemed for all purposes of these Articles as an advance against distributions to such Member under <u>Article 41.2</u>. Any distribution deemed made pursuant to the terms of this <u>Article 41.3</u> shall be treated as actually made for
purposes of applying <u>Article 41.2</u> as of the time each such withholding is paid by the Company. Any such amounts paid by the Company to the relevant taxing authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>AEOI</u>. The Company may be required to comply with the provisions of AEOI. Each Member shall, in a timely
and accurate manner, provide information regarding such Member and its beneficial owners as well as any forms or documentation reasonably requested from time to time by the board of Directors to enable the Company to comply with any requirements and
obligations imposed on it pursuant to AEOI, including forms and documentation which the Company may require to determine whether or not such Member's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply
with the relevant due diligence procedures in making such determination. The Company is authorized to take any action and pursue all remedies at its disposal to cause an individual Member to bear any or all costs attributable such Member's
noncompliance with AEOI or the board of Director's reasonable requests related to AEOI, and to hold back or deduct from any withdrawal or other proceeds due to any or all taxes, expenses or other costs attributable to such Member's
noncompliance with AEOI and borne by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice</u>. The Directors shall use commercially reasonable efforts to provide prompt notice to a Member
with respect to withholding or paying over taxes with respect to such Member. Neither the Company nor the Directors shall be liable for any excess taxes withheld in respect of any distribution to a Member. In the event of an overwithholding, a
Member's sole recourse shall be to apply for a refund from the appropriate taxing authority.

41.4 <u>Restricted Distributions</u>. Notwithstanding any provision to the contrary contained in these Articles, the
Company shall not make a distribution to any Member on account of its interest in the Company if such distribution would violate the Statute or other applicable law.

41.5 <u>No Interest on Clawback</u>. If a Member is obligated pursuant to the Statute or other applicable law to
return a distribution made to it where the Company is insolvent, such distribution shall be returned without application of any interest.

41.6 <u>Reserves</u>. The Directors may, before resolving to pay any Dividend or other distribution, set aside such
sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable for any purpose of the Company and pending such application may, at the discretion of the Directors, be employed in the business of the
Company.

41.7 <u>Unclaimed Dividends</u>. Any Dividend or other distribution which cannot be paid to a Member and/or which
remains unclaimed after six months from the date on which such Dividend or other distribution becomes payable may, in the discretion of the Directors, be paid into a separate account in the Company's name, provided that the Company shall not be
constituted as a trustee in respect of that account and the Dividend or other distribution shall remain as a debt due to the Member. Any Dividend or other distribution which remains unclaimed after a period of six years from the date on which such
Dividend or other distribution becomes payable shall be forfeited and shall revert to the Company.

41.8 <u>U.S. Tax Classification</u>. For U.S. federal income tax purposes, the Company is intended to be classified
as an association taxable as a corporation, and the board of Directors shall not take any action inconsistent with such classification without the prior consent of the Members.

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|:---|:---|
| **42** | **Capitalisation**  |

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The Directors may at any time capitalise any sum standing to the credit of any of the Company's reserve accounts or funds (including the share premium account and capital redemption reserve fund) or any sum standing to the credit of the profit and loss account or otherwise available for distribution; appropriate such sum to Members in the proportions in which such sum would have been divisible amongst such Members had the same been a distribution of profits by way of Dividend or other distribution; and apply such sum on

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their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid-up to and amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation, with full power given to the Directors to make such provisions as they think fit in the case of Shares becoming distributable in fractions (including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for such capitalisation and matters incidental or relating thereto and any agreement made under such authority shall be effective and binding on all such Members and the Company.

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|:---|:---|
| **43** | **Form of Payments; Setoff**  |

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Unless otherwise agreed by the Directors, all payments required to be made by any Member to the Company shall be made in immediately available funds denominated in United States dollars by certified bank check or by wire transfer to such account as may be designated from time to time by the Directors. In the sole discretion of the Directors, the Directors may apply all or any portion of any payment otherwise to be paid by the Company under these Articles to any Member to amounts owed by such Member to the Company pursuant to these Articles.

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|:---|:---|
| **44** | **Books of Account**  |

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44.1 The Directors shall cause proper books of account (including, where applicable, material underlying
documentation including contracts and invoices) to be kept with respect to all sums of money received and expended by the Company and the matters in respect of which the receipt or expenditure takes place, all sales and purchases of goods by the
Company and the assets and liabilities of the Company. Such books of account must be retained for a minimum period of six years from the date on which they are prepared. Proper books shall not be deemed to be kept if there are not kept such books of
account as are necessary to give a true and fair view of the state of the Company's affairs and to explain its transactions.

44.2 The Directors shall determine whether and to what extent and at what times and places and under what conditions
or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or book or document of the Company
except as conferred by Statute or authorised by the Directors or by the Company in general meeting.

44.3 The Directors may cause to be prepared and to be laid before the Company in general meeting profit and loss
accounts, balance sheets, group accounts (if any) and such other reports and accounts as may be required by law.

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|:---|:---|
| **45** | **Audit**  |

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45.1 The Directors may appoint an Auditor of the Company who shall hold office on such terms as the Directors
determine.

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45.2 Every Auditor of the Company shall have a right of access at all times to the books and accounts and vouchers
of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance of the duties of the Auditor.

45.3 Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their
appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members.

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|:---|:---|
| **46** | **Notices**  |

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46.1 Notices shall be in writing and may be given by the Company to any Member either personally or by sending it by
courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Any notice, if posted from one country to another, is to be sent by airmail.

46.2 Where a notice is sent by courier, service of notice shall be deemed to be effected by delivery of the notice
to a courier company, and shall be deemed to have been received on the third day (not including Saturdays or Sundays or public holidays) following the day on which the notice was delivered to the courier. Where a notice is sent by post, service of
the notice shall be deemed to be effected by properly addressing, pre paying and posting a letter containing the notice, and shall be deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays in the Cayman
Islands) following the day on which the notice was posted. Where a notice is sent by cable, telex or fax, service of the notice shall be deemed to be effected by properly addressing and sending such notice and shall be deemed to have been received
on the same day that it was transmitted. Where a notice is given by e-mail service shall be deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged by the recipient.

46.3 A notice may be given by the Company to the Person or Persons which the Company has been advised are entitled
to a Share or Shares in consequence of the death or bankruptcy of a Member in the same manner as other notices which are required to be given under the Articles and shall be addressed to them by name, or by the title of representatives of the
deceased, or trustee of the bankrupt, or by any like description at the address supplied for that purpose by the Persons claiming to be so entitled, or at the option of the Company by giving the notice in any manner in which the same might have been
given if the death or bankruptcy had not occurred.

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46.4 Notice of every general meeting shall be given in any manner authorised by the Articles to every holder of
Shares carrying an entitlement to receive such notice on the record date for such meeting except that in the case of joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members and every Person
upon whom the ownership of a Share devolves by reason of his being a legal personal representative or a trustee in bankruptcy of a Member where the Member but for his death or bankruptcy would be entitled to receive notice of the meeting, and no
other Person shall be entitled to receive notices of general meetings.

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|:---|:---|
| **47** | **Winding Up**  |

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47.1 The Company shall be wound up and subsequently dissolved the liquidator shall apply the assets of the Company
in satisfaction of creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up the of the Company assets shall be distributed, as realized, in the following order and
priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to creditors of the Company, including Members who are creditors, to the extent permitted by law, in
satisfaction of liabilities of the Company (whether by payment thereof or the making of reasonable provision for payment thereof) other than liabilities for which reasonable provision for payment has been made and liabilities for distributions to
Members under <u>Article 41.1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Members in accordance with <u>Article 41.1</u>.

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|:---|:---|
| **48** | **Indemnity and Insurance**  |

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48.1 Every Director and officer of the Company (which for the avoidance of doubt, shall not include auditors of the
Company), together with every former Director and former officer of the Company (each an "Indemnified Person") shall be indemnified out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages
or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own actual fraud
or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying out of their functions unless that liability arises through the actual
fraud or wilful default of such Indemnified Person. No Person shall be found to have committed actual fraud or wilful default under this Article unless or until a court of competent jurisdiction shall have made a finding to that effect.

48.2 The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs and
expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the
Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this
Article. If it shall be determined by a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with
respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person.

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48.3 The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or
other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such Person in respect of any negligence, default, breach of duty or breach of trust of which such Person may be guilty in relation to
the Company.

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|:---|:---|
| **49** | **Financial Year**  |

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The fiscal year of the Company shall be the calendar year. The Directors shall keep or cause to be kept complete and accurate books and records reflecting all activities of the Company for a period of six years following dissolution of the Company. The Members shall have the right to inspect such books and records to the extent provided in the Statute, these Articles and the Shareholders Agreement.

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|:---|:---|
| **50** | **Transfer by Way of Communication**  |

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If the Company is exempted as defined in the Statute, it shall, subject to the provisions of the Statute and with the approval of a Special Resolution, have the power to register by way of continuation as a body corporate under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

## Exhibit 3.3

**Exhibit 3.3** 

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**THIRD AMENDED AND RESTATED** 

**MEMORANDUM AND ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated December 30, 2024)** 

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**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**THIRD AMENDED AND RESTATED** 

**MEMORANDUM OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated December 30, 2024)** 

1. The name of the Company is Accelerant Holdings.

2. The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309,
Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place within the Cayman Islands as the Directors may decide.

3. The objects for which the Company is established are unrestricted and the Company shall have full power and
authority to carry out any object not prohibited by the laws of the Cayman Islands.

4. The liability of each Member is limited to the amount unpaid on such Member's shares.

5. The authorized share capital of the Company is US$348.6859, consisting of 3,486,859 shares of a nominal or par
value of US$0.0001 each, of which: (i) 3,019,667 shares are designated as Common Shares of a nominal or par value of US$0.0001 each (the "**Common Shares** "), (ii) 216,020 shares are designated as Class A Convertible Preference
Shares of a nominal or par value of US$0.0001 each (the "**Class A Convertible Preference Shares** "), (iii) 34,439 shares are designated as Class A-1 Convertible Preference
Shares of a nominal or par value of US$0.0001 each (the "**Class A 1 Convertible Preference Shares"**), (iv) 150,232 shares are designated as Class B Convertible Preference Shares of a nominal or par value of
US$0.0001 each (the "**Class B Convertible Preference Shares** "), (v) 1 share is designated as a Class B-1 Convertible Preference Share of a nominal or par value of
US$0.0001 (the "**Class B-1 Convertible Preference Share** "), (vi) 40,774 shares are designated as Class C Convertible Preference Shares of a nominal or par value of
US$0.0001 each (the "**Class C Convertible Preference Shares**") and (vii) 25,726 shares are designated as Class C-1 Convertible Preference Shares of a nominal or par value
of US$0.0001 each (the "**Class C-1 Convertible Preference Share** ").

6. The Company has power to register by way of continuation as a body corporate limited by shares under the laws
of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

7. Capitalised terms that are not defined in this Third Amended and Restated Memorandum of Association bear the
respective meanings given to them in the Third Amended and Restated Articles of Association of the Company.

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**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**THIRD AMENDED AND RESTATED** 

**ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(adopted by special resolution dated December 30, 2024)** 

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|:---|:---|
| **1** | **Interpretation**  |

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1.1 For purposes of these Articles, Table A in the First Schedule to the Statute does not apply and, unless there
is something in the subject or context inconsistent therewith:

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|:---|:---|
| "**Accreted Liquidation Preference**" | means:<br>(a) with respect to any Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as of any measurement date, 8% per annum on the Original Issue Price thereof, calculated from the date such Class A Convertible Preference Share or Class A-1 Convertible Preference Share became outstanding through (and including) the measurement date, and accruing and compounding quarterly, as adjusted in accordance with these Articles;<br>(b) with respect to any Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as of any measurement date, 16% per annum on the Original Issue Price thereof, calculated from the date such Class B Convertible Preference Share or Class B-1 Convertible Preference Share became outstanding through (and including) the measurement date, and accruing and compounding quarterly, as adjusted in accordance with these Articles; and<br>(c) with respect to any Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as of any measurement date, the Class C Rate on the Original Issue Price thereof, calculated from the date such Class C Convertible Preference Share or Class C-1 Convertible Preference Share became outstanding through (and including) the measurement date, and accruing daily and compounding quarterly, as adjusted in accordance with these Articles net of any amount received in |

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|  | respect of such Class C Convertible Preference Share or Class C-1 Convertible Preference Share as an<br>interim distribution pursuant to <u>Article 41.2(a)</u>. |
| "**AEOI**" | means: (a) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (b) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (c) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (a) and (b); and (d) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (a) through (d). |
| "**Affiliate**" | means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and, with respect to Persons that are individuals, also means the parents, grandparents, children, grandchildren and spouse of such individual, and trusts established for the benefit of any of the foregoing; *provided*, *however*, that Subsidiary Companies shall not be treated as "Affiliates" of the Company for purposes of these Articles. |
| "**Articles**" | means these third amended and restated articles of association of the Company. |
| "**Auditor**" | means the Person for the time being performing the duties of auditor of the Company (if any). |
| "**Available Tenor**" | means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date. |
| "**Benchmark**" | means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Article 51</u>. |

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|:---|:---|
| "**Benchmark Replacement**" | means the first alternative set forth in the order below that can be determined by the Company for the applicable Benchmark Replacement Date,<br>(a) the sum of: (i) Daily Simple SOFR and (ii) the related Benchmark Replacement Adjustment; or<br>(b) the sum of: (i) the alternate benchmark rate that has been selected by the Company giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.<br>If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than zero (0.0%), the Benchmark Replacement will be deemed to be zero (0.0%) for the purposes of these Articles. |
| "**Benchmark Replacement Adjustment**" | means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities. |
| "**Benchmark Replacement Date**" | means the earliest to occur of the following events with respect to the then-current Benchmark:<br>(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event", the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or |

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|:---|:---|
|  | (b) in the case of clause (c) of the definition of "Benchmark Transition Event", the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by or on behalf of the administrator of such Benchmark (or such component thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative; provided, that such non-representativeness or non- compliance will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.<br>For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). |
| "**Benchmark Transition Event**" | means the occurrence of one or more of the following events with respect to the then-current Benchmark:<br>(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);<br>(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all |

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|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or<br>(c) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative.<br>For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). |
| **"Board"** | means the board of directors of the Company. |
| **"Business Day"** | means any day on which commercial banks in New York, New York and the Cayman Islands are open and conducting regular business. |
| **"Change of Control"** | of a Person means (a) the acquisition by any third Person of more than fifty percent (50%) of such Person's stock, membership interest or similar ownership interest in a single transaction or series of related transactions; (b) the sale, license, lease or transfer of all or substantially all of such Person's assets to a third Person, whether through a single transaction or series of related transactions; or (c) any merger, consolidation or reorganization to which such Person is a party and as to which such Person is not the surviving entity or the sole owner of the surviving entity. |
| **"Class A Convertible Preference Shares"** | means those Shares designated as Class A Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class A Convertible Preference Shares and the Class A-1 Convertible Preference Shares shall be identical in all respects. |

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|:---|:---|
| **"Class A-1 Convertible Preference Shares"** | means those Shares designated as Class A-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class A Convertible Preference Shares and the Class A-1 Convertible Preference Shares shall be identical in all respects. |
| **"Class A Shareholder"** | means any holder of Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares. |
| **"Class B Convertible Preference Shares"** | means those Shares designated as Class B Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class B Convertible Preference Shares and the Class B-1 Convertible Preference Shares shall be identical in all respects. |
| **"Class B-1 Convertible Preference Shares"** | means those Shares designated as Class B-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors, the Class B Convertible Preference Shares and the Class B-1 Convertible Preference Shares shall be identical in all respects. |
| **"Class B Shareholder"** | means any holder of Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares. |
| **"Class C Convertible Preference Shares"** | means those Shares designated as Class C Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors and <u>Article 18</u> with respect to share conversions, the Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares shall be identical in all respects. |
| **"Class C Rate"** | means a rate per annum equal to (a) the greater of (i) 12.5% and (ii) Term SOFR plus 7.5% per annum <u>plus</u> (b) the applicable percentage rate per annum set forth in the grid below corresponding to the applicable time period; *provided, however*, that, except solely as a result of the application of the Default Rate after such time as an Event of Default has |

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| | | |
|:---|:---|:---|
| | occurred and during such time as such Event of Default is continuing, if the Class C Rate as determined<br>pursuant to this definition would be greater than 17.0% per annum, the Class C Rate shall be 17.0% for<br>the purposes of these Articles. Notwithstanding anything to the contrary, if the Company pays interim<br>cash distributions to Class C Shareholders in respect of their Class C Convertible Preference Shares or<br>Class C-1 Convertible Preference Shares with respect to any one or multiple quarterly measurement<br>periods, the Class C Rate applicable to such quarterly measurement periods shall be 1.0% per annum less<br>than it would otherwise have been as a result of the operation of this definition without giving effect to<br>this sentence. | occurred and during such time as such Event of Default is continuing, if the Class C Rate as determined<br>pursuant to this definition would be greater than 17.0% per annum, the Class C Rate shall be 17.0% for<br>the purposes of these Articles. Notwithstanding anything to the contrary, if the Company pays interim<br>cash distributions to Class C Shareholders in respect of their Class C Convertible Preference Shares or<br>Class C-1 Convertible Preference Shares with respect to any one or multiple quarterly measurement<br>periods, the Class C Rate applicable to such quarterly measurement periods shall be 1.0% per annum less<br>than it would otherwise have been as a result of the operation of this definition without giving effect to<br>this sentence. |
| | **Period** | **Additional Percentage<br>Points** |
| | From the Closing Date to December 18, 2028 | 0 |
| | From December 18, 2028 to December 18, 2029 | 1.5 |
| | From December 18, 2029 to December 18, 2030 | 3 |
| | From and after December 18, 2030 | 4.5 |
| "**Class C Shareholder**" | means any holder of Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares. | means any holder of Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares. |
| "**Class C-1 Convertible Preference Shares**" | means those Shares designated as Class C-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors and <u>Article 18</u> with respect to share conversions, the Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares shall be identical in all respects. | means those Shares designated as Class C-1 Convertible Preference Shares, which shall be ownership interests in the Company with the distribution preference set forth in <u>Article 41.2</u> and the other rights and privileges set forth in these Articles and the Shareholders Agreement. Other than as set forth in <u>Article 11.2</u> with respect to voting rights in connection with the election of Directors and <u>Article 18</u> with respect to share conversions, the Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares shall be identical in all respects. |
| "**Code**" | means the U.S. Internal Revenue Code of 1986. | means the U.S. Internal Revenue Code of 1986. |
| "**Common Shareholder**" | means any holder of Common Shares. | means any holder of Common Shares. |
| "**Common Shares**" | means those Shares designated as Common Shares, and which shall represent common shares in the Company with the rights and privileges set forth in these Articles and the Shareholders Agreement. | means those Shares designated as Common Shares, and which shall represent common shares in the Company with the rights and privileges set forth in these Articles and the Shareholders Agreement. |

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| | |
|:---|:---|
| "**Company**" | means the above named company. |
| "**Conforming Changes**" | means with respect to either the use of administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day", the timing and frequency of determining rates and making payments of interest, the timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Company decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Company in a manner substantially consistent with market practice and in a manner similar to that used for similarly situated borrowers (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Company decides reasonably necessary in connection with the administration of these Articles). |
| "**Conversion Rate**" | means (a) as of the date of these Articles, a rate of one Class A Convertible Preference Share, Class A-1 Convertible Preference Share, Class B Convertible Preference Share, Class B-1 Convertible Preference Share, Class C Convertible Preference Share or Class C-1 Convertible Preference Share to one Common Share, and (b) thereafter, such rate as may be adjusted pursuant to and in accordance with <u>Article 18</u>. |
| "**Credit Agreement**" | means that certain Second Amended and Restated Credit Agreement entered into as of September 26, 2024, among the Company, each Guarantor (as defined therein) from time to time party thereto, each Lender (as defined therein) from time to time party thereto, and Bank of Montreal, as administrative agent, as amended, amended and restated, supplemented or otherwise modified, renewed or replaced from time to time. |
| "**Credit Agreement Termination Date**" | means the date on which all the Loans (as defined in the Credit Agreement) and all other Obligations (as defined in the Credit Agreement) are repaid in full and all of the Commitments (as defined in the Credit Agreement) have been terminated. |
| "**Daily Simple SOFR**" | means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Company in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body |

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| | |
|:---|:---|
|  | for determining "Daily Simple SOFR" for syndicated business loans; provided, that if the Company decides that any such convention is not administratively feasible for the Company, then the Company may establish another convention in its reasonable discretion. |
| "**Default Rate**" | means a rate equal to (after as well as before judgment) the Class C Rate otherwise applicable at such time plus 2.00% per annum. |
| "**Desired Credit Agreement Result**" | has the meaning set forth in <u>Article 18.8(b)</u>. |
| "**Directors**" | means the directors of the Company from time to time. |
| "**Dividend**" | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to these Articles. |
| "**Election Notice**" | has the meaning set forth in <u>Article 18.6</u>. |
| "**Electronic Record**" | has the same meaning as in the Electronic Transactions Act. |
| "**Electronic Transactions Act**" | means the Electronic Transactions Act (As Revised) of the Cayman Islands. |
| "**Equity Securities**" | means as to any Person that is a corporation, the share or shares of such Person's capital stock, including all classes of common, preferred, voting and nonvoting shares or capital stock, and, as to any Person that is not a corporation or an individual, the ownership, beneficial or limited partner interests in such Person, including, without limitation, the right to share in profits and losses, the right to receive distributions of cash and property, and the right to receive allocations of items of income, gain, loss, deduction and credit and similar items from such Person, whether or not such interests include voting or similar rights entitling the holder thereof to exercise control over such Person. |
| "**Event of Default**" | means the occurrence of a breach by the Company or any of its Subsidiary Companies, as applicable, of, or failure by the Company or any of its Subsidiary Companies, as applicable, to comply in any material respect with, any of the provisions of <u>Article 11.1(c)</u> and <u>Article 18.7</u> of these Articles or any of Article VII of the Shareholders Agreement ("**Default Provisions**") which is not remedied, with respect to <u>Article 11.1(c)(iii)</u>, as provided for in the Credit Agreement and, with respect to the Default Provisions other than <u>Article 11.1(c)(iii)</u>, within 30 days after the earlier of (a) receipt by the Company of written notice from the Required Class C Shareholders of such breach or failure to comply or (b) actual knowledge of the Company of such breach or failure to comply. |

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|:---|:---|
| "**Fair Market Value**" | means, with respect to any securities or Persons, the fair market value thereof as determined by the Directors in good faith. |
| "**FATCA**" | means Sections 1471 through 1474 of the Code, as of the date of these Articles, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto. |
| "**Indemnified Person**" | has the meaning set forth in <u>Article 48.1</u>. |
| "**Interpolated Term SOFR**" | means, in relation to Term SOFR, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) either:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the most recent applicable Term SOFR for the longest period (for which Term SOFR is available) which is less than the quarterly measurement period; or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if no such Term SOFR is available for a period which is less than the quarterly measurement period, SOFR for the day which is two U.S. Government Securities Business Days before the first day of the applicable quarterly measurement period; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the applicable Term SOFR for the shortest period (for which Term SOFR is available) which exceeds the quarterly measurement period. |
| "**Liquidation Transaction**" | means any of the following transactions: (a) a liquidation, dissolution or winding up, whether voluntary or involuntary, of the Company; (b) a consolidation or merger of the Company with any other Person; (c) a single transaction or series of related transactions pursuant to which or as a result of which a single Person (or a Person together with its Affiliates) acquires or holds Equity Securities of the Company representing a majority of the outstanding Equity Securities of the Company (on a fully converted basis); or (d) a sale, license, lease or transfer of all or substantially all of the Company's assets. |
| "**Member**" | has the same meaning as in the Statute. |
| "**Memorandum**" | means the Third Amended and Restated Memorandum of Association of the Company, as amended or amended and restated from time to time. |
| "**Non-Qualified Holder**" | has the meaning set forth in <u>Article 18.4</u>. |

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|:---|:---|
| "**Ordinary Resolution**" | means a resolution passed by Members holding a simple majority of the voting power of the Shares as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by these Articles. |
| "**Original Issue Price**" | means (a), with respect to each Class A Convertible Preference Share and Class A-1 Convertible Preference Share, $1,000.00, (b), with respect to each Class B Convertible Preference Share and Class B-1 Convertible Preference Share, $1,009.482, or (c), with respect to each Class C Convertible Preference Share and Class C-1 Convertible Preference Share, $1,885.282842. |
| "**Permitted Redemption Amount**" | means, as of any date of determination, an amount of Restricted Payments (as defined in the Credit Agreement (as in effect on the date hereof)) that, in accordance with the terms of the Credit Agreement (as in effect on the date hereof), may be made to redeem Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares as of such date. |
| "**Person**" | means any individual or any business, corporation, partnership, joint venture, limited liability company, unincorporated association, trust or other enterprise. |
| "**Preference Share**" | means any Class A Convertible Preference Share, any Class A-1 Convertible Preference Share, any Class B Convertible Preference Share, any Class B-1 Convertible Preference Share, any Class C Convertible Preference Share or any Class C-1 Convertible Preference Share. |
| "**Qualified Direct Listing**" | means the Company's (or its successor's) listing of its Common Shares (or their successor Equity Securities) pursuant to an effective registration statement under the Securities Act; *provided*, that the Common Shares (or successor Equity Securities) are, or become, in connection with such listing, listed for trading on the New York Stock Exchange, the Nasdaq National Market or another applicable nationally recognized securities exchange. |
| "**Qualified Election**" | has the meaning set forth in <u>Article 18.2(b)</u>. |
| **"Qualified Holder"** | means any Class C Shareholder with capital contributions attributable to its Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares equal to or greater than<br> $70,000. |
| "**Qualified Initial Public Offering**" | means the Company's (or its successor's) first underwritten offering to the public pursuant to an effective registration statement under the Securities Act that results in aggregate gross |

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|:---|:---|
|  | proceeds to the Company and any selling stockholders of not less than $250 million at an implied price<br>per Preference Share valuation not less than the Original Issue Price plus the Accreted Liquidation<br>Preference; *provided*, that the Common Shares (or successor equity interests) are, or become, in<br>connection with such offering, listed for trading on the New York Stock Exchange, the Nasdaq National<br>Market or another applicable nationally recognized securities exchange. |
| **"Qualified SPAC"** | means a merger or other similar transaction which results in the Company's (or its successor's) Equity Securities being listed or quoted for trading on the New York Stock Exchange or the Nasdaq National Market or otherwise subject to registration under the Securities Act which results in aggregate gross proceeds to the Company and any selling stockholders of not less than $250 million at an implied price per Preference Share valuation not less than the Original Issue Price plus the Accreted Liquidation Preference. |
| **"Redemption Price"** | means for each Class C Convertible Preference Share or Class C- 1 Convertible Preference Share (a) on any date on or before the first anniversary of the date such Class C Convertible Preference Share or Class C-1 Convertible Preference Share became outstanding, 1.4 times the Original Issue Price, (b) on any date after the first anniversary of the date such Class C Convertible Preference Share or Class C-1 Convertible Preference Share became outstanding and ending on the second anniversary of the date such Class C Convertible Preference Share or Class C-1 Convertible Preference Share became outstanding, 1.5 times the Original Issue Price, and (c) on any date after the second anniversary of the date such Class C Convertible Preference Share or Class C-1 Convertible Preference Share became outstanding, the greater of (i) 1.5 times the Original Issue Price or<br>(ii) the Original Issue Price plus the Accreted Liquidation Preference. |
| **"Register of Members"** | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. |
| **"Registered Office"** | means the registered office of the Company as determined by the Directors from time to time. |
| **"Relevant Governmental Body"** | means the FRB or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the FRB or the Federal Reserve Bank of New York, or any successor thereto. |
| **"Required Class A Shareholders"** | means the Class A Shareholders that collectively hold more than fifty percent (50%) of the issued and outstanding Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares. |

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|:---|:---|
| "**Required Class B Shareholders**" | means the Class B Shareholders that collectively hold more than fifty percent (50%) of the issued and outstanding Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, provided, that with respect to <u>Articles 11.1(b)(i)</u> (solely with respect to this proviso), <u>(ii)</u> and <u>(iii)</u>, seventy percent (70%) shall be substituted for fifty percent (50%). |
| "**Required Class C Shareholders**" | means the Class C Shareholders that collectively hold more than fifty percent (50%) of the issued and outstanding Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, provided, that with respect to <u>Articles 11.1(c)(i)</u> (solely with respect to this proviso), <u>(ii)</u> and <u>(iii)</u>, seventy percent (70%) shall be substituted for fifty percent (50%). |
| "**Required Redemption Date**" | has the meaning set forth in <u>Article 18.8</u>. |
| "**Seal**" | means the common seal of the Company and includes every duplicate seal. |
| "**Securities Act**" | means the U.S. Securities Act of 1933. |
| "**Share**" | means a Common Share or a Preference Share. |
| "**Share Consideration**" | has the meaning set forth in <u>Article 18.3</u>. |
| "**Shareholder**" | means the Common Shareholders, the Class A Shareholders, the Class B Shareholders and the Class C Shareholders. |
| "**Shareholders Agreement**" | means the Second Amended and Restated Shareholders Agreement of the Company, as amended or amended and restated from time to time. |
| "**SOFR**" | means a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). |
| "**Special Resolution**" | has the same meaning as in the Statute, and includes a unanimous written resolution. |
| "**Statute**" | means the Companies Act (As Revised) of the Cayman Islands. |
| "**Subsidiary Company**" | means any entity in which, directly or indirectly, a Subsidiary Investment is made, and continues to be held, by the Company. |
| "**Subsidiary Investments**" | means all investments by the Company. |

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|:---|:---|
| "**Term SOFR**" | means, the Term SOFR Reference Rate for a three-month tenor on the day (such day, the "**Term SOFR Determination Day**") that is two U.S. Government Securities Business Days prior to the first day of the applicable three-month quarterly measurement period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. prevailing eastern time on any Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three U.S. Government Securities Business Days prior to such Term SOFR Determination Day. |
| "**Term SOFR Administrator**" | means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Company in its reasonable discretion). |
| "**Term SOFR Reference Rate**" | means the forward-looking term rate based on SOFR. |
| "**Treasury Share**" | means a Share held in the name of the Company as a treasury share in accordance with the Statute. |
| "**Triggering Event**" | has the meaning set forth in <u>Article 18.2</u>. |
| "**Triggering Event Date**" | has the meaning set forth in <u>Article 18.6</u>. |
| "**Unadjusted Benchmark Replacement**" | means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. |
| "**U.S. Government Securities Business Day**" | means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. |

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1.2 In these Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "written" and "in writing" include all modes of representing or reproducing words in
visible form, including in the form of an Electronic Record;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "shall" shall be construed as imperative and "may" shall be construed as permissive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) references to provisions of any law or regulation shall be construed as references to those provisions as
amended, modified, re-enacted or replaced, and shall include implementing rules or regulations (to the extent applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any phrase introduced by the terms "including", "include", "in particular" or any
similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the term "and/or" is used herein to mean both "and" as well as "or." The use of
"and/or" in certain contexts in no respects qualifies or modifies the use of the terms "and" or "or" in others. The term "or" shall not be interpreted to be exclusive and the term "and" shall not be
interpreted to require the conjunctive (in each case, unless the context otherwise requires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) headings are inserted for reference only and shall be ignored in construing the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any requirements as to delivery under these Articles include delivery in the form of an Electronic Record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any requirements as to execution or signature under the Articles including the execution of these Articles
themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sections 8 and 19(3) of the Electronic Transactions Act shall not apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the term "clear days" in relation to the period of a notice means that period excluding the day when
the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the term "holder" in relation to a Share means a Person whose name is entered in the Register of
Members as the holder of such Share.

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|:---|:---|
| **2** | **Commencement of Business**  |

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2.1 The business of the Company commenced after incorporation of the Company.

2.2 The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about
the formation and establishment of the Company, including the expenses of registration and expenses associated with the adoption of these Articles and the Shareholders Agreement.

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|:---|:---|
| **3** | **Issue of Shares**  |

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3.1 Subject to the provisions, if any, in the Memorandum (including <u>Article 11.1</u>) (and to any direction that
may be given by the Company in general meeting) and without prejudice to any rights attached to any existing Shares (including the rights set forth in <u>Article 11.1</u>), the Directors may allot, issue, grant options over or otherwise dispose of

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Shares (including fractions of a Share) with or without preferred, deferred or other rights or restrictions, whether in regard to a Dividend or other distribution, voting, return of capital or otherwise and to such Persons, at such times and on such other terms as they think proper, and may also (subject to the Statute and these Articles) vary such rights provided that the Directors shall not issue shares if such action would be contrary to or inconsistent with the terms of the Shareholders Agreement.

3.2 The Company shall not issue Shares to bearer.

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|:---|:---|
| **4** | **Currency**  |

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The reporting currency of the Company shall be United States dollars. All currency references herein shall be to United States dollars unless otherwise stated. No Member shall be entitled to receive cash distributions from the Company other than in United States dollars. In the event that it is necessary or convenient for Company purposes to apply an exchange rate between different currencies, the exchange rate shall be determined by the Directors using such publicly available indices as they shall select in their reasonable discretion.

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|:---|:---|
| **5** | **Register of Members**  |

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5.1 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute.

5.2 The Directors may determine that the Company shall maintain one or more branch registers of Members in
accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time.

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|:---|:---|
| **6** | **Closing Register of Members or Fixing Record Date**  |

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6.1 For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any
adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may provide that the Register of Members shall be closed for
transfers for a stated period which shall not in any case exceed 40 days.

6.2 In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date
as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other
distribution, or in order to make a determination of Members for any other purpose.

6.3 If the Register of Members is not so closed and no record date is fixed for the determination of Members
entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to
pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article,
such determination shall apply to any adjournment thereof.

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|:---|:---|
| **7** | **Certificates for Shares**  |

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7.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall
be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other Persons authorised by the Directors. The Directors may authorise
certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates
surrendered to the Company for transfer shall be cancelled and subject to these Articles no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled.

7.2 The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one
Person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them.

7.3 If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to
evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate.

7.4 Every share certificate sent in accordance with these Articles will be sent at the risk of the Member or other
Person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery.

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|:---|:---|
| **8** | **Transfer of Shares**  |

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8.1 Shares are transferable subject to the approval of the Directors by resolution who may, in their absolute
discretion, decline to register any transfer of Shares without giving any reason; provided that the Directors (a) shall not decline to register any transfer of Shares made in accordance with the terms of the Shareholders Agreement and these
Articles (including <u>Article 17</u>), and (b) shall decline to register any transfer of shares not so made. If the Directors refuse to register a transfer they shall notify the transferee within two months of such refusal.

8.2 The instrument of transfer of any Share shall be in writing and shall be executed by or on behalf of the
transferor (and if the Directors so require, signed by or on behalf of the transferee). The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members.

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|:---|:---|
| **9** | **Redemption, Repurchase and Surrender of Shares**  |

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9.1 Subject to the provisions of the Statute and these Articles (including <u>Article 11.1</u>), the Company may
issue Shares that are to be redeemed or are liable to be redeemed at the option of the Common Shareholders owning a majority of the voting power of the then outstanding Common Shares or the Company. The redemption of such Shares shall be effected in
such manner and upon such other terms as the Company may, by Special Resolution, determine before the issue of the Shares.

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9.2 Subject to the provisions of the Statute and these Articles (including <u>Article 11.1</u> and <u>Article 18</u>), the Company may purchase (or agree to purchase) its own Shares (including any redeemable Shares) in such manner and on such other terms as the Directors may agree with the relevant Member.

9.3 The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner
permitted by the Statute, including out of capital.

9.4 The Directors may accept the surrender for no consideration of any fully paid Share.

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|:---|:---|
| **10** | **Treasury Shares**  |

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10.1 The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall
be held as a Treasury Share.

10.2 The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think
proper (including, without limitation, for nil consideration).

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|:---|:---|
| **11** | **Voting and Approval Rights of Shares**  |

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11.1 Notwithstanding <u>Article 11.2</u>, prior to the occurrence of a Qualified Initial Public Offering, Qualified
Direct Listing or Qualified SPAC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for so long as any Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares remain issued and outstanding, the Company shall not, and to the extent applicable, shall not permit the Board, any Subsidiary Company or any board of any
Subsidiary Company to, take any of the following actions, without having received the consent or vote of the Required Class A Shareholders and any such act or transaction entered into without such consent or vote shall be null and void ab
initio and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, waive or repeal any provision of the Memorandum or these Articles in a manner adverse to the
rights, preferences and privileges of the Class A Convertible Preference Shares or the Class A- 1 Convertible Preference Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, authorize, incur or issue (including through reclassification, alteration, amendment or otherwise) any
Equity Securities in the Company having rights, preferences or privileges senior to or pari passu with the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares (it being
understood and agreed that notwithstanding that the Common Shares have pari passu voting rights with the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, the consent
required by this <u>Article 11.1(a)(ii)</u> does not apply to issuances of Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) authorize, incur or issue any debt or debt securities if the Company's consolidated aggregate debt would
exceed $200,000,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) purchase or redeem or pay any dividend on any Equity Security junior to the Class A Convertible Preference
Shares or Class A-1 Convertible Preference Shares other than in the manner contemplated by <u>Article 41</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) effect a Liquidation Transaction at an implied per Class A Convertible Preference Share valuation or per Class A-1 Convertible Preference Share valuation that would result in the Class A Shareholders receiving an amount per Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as applicable, of less than the sum of (A) the Original Issue Price plus (B) the Accreted Liquidation Preference thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) increase or decrease the size of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for so long as any Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares remain issued and outstanding, the Company shall not, and to the extent applicable, shall not permit the Board, any Subsidiary Company or any board of any
Subsidiary Company to, take any of the following actions, without having received the consent or vote of the Required Class B Shareholders and any such act or transaction entered into without such consent or vote shall be null and void ab
initio and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, waive or repeal any provision of the Memorandum or these Articles in a manner disproportionately
adverse to the rights, preferences and privileges of the Class B Convertible Preference Shares or the Class B-1 Convertible Preference Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, authorize, incur or issue (including through reclassification, alteration, amendment or otherwise) any
Equity Securities in the Company having rights, preferences or privileges senior to or pari passu with the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares (it being
understood and agreed that notwithstanding that the Common Shares have pari passu voting rights with the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, the consent
required by this <u>Article 11.1(b)(ii)</u> does not apply to issuances of Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) authorize, incur or issue any debt or debt securities if the ratio of Consolidated Total Debt (as defined in
the Credit Agreement) to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) would, as a result of such authorization, incurrence or issuance, exceed 4.5 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) purchase or redeem or pay any dividend on any Equity Security junior to the Class B Convertible Preference
Shares and Class B-1 Convertible Preference Shares other than in the manner contemplated by <u>Article 41</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) effect a Liquidation Transaction at an implied per Class B Convertible Preference Share valuation or per Class B-1 Convertible Preference Share valuation that would result in the Class B Shareholders receiving an amount per Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, of less than the sum of (A) the Original Issue Price plus (B) the Accreted Liquidation Preference thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) increase or decrease the size of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for so long as any Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares remain issued and outstanding, the Company shall not, and to the extent applicable, shall not permit the Board, any Subsidiary Company or any board of any
Subsidiary Company to, take any of the following actions, without having received the consent or vote of the Required Class C Shareholders and any such act or transaction entered into without such consent or vote shall be null and void ab
initio and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, waive or repeal any provision of the Memorandum or these Articles in a manner disproportionately
adverse to the rights, preferences and privileges of the Class C Convertible Preference Shares or the Class C-1 Convertible Preference Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, authorize, incur or issue (including through reclassification, alteration, amendment or otherwise) any
Equity Securities in the Company having rights, preferences or privileges senior to or pari passu with the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares (it being
understood and agreed that notwithstanding that the Common Shares have pari passu voting rights with the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, the consent
required by this <u>Article 11.1(c)(ii)</u> does not apply to issuances of Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) authorize, incur or issue any debt or debt securities if the ratio of Consolidated Total Debt (as defined in
the Credit Agreement) to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) would, as a result of such authorization, incurrence or issuance, exceed 4.5 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, alter, waive or repeal any provision of the Credit Agreement in a manner that would make the provisions
related to Restricted Payments (as defined in the Credit Agreement) more restrictive to the Company than those in effect on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) purchase or redeem or pay any dividend on any Equity Security junior to the Class C Convertible Preference
Shares and Class C-1 Convertible Preference Shares other than in the manner contemplated by <u>Article 41</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) effect a Liquidation Transaction at an implied per Class C Convertible

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Preference Share valuation or per Class C-1 Convertible Preference Share valuation that would result in the Class C Shareholders receiving an amount per Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as applicable, of less than the sum of (A) the Original Issue Price plus (B) the Accreted Liquidation Preference thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) increase or decrease the size of the Board.

11.2 As to any matter which shall be subject to a vote of the Shareholders or on which the Class A
Shareholders, Class B Shareholders or Class C Shareholders, as applicable, shall be entitled to vote or consent under applicable law or <u>Article 11.1</u>, each Class A Shareholder, Class B Shareholder or Class C
Shareholder, as applicable, shall be entitled to that number of votes with respect to its Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible
Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, as
applicable, equal to the number of Common Shares into which such Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares would then convert at the
then-applicable Conversion Rate; provided, however, that the Class A-1 Convertible Preference Shares, the Class B-1 Convertible Preference Shares and the Class C-1 Convertible Preference Shares shall have no right to vote with respect to the election of Directors. As to any matter which shall be subject to a vote of the Shareholders or on which the Common
Shareholders shall be entitled to vote or consent under applicable law, each Common Shareholder shall be entitled to one vote per Common Share held by such Common Shareholder.

11.3 For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares
as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.

11.4 The rights conferred upon the holders of Shares of any class issued with preferred or other rights shall not,
unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith.

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|:---|:---|
| **12** | **Variation of Rights**  |

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12.1 Subject to <u>Article11.1</u>, if at any time the share capital of the Company is divided into different
classes of Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the
issued Shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two
thirds of the issued Shares of that class, or with the approval of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the
Directors reserve the right,

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notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of these Articles relating to general meetings shall apply mutatis mutandis, except that the necessary quorum shall be one person holding or representing by proxy at least one third of the issued Shares of the class and that any holder of Shares of the class present in person or by proxy may demand a poll.

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|:---|:---|
| **13** | **Non Recognition of Trusts**  |

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The Company shall not be bound by or compelled to recognise in any way (even when notified) any equitable, contingent, future or partial interest in any Share, or (except only as is otherwise provided by these Articles or the Statute) any other rights in respect of any Share other than an absolute right to the entirety thereof in the holder.

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|:---|:---|
| **14** | **Lien on Shares**  |

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14.1 The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or
his estate, either alone or jointly with any other Person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such
Share shall operate as a waiver of the Company's lien thereon. The Company's lien on a Share shall also extend to any amount payable in respect of that Share.

14.2 The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if
a sum in respect of which the lien exists is presently payable, and is not paid within fourteen clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the Person entitled to it in consequence of
the death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold.

14.3 To give effect to any such sale, the Directors may authorise any Person to execute an instrument of transfer of
the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or his nominee shall be registered as the holder of the Shares comprised in any such transfer, and he shall not be bound to see to the application of the
purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company's power of sale under these Articles.

14.4 The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in
respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the Person entitled to the Shares at the date of the sale.

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|:---|:---|
| **15** | **Call on Shares**  |

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15.1 Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in
respect of any monies unpaid on their Shares (whether in

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respect of par value or premium), and each Member shall (subject to receiving at least fourteen clear days' notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A Person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the Shares in respect of which the call was made.

15.2 A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call
was passed.

15.3 The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.

15.4 If a call remains unpaid after it has become due and payable, the Person from whom it is due shall pay interest
on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part.

15.5 An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the
par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of these Articles shall apply as if that amount had become due and payable by virtue of a call.

15.6 The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the
interest to be paid.

15.7 The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of
the monies uncalled and unpaid upon any Shares held by him, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance.

15.8 No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a
Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable.

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|:---|:---|
| **16** | **Forfeiture of Shares**  |

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16.1 If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to
the Person from whom it is due not less than fourteen clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non- payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited.

16.2 If the notice is not complied with, any Share in respect of which it was given may, before the payment required
by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture.

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16.3 A forfeited Share may be sold, re-allotted or otherwise disposed of on
such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the
purposes of its disposal a forfeited Share is to be transferred to any Person the Directors may authorise some Person to execute an instrument of transfer of the Share in favour of that Person.

16.4 A Person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall
surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by him to the Company in respect of those Shares together with
interest at such rate as the Directors may determine, but his liability shall cease if and when the Company shall have received payment in full of all monies due and payable by him in respect of those Shares.

16.5 A certificate in writing under the hand of one Director or officer of the Company that a Share has been
forfeited on a specified date shall be conclusive evidence of the facts stated in it as against all Persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title
to the Share and the Person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Share be affected by any irregularity or invalidity in the
proceedings in reference to the forfeiture, sale or disposal of the Share.

16.6 The provisions of these Articles as to forfeiture shall apply in the case of non payment of any sum which, by
the terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a call duly made and notified.

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|:---|:---|
| **17** | **Transmission of Shares**  |

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17.1 If a Member dies the survivor or survivors (where he was a joint holder) or his legal personal representatives
(where he was a sole holder), shall be the only Persons recognised by the Company as having any title to his Shares. The estate of a deceased Member is not thereby released from any liability in respect of any Share, for which he was a joint or sole
holder.

17.2 Any Person becoming entitled to a Share in consequence of the death or bankruptcy or liquidation or dissolution
of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by him to the Company, either to become the holder of such Share or to have some Person
nominated by him registered as the holder of such Share. If he elects to have another Person registered as the holder of such Share he shall sign an instrument of transfer of that Share to that Person. The Directors shall, in either case, have the
same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution, as the case may be.

17.3 A Person becoming entitled to a Share by reason of the death or bankruptcy or

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liquidation or dissolution of a Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which it would be entitled if it were the holder of such Share. However, it shall not, before becoming a Member in respect of a Share, be entitled in respect of such Share to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such Person to elect either to be registered itself or to have some Person nominated by it be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before its death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within ninety days of being received or deemed to be received (as determined pursuant to these Articles) the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with.

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|:---|:---|
| **18** | **Conversion of Shares; Adjustments; Redemption**  |

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18.1 In connection with any Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, the
Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares and Class B-1 Convertible
Preference Shares issued and outstanding immediately prior to such Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC shall be converted, automatically and without further action by any Person, into Common Shares at the
then-applicable Conversion Rate. Any such conversion shall be effected by the compulsory redemption by the Company of such Class A Convertible Preference Shares, Class A-1 Convertible Preference
Shares, Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares at par, and the application of such redemption proceeds to the paying up of newly issued Common Shares.

18.2 In connection with (and subject to consummation of) any Qualified Initial Public Offering, Qualified Direct
Listing, Qualified SPAC or Change of Control (each, a "**Triggering Event** "), each Qualified Holder may elect (a) to convert all (but not less than all) of its Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares into the number of Common Shares into which such Class C Convertible Preference Shares and Class C-1 Convertible
Preference Shares are then convertible at the then-applicable Conversion Rate and pursuant to the same conversion mechanics described in the last sentence of <u>Article 18.1</u> or (b) to receive an amount in cash in exchange for the redemption
of each Class C Convertible Preference Share and Class C-1 Convertible Preference Share then outstanding and held by such Qualified Holder equal to the Redemption Price (an election under clause
(b) of this Article 18.2, the "**Qualified Election** "); provided that, if a Qualified Holder fails to make an election pursuant to this <u>Article 18.2</u> within five Business Days of receiving an Election Notice, the Board, in
its sole discretion, shall make such election on behalf of such Qualified Holder.

18.3 If a Triggering Event occurs following the second anniversary of the date hereof and a Qualified Holder makes a
Qualified Election, such Qualified Holder may also elect to receive a portion of the Redemption Price in the form of Common Shares with an aggregate value based on the per-Common Share value ascribed to the
Common Shares in such Triggering Event equal to up to 25% of the aggregate capital contributions made

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by such Qualified Holder with respect to its Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares (the "**Share Consideration**") with the remainder of the Redemption Price to be paid to such Qualified Holder in cash.

18.4 In connection with any Triggering Event, each of the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares held by any Person that is not a Qualified Holder (a "**Non-Qualified Holder**") shall be converted or redeemed in
accordance with the treatment accorded the majority of the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares held by the Qualified Holders pursuant to <u>Article 18.2</u>.

18.5 If (a) the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares held by the Non-Qualified Holders are redeemed by the Company pursuant to <u>Article 18.4</u> and (b) a majority-in-interest of the Qualified Holders elected to receive the Share Consideration (in any proportion) pursuant to <u>Article 18.3</u>, then each Non- Qualified Holder shall receive a portion of the Redemption Price in the form of Common Shares with an aggregate value based on the per-Common Share value ascribed to the
Common Shares in such Triggering Event equal to 25% of the aggregate capital contributions made by such Qualified Holder with respect to its Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares with the remainder of the Redemption Price to be paid to each such Non-Qualified Holder in cash.

18.6 To make an election pursuant to <u>Article 18.2</u>, no later than six Business Days prior to the expected date
of the consummation of a Triggering Event (the date on which the Triggering Event is consummated, the "**Triggering Event Date** "), the Company shall deliver a written notice (an "**Election Notice**") to each Qualified
Holder of record at such Qualified Holder's address as it appears in the Register of Members. The Election Notice shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a good faith estimate of the number of Common Shares that a Qualified Holder would receive for each
Class C Convertible Preference Share and Class C-1 Convertible Preference Share at the then-applicable Conversion Rate as of the Triggering Event Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a good faith estimate of the per-Common Share value expected to be
attributed to each Common Share in connection with such Triggering Event and any other material terms of such Triggering Event bearing on the contingent or potential value of a Common Share in connection with or following such Triggering Event (for
example, any escrowed proceeds in connection with a Change of Control or registration rights in connection with a Qualified Initial Public Offering); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Redemption Price that the Company would pay to redeem each applicable Class C Convertible Preference
Share and Class C-1 Convertible Preference Share upon applicable election on the Triggering Event Date.

18.7 Subject to <u>Article 18.8</u>, on the Triggering Event Date, and subject to the consummation of the
corresponding Triggering Event, the Company shall pay any applicable cash portion of any Redemption Price pursuant to this <u>Article 18</u> to the applicable Class C Shareholder by wire transfer in immediately available funds.

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18.8 Notwithstanding anything to the contrary in these Articles, if the date on which the Company is required to
redeem any or all of the outstanding Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares in connection with any Triggering Event or otherwise (the "**Required Redemption Date**") is a date prior to the Credit Agreement Termination Date, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Required Redemption Date shall be automatically postponed to, and deemed to originally be, the date
occurring immediately after the Credit Agreement Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Company shall have received a Qualified Election pursuant to <u>Article 18.2(b)</u>, the Company shall
take all actions necessary to (i) cause the Credit Agreement Termination Date to occur or (ii) obtain the consents required under the Credit Agreement in order to permit the redemption of the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares that were elected to be redeemed pursuant to <u>Article 18.2(b)</u> (the "**Redeemed Class C Shares**") prior to the Credit Agreement
Termination Date, in each case in this clause (b) on the applicable Required Redemption Date (before giving effect to any postponement thereof pursuant to clause (a) immediately above) (the "**Desired Credit Agreement Result** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if either of the actions in <u>Article 18.8(b)(i)</u> or <u>Article 18.8(b)(ii)</u> did not result in the
Desired Credit Agreement Result, in either such case on or prior to such applicable Required Redemption Date, then (i) the Company shall be deemed to have breached its obligation to take the action required by <u>Article 18.8(b)</u> (with the
effects, among other things, that the increased Class C Rate upon an Event of Default provided for in the definition of Class C Rate shall apply from and after such Required Redemption Date until such redemption occurs for the outstanding
Redeemed Class C Shares and the Class C Shareholders may take any and all actions to cause the Company to perform its obligations under <u>Article 18.8(b)(i)</u> or <u>Article 18.8(b)(ii)</u> and to effectuate such redemption), (ii) the
Company shall continue to take all actions necessary to cause the Desired Credit Agreement Result to occur as soon as practicable thereafter and (iii) the Company shall redeem the Redeemed Class C Shares immediately following the date on
which the Desired Credit Agreement Result has occurred. If the Required Redemption Date has been postponed in accordance with this <u>Article 18.8</u> or the Company is otherwise in breach of its obligation to redeem the Redeemed Class C Shares
for the Redemption Price on the Required Redemption Date, until all Redeemed Class C Shares have been redeemed in accordance with these Articles, (x) no dividends or other distributions may be paid in respect of the Common Shares and
(y) without limiting the Company's obligation to redeem all still-outstanding Redeemed Class C Shares immediately following the Credit Agreement Termination Date, the Company will, on the last Business Day of each month, occurring
after the Required Redemption Date (prior to giving effect to any postponement thereof in accordance with this <u>Article 18.8</u>), redeem a number of Redeemed Class C Shares (pro rata for each holder thereof based on the number of Redeemed
Class C Shares owned thereby) in an aggregate amount equal to the Permitted Redemption Amount as of each such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The redemption provisions of this <u>Article 18</u> are intended to be construed such that no Preference Share
constitute a "Disqualified Equity Interest" (as defined in the Credit Agreement).

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18.9 In the event the outstanding Common Shares shall be subdivided (by share split, by payment of a share dividend,
a bonus issue or otherwise) into a greater number of Common Shares, the Conversion Rate in effect immediately prior to such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately decreased. In the event the
outstanding Common Shares shall be consolidated (by reclassification or otherwise) into a lesser number of Common Shares, the Conversion Rate in effect immediately prior to such combination shall, concurrently with the effectiveness of such
combination, be proportionately increased.

18.10 In the event the outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible
Preference Shares or Class C-1 Convertible Preference Shares shall be subdivided (by share split, by payment of a share dividend, a bonus issue or otherwise), into a greater number of Class A
Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares,
Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, respectively, the Accreted Liquidation Preference and the Conversion Rate in effect immediately prior to such
subdivision with respect to the applicable Shares shall, concurrently with the effectiveness of such subdivision, be proportionately decreased. In the event the outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible
Preference Shares or Class C-1 Convertible Preference Shares shall be consolidated (by reclassification or otherwise) into a lesser number of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference
Shares or Class C-1 Convertible Preference Shares, respectively, the Accreted Liquidation Preference and the Conversion Rate in effect immediately prior to such combination with respect to the applicable
Shares shall, concurrently with the effectiveness of such combination, be proportionately increased.

18.11 If the Common Shares issuable upon conversion of the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference
Shares or Class C-1 Convertible Preference Shares shall be changed into the same or a different number of shares of any other class or classes of Equity Securities, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or consolidation of shares provided for above), then, in any such event, in lieu of the number of Common Shares which the Class A Shareholders, Class B Shareholders or Class C
Shareholders, as applicable, would otherwise have been entitled to receive, each Class A Shareholder, Class B Shareholder or Class C Shareholder holding the applicable Shares shall have the right thereafter to convert such
Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible
Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, as applicable, into a number of shares of such other class or classes of Equity Securities which a
holder of the number of Common Shares deliverable upon conversion of such Class A

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Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares immediately before that change would have been entitled to receive in such reorganization or reclassification, all subject to further adjustment as provided herein with respect to such other shares.

18.12 Upon the occurrence of each adjustment or readjustment of the Conversion Rate pursuant to this <u>Article 18</u>, the Company shall, upon the written request at any time of any affected Class A Shareholder, Class B Shareholder or Class C Shareholder, as applicable, furnish or cause to be furnished to such Person a certificate setting
forth (a) such adjustments and readjustments, (b) the applicable Conversion Rate at the time in effect and (c) the number of Common Shares and the amount, if any, of other property which at the time would be received upon the
conversion of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, as applicable.

18.13 The Company shall at all times reserve and keep available out of its authorized but unissued Common Shares
solely for the purpose of effecting the conversion of the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, such number of its Common Shares as
shall from time to time be sufficient to effect the conversion of all then outstanding Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible
Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares; and, if at
any time the number of authorized but unissued Common Shares shall not be sufficient to effect the conversion of all then outstanding Class A Convertible Preference Shares, Class A-1 Convertible
Preference Shares, Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, the Company shall seek an Ordinary Resolution in accordance with <u>Article 19.1</u> to increase its authorized but unissued Common Shares to such number of shares
as shall be sufficient for such purpose.

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|:---|:---|
| **19** | **Amendments of Memorandum and Articles of Association and Alteration of Capital**  |

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19.1 Subject to <u>Article 11.1 and Article 19.4</u>, the Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights,
priorities and privileges annexed thereto, as the Company in general meeting may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its paid-up Shares into stock, and reconvert that
stock into paid-up Shares of any denomination;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into
Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to
be taken by any Person and diminish the amount of its share capital by the amount of the Shares so cancelled.

19.2 All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same
provisions of these Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital.

19.3 Subject to the provisions of the Statute and the provisions of these Articles (including <u>Article 11.1</u> and <u>Article 19.4</u>) as regards the matters to be dealt with by Ordinary Resolution, the Company may by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) alter or add to these Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce its share capital or any capital redemption reserve fund.

19.4 The Company shall not adopt any amendment, alteration, waiver or repeal of all or any portion of these Articles
that has a disproportionate and adverse effect on any Shareholder relative to the other holders of the same class of Shares without the prior written consent of such Shareholder.

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|:---|:---|
| **20** | **Offices and Places of Business**  |

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Subject to the provisions of the Statute, the Company may by resolution of the Directors change the location of its Registered Office. The Company may, in addition to its Registered Office, maintain such other offices or places of business as the Directors determine.

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|:---|:---|
| **21** | **General Meetings**  |

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21.1 All general meetings other than annual general meetings shall be called extraordinary general meetings.

21.2 The Company may, but shall not (unless required by the Statute) be obliged to, in each year hold a general
meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. Any annual general meeting shall be held at such time and place as the Directors shall appoint and if no other time and place is prescribed by
them, it shall be held at the Registered Office on the second Wednesday in December of each year at ten o'clock in the morning. At these meetings the report of the Directors (if any) shall be presented.

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21.3 The Directors may call general meetings, and they shall on a Members' requisition forthwith proceed to
convene an extraordinary general meeting of the Company.

21.4 A Members' requisition is a requisition of Members holding at the date of deposit of the requisition not
less than ten percent of the voting power of the outstanding Shares.

21.5 The Members' requisition must state the objects of the meeting and must be signed by the requisitionists
and deposited at the Registered Office, and may consist of several documents in like form each signed by one or more requisitionists.

21.6 If there are no Directors as at the date of the deposit of the Members' requisition or if the Directors do
not within twenty-one days from the date of the deposit of the Members' requisition duly proceed to convene a general meeting to be held within a further twenty-one days, the requisitionists, or any of them representing more than one- half of the total voting rights of all of the requisitionists, may themselves convene a general meeting, but any meeting so convened shall
be held no later than the day which falls three months after the expiration of the said twenty-one day period.

21.7 A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly as
possible as that in which general meetings are to be convened by Directors.

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|:---|:---|
| **22** | **Notice of General Meetings**  |

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22.1 At least five Business Days' notice shall be given of any general meeting. Every notice shall specify the
place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be prescribed by the Company,
provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of these Articles regarding general meetings have been complied with, be deemed to have been
duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all of the Members entitled to attend and vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by Members representing not less than ninety five percent of
the aggregate voting power of the outstanding Shares.

22.2 The accidental omission to give notice of a general meeting to, or the non receipt of notice of a general
meeting by, any Person entitled to receive such notice shall not invalidate the proceedings of that general meeting.

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|:---|:---|
| **23** | **Proceedings at General Meetings**  |

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23.1 No business shall be transacted at any general meeting unless a quorum is present. Members holding Shares
representing a majority of the voting power of the outstanding Shares entitled to vote at such general meeting, represented in person or by proxy, shall be a quorum.

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23.2 A Person may participate at a general meeting by conference telephone or other communications equipment by
means of which all the Persons participating in the meeting can communicate with each other. Participation by a Person in a general meeting in this manner is treated as presence in Person at that meeting.

23.3 A Special Resolution in writing (in one or more counterparts) signed by or on behalf of all of the Members for
the time being entitled to receive notice of and to attend and vote at general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) shall be as valid
and effective as if the resolution had been passed at a general meeting of the Company duly convened and held. An Ordinary Resolution in writing (in one or more counterparts) signed by or on behalf of such number of the Members for the time being
entitled to receive notice of and to attend and vote at general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) as would be required to pass such
resolution at a general meeting of the Company duly convened and held at which all Members for the time being entitled to receive notice of and to attend and vote at general meetings were in attendance, shall be as valid and effective as if the
resolution had been passed at a general meeting of the Company duly convened and held.

23.4 If a quorum is not present within half an hour from the time appointed for the meeting to commence or if during
such a meeting a quorum ceases to be present, the meeting, if convened upon a Members' requisition, shall be dissolved and in any other case it shall stand adjourned to the same day in the next week at the same time and/or place or to such
other day, time and/or place as the Directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting to commence, the Members present shall be a quorum.

23.5 The Directors may, at any time prior to the time appointed for the meeting to commence, appoint any Person to
act as chairman of a general meeting of the Company or, if the Directors do not make any such appointment, the chairman, if any, of the Board shall preside as chairman at such general meeting. If there is no such chairman, or if he shall not be
present within fifteen minutes after the time appointed for the meeting to commence, or is unwilling to act, the Directors present shall elect one of their number to be chairman of the meeting.

23.6 If no Director is willing to act as chairman or if no Director is present within fifteen minutes after the time
appointed for the meeting to commence, the Members present shall choose one of their number to be chairman of the meeting.

23.7 The chairman may, with the consent of a meeting at which a quorum is present (and shall if so directed by the
meeting) adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

23.8 When a general meeting is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in
the case of an original meeting. Otherwise it shall not be necessary to give any such notice of an adjourned meeting.

23.9 A resolution put to the vote of the meeting shall be decided on a show of hands unless before, or on the
declaration of the result of, the show of hands, the chairman demands a poll, or any other Member or Members collectively present in person or by proxy (or

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in the case of a corporation or other non-natural person, by its duly authorised representative or proxy) and holding at least ten percent of the voting power of the outstanding Shares giving a right to attend and vote at the meeting demand a poll.

23.10 Unless a poll is duly demanded and the demand is not withdrawn a declaration by the chairman that a resolution
has been carried or carried unanimously, or by a particular majority, or lost or not carried by a particular majority, an entry to that effect in the minutes of the proceedings of the meeting shall be conclusive evidence of that fact without proof
of the number or proportion of the votes recorded in favour of or against such resolution.

23.11 The demand for a poll may be withdrawn.

23.12 Except on a poll demanded on the election of a chairman or on a question of adjournment, a poll shall be taken
as the chairman directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded.

23.13 A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith. A poll
demanded on any other question shall be taken at such date, time and place as the chairman of the general meeting directs, and any business other than that upon which a poll has been demanded or is contingent thereon may proceed pending the taking
of the poll.

23.14 In the case of an equality of votes, whether on a show of hands or on a poll, the chairman shall be entitled to
a second or casting vote.

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|:---|:---|
| **24** | **Votes of Members**  |

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24.1 Subject to any rights or restrictions attached to any Shares, with respect to any matter to which any Member is
entitled to vote, on a show of hands every such Member who (being an individual) is present in person or by proxy or, if a corporation or other non- natural person is present by its duly authorised
representative or by proxy, shall have the number of votes calculated in accordance with <u>Article 11.2</u>.

24.2 Any matter brought before any meeting of the Members shall be decided by the affirmative vote of Members
holding a majority of the voting power of the Company's capital stock present in person or represented by proxy at the meeting and entitled to vote on such matter, voting as a single class, unless the matter is one upon which, by express
provision of law, the Memorandum or these Articles (including <u>Article 11.1</u>), a different vote is required, in which case such express provision shall govern and control the decision of such matter.

24.3 In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy
(or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall
be determined by the order in which the names of the holders stand in the Register of Members.

24.4 A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in
lunacy, may vote, whether on a show of hands or on a poll,

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by his committee, receiver, curator bonis or other Person on such Member's behalf appointed by that court, and any such committee, receiver, curator bonis or other Person may vote by proxy.

24.5 No Person shall be entitled to vote at any general meeting unless he is registered as a Member on the record
date for such meeting nor unless all calls or other monies then payable by him in respect of Shares have been paid.

24.6 No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned
general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairman whose decision shall be
final and conclusive.

24.7 On a poll or on a show of hands votes may be cast either personally or by proxy (or in the case of a
corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a
meeting. Where a Member appoints more than one proxy the instrument of proxy shall state which proxy is entitled to vote on a show of hands and shall specify the number of Shares in respect of which each proxy is entitled to exercise the related
votes.

24.8 On a poll, a Member holding more than one Share need not cast the votes in respect of his Shares in the same
way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing him, a proxy
appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which he is appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which he is
appointed.

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|:---|:---|
| **25** | **Proxies**  |

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25.1 The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or
of his attorney duly authorised in writing, or, if the appointor is a corporation or other non natural person, under the hand of its duly authorised representative. A proxy need not be a Member.

25.2 The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent
out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy
relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the
instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the Person named in the instrument proposes to vote.

25.3 The chairman may in any event at his discretion declare that an instrument of proxy

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shall be deemed to have been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairman, shall be invalid.

25.4 The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may
approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll.

25.5 Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous
death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or
transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.

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|:---|:---|
| **26** | **Corporate Members**  |

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Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such Person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the Person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as the corporation could exercise if it were an individual Member.

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|:---|:---|
| **27** | **Shares that May Not be Voted**  |

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Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding Shares at any given time.

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|:---|:---|
| **28** | **Directors**  |

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There shall be a Board consisting of eleven people (exclusive of alternate Directors); *provided*, *however*, that the Company may by Ordinary Resolution increase or reduce the limits in the number of Directors. The Directors of the Company shall be determined in writing by, or appointed by a resolution of, the Common Shareholders holding a majority of the then outstanding Common Shares.

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|:---|:---|
| **29** | **Powers of Directors**  |

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29.1 Subject to the provisions of the Statute, the Memorandum and these Articles, the Shareholders Agreement and any
directions given by Special Resolution, the business of the Company shall be managed by the Directors who may exercise all the powers of the Company. No alteration of the Memorandum, Articles or Shareholders Agreement and no such direction shall
invalidate any prior act of the Directors which would have been valid if that alteration had not been made or that direction had not been given. A duly convened meeting of Directors at which a quorum is present may exercise all powers exercisable by
the Directors.

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29.2 All cheques, promissory notes, drafts, bills of exchange and other negotiable or transferable instruments and
all receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed as the case may be in such manner as the Directors shall determine by resolution.

29.3 The Directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any Director
who has held any other salaried office or place of profit with the Company or to his widow or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

29.4 The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its
undertaking, property and assets (present and future) and uncalled capital or any part thereof and to issue debentures, debenture stock, mortgages, bonds and other such securities whether outright or as security for any debt, liability or obligation
of the Company or of any third party.

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|:---|:---|
| **30** | **Appointment and Removal of Directors**  |

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30.1 Subject to the provisions of the Shareholders Agreement, the Company may by Ordinary Resolution appoint any
person to be a Director or may by Ordinary Resolution remove any Director.

30.2 Subject to the provisions of the Shareholders Agreement, the Directors may appoint any person to be a Director,
either to fill a vacancy or as an additional Director provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with these Articles as the maximum number of Directors, provided that the
Director shall only make such appointment if permitted by the terms of the Shareholders Agreement.

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|:---|:---|
| **31** | **Vacation of Office of Director**  |

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The office of a Director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Director gives notice in writing to the Company that he resigns the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Director absents himself (for the avoidance of doubt, without being represented by proxy or an alternate
Director appointed by him) from three consecutive meetings of the Directors without special leave of absence from the Directors, and the Directors pass a resolution that he has by reason of such absence vacated office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Director dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Director is found to be or becomes of unsound mind; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to the provisions of the Shareholders Agreement, all of the other Directors (being not less than two in
number) determine that he should be removed as a Director, either by a resolution passed by all of the other Directors at a meeting of the Directors duly convened and held in accordance with these Articles or by a resolution in writing signed by all
of the other Directors.

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|:---|:---|
| **32** | **Proceedings of Directors**  |

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32.1 At all meetings of the Board, a majority of Directors shall constitute a quorum for the transaction of
business, and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Directors, unless the matter is one upon which, by express provision of law, the Memorandum or these Articles (including <u>Article 11.1</u>), a different vote is required, in which case such express provision shall govern and control the decision of such matter. If a quorum shall not be present at any meeting of the Board, the Directors present thereat may adjourn
the meeting from time to time, without notice other than announcement at the meeting of the time and place of the adjourned meeting, until a quorum shall be present. A quorum, once established, shall not be broken by the withdrawal of enough
Directors to leave less than a quorum.

32.2 Subject to the provisions of these Articles, the Directors may regulate their proceedings as they think fit.
Questions arising at any meeting shall be decided by a majority of votes.

32.3 A person may participate in a meeting of the Directors or any committee of Directors by conference telephone or
other communications equipment by means of which all the persons participating in the meeting can communicate with each other at the same time. Participation by a person in a meeting in this manner is treated as presence in person at that meeting.
Unless otherwise determined by the Directors the meeting shall be deemed to be held at the place where the chairman is located at the start of the meeting.

32.4 A resolution in writing (in one or more counterparts) signed by all the Directors or all the members of a
committee of the Directors or, in the case of a resolution in writing relating to the removal of any Director or the vacation of office by any Director, all of the Directors other than the Director who is the subject of such resolution (an alternate
Director being entitled to sign such a resolution on behalf of his appointor and if such alternate Director is also a Director, being entitled to sign such resolution both on behalf of his appointer and in his capacity as a Director) shall be as
valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as the case may be, duly convened and held.

32.5 A Director or alternate Director may, or other officer of the Company on the direction of a Director or
alternate Director shall, call a meeting of the Directors by at least two days' notice in writing to every Director and alternate Director which notice shall set forth the general nature of the business to be considered unless notice is waived
by all the Directors (or their alternates) either at, before or after the meeting is held. To any such notice of a meeting of the Directors all the provisions of these Articles relating to the giving of notices by the Company to the Members shall
apply *mutatis mutandis.* 

32.6 The continuing Directors (or a sole continuing Director, as the case may be) may act notwithstanding any
vacancy in their body, but if and so long as their number is reduced below the number fixed by or pursuant to these Articles as the necessary quorum of

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Directors the continuing Directors or Director may act for the purpose of increasing the number of Directors to be equal to such fixed number, or of summoning a general meeting of the Company, but for no other purpose.

32.7 The Directors may elect a chairman of their board and determine the period for which he is to hold office; but
if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for the meeting to commence, the Directors present may choose one of their number to be chairman of the meeting.

32.8 All acts done by any meeting of the Directors or of a committee of the Directors (including any person acting
as an alternate Director) shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any Director or alternate Director, and/or that they or any of them were disqualified, and/or had vacated their office
and/or were not entitled to vote, be as valid as if every such person had been duly appointed and/or not disqualified to be a Director or alternate Director and/or had not vacated their office and/or had been entitled to vote, as the case may be.

32.9 A Director but not an alternate Director may be represented at any meetings of the Board by a proxy appointed
in writing by him. The proxy shall count towards the quorum and the vote of the proxy shall for all purposes be deemed to be that of the appointing Director.

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|:---|:---|
| **33** | **Presumption of Assent**  |

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A Director or alternate Director who is present at a meeting of the Board at which action on any Company matter is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment thereof or shall forward such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director or alternate Director who voted in favour of such action.

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|:---|:---|
| **34** | **Directors' Interests**  |

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34.1 A Director or alternate Director may hold any other office or place of profit under the Company (other than the
office of Auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine.

34.2 A Director or alternate Director may act by himself or by, through or on behalf of his firm in a professional
capacity for the Company and he or his firm shall be entitled to remuneration for professional services as if he were not a Director or alternate Director.

34.3 A Director or alternate Director may be or become a director or other officer of or otherwise interested in any
company promoted by the Company or in which the Company may be interested as a shareholder, a contracting party or otherwise, and no such Director or alternate Director shall be accountable to the Company for any remuneration or other benefits
received by him as a director or officer of, or from his interest in, such other company.

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34.4 No person shall be disqualified from the office of Director or alternate Director or prevented by such office
from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction entered into by or on behalf of the Company in which any Director or alternate Director shall be in any way
interested be or be liable to be avoided, nor shall any Director or alternate Director so contracting or being so interested be liable to account to the Company for any profit realised by or arising in connection with any such contract or
transaction by reason of such Director or alternate Director holding office or of the fiduciary relationship thereby established. A Director (or his alternate Director in his absence) shall be at liberty to vote in respect of any contract or
transaction in which he is interested provided that the nature of the interest of any Director or alternate Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

34.5 A general notice that a Director or alternate Director is a shareholder, director, officer or employee of any
specified firm or company and is to be regarded as interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest,
and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

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|:---|:---|
| **35** | **Minutes**  |

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The Directors shall cause minutes to be made in books kept for the purpose of recording all appointments of officers made by the Directors, all proceedings at meetings of the Company or the holders of any class of Shares and of the Directors, and of committees of the Directors, including the names of the Directors or alternate Directors present at each meeting.

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| | |
|:---|:---|
| **36** | **Delegation of Directors' Powers**  |

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36.1 The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committee consisting of one or more Directors. They may also delegate to any managing director or any Director holding any other executive office such of their powers, authorities and
discretions as they consider desirable to be exercised by him provided that an alternate Director may not act as managing director and the appointment of a managing director shall be revoked forthwith if he ceases to be a Director. Any such
delegation may be made subject to any conditions the Directors may impose and either collaterally with or to the exclusion of their own powers and any such delegation may be revoked or altered by the Directors. Subject to any such conditions, the
proceedings of a committee of Directors shall be governed by these Articles regulating the proceedings of Directors, so far as they are capable of applying.

36.2 The Directors may establish any committees, local boards or agencies or appoint any person to be a manager or
agent for managing the affairs of the Company and may appoint any person to be a member of such committees, local boards or agencies. Any such appointment may be made subject to any conditions the Directors may impose, and either collaterally with
or to the exclusion of their own powers and any such appointment may be revoked or altered by the Directors. Subject to any such conditions, the proceedings of any such committee, local board or agency shall be governed by these Articles regulating
the proceedings of Directors, so far as they are capable of applying.

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36.3 The Directors may by power of attorney or otherwise appoint any person to be the agent of the Company on such
conditions as the Directors may determine, provided that the delegation is not to the exclusion of their own powers and may be revoked by the Directors at any time.

36.4 The Directors may by power of attorney or otherwise appoint any company, firm, Person or body of Persons,
whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors
under these Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of Persons dealing with any such
attorneys or authorised signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of the powers, authorities and discretions vested in him.

36.5 The Directors may appoint such officers of the Company (including, for the avoidance of doubt and without
limitation, any secretary) as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think fit. Unless otherwise specified in the
terms of his appointment an officer of the Company may be removed by resolution of the Directors or Members. An officer of the Company may vacate his office at any time if he gives notice in writing to the Company that he resigns his office.

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| | |
|:---|:---|
| **37** | **Alternate Directors**  |

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37.1 Any Director (but not an alternate Director) may by writing appoint any other Director, or any other person
willing to act, to be an alternate Director and by writing may remove from office an alternate Director so appointed by him.

37.2 An alternate Director shall be entitled to receive notice of all meetings of Directors and of all meetings of
committees of Directors of which his appointor is a member, to attend and vote at every such meeting at which the Director appointing him is not personally present, to sign any written resolution of the Directors, and generally to perform all the
functions of his appointor as a Director in his absence.

37.3 An alternate Director shall cease to be an alternate Director if his appointor ceases to be a Director.

37.4 Any appointment or removal of an alternate Director shall be by notice to the Company signed by the Director
making or revoking the appointment or in any other manner approved by the Directors.

37.5 Subject to the provisions of these Articles, an alternate Director shall be deemed for all purposes to be a
Director and shall alone be responsible for his own acts and defaults and shall not be deemed to be the agent of the Director appointing him.

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|:---|:---|
| **38** | **No Minimum Shareholding**  |

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The Company in general meeting may fix a minimum shareholding required to be held by a Director, but unless and until such a shareholding qualification is fixed a Director is not required to hold Shares.

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| | |
|:---|:---|
| **39** | **Remuneration of Directors**  |

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39.1 The remuneration to be paid to the Directors, if any, shall be such remuneration as the Directors shall
determine. The Directors shall also be entitled to be paid all travelling, hotel and other expenses properly incurred by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the
Company, or separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of the Company or the discharge of their duties as a Director, or to receive a fixed allowance in respect
thereof as may be determined by the Directors, or a combination partly of one such method and partly the other.

39.2 The Directors may by resolution approve additional remuneration to any Director for any services which in the
opinion of the Directors go beyond his ordinary routine work as a Director. Any fees paid to a Director who is also counsel, attorney or solicitor to the Company, or otherwise serves it in a professional capacity shall be in addition to his
remuneration as a Director.

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| | |
|:---|:---|
| **40** | **Seal**  |

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40.1 The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of
the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some officer of the Company or other person
appointed by the Directors for the purpose.

40.2 The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each
of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used.

40.3 A Director or officer, representative or attorney of the Company may without further authority of the Directors
affix the Seal over his signature alone to any document of the Company required to be authenticated by him under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

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| | |
|:---|:---|
| **41** | **Dividends, Distributions and Reserves**  |

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41.1 <u>Dividends</u>. Subject to the Statute, this Article and <u>Article 11</u>, and except as otherwise provided
by the rights attached to any Shares, the Directors may resolve to pay Dividends and other distributions on Shares in issue and authorise payment of the Dividends or other distributions out of the funds of the Company lawfully available therefor. A
Dividend shall be deemed to be an interim Dividend unless the terms of the resolution pursuant to which the Directors resolve to pay such Dividend specifically state that such Dividend shall be a final Dividend. No Dividend or other distribution
shall be paid except out of the realised or unrealised profits of the Company, out of the share premium account or as otherwise permitted by law.

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41.2 <u>Ranking</u>. No interest or other compensation shall be allowed to any Member by reason of its holding of
Shares except pursuant to its share of Dividends as set forth below. Dividends shall not be cumulative. All cash Dividends shall be made in United States dollars. Except as otherwise provided in <u>Article 47</u>, distributions shall be made by the
Company only in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Distributions of Proceeds Generally</u>. Dividends, if and when declared, shall be paid to the Members in
the following order: (i) first, the Class C Shareholders shall be entitled to receive (pro rata for each Class C Shareholder based on the number of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares owned thereby), in respect of each Class C Convertible Preference Share or Class C-1 Convertible Preference Share,
as applicable, held thereby an amount equal to the Accreted Liquidation Preference on such Share, after giving effect to all distributions received by such Class C Shareholder in respect of such Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date thereof; (ii) second, after the full payment of all amounts under clause (i), the Class C
Shareholders shall be entitled to receive an amount in cash in exchange for the redemption of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares then outstanding (pro
rata for each Class C Shareholder based on the number of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares owned thereby) equal to the Redemption Price minus the
Accreted Liquidation Preference in respect of each Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as applicable; and (iii) finally, after the redemption of all
Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, pro rata among the Class A Shareholders, the Class B Shareholders and the Common Shareholders,
participating equally on an as-converted basis in accordance with the then-applicable Conversion Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends in connection with Liquidation Transactions</u>. Notwithstanding anything to the contrary in <u>Article 41.2(a)</u>, in connection with the consummation of a Liquidation Transaction, (i) (I) that does not constitute a Triggering Event, the Class C Shareholders shall be entitled to receive (pro rata for each Class C
Shareholder based on the number of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares owned thereby), in respect of each Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as applicable, held thereby an amount equal to the greater of (A) the Original Issue Price of such Share plus the Accreted Liquidation Preference on such Share or
(B) the amount to which such Class C Shareholder would be entitled had such Class C Convertible Preference Share or Class C-1 Convertible Preference Share been converted into Common Shares
immediately prior to the consummation of the applicable Liquidation Transaction at the then-current Conversion Rate (in each case of clause (A) and clause (B), after giving effect to all distributions received by such Class C Shareholder
in respect of such Class C Convertible Preference Share or Class C-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date thereof), and (II) that
constitutes a Triggering Event, the Class C Shareholders shall be entitled to have their Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares converted or redeemed
as described in <u>Article 18.2</u> through <u>Article 18.4</u>, (ii) after the payment,

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conversion or redemption in accordance with clause (i) has been consummated, the Class B Shareholders shall be entitled to receive, in respect of each Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, held thereby an amount equal to the greater of (A) the Original Issue Price of such Share plus the Accreted Liquidation Preference on such Share or (B) the amount to which such Class B Shareholder would be entitled had such Class B Convertible Preference Share or Class B-1 Convertible Preference Share been converted into Common Shares immediately prior to the consummation of the applicable Liquidation Transaction at the then-current Conversion Rate (in each case of clause (A) and clause (B), after giving effect to all distributions received by such Class B Shareholder in respect of such Class B Convertible Preference Share or Class B-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date thereof), (iii) after the payment, conversion or redemption in accordance with clause (i) has been consummated and all amounts pursuant to clause (ii) have been distributed, the Class A Shareholders shall be entitled to receive, in respect of each Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as applicable, held thereby an amount equal to the greater of (A) the Original Issue Price of such Share plus the Accreted Liquidation Preference on such Share or (B) the amount to which such Class A Shareholder would be entitled had such Class A Convertible Preference Share or Class A-1 Convertible Preference Share been converted into Common Shares immediately prior to the consummation of the applicable Liquidation Transaction at the then-current Conversion Rate (in each case of clause (A) and clause (B), after giving effect to all distributions received by such Class A Shareholder in respect of such Class A Convertible Preference Share or Class A-1 Convertible Preference Share, as applicable, pursuant to this <u>Article 41.2</u> prior to the date thereof), and (iv) after the payment, conversion or redemption in accordance with clause (i) has been consummated and all amounts pursuant to clauses (ii) and (iii) have been distributed, the Common Shareholders shall receive all remaining distributable amounts pro rata in accordance with the number of Common Shares held thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Same form and nature of consideration; Dividends in-kind</u>.
Dividends pursuant to <u>Articles 41.2(a)</u> and <u>41.2(b)</u> may be paid wholly or partly by the distribution of specific assets and in particular (but without limitation) by the distribution of shares, debentures, or securities of any other
company. In the case of any distribution of securities: (i) such securities that are publicly traded shall be valued at (A) the average of the last reported trade price of securities of such class on the 10 most recent trading days prior
to the date as of which their value is to be determined, or (B) if such trade price is not readily available, the average of the closing "bid" price on the 10 most recent trading days prior to the date as of which their value is to be
determined; and (ii) securities that are not publicly traded shall be valued shortly before the distribution according to their Fair Market Value. The Directors shall, in making distributions of cash and securities or more than one type of
security under any applicable provision hereof, allocate such cash and/or assets (including securities) in equal proportions among the Members except to the extent necessary to avoid a Member receiving a security that it is prohibited from holding.

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41.3 <u>Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority to Withhold</u>. The Company shall be authorized to withhold and pay over any withholding or other
taxes payable by the Company as a result of any Member's status as a Member hereunder or otherwise attributable to such Member (as determined by the Directors in its sole discretion). Any such payment withheld from a distribution to a Member
shall be deemed for all purposes of these Articles as an advance against distributions to such Member under <u>Article 41.2</u>. Any distribution deemed made pursuant to the terms of this <u>Article 41.3</u> shall be treated as actually made for
purposes of applying <u>Article 41.2</u> as of the time each such withholding is paid by the Company. Any such amounts paid by the Company to the relevant taxing authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>AEOI</u>. The Company may be required to comply with the provisions of AEOI. Each Member shall, in a timely
and accurate manner, provide information regarding such Member and its beneficial owners as well as any forms or documentation reasonably requested from time to time by the Board to enable the Company to comply with any requirements and obligations
imposed on it pursuant to AEOI, including forms and documentation which the Company may require to determine whether or not such Member's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the
relevant due diligence procedures in making such determination. The Company is authorized to take any action and pursue all remedies at its disposal to cause an individual Member to bear any or all costs attributable such Member's noncompliance
with AEOI or the Board's reasonable requests related to AEOI, and to hold back or deduct from any withdrawal or other proceeds due to any or all taxes, expenses or other costs attributable to such Member's noncompliance with AEOI and borne
by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice</u>. The Directors shall use commercially reasonable efforts to provide prompt notice to a Member
with respect to withholding or paying over taxes with respect to such Member. Neither the Company nor the Directors shall be liable for any excess taxes withheld in respect of any distribution to a Member. In the event of an overwithholding, a
Member's sole recourse shall be to apply for a refund from the appropriate taxing authority.

41.4 <u>Restricted Distributions</u>. Notwithstanding any provision to the contrary contained in these Articles, the
Company shall not make a distribution to any Member on account of its interest in the Company if such distribution would violate the Statute or other applicable law.

41.5 <u>No Interest on Clawback</u>. If a Member is obligated pursuant to the Statute or other applicable law to
return a distribution made to it where the Company is insolvent, such distribution shall be returned without application of any interest.

41.6 <u>Reserves</u>. The Directors may, before resolving to pay any Dividend or other distribution, set aside such
sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable for any purpose of the Company and pending such application may, at the discretion of the Directors, be employed in the business of the
Company.

41.7 <u>Unclaimed Dividends</u>. Any Dividend or other distribution which cannot be paid to a Member and/or which
remains unclaimed after six months from the date on which such

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Dividend or other distribution becomes payable may, in the discretion of the Directors, be paid into a separate account in the Company's name, provided that the Company shall not be constituted as a trustee in respect of that account and the Dividend or other distribution shall remain as a debt due to the Member. Any Dividend or other distribution which remains unclaimed after a period of six years from the date on which such Dividend or other distribution becomes payable shall be forfeited and shall revert to the Company.

41.8 <u>U.S. Tax Classification</u>. For U.S. federal income tax purposes, the Company is intended to be classified
as an association taxable as a corporation, and the Board shall not take any action inconsistent with such classification without the prior consent of the Members.

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|:---|:---|
| **42** | **Capitalisation**  |

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The Directors may at any time capitalise any sum standing to the credit of any of the Company's reserve accounts or funds (including the share premium account and capital redemption reserve fund) or any sum standing to the credit of the profit and loss account or otherwise available for distribution; appropriate such sum to Members in the proportions in which such sum would have been divisible amongst such Members had the same been a distribution of profits by way of Dividend or other distribution; and apply such sum on their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid-up to and amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation, with full power given to the Directors to make such provisions as they think fit in the case of Shares becoming distributable in fractions (including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for such capitalisation and matters incidental or relating thereto and any agreement made under such authority shall be effective and binding on all such Members and the Company.

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|:---|:---|
| **43** | **Form of Payments; Setoff**  |

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Unless otherwise agreed by the Directors, all payments required to be made by any Member to the Company shall be made in immediately available funds denominated in United States dollars by certified bank check or by wire transfer to such account as may be designated from time to time by the Directors. In the sole discretion of the Directors, the Directors may apply all or any portion of any payment otherwise to be paid by the Company under these Articles to any Member to amounts owed by such Member to the Company pursuant to these Articles.

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|:---|:---|
| **44** | **Books of Account**  |

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44.1 The Directors shall cause proper books of account (including, where applicable, material underlying
documentation including contracts and invoices) to be kept with respect to all sums of money received and expended by the Company and the matters in respect of which the receipt or expenditure takes place, all sales and purchases of goods by the
Company and the assets and liabilities of the Company. Such books of account must be retained for a minimum period of six years from the date on which they are prepared. Proper books shall not be deemed to be kept if there are not kept such books of
account as are necessary to give a true and fair view of the state of the Company's affairs and to explain its transactions.

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44.2 The Directors shall determine whether and to what extent and at what times and places and under what conditions
or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or book or document of the Company
except as conferred by Statute or authorised by the Directors or by the Company in general meeting.

44.3 The Directors may cause to be prepared and to be laid before the Company in general meeting profit and loss
accounts, balance sheets, group accounts (if any) and such other reports and accounts as may be required by law.

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|:---|:---|
| **45** | **Audit**  |

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45.1 The Directors may appoint an Auditor of the Company who shall hold office on such terms as the Directors
determine.

45.2 Every Auditor of the Company shall have a right of access at all times to the books and accounts and vouchers
of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance of the duties of the Auditor.

45.3 Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their
appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members.

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|:---|:---|
| **46** | **Notices**  |

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46.1 Notices shall be in writing and may be given by the Company to any Member either personally or by sending it by
courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Any notice, if posted from one country to another, is to be sent by airmail.

46.2 Where a notice is sent by courier, service of notice shall be deemed to be effected by delivery of the notice
to a courier company, and shall be deemed to have been received on the third day (not including Saturdays or Sundays or public holidays) following the day on which the notice was delivered to the courier. Where a notice is sent by post, service of
the notice shall be deemed to be effected by properly addressing, pre paying and posting a letter containing the notice, and shall be deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays in the Cayman
Islands) following the day on which the notice was posted. Where a notice is sent by cable, telex or fax, service of the notice shall be deemed to be effected by properly addressing and sending such notice and shall be deemed to have been received
on the same day that it was transmitted. Where a notice is given by e-mail service shall be

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deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged by the recipient.

46.3 A notice may be given by the Company to the Person or Persons which the Company has been advised are entitled
to a Share or Shares in consequence of the death or bankruptcy of a Member in the same manner as other notices which are required to be given under these Articles and shall be addressed to them by name, or by the title of representatives of the
deceased, or trustee of the bankrupt, or by any like description at the address supplied for that purpose by the Persons claiming to be so entitled, or at the option of the Company by giving the notice in any manner in which the same might have been
given if the death or bankruptcy had not occurred.

46.4 Notice of every general meeting shall be given in any manner authorised by these Articles to every holder of
Shares carrying an entitlement to receive such notice on the record date for such meeting except that in the case of joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members and every Person
upon whom the ownership of a Share devolves by reason of his being a legal personal representative or a trustee in bankruptcy of a Member where the Member but for his death or bankruptcy would be entitled to receive notice of the meeting, and no
other Person shall be entitled to receive notices of general meetings.

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|:---|:---|
| **47** | **Winding Up**  |

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47.1 The Company shall be wound up and subsequently dissolved the liquidator shall apply the assets of the Company
in satisfaction of creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up the of the Company assets shall be distributed, as realized, in the following order and
priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to creditors of the Company, including Members who are creditors, to the extent permitted by law, in
satisfaction of liabilities of the Company (whether by payment thereof or the making of reasonable provision for payment thereof) other than liabilities for which reasonable provision for payment has been made and liabilities for distributions to
Members under <u>Article 41.1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Members in accordance with <u>Article 41.1</u>.

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|:---|:---|
| **48** | **Indemnity and Insurance**  |

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48.1 Every Director and officer of the Company (which for the avoidance of doubt, shall not include auditors of the
Company), together with every former Director and former officer of the Company (each an "**Indemnified Person**") shall be indemnified out of the assets of the Company against any liability, action, proceeding, claim, demand, costs,
damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own
actual fraud or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying out of their functions unless that liability arises through
the actual fraud or wilful

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default of such Indemnified Person. No Person shall be found to have committed actual fraud or wilful default under this Article unless or until a court of competent jurisdiction shall have made a finding to that effect.

48.2 The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs and
expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the
Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this
Article. If it shall be determined by a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with
respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person.

48.3 The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or
other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such Person in respect of any negligence, default, breach of duty or breach of trust of which such Person may be guilty in relation to
the Company.

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|:---|:---|
| **49** | **Financial Year**  |

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The fiscal year of the Company shall be the calendar year. The Directors shall keep or cause to be kept complete and accurate books and records reflecting all activities of the Company for a period of six years following dissolution of the Company. The Members shall have the right to inspect such books and records to the extent provided in the Statute, these Articles and the Shareholders Agreement.

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| | |
|:---|:---|
| **50** | **Transfer by Way of Communication**  |

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If the Company is exempted as defined in the Statute, it shall, subject to the provisions of the Statute and with the approval of a Special Resolution, have the power to register by way of continuation as a body corporate under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

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|:---|:---|
| **51** | **Inability to Determine Rates; Benchmark Replacement**  |

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51.1 Subject to <u>Article 51.2</u>, if, on or prior to the first day of a quarterly measurement period, the Company
determines (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof, then the Company will promptly so notify the Class C Shareholders. Upon
notice thereof, any outstanding affected Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares will be deemed to bear interest at Daily Simple SOFR at the end of the
applicable quarterly measurement period.

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51.2 Notwithstanding anything to the contrary herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to any setting
of the then-current Benchmark, then (i) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will
replace such Benchmark for all purposes hereunder in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, these Articles and (ii) if a Benchmark
Replacement is determined in accordance with clause (b) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of
any Benchmark setting at or after 5:00 p.m. on the fifth Business Day after the date notice of such Benchmark Replacement is provided to the Class C Shareholders without any amendment to, or further action or consent of any Class C
Shareholder, these Articles so long as the Company has not received, by such time, written notice of objection to such Benchmark Replacement from the Required Class C Shareholders. If the Benchmark Replacement is Daily Simple SOFR, all interest
payments will be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Company
will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein, any amendments implementing such Conforming Changes will become effective without any further action or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company will promptly notify the Class C Shareholders of (i) the implementation of any Benchmark
Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Any determination, decision or election that may be made by the Company pursuant
to this <u>Article 51</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain
from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any Class C Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If no Term SOFR is available for a quarterly measurement period, the applicable Term SOFR Reference Rate shall
be the Interpolated Term SOFR for such quarterly measurement period.

## Exhibit 3.4

**Exhibit 3.4** 

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**MEMORANDUM AND ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED** [\*] **AND EFFECTIVE ON** [\*]**)**

------

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**MEMORANDUM OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED** [\*] **AND EFFECTIVE ON** [\*]**)**

1 The name of the Company is Accelerant Holdings.

2 The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place as the Directors may decide.

3 The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the laws of the Cayman Islands.

4 Subject to the following provisions of this Memorandum, the Company shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit, as provided by Section 27(2) of the Companies Act.

5 Nothing in this Memorandum shall permit the Company to carry on a business for which a licence is required under the laws of the Cayman Islands unless duly licensed.

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| | |
|:---|:---|
| 6 | The Company shall not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the Company carried on outside the Cayman Islands; provided that nothing in this clause shall be construed as to prevent the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands.  |

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| | |
|:---|:---|
| 7 | The liability of each Member is limited to the amount unpaid on such Member's shares.  |

---

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| | |
|:---|:---|
| 8 | The authorised share capital of the Company is US$[•] divided into [•] Class A common shares of a par value of US$0.0001 per share and [•] Class B common shares of a par value of US$0.0001 per share and [•] preference shares of a par value of US$0.0001 per share.  |

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9 The Company has the power to register by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

10 Capitalised terms that are not defined in this Amended and Restated Memorandum of Association bear the same meaning as those given in the Amended and Restated Articles of Association of the Company.

------

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED** [\*] **AND EFFECTIVE ON** [\*]**)**

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| | |
|:---|:---|
| **1** | **Interpretation**  |

---

1.1 In the Articles Table A in the First Schedule to the Statute does not apply and, unless there is something in
the subject or context inconsistent therewith:

---

| | |
|:---|:---|
| **"Affiliate"** | means (i) in the case of a natural person, such person's parents, parents-in-law, spouse, children or grandchildren, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by such person or any of the foregoing, and (ii) in the case of a corporation, partnership or other entity or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. The term "control" shall mean the ownership, directly or indirectly, of shares possessing more than fifty per cent (50%) of the voting power of the corporation, or the partnership or other entity (other than, in the case of a corporation, shares having such power only by reason of the happening of a contingency), or having the power to control the management or elect a majority of members to the board of directors or equivalent decision-making body of such corporation, partnership or other entity. |
| **"Altamont Entities"** | means Altamont Capital Partners and any Affiliate thereof. |

---

------

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| | |
|:---|:---|
| **"Applicable Law"** | means, with respect to any person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees or orders of any governmental authority applicable to such person. |
| **"Articles"** | means the Amended and Restated Articles of Association of the Company, as from time to time altered or added to in accordance with the Statute and the Articles. |
| **"Audit Committee"** | means the audit committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
| **"Auditor"** | means the person for the time being performing the duties of auditor of the Company (if any). |
| **"Business Day"** | means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorised or obligated by law to close in New York City. |
| **"Class A Common Shares"** | class A common shares in the capital of the Company having the rights provided for in these Articles; |
| **"Class B Common Shares"** | class B common shares in the capital of the Company having the rights provided for in these Articles; |
| **"Clearing House"** | means a clearing house recognised by the laws of the jurisdiction in which the Shares (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction. |
| **"Common Shares"** | Class A Common Shares, Class B Common Shares and shares of such other classes as may from time to time be designated by the Directors pursuant to these Articles as being common shares for the purposes of Article 4.2; |
| **"Company"** | means the above named company. |
| **"Company's Website"** | means the website of the Company, the address or domain name of which has been notified to Members. |
| **"Compensation Committee"** | means the compensation committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |

---

------

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| | |
|:---|:---|
| **"Controlled Company"** | has the meaning given to it in the rules of the Designated Stock Exchange. |
| **"Designated Stock Exchange"** | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. |
| **"Directors"** | means the directors for the time being of the Company. |
| **"Dividend"** | means any dividend (whether interim or final) resolved to be paid on shares pursuant to the Articles. |
| **"electronic communication"** | means a communication sent by electronic means, including electronic posting to the Company's Website, transmission to any number, address or internet website (including the website of the Securities and Exchange Commission) or other electronic delivery methods as otherwise decided and approved by the Directors. |
| **"electronic record"** | has the same meaning as in the Electronic Transactions Act. |
| **"Electronic Transactions Act"** | means the Electronic Transactions Act (As Revised) of the Cayman Islands. |
| **"Exchange Act"** | means the United States Securities Exchange Act of 1934, as amended, or any similar federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. |
| **"Independent Director"** | has the same meaning as in the rules and regulations of the Designated Stock Exchange or in Rule 10A-3 under the Exchange Act, as the case may be. |
| **"IPO"** | means the Company's initial public offering of securities. |
| **"Member"** | has the same meaning as in the Statute. |
| **"Memorandum of Association"** | means the amended and restated memorandum of association of the Company. |

---

------

---

| | |
|:---|:---|
| **"Nominating and Corporate Governance Committee"** | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
| **"Officer"** | means a person appointed to hold an office in the Company. |
| **"Ordinary Resolution"** | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. |
| **"Preference Share"** | means a preference share in the share capital of the Company designated as preference share, and having the rights provided for in the Articles. |
| **"Register of Members"** | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. |
| **"Registered Office"** | means the registered office for the time being of the Company. |
| **"Representative"** | means a representative of the Underwriters. |
| **"Seal"** | means the common seal of the Company and includes every duplicate seal. |
| **"Securities and Exchange Commission"** | means the United States Securities and Exchange Commission. |
| **"Securities Act"** | means the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. |
| **"Share"** | means any share in the capital of the Company, including the Common Shares, Preference Shares and shares of other classes. |

---

------

---

| | |
|:---|:---|
| **"signed"** | means a signature or representation of a signature affixed by mechanical means or an electronic symbol or process attached to or logically associated with an electronic communication and executed or adopted by a person with the intent to sign the electronic communication. |
| **"Special Resolution"** | has the same meaning as in the Statute, and includes a unanimous written resolution. |
| **"Statute"** | means the Companies Act (As Revised) of the Cayman Islands. |
| **"Treasury Share"** | means a share held in the name of the Company as a treasury share in accordance with the Statute. |
| **"Underwriter"** | means an underwriter of the IPO from time to time and any successor underwriter. |
| **"Voting Power Threshold"** | means ownership or control, or deemed ownership or control, of more than 9.9% of the aggregate voting power exercisable at a general meeting of the Company. |

---

In the Articles, save where the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing persons include corporations as well as any other legal or natural person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "written" and "in writing" include all modes of representing or reproducing words in
visible form, including in the form of an electronic record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "shall" shall be construed as imperative and "may" shall be construed as permissive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) references to provisions of any law or regulation shall be construed as references to those provisions as
amended, modified, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any phrase introduced by the terms "including", "include", "in particular" or any
similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the term "and/or" is used to mean both "and" as well as "or." The use of
"and/or" in certain contexts in no respects qualifies or modifies the use of the terms "and" or "or" in others. The term "or" shall not be interpreted to be exclusive and the term "and" shall not be
interpreted to require the conjunctive (in each case, unless the context otherwise requires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) headings are inserted for reference only and shall be ignored in construing the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any requirements as to delivery under the Articles include delivery in the form of an electronic record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any requirements as to execution or signature under the Articles including the execution of the Articles
themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) sections 8 and 19(3) of the Electronic Transactions Act shall not apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the term "clear days" in relation to the period of a notice means that period excluding the day when
the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the term "holder" in relation to a Share means a person whose name is entered in the Register of
Members as the holder of such Share.

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| | |
|:---|:---|
| **2** | **Formation Expenses**  |

---

The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about the formation and establishment of the Company including the expenses of registration.

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| | |
|:---|:---|
| **3** | **Issue of Shares and other Securities**  |

---

3.1 Subject to the provisions, if any, in the Memorandum (and to any direction that may be given by the Company in
general meeting) and, where applicable, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, and without prejudice to
any rights attached to any existing Shares, the Directors may, in their absolute discretion and without approval of the holders of Common Shares, allot, issue, grant options over or otherwise dispose of Shares (including fractions of a Share) with
or without preferred, deferred or other rights or restrictions, whether in regard to Dividends or other distributions, voting, return of capital or otherwise, any or all of which may be greater than the powers and rights associated with the Common
Shares, to such persons, at such times and on such other terms as they think proper, which shall be conclusively evidenced by their approval of the terms thereof, and may also (subject to the Statute and the Articles) vary such rights.

------

3.2 The Company may issue rights, options, warrants or convertible securities or securities of similar nature
conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company on such terms as the Directors may from time to time determine.

3.3 The Company shall not issue Shares in bearer form and shall only issue Shares as fully paid.

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| | |
|:---|:---|
| **4** | **Class A Common Shares and Class B Common Shares**  |

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4.1 Holders of Class A Common Shares and Class B Common Shares have the right to receive notice of,
attend, speak and vote at general meetings of the Company. Holders of Class A Common Shares and Class B Common Shares shall at all times vote together as one class on all resolutions submitted to a vote by the Members in general meetings.
Each Class A Common Share shall entitle the holder to one (1) vote on all matters subject to a vote at general meetings of the Company, and each Class B Common Share shall entitle the holder to ten votes on all matters subject to a
vote at general meetings of the Company, provided that where the voting power of any holder of Class A or Class B Common Shares other than the Altamont Entities would otherwise exceed (i.e., but for this Article 4.1) the Voting Power
Threshold for any matter, the voting rights of the Class A or Class B Common Shares owned or controlled by such holder shall be ratably reduced so as not to exceed Voting Power Threshold in respect of any vote on such matter.

4.2 Without prejudice to any special rights conferred thereby on the holders of any other shares or class of shares
established pursuant to the Memorandum and/or these Articles from time to time, holders of Common Shares shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be entitled to such dividends as the Directors may from time to time declare;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event of a winding-up or dissolution of the Company, whether
voluntary or involuntary or for the purposes of a reorganisation or otherwise or upon any distribution of capital, be entitled to the surplus assets of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) generally be entitled to enjoy all of the rights attaching to shares.

4.3 In no event shall Class A Common Shares be convertible into Class B Common Shares.

4.4 Class B Common Shares shall be convertible into Class A Common Shares as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  ***Right of Conversion*** . Class B Common Shares shall be convertible into the same number of
Class A Common Shares, on a share-to-share basis, in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a holder of Class B Common Shares has the right to call upon the Company to effect a conversion of all or
any of their Class B Common Shares which right shall be exercised, at any time after issue and without payment of any additional sum, by notice in writing given to the Company (and which conversion shall be effected by the Company promptly upon
delivery of the said notice);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a Class B Common Share shall automatically convert into a Class A Common Share immediately and
without further action by the holder upon the registration of any transfer of a Class B Common Share (whether or not for value and whether or not the certificate(s) (if any) representing such Class B Common Share are surrendered to the
Company) in the Register of Members, other than the following permitted transfers ()"**Permitted Transfer**" and the transferee, a "**Permitted Transferee** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a transfer (i) to the holder of Class B Common Shares, and/or (ii) to an Affiliate of a holder
of the Class B Common Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a transfer to one or more trustees of a trust established for the benefit of the holder or an Affiliate of the
holder of the Class B Common Share;

For the avoidance of doubt, the creation of any pledge, charge, encumbrance or other security interest or third party right of whatever description on any Class B Common Shares to secure a holder's contractual or legal obligations shall not be deemed to be a transfer unless and until any such pledge, charge, encumbrance or other third party right is enforced and results in such third party (or its nominee) holding legal title to the related Class B Common Shares, in which case all the related Class B Common Shares shall be automatically and immediately converted into the same number of Class A Common Shares; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if at any time following the consummation of the IPO, the holders of the Class B Common Shares immediately
prior to the consummation of the IPO hold less than 50% of the total Class B Common Shares then outstanding, the Class B Common Shares then in issue shall automatically and immediately convert into Class A Common Shares and no
Class B Common Shares shall be issued by the Company thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if on the date which is the third anniversary of the consummation of the IPO there are any Class B Common
Shares in issue, all of the Class B Common Shares then in issue shall automatically and immediately convert into Class A Common Shares and no Class B Common Shares shall be issued by the Company thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)  ***Mechanics of Conversion*** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Before any holder of Class B Common Shares shall be entitled to convert such Class B Common Shares
into Class A Common Shares pursuant to sub-paragraph 4.4(a) (1) above, the holder shall, if available, surrender the certificate or certificates therefor (if any), duly endorsed (where applicable),
at the registered office of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Upon the occurrence of one of the bases of conversion provided for in paragraph 4.4(a) above, the Company shall
enter or procure the entry of the name of the relevant holder of Class B Common Shares as the holder of the relevant number of Class A Common Shares resulting from the conversion of the Class B Common Shares in, and make any other
necessary and consequential changes to, the Register of Members and shall procure that certificate(s) in respect of the relevant Class A Common Shares, together with a new certificate for any unconverted Class B Common Shares comprised in
the certificate(s) surrendered by the holder of the Class B Common Shares, are issued to the holders of the Class A Common Shares and Class B Common Shares, as the case may be, if so requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any conversion of Class B Common Shares into Class A Common Shares pursuant to this Article 4 shall
be effected by means of the compulsory redemption without notice of Class B Common Shares of a holder and, on behalf of such holder, automatic application of such redemption proceeds in paying for such new Class A Common Shares into which
the Class B Common Shares have been converted or exchanged at a price per Class B Common Share necessary to give effect to a conversion or exchange calculated on the basis that the Class A Common Shares to be issued as part of the
conversion or exchange will be issued at par.

4.5 No subdivision of Class A Common Shares into shares of an amount smaller than the nominal or par value of
such shares at the relevant time shall be effected unless Class B Common Shares are concurrently and similarly subdivided in the same proportion and the same manner, and no subdivision of Class B Common Shares into shares of an amount
smaller than the nominal or par value of such shares at the relevant time shall be effected unless Class A Common Shares are concurrently and similarly subdivided in the same proportion and the same manner.

4.6 No consolidation of Class A Common Shares into shares of an amount larger than the nominal or par value of
such shares at the relevant time shall be effected unless Class B Common Shares are concurrently and similarly consolidated in the same proportion and the same manner, and no consolidation of Class B Common Shares into shares of an amount
larger than the nominal or par value of such shares at the relevant time may be effected unless Class A Common Shares are concurrently and similarly consolidated in the same proportion and the same manner.

4.7 In the event that a dividend or other distribution is paid by the issue of Class A Common Shares or
Class B Common Shares or rights to acquire Class A Common Shares or Class B Common Shares (i) holders of Class A Common Shares shall receive Class A Common Shares or rights to acquire Class A Common Shares, as the
case may be; and (ii) holders of Class B Common Shares shall receive Class B Common Shares or rights to acquire Class B Common Shares, as the case may be.

4.8 Save and except for voting rights and conversion rights and as otherwise set out in this Article 4,
Class A Common Shares and the Class B Common Shares shall rank pari passu and shall have the same rights, preferences, privileges and restrictions and share ratably and otherwise be identical in all respects as to all matters.

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| | |
|:---|:---|
| **5** | **Preference Shares**  |

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5.1 Preference Shares may be issued from time to time in one or more series, each of such series to have such
voting powers (full or limited or without voting powers), designations, preferences and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof as are stated and expressed, or in any
resolution or resolutions providing for the issue of such series adopted by the Directors as hereinafter provided.

5.2 Authority is hereby granted to the Directors, subject to the provisions of the Memorandum, the Articles and
applicable law, to create one or more series of Preference Shares and, with respect to each such series, to fix by resolution or resolutions, without any further vote or action by the Members of the Company providing for the issue of such series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of Preference Shares to constitute such series and the distinctive designation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the dividend rate on the Preference Shares of such series, the dividend payment dates, the periods in respect
of which dividends are payable ()"**Dividend Periods** "), whether such dividends shall be cumulative and, if cumulative, the date or dates from which dividends shall accumulate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whether the Preference Shares of such series shall be convertible into, or exchangeable for, Shares of any
other class or classes or any other series of the same or any other class or classes of Shares and the conversion price or prices or rate or rates, or the rate or rates at which such exchange may be made, with such adjustments, if any, as shall be
stated and expressed or provided in such resolution or resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the preferences, if any, and the amounts thereof, which the Preference Shares of such series shall be entitled
to receive upon the winding up of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the voting power, if any, of the Preference Shares of such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) transfer restrictions and rights of first refusal with respect to the Preference Shares of such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) such other terms, conditions, special rights and provisions as may seem advisable to the Directors.

5.3 Notwithstanding the fixing of the number of Preference Shares constituting a particular series upon the
issuance thereof, the Directors at any time thereafter may authorise the issuance of additional Preference Shares of the same series subject always to the Statute and the Memorandum of Association.

------

5.4 No dividend shall be declared and set apart for payment on any series of Preference Shares in respect of any
Dividend Period unless there shall likewise be or have been paid, or declared and set apart for payment, on all Preference Shares of each other series entitled to cumulative dividends at the time outstanding which rank senior or equally as to
dividends with the series in question, dividends rateably in accordance with the sums which would be payable on the said Preference Shares through the end of the last preceding Dividend Period if all dividends were declared and paid in full.

5.5 If, upon the winding up of the Company, the assets of the Company distributable among the holders of any one or
more series of Preference Shares which (a) are entitled to a preference over the holders of the Common Shares upon such winding up; and (b) rank equally in connection with any such distribution, shall be insufficient to pay in full the
preferential amount to which the holders of such Preference Shares shall be entitled, then such assets, or the proceeds thereof, shall be distributed among the holders of each such series of the Preference Shares rateably in accordance with the sums
which would be payable on such distribution if all sums payable were discharged in full.

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| | |
|:---|:---|
| **6** | **Register of Members**  |

---

6.1 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute,
provided that for so long as the securities of the Company are listed for trading on the Designated Stock Exchange, title to such securities may be evidenced and transferred in accordance with the laws applicable to and the rules and regulations of
the Designated Stock Exchange.

6.2 The Directors may determine that the Company shall maintain one or more branch registers of Members in
accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time.

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| | |
|:---|:---|
| **7** | **Closing Register of Members or Fixing Record Date**  |

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7.1 For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any
adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may, after notice has been given by advertisement in an appointed
newspaper or any other newspaper or by any other means in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under
Applicable Law, provide that the Register of Members shall be closed for transfers for a stated period which shall not in any case exceed forty days.

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7.2 In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date
as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other
distribution, or in order to make a determination of Members for any other purpose.

7.3 If the Register of Members is not so closed and no record date is fixed for the determination of Members
entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to
pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article,
such determination shall apply to any adjournment thereof.

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|:---|:---|
| **8** | **Certificates for Shares**  |

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8.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall
be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other persons authorised by the Directors. The Directors may authorise
certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates
surrendered to the Company for transfer shall be cancelled and, subject to the Articles, no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled.

8.2 The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one
person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them.

8.3 If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to
evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate.

8.4 Every share certificate sent in accordance with the Articles will be sent at the risk of the Member or other
person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery.

8.5 Share certificates shall be issued within the relevant time limit as prescribed by the Statute, if applicable,
or as the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law may from time to time determine, whichever is shorter, after
the allotment or, except in the case of a Share transfer which the Company is for the time being entitled to refuse to register and does not register, after lodgement of a Share transfer with the Company.

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| | |
|:---|:---|
| **9** | **Transfer of Shares**  |

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9.1 Subject to the terms of the Articles, any Member may transfer all or any of their Shares by an instrument of
transfer provided that such transfer complies with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. If the Shares in
question were issued in conjunction with rights, options or warrants issued pursuant to the Articles on terms that one cannot be transferred without the other, the Directors shall refuse to register the transfer of any such Share without evidence
satisfactory to them of the like transfer of such option or warrant.

9.2 The instrument of transfer of any Share shall be in writing in the usual or common form or in a form prescribed
by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law or in any other form approved by the Directors and shall be
executed by or on behalf of the transferor (and if the Directors so require, signed by or on behalf of the transferee) and may be under hand or, if the transferor or transferee is a Clearing House or its nominee(s), by hand or by machine imprinted
signature or by such other manner of execution as the Directors may approve from time to time. The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members.

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| | |
|:---|:---|
| **10** | **Redemption, Repurchase and Surrender of Shares, Treasury Shares**  |

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10.1 Subject to the provisions, if any, in the Articles, the Memorandum, applicable law, including the Statute, and
the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares on terms that they are to be redeemed or are liable to be redeemed at the option of the Company or
the Member on such terms and in such manner as the Directors may, before the issue of such Shares, determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase its own Shares (including any redeemable Shares) in such manner and on such other terms as the
Directors may agree with the relevant Member, provided that the manner of purchase is in accordance with any applicable requirements imposed from time to time by the Designated Stock Exchange, the Securities and Exchange Commission and/or any other
competent regulatory authority or otherwise under Applicable Law;

10.2 For the avoidance of doubt, redemptions, repurchases and surrenders of Shares in the circumstances described in
the Article above shall not require further approval of the Members.

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10.3 The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner
permitted by the Statute, including out of capital.

10.4 The Directors may accept the surrender for no consideration of any fully paid Share.

10.5 The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall
be held as a Treasury Share.

10.6 The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think
proper (including, without limitation, for nil consideration).

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| | |
|:---|:---|
| **11** | **Variation of Rights of Shares**  |

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11.1 Subject to Article 3.1, if at any time the share capital of the Company is divided into different classes of
Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued Shares
of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two thirds of the
issued Shares of that class, or with the sanction of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the Directors reserve
the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Articles relating to general meetings shall
apply *mutatis mutandis*, except that the necessary quorum shall be one person holding or representing by proxy at least the majority of the issued Shares of the class and that any holder of Shares of the class present in person or by proxy may
demand a poll.

11.2 For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares
as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.

11.3 The rights conferred upon the holders of the Shares of any class issued with preferred or other rights shall
not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking in priority to or pari passu therewith.

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| | |
|:---|:---|
| **12** | **Commission on Sale of Shares**  |

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The Company may, in so far as the Statute permits, pay a commission to any person in consideration of that person subscribing or agreeing to subscribe (whether absolutely or conditionally) or procuring or agreeing to procure subscriptions (whether absolutely or conditionally) for any Shares. Such commissions may be satisfied by the payment of cash and/or the issue of fully or partly paid-up Shares. The Company may also on any issue of Shares pay such brokerage as may be lawful.

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| | |
|:---|:---|
| **13** | **Non Recognition of Trusts**  |

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The Company shall not be bound by or compelled to recognise in any way (even when notified) any equitable, contingent, future or partial interest in any Share, or (except only as is otherwise provided by the Articles or the Statute) any other rights in respect of any Share other than an absolute right to the entirety thereof in the holder.

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| | |
|:---|:---|
| **14** | **Lien on Shares**  |

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14.1 The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or
their estate, either alone or jointly with any other person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such
Share shall operate as a waiver of the Company's lien thereon. The Company's lien on a Share shall also extend to any amount payable in respect of that Share.

14.2 The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if
a sum in respect of which the lien exists is presently payable, and is not paid within 14 clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the person entitled to it in consequence of the
death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold.

14.3 To give effect to any such sale the Directors may authorise any person to execute an instrument of transfer of
the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or their nominee shall be registered as the holder of the Shares comprised in any such transfer, and they shall not be bound to see to the application of the
purchase money, nor shall their title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company's power of sale under the Articles.

14.4 The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in
respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the person entitled to the Shares at the date of the sale.

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| | |
|:---|:---|
| **15** | **Call on Shares**  |

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15.1 Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in
respect of any monies unpaid on their Shares (whether in respect of par value or premium), and each Member shall (subject to receiving at least 14 clear days' notice specifying the time or times of payment) pay to the Company at the time or
times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A person upon whom a call is made shall remain liable for
calls made upon them notwithstanding the subsequent transfer of the Shares in respect of which the call was made.

15.2 A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call
was passed.

15.3 The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.

15.4 If a call remains unpaid after it has become due and payable, the person from whom it is due shall pay interest
on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part.

15.5 An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the
par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of the Articles shall apply as if that amount had become due and payable by virtue of a call.

15.6 The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the
interest to be paid.

15.7 The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of
the monies uncalled and unpaid upon any Shares held by that Member, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance.

15.8 No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a
Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable.

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| | |
|:---|:---|
| **16** | **Forfeiture of Shares**  |

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16.1 If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to
the person from whom it is due not less than 14 clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited.

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16.2 If the notice is not complied with, any Share in respect of which it was given may, before the payment required
by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture.

16.3 A forfeited Share may be sold, re-allotted or otherwise disposed of on
such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the
purposes of its disposal a forfeited Share is to be transferred to any person the Directors may authorise some person to execute an instrument of transfer of the Share in favour of that person.

16.4 A person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall
surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by that person to the Company in respect of those Shares
together with interest at such rate as the Directors may determine, but that person's liability shall cease if and when the Company shall have received payment in full of all monies due and payable by them in respect of those Shares.

16.5 A certificate in writing under the hand of one Director or Officer that a Share has been forfeited on a
specified date shall be conclusive evidence of the facts stated in it as against all persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title to the Share and
the person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall their title to the Share be affected by any irregularity or invalidity in the proceedings in
reference to the forfeiture, sale or disposal of the Share.

16.6 The provisions of the Articles as to forfeiture shall apply in the case of non payment of any sum which, by the
terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a call duly made and notified.

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| | |
|:---|:---|
| **17** | **Transmission of Shares**  |

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17.1 If a Member dies, the survivor or survivors (where they were a joint holder) or their legal personal
representatives (where they were a sole holder), shall be the only persons recognised by the Company as having any title to the deceased Member's Shares. The estate of a deceased Member is not thereby released from any liability in respect of
any Share, for which that Member was a joint or sole holder.

17.2 Any person becoming entitled to a Share in consequence of the death or bankruptcy, liquidation or dissolution
of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by that person to the Company, either to become the holder of such Share or to have
some person nominated by them registered as the holder of such Share. If they elect to have another person registered as the holder of such Share they shall sign an instrument of transfer of that Share to that person. The Directors shall, in either
case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before their death or bankruptcy, liquidation or dissolution, as the case may be.

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17.3 A person becoming entitled to a Share by reason of the death or bankruptcy or liquidation or dissolution of a
Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which they would be entitled if they were the holder of such Share. However, they shall not, before becoming a Member
in respect of a Share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such person to elect either to be registered
or to have some person nominated by them be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the
relevant Member before their death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within 90 days of being received or deemed to be received (as determined
pursuant to the Articles) the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with.

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|:---|:---|
| **18** | **Alteration of Capital**  |

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18.1 The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights,
priorities and privileges annexed thereto, as the Company in general meeting may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its paid-up Shares into stock, and reconvert that
stock into paid-up Shares of any denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into
Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to
be taken by any person and diminish the amount of its share capital by the amount of the Shares so cancelled.

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18.2 All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same
provisions of the Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital.

18.3 Subject to the provisions of the Statute and the provisions of the Articles as regards the matters to be dealt
with by Ordinary Resolution, the Company may by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) alter or add to the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce its share capital or any capital redemption reserve fund.

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|:---|:---|
| **19** | **Offices and Places of Business**  |

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Subject to the provisions of the Statute, the Company may by resolution of the Directors change the location of its Registered Office. The Company may, in addition to its Registered Office, maintain such other offices or places of business as the Directors determine.

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|:---|:---|
| **20** | **General Meetings**  |

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20.1 All general meetings of the Company other than annual general meetings shall be called extraordinary general
meetings.

20.2 For so long as the Company's securities are traded on a Designated Stock Exchange, the Company shall in
each year hold a general meeting as its annual general meeting at such time and place as may be determined by the Directors.

20.3 Extraordinary general meetings may be called by a majority of the Directors or by the chairperson of the board
of Directors. If an extraordinary general meeting is called by the Directors, such extraordinary general meeting shall be held at such time and place as may be determined by the Directors, and if an extraordinary general meeting is called by the
chairperson of the board of Directors, such extraordinary general meeting shall be held at such time and place as may be determined by the chairperson of the board of Directors.

20.4 A person may participate at a general meeting by conference telephone or other communications equipment by
means of which all the persons participating in the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting.

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|:---|:---|
| **21** | **Notice of General Meetings**  |

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21.1 At least ten clear days' notice shall be given of any general meeting. Every notice shall specify the
place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be prescribed by the Company,
provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of the Articles regarding general meetings have been complied with, be deemed to have been
duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all the Members (or their proxies) entitled to attend and vote
thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by the Members (or their proxies) having a right to attend and
vote at the meeting, together holding not less than a majority of the Shares giving that right.

21.2 The notice convening an annual general meeting shall specify the meeting as such, and the notice convening a
meeting to pass a Special Resolution shall specify the intention to propose the resolution as a Special Resolution. Notice of every general meeting shall be given to all Members other than such as, under the provisions hereof or the terms of issue
of the Shares they hold, are not entitled to receive such notice from the Company.

21.3 In cases where instruments of proxy are sent out with a notice of general meeting, the accidental omission to
send such instrument of proxy to, or the non-receipt of any such instrument of proxy by, any person entitled to receive notice shall not invalidate any resolution passed or any proceeding at any such meeting.

21.4 No business may be transacted at any general meeting, other than business that is either (A) specified in
the notice of meeting (or any supplement thereto) given by or at the direction of the Directors (or any duly authorised committee thereof), (B) otherwise properly brought before an annual general meeting by or at the direction of the Directors (or
any duly authorised committee thereof), (C) otherwise properly brought before an annual general meeting by any Member of the Company who (1) is a Member of record on both (x) the date of the giving of the notice by such Member provided for
in this Article and (y) the record date for the determination of Members entitled to vote at such annual general meeting and (2) complies with the notice procedures set forth in this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other applicable requirements, for business to be brought properly before an annual general
meeting by a Member, such Member must have given timely notice thereof in proper written form to the Secretary of the Company and comply with Article 21.4(c) and (f).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All notices of general meetings shall be sent or otherwise given in accordance with this Article not less than
ten (10) nor more than sixty (60) days before the date of the meeting. The notice shall specify the place, date and hour of the meeting and (i) in the case of an extraordinary general meeting, the purpose or purposes for which the
meeting is called (no business other than that specified in the notice may be transacted) or (ii) in the case of the annual general meeting, those matters which the Directors, at the time of giving the notice, intends to present for action by
the members (but any proper matter may be presented at the meeting for such action). The notice of any meeting at which Directors are to be elected shall include the name of any nominee or nominees who, at the time of the notice, the Directors
intend to present for election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For matters other than for the nomination for election of a Director to be made by a Member, to be timely, such
Member's notice shall be delivered to the Company at the principal executive offices of the Company not less than ninety (90) days and not more than one hundred twenty (120) days prior to the one-year anniversary of the preceding year's annual general meeting; provided, however, that if the Company's annual general meeting occurs on a date more than thirty (30) days earlier or later
than the Company's prior year's annual general meeting, then the Directors shall determine a date a reasonable period prior to the Company's annual general meeting by which date the Members notice must be delivered and publicise such
date in a filing pursuant to the Exchange Act, or via press release. Such publication shall occur at least ten (10) days prior to the date set by the Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To be in proper written form, a Member's notice to the Company must set forth as to such matter such
Member proposes to bring before the annual general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reasonably brief description of the business desired to be brought before the annual general meeting,
including the text of the proposal or business, and the reasons for conducting such business at the annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the name and address, as they appear on the Company's Register of Members, of the Member proposing such
business and any Member Associated Person (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the class or series and number of shares of the Company that are held of record or are beneficially owned by
such Member or any Member Associated Person and any derivative positions held or beneficially held by the Member or any Member Associated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) whether and the extent to which any hedging or other transaction or series of transactions has been entered
into by or on behalf of such Member or any Member Associated Person with respect to any securities of the Company, and a description of any other agreement, arrangement or understanding (including any short position or any borrowing or lending of
Shares), the effect or intent of which is to mitigate loss to, or to manage the risk or benefit from share price changes for, or to increase or decrease the voting power of, such Member or any Member Associated Person with respect to any securities
of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material interest of the Member or a Member Associated Person in such business, including a reasonably
detailed description of all agreements, arrangements and understandings between or among any of such Members or between or among any proposing Members and any other person or entity (including their names) in connection with the proposal of such
business by such Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a statement as to whether such Member or any Member Associated Person will deliver a proxy statement and form
of proxy to holders of at least the percentage of the Company's voting Shares required under rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or
otherwise under Applicable Law to carry the proposal.

For purposes of this Article 21.4(d), a "**Member Associated Person**" of any Member shall mean (x) any Affiliate; or person acting in concert with, such Member, (y) any beneficial owner of shares of the Company owned of record or beneficially by such Member and on whose behalf the proposal or nomination, as the case may be, is being made, or (z) any person controlling, controlled by or under common control with such person referred to in the preceding clauses (x) and (y).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any other applicable requirements, for a nomination for election of a Director to be made by a
Member of the Company (other than Directors to be nominated by any series of Preference Shares, voting separately as a class), such Member must (A) be a Member of record on both (x) the date of the giving of the notice by such Member
provided for in this Article and (y) the record date for the determination of Members entitled to vote at such annual general meeting, and on each such date beneficially own more than [•]% of the issued Common Shares (unless otherwise
provided in the Exchange Act or the rules and regulations of the Securities and Exchange Commission) and (B) have given timely notice thereof in proper written form to the Secretary of the Company. If a Member is entitled to vote only for a
specific class or category of directors at a meeting of the Members, such Member's right to nominate one or more persons for election as a director at the meeting shall be limited to such class or category of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To be timely for purposes of Article 21.4(e), a Member's notice shall be delivered to or mailed and
received at the principal executive offices of the Company not less than ninety (90) nor more than one hundred twenty (120) days prior to the meeting; provided, however, that in the event less than one hundred thirty (130) days'
notice or prior public disclosure of the date of the meeting is given or made to Members, notice by the Member to be timely must be so received not later than the close of business on the tenth
(10<sup>th</sup>) day following the earlier of the day on which such notice of the date of the meeting was mailed or such public disclosure was made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To be in proper written form for purposes of Article 21.4(f), a Nominating Member's notice to the
Secretary must be set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to each Nominating Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the information that is requested in Article 21.4(d)(ii)-(vi); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any other information relating to such Member that would be required to be disclosed pursuant to the rules and
regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as to each person whom the Member proposes to nominate for election as a director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all information that would be required by Article 21.4(d)(ii)-(vi) if such nominee was a Nominating Member,
except such information shall also include the business address and residence address of the person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal occupation or employment of the person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all information relating to such person that is required to be disclosed in solicitations of proxies for
appointment of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act or any successor provisions thereto, and any other information relating to the person that would be required to
be disclosed pursuant to the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a description of all direct and indirect compensation and other material monetary arrangements and
understandings during the past three years, and any other material relationship, between or among any Nominating Member and their Affiliates and associates, on the one hand, and each proposed nominee, their respective Affiliates and associates, on
the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Item 404 under Regulation S-K of the Exchange Act if such Nominating Member were the
"registrant" for purposes of such rule and the proposed nominee were a director or executive officer of such registrant.

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Such notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected. The Company may require any proposed nominee to furnish such other information as may be reasonably required by the Company to determine the eligibility of such proposed nominee to serve as an independent director of the Company in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Unless otherwise provided by the terms of the Articles, any series of Preference Shares or any agreement among
Members or other agreement approved by the Directors, only persons who are nominated in accordance with the procedures set forth above shall be eligible to serve as Directors. If the chairperson of a general meeting determines that a proposed
nomination was not made in compliance with the Articles, they shall declare to the general meeting that nomination is defective and such defective nomination shall be disregarded. Notwithstanding the foregoing provisions of the Articles, if the
Nominating Member (or a qualified representative of the Nominating Member) does not appear at the general meeting to present the nomination, such nomination shall be disregarded.

21.5 The Directors shall have power at any time and from time to time to appoint any person to be a Director, either
as a result of a casual vacancy or as an additional Director, subject to the maximum number (if any) imposed by the Directors.

21.6 The Company may by Ordinary Resolution appoint any person to be a Director.

21.7 Subject to the Articles, a Director shall hold office until the expiry of their term as contemplated by Article
28.2 or, until such time as they vacate office in accordance with Article 31.

21.8 No person shall be eligible for election as a director of the Company unless nominated in accordance with the
procedures set forth in this Article. If the chairperson of an annual general meeting determines that a nomination was not made in accordance with the foregoing procedures, the chairperson shall declare to the meeting that the nomination was
defective and such defective nomination shall be disregarded. This Article 21 shall not apply to any nomination of a director in an election in which only the holders of one or more series of Preference Shares of the Company are entitled to vote
(unless otherwise provided in the terms of such series of Preference Shares).

21.9 The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by any Member shall not invalidate the proceedings at any meeting.

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|:---|:---|
| **22** | **Proceedings at General Meetings**  |

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22.1 No business shall be transacted at any general meeting unless a quorum of Members is present at the time when
the meeting proceeds to business. Members holding in aggregate not less than a simple majority of all voting share capital of the Company in issue present in person or by proxy and entitled to vote shall be a quorum. A person may participate at a
general meeting by conference telephone or other communications equipment by means of which all the persons participating in

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the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting. If, however, such quorum is not present or represented at any general meeting, then either (i) the chairperson of the meeting or (ii) the Members entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting.

22.2 When a meeting is adjourned to another time and place, unless the Articles otherwise require, notice need not
be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the Company may transact any business that might have been transacted at the original meeting.
If the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each Member of record entitled to vote at the meeting.

22.3 A determination of the Members of record entitled to notice of or to vote at a general meeting shall apply to
any adjournment of such meeting unless the Directors fix a new record date for the adjourned meeting, but the Directors shall fix a new record date if the meeting is adjourned for more than thirty (30) days from the date set for the original
meeting.

22.4 The chairperson of the board of Directors shall preside as chairperson at every general meeting of the Company.
If at any meeting the chairperson of the board of Directors is not present within fifteen minutes after the time appointed for holding the meeting or is unwilling to act as chairperson, the Directors present shall elect one of their number as
chairperson of the meeting or if all the Directors present decline to take the chair, the Members present shall choose one of their own number to be the chairperson of the meeting.

22.5 At any general meeting a resolution put to the vote of the meeting shall be decided on a poll.

22.6 A poll shall be taken in such manner as the chairperson directs, and the result of the poll shall be deemed to
be the resolution of the meeting.

22.7 In the case of an equality of votes, the chairperson of the meeting shall not be entitled to a second or
casting vote.

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|:---|:---|
| **23** | **Votes of Members**  |

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23.1 Subject to any rights and restrictions for the time being attached to any class or classes of Shares, every
Member present in person and every person representing a Member by proxy at a general meeting of the Company shall have one vote for each Share registered in such Member's name in the Register of Members. No cumulative voting shall be allowed.

23.2 In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy
(or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall
be determined by the order in which the names of the holders stand in the Register of Members.

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23.3 A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in
lunacy, may vote, whether on a show of hands or on a poll, by their committee, receiver, *curator bonis*, or other person on such Member's behalf appointed by that court, and any such committee, receiver, *curator bonis* or other
person may vote by proxy.

23.4 No person shall be entitled to vote at any general meeting unless they are registered as a Member on the record
date for such meeting nor unless all calls or other monies then payable by them in respect of Shares have been paid.

23.5 No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned
general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairperson whose decision shall
be final and conclusive.

23.6 On a poll or on a show of hands votes may be cast either personally or by proxy (or in the case of a
corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a
meeting. Where a Member appoints more than one proxy the instrument of proxy shall state which proxy is entitled to vote on a show of hands and shall specify the number of Shares in respect of which each proxy is entitled to exercise the related
votes.

23.7 On a poll, a Member holding more than one Share need not cast the votes in respect of their Shares in the same
way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing the proxy, a
proxy appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which they are appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which
they are appointed.

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|:---|:---|
| **24** | **Proxies**  |

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24.1 The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or
of their attorney duly authorised in writing, or, if the appointor is a corporation or other non-natural person, under the hand of its duly authorised representative. A proxy need not be a Member.

24.2 The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent
out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy
relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the
instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the person named in the instrument proposes to vote.

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24.3 The chairperson may in any event at their discretion declare that an instrument of proxy shall be deemed to
have been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairperson, shall be invalid.

24.4 The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may
approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll.

24.5 Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous
death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or
transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.

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|:---|:---|
| **25** | **Corporate Members**  |

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Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the person so authorised shall be entitled to exercise the same powers on behalf of the corporation which they represent as the corporation could exercise if it were an individual Member.

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|:---|:---|
| **26** | **Clearing Houses**  |

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If a clearing house or depository (or its nominee) is a Member it may, by resolution of its directors, other governing body or authorised individual(s) or by power of attorney, authorise such person or persons as it thinks fit to act as its representative or representatives at any general meeting of the Company or at any general meeting of any class of Members; provided that, if more than one person is so authorised, the authorisation shall specify the number and class of Shares in respect of which each such person is so authorised. A person so authorised pursuant to this provision shall be entitled to exercise the same powers on behalf of the clearing house (or its nominee) which they represent as that clearing house (or its nominee) could exercise if it were an individual member of the Company holding the number and class of Shares specified in such authorisation.

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|:---|:---|
| **27** | **Shares that May Not be Voted**  |

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Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding Shares at any given time.

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|:---|:---|
| **28** | **Directors**  |

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28.1 There shall be a board of Directors consisting of such number of Directors as fixed by the Directors from time
to time (but not less than one Director), unless increased or decreased from time to time by the Directors or the Company in general meeting. So long as Shares are listed on the Designated Stock Exchange, the board of Directors shall include at
least such number of "independent directors" as the relevant rules applicable to the listing of any Shares on the Designated Stock Exchange require (subject to any applicable exceptions for Controlled Companies).

28.2 The Directors shall be divided into three (3) classes designated as Class I, Class II and
Class III, respectively. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the Directors. At the 2025 annual general meeting of Members, the term of office of the Class I Directors shall
expire and Class I Directors shall be elected for a full term of three (3) years. At the 2026 annual general meeting of Members, the term of office of the Class II Directors shall expire and Class II Directors shall be elected
for a full term of three (3) years. At the 2027 annual general meeting of Members, the term of office of the Class III Directors shall expire and Class III Directors shall be elected for a full term of three (3) years. At each
succeeding annual general meeting of Members, Directors shall be elected for a full term of three (3) years to succeed the Directors of the class whose terms expire at such annual general meeting. Notwithstanding the foregoing provisions of
this Article, each Director shall hold office until the expiration of their term, until their successor shall have been duly elected and qualified or until their earlier death, resignation or removal. No decrease in the number of Directors
constituting the Directors shall shorten the term of any incumbent Director.

28.3 The Directors by the affirmative vote of a simple majority of the remaining Directors present and voting at a
meeting of the Directors, even if less than a quorum, shall have the power from time to time and at any time to appoint any person as a Director to fill a casual vacancy on the board of Directors or as an addition to the existing board of Directors,
subject to the Articles, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law; provided that any vacancy not filled by
the Directors may be filled by the Members by Ordinary Resolution at the next annual general meeting or extraordinary general meeting called for that purpose; provided further, that whenever the holders of any class or classes of stock or series
thereof are entitled to elect one or more Directors by the provisions of the Articles, vacancies and newly created directorships of such class or classes or series may be filled by a majority of the Directors elected by such class or classes or
series thereof then in office, or by a sole remaining Director so elected or by the Members holding such class or classes of Shares or series thereof in accordance with the Articles. Any Director so appointed shall hold office until the expiration
of the term of such class of Directors or until their earlier death, resignation or removal.

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28.4 A director may be removed from office by the Members by Special Resolution only for cause ("cause"
for removal of a Director shall be deemed to exist only if (a) the Director whose removal is proposed has been convicted of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal; (b) such
Director has been found by the affirmative vote of a majority of the Directors then in office at any regular or special meeting of the board of Directors called for that purpose, or by a court of competent jurisdiction, to have been guilty of wilful
misconduct in the performance of such Director's duties to the Company in a matter of substantial importance to the Company; or (c) such Director has been adjudicated by a court of competent jurisdiction to be mentally incompetent, which
mental incompetency directly affects such director's ability to perform their obligations as a Director) at any time before the expiration of their term notwithstanding anything in the Articles or in any agreement between the Company and such
Director (but without prejudice to any claim for damages under such agreement). If the board of Directors makes a determination that removal of a Director by the Members by Special Resolution is in the best interests of the Company the above

at which such Director is removed or by the affirmative vote of a simple majority of the remaining Directors present and voting at a meeting of the Directors, subject to the Articles, the rules and regulations of the Designated Stock Exchange, the
Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. A Director appointed to fill a vacancy in accordance with this Article shall be of the same Class of Director as the Director
they replaced and the term of such appointment shall terminate in accordance with that Class of Director.

28.5 The Directors may, from time to time, and except as required by the rules and regulations of the Designated
Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, adopt, institute, amend, modify or revoke the corporate governance policies or initiatives, which shall be
intended to set forth the policies of the Company and the Directors on various corporate governance related matters, as the Directors shall determine by resolution from time to time.

28.6 A Director shall not be required to hold any Shares in the Company by way of qualification. A Director who is
not a member of the Company shall nevertheless be entitled to receive notice of and to attend and speak at general meetings of the Company and all classes of shares of the Company.

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|:---|:---|
| **29** | **Directors' Fees and Expenses**  |

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29.1 The Directors may receive such remuneration as the Directors may from time to time determine. The Directors may
be entitled to be repaid all traveling, hotel and incidental expenses reasonably incurred or expected to be incurred by that Director in attending meetings of the Directors or committees of the Directors or general meetings or separate meetings of
any class of securities of the Company or otherwise in connection with the discharge of their duties as a Director.

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29.2 Any Director who performs services which in the opinion of the Directors go beyond the ordinary duties of a
Director may be paid such extra remuneration (whether by way of salary, commission, participation in profits or otherwise) as the Directors may determine and such extra remuneration shall be in addition to or in substitution for any ordinary
remuneration provided for, by or pursuant to any other Article.

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|:---|:---|
| **30** | **Powers and Duties of Directors**  |

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30.1 Subject to the provisions of the Statute, the Memorandum and the Articles and to any resolutions made in a
general meeting, the business of the Company shall be managed by the Directors, who may pay all expenses incurred in setting up and registering the Company and may exercise all powers of the Company. No resolution made by the Company in a general
meeting shall invalidate any prior act of the Directors that would have been valid if that resolution had not been made.

30.2 The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committees consisting of such member or members of their body as they think fit (including, without limitation, the Audit Committee, the Compensation Committee and the Nominating and Corporate
Governance Committee (provided that the Compensation Committee and the Nominating and Corporate Governance Committee may be combined into a single committee)), subject to Article 30.7; provided that any committee so formed shall include amongst its
members at least two Directors unless otherwise required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law;
provided further that no committee shall have the power of authority to (a) recommend to the Members an amendment of the Articles (except that a committee may, to the extent authorised in the resolution or resolutions providing for the issuance
of Shares adopted by the Directors as provided under the laws of the Cayman Islands, fix the designations and any of the preferences or rights of such Shares relating to dividends, redemption, dissolution, any distribution of assets of the Company
or the conversion into, or the exchange of such Shares for, Shares of any other class or classes or any other series of the same or any other class or classes of shares of the Company); (b) adopt an agreement of merger or consolidation;
(c) recommend to the Members the sale, lease or exchange of all or substantially all of the Company's property and assets; (d) recommend to the Members a dissolution of the Company or a revocation of a dissolution; (e) recommend
to the Members an amendment of the Memorandum of Association of the Company; or (f) declare a dividend or authorise the issuance of Shares unless the resolution establishing such committee (or the charter of such committee approved by the
Directors) or the Memorandum of Association or the Articles so provide.  **** ** Any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Directors. The Directors may
also delegate to any Director holding any executive office such of their powers as they consider desirable to be exercised by them. Any such delegation may be made subject to any conditions the Directors may impose, and either collaterally with or
to the exclusion of their own powers, and may be revoked or altered.

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30.3 The Directors may from time to time and at any time by power of attorney or otherwise appoint any company, firm
or person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities and discretion (not exceeding those vested in or exercisable
by the Directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as
the Directors may think fit, and may also authorise any such attorney to delegate all or any of the powers, authorities and discretion vested in them.

30.4 The Directors may from time to time provide for the management of the affairs of the Company in such manner as
they shall think fit and the provisions contained in the following paragraphs shall be without prejudice to the general powers conferred by this paragraph.

30.5 The Directors from time to time and at any time may establish any advisory committees, local boards or agencies
for managing any of the affairs of the Company and may appoint any persons to be members of such advisory committees or local boards and may appoint any managers or agents of the Company and may fix the remuneration of any of the aforesaid.

30.6 The Directors from time to time and at any time may delegate to any such advisory committee, local board,
manager or agent any of the powers, authorities and discretions for the time being vested in the Directors and may authorise the members for the time being of any such local board, or any of them to fill up any vacancies therein and to act
notwithstanding vacancies and any such appointment or delegation may be made on such terms and subject to such conditions as the Directors may think fit and the Directors may at any time remove any person so appointed and may annul or vary any such
delegation, but no person dealing in good faith and without notice of any such annulment or variation shall be affected thereby.

30.7 The Directors may adopt formal written charters for committees and, if so adopted, shall review and assess the
adequacy of such formal written charters on an annual basis. Each of these committees shall be empowered to do all things necessary to exercise the rights of such committee set forth in the Articles and shall have such powers as the Directors may
delegate pursuant to the Articles and as required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. Each of the
Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee, if established, shall, subject to Article 30.2, consist of such number of Directors as the Directors shall from time to time determine (or such
minimum number as may be required from time to time by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law). For so long
as any class of Shares is listed on the Designated Stock Exchange, the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee shall be made up of such number of Independent Directors as is required from
time to time by the rules and regulations of the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

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30.8 Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers, authorities, and discretions for the time being vested to them.

30.9 The Directors may elect, by the affirmative vote of a majority of the Directors then in office, a chairperson.
The chairperson of the board of Directors may be a director or an officer of the Company. Subject to the provisions of the Articles and the direction of the Directors, the chairperson of the board of Directors shall perform all duties and have all
powers which are commonly incident to the position of chairperson of a board or which are delegated to them by the Directors, preside at all general meetings and meetings of the Directors at which they are present and have such powers and perform
such duties as the Directors may from time to time prescribe.

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|:---|:---|
| **31** | **Vacation of Office of Directors**  |

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Subject to the Articles, the office of a Director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Director gives notice in writing to the Company that they resign the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Director dies, becomes bankrupt or makes any arrangement or composition with their creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Director is found to be or becomes of unsound mind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is prohibited by applicable law or the Designated Stock Exchange, the Securities and Exchange Commission and/or
any other competent regulatory authority or otherwise under Applicable Law from being a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Director, without special leave of absence from the Directors, is absent from meetings of the Directors for
six consecutive months and the Directors resolve that their office be vacated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Director shall be removed from office pursuant to the Articles.

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|:---|:---|
| **32** | **Proceedings of Directors**  |

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32.1 Subject to the Articles, the Directors may meet together for the dispatch of business, adjourn, and otherwise
regulate their meetings and proceedings as they think fit. Such meetings may be held at any place within or outside the Cayman Islands that has been designated by the Directors. In the absence of such a designation, meetings of the Directors shall
be held at the principal executive office of the Company. Questions arising at any meeting of the Directors shall be decided by the method set forth in Article 32.4.

32.2 The chairperson of the board of Directors or the Secretary on request of a Director, may, at any time summon a
meeting of the Directors by twenty-four (24) hour notice to each Director in person, by telephone, facsimile, electronic email, or in such other manner as the Directors may from time to time determine, which notice shall set forth the general
nature of the business to be considered

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unless notice is waived by all the Directors either at, before or after the meeting is held. Notice of a meeting need not be given to any Director (i) who signs a waiver of notice or a consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or (ii) who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to such Directors. All such waivers, consents, and approvals shall be filed with the corporate records or made part of the minutes of the meeting. A waiver of notice need not specify the purpose of any regular or special meeting of the Directors.

32.3 A Director or Directors may participate in any meeting of the Directors, or of any committee appointed by the
Directors of which such Director or Directors are members, by means of telephone or similar communication equipment by way of which all persons participating in such meeting can hear each other and such participation shall be deemed to constitute
presence in person at the meeting.

32.4 The quorum necessary for the transaction of the business of the Directors shall be a majority of the authorised
number of Directors. If at any time there is only a sole Director, the quorum shall be one (1) Director. Every act or decision done or made by a majority of the Directors present at a duly held meeting at which a quorum is present shall be
regarded as the act of the Directors, subject to the provisions of the Articles and other applicable law. In the case of an equality of votes, the chairperson shall not have an additional tie-breaking vote.

32.5 A meeting of the Directors may be held by means of telephone or teleconferencing or any other
telecommunications facility provided that all participants are thereby able to communicate immediately by voice with all other participants.

32.6 Subject to the Articles, a Director who is in any way, whether directly or indirectly, interested in a contract
or proposed contract with the Company shall declare the nature of their interest at a meeting of the Directors. A general notice given to the Directors by any Director to the effect that they are a member of any specified company or firm and is to
be regarded as interested in any contract which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made. A Director may vote in respect of any contract or proposed
contract or arrangement notwithstanding that they may be interested therein and if they do so their vote shall be counted and they may be counted in the quorum at any meeting of the Directors at which any such contract or proposed contract or
arrangement shall come before the meeting for consideration.

32.7 A Director may hold any other office or place of profit under the Company (other than the office of auditor) in
conjunction with their office of Director for such period and on such terms (as to remuneration and otherwise) as the Directors may determine and no Director or intending Director shall be disqualified by their office from contracting with the
Company either with regard to their tenure of any such other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered into by or on behalf of the Company in which any Director is in any way
interested, be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by any such contract or

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arrangement by reason of such Director holding that office or of the fiduciary relation thereby established. A Director, notwithstanding their interest, may be counted in the quorum present at any meeting whereat that or any other Director is appointed to hold any such office or place of profit under the Company or whereat the terms of any such appointment are arranged and they may vote on any such appointment or arrangement. Any Director who enters into a contract or arrangement or has a relationship that is reasonably likely to be implicated under this Article 32.7 or that would reasonably be likely to affect a Director's status as an "Independent Director" under the rules and regulations of the Designated Stock Exchange, Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law shall disclose the nature of their interest in any such contract or arrangement in which they are interested or any such relationship.

32.8 Any Director may act by themselves or their firm in a professional capacity for the Company, and that Director
or their firm shall be entitled to reasonable expense reimbursement consistent with the Company's policies in connection with such Director's service in their official capacity; provided that nothing herein contained shall authorise a
Director or their firm to act as auditor to the Company.

32.9 The Directors shall cause minutes to be made in books kept for the purpose of recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees of
Directors.

32.10 When the chairperson of a meeting of the Directors signs the minutes of such meeting the same shall be deemed
to have been duly held notwithstanding that all the Directors have not actually come together or that there may have been a technical defect in the proceedings.

32.11 A resolution signed by all the Directors shall be as valid and effectual as if it had been passed at a meeting
of the Directors duly called and constituted. When signed, a resolution may consist of several documents each signed by one or more of the Directors.

32.12 The continuing Directors may act notwithstanding any vacancy in their body but if and so long as their number
is reduced below the number fixed by or pursuant to the Articles as the necessary quorum of Directors, the continuing Directors may act for the purpose of increasing the number, or of summoning a general meeting of the Company, but for no other
purpose.

32.13 A committee appointed by the Directors may elect a chairperson of its meetings. If no such chairperson is
elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the same, the members present may choose one of their number to be chairperson of the meeting.

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32.14 A committee appointed by the Directors may meet and adjourn as it thinks proper. Questions arising at any
meeting shall be determined by a majority of votes of the committee members present and in case of an equality of votes the chairperson shall not have a second or casting vote.

32.15 Meetings and actions of committees of the Directors shall be governed by, and held and taken in accordance
with, the provisions of Article 32.1 (place of meetings), Article 32.2 (notice), Article 32.3 (telephonic meetings), and Article 32.4 (quorum), with such changes in the context of the Articles as are necessary to substitute the committee and its
members for the Directors; provided, however, that the time of regular meetings of committees may be determined either by resolution of the Directors or by resolution of the committee, that special meetings of committees may also be called by
resolution of the Directors, and that notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The Directors may adopt rules for the government of any
committee not inconsistent with the provisions of the Articles.

32.16 All acts done by any meeting of the Directors or of a committee of Directors, or by any person acting as a
Director, shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such person
had been duly appointed and was qualified to be a Director.

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| | |
|:---|:---|
| **33** | **Presumption of Assent**  |

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A Director of the Company who is present at a meeting of the Directors at which action on any Company matter is taken shall be presumed to have assented to the action taken unless their dissent or abstention shall be entered in the Minutes of the meeting or unless they shall file their written dissent or abstention from such action with the person acting as the chairperson or Secretary of the meeting before the adjournment thereof or shall forward such dissent or abstention by registered post to such person immediately after the adjournment of the meeting. Such right to dissent or abstain shall not apply to a Director who voted in favour of such action.

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| | |
|:---|:---|
| **34** | **Dividends, Distributions and Reserve**  |

---

34.1 Subject to any rights and restrictions for the time being attached to any class or classes of Shares and the
Articles, the Directors may from time to time declare dividends (including interim dividends) and other distributions on Shares in issue and authorise payment of the same out of the funds of the Company lawfully available therefor. All dividends
unclaimed for one (1) year after having been declared may be invested or otherwise made use of by the Directors for the benefit of the Company until claimed. Subject to any applicable unclaimed property or other laws, any dividend unclaimed
after a period of six (6) years from the date of declaration shall be forfeited and shall revert to the Company. The payment by the Directors of any unclaimed dividend or other sums payable on or in respect of a Share into a separate account
shall not constitute the Company a trustee in respect thereof.

------

34.2 The Directors may, before recommending or declaring any dividend, set aside out of the funds legally available
for distribution such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors be applicable for meeting contingencies, or for equalising dividends or for any other purpose to which those funds be properly
applied and pending such application may, at the like discretion, either be employed in the business of the Company or be invested in such investments (other than shares of the Company) as the Directors may from time to time think fit. The Directors
shall establish an account to be called the "Share Premium Account" and shall carry to the credit of such account from time to time a sum equal to the amount or value of the premium paid on the issue of any share in the Company. Unless
otherwise provided by the provisions of the Articles, the Directors may apply the share premium account in any manner permitted by the Statute and the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission
and/or any other competent regulatory authority or otherwise under Applicable Law. The Company shall at all times comply with the provisions of the Articles, the Statute and the rules and regulations of the Designated Stock Exchange, the Securities
and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law in relation to the share premium account.

34.3 Any dividend may be paid by cheque or warrant sent through the post to the registered address of the Member or
person entitled thereto, or in the case of joint holders, to any one of such joint holders at their registered address or to such person and such address as the Member or person entitled, or such joint holders as the case may be, may direct. Every
such cheque or warrant shall be made payable to the order of the person to whom it is sent or to the order of such other person as the Member or person entitled, or such joint holders as the case may be, may direct. Notwithstanding the foregoing,
dividends may also be paid electronically to the account of the Members or persons entitled thereto or in such other manner approved by the Directors.

34.4 The Directors when paying dividends to the Members in accordance with the foregoing provisions may make such
payment either in cash or in specie.

34.5 No dividend shall be paid otherwise than out of profits or, subject to the restrictions of the Statute, the
share premium account.

34.6 Subject to the rights of persons, if any, entitled to Shares with special rights as to dividends, all dividends
shall be declared and paid according to the amounts paid or credited as fully paid on the Shares, but if and so long as nothing is paid up on any of the Shares in the Company dividends may be declared and paid according to the amounts of the Shares.
No amount paid on a Share in advance of calls shall, while carrying interest, be treated for the purposes of this Article as paid on the Share.

34.7 If several persons are registered as joint holders of any Share, any of them may give effectual receipts for
any dividend or other moneys payable on or in respect of the Share.

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34.8 No dividend shall bear interest against the Company.

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| | |
|:---|:---|
| **35** | **Book of Accounts**  |

---

35.1 The books of account relating to the Company's affairs shall be kept in such manner as may be determined
from time to time by the Directors.

35.2 The books of account shall be kept at such place or places as the Directors think fit, and shall always be open
to the inspection of the Directors.

35.3 Except as provided in Article 35.2, the Directors shall from time to time determine whether and to what extent
and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors, and no Member (not being a Director) shall have any right of
inspecting any account or book or document of the Company except as conferred by Statute or authorised by the Directors.

35.4 The accounts relating to the Company's affairs shall be audited in such manner and with such financial
year end as may be determined from time to time by the Directors or failing any determination as aforesaid shall not be audited.

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| | |
|:---|:---|
| **36** | **Audit**  |

---

36.1 The Directors or, if authorised to do so, the Audit Committee of the Directors, may appoint an auditor of the
Company who shall hold office until removed from office by a resolution of the Directors and may fix their remuneration.

36.2 Every auditor of the Company shall have a right of access at all times to the books and accounts and vouchers
of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance of the duties of the auditors.

36.3 Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their
appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members.

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| | |
|:---|:---|
| **37** | **Seal**  |

---

37.1 The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of
the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some officer of the Company or other person
appointed by the Directors for the purpose.

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37.2 The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each
of which shall be a fax of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used.

37.3 A Director or officer, representative or attorney of the Company may without further authority of the Directors
affix the Seal over their signature alone to any document of the Company required to be authenticated by them under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

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| | |
|:---|:---|
| **38** | **Officers**  |

---

Subject to the Articles, the Directors may from time to time appoint any person, whether or not a director of the Company, to hold the office of the Chief Executive Officer, the President, the Chief Financial Officer, one or more Vice Presidents or such other officers as the Directors may think necessary for the administration of the Company, for such term and at such remuneration (whether by way of salary or commission or participation in profits or partly in one way and partly in another), and with such powers and duties as the Directors may think fit.

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| | |
|:---|:---|
| **39** | **Register of Directors and Officers**  |

---

The Company shall cause to be kept in one or more books at its office a Register of Directors and Officers in which there shall be entered the full names and addresses of the Directors and Officers and such other particulars as required by the Statute. The Company shall send to the Registrar of Companies in the Cayman Islands a copy of such register, and shall from time to time notify the said Registrar of any change that takes place in relation to such Directors and Officers as required by the Statute.

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| | |
|:---|:---|
| **40** | **Capitalisation of Profits**  |

---

Subject to the Statute and the Articles, the Directors may capitalise any sum standing to the credit of any of the Company's reserve accounts (including a share premium account or a capital redemption reserve fund) or any sum standing to the credit of profit and loss account or otherwise available for distribution and to appropriate such sum to Members in the proportions in which such sum would have been divisible amongst them had the same been a distribution of profits by way of dividend and to apply such sum on their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid up to and amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation, with full power to the Directors to make such provisions as they think fit for the case of Shares becoming distributable in fractions (including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for such capitalisation and matters incidental thereto and any agreement made under such authority shall be effective and binding on all concerned.

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| | |
|:---|:---|
| **41** | **Notices**  |

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41.1 Except as otherwise provided in the Articles, any notice or document may be served by the Company or by the
person entitled to give notice to any Member either personally, by facsimile, by email or by sending it through the post in a prepaid letter or via a recognised courier service, fees prepaid, addressed to the Member at their address as appearing in
the Register of Members or, to the extent permitted by all applicable laws and regulations, by electronic means by transmitting it to any electronic number or address or website supplied by the Member to the Company or by placing it on the
Company's Website, provided that, (i) with respect to notification via electronic means, the Company has obtained the Member's prior express positive confirmation in writing to receive or otherwise have made available to them notices
in such fashion, and (i) with respect to posting to Company's Website, notification of such posting is provided to such Member. In the case of joint holders of a Share, all notices shall be given to that one of the joint holders whose name
stands first in the Register of Members in respect of the joint holding, and notice so given shall be sufficient notice to all the joint holders.

41.2 An affidavit of the mailing or other means of giving any notice of any general meeting, executed by the
Secretary, Assistant Secretary or any transfer agent of the Company giving the notice, shall be prima facie evidence of the giving of such notice.

41.3 Any Member present, either personally or by proxy, at any meeting of the Company shall for all purposes be
deemed to have received due notice of such meeting and, where required, of the purposes for which such meeting was convened.

41.4 Any notice or other document, if served by (a) post, shall be deemed to have been served when the letter
containing the same is posted, or (b) facsimile or email, shall be deemed to have been served upon confirmation of successful transmission, or (c) recognised courier service, shall be deemed to have been served when the letter containing
the same is delivered to the courier service and in proving such service it shall be sufficient to provide that the letter containing the notice or documents was properly addressed and duly posted or delivered to the courier, or (d) electronic
means as provided herein shall be deemed to have been served and delivered on the day on which it is successfully transmitted or at such later time as may be prescribed by any applicable laws or regulations.

41.5 Any notice or document delivered or sent to any Member in accordance with the terms of the Articles shall
notwithstanding that such Member be then dead or bankrupt, and whether or not the Company has notice of their death or bankruptcy, be deemed to have been duly served in respect of any Share registered in the name of such Member as sole or joint
holder, unless their name shall at the time of the service of the notice or document, have been removed from the Register of Members as the holder of the Share, and such service shall for all purposes be deemed a sufficient service of such notice or
document on all persons interested (whether jointly with or as claiming through or under them) in the Share.

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41.6 Notice of every general meeting shall be given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Members who have supplied to the Company an address for the giving of notices to them, except that in case
of joint holders, the notice shall be sufficient if given to the joint holder first named in the Register of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Director.

41.7 No other person shall be entitled to receive notices of general meetings.

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| | |
|:---|:---|
| **42** | **Information**  |

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42.1 No Member shall be entitled to require discovery of any information in respect of any detail of the
Company's trading or any information which is or may be in the nature of a trade secret or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Directors would not be in the interests of
the members of the Company to communicate to the public.

42.2 The Directors shall be entitled (but not required, except as provided by law) to release or disclose any
information in its possession, custody or control regarding the Company or its affairs to any of its Members including, without limitation, information contained in the Register of Members and transfer books of the Company.

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| | |
|:---|:---|
| **43** | **Indemnity**  |

---

43.1 The Company shall indemnify every Director and officer of the Company or any predecessor to the Company (which
for the avoidance of doubt, shall not include auditors of the Company), together with every former Director and former officer of the Company or any predecessor to the Company, and may indemnify any person (other than current and former Directors
and officers) (any such Director, officer or other person, an "**Indemnified Person** "), out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses,
whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions in connection with the Company other than such liability (if any) that they may incur by reason of their own actual fraud, wilful
neglect or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying out of their functions unless that liability arises through the
actual fraud, wilful neglect or wilful default of such Indemnified Person. No person shall be found to have committed actual fraud wilful neglect or wilful default under this Article unless or until a court of competent jurisdiction shall have made
a finding to that effect. Each Member agrees to waive any claim or right of action they might have, whether individually or by or in the right of the Company, against any Director on account of any action taken by such Director, or the failure of
such Director to take any action in the performance of their duties with or for the Company; provided that such waiver shall not extend to any matter in respect of any actual fraud, wilful neglect or wilful default which may attach to such Director.

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43.2 The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs and
expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the
Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this
Article. If it shall be determined by a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with
respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person.

43.3 The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or
other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to
the Company.

43.4 Neither any amendment nor repeal of the Articles set forth under this heading of "**Indemnity** "
(the "**Indemnification Articles** "), nor the adoption of any provision of the Company's Articles or Memorandum of Association inconsistent with the Indemnification Articles, shall eliminate or reduce the effect of the
Indemnification Articles, in respect of any matter occurring, or any action or proceeding accruing or arising or that, but for these Indemnification Articles, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent
provision.

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| | |
|:---|:---|
| **44** | **Financial Year**  |

---

Unless the Directors otherwise prescribe, the financial year of the Company shall end on December 31 in each year and shall begin on the day following.

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| | |
|:---|:---|
| **45** | **Winding Up**  |

---

45.1 If the Company shall be wound up the liquidator shall apply the assets of the Company in satisfaction of
creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the assets available for distribution amongst the Members shall be insufficient to repay the whole of the
Company's issued share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the assets available for distribution amongst the Members shall be more than sufficient to repay the whole
of the Company's issued share capital at the commencement of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the commencement of the winding up subject to a
deduction from those Shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise.

45.2 If the Company shall be wound up the liquidator may, subject to the rights attaching to any Shares and with the
sanction of a Special Resolution of the Company and any other sanction required by the Statute, divide amongst the Members in kind the whole or any part of the assets of the Company (whether such assets shall consist of property of the same kind or
not) and may for that purpose value any assets and determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like sanction, vest the whole or any part of such assets in
trustees upon such trusts for the benefit of the Members as the liquidator, with the like sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.

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| | |
|:---|:---|
| **46** | **RESERVED**  |

---

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| | |
|:---|:---|
| **47** | **Registration by Way of Continuation**  |

---

Subject to the Articles, the Company may by Special Resolution resolve to be registered by way of continuation in a jurisdiction outside the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance of a resolution adopted pursuant to this Article, the Directors may cause an application to be made to the Registrar of Companies to deregister the Company in the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and may cause all such further steps as they consider appropriate to be taken to effect the transfer by way of continuation of the Company.

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| | |
|:---|:---|
| **48** | **Mergers and Consolidations**  |

---

The Company shall, with the approval of a Special Resolution, have the power to merge or consolidate with one or more constituent companies (as defined in the Statute), upon such terms as the Directors may determine.

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| | |
|:---|:---|
| **49** | **Business Opportunities**  |

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49.1 To the fullest extent permitted by Applicable Law, no individual serving as a Director or an Officer
(" **Management**") shall have any duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as the Company. To the
fullest extent permitted by Applicable Law, the Company renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for
Management, on the one hand, and the Company, on the other. Except to the extent expressly

------

assumed by contract, to the fullest extent permitted by Applicable Law, Management shall have no duty to communicate or offer any such corporate opportunity to the Company and shall not be liable to the Company or its Members for breach of any fiduciary duty as a Member, Director and/or Officer solely by reason of the fact that such party pursues or acquires such corporate opportunity for itself or themself, directs such corporate opportunity to another person, or does not communicate information regarding such corporate opportunity to the Company.

49.2 Except as provided elsewhere in this Article, the Company hereby renounces any interest or expectancy of the
Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for both the Company and Management, about which a Director and/or Officer who is also a member of Management
acquires knowledge.

49.3 To the extent a court might hold that the conduct of any activity related to a corporate opportunity that is
renounced in this Article to be a breach of duty to the Company or its Members, the Company hereby waives, to the fullest extent permitted by Applicable Law, any and all claims and causes of action that the Company may have for such activities. To
the fullest extent permitted by Applicable Law, the provisions of this Article apply equally to activities conducted in the future and that have been conducted in the past.

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| | |
|:---|:---|
| **50** | **Exclusive Jurisdiction and Forum**  |

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50.1 Unless the Company consents in writing to the selection of an alternative forum, the courts of the Cayman
Islands shall have exclusive jurisdiction over any claim or dispute arising out of or in connection with the Memorandum, the Articles or otherwise related in any way to each Member's shareholding in the Company, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any derivative action or proceeding brought on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any action asserting a claim of breach of any fiduciary or other duty owed by any current or former Director,
Officer or other employee of the Company to the Company or the Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any action asserting a claim arising pursuant to any provision of the Statute, the Memorandum or the Articles;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any action asserting a claim against the Company governed by the "Internal Affairs Doctrine" (as such
concept is recognised under the laws of the United States of America).

50.2 Each Member irrevocably submits to the exclusive jurisdiction of the courts of the Cayman Islands over all such
claims or disputes.

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50.3 Without prejudice to any other rights or remedies that the Company may have, each Member acknowledges that
damages alone would not be an adequate remedy for any breach of the selection of the courts of the Cayman Islands as exclusive forum and that accordingly the Company shall be entitled, without proof of special damages, to the remedies of injunction,
specific performance or other equitable relief for any threatened or actual breach of the selection of the courts of the Cayman Islands as exclusive forum.

U.S. Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any claim for which the federal district courts of the United States of America are, as a matter of the laws of the United States, the sole and exclusive
forum for determination of such a claim.

## Exhibit 3.5

**Exhibit 3.5** 

***Execution Version***

**SECOND AMENDED AND RESTATED** 

**SHAREHOLDERS AGREEMENT** 

**OF** 

**ACCELERANT HOLDINGS** 

Dated December 18, 2024

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**TABLE OF CONTENTS**

<u>Page</u> 

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| | | |
|:---|:---|:---|
|  Article I | Pre-emptive Rights | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-emptive Rights | 1 |
|  Article II | Certain Information | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information from Shareholders | 3 |
|  Article III | Board Matters | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Composition | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Removal and Replacement of the Eldridge Nominee or the Barings Nominee; Vacancies | 5 |
|  Article IV | Certain Transfer Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Transfer Restrictions | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Drag Along | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tag Along | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.4. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous for Approved Sale or Tag Along Transfer | 9 |
|  Article V | Information Rights | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Major Investor Information Rights | 10 |
|  Article VI | Approved Reorganization; Registration Rights | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approved Reorganization | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration Rights | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HSR | 12 |
|  Article VII | EXIT TRANSACTION | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exit Transaction | 12 |
|  Article VIII | Miscellaneous | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent to Jurisdiction | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WAIVER OF JURY TRIAL | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Partition | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.8. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.9. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.10. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Law | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.11. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Counsel | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.12. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability of Provisions | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.13. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third Party Beneficiaries | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.14. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments | 15 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.15. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of Parties | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.16. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intended Tax Treatment of Class A Shares, Class B Shares and Class C Shares | 16 |
|  Article IX | Definitions | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terms Defined Elsewhere | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Defined Terms | 16 |

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-ii-

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**SECOND AMENDED AND RESTATED** 

**SHAREHOLDERS AGREEMENT** 

**OF** 

**ACCELERANT HOLDINGS** 

This Second Amended and Restated Shareholders Agreement (as amended from time to time, this "<u>Agreement</u>") of Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>"), dated as of December 18, 2024, is entered into among the Company and the Common Shareholders (in each case, as defined herein), as required by Section 7.14 of that certain Amended and Restated Shareholders Agreement of the Company, dated as of December 28, 2022 (the "<u>Prior Agreement</u>"). Each of the Company, the Common Shareholders and the other parties hereto (and who become a party hereto or have become by execution of a joinder or signature page hereto) is sometimes referred to herein as a "<u>Party</u>" and together as the "<u>Parties</u>." Certain terms are used in this Agreement as specifically defined herein. These definitions are referred to or set forth in <u>Article VIII</u> hereof.

**WHEREAS**, upon the Closing, the Company shall issue certain Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares to the Purchasers, pursuant to and in accordance with the Class C Preferred Securities Purchase Agreement;

**WHEREAS**, concurrently with the execution of this Agreement, the Company is adopting the Memorandum and Articles of Association, pursuant to which the Common Shareholders and the Preference Shareholders hold Company Securities;

**WHEREAS**, the Parties (a) deem it in their best interest to amend and restate the Prior Agreement in its entirety, as set forth in this Agreement and (b) desire to enter into this Agreement to set forth additional terms on which the Parties shall hold their Company Securities and which shall govern the relationship among the Parties; and

**WHEREAS**, this Agreement has been executed by the Company and the requisite Shareholders sufficient to amend and restate the Prior Agreement in accordance with Section 7.14 of the Prior Agreement.

**NOW, THEREFORE**, in consideration of the agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE I** 

**PRE-EMPTIVE RIGHTS** 

Section 1.1. <u>Pre-emptive</u> <u>Rights</u>. Until the consummation of a Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, the Company shall not issue or sell any Company Securities (or accept any additional capital contributions in any form) (each an "<u>Issuance</u>" of "<u>Subject Securities</u>") after the date hereof, without first complying with the provisions of this <u>Section</u> <u>1.1</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1. <u>Participation Notice</u>. Not fewer than 10 Business Days prior to the consummation of an Issuance, a written notice (the "<u>Participation Notice</u>") shall be given by the Directors pursuant to <u>Section</u> <u>8.6</u> to each Shareholder. The Participation Notice shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The principal terms of the proposed Issuance, including (i) the amount and kind of Subject Securities to
be included in the Issuance, (ii) the number of Subject Securities to be included in the Issuance, (iii) the terms (including price per share) of the Subject Securities to be included in the Issuance, and (iv) the Participation Right
Percentage of the Issuance for each Shareholder (with respect to each such Shareholder, such Shareholder's " <u>Participation Portion</u> "); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An offer by the Directors on behalf of the Company to issue or cause to be issued, at the option of each Person
to which a Participation Notice is required to be given, to such Person such portion of the Subject Securities to be included in the Issuance as may be requested by such Person (not to exceed such Peron's Participation Portion of the total
amount of Subject Securities to be included in the Issuance), at the price and on the economic terms and conditions set forth in the Participation Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2. <u>Participation Commitment</u>. Each Person desiring to accept the offer contained in the Participation Notice shall send an irrevocable commitment (each, a "<u>Participation Commitment</u>") to the Directors within 10 Business Days after the effectiveness (in accordance with <u>Section</u> <u>1.1.1</u>) of the Participation Notice specifying the number (not in any event to exceed the product of such Person's Participation Portion multiplied by the aggregate number of Subject Securities to be included in the Issuance) or proportion (not in any event to exceed such Person's Participation Portion) of Subject Securities which such Person desires to be issued (each such Person, a "<u>Participating Buyer</u>"). Each Person that received a Participation Notice that has not so accepted such offer, or that does not comply with <u>Section</u> <u>1.1.5</u> (in either case, a "<u>Non-Participating Member</u>"), shall be deemed to have waived all of such Person's rights with respect to the Issuance under this <u>Section</u> <u>1.1</u>, and the Directors, on behalf of the Company, shall thereafter, without any further obligation to any Non-Participating Member under this <u>Section</u> <u>1.1</u>, be free to offer and issue the remaining Subject Securities that were originally offered to any Non-Participating Member that is a Preference Shareholder in such Issuance to the Participating Buyers that are Preference Shareholders *pro rata* based on the ratio of their respective Participation Portions to the aggregate Participation Portion of all Preference Shareholders on terms (including price per share) not more favorable than the terms set forth in the Participation Notice until there shall be no unsubscribed Subject Securities. If, prior to consummation of such proposed Issuance, the terms of such proposed Issuance shall change with the result that the price shall be less than the price set forth in the Participation Notice or in a way that materially affects the non-economic terms of the proposed Issuance (in favor of the purchasers of the proposed Issuance), the Directors shall be obligated to issue a new Participation Notice and comply again with the terms and provisions of this <u>Section</u> <u>1.1</u>, prior to consummating such Issuance; <u>provided</u>, <u>however</u>, that in the case of such a new Participation Notice, each applicable period to which reference is made in this <u>Section</u> <u>1.1</u> shall be the longer of (a) the remaining portion of the 10 Business Day period applicable to the first Participation Notice distributed in connection with such proposed Issuance or (b) five Business Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3. <u>Acceptance</u>. The Participation Commitment of each Participating Buyer shall be irrevocable except as hereinafter provided, and each such Participating Buyer shall be bound and obligated to acquire in the Issuance such number or proportion of Subject Securities as such Participating Buyer shall have specified in such Participating Buyer's Participation Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4. <u>Failure to Consummate</u>. If, at the end of the 180<sup>th</sup> day following the date of the effectiveness (in accordance with <u>Section</u> <u>1.1.1</u>) of the Participation Notice, the Company has not completed the Issuance on the terms and conditions specified in such Participation Notice, each Participating Buyer shall be released from its obligations under such Participating Buyer's Participation Commitment, the Participation Notice shall be null and void, and it shall be necessary for a separate Participation Notice to be furnished, and the terms and provisions of this <u>Section</u> <u>1.1</u> separately complied with *de novo*, in order to consummate any Issuance subject to this <u>Section</u> <u>1.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.5. <u>Cooperation</u>. Each Shareholder shall take or cause to be taken all such reasonable actions as may be necessary, reasonably desirable or otherwise reasonably requested by the Directors or the Company in order expeditiously to consummate any applicable Issuance pursuant to this <u>Section</u> <u>1.1</u> and any related transactions, including executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments, filing applications, reports, returns, filings and other documents or instruments with governmental authorities, and otherwise cooperating with the Directors, the Company and the Participating Buyers (if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.6. <u>Closing</u>. The closing of an Issuance pursuant to this <u>Section</u> <u>1.1</u> shall take place at such time and place as the Directors shall specify by written notice to each Participating Buyer in accordance with <u>Section</u> <u>8.6</u>. At the closing of any Issuance under this <u>Section</u> <u>1.1</u>, each Participating Buyer shall be delivered the certificates or other instruments, if any, evidencing the Subject Securities to be issued to such Participating Buyer, registered in the name of such Participating Buyer or his, her or its designated nominee, free and clear of any liens or encumbrances, with any transfer tax stamps affixed, against delivery by such Participating Buyer of the applicable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.7. <u>Post-Issuance Compliance</u>. Notwithstanding the foregoing, the Company may proceed with any Issuance prior to having complied with the provisions of this <u>Section</u> <u>1.1</u>; <u>provided</u> <u>that</u> (a) the Directors shall provide to each Person who would have been entitled to be given a Participation Notice in connection with such Issuance with prompt notice of such Issuance and the Participation Notice described in <u>Section</u> <u>1.1.1</u> in which the actual price per Share of Subject Securities shall be set forth; (b) the Directors (on behalf of the Company) shall offer to issue to such Person such number of Subject Securities of the type issued in the Issuance as may be requested by such Person, on the same economic terms and conditions with respect to such Subject Securities as the subscribers in the Issuance received, not to exceed a number of Subject Securities sufficient to permit such Person to acquire, in total, the same percentage of the aggregate number of all securities included in the relevant Issuance effected pursuant to this <u>Section</u> <u>1.1.7</u> as such Person would have been entitled to acquire had the Directors proceeded with the relevant Issuance under <u>Section</u> <u>1.1.2</u> rather than pursuant to this <u>Section</u> <u>1.1.7</u>; and (c) the Directors shall keep such offer open for a period of 10 Business Days, during which period, each such Person may accept such offer by sending a written acceptance to the Directors committing to purchase an amount of such securities (not in any event to exceed the Participation Portion that such holder would have been entitled to pursuant to <u>Section</u> <u>1.1.2</u> <u>multiplied</u><u> </u><u>by</u> the number of Subject Securities included in such Issuance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.8. <u>No Application</u>. For the avoidance of doubt, the preceding provisions of this <u>Section</u> <u>1.1</u> shall not apply to Issuances (a) in connection with any Qualified Initial Public Offering, Qualified Direct Listing, Qualified SPAC or a Change of Control of the Company, (b) in connection with any Approved Reorganization, (c) to a third party buyer in connection with any merger, acquisition or other business combination, (d) to give effect to any equity dividend or distribution, equity split, reverse equity split, subdivision or combination or other similar pro rata recapitalization event affecting any outstanding Shares, (e) to lenders or other similar financial institutions in connection with financing transactions by the Company, (f) pursuant to the Management Incentive Plan, (g) issued or issuable upon the conversion of any Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, (h) in connection with strategic transactions entered into primarily for non-equity financing purposes or (i) in connection with any settlement of any action, suit, proceeding or litigation.

**ARTICLE II** 

**CERTAIN INFORMATION** 

Section 2.1. <u>Information from Shareholders</u>. Each Shareholder agrees to use commercially reasonable efforts promptly to provide the Directors with information about such Shareholder that the Directors reasonably request when necessary to comply with regulatory, legal, tax, AEOI or other requirements related to the business of the Company or the consummation, ownership, or disposal of a Subsidiary Investment.

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**ARTICLE III** 

**BOARD MATTERS** 

Section 3.1. <u>Composition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. From the date hereof until Eldridge effects any transfer, assignment, encumbrance or other disposal of any portion of its Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares other than to a Permitted Transferee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Eldridge shall have the right to nominate one individual to serve as a Director, and each of the Parties shall
take all such actions as are required (including voting all Shares owned thereby) to ensure the election of such designee (such person, the " <u>Eldridge Nominee</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parties shall take all such actions as may be required to ensure that the number of Directors is not
increased beyond nine without the prior written consent of Eldridge; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parties shall take all such actions as are required to ensure that (i) the Eldridge Nominee at any
time serving as a Director is appointed to any committee of Directors that is authorized, (ii) the Eldridge Nominee is entitled to the benefit of the same indemnification rights from the Company (including directors' and officers'
insurance coverage) as the other Directors (including as provided in Section 48 of the Memorandum and Articles of Association) (provided, however, that nothing herein shall entitle the Eldridge Nominee to indemnification available to any other
Director from any other Person other than the Company), and (iii) the Company shall reimburse the reasonable and documented out-of-pocket expenses of the Eldridge
Nominee incurred in connection with service as a Director to the same extent and pursuant to the same policies as such expenses are reimbursed to the other Directors (including pursuant to Section 39 of the Memorandum and Articles of
Association). Except as set forth in Section 39 of the Memorandum and Articles of Association, the Eldridge Nominee shall not be entitled to receive any compensation for service as a Director other than the indemnification and expense
reimbursement contemplated by the immediately foregoing clauses (ii) and (iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The current Eldridge Nominee shall be Todd Boehly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2. From the date hereof until the Barings Holders effect any transfer, assignment, encumbrance or other disposal of 25% or more of the total Class B Shares initially purchased by the Barings Holders on the date of the Prior Agreement, other than to a Permitted Transferee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Barings Holders shall have the right to nominate one individual to serve as a Director, and each of the
Parties shall take all such actions as are required (including voting all Shares owned thereby) to ensure the election of such designee (such person, the " <u>Barings Nominee</u> "). The current Barings Nominee shall be Michael Freno; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parties shall take all such actions as are required to ensure that (i) the Barings Nominee at any time
serving as a Director is appointed to any committee of Directors that is authorized, (ii) the Barings Nominee is entitled to the benefit of the same indemnification rights from the Company (including directors' and officers' insurance
coverage) as the other Directors (including as provided in Section 48 of the Memorandum and Articles of Association) (provided, however, that nothing herein shall entitle the Barings Nominee to indemnification available to any other Director
from any other Person other than the Company), and (iii) the Company shall reimburse the reasonable and documented out-of-pocket expenses of the Barings Nominee
incurred in

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connection with service as a Director to the same extent and pursuant to the same policies as such expenses are reimbursed to the other Directors (including pursuant to Section 39 of the Memorandum and Articles of Association). Except as set forth in Section 39 of the Memorandum and Articles of Association, the Barings Nominee shall not be entitled to receive any compensation for service as a Director other than the indemnification and expense reimbursement contemplated by the immediately foregoing clauses (ii) and (iii).

Section 3.2. <u>Removal and Replacement of the Eldridge Nominee or the Barings Nominee; Vacancies</u>. For so long as Eldridge or Barings, as applicable, is entitled to nominate the Eldridge Nominee or Barings Nominee, as applicable, pursuant to <u>Section</u> <u>3.1</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. the Parties shall take such actions as are necessary to cause the removal of the Eldridge Nominee or the Barings Nominee, as applicable, as a Director if notified in writing by Eldridge or Barings, as applicable, that it desires such removal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. the Parties shall take such actions as are necessary to cause the removal of the Eldridge Nominee or the Barings Nominee, as applicable, as a Director if the Company notifies Eldridge or Barings, as applicable, in writing that such removal is warranted as a result of Cause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3. the Parties shall take such actions as are necessary to cause any vacancy in the seat held by the Eldridge Nominee or the Barings Nominee, as applicable, whether caused by resignation, death, disqualification, removal, or otherwise, to be filled by a Person to be identified by Eldridge or Barings, as applicable, to the Company in writing.

In the event that Eldridge or Barings, as applicable, becomes ineligible to designate the Eldridge Nominee or the Barings Nominee, as applicable, pursuant to <u>Section</u> <u>3.1</u>, the then-serving Eldridge Nominee or Barings Nominee, as applicable, shall continue in his or her role as a Director and any applicable committees (subject to removal for cause) until the end of his or her then-current directorship term.

**ARTICLE IV** 

**CERTAIN TRANSFER MATTERS** 

Section 4.1. <u>General Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. Until any Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, no Shareholder shall effect any direct or indirect sale, assignment, swap, encumbrance, pledge, hypothecation, grant of a security interest, mortgage, exchange, giving away, or any other disposal or transfer, in whole or in part, voluntarily or involuntarily, of any Company Securities, whether by operation of law, pursuant to judicial process or otherwise (a "<u>Transfer</u>") without complying with this <u>Article IV</u>. Other than a Transfer to a Permitted Transferee or pursuant to <u>Section</u> <u>4.2</u>, <u>Section</u> <u>4.3</u>, <u>Section</u> <u>4.4</u> of <u>Section</u> <u>6.1</u>, no Shareholder may Transfer any Company Securities without the prior written consent of the Company. No Shareholder shall Transfer to any Person any Company Securities now or hereafter owned by such Shareholder unless the transferee of such Shareholder shall join in this Agreement by executing a joinder agreement in form and substance reasonably satisfactory to the Company (unless such transferee is already subject to this Agreement). The Company may request information from any Shareholder seeking to Transfer its Company Securities or the prospective transferee of such Company Securities, as necessary, in the reasonable determination of the Company, to give effect to the Transfer restrictions described in this <u>Article IV</u> and may reasonably decline to effect any such transaction if complete and accurate information is not received timely as requested. Any purported Transfer not permitted by this Agreement will be void ab initio, and the Company shall not record it on the books and records of the Company. The Parties acknowledge and agree that the transfer restrictions contained herein are reasonable and in the best interests of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. The Company shall not unreasonably withhold, condition or delay any prior written consent requested under Section <u>4.1.1</u> by any Barings Holder with respect to any Transfer of its Class C Convertible Preference Shares or its Class C-1 Convertible Preference Shares; *provided*, *however*, that the parties hereto agree that it would be reasonable for the Company to withhold consent to any proposed pledge of Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares to a third party that is (in the reasonable discretion of the Board) a distressed debt lender. All rights under <u>Article VII</u> shall terminate, automatically and immediately, in respect of any Class C Convertible Preference Share or Class C-1 Convertible Preference Share acquired by or through any third party pursuant to a foreclosure on a pledge of such Share that is permitted hereunder.

Section 4.2. <u>Drag Along</u>. Until any Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC and subject to <u>Article VII</u>, each Shareholder hereby agrees that if the Board and Common Shareholders holding a majority of the voting power of the Common Shares or, pursuant to <u>Article VII</u>, the Required Class C Shareholders (the "<u>Dragging Shareholders</u>") approve a Change of Control of the Company (an "<u>Approved Sale</u>"), each Shareholder will be deemed to have provided any applicable consent to and shall raise no objections against such Approved Sale, and, if applicable, each Shareholder shall Transfer in such Approved Sale either (a) all of such Shareholder's Company Securities, in the event of an Approved Sale involving the Transfer of all of the Company's outstanding Company Securities or (b) an amount of Company Securities as calculated in accordance with <u>Section</u> <u>4.2.1</u>, in the event of an Approved Sale involving the Transfer of less than all of the Company's outstanding Company Securities (the "<u>Drag Along Sale Shares</u>"), in each case, directly or indirectly, to a third party (a "<u>Prospective Buyer</u>") in the manner and on the terms set forth in this <u>Section</u> <u>4.2</u> in connection with such Approved Sale, and shall further comply with this <u>Section</u> <u>4.2</u> as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. <u>Exercise</u>. If the Dragging Shareholders elect to exercise their rights under this <u>Section</u> <u>4.2</u>, they shall furnish a written notice (the "<u>Drag Along Notice</u>") to each Shareholder. The Drag Along Notice shall set forth the principal terms of the proposed Approved Sale (including, if applicable, the terms of any related Transfer) insofar as it relates to Drag Along Sale Shares including, if applicable, (i) the aggregate amount and type of Drag Along Sale Shares (provided that, such amount shall be the same proportion of Company Securities owned by it as are proposed to be Transferred in the Approved Sale by the Dragging Shareholders), (ii) the estimated consideration per respective Shareholder to be received in the proposed Transfer (after giving effect to <u>Section</u> <u>4.2.2</u>) (provided that, such consideration shall be the same price per share, based on the then-applicable Conversion Rate for Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, approved by the Dragging Shareholders for the Approved Sale) and (iii) the name and address of the Prospective Buyer. If the Company or Dragging Shareholders, as applicable, consummate the proposed Approved Sale to which reference is made in the Drag Along Notice, each Shareholder (each a "<u>Drag Along Seller</u>") shall be bound and obligated by the terms of such Approved Sale and, if applicable, shall be bound and obligated to Transfer the Drag Along Sale Shares held by such Shareholder in the Approved Sale on substantially the same economic terms and conditions (subject to the other provisions of this <u>Section</u> <u>4.2</u>), set forth in the Drag Along Notice; <u>provided</u>, <u>that</u>, in the event of an Approved Sale involving the Transfer of fewer than all of the Company's outstanding Company Securities, each Shareholder shall Transfer a number of Company Securities equal to its pro rata share of the outstanding Company Securities to be Transferred (in the case of the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares based on the then-applicable Conversion Rate) in connection with such Approved Sale and the relative consideration payable in connection with the Transfer of such Company Securities shall be the pro rata share of the aggregate purchase price for the Approved Sale. The Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares that are subject to the Drag Along Notice shall convert into Common Shares (at the then-applicable Conversion Rate) immediately prior to the consummation of such Approved Sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2. <u>Approval Rights</u>. Each Shareholder hereby acknowledges and agrees that, in connection with an Approved Sale conducted in the manner and on the terms set forth in this <u>Section</u> <u>4.2</u>, such Shareholder is not entitled to (and hereby expressly waives) any dissenter's rights, appraisal rights or similar rights under any applicable law.

Section 4.3. <u>Tag Along</u>. Until a Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, if Shareholders propose to Transfer a majority of the Company Securities (measured assuming conversion of any Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares at such time at the then-applicable Conversion Rate) ("<u>Tag Along Shares</u>" and, such Shareholders, the "<u>Initiating Shareholders</u>") to a Prospective Buyer in a transaction which is not (A) to a Permitted Transferee or (B) a Transfer in connection with which Dragging Shareholders have elected to exercise their "drag along" rights under <u>Section</u> <u>4.2</u> (a "<u>Tag Along Transfer</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1. <u>Notice</u>. The Initiating Shareholders shall deliver a written notice (the "<u>Tag Along Notice</u>") to each other Shareholder (each, a "<u>Tag Along Holder</u>"), at least 10 Business Days prior to such Tag Along Transfer. The Tag Along Notice shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The principal terms of the proposed Tag Along Transfer insofar as it relates to such Tag Along Shares,
including (A) the aggregate amount and type of Tag Along Shares to be purchased from the applicable Shareholder (provided that, such amount shall be the same proportion of Company Securities owned by it as are proposed to be Transferred by the
Initiating Shareholders), (B) the fraction, expressed as a percentage, determined by dividing the number of Tag Along Shares proposed to be purchased from the Shareholder by the total number of Tag Along Shares held by such Shareholder (the
" <u>Tag Along Transfer Percentage</u> "), (C) the estimated purchase price per Tag Along Share (provided that, such purchase price shall be the same price per share, based on the then-applicable Conversion Rate for Class A Convertible
Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C
Convertible Preference Shares and Class C-1 Convertible Preference Shares, as the Initiating Shareholders will receive), (D) the anticipated form of consideration for each such Tag Along Share (provided
that, such form of consideration shall be the same as the Initiating Shareholders will receive), (E) the name and address of the Prospective Buyer and (F) the expected closing date for the Transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An invitation to each Tag Along Holder to make an offer to include in the Tag Along Transfer to the applicable
Prospective Buyer an additional number of issued and outstanding Company Securities held by such Tag Along Holder (in the case of Class A Convertible Preference Shares, Class A-1 Convertible
Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, based on the then-applicable Conversion Rate and not in any event to exceed the product of the Tag Along Transfer Percentage multiplied by the total number of
Company Securities held by such Tag Along Holder), on substantially the same terms and conditions as the applicable Shareholder shall Transfer each of its Tag Along Shares (but subject to <u>Section</u> <u>4.</u> <u>4</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2. <u>Exercise</u>. Within 10 Business Days after the delivery of the Tag Along Notice, each Tag Along Holder desiring to make an offer to include any outstanding Company Securities in the Tag Along Transfer (each a "<u>Tag Along Seller</u>" and, together with the Drag Along Sellers, the "<u>Participating Sellers</u>") shall furnish a written notice (the "<u>Tag Along Offer</u>") to the Initiating Shareholders offering to

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include a number of issued and outstanding Company Securities (in the case of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, based on the then-applicable Conversion Rate and not in any event to exceed the product of the Tag Along Transfer Percentage multiplied by the total number of Company Securities held by such Tag Along Seller) which such Tag Along Seller desires to have included in the Tag Along Transfer. Each Tag Along Holder who does not timely accept the Initiating Shareholders' invitation shall be deemed to have waived all of its rights with respect to such Tag Along Transfer, and the Initiating Shareholders and the Tag Along Sellers shall thereafter be free to Transfer to the Prospective Buyer, at a price per respective Company Security no more than the price per Company Security (in the case of Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, based on the then-applicable Conversion Rate) set forth in the Tag Along Notice, without any further obligation to such non-accepting Tag Along Holder. The Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares that are included in a Tag Along Offer shall convert into Common Shares (at the then-applicable Conversion Rate) immediately prior to the consummation of such Tag Along Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3. <u>Irrevocable Offer</u>. The offer of each Tag Along Seller contained in his, her or its Tag Along Offer shall be irrevocable, and, to the extent such offer is accepted, such Tag Along Seller shall be bound and obligated to Transfer in the Tag Along Transfer on substantially the same terms and conditions as the Initiating Shareholders (subject to <u>Section</u> <u>4.4</u>), up to such number of Company Securities as such Tag Along Seller shall have specified in his, her or its Tag Along Offer; <u>provided</u>, <u>however</u>, that if the principal terms of the Tag Along Transfer change with the result that any price per Company Security shall be less than the price per Company Security set forth in the Tag Along Notice or in a way that materially adversely affects the non-pricing terms of the Tag Along Transfer, each Tag Along Seller shall be permitted to withdraw the offer contained in his, her or its Tag Along Offer and shall be released from his, her or its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4. <u>Reduction of Company Securities Transferred</u>. The Initiating Shareholders shall attempt to obtain the inclusion in the proposed Transfer of the entire number of Company Securities which each of the Initiating Shareholders and the Tag Along Sellers requested to have included in the Tag Along Transfer (as evidenced in the case of the Initiating Shareholders by the Tag Along Notice and in the case of each Tag Along Seller by such Tag Along Seller's Tag Along Offer). In the event the Initiating Shareholders shall be unable to obtain the inclusion of such entire number of Company Securities in the Tag Along Transfer, the number of Company Securities to be Transferred in the Tag Along Transfer shall be allocated among the Initiating Shareholders and the Tag Along Sellers in proportion, as nearly as practicable, to the total Company Securities owned by each of the Initiating Shareholders and Tag Along Sellers (giving effect to the conversion of all Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, at the then-applicable Conversion Rate), as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5. <u>Additional Compliance</u>. If, prior to consummation of any proposed Transfer in connection with which a Tag Along Notice was required to be delivered pursuant to <u>Section</u> <u>4.3.1</u>, the terms of such proposed Transfer shall change with the result that the price per Tag Along Share to be paid in the proposed Transfer shall be greater than the maximum price per Tag Along Share set forth in the Tag Along Notice, the Tag Along Notice shall be null and void, and it shall be necessary for a separate Tag Along Notice to be furnished, and the terms and provisions of this <u>Section</u> <u>4.3</u> separately complied with, in order to consummate such proposed Transfer pursuant to this <u>Section</u> <u>4.3</u>.

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Section 4.4. <u>Miscellaneous for Approved Sale or Tag Along Transfer</u>. The following provisions shall apply to any Approved Sale or Tag Along Transfer to which <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u>, respectively, applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. <u>Further Assurances</u>. Each Shareholder, whether in his, her or its capacity as a Participating Seller, Shareholder, manager, employee or officer of the Company, or otherwise, shall take or cause to be taken all such actions as may be necessary, desirable or otherwise reasonably requested by the Company in order to expeditiously consummate each Tag Along Transfer or Approved Sale and any related transactions, including executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; furnishing information and copies of documents; filing applications, reports, returns, filings and other documents or instruments with governmental authorities; and otherwise cooperating with the Company, the Dragging Shareholders, the Initiating Shareholders and the Prospective Buyer; <u>provided</u>, <u>however</u>, that Participating Sellers shall be obligated to become liable in respect of any representations, warranties, covenants, indemnities or otherwise to the Prospective Buyer solely to the extent provided in the immediately following sentence; <u>provided</u>, <u>further</u>, that no Participating Seller in an Approved Sale shall be required to agree to a non-competition or non-solicitation covenant, notwithstanding the Company's or other Shareholders' willingness to agree to the foregoing. Subject to the immediately preceding proviso, each Participating Seller agrees to execute and deliver such agreements as may be reasonably specified by the Company or the Dragging Shareholders or Initiating Shareholders (as applicable) on terms and conditions no less favorable than those applicable to the other participating Shareholders, including agreements to (a) (i) make individual representations, warranties, covenants and other agreements as to the unencumbered title to its Company Securities and the power, authority and legal right to Transfer such Shareholder's Company Securities and the absence of any adverse claim with respect to such Company Securities and (ii) be liable without limitation as to such representations, warranties, covenants and other agreements and (b) be liable (whether by purchase price adjustment, indemnity payments or otherwise) in respect of representations, warranties, covenants and agreements in respect of the Company and its Subsidiary Companies; <u>provided</u>, <u>however</u>, that the aggregate amount of liability described in this clause (b) in connection with any Transfer of Company Securities shall not exceed such Participating Seller's *pro rata* portion of any such liability, to be determined in accordance with such Participating Seller's *pro rata* portion of the total consideration to be paid in such Transfer by the Prospective Buyer. Each Participating Seller hereby irrevocably constitutes and appoints the officers of the Company and the Dragging Shareholders or Initiating Shareholders (as applicable) with full power of substitution, as such Participating Seller's true and lawful, agent, representative, and attorneys-in-fact, in such Participating Seller's name, place and stead, to execute and deliver any and all agreements that such Persons reasonably believe are consistent with <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u> and the Persons shall provide a copy of such agreements to such Participating Seller within five Business Days of execution; <u>provided</u>, <u>however</u>, that failure to deliver such documents within such time period shall not impair or affect the validity of such agreements. The foregoing powers of attorney are given to secure a proprietary interest of the donee of the power or performance of an obligation owed to the donee and shall continue in full force and effect notwithstanding the subsequent death, incapacity, bankruptcy or dissolution of any Participating Seller. In connection with any Transfer to which this <u>Article IV</u> applies, each Participating Seller (i) appoints the officers of the Company and the Dragging Shareholders or Initiating Shareholders (as applicable) as its representatives to make all decisions in connection with any sale agreement (including the right to resolve any potential indemnification claims or other disputes on behalf of all Shareholders other than individual indemnification claims) and (ii) hereby grants to such Persons an irrevocable proxy coupled with an interest to vote its, his or her Company Securities (which proxy shall be valid and remain in effect until the provisions of <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u> expire pursuant to the closing of a Qualified Initial Public Offering, Qualified Direct Listing, Qualified SPAC or a Change of Control) in connection with, or in furtherance of, the exercise by the Company or the Dragging Shareholders or Initiating Shareholders (as applicable) of its rights under <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. <u>Process</u>. None of the officers of the Company, the Dragging Shareholders or Initiating Shareholders (as applicable) nor any of their respective Affiliates shall have any liability to any Shareholder arising from, relating to or in connection with the pursuit, consummation, postponement, abandonment or terms and conditions of any Tag Along Transfer or Approved Sale except to the extent the Company or the Dragging Shareholders or Initiating Shareholders (as applicable) shall have failed to comply with the provisions of this <u>Article IV</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. <u>Expenses</u>. All reasonable costs and expenses incurred by the Company, the Dragging Shareholders or the Initiating Shareholders (as applicable), or their respective officers or Affiliates in connection with any proposed Tag Along Transfer or Approved Sale pursuant to this <u>Article IV</u> (whether or not consummated) including all attorneys' fees and expenses, all accounting fees and charges and all finders, brokerage or investment banking fees, charges or commissions, shall be either (i) borne by the Shareholders (including the Dragging Shareholders or the Initiating Shareholders) based upon each Shareholder's *pro rata* share such that proceeds from any Transfer or Change of Control will be distributed as if they had been distributed after giving effect to such costs and expenses or (ii) paid by the Company. The reasonable fees and expenses of a single legal counsel representing any or all of the other Participating Sellers in connection with any proposed Tag Along Transfer or Approved Sale pursuant to this <u>Article IV</u> (whether or not consummated) shall be paid by the Company. Any other costs and expenses incurred by or on behalf of any or all of the other Participating Sellers in connection with any proposed Tag Along Transfer or Approved Sale pursuant to this <u>Article IV</u> (whether or not consummated) shall be borne by such Participating Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.4. <u>Closing</u>. The closing of a Transfer or Change of Control to which <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u> applies shall take place at such time and place as the Dragging Shareholders or Initiating Shareholders (as applicable) shall specify by notice to each Participating Seller within 30 days after the Tag Along Offer or Drag Along Notice, as applicable, is provided by the Company or the Dragging Shareholders or Initiating Shareholders (as applicable) in accordance with <u>Section</u> <u>4.2</u> or <u>Section</u> <u>4.3</u>. At the closing of such Tag Along Transfer or Approved Sale, each Participating Seller shall, if applicable, deliver any certificates evidencing the Company Securities to be Transferred by such Participating Seller, duly endorsed for Transfer and/or such other instruments of Transfer as the Company or the Dragging Shareholders or Initiating Shareholders (as applicable) may reasonably require, free and clear of any liens or encumbrances, with any necessary Transfer tax stamps affixed, against delivery of the applicable consideration. The delivery of any applicable Transfer documentation under this <u>Section</u> <u>4.4.4</u> will be deemed a representation and warranty by the Participating Seller delivering such documentation that: (i) such Participating Seller has full right, title and interest in and to the Company Securities being sold by such Participating Seller; (ii) such Participating Seller has all necessary power and authority and has taken all necessary action to sell the Company Securities being sold by such Participating Seller as contemplated; (iii) the Company Securities being sold by such Participating Seller are free and clear of any and all liens or encumbrances, (iv) there is no adverse claim pending or, to the Participating Seller's knowledge, threatened, with respect to the Company Securities being sold by such Participating Seller and (v) there are no consents required in connection with, or legal or contractual restrictions on, the Transfer of such Company Securities (other than pursuant to this Agreement, the Memorandum and Articles of Association or applicable securities laws).

**ARTICLE V** 

**INFORMATION RIGHTS** 

Section 5.1. <u>Major Investor Information Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. Each Major Investor shall have the right to be provided with copies of (i) monthly, quarterly and annual financial statements of the Company regularly prepared by or for the Company in addition to those provided to all Shareholders pursuant to the Memorandum and Articles of Association and (ii) other financial information that such Major Investors reasonably request from time to time; <u>provided</u>, <u>however</u>, that with respect to this clause (ii) the Company shall not be required to prepare or provide financial information that it does not regularly prepare or provide in the ordinary course of business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. All information received by any Major Investor pursuant to <u>Section</u> <u>5.1.1</u>, including any Confidential Information, shall be maintained in accordance with <u>Section</u> <u>8.</u><u>2.1</u>. The Board may, in its discretion, exclude or redact any information (in whole or part) from any materials to be made available to any Major Investor pursuant to <u>Section</u> <u>5.1.1</u> if the Board determines in good faith that such exclusion or redaction is reasonably necessary (i) to preserve attorney-client privilege or other similar privilege, (ii) to reasonably protect against the disclosure of competitively sensitive information, including information regarding a potential acquisition or divestiture by the Company or any of its Subsidiary Companies, or as may be required by applicable law or (iii) to the extent that any Major Investor has requested not to receive certain information in advance of the date the applicable materials are to be made available to such Major Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3. <u>PFIC Status; QEF Election</u>. The Board shall determine for each taxable year of the Company whether (i) the Company is more likely than not a "passive foreign investment company" as defined in Section 1297 of the Code (a "PFIC") and (ii) whether the Company owns an equity interest in an entity that is a PFIC. In the event the Board determines that the Company is more likely than not a PFIC or owns an equity interest in a PFIC, the Board shall (A) notify the Shareholders and (B), upon a Shareholder's reasonable request, provide such Shareholder with information that will enable such Shareholder to timely make and maintain a qualified electing fund election with respect to the Company or such entity, as applicable, pursuant to Section 1295 of the Code. The Board shall use commercially reasonable efforts to provide such information by March 31st of each year, or as soon as reasonably practicable thereafter. For purposes of this <u>Section</u> <u>5.1.3</u>, the term "owns" shall include both direct ownership and attributed ownership under Section 1298(a) of the Code.

**ARTICLE VI** 

**APPROVED REORGANIZATION; REGISTRATION RIGHTS** 

Section 6.1. <u>Approved Reorganization</u>. Subject to Article 11.1 of the Memorandum and Articles of Association, at any time that the Board and the Common Shareholders holding a majority of the voting power of the Common Shares approve a Reorganization of the Company (an "<u>Approved Reorganization</u>"), all Shareholders shall consent to and raise no objections against the Approved Reorganization. Each Shareholder shall waive, and hereby waives, any dissenter's rights, appraisal rights or similar rights in connection with such Approved Reorganization and each Shareholder shall agree, and hereby agrees, to contribute, exchange and/or otherwise Transfer his, her or its Company Securities on the terms and conditions approved by the Board and the applicable Common Shareholders, and consent to any other transaction constituting an Approved Reorganization of the Company, and hereby waives preemptive or other similar rights with respect to any share issuance to be effected in connection therewith. All Shareholders and the Company shall take all necessary and desirable actions in connection with the consummation of the Approved Reorganization, including the execution of such agreements and such instruments and other actions reasonably necessary to consummate such Approved Reorganization.

Section 6.2. <u>Registration Rights</u>. In connection with any Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, the Company shall, or shall take such actions as are required to cause its successor to, enter into a registration rights agreement with the holders of Common Shares (or their successor equity interests into which the Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares, Class C-1 Convertible Preference Shares are converted or exchanged) (the "<u>Conversion Securities</u>") pursuant to which the holders of such Conversion Securities will receive customary registration rights with respect to such Conversion Securities, including normal exceptions for market conditions, in each case, exercisable after 180 days following the Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC, including (a) two annual demand registration rights (on Form S-3 under the Securities Act or any

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successor form, if the Company or its successor is then eligible to file such form) for any one or multiple securityholders holding, in the aggregate, at least 10% of the outstanding Company Securities or Equity Securities of its successor (including the Conversion Securities), (b) one annual demand registration right (on Form S-3 under the Securities Act or any successor form, if the Company or its successor is then eligible to file such form) for any one or multiple securityholders holding, in the aggregate, at least 5% but less than 10%, of the outstanding Company Securities or Equity Securities of its successor (including the Conversion Securities), and (c) customary "piggyback" registration rights (including customary priority and cut-back limitations). The Company shall not, and shall cause its successor not to, offer registration rights to any Persons that are senior to, or *pari passu* with, the registration rights described in this <u>Section</u> <u>6.2</u> without the prior written approval of the holders of at least a majority of the Conversion Securities.

Section 6.3. <u>HSR</u>. Prior to the acquisition of securities with the right to vote in elections of Directors (including Common Shares), by any conversion of any Class A-1 Convertible Preference Shares, Class B-1 Convertible Preference Shares or Class C-1 Convertible Preference Shares to Common Shares or by the consummation of any Approved Reorganization, Qualified Initial Public Offering, Qualified Direct Listing, Qualified SPAC or other transaction, that requires the submission of any filings and the observance of a waiting period pursuant to the HSR Act, each such Shareholder (including the "acquiring person" as defined under the implementing regulations of the HSR Act) and the Company shall, as applicable (a) make or cause to be made all filings and submissions required of it or any of the Company Subsidiaries under the HSR Act or other applicable law (which filings and submissions shall seek early termination if made pursuant to the HSR Act and the equivalent, if available, with respect to any such other applicable law), (b) cooperate in good faith with each other, as applicable, with respect to making any filings and submissions under the HSR Act or other applicable law and (c) observe any waiting period required pursuant to the HSR Act or any other applicable law.

**ARTICLE VII** 

**EXIT TRANSACTION** 

Section 7.1. <u>Exit Transaction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1. If, as of the eighth anniversary of the Initial Class C Issuance Date, any Class C Shares remain outstanding, the Required Class C Shareholders shall have the right to appoint (subject to compliance with applicable laws and any required regulatory approvals that may be required by law) a majority of the members of a special committee of the Board (the "<u>Transaction Committee</u>"), which Transaction Committee shall be (and hereby is) delegated authority by the Board to (i) have oversight of and pursue a Liquidity Event on behalf of the Company and the Company Subsidiaries, (ii) assume control of the process relating to pursuing a Liquidity Event, in coordination with the Board, including the right to cause the Board or the Company to engage an investment bank of national reputation having experience in the industry in which the Company is engaged and professional legal advisers to assist in pursuing and consummating such Liquidity Event and (iii) subject to <u>Section</u> <u>7.1.3</u>, exercise the rights of the Dragging Shareholders, and cause the Company to exercise its rights, in each case, set forth in <u>Section</u> <u>4.2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2. The Required Class C Shareholders and the Transaction Committee shall use commercially reasonable efforts to maximize the Company's value for all Shareholders in evaluating potential Liquidity Events, including by taking into account valuation information provided by professional advisors engaged by the Company or the Transaction Committee, as well as any bids received, the identity of potential buyers, deal certainty and other factors. The Required Class C Shareholders shall provide the Company with prompt written notice of any proposed Liquidity Event setting out the nature of the Liquidity Event, the counterparties to the Liquidity Event and the nature and quantum of the consideration to be received by the Shareholders in the Liquidity Event (if any).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3. For the avoidance of doubt, notwithstanding anything to the contrary, ultimate approval over any Liquidity Event will remain with the Board acting in good faith (subject to compliance with applicable fiduciary duties).

**ARTICLE VIII** 

**MISCELLANEOUS** 

Section 8.1. <u>Indemnification</u>. The Company shall indemnify and hold harmless each Preference Shareholder, its Affiliates and their respective partners, directors, officers, employees, agents and other representatives (collectively, the "<u>Indemnified Parties</u>") from any and all claims, costs, liabilities or damages incurred thereby based upon, arising out of, or by reason of any third party or governmental claims relating to its direct or indirect status as an investor in the Company; *provided, however*, that no such claims, costs, liabilities or damages shall be indemnifiable if and to the extent they arise out of the fraud, willful misconduct or gross negligence of any Indemnified Party or are incurred as a result of or in connection with the unique or undisclosed tax or regulatory status of such Indemnified Party.

Section 8.2. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1. Unless approved by the Board in writing, or otherwise required by law, regulatory authority or the listing requirements of a securities exchange, each Shareholder shall, and shall cause each of its Affiliates and agents to, maintain the confidentiality of all Confidential Information. "<u>Confidential Information</u>" shall mean, with respect to any Shareholder, all information furnished to such Shareholder under this Agreement or otherwise in its capacity as a Shareholder, other than (i) information generally known to the public or the securities industry (other than as a result of dissemination by such Shareholder or its Affiliates), (ii) information obtained by such Shareholder from a third party who, insofar as known to such Shareholder, is not prohibited from transmitting the information to such Shareholder by a contractual, legal or fiduciary obligation to the Company, or (iii) information already in the possession of such Shareholder prior to its becoming a Shareholder; <u>provided</u>, <u>however</u>, that a Shareholder may disclose Confidential Information to such of its Affiliates and its and their employees, counsel, consultants, accountants and other agents and advisors who need to know such Confidential Information to oversee, manage, and operate the investment in the Company, but only if such persons also agree to maintain the confidentiality of such Confidential Information; <u>provided</u>, <u>further</u>, that a Shareholder that is a fund may disclose Disclosable Information about the Company to its limited partners and their agents who need to know such information to oversee, manage and operate the investment in such Shareholder, but only if such Persons are subject to a written confidentiality obligation sufficient to ensure compliance with this <u>Section</u> <u>8.2.1</u> with respect to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2. In the event that any Shareholder or its Affiliates and agents are required by law or legal process to disclose any Confidential Information, or other facts with respect thereto, such Shareholder shall provide the Company with reasonably prompt oral and written notice, unless notice is prohibited by law, of any such request or requirement so that the Company may seek a protective order or other appropriate remedy.

Section 8.3. <u>Counterparts</u>. This Agreement may be executed in more than one counterpart with the same effect as if the parties executing the several counterparts had all executed one counterpart; <u>provided</u>, <u>however</u>, that the several counterparts, in the aggregate, shall have been executed by all of the Parties. Any Person agreeing in writing to be bound by the provisions of this Agreement shall be deemed to have executed a counterpart of this Agreement for all purposes hereof.

Section 8.4. <u>Consent to Jurisdiction</u>. Unless otherwise agreed by the Parties in writing, each Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1. Irrevocably submits to the exclusive jurisdiction of any federal court in New York, New York for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement or the subject matter hereof or in any way connected to the dealings of any Shareholder or the Company in connection with any of the above;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.2. To the extent not prohibited by applicable law, waives and agrees not to assert, by way of motion, as a defense or otherwise, in any such proceeding brought in any of the above-named courts, any claim that such Party is not subject personally to the jurisdiction of such court, that such Party's property is exempt or immune from attachment or execution, that such proceeding is brought in an inconvenient forum, that the venue of such proceeding is improper, or that this Agreement or the subject matter hereof, may not be enforced in or by such court; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.3. To the extent not prohibited by applicable law, consents to service of process in any such proceeding in any manner permitted by the laws of the State of New York, agrees that service of process by registered or certified mail, return receipt requested, at the address specified pursuant to <u>Section</u> <u>8.6</u> is reasonably calculated to give actual notice, and waives and agrees not to assert by way of motion, as a defense or otherwise, in any such proceeding any claim that service of process made in accordance with this paragraph does not constitute good and sufficient service of process.

Section 8.5. <u>WAIVER OF JURY TRIAL</u>. **TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, UNLESS OTHERWISE AGREED BY THE PARTIES IN WRITING, EACH PARTY WAIVES, AND COVENANTS THAT SUCH PARTY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH THE DEALINGS OF ANY PARTY IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR OTHERWISE.** Any Party may file an original counterpart or a copy of this <u>Section</u> <u>8.5</u> with any court as written evidence of the consent of the Parties to the waiver of their rights to trial by jury.

Section 8.6. <u>Notices</u>. Any notice, demand or other communication given to a Party under this Agreement shall be deemed to be given if given in writing (including facsimile or electronic mail transmission) addressed, or sent by facsimile or electronic mail transmission, as provided below (or to the addressee at such other address, electronic mail address or facsimile number as the addressee shall have specified by notice actually received by the addressor), and if (a) actually delivered in fully legible form to such address (evidenced, in the case of delivery by same day or overnight courier, by confirmation of delivery from the courier service making such delivery), (b) in the case of a letter, five days shall have elapsed after the same shall have been deposited in the United States mails, with first-class postage prepaid, and (c) in the case of any notice, demand or other communication sent by facsimile or electronic mail transmission shall be deemed to have been given on the day such transmission shall have been sent if sent at or prior to 5:00 p.m. on the date of transmission and on the next succeeding Business Day if sent thereafter to such Party at its address, electronic mail address or facsimile number set forth on its respective signature page to this Agreement. Section 8 and 19(3) of the Electronic Transaction Law (2003 Revision) of the Cayman Islands shall not apply to this Agreement.

Section 8.7. <u>Waiver of Partition</u>. Each Shareholder hereby waives any rights to partition of Company property.

Section 8.8. <u>Successors</u>. This Agreement shall be binding on the executors, administrators, estates, heirs, legal representatives, successors and assigns of the Parties.

Section 8.9. <u>Entire Agreement</u>. This Agreement and the Memorandum and Articles of Association constitute the entire agreement among the Parties pertaining to the subject matter hereof and thereof and supersede all prior agreements and understandings pertaining thereto. To the extent any of the terms set forth in this Agreement conflict with the Memorandum and Articles of Association, the provisions of this Agreement shall

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control as among the Parties. Notwithstanding the provisions of this Agreement, it is hereby acknowledged and agreed that the Company, without the approval of any Shareholder or any other Person, may enter into a side letter or similar agreement (an "<u>Other Agreement</u>") to or with a Shareholder which has the effect of establishing rights under, or altering or supplementing the terms of (in a manner that may be materially favorable to such Shareholder), this Agreement with respect to the parties thereto. The parties hereto agree that any terms contained in an Other Agreement to or with a Shareholder shall govern with respect to such Shareholder notwithstanding the provisions of this Agreement.

Section 8.10. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of Cayman Islands without giving effect to any conflict or choice of law provisions that would make applicable the substantive law of any other jurisdiction.

Section 8.11. <u>Legal Counsel</u>. Accelerant Holding LP and the Company have engaged Sidley Austin LLP and Maples and Calder (Cayman) LLP as legal counsel to Accelerant Holding LP and the Company. Sidley Austin LLP has not been engaged by Accelerant Holding LP to protect or represent the interests of any other Shareholder (other than any such Shareholders which are affiliated with Accelerant Holding LP or with direct or indirect beneficial owners of Accelerant Holding LP) vis-à-vis the Company, Accelerant Holding LP or the preparation of this Agreement and no other legal counsel has been engaged by Accelerant Holding LP or the Company to act in such capacity. Each Party: (i) acknowledges that actual or potential conflicts of interest exist among the Parties, that such Party's interests will not be represented by legal counsel unless such Party engages counsel on its own behalf, and that such Party has been afforded the opportunity to engage and seek the advice of its own legal counsel before entering into this Agreement; and (ii) acknowledges that the approvals, acknowledgments and waivers made by such Party pursuant to this <u>Section</u> <u>8.11</u> do not reflect or create a right under this Agreement on the part of such Party to approve Accelerant Holding LP's selection of legal counsel to Accelerant Holding LP or the Company.

Section 8.12. <u>Severability of Provisions</u>. Each provision in this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

Section 8.13. <u>Third Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties (and their respective heirs, executors, administrators, successors and assigns) and nothing herein, express or implied, is intended to or shall confer upon any other Person, including any creditor of any Party, any legal or equitable right, benefit or remedy of any nature whatsoever under the Contracts (Rights of Third Parties) Act (As Revised) or by reason of this Agreement. Notwithstanding any other term of this Agreement, the consent of any Person who is not a party to this Agreement is not required for any variation of, amendment to, or release, rescission, or termination of, this Agreement.

Section 8.14. <u>Amendments</u>. Except for <u>Section</u> <u>8.1</u>, this Agreement may be amended, or any provision of this Agreement may be waived, only if set forth in a writing executed by the Company and the Common Shareholders holding a majority of the voting power of the Common Shares; <u>provided</u>, <u>however</u>, that no amendment to this Agreement shall disproportionately adversely affect any Preference Shareholder, as applicable, without the prior written consent of such Person and any amendment to <u>Section</u> <u>8.1</u> shall require the consent of the Required Class A Shareholders, the Required Class B Shareholders, or the Required Class C Shareholders, as applicable. No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

Section 8.15. <u>Obligations of Parties</u>. Each Party agrees to exercise all such Party's rights and powers to give effect to this Agreement and the Memorandum and Articles of Association and to cause the Company to, and the Company agrees that it will, conduct its proceedings in accordance with this Agreement and the Memorandum and Articles of Association.

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Section 8.16. <u>Intended Tax Treatment of Class</u> <u>A Shares and Class</u> <u>B Shares</u>. The Preference Shareholders and the board of Directors intend for the Class A Shares and Class B Shares to be treated as common stock that does not constitute "preferred stock" within the meaning of Section 305 of the Code.

**ARTICLE IX** 

**DEFINITIONS** 

Section 9.1. <u>Terms Defined Elsewhere</u>. The following terms are defined elsewhere in this Agreement, as indicated in the table below.

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| | |
|:---|:---|
| <u>Term</u> | <u>Defined in</u> |
| Agreement | Introduction |
| Approved Reorganization | Section 6.1 |
| Barings Nominee | Section 3.1.2(a) |
| Company | Introduction |
| Confidential Information | Section 8.2.1 |
| Conversion Securities | Section 6.2 |
| Drag Along Notice | Section 4.2.1 |
| Drag Along Sale Shares | Section 4.2 |
| Drag Along Seller | Section 4.2.1 |
| Dragging Shareholders | Section 4.2 |
| Eldridge Nominee | Section 3.1.1(a) |
| Indemnified Parties | Section 9.1 |
| Initiating Shareholders | Section 4.3 |
| Issuance | Section 1.1 |
| Non-Participating Member | Section 1.1.2 |
| Other Agreement | Section 8.9 |
| Party | Introduction |
| Participating Buyer | Section 1.1.2 |
| Participating Seller | Section 4.3.2 |
| Participation Commitment | Section 1.1.2 |
| Participation Notice | Section 1.1.1 |
| Participation Portion | Section 1.1.1(a) |
| PFIC | Section 5.1.3 |
| Prior Agreement | Introduction |
| Prospective Buyer | Section 4.2 |
| Subject Securities | Section 1.1 |
| Tag Along Holder | Section 4.3.1 |
| Tag Along Notice | Section 4.3.1 |
| Tag Along Offer | Section 4.3.2 |
| Tag Along Seller | Section 4.3.2 |
| Tag Along Shares | Section 4.3 |
| Tag Along Transfer | Section 4.3 |
| Tag Along Transfer Percentage | Section 4.3.1(a) |
| Transfer | Section 4.1.1 |

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Section 9.2. <u>Other Defined Terms</u>. The following terms shall have the meanings specified:

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement

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between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and, with respect to Persons that are individuals, also means the parents, grandparents, children, grandchildren and spouse of such individual, and trusts established for the benefit of any of the foregoing; <u>provided</u>, <u>however</u>, that the Company shall not be an "Affiliate" of any Shareholder for purposes of this Agreement and no Shareholder shall be an "Affiliate" of any other Shareholder simply by virtue of the fact that they each own Company Securities.

"<u>Barings</u>" means Barings LLC.

"<u>Barings Holders</u>" means Barings BDC, Inc., Barings Capital Investment Corporation, Barings Private Credit Corporation, Barings Global Special Situations Credit Fund 4 (Delaware), L.P., Barings Capital Solutions Perpetual (DE) Series LLC, Barings Capital Solutions Perpetual (LUX) Series LLC, Barings Capital Solutions Perpetual Fund (CA), L.P., Barings Finance LLC, Barings SPDF 1 Series LLC—Series A, CELF SPV LLC, Barings Global Special Situations Credit 4 (LUX) S.a.r.l. and Martello Re Limited, and their Permitted Transferees, and their successive Permitted Transferees.

"<u>Board</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Business Day</u>" means any day on which commercial banks in New York City, New York are open and conducting regular business.

"<u>Cause</u>" shall mean any one or more of the following: (a) commission of an act constituting a misdemeanor involving moral turpitude or any felony under the laws of the United States or any foreign jurisdiction or any state or political subdivision thereof (or the equivalent thereof in jurisdictions that do not have misdemeanor and felony designations), (b) commission of any act or omission on behalf of the Company that constitutes fraud, or (c) engagement in any act of sexual harassment or other unlawful harassment, discrimination, retaliation, or similar conduct that is prohibited by applicable law or the policies of the Company.

"<u>Change of Control</u>" of a Person means (i) the acquisition by any third Person of more than fifty percent (50%) of such Person's stock, membership interest or similar ownership interest in a transaction or series of related transactions; (ii) the sale, license, lease or transfer of all or substantially all of such Person's assets to a third Person, whether through a single transaction or series or related transactions; or (iii) any merger, consolidation or reorganization to which such Person is a party and as to which such Person is not the surviving entity or the sole owner of the surviving entity.

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>A Shareholder</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>A Shares</u>" means the Class A Convertible Preference Shares and the Class A-1 Convertible Preference Shares.

"<u>Class</u> <u>A-1 Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Common Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

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"<u>Class</u> <u>B Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>B Shareholder</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>B Shares</u>" means the Class B Convertible Preference Shares and the Class B-1 Convertible Preference Shares.

"<u>Class</u> <u>B-1 Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>C Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>C Preferred Securities Purchase Agreement</u>" means that certain securities purchase agreement, dated as of December 18, 2024, by and among the Company and the purchasers party thereto.

"<u>Class</u> <u>C Shareholder</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Class</u> <u>C Shares</u>" means the Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares.

"<u>Class</u> <u>C-1 Convertible Preference Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Closing</u>" has the meaning set forth in the Class C Preferred Securities Purchase Agreement.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Common Shareholder</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Company Securities</u>" means the Shares and any other Equity Securities of the Company.

"<u>Company Subsidiaries</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Conversion Rate</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Director</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Disclosable Information</u>" means, with respect to each Shareholder, (a) the name, address and vintage of the Company, (b) the amount of such Shareholder's aggregate capital contributions to the Company, (c) the net asset value of such Shareholder's interest in the Company, (d) the amount of distributions that have been made to such Shareholder by the Company, (e) such ratios and performance information calculated by such Shareholder using the information in clauses (b) through (d) above, including the ratio of net asset value plus distributions to contributions (*i.e.*, the "multiple"), and (f) such Shareholder's internal rate of return with respect to its investment in the Company.

"<u>Eldridge</u>" means Eldridge Accelerant Funding, LLC.

"<u>Equity Securities</u>" has the meaning set forth in the Memorandum and Articles of Association.

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"<u>FATCA</u>" means Section 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto.

"<u>HSR Act</u>" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

"<u>Initial Class</u> <u>C Issuance Date</u>" means December 18, 2024.

"<u>Liquidity Event</u>" means any (a) Qualified Initial Public Offering, Qualified Direct Listing or Qualified SPAC or (b) Change of Control.

"<u>Major Investor</u>" means (a) any Class A Shareholder who, together with its Affiliates, has made aggregate capital contributions equal to at least $10,000,000.00 to the Company, for so long as each such Class A Shareholder, together with its Affiliates, continues to own at least 10% of the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares (or their converted equivalent in Common Shares) initially issued to such Class A Shareholder and its Affiliates and (b) any Class B Shareholder who, together with its Affiliates, has made aggregate capital contributions equal to at least $25,000,000.00 to the Company, for so long as each such Class B Shareholder, together with its Affiliates, continues to own at least 50% of the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares (or their converted equivalent in Common Shares) initially issued to such Class B Shareholder and its Affiliates.

"<u>Management Incentive Plan</u>" means a management incentive plan adopted by the Board from time to time, not to exceed 10% of the Company Securities that, in any event, includes a minimum participation threshold of $3,864,344,418.

"<u>Memorandum and Articles of Association</u>" means the Third Amended and Restated Memorandum and Articles of Association of the Company, as amended or amended and restated from time to time.

"<u>Participation Right Percentage</u>" means, with respect to each Shareholder, the percentage equal to a fraction of which (i) the numerator is the number of Common Shares that are, as of any measuring time, held by such Shareholder <u>plus</u> the number of Common Shares that would be, as of such measuring time, held by such Shareholder assuming conversion of all Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares then held by such Shareholder at the then-applicable Conversion Rate and (ii) the denominator is the aggregate number of Common Shares outstanding as of such measuring time <u>plus</u> the number of Common Shares that would be outstanding as of such measuring time assuming conversion of all Class A Convertible Preference Shares, Class A-1 Convertible Preference Shares, Class B Convertible Preference Shares, Class B-1 Convertible Preference Shares, Class C Convertible Preference Shares, Class C-1 Convertible Preference Shares then outstanding at the then-applicable Conversion Rate.

"<u>Permitted Transferee</u>" means (a) with respect to any Shareholder that is not an individual, an Affiliate of such Shareholder or (b) with respect to any Shareholder that is an individual, (i) the spouse, parents, siblings or lineal descendants of such Shareholder or a corporation, limited liability company, limited partnership or trust established for the benefit of such Shareholder or any of the foregoing relations thereof; or (ii) any transferee receiving Company Securities of such Shareholder by will, intestacy laws or the laws or descent or survivorship; <u>provided</u>*,* <u>however</u>, that, in each case, such transferee shall execute a joinder in accordance with <u>Section</u> <u>4.1</u> pursuant to which it shall agree to be bound by the terms of this Agreement as a Shareholder.

"<u>Person</u>" means any individual or any business, corporation, partnership, joint venture, limited liability company, unincorporated association, trust or other enterprise.

"<u>Preference Shareholders</u>" means any Class A Shareholder, Class B Shareholder or Class C Shareholder.

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"<u>Purchasers</u>" has the meaning set forth in the Class C Preferred Securities Purchase Agreement.

"<u>Qualified Direct Listing</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Qualified Initial Public Offering</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Qualified SPAC</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Reorganization</u>" means any reorganization or recapitalization of the Company or exchange of Company Securities that substantially preserves the relative governance and economic terms of the Shareholders vis-à-vis each other and does not impose any disproportionately adverse tax impact on any Shareholder that owns greater than 2% of the equity value of the Company on a fully diluted basis without the consent of any such Shareholder.

"<u>Required Class</u> <u>A Shareholders</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Required Class</u> <u>B Shareholders</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Required Class</u> <u>C Shareholders</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Securities Act</u>" means the U.S. Securities Act of 1933, as amended from time to time.

"<u>Shareholders</u>" means, collectively, the Preference Shareholders and the Common Shareholders.

"<u>Shares</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Subsidiary Company</u>" has the meaning set forth in the Memorandum and Articles of Association.

"<u>Subsidiary Investments</u>" has the meaning set forth in the Memorandum and Articles of Association.

*{The remainder of this page is intentionally left blank.}* 

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IN WITNESS WHEREOF, the parties to this Agreement have executed the same as a deed on the date first above set forth in one or more separate counterparts each bearing the signature of one or more Party.

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| | | |
|:---|:---|:---|
| <u>COMPANY</u> | <u>COMPANY</u> | <u>ADDRESS</u> |
| ACCELERANT HOLDINGS | ACCELERANT HOLDINGS | Accelerant Holdings<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| By: | /s/ Jeff Radke | Accelerant Holdings<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| Name: Jeff Radke | Name: Jeff Radke | Accelerant Holdings<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| Title: Director | Title: Director | Accelerant Holdings<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| <u>COMMON SHAREHOLDERS</u> | <u>COMMON SHAREHOLDERS</u> |  |
| ACCELERANT HOLDINGS LP | ACCELERANT HOLDINGS LP | Accelerant Holdings LP<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| By: | /s/ Jeff Radke | Accelerant Holdings LP<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| Name: Jeff Radke | Name: Jeff Radke | Accelerant Holdings LP<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |
| Title: Director | Title: Director | Accelerant Holdings LP<br> Maples Corporate Services Limited<br> of P.O. Box 309, Ugland House Grand Cayman KY1-1104<br> Cayman Islands |

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[Signature Page to Second Amended and Restated Shareholders Agreement]

## Exhibit 4.1

**Exhibit 4.1**![LOGO](g543111g53g53.jpg)

ZQ\|CERT#\|COY\|CLS\|RGSTRY\|ACCT#\|TRANSTYPE\|RUN#\|TRANS# <br>CLASS A COMMON SHARES CLASS A COMMON SHARES <br>PAR VALUE $0.0001 <br>Certificate Number <br>ZQ00000000 <br>Shares <br>\* \* 000000 \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* <br>\* \* \* 000000 \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\* 000000 \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\*\* 000000 \*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\*\*\* 000000 \*\*\*\*\*\*\*\*\*\*\*\*\*\* <br>Accelerant Holdings <br>INCORPORATED UNDER THE LAWS OF GRAND CAYMAN <br>\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. MR. Alexander David SAMPLE Sample \*\*\*\* Mr. Alexander David &Sample MRS. \*\*\*\* Mr. Alexander SAMPLE David Sample \*\*\*\* Mr. Alexander & David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander MR. David Sample SAMPLE \*\*\*\* Mr. Alexander David Sample \*\*\*\* &Mr. Alexander MRS. David Sample SAMPLE \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Sample \*\*\*\* Mr. Sample <br>\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\* \*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\* 000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*0 00000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*00 \*\*\*ZERO HUNDRED THOUSAND 0000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000 000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*0000 00\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*00000 0\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000 ZERO HUNDRED AND ZERO\*\*\* \*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\* \*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*S <br>THIS CERTIFIES THAT <br>is the owner of <br>SEE REVERSE FOR CERTAIN DEFINITIONS <br>CUSIP G00894 10 8 <br>THIS CERTIFICATE IS TRANSFERABLE IN CITIES DESIGNATED BY THE TRANSFER <br>AGENT, AVAILABLE ONLINE AT www.computershare.com <br>FULLY-PAID AND NON-ASSESSABLE SHARES OF CLASS A COMMON SHARES OF <br>Accelerant Holdings (hereinafter called the "Company"), transferable on the books of the Company in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby, are issued and shall be held subject to all of the provisions of the Articles of Incorporation, as amended, and the By-Laws, as amended, of the Company (copies of which are on file with the Company and with the Transfer Agent), to all of which each holder, by acceptance hereof, assents. This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. <br>Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers. <br>FACSIMILE SIGNATURE TO COME <br>President <br>FACSIMILE SIGNATURE TO COME <br>Secretary <br>DATED DD-MMM-YYYY <br>COUNTERSIGNED AND REGISTERED: <br>COMPUTERSHARE TRUST COMPANY, N.A. <br>TRANSFER AGENT AND REGISTRAR, <br>By <br>AUTHORIZED SIGNATURE <br>Accelerant Holdings <br>PO Box 43004, Providence RI 02940-3004 <br>MR A SAMPLE <br>DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 <br>CUSIP/IDENTIFIER XXXXXX XX X <br>Holder ID XXXXXXXXXX <br>Insurance Value 1,000,000.00 Number of Shares 123456 <br>DTC 12345678 123456789012345 <br>Certificate Numbers Num/No Denom. Total. <br>1234567890/1234567890 111 1234567890/1234567890 222 1234567890/1234567890 333 1234567890/1234567890 444 1234567890/1234567890 555 1234567890/1234567890 666 <br>Total Transaction 7 <br>ACCELERANT HOLDINGS <br>CORPORATE <br>SEAL <br>Oct. 1, 2021 <br>GRAND CAYMAN <br>SECURITY INSTRUCTIONS ON REVERSE <br>1234567

## Exhibit 10.1

**Exhibit 10.1** 

**<u>DIRECTOR AND OFFICER</u>**

**<u>INDEMNIFICATION AGREEMENT</u>**

**THIS INDEMNIFICATION AGREEMENT** (this **"Agreement"**) is entered into as of the [ ] day of [ ], 2025, by and between Accelerant Holdings, a Cayman Islands exempted company (the **"Company"**), and [ ] ("**Indemnitee**").

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company is aware that competent and experienced persons are increasingly reluctant to serve or continue serving as directors or officers of companies unless they are protected by comprehensive liability insurance and adequate indemnification due to the increased exposure to litigation costs and risks resulting from service to such companies that often bear no relationship to the compensation of such directors or officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The statutes and judicial decisions regarding the duties of directors and officers are often insufficient to provide directors and officers with adequate, reliable knowledge of the legal risks to which they are exposed or the manner in which they are expected to execute their fiduciary duties and responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Company and the Indemnitee recognize that plaintiffs often seek damages in such large amounts, and the costs of litigation may be so great (whether or not the claims are meritorious), that the defense and/or settlement of such litigation can create an extraordinary burden on the personal resources of directors and officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The board of directors of the Company has concluded that, to attract and retain competent and experienced persons to serve as directors and officers of the Company, it is not only reasonable and prudent but necessary to promote the best interests of the Company and its shareholders for the Company to contractually indemnify its directors and certain of its officers in the manner set forth herein to the fullest extent permitted by applicable law and the Articles (as defined below), and to assume for itself liability for expenses and damages in connection with claims against such directors and officers in connection with their service to the Company as provided herein to the fullest extent permitted by applicable law and the Articles. The memorandum and articles of association (the "**Articles**") provide for the indemnification of the directors and officers of the Company. The Articles expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification, hold harmless, exoneration, advancement and reimbursement rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. This Agreement is a supplement to and in furtherance of the Articles and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitiee thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Company desires and has requested the Indemnitee to serve or continue to serve as a director and/or officer of the Company, and the Indemnitee is willing to serve, or to continue to serve, as a director and/or officer of the Company if the Indemnitee is furnished the indemnity provided for herein by the Company.

**NOW, THEREFORE,** in consideration of the foregoing premises and the mutual covenants and agreements set forth below, the parties hereto, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **<u>Definitions</u>**. For purposes of this Agreement, the following terms shall have the corresponding meanings set forth below.

**"Claim"** means a claim or action asserted by a Person in a Proceeding or any other written demand for relief in connection with or arising from an Indemnification Event.

**"Covered Entity"** means (i) the Company, (ii) any subsidiary of the Company or (iii) any other Person for which Indemnitee is or was or may be deemed to be serving, at the request of the Company or any subsidiary of the Company, as a director, officer, employee, controlling person, agent or fiduciary.

**"Exchange Act"** means the Securities Exchange Act of 1934, as amended.

**"Expenses"** means any and all direct and indirect fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating, printing and binding costs, telephone charges, postage and delivery service fees and all other disbursements or expenses of any type or nature whatsoever reasonably incurred by Indemnitee (including, subject to the limitations set forth in **Section 3(c)** below, reasonable attorneys' fees) in connection with or arising from an Indemnification Event, including, without limitation: (i) the investigation or defense of a Claim; (ii) being, or preparing to be, a witness or otherwise participating, or preparing to participate, in any Proceeding; (iii) furnishing, or preparing to furnish, documents in response to a subpoena or otherwise in connection with any Proceeding; (iv) any appeal of any judgment, outcome or determination in any Proceeding (including, without limitation, any premium, security for and other costs relating to any cost bond, supersedeas bond or any other appeal bond or its equivalent); (v) establishing or enforcing any right to indemnification under this Agreement (including, without limitation, pursuant to **Section 2(c)** below), the the applicable law and the Articles or otherwise, regardless of whether Indemnitee is ultimately successful in such action, unless as a part of such action, a court of competent jurisdiction over such action determines that each of the material assertions made by Indemnitee as a basis for such action was not made in good faith or was frivolous; (vi) Indemnitee's defense of any Proceeding instituted by or in the name of the Company under this Agreement to enforce, interpret or defend any of the terms of this Agreement or the Indemnitee's rights under this Agreement or under any directors' or officers' liability insurance policies

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maintained by the Company (including, without limitation, costs and expenses reasonably and properly incurred with respect to Indemnitee's counterclaims and cross-claims made in such action); and (vii) any Federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, including all interest, assessments and other charges paid or payable with respect to such payments. For purposes of clarification, Expenses shall not include Losses.

An **"Indemnification Event"** shall be deemed to have occurred if Indemnitee was or is or becomes, or is threatened to be made, a party to or witness or other participant in, or was or is or becomes obligated to furnish or furnishes documents in response to a subpoena or otherwise in connection with, any Proceeding by reason of the fact that Indemnitee is or was or may be deemed a director, officer, employee, controlling person, agent or fiduciary of any Covered Entity, or by reason of any action or inaction on the part of Indemnitee in any such capacity.

**"Independent Legal Counsel"** means an attorney or firm of attorneys that is experienced in matters of corporate law and neither presently is, nor in the thirty-six (36) months prior to such designation has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.

**"Losses"** means any and all losses, claims, damages, liabilities, judgments, fines, penalties, settlement payments, awards and amounts of any type whatsoever incurred by Indemnitee in connection with or arising from an Indemnification Event. For purposes of clarification, Losses shall not include Expenses.

**"Organizational Documents"** means any and all organizational documents, charters or similar agreements or governing documents, including, without limitation, (i) with respect to a company, its memorandum and articles of association, (ii) with respect to a limited liability company, its operating agreement, and (iii) with respect to a limited partnership, its partnership agreement.

**"Proceeding"** means any threatened, pending or completed claim, action, suit, proceeding, arbitration or alternative dispute resolution mechanism, investigation, inquiry, administrative hearing or appeal, whether brought in the right of a Covered Entity or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative, internal or investigative nature, including any appeal therefrom and including without limitation any such Proceeding pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on Indemnitee's part while acting as a director or officer of the Company, or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

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**"Person"** means an individual, a partnership, an exempted limited partnership, a company, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or other entity or government or agency or political subdivision thereof.

**"Reviewing Party"** means the any appropriate person or body consisting of a member or members of the board of directors or any other person or body appointed by the board of directors who is not a party to this particular Claim for which the Indemnitee is seeking indemnification, or Independent Legal Counsel; provided, that, in the event that a Change in Control has occurred, the Reviewing Party shall be Independent Legal Counsel (selected by Indemnitee) in a written opinion to the board of directors of the Company, a copy of which shall be delivered to the Indemnitee.

**"SEC"** means the Securities and Exchange Commission.

**"Securities Act"** means the Securities Act of 1933, as amended.

The phrase "to the fullest extent permitted by applicable law and the Articles" shall include, but not be limited to: (a) to the fullest extent authorized or permitted by the provision of applicable Cayman Islands law that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of applicable Cayman Islands law, and (b) to the fullest extent authorized or permitted by any amendments to or replacements of applicable Cayman Islands law adopted after the date of this Agreement that increase the extent to which a company or corporation may indemnify its officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Indemnification of Losses and Expenses</u>. If an Indemnification Event has occurred, then, subject to **Section 9** below, the Company shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law and the Articles, as such law may be amended from time to time (but in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than were permitted prior thereto) and other applicable law, against any and all Losses and Expenses; provided that the Company's commitment set forth in this **Section 2(a)** to indemnify the Indemnitee shall be subject to the limitations and procedural requirements set forth in this Agreement. The parties hereto intend that this Agreement, to the fullest extent permitted by applicable law, shall provide for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Articles, vote of its shareholders or directors or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Partial Indemnification</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Losses or Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Indemnification for Expenses of a Witness</u>. To the fullest extent permitted by applicable law and the Articles and to the extent that Indemnitee is, by reason of his or her corporate status, a witness, is or was made (or asked) to respond to discovery requests in any Proceeding or otherwise asked to participate in any respect of a Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Advancement of Expenses</u>. The Company shall advance any undisputed Expenses incurred by or on behalf of Indemnitee to the fullest extent permitted by the applicable law and the Articles, as such law may be amended from time to time (but in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than were permitted prior thereto) and other applicable law, prior to its final disposition and as soon as practicable, but in any event not later than thirty (30) days after written request therefor by Indemnitee, which request shall be accompanied by vouchers, invoices or similar evidence documenting in reasonable detail the Expenses incurred or to be incurred by Indemnitee; provided, however, that Indemnitee need not submit to the Company any information that counsel for Indemnitee reasonably deems is privileged and exempt from compulsory disclosure in any Proceeding. Execution and delivery of this Agreement by the Indemnitee constitutes an undertaking to repay such amounts advanced only if, and to the extent that, it shall finally be determined that Indemnitee is not entitled to be indemnified by the Company as authorized by this Agreement in accordance with the provisions of **Section 4**. No other form of undertaking shall be required other than the execution of this Agreement. Advancement shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Contribution</u>. To the fullest extent permissible under applicable law and the Articles, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for Losses or Expenses, in connection with any Proceeding relating to an Indemnification Event under this Agreement, in such proportion as is deemed fair and reasonable by the Reviewing Party in light of all of the circumstances of such Proceeding in order to reflect (1) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such Proceeding; and (2) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **<u>Indemnification Procedures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Notice of Indemnification Event</u>. Indemnitee shall give the Company notice as soon as reasonably practicable of any Indemnification Event of which Indemnitee becomes aware and of any request for indemnification hereunder, provided that any failure to so notify the Company shall not relieve the Company of any of its obligations under this Agreement, except if, and then only to the extent that, such failure materially prejudices the Company under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Notice to Insurers</u>. The Company shall give prompt written notice of any Indemnification Event which may be covered by the Company's liability insurance to the insurers in accordance with the procedures set forth in each of the applicable policies of insurance. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Indemnification Event in accordance with the terms of such policies; provided that nothing in this **Section 3(b)** shall affect the Company's obligations under this Agreement or the Company's obligations to comply with the provisions of this Agreement in a timely manner as provided. For the avoidance of doubt, nothing in this **Section 3(b)** or elsewhere in this Agreement shall be deemed to prohibit Indemnitee from giving notice of claims directly to the insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Selection of Counsel</u>. If the Company shall be obligated hereunder to pay or advance Expenses or indemnify Indemnitee with respect to any Losses, the Company shall be entitled to assume the defense of any related Claims, with counsel selected by the Company. After the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the defense of such Claims; provided that: (i) Indemnitee shall have the right to employ counsel in connection with any such Claim at Indemnitee's expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) counsel for Indemnitee shall have provided the Company with written advice that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to retain such counsel to defend such Claim, then the reasonably and properly incurred fees and expenses of Indemnitee's counsel shall be at the expense of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **<u>Determination of Right to Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Successful Proceeding</u>. To the extent Indemnitee has been successful, on the merits or otherwise, in defense of any Proceeding referred to in **Section 2(a)**, the Company shall indemnify Indemnitee against Losses and Expenses incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to one or more but less than all Claims in such Proceeding, the Company shall indemnify Indemnitee against all Losses and Expenses actually or reasonably incurred by Indemnitee in connection with each successfully resolved Claim to the fullest extent permitted by applicable law and the Articles. For purposes of this section, the termination of any Claim in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Other Proceedings</u>. In the event that **Section 4(a)** is inapplicable, the Company shall nevertheless indemnify Indemnitee as provided in **Section 2(a)**, **2(b)** or **2(c),** as applicable, or provide a contribution payment to the Indemnitee as provided in **Section 2(e)**, to the extent determined by the Reviewing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Reviewing Party Determination</u>. A Reviewing Party chosen by the Company's board of directors shall determine whether Indemnitee is entitled to indemnification, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A Reviewing Party so chosen shall act in the utmost good faith to assure Indemnitee a complete opportunity to present to such Reviewing Party Indemnitee's case that Indemnitee has met the applicable standard of conduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of a Covered Entity, including, without limitation, its financial statements, or on information supplied to Indemnitee by the officers or employees of a Covered Entity in the course of their duties, or on the advice of legal counsel for a Covered Entity or on information or records given, or reports made, to a Covered Entity by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by a Covered Entity. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of a Covered Entity shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this **Section 4(c)(ii)** are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. Any Person seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If a Reviewing Party chosen pursuant to this **Section 4(c)** shall not have made a determination whether Indemnitee is entitled to indemnification within thirty (30) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (A) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (B) a prohibition of such indemnification under applicable law; provided, however, that such thirty (30) day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the Reviewing Party in good faith requires such additional time for obtaining or evaluating documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this **Section 4(c)(iii)** shall not apply if (I) the determination of entitlement to indemnification is to be made by the shareholders of the Company, (II) a special meeting of shareholders is called by the board of directors of the Company for such purpose within thirty (30) days after the shareholders are chosen as the Reviewing Party, (III) such meeting is held for such purpose within sixty (60) days after having been so called, and (IV) such determination is made thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Appeal to Court</u>. Notwithstanding a determination by a Reviewing Party chosen pursuant to **Section 4(c)** that Indemnitee is not entitled to indemnification with respect to a specific Claim or Proceeding (an **"Adverse Determination"**), Indemnitee shall have the right to apply to the court in which that Claim or Proceeding is or was pending or any other court of competent jurisdiction for the purpose of enforcing Indemnitee's right to indemnification pursuant to this Agreement, provided that Indemnitee shall commence any such Proceeding seeking to enforce Indemnitee's right to indemnification within one (1) year following the date upon which Indemnitee is notified in writing by the Company of the Adverse Determination. In the event of any dispute between the parties concerning their respective rights and obligations hereunder, the Company shall have the burden of proving that the Company is not obligated to make the payment or advance claimed by Indemnitee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Presumption of Success</u>. The Company acknowledges that a settlement or other disposition short of final judgment shall be deemed a successful resolution for purposes of **Section 4(a)** if it permits a party to avoid expense, delay, distraction, disruption or uncertainty. In the event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such Proceeding with or without payment of money or other consideration), it shall be presumed that Indemnitee has been successful on the merits or otherwise in such Proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Settlement and Termination of Claims</u>. The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the Company's prior written consent. The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee's prior written consent. Neither the Company nor the Indemnitee will unreasonably withhold, delay or refuse their consent to any proposed settlement. The Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action; the Company's liability hereunder shall not be excused if participation in the Proceeding by the Company was barred by this Agreement. The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of *nolo contendere* or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **<u>Additional Indemnification Rights; Non-exclusivity</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Scope</u>**.** The Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by applicable law and the Articles, even if such indemnification is not specifically authorized by the other provisions of this Agreement or any other agreement, the Organizational Documents of any Covered Entity or by applicable law. In the event of any change after the date of this Agreement in any applicable law, statute or rule that expands the right of a Cayman Islands exempted company to indemnify a member of its board of directors or an officer, employee, controlling person, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change. In the event of any change in any applicable law, statute or rule that narrows the right of a Cayman Islands exempted comapny to indemnify a member of its board of directors or an officer, employee, controlling person, agent or fiduciary, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties rights and obligations hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Non-exclusivity</u>**.** The rights to indemnification, contribution and advancement of Expenses provided in this Agreement shall not be deemed exclusive of, but shall be in addition to, any other rights to which Indemnitee may at any time be entitled under the Organizational Documents of any Covered Entity, any other agreement, any vote of shareholders, the laws of the State of Delaware, the laws of the Cayman Islands or otherwise and shall be interpreted independently of, and without reference to, any other such rights to which Indemnitee may at any time be entitled. Furthermore, no right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder or otherwise shall not prevent the concurrent assertion of any other right or remedy. The rights to indemnification, contribution and advancement of Expenses provided in this Agreement shall continue as to Indemnitee for any action Indemnitee took or did not take while serving in an indemnified capacity even though Indemnitee may have ceased to serve in such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>[Primary Responsibility</u>. The Company acknowledges that Indemnitee has certain rights to indemnification and advancement of expenses provided by [ ] and certain of its affiliates (collectively, the "Secondary Indemnitors"). The Company agrees that, as between the Company and the Secondary Indemnitors, the Company is primarily responsible for amounts required to be indemnified or advanced under the Company's Organizational Documents or this Agreement and any obligation of the Secondary Indemnitors to provide indemnification or advancement for the same amounts is secondary to those Company obligations. The Company waives any right of contribution or subrogation against the Secondary Indemnitors with respect to the liabilities for which the Company is primarily responsible under this **Section 3(c)**. In the event of any payment by the Secondary Indemnitors of amounts otherwise required to be indemnified or advanced by the Company under the Company's Organizational Documents or this Agreement, the Secondary Indemnitors shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee for indemnification or advancement of expenses under the Company's Organizational Documents or this Agreement or, to the extent such subrogation is unavailable and contribution is found to be the applicable remedy, shall have a right of contribution with respect to the amounts paid. The Secondary Indemnitors are express third-party beneficiaries of the terms of this **Section 5(c)**.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **<u>No Duplication of Payments</u>.** The Company shall not be liable under this Agreement to make any payment of any amount otherwise indemnifiable hereunder, or for which advancement is provided hereunder, if and to the extent Indemnitee has otherwise actually received such payment, whether pursuant to any insurance policy, the Organizational Documents of any Covered Entity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **<u>Mutual Acknowledgment</u>**. Both the Company and Indemnitee acknowledge that, in certain instances, Federal law any other applicable law or public policy may override applicable state law and prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the SEC has taken the position that indemnification is not permissible for liabilities arising under certain Federal securities laws, and Federal legislation prohibits indemnification for certain violations of the Employee Retirement Income Security Act of 1979, as amended. Indemnitee understands and acknowledges that the Company has undertaken, or may be required in the future to undertake, with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to indemnify Indemnitee, and any right to indemnification hereunder shall be subject to, and conditioned upon, any such required court determination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **<u>Liability Insurance</u>.** The Company shall maintain liability insurance applicable to directors and officers of the Company and shall cause Indemnitee to be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's officers and directors (other than in the case of an independent director liability insurance policy if Indemnitee is not an independent or outside director). Upon request by the Indemnitee, the Company shall advise Indemnitee as to the general terms of, and the amounts of coverage provide by, any liability insurance policy described in this **Section 8** and shall promptly notify Indemnitee if, at any time, any such insurance policy is terminated or expired without renewal or if the amount of coverage under any such insurance policy will be materially decreased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **<u>Exceptions</u>.** Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against any Losses or Expenses, or advance Expenses to Indemnitee, with respect to Claims initiated or brought voluntarily by Indemnitee, and not by way of defense (including, without limitation, affirmative defenses and counter-claims), except (i) Claims to establish or enforce a right to indemnification, contribution or advancement with respect to an Indemnification Event, whether under this Agreement, any other agreement or insurance policy, the Company's Organizational Documents of any Covered Entity, the laws of the State of Delaware or otherwise, or (ii) if the Company's board of directors has approved specifically the initiation or bringing of such Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against any Losses or Expenses, or advance Expenses to Indemnitee, with respect to Claims arising (i) with respect to an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or (ii) pursuant to Section 304 or 306 of the Sarbanes-Oxley Act of 2002, as amended, or any rule or regulation promulgated pursuant thereto; provided that the Company shall be obligated to advance Expenses to Indemnitee for the purpose of defending of such Claims; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, and to the extent, that a court of competent jurisdiction renders a final, unappealable decision that such indemnification is not lawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Counterparts</u>**.** This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Binding Effect; Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns (including with respect to the Company, any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company) and with respect to Indemnitee, his or her spouse, heirs, and personal and legal

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representatives. The Company shall require and cause any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. This Agreement shall continue in effect with respect to Claims relating to Indemnification Events regardless of whether Indemnitee continues to serve as a director, officer, employee, controlling person, agent or fiduciary of any Covered Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Notice</u>. All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event be deemed to be given (a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, or (c) one (1) business day after the business day of deposit with Federal Express or similar, nationally recognized overnight courier, freight prepaid, if to Indemnitee, to the Indemnitee's address as set forth beneath the Indemnitee's signature to this Agreement, or, if to the Company, at the address of its principal corporate offices (attention: Secretary), or at such other address as such party may designate to the other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Enforceability</u>. This Agreement is a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Consent to Jurisdiction</u>. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction and venue of the courts of the State of Delaware for all purposes in connection with any Proceeding which arises out of or relates to this Agreement and agree that any Proceeding instituted under this Agreement shall be commenced, prosecuted and continued only in the courts of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Severability</u>. The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by applicable law and the Articles. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, void or otherwise unenforceable that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the extent manifested by the provision held invalid, illegal or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Choice of Law</u>. This Agreement shall be governed by and its provisions shall be construed and enforced in accordance with, the laws of the State of Delaware, without regard to the conflict of laws principles thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Subrogation</u>. [Except as set forth in Section 5(c) herein,] in the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Amendment and Termination</u>. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in a writing signed by the party to be bound thereby. Notice of same shall be provided to the other party hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>No Construction as Employment Agreement</u>. This Agreement is not an employment agreement between the Company and the Indemnitee and nothing contained in this Agreement shall be construed as giving Indemnitee any right to be retained or continue in the employ or service of any Covered Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. <u>Supersedes Previous Agreements</u>. This Agreement supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. All such prior agreements and understandings are hereby terminated and deemed of no further force or effect.

**[remainder of page intentionally left blank; signature page follows]** 

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**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement on and as of the day and year first above written.

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| |
|:---|
| **ACCELERANT HOLDINGS:** |
| a Cayman Islands exempted company |
| By: |
| Name: |
| Title: |
| **INDEMNITEE:** |

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## Exhibit 10.2

**Exhibit 10.2** 

**<u>AMENDED AND RESTATED EMPLOYMENT AGREEMENT</u>**

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "<u>A</u>g<u>reemen</u>t"), by and between Accelerant Holdings, a Cayman Islands exempted company incorporated with limited liability (the "<u>Company</u>"), Accelerant Risk Exchange LLC, a Puerto Rico limited liability company (the "<u>Risk Exchange</u>"), and Jeffrey Lee Radke ("<u>You</u>" or "<u>Your</u>") (each, a "<u>Party</u>" and collectively, the "<u>Parties</u>"), is entered into as of the [ ] day of June, 2025 and effective as of the date of the consummation of an initial public offering of the Company or the Risk Exchange (or the applicable subsidiary thereof that serves as the "IPO vehicle") (an "<u>IPO</u>" and such date, the "<u>Effective Date</u>"). The terms of this Agreement shall be applicable to all conditions occurring after the Effective Date.

WHEREAS, as of the date hereof, You are an employee of the Company and the Risk Exchange;

WHEREAS, the Parties desire to enter into this Agreement, as an amendment and restatement to the Employment Agreement, effective as of April 4, 2022, by and between Accelerant Holdings, Accelerant Holdings (Cayman) Ltd., and You (the "<u>Prior A</u>g<u>reemen</u>t"), to express the terms and conditions of Your continued employment with the Company, the Risk Exchange (or any of the Company's other affiliates) as described herein; and

WHEREAS, as a condition to and as consideration for the Company's and the Risk Exchange's entry into this Agreement, including the enhanced severance benefits provided hereunder, You desire and agree to enter into the Restrictive Covenant Agreement as of the Effective Date.

NOW, THEREFORE, in consideration of the mutual agreements in this Agreement, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>At-Will Employment</u>. Your employment with the Company and the Risk Exchange shall be and remain at all times an at-will relationship. This means that at either Your option, the Company's option or the Risk Exchange's option, Your employment may be terminated at any time, with or without Cause, without advance notice in the case of a termination for Cause (but subject to any cure rights set forth in the definition thereof), and upon 30 days' advance notice in the case of all other terminations. The period from the Effective Date through the date of the termination of Your employment hereunder is referred to herein as the "<u>Term</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Positions and Authority</u>. During the Term you will be employed by the Risk Exchange, which will be Your primary employer, and you shall serve as its Chief Executive Officer and, subject to applicable law and the governing documents of the Risk Exchange, shall serve as a member of the Board Managers of the Risk Exchange (the "<u>Managers</u>"). You shall continue to perform such duties and services, and continue to have the responsibilities and authority, appropriate to your position with the Risk Exchange as the Parties may mutually agree upon from time to time, which duties, services, responsibilities and authority shall be at least commensurate with the duties, services, responsibilities and authorities of persons in similar capacities in similarly sized companies. You also shall serve in the position of Chief Executive Officer of the Company and shall perform such duties and services, and have such responsibilities and authority, at least commensurate with the duties, services, responsibilities and authorities of persons in similar capacities in similarly sized companies, or shall serve in such other positions as the Parties may mutually agree. On the Effective Date, You shall continue to serve as a member of the Board of Directors of the Company (the "<u>Board</u>") and, during Your service as Chief Executive Officer, to the extent the Company or the Risk Exchange is listed on a nationally recognized public securities market and subject to applicable law and the governing documents of the Company and the Risk Exchange, the Company shall

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cause You to be nominated for election as a member of the Board (and, absent such listing, You shall, subject to applicable law and the governing documents of the Company and the Risk Exchange, continue to serve on the Board). You shall report directly to the Board during the Term. You agree to serve in the officer position referred to in this Section 2 and continue to serve as a director of the Company, including if elected or reelected by the shareholders of the Company, and to perform diligently and to the best of Your abilities the duties and services pertaining to such offices as set forth in the memorandum, articles of association and other broad-based written policies of the Company that are made available to You, as well as such additional duties and services appropriate to such offices that the Parties may mutually agree upon from time to time in accordance with this Section 2. During the Term, as You are a resident and domicile of the territory of Puerto Rico, Your principal place of employment will be in Puerto Rico where You shall work remotely consistent with Company policy, subject to business travel as reasonably necessary in the performance of Your duties for the Company. For the avoidance of doubt, the Company specifically gives its permission for You to act on behalf of the Company in carrying out Your duties hereunder while you are in Puerto Rico and acknowledges such is expected to be Your base of operations while working remotely.

During the Term, You shall devote substantially all of Your business time and efforts to the business and affairs of the Risk Exchange, the Company and the Company's other subsidiaries, provided that You shall be entitled to serve on civic, charitable, educational, religious, public interest or public service boards, to participate in charitable, civic, educational, professional, community or industry affairs and to manage Your personal and family investments, in each case, to the extent such activities do not materially interfere with the performance of Your duties and responsibilities hereunder. You shall not become a director of any for profit entity without first receiving the approval of the Nominating and Corporate Governance Committee of the Board (which approval shall not be unreasonably withheld or delayed). The Company acknowledges and expressly approves the directorships and memberships You currently hold as set forth on Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Compensation</u>. As base compensation (as in effect from time to time, "Base Compensation") for Your performance of Your duties hereunder, (i) the Company and the Risk Exchange shall pay to You a base salary of $350,000 per year in cash ($175,000 of which shall be payable as compensation for Your performance of Your duties for the Risk Exchange and $175,000 of which shall be payable as compensation for Your performance of Your other duties for the Company and its other subsidiaries), payable in accordance with the normal payroll practices of the Company and the Risk Exchange (but no less than monthly), and (ii) the Risk Exchange shall pay to you $720,130 per year in the form of quarterly cash dividends on 5 Series A Preferred Units of the Risk Exchange granted to you in connection with your entrance into this Agreement (the "<u>Preferred Units</u>"). While you remain in service with the Risk Exchange, you will be a Preferred Unit Member entitled to cash dividends as determined by the Managers and subject to approval by the Compensation Committee of the Board (the "<u>Compensation Committee</u>"). Your Base Compensation may be increased, but not decreased, based upon review by the Compensation Committee in good faith, based upon the Risk Exchange's, the Company's and Your performance, and the Risk Exchange's and the Company's pay philosophy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Incentive Compensation/Dividends</u>. During the Term, You shall be eligible to participate in the annual bonus programs maintained for senior executive officers of the Risk Exchange and the Company (collectively, the "<u>Annual Incentive Pro</u>g<u>ram</u>"), with a target annual bonus opportunity equal to at least 150% of your combined Base Compensation under Section 3(a). The actual amount of the annual bonus earned by and payable or allocable to You for any year or portion of a year, as

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applicable, shall be determined upon the satisfaction of goals and objectives established by the Compensation Committee after consulting with you, and shall be subject to such other terms and conditions of the Annual Incentive Program as in effect from time to time. Each bonus awarded under the Annual Incentive Program shall be delivered to You as soon as possible but no later than two and a half months following the calendar year in which the bonus is earned and determined by the Compensation Committee and shall be, to the maximum extent possible, delivered in the form of cash dividends with respect to the Preferred Units. Except as provided in Section 4, Your right to a bonus under the Annual Incentive Program is subject to Your continued service with the Risk Exchange or the Company, as applicable, through the applicable payment date of the bonus, except as set forth in Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Equity Incentive Program</u>. In addition, during the Term, You shall be eligible to participate in the equity incentive program maintained for senior executive officers of the Company and its subsidiaries (the "<u>Equity Incentive Program</u>"), with an Equity Incentive Program target opportunity and equity vehicles determined by the Compensation Committee for each year of participation thereunder. A portion of the equity awards granted to you under the Equity Incentive Program shall be deemed granted in connection with Your services to the Risk Exchange (pro rata to the portion of your Base Compensation paid by the Risk Exchange).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Employee Benefits and Perquisites</u>. During the Term, (i) You shall be entitled to receive all benefits and perquisites of employment generally available to other members of the and the Risk Exchanges and the Company's senior executive management, subject to Your satisfaction of the eligibility or participation criteria therefor, and (ii) the Risk Exchange and the Company each reserves the right to modify or terminate the broad-based employee benefits and perquisites at its discretion in accordance with the terms of such plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Business Expenses</u>. Subject to Section 22, You shall be reimbursed for reasonable travel and other expenses incurred in the performance of Your duties on behalf of the Risk Exchange and the Company in a manner consistent with their written policies that have been provided to You regarding such reimbursements, as may be in effect from time to time.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Legal Expenses</u>. Upon presentation of substantiating documentation, the Company and the Risk Exchange will pay or reimburse (pro rata to the portion of your Base Compensation paid by the Company and the Risk Exchange), Your legal fees incurred in connection with the negotiation and drafting of this Agreement and ancillary documents related hereto up to a maximum of $[ ], which will be paid or reimbursed to You within 30 days following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation Upon Termination</u>. Subject to the terms and conditions of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death</u>. If Your employment with the Risk Exchange, the Company or any of the Company's other affiliates is terminated as a result of Your death, the Company and the Risk Exchange shall, pro rata to the portion of your Base Compensation paid by the Company and the Risk Exchange, pay Your estate, or as may be directed by the legal representatives of Your estate, (i) Your Base Compensation due through the date of termination, any unreimbursed business expenses though the date of termination pursuant to Section 3(e) hereof, payment in lieu of any paid time off accrued but unused through the termination date and any accrued or vested benefits under the plans of the Risk Exchange, the Company or any of the Company's other affiliates as of the termination date (the "<u>Accrued Rights</u>"), and (ii) a pro rata portion of Your annual bonus for the fiscal year of termination, with such bonus based on actual

<sup>1</sup> Note to Draft: Please confirm the Company's travel policy for Jeff/executives.

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performance results for the fiscal year of termination and pro-rated for the portion of the year during which You were employed by the Risk Exchange and the Company, and such bonus payable at the same time bonuses are paid to executive officers of the Risk Exchange Company and the Company (but in any event no later than two and a half months following the calendar year in which the bonus is earned).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. If Your employment with the Risk Exchange, the Company or any of the Company's other affiliates is terminated by the Risk Exchange, the Company or any such affiliate as a result of You being substantially unable to perform the essential functions of Your then-current position with the Risk Exchange, the Company or any such affiliate by reason of illness, physical or mental disability or other similar incapacity, which inability shall continue for three (3) consecutive months after the Risk Exchange, the Company or any such affiliate has provided reasonable accommodation for such disability or similar incapacity (provided that until such termination, You shall continue to receive Your then-current compensation and benefits, reduced by any benefits payable to You under any disability insurance policy or disability benefit plan applicable to You that is maintained for your benefit by the Company or the Risk Exchange), the Risk Exchange and the Company shall, pro rata to the portion of your Base Compensation paid by the Company and the Risk Exchange, pay You (i) Your Accrued Rights, and (ii) a pro rata portion of Your annual bonus for the fiscal year of termination as determined by the Compensation Committee, with such bonus based on actual performance results for the fiscal year of termination and pro-rated for the portion of the year during which You were employed by the Risk Exchange and the Company, and with such bonus payable at the same time bonuses are paid to executive officers of the Risk Exchange and the Company (but in any event no later than two and a half months following the fiscal year in which the bonus is earned); provided, that payments so made to You with respect to any period that You are substantially unable to perform the essential functions of Your then-current position with the Risk Exchange, the Company or any of the Company's other affiliates by reason of illness, physical or mental illness or other similar incapacity shall be reduced by the sum of the amounts, if any, payable to You by reason of such disability, at or prior to the time of any such payment, under any disability insurance policy or disability benefit plan applicable to You that is maintained for your benefit by the Company or the Risk Exchange, and which amounts have not previously been applied to reduce any such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination by the Risk Exchange or the Company for Cause or by You without Good Reason</u>. If (x) the Risk Exchange, the Company or any of the Company's other affiliates terminates Your employment for Cause, or (y) You terminate Your employment without Good Reason, the Risk Exchange and the Company shall, pro rata to the portion of your Base Compensation paid by the Company and the Risk Exchange, pay You Your Accrued Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Risk Exchange or the Company without Cause or by You with Good Reason</u>. If (x) the Risk Exchange, the Company or any of the Company's other affiliates terminates Your employment without Cause, or (y) You terminate Your employment for Good Reason, the Risk Exchange and the Company shall, pro rata to the portion of your Base Compensation paid by the Company and the Risk Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) pay You (i) Your Accrued Rights, and (ii) an aggregate amount equal to two (2) times Your then-current annual Base Compensation, plus Your target annual cash bonus for the fiscal year of termination (provided, that if Your termination occurs prior to the date on which target annual bonuses are determined for the fiscal year of termination, Your target annual bonus shall be based on the target annual bonus established for the fiscal year preceding the fiscal year of termination), with such amount paid in substantially equal installments as of the last day of each month during the twelve (12) month period commencing on Your date of termination, with the first installment paid within sixty (60) days following Your termination of employment and such first

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installment including such amounts as would have otherwise been paid during the period beginning on the date of Your termination of employment and ending on such payment date; *provided, however*, that if the conditions of Section 5 have not been met upon the date(s) that any payment is or payments are due pursuant to clauses (ii) under this Section 4(d)(A), such payment(s) will not be made upon the date specified above, and such withheld payment(s) will instead be made, subject to Section 22, on the first payroll date following the effective date of the Separation & Release Agreement (as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) reimburse You, on a monthly basis, for any COBRA premiums You pay for You and any of Your dependents through the eighteen (18)-month anniversary of the termination date (the "<u>COBRA Continuation Period</u>"), if and to the extent You and/or Your eligible dependents are entitled to and elect COBRA continuation coverage under the Company's major medical group plan in which You and/or Your dependents participated immediately prior to the date of termination, *provided, however*, that (i) notwithstanding anything in this subsection to the contrary, all other terms and provisions of the Company major medical group plan governing Your rights and Your dependent's rights under COBRA shall apply, (ii) payments pursuant to this Section 4(d)(B) shall cease earlier than the expiration of the COBRA Continuation Period if You become eligible to receive substantially comparable health benefits pursuant to a plan maintained by a subsequent employer during such period, and You shall promptly notify the Company of Your becoming eligible for such coverage, (iii) amounts paid by the Company will be taxable to the extent required to avoid adverse consequences to You or the Company under either Code §105(h) or the Patient Protection and Affordable Care Act of 2010 and (iv) if the conditions of Section 5 have not been met upon the date(s) that any reimbursement is or reimbursements are due pursuant to this Section 4(d)(B), such reimbursement(s) will not be made until the conditions of Section 5 have been met, and any such withheld reimbursement(s) will instead be made, subject to Section 22, on the first payroll date following the effective date of the Separation & Release Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Treatment of Equity Grants and Awards</u>. For the avoidance of doubt, upon your termination for any reason, the treatment of any equity or equity-like grants or awards to you by the Risk Exchange, the Company or any of the Company's other affiliates shall be determined in accordance with the terms and conditions of such grant or award and any applicable plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Release Obli</u>g<u>ations; No Other Severance</u>. The Risk Exchange's and the Company's obligation to pay You the separation payments set forth in Section 4(d) (excluding Your Accrued Rights due through the date of termination) shall be conditioned upon Your execution and non-revocation, within the timeframe specified by the Risk Exchange and the Company (but no later than fifty two (52) days following Your date of termination), and compliance with, a valid and binding separation and release agreement (the "<u>Separation</u> <u>& Release A</u>g<u>reement</u>") in the form attached hereto as Exhibit B. You hereby acknowledge and agree that, other than the severance payments and benefits described in this Agreement, upon the effective date of the termination of Your employment, You shall not be entitled to any other severance payments or benefits of any kind under any Risk Exchange or Company benefit plan, severance policy generally available to its or their employees or otherwise and all of Your other rights to compensation shall end as of such date, except as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Section 280G</u>. Notwithstanding anything to the contrary in this Agreement, in the event that Section 280G of the Code applies to You, You expressly agree that if the payments and benefits provided for in this Agreement or any other payments and benefits which You have the right to receive from the Risk Exchange, the Company and their affiliates (collectively, the "<u>Payments</u>"), would constitute a "parachute payment" (as defined in Section 280G(b)(2) of the Code), then the Payments shall be either

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(i) reduced (but not below zero) so that the present value of the Payments will be one dollar ($1.00) less than three times Your "base amount" (as defined in Section 280G(b)(3) of the Code) and so that no portion of the Payments received by You shall be subject to the excise tax imposed by Section 4999 of the Code or (ii) paid in full, whichever produces the better net after-tax result to You. The reduction of Payments, if any, shall be made by reducing first any Payments that are exempt from Section 409A and then reducing any Payments subject to Section 409A in the reverse order in which such Payments would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time). The determination as to whether any such reduction in the Payments is necessary shall be made by the Compensation Committee or its designee in good faith, which determination will be conclusive and binding upon You and the Company for all purposes. In making such determination, the Compensation Committee or its designee shall engage the services of nationally recognized accounting or legal advisors, and may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code (including but not limited to Sections 280G and 4999). If a reduced Payment is made or provided and, through error or otherwise, that Payment, when aggregated with other payments and benefits from the Risk Exchange or the Company (or its affiliates) used in determining if a "parachute payment" exists, exceeds one dollar ($1.00) less than three times Your base amount, then You shall repay such excess to the Risk Exchange or the Company, as applicable, within 30 days of the Company's notice to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Withholdin</u>g. All payments made pursuant to this Agreement will be subject to applicable withholdings, including such federal, state, and local income and payroll taxes as the Risk Exchange and the Company determine in good faith are required to be withheld pursuant to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Cause</u>" means (i) the indictment or conviction of, or plea of "guilty" or "no contest" to, a felony or a crime involving moral turpitude (excluding a traffic violation not involving any period of incarceration) or the commission of any other act or omission involving dishonesty or fraud by You or at Your direction with respect to, and materially and adversely affecting the business affairs of, the Risk Exchange, the Company or any of their subsidiaries, (ii) conduct bringing the Risk Exchange, the Company or any of their subsidiaries into substantial public disgrace or disrepute that causes substantial injury to the business, reputation and/or operations of the Risk Exchange, the Company or such subsidiaries, (iii) substantial and repeated failure or refusal to perform duties of the office held by You as reasonably directed by the Risk Exchange or the Company (other than any such failure resulting from Your incapacity due to death, disability, injury or illness), and such failure is not cured in all material respects within thirty (30) days after You receive written notice thereof from the Risk Exchange or the Company that specifically identifies the manner in which it believes You have not substantially performed Your duties, (iv) gross negligence or willful misconduct with respect to the Risk Exchange, the Company or any of its subsidiaries that causes substantial injury to the business, reputation and/or operations of the Risk Exchange, the Company or such subsidiaries, or (v) any material breach of (A) any material written policy of the Risk Exchange, the Company or its subsidiaries which is applicable to You and provided to You, (B) this Agreement or (C) the Restrictive Covenant Agreement (defined below), and such material breach is not cured in all material respects within thirty (30) days after You receive written notice thereof from the Risk Exchange or the Company that specifically identifies the manner in which it believes You have committed such breach. For purposes of this provision, (i) no act or failure to act on Your part shall be considered "willful" unless it is done, or omitted to be done, by You in bad faith or without reasonable belief that Your action or omission was in the best interests of the Risk Exchange or the Company, and (ii) a mere failure to achieve a financial outcome or target shall not, by itself, constitute Cause. Any act or failure to act based

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upon authority given pursuant to a resolution duly adopted by the Risk Exchange or the Board, or based upon advice of counsel for the Risk Exchange or the Company, shall be conclusively presumed to be done, or omitted to be done, by You in good faith and in the best interests of the Risk Exchange or the Company, as applicable. If, within thirty (30) days subsequent to Your termination for any reason, it is discovered upon reasonable inquiry that Your employment could have been terminated for Cause, as determined by the Risk Exchange or the Board, in its good faith, Your employment will be deemed to have been terminated for Cause for all purposes under this Agreement, You will be required to disgorge to the Risk Exchange and the Company all amounts received by You pursuant to this Agreement on account of such termination that would not have been payable to You had such termination been by the Risk Exchange or the Company for Cause, and the Risk Exchange and the Company will be released from any further obligation to provide any You with any separation payments or benefits of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Chan</u>g<u>e in Contro</u>l" of the Company shall be deemed to have occurred under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Change in Ownership of the Company</u>. After the date of execution of this Agreement, a change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group ("<u>Person</u>"), (A) acquires ownership of the shares of the Company that, together with the shares held by such Person, constitutes more than fifty percent (50%) of the total voting power of the shares of the Company (an "<u>Acquisition</u>"), or (B) ceases to own shares of the Company that, together with the shares held by such Person, constitute more than fifty percent (50%) of the total voting power of the shares of the Company; provided, however, that for purposes of this subsection, the acquisition of additional shares by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the shares of the Company will not be considered an Acquisition; provided, further, that any change in the ownership of the shares of the Company as a result of a private financing of the Company that is approved by the Board also will not be considered an Acquisition. Further, if the shareholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company's voting shares immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the shares of the Company or of the ultimate parent entity of the Company, such event shall not be considered an Acquisition under this Section 8(b)(1). For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations, investment funds or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Change in Effective Control of the Company</u>. If the Company has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be a director who has been endorsed by a majority of the members of the Board. For purposes of this Section 8(b)(2), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered an Acquisition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Change in Ownership of a Substantial Portion of the Company's Assets</u>. A change in the ownership of a substantial portion of the Company's assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (b)(3), the following will not constitute a change in the ownership of a substantial portion of the Company's assets: (A) a transfer to an entity that is controlled by the Company's shareholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company's shares, an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding shares of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (b)(3). For purposes of this Section 8(b)(3), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets;

provided, that with respect to any nonqualified deferred compensation that becomes payable on account of the Change in Control, the transaction or event described in clause (1), (2) or (3) also constitutes a "change in control event," as defined in Treasury Regulation §1.409A-3(i)(5) if required in order for the payment not to violate Section 409A of the Code.

For purposes of this Section 8(b), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of shares, or similar business transaction with the Company.

Further and for the avoidance of doubt, the following transactions will not constitute an Acquisition: (i) a transaction if its sole purpose is to change the jurisdiction of the Company's incorporation; (ii) a transaction if its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction; or (iii) any disposition of securities in the Company by Accelerant Holdings LP or any affiliates thereof or affiliated funds pursuant to an IPO or any secondary offering of the Company's equity.

In addition, a "Person," as used in this Section 8(b), shall not include (w) the Company or any of its affiliates; (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries; (y) an underwriter temporarily holding securities pursuant to an offering of such securities; or (z) a corporation and/or a company owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Good Reason</u>" shall exist if (i) the Risk Exchange or the Company, without Your prior written consent (a) materially reduces Your title, authority, duties, or responsibilities from those applicable to You as of the Effective Date (including, following a Change in Control, any failure of the parent corporation of any controlled group of corporations that includes the Company, if the Company is not such parent corporation, to offer You a position with such parent corporation or a subsidiary thereof involving the same or substantially equivalent title, authority, duties and responsibilities as Your then-current position with the Risk Exchange or the Company, as applicable), (b) requires that You relocate Your principal place of employment to a location that is not Your home office in Puerto Rico, (c) materially

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breaches this Agreement or any other material written agreement between You and the Company, the Risk Exchange or their affiliates or (d) materially reduces Your Base Compensation or target annual cash bonus, with materiality deemed to be a more than 5% change (excluding, prior to a Change in Control only, any reduction effected as part of an across-the-board reduction in base salaries and target annual bonuses of all Risk Exchange and Company executive officers so long as the percentage reduction in Your Base Compensation and target annual cash bonus is not greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in other executive officer's reduction in salary and target annual cash bonus and, in the event such reduction is later mitigated for other executive officers, Your Base Compensation and target annual cash bonus is then increased by the same percentage applicable to other executive officers); (ii) You provide written notice to the Risk Exchange or the Company, as applicable, of such action within ninety (90) days of date on which You become aware of the occurrence thereof and provide the Risk Exchange or the Company, as applicable, with thirty (30) days to remedy such action from the notice date (the "<u>Cure Period</u>"); (iii) the Risk Exchange or the Company, as applicable, fails to remedy in all respects such action within the Cure Period; and (iv) You elect to resign within thirty (30) days of the expiration of the Cure Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Section</u> <u>409A</u>" means Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Entire A</u>g<u>reement</u>. This Agreement, the Restrictive Covenant Agreement and any equity compensation agreement granting equity compensation to You prior to or following the Effective Date constitute the entire agreement between the Parties concerning the subject matter of this Agreement and supersedes any prior communications, agreements or understandings, whether oral or written, between You and the Company (including, without limitation, the Prior Agreement) relating to the subject matter of this Agreement. Other than the terms of this Agreement, no other representation, promise or agreement has been made with You to cause You to sign this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Restrictive Covenant A</u>g<u>reement</u>. By execution of this Agreement, the Parties acknowledge the validity and effectiveness of the Restrictive Covenant Agreement entered into by You with the Company (the "<u>Restrictive Covenant Agreement</u>"). Notwithstanding anything in this Agreement or any other agreement to the contrary, You understand that nothing contained in this Agreement or any other agreement limits Your ability to report possible violations of law or regulation to or file a charge or complaint with the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state, local or Puerto Rico governmental agency or commission or regulatory authority (collectively, "<u>Government Agencies</u>"). You further understand that neither this Agreement nor any other Agreement limits Your ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Risk Exchange or the Company. Furthermore (i) You shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (x) in confidence to a federal, state, local government or Puerto Rico official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal, and (ii) if You file a lawsuit for retaliation by the Risk Exchange or the Company for reporting a suspected violation of law, You may disclose a trade secret to Your attorney and use the trade secret information in the court proceeding, if You file any document containing the trade secret under seal and do not disclose the trade secret except pursuant to court order.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governin</u>g <u>Law, Jurisdiction and Venue</u>. The laws of the State of Delaware will govern this Agreement. If Delaware's conflict of law rules would apply another state's or territory's laws, the Parties agree that Delaware law will still govern. You agree that any claim arising out of or relating to this Agreement will be brought exclusively in a state or federal court of competent jurisdiction in Delaware. You consent to the personal jurisdiction of the state and/or federal courts located in Delaware. You waive (i) any objection to jurisdiction or venue, or (ii) any defense claiming lack of jurisdiction or improper venue, in any action brought in such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Waiver</u>. The Risk Exchange's or the Company's failure to enforce any provision of this Agreement will not act as a waiver of that or any other provision. The Risk Exchange's or the Company's waiver of any breach of this Agreement will not act as a waiver of any other breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. The provisions of this Agreement are severable. If any provision is determined to be invalid, illegal, or unenforceable, in whole or in part, the remaining provisions and any partially enforceable provisions will remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Amendments</u>. This Agreement may not be amended or modified except in writing signed by the Risk Exchange, the Company and You.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement will be assignable to, and will inure to the benefit of, the Risk Exchange's and the Company's respective successors and assigns, including, without limitation, successors through merger, name change, consolidation, or sale of a majority of the Risk Exchange's or the Company's shares or assets, as applicable, and will be binding upon You and Your heirs and assigns. You may not assign, delegate or otherwise transfer any of Your rights, interests or obligations in this Agreement without the prior written approval of the Risk Exchange and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Survival</u>. Sections 4, 5, and 7 through 23, and such other provisions hereof as may so indicate shall survive and continue in full force and effect in accordance with their respective terms, notwithstanding any termination of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Notices</u>. Any notice provided for in this Agreement must be in writing and will be deemed validly given (i) on the date it is actually delivered by personal delivery of such notice, (ii) one (1) business day after its deposit in the custody of Federal Express or other reputable courier service regularly providing evidence of delivery (with next business day delivery charges paid by the Party sending the notice), (iii) three (3) business days after its deposit in the custody of the U.S. mail, certified or registered postage prepaid, return receipt requested, or (iv) one (1) business day after transmission by facsimile or a PDF or similar attachment to an email, provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (i), (ii) or (iii) above. Any such notice to a Party shall be addressed at the address set forth below (subject to the right of a Party to designate a different address for itself by notice similarly given):

If to the Company:

Accelerant Holdings

c/o Accelerant Re (Cayman) Ltd.

Unit 106, Windward 3, Regatta Office Park,

West Bay Road, Grand Cayman

Attention: Chair of the Compensation Committee

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If to the Risk Exchange:

Accelerant Risk Exchange LLC

1413 Ponce De Leon, Suite 401

PMB 0109

San Juan, PR 00907

Attention: Board of Managers

If to You:

At the most recent address on file with the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Indemnification</u>. While serving as an executive officer of the Risk Exchange and the Company, each of the Risk Exchange and the Company agrees that it shall indemnify You and provide You with Directors & Officers liability insurance coverage to the same extent that it indemnifies and/or provides such insurance coverage to Board members and other most senior executive officers of the Risk Exchange and/or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>No Conflict</u>. You represent and warrant that You are not bound by any employment contract, restrictive covenant, or other restriction preventing You from carrying out Your responsibilities for the Risk Exchange or the Company, or which is in any way inconsistent with the terms of this Agreement. You further represent and warrant that You shall not disclose to the Risk Exchange or the Company or induce the Risk Exchange or the Company to use any confidential or proprietary information or material belonging to any previous employer or others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Clawbacks</u>. The payments to You pursuant to this Agreement are subject to forfeiture or recovery by the Risk Exchange and the Company, as applicable, or other action pursuant to any clawback or recoupment policy which the Risk Exchange or the Company, as applicable, may adopt from time to time, including without limitation any such policy or provision that the Risk Exchange or the Company has included in any of its existing compensation programs or plans or that it is required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Company Policies</u>. You shall be subject to additional Risk Exchange and Company policies as they may exist from time-to-time, including policies regarding trading of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Section 409A</u>. The Parties intend that this Agreement and the payments made hereunder will be exempt from, or if not so exempt, comply with, the requirements of Section 409A in the event that Section 409A applies to You, and shall be interpreted and construed consistently with such intent. Without limiting the foregoing, the separation payments and benefits to You pursuant to Section 4(d) and Section 4(e) this Agreement are intended to be exempt from Section 409A to the maximum extent possible, as short-term deferrals pursuant to Treasury Regulation §1.409A-1(b)(4) or payments made pursuant to a separation pay plan pursuant to Treasury Regulation §1.409A-1(b)(9). Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate and distinct payment for purposes of Section 409A. To the extent any amounts under this Agreement are payable by reference to Your "termination of employment," such term and similar terms shall be deemed to refer to Your "separation from service," within the meaning of Section 409A (after giving effect to the presumptions contained therein) with respect to any payments that are subject to Section 409A. Notwithstanding any other provision in this Agreement, to the extent any payments made or contemplated hereunder constitute nonqualified deferred compensation within the meaning of Section 409A, then (i) each such payment which is conditioned upon Your execution of a release and which is to be paid or provided during a designated period that begins in one taxable year

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and ends in a second taxable year, shall be paid or provided in the later of the two taxable years and (ii) if You are a specified employee (within the meaning of Section 409A) as of the date of Your separation from service, each such payment that is payable upon Your separation from service and would have been paid prior to the six-month anniversary of Your separation from service, shall be delayed until the earlier to occur of (A) the first day of the seventh month following Your separation from service or (B) the date of Your death. You hereby agree to be bound by the Risk Exchange's and the Company's determination of its "specified employees" (as such term is defined in Section 409A) provided such determination is in accordance with any of the methods permitted under the regulations issued under Section 409A. Any reimbursement payable to You pursuant to this Agreement shall be conditioned on the submission by You of all expense reports reasonably required by the Risk Exchange or the Company, as applicable, under any applicable expense reimbursement policy, and shall be paid to You within 30 days following receipt of such expense reports, but in no event later than the last day of the calendar year following the calendar year in which You incurred the reimbursable expense. Any amount of expenses eligible for reimbursement, or in-kind benefit provided, during a calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefit to be provided, during any other calendar year. The right to any reimbursement or in-kind benefit pursuant to this Agreement shall not be subject to liquidation or exchange for any other benefit. To the extent that any amount payable hereunder is deemed to be a substitute for a payment provided under another agreement with You, then the amount payable hereunder shall be paid at the same time and in the same form as such substituted payment to the extent required to comply with Section 409A. In the event the terms of this Agreement would subject You to taxes or penalties under Section 409A ("<u>409A Penalties</u>"), the Risk Exchange, the Company and You shall cooperate diligently to amend the terms of the Agreement to avoid such 409A Penalties, to the extent possible and in a manner that maximizes the original intent of the Parties.

*[Signature Pages Follow]* 

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

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| | |
|:---|:---|
| Accelerant Holdings | Accelerant Holdings |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| Accelerant Risk Exchange LLC | Accelerant Risk Exchange LLC |
| By: |  |
|  | Name: |
|  | Title: |

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  <br> Jeffrey Lee Radke

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EXHIBIT A

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EXHIBIT B

FORM OF SEPARATION AND RELEASE AGREEMENT

## Exhibit 10.6

**Exhibit 10.6** 

**ACCELERANT SHARE INCENTIVE PLAN** 

**(As Amended and Restated on <u> </u>, 2025)** 

**I. INTRODUCTION** 

**1.1 Purposes**. The purposes of the Accelerant Share Incentive Plan (this "<u>Plan</u>") are (i) to align the interests of the Company's shareholders and the recipients of awards under this Plan by increasing the proprietary interest of such recipients in the Company's growth and success, (ii) to advance the interests of the Company by attracting and retaining Non-Employee Directors, officers, other employees, consultants, independent contractors and agents and (iii) to motivate such persons to act in the long-term best interests of the Company and its shareholders.

**1.2 Certain Definitions.**

**"<u>Agreement</u>"** shall mean the written or electronic agreement evidencing an award hereunder between the Company and the recipient of such award.

**"<u>Board</u>"** shall mean the Board of Directors of the Company.

**"<u>Change in Control</u>"** shall have the meaning set forth in <u>Section</u> <u>5.8(b)</u>.

**"<u>Code</u>"** shall mean the Internal Revenue Code of 1986, as amended.

**"<u>Committee</u>"** shall mean the Compensation Committee of the Board, or a subcommittee thereof, or such other committee designated by the Board, in each case, consisting of two or more members of the Board, each of whom is intended to be (i) a "Non-Employee Director" within the meaning of Rule 16b-3 under the Exchange Act and (ii) "independent" within the meaning of the rules of the New York Stock Exchange or, if Common Shares are not listed on the New York Stock Exchange, within the meaning of the rules of the principal stock exchange on which the Common Shares are then traded.

**"<u>Common Shares</u>"** shall mean the Common Shares, par value US$0.0001 per share, of the Company, and all rights appurtenant thereto.

**"<u>Company</u>"** shall mean Accelerant Holdings, an exempted company incorporated with limited liability under the laws of the Cayman Islands, or any successor thereto.

**"<u>Data</u>"** shall have the meaning set forth in <u>Section</u> <u>5.15</u>.

**"<u>Exchange Act</u>"** shall mean the Securities Exchange Act of 1934, as amended.

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**"<u>Fair Market Value</u>"** shall mean the closing transaction price of a Common Share as reported on the New York Stock Exchange on the date as of which such value is being determined or, if the Common Shares are not listed on the New York Stock Exchange, the closing transaction price of a Common Share on the principal national stock exchange on which the Common Shares are traded on the date as of which such value is being determined or, if there shall be no reported transactions for such date, on the next preceding date for which transactions were reported; <u>provided</u>, <u>however</u>, that if the Common Shares are not listed on a national stock exchange or if Fair Market Value for any date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate and in compliance with Section 409A of the Code; <u>provided</u>, <u>further</u>, in the case of grants made in connection with the Initial Public Offering, Fair Market Value shall mean a price per share that is no less than the price per share at which Common Shares are initially offered for sale to the public by the Company's underwriters in the Initial Public Offering.

**"<u>Free-Standing SAR</u>"** shall mean an SAR which is not granted in tandem with, or by reference to, an option, which entitles the holder thereof to receive, upon exercise, Common Shares (which may be Restricted Shares) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one (1) Share on the date of exercise over the base price of such SAR, multiplied by the number of such SARs which are exercised.

**"<u>Incentive Share Option</u>"** shall mean an option to purchase Common Shares that meets the requirements of Section 422 of the Code, or any successor provision, which is intended by the Committee to constitute an Incentive Share Option.

**"<u>Initial Public Offering</u>"** shall mean the initial public offering of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933, as amended).

**"<u>Non-Employee Director</u>"** shall mean any director of the Company who is not an officer or employee of the Company or any Subsidiary.

**"<u>Nonqualified Share Option</u>"** shall mean an option to purchase Common Shares which is not an Incentive Share Option.

**"<u>Other Share Award</u>"** shall mean an award granted pursuant to <u>Section</u> <u>3.4</u> of the Plan.

**"<u>Performance Award</u>"** shall mean a right to receive an amount of cash, Common Shares, or a combination of both, contingent upon the attainment of specified Performance Measures within a specified Performance Period.

**"<u>Performance Measures</u>"** shall mean the criteria and objectives, established by the Committee, which shall be satisfied or met (i) as a condition to the grant or exercisability of all or a portion of an option or SAR or (ii) during the applicable Restriction Period or Performance Period as a condition to the vesting of the holder's interest, in the case of a Restricted Shares Award, of the Common Shares subject to such award, or, in the case of a Restricted Share Unit Award, Other Share Award or Performance Award, to the holder's receipt of the Common Shares

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subject to such award or of payment with respect to such award. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified Subsidiaries, business or geographical units or operating areas of the Company (except with respect to the total shareholder return and earnings per share criteria) or individual basis, may be used by the Committee in establishing Performance Measures under this Plan: the attainment by a Common Share of a specified Fair Market Value for a specified period of time; increase in shareholder value; earnings per share; return on or net assets; return on equity; return on investments; return on capital or invested capital; total shareholder return; earnings or income of the Company before or after taxes and/or interest; earnings before interest, taxes, depreciation and amortization ("<u>EBITDA</u>"); EBITDA margin; operating income; revenues; operating expenses, attainment of expense levels or cost reduction goals; market share; cash flow, cash flow per share, cash flow margin or free cash flow; interest expense; economic value created; gross profit or margin; operating profit or margin; net cash provided by operations; price-to-earnings growth; and strategic business criteria, consisting of one or more objectives based on meeting specified goals relating to market penetration, customer acquisition, business expansion, cost targets, customer satisfaction, reductions in errors and omissions, reductions in lost business, management of employment practices and employee benefits, supervision of litigation, supervision of information technology, quality and quality audit scores, efficiency, commercial launch of new products, completion of projects, and closing of acquisitions, divestitures, financings or other transactions, or such other goals as the Committee may determine whether or not listed herein. Each such goal may be determined on a pre-tax or post-tax basis or on an absolute or relative basis, and may include comparisons based on current internal targets, the past performance of the Company (including the performance of one or more Subsidiaries, divisions, or operating units) or the past or current performance of other companies or market indices (or a combination of such past and current performance). In addition to the ratios specifically enumerated above, performance goals may include comparisons relating to capital (including, but not limited to, the cost of capital), shareholders' equity, shares outstanding, assets or net assets, sales, or any combination thereof. In establishing a Performance Measure or determining the achievement of a Performance Measure, the Committee may provide that achievement of the applicable Performance Measures may be amended or adjusted to include or exclude components of any Performance Measure, including, without limitation, foreign exchange gains and losses, asset write-downs, acquisitions and divestitures, change in fiscal year, unbudgeted capital expenditures, special charges such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, infrequently occurring, nonrecurring or one-time events affecting the Company or its financial statements or changes in law or accounting principles. Performance Measures shall be subject to such other special rules and conditions as the Committee may establish at any time.

**"<u>Performance Period</u>"** shall mean any period designated by the Committee during which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Performance Measures applicable to an award shall be measured and (ii) the conditions to vesting applicable to an award shall remain in effect.

**"<u>Person</u>"** shall have the meaning set forth in <u>Section</u> <u>5.8</u>.

**"<u>Restricted Shares</u>"** shall mean Common Shares which are subject to a Restriction Period and which may, in addition thereto, be subject to the attainment of specified Performance Measures within a specified Performance Period.

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**"<u>Restricted Shares Award</u>"** shall mean an award of Restricted Shares under this Plan.

**"<u>Restricted Share Unit</u>"** shall mean a right to receive one (1) Common Share or, in lieu thereof and to the extent set forth in the applicable Agreement, the Fair Market Value of such Common Share in cash, which shall be contingent upon the expiration of a specified Restriction Period and which may, in addition thereto, be contingent upon the attainment of specified Performance Measures within a specified Performance Period.

**"<u>Restricted Share Unit Award</u>"** shall mean an award of Restricted Share Units under this Plan.

**"<u>Restriction Period</u>"** shall mean any period designated by the Committee during which (i) the Common Shares subject to a Restricted Shares Award may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award, or (ii) the conditions to vesting applicable to a Restricted Share Unit Award or Other Share Award shall remain in effect.

**"<u>SAR</u>"** shall mean a Share appreciation right which may be a Free-Standing SAR or a Tandem SAR.

**"<u>Share Award</u>"** shall mean a Restricted Shares Award, Restricted Share Unit Award or Other Share Award.

**"<u>Subsidiary</u>"** shall mean any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns, directly or indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests of such entity.

**"<u>Substitute Award</u>"** shall mean an award granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition of property or stock, or upon the substitution of Restricted Shares Awards for outstanding profits interests and similar awards with respect to Accelerant Holdings LP in connection with the Initial Public Offering; <u>provided</u>, <u>however</u>, that in no event shall the term "Substitute Award" be construed to refer to an award made in connection with the cancellation and repricing of an option or SAR.

**"<u>Tandem SAR</u>"** shall mean an SAR which is granted in tandem with, or by reference to, an option (including a Nonqualified Share Option granted prior to the date of grant of the SAR), which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation of all or a portion of such option, Common Shares (which may be Restricted Shares) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one (1) Common Share on the date of exercise over the base price of such SAR, multiplied by the number of Common Shares subject to such option, or portion thereof, which is surrendered.

**"<u>Tax Date</u>"** shall have the meaning set forth in <u>Section</u> <u>5.5</u>.

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**"<u>Ten Percent Holder</u>"** shall have the meaning set forth in <u>Section</u> <u>2.1(a)</u>.

**1.3 Administration**. This Plan shall be administered by the Committee. Any one or a combination of the following awards may be made under this Plan to eligible persons: (i) options to purchase Common Shares in the form of Incentive Share Options or Nonqualified Share Options; (ii) SARs in the form of Tandem SARs or Free-Standing SARs; (iii) Share Awards in the form of Restricted Shares, Restricted Share Units or Other Share Awards; and (iv) Performance Awards. The Committee shall, subject to the terms of this Plan, select eligible persons for participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the number of Common Shares subject to an award, the number of SARs, the number of Restricted Share Units, the dollar value subject to a Performance Award, the purchase price or base price associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award. The Committee may, in its sole discretion and for any reason at any time, take action such that (i) any or all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to any outstanding awards shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding awards shall lapse and (iv) the Performance Measures (if any) applicable to any outstanding awards shall be deemed to be satisfied at the target, maximum or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof, establish rules and regulations it deems necessary or desirable for the administration of this Plan and may impose, incidental to the grant of an award, conditions with respect to the award, such as limiting competitive employment or other activities. All such interpretations, rules, regulations and conditions shall be conclusive and binding on all parties.

The Committee may delegate some or all of its power and authority hereunder to the Board (or any members thereof) or, subject to applicable law, to a subcommittee of the Board, a member of the Board, the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; <u>provided</u>, <u>however</u>, that the Committee may not delegate its power and authority to a member of the Board, the Chief Executive Officer or other executive officer of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer, director or other person.

No member of the Board or Committee, and neither the Chief Executive Officer nor any other executive officer to whom the Committee delegates any of its power and authority hereunder, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good faith, and the members of the Board and the Committee and the Chief Executive Officer or other executive officer shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys' fees) arising therefrom to the full extent permitted by law (except as otherwise may be provided in the Company's Certificate of Incorporation and/or By-laws) and under any directors' and officers' liability insurance that may be in effect from time to time.

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**1.4 Eligibility**. Participants in this Plan shall consist of such officers, other employees, Non- Employee Directors, consultants, independent contractors, agents, and persons expected to become officers, other employees, Non-Employee Directors, consultants, independent contractors and agents of the Company and its Subsidiaries as the Committee in its sole discretion may select from time to time, provided such persons are eligible to receive awards of Common Shares that are registered on a Form S-8 registration statement. Participants shall also consist of persons to whom Restricted Shares Awards are granted in substitution for unvested profits interests and similar awards with respect to Accelerant Holdings LP in connection with the transactions relating to the Initial Public Offering. The Committee's selection of a person to participate in this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time. Except as otherwise provided for in an Agreement, for purposes of this Plan, references to employment by the Company shall also mean employment by a Subsidiary, and references to employment shall include service as a Non-Employee Director, consultant, independent contractor or agent. The Committee shall determine, in its sole discretion, the extent to which a participant shall be considered employed during an approved leave of absence. The aggregate value of cash compensation and the grant date fair value of Shares that may be awarded or granted during any fiscal year of the Company to any Non-Employee Director, for his or her services as a Non-Employee Director, shall not exceed $[ ]; provided, however, that this limit shall not apply to distributions of previously deferred compensation under a deferred compensation plan maintained by the Company or compensation received by the director in his or her capacity as an executive officer or employee of the Company.

**1.5 Shares Available**. Subject to adjustment as provided in <u>Section</u> <u>5.7</u> and to all other limits set forth in this Plan, [ ] Shares shall initially be available for all awards under this Plan (including, without limitation, Incentive Share Options but excluding Substitute Awards). The number of Shares in the aggregate which may be issued under the Plan in connection with Incentive Share Options shall be subject to adjustment as provided in <u>Section</u> <u>5.7</u>. The number of Shares available under the Plan shall increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) [ ]% of the number of Shares issued on December 31 of the immediately preceding fiscal year and (ii) an amount determined by the Board. The number of Shares that remain available for future grants under the Plan shall be reduced by the sum of the aggregate number of Shares that become subject to outstanding options, outstanding Free-Standing SARs, outstanding Share Awards and outstanding Performance Awards denominated in Common Shares, other than Substitute Awards.

To the extent that Common Shares subject to an outstanding option, SAR, Share Award or Performance Award granted under the Plan, other than Substitute Awards, are not issued or delivered by reason of (i) the expiration, termination, cancellation or forfeiture of such award (excluding Common Shares subject to an option cancelled upon settlement in Common Shares of a related Tandem SAR or Common Shares subject to a Tandem SAR cancelled upon exercise of a related option) or (ii) the settlement of such award in cash, then such Common Shares shall again be available under this Plan. In addition, Common Shares subject to an award under this Plan shall again be available for issuance under this Plan if such Common Shares are (x) Common Shares that were subject to an option or stock-settled SAR and were not issued or delivered upon the net settlement or net exercise of such option or SAR or (y) Common Shares

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delivered to or withheld by the Company to pay the purchase price or the withholding taxes related to an outstanding award. Notwithstanding the foregoing, Common Shares repurchased by the Company on the open market with the proceeds of an option exercise shall not again be available for issuance under this Plan.

The number of Common Shares available for awards under this Plan shall not be reduced by (i) the number of Common Shares subject to Substitute Awards or (ii) available shares under a shareholder approved plan of a company or other entity which was a party to a corporate transaction with the Company (as appropriately adjusted to reflect such corporate transaction) which become subject to awards granted under this Plan (subject to applicable stock exchange requirements).

Common Shares to be delivered under this Plan shall be made available from authorized and unissued Common Shares, or authorized and issued Common Shares reacquired and held as treasury shares or otherwise or a combination thereof.

**II. SHARE OPTIONS AND SHARE APPRECIATION RIGHTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Share Options**. The Committee may, in its discretion, grant options to purchase Common Shares to such eligible persons as may be selected by the Committee. Each option, or portion thereof, that is not an Incentive Share Option, shall be a Nonqualified Share Option. To the extent that the aggregate Fair Market Value (determined as of the date of grant) of Common Shares with respect to which options designated as Incentive Share Options are exercisable for the first time by a participant during any calendar year (under this Plan or any other plan of the Company, or any parent or Subsidiary) exceeds the amount (currently $100,000) established by the Code, such options shall constitute Nonqualified Share Options. Options shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Common Shares and Purchase Price</u>. The number of Common Shares subject to an option and the purchase price per Common Share purchasable upon exercise of the option shall be determined by the Committee; <u>provided</u>, <u>however</u>, that the purchase price per Common Share purchasable upon exercise of an option shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant of such option; <u>provided</u> <u>further</u>, that if an Incentive Share Option shall be granted to any person who, at the time such option is granted, owns capital stock possessing more than 10 percent of the total combined voting power of all classes of capital stock of the Company (or of any parent or Subsidiary) (a "<u>Ten Percent Holder</u>"), the purchase price per Common Share shall not be less than the price (currently 110% of Fair Market Value) required by the Code in order to constitute an Incentive Share Option.

Notwithstanding the foregoing, in the case of an option that is a Substitute Award, the purchase price per share of the Common Shares subject to such option may be less than 100% of the Fair Market Value per Common Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the Shares subject to the Substitute Award, over (b) the aggregate purchase price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the

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transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate purchase price of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Period and Exercisability</u>. The period during which an option may be exercised shall be determined by the Committee; <u>provided</u>, <u>however</u>, that no option shall be exercised later than 10 years after its date of grant; <u>provided</u> <u>further</u>, that if an Incentive Share Option shall be granted to a Ten Percent Holder, such option shall not be exercised later than five (5) years after its date of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an option or to the exercisability of all or a portion of an option. The Committee shall determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option, or portion thereof, may be exercised only with respect to whole Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Method of Exercise</u>. An option may be exercised (i) by giving written notice to the Company specifying the number of whole Common Shares to be purchased and accompanying such notice with payment therefor in full (or arrangement made for such payment to the Company's satisfaction) either (A) in cash or check, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of Common Shares having a Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) authorizing the Company to withhold whole Common Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (D) in cash by a broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of exercise, (E) such other methods permitted by applicable law, or (F) a combination of the foregoing, in each case, to the extent set forth in the Agreement relating to the option, (ii) if applicable, by surrendering to the Company any Tandem SARs which are cancelled by reason of the exercise of the option and (iii) by executing such documents as the Company may reasonably request. Any fraction of a Common Share which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by the participant. No Common Shares shall be issued and no certificate representing Common Shares shall be delivered until the full purchase price therefor and any withholding taxes thereon, as described in <u>Section</u> <u>5.5</u>, have been paid (or arrangement made for such payment to the Company's satisfaction).

**2.2 Share Appreciation Rights**. The Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee. The Agreement relating to an SAR shall specify whether the SAR is a Tandem SAR or a Free-Standing SAR.

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SARs shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of SARs and Base Price</u>. The number of SARs subject to an award shall be determined by the Committee. Any Tandem SAR related to an Incentive Share Option shall be granted at the same time that such Incentive Share Option is granted. The base price of a Tandem SAR shall be the purchase price per Common Share of the related option. The base price of a Free- Standing SAR shall be determined by the Committee; <u>provided</u>, <u>however</u>, that such base price shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant of such SAR (or, if earlier, the date of grant of the option for which the SAR is exchanged or substituted).

Notwithstanding the foregoing, in the case of an SAR that is a Substitute Award, the base price per share of the Common Shares subject to such SAR may be less than 100% of the Fair Market Value per Common Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the Common Shares subject to the Substitute Award, over (b) the aggregate base price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Period and Exercisability</u>. The period for the exercise of an SAR shall be determined by the Committee; <u>provided</u>, <u>however</u>, that (i) no Tandem SAR shall be exercised later than the expiration, cancellation, forfeiture or other termination of the related option and (ii) no Free-Standing SAR shall be exercised later than 10 years after its date of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in full at any time. An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with respect to whole Common Shares and, in the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an SAR is exercised for Restricted Shares, a certificate or certificates representing such Restricted Shares shall be issued in accordance with <u>Section</u> <u>3.2(c)</u>, or such Shares shall be transferred to the holder in book entry form with restrictions on the shares duly noted, and the holder of such Restricted Shares shall have such rights of a shareholder of the Company as determined pursuant to <u>Section</u> <u>3.2(d)</u>. Prior to the exercise of a share-settled SAR, the holder of such SAR shall have no rights as a shareholder of the Company with respect to the Common Shares subject to such SAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Method of Exercise</u>. A Tandem SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to the Company any options which are cancelled by reason of the exercise of the Tandem SAR and (iii) by executing such documents as the Company may reasonably request. A Free-Standing SAR may be exercised (A) by giving written notice to the Company specifying the whole number of SARs which are being exercised and (B) by executing such documents as the Company may reasonably request. No Common Shares shall be issued and no certificate representing Common Shares shall be delivered until any withholding taxes thereon, as described in <u>Section</u> <u>5.5</u>, have been paid (or arrangement made for such payment to the Company's satisfaction).

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**2.3 <u>Termination of Employment or Service</u>**. All of the terms relating to the exercise, cancellation or other disposition of an option or SAR (i) upon a termination of employment with or service to the Company of the holder of such option or SAR, as the case may be, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**2.4 <u>Repricing</u>**. The Committee shall have the discretion, without the approval of the shareholders of the Company, to (i) reduce the purchase price or base price of any previously granted option or SAR, (ii) cancel any previously granted option or SAR in exchange for another option or SAR with a lower purchase price or base price or (iii) cancel any previously granted option or SAR in exchange for cash or another award if the purchase price of such option or the base price of such SAR exceeds the Fair Market Value of a Common Share on the date of such cancellation.

**2.5 <u>No Dividend Equivalents</u>.** Notwithstanding anything in an Agreement to the contrary, the holder of an option or SAR shall not be entitled to receive dividend equivalents with respect to the number of Common Shares subject to such option or SAR.

**III. SHARE AWARDS** 

**3.1 Share Awards**. The Committee may, in its discretion, grant Share Awards to such eligible persons as may be selected by the Committee. The Agreement relating to a Share Award shall specify whether the Share Award is a Restricted Shares Award, a Restricted Share Unit Award or, in the case of an Other Share Award, the type of award being granted.

**3.2 Terms of Restricted Shares Awards**. Restricted Shares Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares and Other Terms</u>. The number of Common Shares subject to a Restricted Shares Award and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Shares Award shall be determined by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Restricted Shares Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of the Common Shares subject to such award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period or (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Common Shares subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Share Issuance</u>. During the Restriction Period, the Common Shares of Restricted Shares shall be held by a custodian in book entry form with restrictions on such Common Shares duly noted or, alternatively, a certificate or certificates representing a Restricted Shares Award shall be registered in the holder's name and may bear a legend, in addition to any legend which may be required pursuant to <u>Section</u> <u>5.6</u>, indicating that the ownership of the Common Shares represented by such certificate is subject to the restrictions, terms and conditions of this Plan and the Agreement relating to the Restricted Shares Award. All such certificates shall be deposited with the Company, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate, which would permit transfer to the Company of all or a portion of the Common Shares subject to the Restricted Shares Award in the event such award is forfeited in whole or in part. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of applicable Performance Measures), subject to the Company's right to require payment of any taxes in accordance with <u>Section</u> <u>5.5</u>, the restrictions shall be removed from the requisite number of any Common Shares that are held in book entry form, and all certificates evidencing ownership of the requisite number of Common Shares shall be delivered to the holder of such award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Rights with Respect to Restricted Shares Awards</u>. Unless otherwise set forth in the Agreement relating to a Restricted Shares Award, and subject to the terms and conditions of a Restricted Shares Award, the holder of such award shall have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Shares; <u>provided</u>, <u>however</u>, that a distribution or dividend with respect to Common Shares other than Common Shares subject to Substitute Awards, including a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the Common Shares with respect to which such distribution was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section 83(b) Election</u>. If a participant makes an election under Section 83(b) of the Code (or a comparable provision of the laws of another jurisdiction) to be taxed with respect to the Restricted Shares as of the date of transfer of the Restricted Shares rather than as of the date or dates upon which such participant would otherwise be taxable under Section 83(a) of the Code, such participant shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service along with proof of the timely filing thereof.

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**3.3 Terms of Restricted Share Unit Awards.** Restricted Share Unit Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares and Other Terms</u>. The number of Common Shares subject to a Restricted Share Unit Award, including the number of shares that are earned upon the attainment of any specified Performance Measures, and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Share Unit Award shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Restricted Share Unit Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Restricted Share Unit Award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period or (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Common Shares subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement of Vested Restricted Share Unit Awards</u>. The Agreement relating to a Restricted Share Unit Award shall specify (i) whether such award may be settled in Common Shares or cash or a combination thereof and (ii) whether the holder thereof shall be entitled to receive, on a current or deferred basis, dividend equivalents, and, if determined by the Committee, interest on, or the deemed reinvestment of, any deferred dividend equivalents, with respect to the number of Common Shares subject to such award. Any dividend equivalents with respect to Restricted Share Units shall be subject to the same vesting conditions as the underlying awards. Prior to the settlement of a Restricted Share Unit Award, the holder of such award shall have no rights as a shareholder of the Company with respect to the Common Shares subject to such award.

**3.4 Other Share Awards**. Subject to the limitations set forth in the Plan, the Committee is authorized to grant other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares, including without limitation Common Shares granted as a bonus and not subject to any vesting conditions, dividend equivalents, deferred share units, Common Share purchase rights and Common Shares issued in lieu of obligations of the Company to pay cash under any compensatory plan or arrangement, subject to such terms as shall be determined by the Committee. The Committee shall determine the terms and conditions of such awards, which may include the right to elective deferral thereof, subject to such terms and conditions as the Committee may specify in its discretion. Any distribution, dividend or dividend equivalents with respect to Other Share Awards shall be subject to the same vesting conditions as the underlying awards.

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**3.5 Termination of Employment or Service.** All of the terms relating to the satisfaction of Performance Measures and the termination of the Restriction Period or Performance Period relating to a Share Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**IV. PERFORMANCE AWARDS** 

**4.1 Performance Awards**. The Committee may, in its discretion, grant Performance Awards to such eligible persons as may be selected by the Committee.

**4.2 Terms of Performance Awards.** Performance Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Value of Performance Awards and Performance Measures</u>. The method of determining the value of the Performance Award and the Performance Measures and Performance Period applicable to a Performance Award shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Performance Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Performance Award if the specified Performance Measures are satisfied or met during the specified Performance Period and for the forfeiture of such award if the specified Performance Measures are not satisfied or met during the specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement of Vested Performance Awards</u>. The Agreement relating to a Performance Award shall specify whether such award may be settled in Common Shares (including Restricted Shares) or cash or a combination thereof. If a Performance Award is settled in Restricted Shares, such Restricted Shares shall be issued to the holder in book entry form or a certificate or certificates representing such Restricted Shares shall be issued in accordance with <u>Section</u> <u>3.2(c)</u> and the holder of such Restricted Shares shall have such rights as a shareholder of the Company as determined pursuant to <u>Section</u> <u>3.2(d)</u>. Any dividends or dividend equivalents with respect to a Performance Award shall be subject to the same vesting restrictions as such Performance Award. Prior to the settlement of a Performance Award in Common Shares, including Restricted Shares, the holder of such award shall have no rights as a shareholder of the Company.

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**4.3 Termination of Employment or Service**. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance Period relating to a Performance Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**V. GENERAL** 

**5.1 Effective Date and Term of Plan**. This Plan was originally adopted on May 29, 2023 and became effective as of such date. This Plan, as amended and restated, was submitted to shareholders of the Company for approval on ______ __, 2025 and became effective as of the date of such approval (the "Amended and Restated Effective Date"). This Plan shall terminate on the 10th anniversary of the Amended and Restated Effective Date, unless terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions of any award granted prior to termination.

Awards hereunder may be made at any time prior to the termination of this Plan, provided that no Incentive Share Option may be granted later than 10 years after the date on which the Plan, as amended and restated, was approved by the Board.

**5.2 Amendments**. The Board or, subject to applicable law, the Committee may amend, modify, or terminate this Plan or any Agreement as it shall deem advisable; <u>provided</u>, <u>however</u>, that no amendment to the Plan or any Agreement shall be effective without the approval of the Company's shareholders if (i) shareholder approval is required by applicable law, rule or regulation, including any rule of the New York Stock Exchange or any other stock exchange on which the Common Shares are then traded, or (ii) such amendment seeks to modify the Non-Employee Director compensation limit set forth in <u>Section</u> <u>1.3</u>; provided further, that no amendment may materially impair the rights of a holder of an outstanding award without the consent of such holder. Notwithstanding anything herein to the contrary, the Board may amend the Plan or any Agreement at any time without the consent of a holder of an outstanding award to company with applicable law, including Section 409A of the Code.

**5.3 Agreement**. Each award under this Plan shall be evidenced by an Agreement setting forth the terms and conditions applicable to such award. No award shall be valid until an Agreement is executed by the Company and, to the extent required by the Company, executed or electronically accepted by the recipient of such award. Upon such execution or acceptance and delivery of the Agreement to the Company within the time period specified by the Company, such award shall be effective as of the effective date set forth in the Agreement.

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**5.4 Non-Transferability.** No award shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or, to the extent expressly permitted in the Agreement relating to such award, to the holder's family members, a trust or entity established by the holder for estate planning purposes, a charitable organization designated by the holder or pursuant to a domestic relations order, in each case, without consideration. Except to the extent permitted by the foregoing sentence or the Agreement relating to an award, each award may be exercised or settled during the holder's lifetime only by the holder or the holder's legal representative or similar person. Except as permitted by the second preceding sentence, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award and all rights thereunder shall immediately become null and void.

**5.5 Tax Withholding**. The Company shall have the right to require, prior to the issuance or delivery of any Common Shares or the payment of any cash pursuant to an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required to be withheld or paid in connection with such award. An Agreement may provide that (i) the Company shall withhold whole Common Shares which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in connection with an award (the "<u>Tax Date</u>"), or withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (ii) the holder may satisfy any such obligation by any of the following means: (A) a cash or check payment to the Company; (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously owned whole Common Shares having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation; (C) authorizing the Company to withhold whole Common Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a holder, in either case equal to the amount necessary to satisfy any such obligation; (D) a cash payment by a broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of exercise or sale, (E) such other methods permitted by applicable law, or (F) a combination of the foregoing, in each case to the extent set forth in the Agreement relating to the award. Common Shares to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the Company, such other rate as will not cause adverse accounting consequences under the accounting rules then in effect, and is permitted under applicable Internal Revenue Service withholding rules). Any fraction of a Common Share which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder.

**5.6 Restrictions on Shares**. Each award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration or qualification of the Common Shares subject to such award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the delivery of shares thereunder, such shares

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shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company may require that certificates evidencing Common Shares delivered pursuant to any award made hereunder bear a legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.

**5.7 Adjustment**. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation — Stock Compensation or any successor or replacement accounting standard) that causes the per share value of Common Shares to change, such as a stock dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary cash dividend, the number and class of securities available under this Plan, the terms of each outstanding option and SAR (including the number and class of securities subject to each outstanding option or SAR and the purchase price or base price per share), the terms of each outstanding Share Award (including the number and class of securities subject thereto), and the terms of each outstanding Performance Award (including the number and class of securities subject thereto, if applicable), shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding options and SARs in accordance with Section 409A of the Code. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

**5.8 Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of the applicable Agreements, in the event of a "Change in Control," the Board, as constituted prior to the Change in Control, may, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) require that (i) some or all outstanding options and SARs shall become exercisable in full or in part,
either immediately or upon a subsequent termination of employment, (ii) the Restriction Period applicable to some or all outstanding Share Awards shall lapse in full or in part, either immediately or upon a subsequent termination of employment,
(iii) the Performance Period applicable to some or all outstanding awards shall lapse in full or in part, and (iv) the Performance Measures applicable to some or all outstanding awards shall be deemed to be satisfied at the target, maximum
or any other level;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) require that shares of capital stock of the corporation resulting from or succeeding to the business of the
Company pursuant to such Change in Control (or a parent corporation thereof) or other property be substituted for some or all of the Common Shares subject to an outstanding award, with an appropriate and equitable adjustment to such award as
determined by the Board in accordance with <u>Section</u> <u>5.7</u>; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) require outstanding awards, in whole or in part, to be surrendered to the Company by the holder, and to be
immediately cancelled by the Company, and to provide for the holder to receive (i) a cash payment in an amount equal to (A) in the case of an option or an SAR, the aggregate number of Common Shares then subject to the portion of such
option or SAR surrendered, whether or not vested or exercisable, multiplied by the excess, if any, of the Fair Market Value of a Common Share as of the date of the Change in Control, over the purchase price or base price per share of a Common Share
subject to such option or SAR; <u>provided</u>, <u>however</u>, that if the purchase price or base price per share of a Common Share subject to such option or SAR exceeds the Fair Market Value of a Common Share as of the date of the Change in
Control, such option or SAR may be cancelled for no consideration, (B) in the case of a Share Award or a Performance Award denominated in Common Shares, the number of Common Shares then subject to the portion of such award surrendered to the
extent the Performance Measures applicable to such award have been satisfied or are deemed satisfied pursuant to <u>Section</u> <u>5.8(a)(i)</u>, whether or not vested, multiplied by the Fair Market Value of a Common Share as of the date
of the Change in Control, and (C) in the case of a Performance Award denominated in cash, the value of the Performance Award then subject to the portion of such award surrendered to the extent the Performance Measures applicable to such award
have been satisfied or are deemed satisfied pursuant to <u>Section</u> <u>5.8(a)(i)</u>; (ii) shares of capital stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control (or a
parent corporation thereof) or other property, having a fair market value not less than the amount determined under clause (i) above; or (iii) a combination of the payment of cash pursuant to clause (i) above and the issuance of
shares or other property pursuant to clause (ii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Plan, a "<u>Change in Control</u>" shall be deemed to have occurred under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Change in Ownership of the Company</u>. A change in the ownership of the Company which occurs on the date
that any one person, or more than one person acting as a group (" <u>Person</u> "), acquires ownership of the shares of the Company that, together with the shares held by such Person, constitutes more than fifty percent (50%) of the total
voting power of the shares of the Company (an " <u>Acquisition</u> "); <u>provided</u>, <u>however</u>, that for purposes of this subsection, the acquisition of additional shares by any one Person, who is

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considered to own more than fifty percent (50%) of the total voting power of the shares of the Company will not be considered an Acquisition; <u>provided</u>, <u>further</u>, that any change in the ownership of the shares of the Company as a result of a private financing of the Company that is approved by the Board also will not be considered an Acquisition. Further, if the members of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company's voting shares immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the shares of the Company or of the ultimate parent entity of the Company, such event shall not be considered an Acquisition under this <u>Section</u> <u>5.8(b)(1)</u>. For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Change in Effective Control of the Company</u>. If the Company has a class of securities registered pursuant
to Section 12 of the Exchange Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be a director who has been endorsed by a majority of the
members of the Board. For purposes of this <u>Section</u> <u>5.8(b)(2)</u>, if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be
considered an Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Change in Ownership of a Substantial Portion of the Company's Assets</u>. A change in the ownership of
a substantial portion of the Company's assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from
the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; <u>provided</u>, <u>however</u>, that for purposes of this subsection (c), the following will not constitute a change in the ownership of a substantial portion of the Company's assets: (A) a transfer to an entity that is controlled by the Company's
members immediately after the transfer, or

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(B) a transfer of assets by the Company to: (1) a member of the Company (immediately before the asset transfer) in exchange for or with respect to the Company's shares, an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding shares of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (b)(3). For purposes of this <u>Section</u> <u>5.8(b)(3)</u>, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets;

<u>provided</u>, that with respect to any nonqualified deferred compensation that becomes payable on account of the Change in Control, the transaction or event described in clause (1), (2) or (3) also constitutes a "change in control event," as defined in Treasury Regulation §1.409A-3(i)(5) if required in order for the payment not to violate Section 409A of the Code.

For purposes of this <u>Section</u> <u>5.8</u>, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of shares, or similar business transaction with the Company.

Further and for the avoidance of doubt, the following transactions will not constitute an Acquisition: (i) a transaction if its sole purpose is to change the jurisdiction of the Company's incorporation; (ii) a transaction if its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction; or (iii) any disposition of securities in the Company by Accelerant Holdings LP or any affiliates thereof or affiliated funds pursuant to an Initial Public Offering or any secondary offering of the Company's equity.

In addition, a "Person," as used in this <u>Section</u> <u>5.8</u>, shall not include (w) the Company or any of its Affiliates; (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries; (y) an underwriter temporarily holding securities pursuant to an offering of such securities; or (z) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

**5.9 Deferrals.** The Committee may determine that the delivery of Common Shares or the payment of cash, or a combination thereof, upon the settlement of all or a portion of any award made hereunder shall be deferred, or the Committee may, in its sole discretion, approve deferral elections made by holders of awards. Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole discretion, subject to the requirements of Section 409A of the Code.

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**5.10 No Right of Participation, Employment or Service**. Unless otherwise set forth in an employment agreement, no person shall have any right to participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by or service with the Company, any Subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate the employment or service of any person at any time without liability hereunder.

**5.11 Rights as Shareholder**. No person shall have any right as a shareholder of the Company with respect to any Common Shares or other equity security of the Company which is subject to an award hereunder unless and until such person becomes a stockholder of record with respect to such Common Shares or equity security.

**5.12 Designation of Beneficiary**. To the extent permitted by the Company, a holder of an award may file with the Company a written designation of one or more persons as such holder's beneficiary or beneficiaries (both primary and contingent) in the event of the holder's death or incapacity. To the extent an outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such option or SAR pursuant to procedures prescribed by the Company. Each beneficiary designation shall become effective only when filed in writing with the Company during the holder's lifetime on a form prescribed by the Company. The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such spouse. The filing with the Company of a new beneficiary designation shall cancel all previously filed beneficiary designations. If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder, then each outstanding award held by such holder, to the extent vested or exercisable, shall be payable to or may be exercised by such holder's executor, administrator, legal representative or similar person.

**5.13 Awards Subject to Clawback.** The awards granted under this Plan and any cash payment or Common Shares delivered pursuant to such an award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company has adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

**5.14 Section 409A**. This Plan is intended to comply with the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent. To the extent that any award is subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto. Notwithstanding anything herein to the contrary, any provision in this Plan that is inconsistent with Section 409A of the Code shall be deemed to be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such provision shall be null and void. The Company shall have no liability to a participant, or any other party, if an award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action

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taken by the Committee or the Company and, in the event that any amount or benefit under this Plan becomes subject to penalties under Section 409A of the Code, responsibility for payment of such penalties shall rest solely with the affected participants and not with the Company. Notwithstanding any contrary provision in this Plan or an Agreement, any payment(s) of "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) that are otherwise required to be made under this Plan to a "specified employee" (as defined under Section 409A of the Code) as a result of such employee's separation from service (other than a payment that is not subject to Section 409A of the Code) shall be delayed for the first six (6) months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid (in a manner set forth in the Agreement) upon expiration of such delay period.

**5.15 Data Privacy.** As a condition for receiving any award under the Plan, each participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this <u>Section</u> <u>5.15</u> by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the participant's participation in the Plan. The Company and its Subsidiaries and affiliates may hold certain personal information about a participant, including the participant's name, address and telephone number; birthdate; social security, insurance or other identification number; salary; nationality; job title(s); any Common Shares held in the Company or its Subsidiaries and affiliates; and award details, to implement, manage and administer the Plan and awards (the "<u>Data</u>"). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a participant's participation in the Plan, and the Company and its Subsidiaries and affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These recipients may be located in the participant's country, or elsewhere, and the participant's country may have different data privacy laws and protections than the recipients' country. By accepting an award, each participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the participant's participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the participant may elect to deposit any Common Shares. The Data related to a participant will be held only as long as necessary to implement, administer, and manage the participant's participation in the Plan. A participant may, at any time, view the Data that the Company holds regarding such participant, request additional information about the storage and processing of the Data regarding such participant, recommend any necessary corrections to the Data regarding the participant or refuse or withdraw the consents in this <u>Section</u> <u>5.15</u> in writing, without cost, by contacting the local human resources representative. The Company may cancel participant's ability to participate in the Plan and, in the Committee's sole discretion, the participant may forfeit any outstanding awards if the participant refuses or withdraws the consents in this <u>Section</u> <u>5.15</u>.

**5.16 Limitations Applicable to Section 16 Persons.** Notwithstanding any other provision of the Plan, the Plan and any award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3 of the Exchange Act and any amendments thereto) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

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**5.17 Prohibition on Executive Officer Loans.** Notwithstanding any other provision of the Plan to the contrary, no participant who is a director or an "executive officer" of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any awards granted under the Plan, or continue any extension of credit with respect to such payment, with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

**5.18 Governing Law.** This Plan, **e**ach award hereunder and the related Agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code, the choice of law specified in the related Agreement or the laws of the United States, shall be governed by the laws of the Cayman Islands and construed in accordance therewith without giving effect to principles of conflicts of laws.

**5.19 Foreign Employees.** Without amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals and/or reside outside of the United States on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes the Committee may make such modifications, amendments, procedures, and subplans, and may attach such country-specific appendices, as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has employees.

## Exhibit 10.7

**Exhibit 10.7** 

**ACCELERANT HOLDINGS** 

**2025 EMPLOYEE STOCK PURCHASE PLAN** 

**ADOPTED BY THE BOARD OF DIRECTORS:** 

**APPROVED BY THE SHAREHOLDERS:** 

**TERMINATION DATE:** 

**1. PURPOSE.** The purpose of the Accelerant Holdings 2025 Employee Stock Purchase Plan (this "Plan") is to provide eligible Employees of the Company and Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company through payroll deductions or other contributions in order to enhance such employees' sense of participation in the affairs of the Company. This Plan shall apply to Offering Periods beginning on or after the effective date of the initial public offering of the Shares, as determined by the Committee (as defined below).

This Plan includes two components: (a) a component intended to qualify as an "employee stock purchase plan" under Section 423 of the Code (the "423 Component"), the provisions of which shall be construed so as to extend and limit participation in a uniform and nondiscriminatory manner consistent with the requirements of Section 423 of the Code; and (b) a component that does not qualify as an "employee stock purchase plan" under Section 423 of the Code (the "Non-423 Component"), under which options shall be granted pursuant to rules, procedures or sub-plans adopted by the Committee designed to achieve tax, securities laws or other objectives for eligible Employees, the Company and its Participating Subsidiaries. Except as otherwise provided in this Plan, the Non-423 Component will operate and be administered in the same manner as the 423 Component.

**2. DEFINITIONS.** As used herein, the terms set forth below have the meanings assigned to them in this Section 2 and shall include the plural as well as the singular.

***"1933 Act"*** means the Securities Act of 1933, as amended.

***"1934 Act"*** means the Securities Exchange Act of 1934, as amended.

***"Board"*** means the Board of Directors of the Company.

***"Business Day"*** shall mean a day on which the NYSE is open for trading.

***"Brokerage Account"*** means the account in which the Purchased Shares are held.

***"Code"*** means the Internal Revenue Code of 1986, as amended.

***"Committee"*** means the Compensation Committee of the Board, or the designee of the Compensation Committee.

***"Company"*** means Accelerant Holdings, a Cayman Islands exempted company limited by shares, or any successor thereto.

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***"Compensation"*** means, unless otherwise determined by the Committee in advance of an Offering Period, base pay, commissions, overtime, and vacation, holiday and sick pay. Compensation does not include: (1) income related to share option awards, share grants and other equity incentive awards, (2) expense reimbursements, (3) relocation-related payments, (4) benefit plan payments (including but not limited to short-term disability pay, long-term disability pay, maternity pay, military pay, tuition reimbursement and adoption assistance), (5) accrued but unpaid compensation for a deceased Participant, (6) income from non-cash and fringe benefits, (7) severance payments, (8) annual, quarterly, monthly and other cash bonuses, and (9) other forms of compensation not specifically listed herein.

***"Employee"*** means any individual who is a common law employee of the Company or any other Participating Subsidiary. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or the Participating Subsidiary, as appropriate, and only to the extent permitted under Section 423 of the Code with respect to the 423 Component. For purposes of the Plan, an individual who performs services for the Company or a Participating Subsidiary pursuant to an agreement (written or oral) that classifies such individual's relationship with the Company or a Participating Subsidiary as other than a common law employee shall not be considered an "employee" with respect to any period preceding the date on which a court or administrative agency issues a final determination that such individual is an "employee."

***"Enrollment Date"*** means the first Business Day of each Offering Period.

***"Exercise Date"*** means the last Business Day of each Offering Period (or, if determined by the Committee, the Purchase Period if different from the Offering Period).

***"Fair Market Value"*** on or as of any date means the official closing price for a Share as reported on the NYSE on the relevant valuation date or, if no official closing price is reported on such date, on the preceding day on which an official closing price is reported on the NYSE; or, if the Shares are no longer listed on the NYSE, the closing price for Shares as reported on the official website for such other exchange on which the Shares are listed.

***"NYSE"*** means the New York Stock Exchange.

***"Offering Period"*** means every six-month period beginning each May 1<sup>st</sup> and November 1<sup>st</sup> or such other period designated by the Committee; provided that in no event shall an Offering Period exceed twenty-seven (27) months, with the commencement of the first Offering Period to be determined by the Committee. Notwithstanding anything herein to the contrary, the Committee may establish an Offering Period with multiple Purchase Periods within such Offering Period.

***"Option"*** means an option granted under this Plan that entitles a Participant to purchase Shares.

***"Participant"*** means an Employee who satisfies the requirements of Sections 3 and 5 of the Plan.

***"Participating Subsidiary"*** means each Subsidiary other than those that the Committee or the Board has excluded from participation in the Plan.

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***"Plan"*** means this Accelerant Holdings 2025 Employee Stock Purchase Plan, as amended from time to time.

***"Purchase Account"*** means the account used to purchase Shares through the exercise of Options under the Plan.

***"Purchase Period"*** means the period designated by Committee during which payroll deductions or other contributions of the Participants are accumulated under the Plan. A Purchase Period may coincide with an entire Offering Period or there may be multiple Purchase Periods within an Offering Period, as determined by the Committee prior to the commencement of the applicable Offering Period.

***"Purchase Price"*** shall be the lesser of: (i) 85% of the Fair Market Value of a Share on the applicable Enrollment Date for an Offering Period and (ii) 85% of the Fair Market Value of a Share on the applicable Exercise Date; provided, however, that the Committee may determine a different per share Purchase Price with respect to future Offering Periods provided that such per share Purchase Price is communicated to Participants prior to the beginning of such Offering Period and provided that in no event shall such per share Purchase Price be less than the lesser of (i) 85% of the Fair Market Value of a Share on the applicable Enrollment Date or (ii) 85% of the Fair Market Value of a Share on the Exercise Date.

***"Purchased Shares"*** means the full Shares issued or delivered pursuant to the exercise of Options under the Plan.

***"Shares"*** means the common shares of the Company.

***"Subsidiary"*** means an entity, domestic or foreign, of which not less than 50% of the voting equity is held by the Company or a Subsidiary, whether or not such entity now exists or is hereafter organized or acquired by the Company or a Subsidiary; provided such entity is also a "subsidiary" within the meaning of Section 424 of the Code.

***"Termination Date"*** means (i) the date on which a Participant terminates employment or on which the Participant ceases to provide services to the Company or a Subsidiary as an employee or as otherwise required under Section 423 with respect to the 423 Component or (ii) subject to Section 423 of the Code with respect to the 423 Component, the date on which the Participant's employment is determined to have been terminated for purposes of the Plan by the Committee. The Termination Date specifically does not include any period following that date which the Participant may be eligible for or in receipt of other payments from the Company including in lieu of notice or termination or severance pay or as wrongful dismissal damages.

**3.** **ELIGIBILITY .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Only Employees of the Company or a Participating Subsidiary shall be eligible to be granted Options under the Plan and, in no event may a Participant be granted an Option under the Plan following his or her Termination Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option under the 423 Component of the Plan if (i) immediately after the grant, such Employee (or any other person whose shares would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding Options or options to purchase shares possessing 5% or more of the total combined voting power or value of all classes of shares of the Company or of any of its Subsidiaries or (ii) such Option would permit his or her rights to purchase shares under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds $25,000 of the Fair Market Value of such shares (determined at the time each such Option is granted) for each calendar year in which such Option is outstanding at any time. Except as otherwise determined by the Committee prior to the commencement of an Offering Period, no Participant may purchase more than Shares during any Offering Period.

**4. EXERCISE OF AN OPTION.** Options shall be exercised on behalf of Participants in the Plan every Exercise Date, using payroll deductions that have accumulated in the Participants' Purchase Accounts during the immediately preceding Purchase Period or that have been retained from a prior Purchase Period pursuant to Section 8 hereof.

**5.** **PARTICIPATION .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise determined by the Committee prior to the commencement of an Offering Period and in accordance with Section 423 of the Code with respect to the 423 Component, an Employee shall be eligible to participate on the first Enrollment Date that occurs after such Employee's first date of employment with the Company or a Participating Subsidiary; provided, that such Employee properly completes and submits an election form by the deadline prescribed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An Employee who does not become a Participant on the first Enrollment Date on which he or she is eligible may thereafter become a Participant on any subsequent Enrollment Date by properly completing and submitting an election form by the deadline prescribed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Payroll deductions for a Participant shall commence on the first payroll date following the Enrollment Date and shall end on the last payroll date in the Purchase Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 12 hereof.

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**6. PAYROLL DEDUCTIONS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant shall elect to have payroll deductions made during a Purchase Period equal to no less than 1% of the Participant's Compensation up to a maximum of 15% (or such greater amount as the Committee establishes from time to time). The amount of such payroll deductions shall be in whole percentages, with such deductions being accumulated during the applicable Purchase Period. All payroll deductions made by a Participant shall be credited to his or her Purchase Account. A Participant may not make any additional payments into his or her Purchase Account. Notwithstanding the foregoing or any provisions to the contrary in the Plan, the Committee may allow participants to make other contributions under the Plan via cash, check, or other means instead of payroll deductions if payroll deductions are not permitted under applicable local law, and for any Offering Period under the 423 Component, the Committee determines that such other contributions are permissible under Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise determined by the Committee prior to the commencement of an Offering Period, a Participant may not increase the rate of payroll deductions during an Offering Period. Except as otherwise determined by the Committee prior to the commencement of an Offering Period, a Participant may decrease the rate of payroll deductions during an Offering Period by properly completing and submitting an election change form in accordance with the procedures prescribed by the Committee and/or any other forms required by the Committee and by following any other procedures as may be established by the Committee, in which case the new rate shall become effective as soon as administratively practicable after the Participant elects such change and shall continue for the remainder of the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but not more than one (1) change may be made effective during any Offering Period, except that a Participant may elect at any time during an Offering Period, regardless of whether the Participant previously decreased his or her contribution percentage, to reduce his or her contribution percentage to 0% and such change shall become effective as soon as administratively practicable after the Participant elects such change and shall continue for the remainder of the Offering Period unless changed as described below. A Participant may change his or her payroll deduction percentage under subsection (a) above for any subsequent Offering Period by properly completing and submitting an election change form in accordance with the procedures prescribed by the Committee. The change in amount shall be effective as of the first Enrollment Date following the date of filing of the election change form. Unless otherwise determined by the Committee prior to the commencement of an Offering Period, a payroll deduction election will automatically apply to the next Offering Period, unless otherwise cancelled or changed by the Participant prior to the commencement of such Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a Participant's payroll deductions may be decreased to 0% at any time during an Offering Period. Payroll deductions shall recommence at the rate provided in such Participant's election form at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 12 hereof.

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**7. GRANT OF OPTION.** On the applicable Enrollment Date, each Participant in an Offering Period shall be granted an Option to purchase on the applicable Exercise Date a number of full Shares determined by dividing such Participant's payroll deductions accumulated prior to such Exercise Date and retained in the Participant's Purchase Account as of the applicable Exercise Date by the applicable Purchase Price.

**8. EXERCISE OF OPTION.** A Participant's Option for the purchase of Shares shall be exercised automatically on the Exercise Date, and the maximum number of Shares subject to the Option shall be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her Purchase Account. If the Fair Market Value of a Share on the first day of the current Offering Period in which a participant is enrolled is higher than the Fair Market Value of a Share on the first day of any subsequent Offering Period, the Company may establish procedures to automatically enroll such participant in the subsequent Offering Period and any funds accumulated in a participant's account prior to the first day of such subsequent Offering Period will be applied to the purchase of Shares on the Exercise Date immediately prior to the first day of such subsequent Offering Period. A participant does not need to file any forms with the Company to be automatically enrolled in the subsequent Offering Period.

Except as otherwise determined by the Committee prior to the commencement of an Offering Period, no fractional Shares shall be purchased; any payroll deductions accumulated in a Participant's Purchase Account which are not sufficient to purchase a full Share shall be retained in the Purchase Account for the next subsequent Purchase Period, subject to earlier withdrawal by the Participant as provided in Section 12 hereof. All other payroll deductions accumulated in a Participant's Purchase Account and not used to purchase Shares on an Exercise Date shall be distributed to the Participant. During a Participant's lifetime, a Participant's Option is exercisable only by him or her. The Company shall satisfy the exercise of all Participants' Options for the purchase of Shares through (a) the issuance of authorized but unissued Shares, (b) the transfer of treasury Shares, (c) the purchase of Shares on behalf of the applicable Participants on the open market through an independent broker and/or (d) a combination of the foregoing.

**9. ISSUANCE OF SHARES.** The Shares purchased by each Participant shall be issued in book entry form and shall be considered to be issued and outstanding to such Participant's credit once the Participant has been registered as the holder of such Shares under applicable law. The Committee may permit or require that Shares be deposited directly in a Brokerage Account with one or more brokers designated by the Committee or to one or more designated agents of the Company, and the Committee may use electronic or automated methods of share transfer. The Committee may require that Shares be retained with such brokers or agents for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such Shares, and may also impose a transaction fee with respect to a sale of Shares issued to a Participant's credit and held by such a broker or agent. The Committee may permit Shares purchased under the Plan to participate in a dividend reinvestment plan or program maintained by the Company, and establish a default method for the payment of dividends.

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**10. APPROVAL BY SHAREHOLDERS.** Notwithstanding the above, the Plan is expressly made subject to the approval of the shareholders of the Company within 12 months before or after the date the Plan is adopted by the Board. Such shareholder approval shall be obtained in the manner and to the degree required under applicable Cayman law and U.S. federal and state law. If the Plan is not so approved by the shareholders within 12 months before or after the date the Plan is adopted by the Board, this Plan shall not come into effect.

**11.** **ADMINISTRATION .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Powers and Duties of the Committee</u>. The Plan shall be administered by the Committee. Subject to the provisions of the Plan, Section 423 of the Code and the regulations thereunder with respect to the 423 Component, the Committee shall have the discretionary authority to determine the time and frequency of granting Options, the duration of Offering Periods and Purchase Periods, the terms and conditions of the Options and the number of Shares subject to each Option. The Committee shall also have the discretionary authority to do everything necessary and appropriate to administer the Plan, including, without limitation, interpreting the provisions of the Plan (but any such interpretation shall not be inconsistent with the provisions of Section 423 of the Code with respect to the 423 Component). All actions, decisions and determinations of, and interpretations by the Committee with respect to the Plan shall be final and binding upon all Participants and upon their executors, administrators, personal representatives, heirs and legatees. No member of the Board or the Committee shall be liable for any action, decision, determination or interpretation made in good faith with respect to the Plan or any Option granted hereunder. With respect to the 423 Component, an Offering Period shall be administered so as to ensure that all Participants have the same rights and privileges as provided by Section 423(b)(5) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Administrator</u>. The Company, Board or the Committee may engage the services of a brokerage firm or financial institution to perform certain ministerial and procedural duties under the Plan including, but not limited to, mailing and receiving notices contemplated under the Plan, determining the number of Purchased Shares for each Participant, maintaining or causing to be maintained the Purchase Account and the Brokerage Account, disbursing funds maintained in the Purchase Account or proceeds from the sale of Shares through the Brokerage Account, and filing with the appropriate tax authorities proper tax returns and forms (including information returns) and providing to each Participant statements as required by law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification</u>. Each person who is or shall have been (a) a member of the Board, (b) a member of the Committee, or (c) an officer or employee of the Company to whom authority was delegated in relation to this Plan, shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit or proceeding against him or her; provided, however, that he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability or expense is a result of his or her own willful misconduct or except as expressly provided by applicable law.

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The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's memorandum and articles of association, any contract with the Company, as a matter of law, or otherwise, or of any power that the Company may have to indemnify them or hold them harmless.

**12. WITHDRAWAL.** A Participant may withdraw from the Plan by properly completing and submitting to the Company a withdrawal form in accordance with the procedures prescribed by the Committee, which must be submitted prior to the date specified by the Committee before the last day of the applicable Offering Period. Upon withdrawal, any payroll deductions credited to the Participant's Purchase Account prior to the effective date of the Participant's withdrawal from the Plan will be returned to the Participant. No further payroll deductions for the purchase of Shares will be made during subsequent Offering Periods, unless the Participant properly completes and submits an election form, by the deadline prescribed by the Company. A Participant's withdrawal from an offering will not have any effect upon his or her eligibility to participate in the Plan or in any similar plan that may hereafter be adopted by the Company.

**13. TERMINATION OF EMPLOYMENT.** On the Termination Date of a Participant for any reason prior to the applicable Exercise Date, whether voluntary or involuntary, and including termination of employment due to retirement, death or as a result of liquidation, dissolution, sale, merger or a similar event affecting the Company or a Participating Subsidiary, the corresponding payroll deductions credited to his or her Purchase Account will be returned to him or her or, in the case of the Participant's death, to the person or persons entitled thereto under Section 16, and his or her Option will be automatically terminated.

**14. INTEREST.** No interest shall accrue on the payroll deductions of a Participant in the Plan.

**15.** **SHARES .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The shares subject to Options shall be common shares of the Company as traded on the NYSE or on such other exchange as the Shares may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to adjustment for stock splits, share subdivisions, stock dividends, share consolidations or other changes in capitalization of the Company as provided in Section 18 hereof, the maximum number of Shares which shall be made available for sale under the Plan shall be Shares. In addition, subject to adjustments upon changes in capitalization of the Company as provided in Section 18 hereof, the maximum number of Shares which shall be made available for sale under the Plan shall automatically increase on the first trading day in January of each calendar year, commencing in 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) Shares, (ii) % of the number of Shares issued and outstanding on December 31 of the immediately preceding calendar year, and (iii) an amount determined by the Board. If, on a given Exercise Date, the number of Shares with respect to which Options are to be exercised exceeds the number of Shares then available under the Plan, the Committee shall make a pro rata allocation of the Shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Participant shall have no interest or voting right in Shares covered by his or her Option until such Option has been exercised and the Participant has become a holder of record of Shares acquired pursuant to such exercise.

**16. DESIGNATION OF BENEFICIARY.** The Committee may permit Participants to designate beneficiaries to receive any Purchased Shares or payroll deductions, if any, in the Participant's accounts under the Plan in the event of such Participant's death. Beneficiary designations shall be made in accordance with procedures prescribed by the Committee. If no properly designated beneficiary survives the Participant, the Purchased Shares and payroll deductions, if any, will be distributed to the Participant's estate.

**17. ASSIGNABILITY OF OPTIONS.** Neither payroll deductions credited to a Participant's Purchase Account nor any rights with regard to the exercise of an Option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 16 hereof) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 12 hereof.

**18.** **ADJUSTMENT OF NUMBER OF SHARES SUBJECT TO OPTIONS .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustment</u>. Subject to any required action by the shareholders of the Company, the maximum number of securities available for purchase under the Plan, as well as the price per security and the number of securities covered by each Option under the Plan which has not yet been exercised shall be appropriately adjusted in the event of any stock split, share subdivision, stock dividend, share consolidation, combination or reclassification of the Shares, or any other increase or decrease in the number of Shares effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board or the Committee, whose determination in that respect shall be final, binding and conclusive. If any such adjustment would result in a fractional security being available under the Plan, such fractional security shall be disregarded. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option. With respect to the 423 Component, the Options granted pursuant to the Plan shall not be adjusted in a manner that causes the Options to fail to qualify as options issued pursuant to an "employee stock purchase plan" within the meaning of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dissolution or Liquidation</u>. In the event of the proposed dissolution or liquidation of the Company, any Offering Period then in progress will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board, and the Board may either provide for the purchase of Shares as of the date on which such Offering Period terminates or return to each Participant the payroll deductions credited to such Participant's Purchase Account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Merger or Asset Sale</u>. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding Option shall be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor corporation, unless the Board determines, in the exercise of its sole discretion, that in lieu of such assumption or substitution, to either terminate all outstanding Options and return to each Participant the payroll deductions credited to such Participant's Purchase Account or to provide for the Offering Period in progress to end on a date prior to the consummation of such sale or merger.

**19.** **AMENDMENTS OR TERMINATION OF THE PLAN .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board or the Committee may at any time and for any reason amend, modify, suspend, discontinue or terminate the Plan without notice; provided that no Participant's existing rights in respect of existing Options are adversely affected thereby. To the extent necessary to comply with Section 423 of the Code (or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without shareholder consent and without regard to whether any Participant rights may be considered to have been "adversely affected," the Board or the Committee shall be entitled to change the Purchase Price, Offering Periods, Purchase Periods, eligibility requirements, limit or increase the frequency and/or number of changes in the amount withheld during a Purchase Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in an amount less than or greater than the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from the Participant's Compensation, and establish such other limitations or procedures as the Board or the Committee determines in its sole discretion advisable which are consistent with the Plan; provided, however, that changes to (i) the Purchase Price, (ii) the Offering Period, (iii) the Purchase Period, (iv) the maximum percentage of Compensation that may be deducted pursuant to Section 6(a) or (v) the maximum number of Shares that may be purchased in a Purchase Period, shall not be effective until communicated to Participants in a reasonable manner, with the determination of such reasonable manner in the sole discretion of the Board or the Committee.

**20. NO OTHER OBLIGATIONS.** The receipt of an Option pursuant to the Plan shall impose no obligation upon the Participant to purchase any Shares covered by such Option. Nor shall the granting of an Option pursuant to the Plan constitute an agreement or an understanding, express or implied, on the part of the Company to employ the Participant for any specified period.

**21. NOTICES AND COMMUNICATION.** Any notice or other form of communication which the Company or a Participant may be required or permitted to give to the other shall be provided through such means as designated by the Committee, including but not limited to any paper or electronic method.

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**22. CONDITION UPON ISSUANCE OF SHARES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the 1933 Act and the 1934 Act and the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

**23. GENERAL COMPLIANCE.** The Plan will be administered and Options will be exercised in compliance with the 1933 Act, 1934 Act and all other applicable securities laws and Company policies, including without limitation, any insider trading policy of the Company.

**24. TERM OF THE PLAN.** The Plan shall become effective upon the earlier to occur of (i) its adoption by the Board and (ii) its approval by the shareholders of the Company (the earlier of such events, the "Effective Date"), and shall continue in effect until the earlier of (A) the termination of the Plan pursuant to Section 19 hereof; and (B) the ten-year anniversary of the Effective Date, with no new Offering Periods commencing on or after such ten-year anniversary.

**25. GOVERNING LAW.** The Plan and all Options granted hereunder shall be construed in accordance with and governed by the laws of Delaware without reference to choice of law principles and subject in all cases to the Code and the regulations thereunder.

**26. NON-U.S. PARTICIPANTS.** To the extent permitted under Section 423 of the Code, without the amendment of the Plan, the Company may provide for the participation in the Plan by Employees who are subject to the laws of foreign countries or jurisdictions on such terms and conditions different from those specified in the Plan as may in the judgment of the Company be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes the Company may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws of other countries or jurisdictions in which the Company or the Participating Subsidiaries operate or have employees. Each subplan shall constitute a separate "offering" under this Plan in accordance with Treas. Reg. §1.423-2(a) and, to the extent inconsistent with the requirements of Section 423, any such subplan shall be considered part of the Non-423 Component, and rights granted thereunder shall not be required by the terms of the Plan to comply with Section 423 of the Code.

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**27. SECTION 409A OF THE CODE.** The 423 Component is exempt from the application of Section 409A of the Code, and any ambiguities herein shall be interpreted to so be exempt from Section 409A of the Code. The Non-423 Component is intended to be exempt from the application of Section 409A of the Code under the short-term deferral exception and any ambiguities shall be construed and interpreted in accordance with such intent. In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Committee determines that an Option granted under the Plan may be subject to Section 409A of the Code or that any provision in the Plan would cause an Option under the Plan to be subject to Section 409A of the Code, the Committee may amend the terms of the Plan and/or of an outstanding Option granted under the Plan, or take such other action the Committee determines is necessary or appropriate, in each case, without the participant's consent, to exempt any outstanding Option or future Option that may be granted under the Plan from or to allow any such Options to comply with Section 409A of the Code, but only to the extent any such amendments or action by the Committee would not violate Section 409A of the Code. Notwithstanding the foregoing, the Company shall have no liability to a participant or any other party if the Option under the Plan that is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee with respect thereto.

## Exhibit 10.8

**Exhibit 10.8** 

***EXECUTION VERSION***

**CREDIT AGREEMENT** 

**dated as of January 29, 2021** 

**among** 

**ACCELERANT HOLDINGS LP,** 

**as Initial Borrower,** 

**THE GUARANTORS FROM TIME TO TIME PARTY HERETO,** 

**as Guarantors,** 

**THE LENDERS FROM TIME TO TIME PARTY HERETO** 

**and** 

**BANK OF MONTREAL,** 

**as Administrative Agent,** 

**BMO CAPITAL MARKETS CORP.** 

**and** 

**RBC CAPITAL MARKETS, LLC,** 

**as Joint Lead Arrangers and Joint Bookrunners** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| ARTICLE I | ARTICLE I |  |
| DEFINITIONS AND ACCOUNTING TERMS | DEFINITIONS AND ACCOUNTING TERMS |  |
|  Section 1.01 | Defined Terms | 1 |
|  Section 1.02 | Other Interpretive Provisions | 47 |
|  Section 1.03 | Accounting Terms | 47 |
|  Section 1.04 | Rounding | 48 |
|  Section 1.05 | Times of Day | 48 |
|  Section 1.06 | Timing of Payment or Performance | 48 |
|  Section 1.07 | Consolidated Financial Statements; GAAP | 48 |
|  Section 1.08 | Divisions | 49 |
|  Section 1.09 | [Reserved] | 49 |
|  Section 1.10 | Pro Forma Effect | 49 |
|  Section 1.11 | Limited Condition Investments | 50 |
| ARTICLE II | ARTICLE II |  |
| THE COMMITMENTS AND LOANS | THE COMMITMENTS AND LOANS |  |
|  Section 2.01 | Loans | 51 |
|  Section 2.02 | Borrowings and Continuations of Loans | 52 |
|  Section 2.03 | Optional and Mandatory Prepayments | 53 |
|  Section 2.04 | Repayment of the Loans | 56 |
|  Section 2.05 | Interest | 56 |
|  Section 2.06 | Fees | 57 |
|  Section 2.07 | Computation of Interest and Fees | 57 |
|  Section 2.08 | Evidence of Debt | 57 |
|  Section 2.09 | Payments Generally; Administrative Agent's Clawback | 58 |
|  Section 2.10 | Sharing of Payments by Lenders | 60 |
|  Section 2.11 | Defaulting Lenders | 60 |
|  Section 2.12 | Incremental Facilities | 62 |
| ARTICLE III | ARTICLE III |  |
| TAXES, YIELD PROTECTION AND ILLEGALITY | TAXES, YIELD PROTECTION AND ILLEGALITY |  |
|  Section 3.01 | Taxes | 64 |
|  Section 3.02 | Illegality | 68 |
|  Section 3.03 | Inability to Determine Rates; Successor EURIBOR Rate | 69 |
|  Section 3.04 | Increased Costs; Reserves on Loans | 70 |
|  Section 3.05 | Compensation for Losses | 72 |
|  Section 3.06 | Mitigation Obligations; Replacement of Lenders | 73 |
|  Section 3.07 | Survival | 73 |

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| | | |
|:---|:---|:---|
| ARTICLE IV | ARTICLE IV |  |
| CONDITIONS PRECEDENT | CONDITIONS PRECEDENT |  |
|  Section 4.01 | Conditions to Effectiveness and Effective Date Borrowing | 73 |
| ARTICLE V | ARTICLE V |  |
| REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES |  |
|  Section 5.01 | Existence, Qualification and Power | 76 |
|  Section 5.02 | Authorization; No Contravention | 76 |
|  Section 5.03 | Execution and Delivery; Binding Effect | 76 |
|  Section 5.04 | Financial Statements; No Material Adverse Effect | 77 |
|  Section 5.05 | Litigation | 77 |
|  Section 5.06 | Property | 77 |
|  Section 5.07 | Taxes | 78 |
|  Section 5.08 | Disclosure | 78 |
|  Section 5.09 | Compliance with Laws | 78 |
|  Section 5.10 | ERISA Compliance | 78 |
|  Section 5.11 | Environmental Matters | 79 |
|  Section 5.12 | Margin Regulations; Federal Reserve Regulations; Use of Proceeds | 79 |
|  Section 5.13 | Investment Company Act | 79 |
|  Section 5.14 | Anti-Corruption Laws and Sanctions | 79 |
|  Section 5.15 | Solvency | 80 |
|  Section 5.16 | Beneficial Ownership Certification | 80 |
|  Section 5.17 | EEA Financial Institutions | 80 |
|  Section 5.18 | Insurance Licenses | 80 |
| ARTICLE VI | ARTICLE VI |  |
| AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS |  |
|  Section 6.01 | Financial Statements and Statutory Statements | 81 |
|  Section 6.02 | Certificates; Other Information | 82 |
|  Section 6.03 | Notices | 84 |
|  Section 6.04 | Preservation of Existence, Etc. | 84 |
|  Section 6.05 | Maintenance of Properties | 85 |
|  Section 6.06 | Maintenance of Insurance | 85 |
|  Section 6.07 | Payment of Obligations | 85 |
|  Section 6.08 | Compliance with Laws | 85 |
|  Section 6.09 | Books and Records | 86 |

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- ii -

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| | | |
|:---|:---|:---|
|  Section 6.10 | Inspection Rights | 86 |
|  Section 6.11 | Use of Proceeds | 86 |
|  Section 6.12 | Additional Guarantors | 86 |
|  Section 6.13 | Further Assurances |  |
|  Section 6.14 | Post-Closing Matters | 87 |
| ARTICLE VII | ARTICLE VII | 87 |
| NEGATIVE COVENANTS | NEGATIVE COVENANTS |  |
|  Section 7.01 | Indebtedness | 87 |
|  Section 7.02 | Liens | 90 |
|  Section 7.03 | Investments | 93 |
|  Section 7.04 | Non-OC Asset Sales and Non-OC Reinsurance Transactions | 93 |
| Section 7.05 | Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries | 94 |
|  Section 7.06 | Restricted Payments | 95 |
|  Section 7.07 | Transactions with Affiliates | 96 |
|  Section 7.08 | Certain Restrictive Agreements | 99 |
|  Section 7.09 | Use of Proceeds | 100 |
|  Section 7.10 | Change in Nature of Business, Organizational Documents and Fiscal Year | 100 |
|  Section 7.11 | Financial Covenants | 100 |
| ARTICLE VIII | ARTICLE VIII |  |
| EVENTS OF DEFAULT AND REMEDIES | EVENTS OF DEFAULT AND REMEDIES |  |
|  Section 8.01 | Events of Default | 102 |
|  Section 8.02 | Remedies Upon Event of Default | 105 |
|  Section 8.03 | Application of Funds | 105 |
| ARTICLE IX | ARTICLE IX |  |
| ADMINISTRATIVE AGENT | ADMINISTRATIVE AGENT |  |
|  Section 9.01 | Appointment and Authority | 106 |
|  Section 9.02 | Rights as a Lender | 106 |
|  Section 9.03 | Exculpatory Provisions | 106 |
|  Section 9.04 | Reliance by Administrative Agent | 108 |
|  Section 9.05 | Delegation of Duties | 109 |
|  Section 9.06 | Resignation and Removal of Administrative Agent | 109 |
|  Section 9.07 | Non-Reliance on Administrative Agent and Other Lenders | 110 |
|  Section 9.08 | No Other Duties, Etc. | 110 |
|  Section 9.09 | Administrative Agent May File Proofs of Claim | 111 |
|  Section 9.10 | Posting of Communications | 111 |
|  Section 9.11 | Certain ERISA Matters | 113 |

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- iii -

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| | | |
|:---|:---|:---|
| ARTICLE X | ARTICLE X |  |
| MISCELLANEOUS | MISCELLANEOUS |  |
|  Section 10.01 | Amendments, Etc. | 114 |
|  Section 10.02 | Notices; Effectiveness; Electronic Communication | 116 |
|  Section 10.03 | No Waiver; Cumulative Remedies; Enforcement | 118 |
|  Section 10.04 | Expenses; Indemnity; Damage Waiver | 118 |
|  Section 10.05 | Payments Set Aside | 121 |
|  Section 10.06 | Successors and Assigns | 121 |
|  Section 10.07 | Treatment of Certain Information; Confidentiality | 130 |
|  Section 10.08 | Right of Setoff | 131 |
|  Section 10.09 | Interest Rate Limitation | 131 |
|  Section 10.10 | Counterparts; Integration | 132 |
|  Section 10.11 | Survival of Representations and Warranties | 132 |
|  Section 10.12 | Severability | 132 |
|  Section 10.13 | Replacement of Lenders | 132 |
|  Section 10.14 | Governing Law; Jurisdiction; Etc. | 133 |
|  Section 10.15 | Waiver of Jury Trial | 135 |
|  Section 10.16 | No Advisory or Fiduciary Responsibility | 135 |
|  Section 10.17 | Electronic Execution of Assignments and Certain Other Documents | 136 |
|  Section 10.18 | USA PATRIOT Act | 136 |
|  Section 10.19 | Judgment Currency | 136 |
| Section 10.20 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 137 |
|  Section 10.21 | Acknowledgment Regarding Any Supported QFCs | 138 |

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| | |
|:---|:---|
| **Schedules:** |  |
| Schedule 2.01 | Commitments |
| Schedule 7.01 | Existing Debt |
| Schedule 7.02 | Existing Liens |
| Schedule 7.07 | Transactions with Affiliates |
| Schedule 10.02 | Administrative Agent's Office; Certain Addresses for Notices |
| **Exhibits:** |  |
| Exhibit A | Form of Loan Notice |
| Exhibit B | Form of Note |
| Exhibit C | Form of Compliance Certificate |
| Exhibit D | Form of Assignment and Assumption |
| Exhibit E-1 | Form of U.S. Tax Compliance Certificate |
| Exhibit E-2 | Form of U.S. Tax Compliance Certificate |
| Exhibit E-3 | Form of U.S. Tax Compliance Certificate |
| Exhibit E-4 | Form of U.S. Tax Compliance Certificate |

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- iv -

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| | |
|:---|:---|
|  Exhibit F | Form of Guaranty |
|  Exhibit G | Form of Solvency Certificate |
|  Exhibit H | Auction Procedures |
|  Exhibit I | Beneficial Ownership Certification |

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- v -

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**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (this "<u>Agreement</u>") is entered into as of January 29, 2021 among Accelerant Holdings LP, a Cayman Islands exempted limited partnership with registration number 99306 (the "<u>Initial Borrower</u>"), acting by its general partner Accelerant Holdings GP, a Cayman Islands exempted company with registration number 345605, each Guarantor from time to time party hereto, each lender from time to time party hereto (collectively, the "<u>Lenders</u>" and individually, a "<u>Lender</u>") and Bank of Montreal, as Administrative Agent.

The Initial Borrower has requested that the Lenders provide a term loan facility to the Borrower, and the Lenders are willing to do so on the terms and conditions set forth herein. Accordingly, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING TERMS** 

**Section 1.01 <u>Defined Terms</u>**. As used in this Agreement, the following terms shall have the meanings set forth below:

"<u>Accelerant Holdings</u>" means Accelerant Holdings, a Cayman Islands exempted company with registration number 347465.

"<u>Accounting Change</u>" has the meaning specified in Section 1.03(b). "<u>Act</u>" has the meaning specified in Section 10.18.

"<u>Administrative Agent</u>" means Bank of Montreal in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

"<u>Administrative Agent's Office</u>" means the Administrative Agent's address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form acceptable to the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution*.*

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Affiliated Lender</u>" has the meaning specified in Section 10.06(b)(vii)(A).

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"<u>Agent-Related Persons</u>" means, collectively, the Administrative Agent and the Arrangers, together with their respective Affiliates and the partners, officers, directors, employees, agents and advisors of such Persons and Affiliates.

"<u>Aggregate Commitments</u>" means, as of the date of any determination, the Commitments of all of the Lenders then in effect. As of the date hereof, the Aggregate Commitments are equal to €35,000,000.

"<u>Agreement</u>" means this Credit Agreement.

"<u>Altamont</u>" means Altamont Capital Management, LLC and any of its Controlled Investments Affiliates.

"<u>Anti-Corruption Laws</u>" means all laws, rules and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

"<u>Applicable Insurance Regulatory Authority</u>" means, with respect to any Regulated Insurance Company, the insurance commission or similar Governmental Authority located in the jurisdiction in which such Regulated Insurance Company is domiciled.

"<u>Applicable Percentage</u>" means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place), equal to a fraction, the numerator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of such Lender and the denominator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of all Lenders.

"<u>Applicable Rate</u>" means, from time to time, the following percentages per annum, based upon the Consolidated Senior Debt to Capitalization Ratio, as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, as set forth below:

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| | | |
|:---|:---|:---|
| **Pricing Level** | **Consolidated Senior Debt to Capitalization Ratio** | **Applicable Rate** |
| 1 | Less than or equal to 25% | 4.00% |
| 2 | Greater than 25% but less than or equal to 30% | 4.25% |
| 3 | Greater than 30% | 4.50% |

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Except as otherwise provided in the paragraph below, adjustments, if any, to the Pricing Level then in effect shall be effective two (2) Business Days after the Administrative Agent has received financial statements pursuant to Section 6.01(i) or Section 6.01(ii), as applicable, and the related Compliance Certificate pursuant to Section 6.02(i) (it being understood and agreed that each change in Pricing Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change).

Notwithstanding the foregoing, Level 2 shall be deemed to be applicable until the Administrative Agent's receipt of such financial statements and Compliance Certificate for the first fiscal period ending after the Effective Date (unless such financial statements demonstrate that Level 1 or Level 3 should have been applicable during such period, in which case such other Pricing Level shall be deemed to be applicable during such period) and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance with the preceding paragraph.

In the event that any financial statements delivered pursuant to Section 6.01(i) or Section 6.01(ii) or any Compliance Certificate delivered pursuant to Section 6.02(i) is inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Rate for any period (an "<u>Applicable Period</u>") than the Applicable Rate applied for such Applicable Period, then (i) the Borrower shall immediately deliver to the Administrative Agent corrected financial statements and a corrected Compliance Certificate for such Applicable Period, (ii) the Applicable Rate shall be determined based on the corrected Compliance Certificate for such Applicable Period, and (iii) the Borrower shall immediately pay to the Administrative Agent (for the account of the Lenders during the Applicable Period or their successors and assigns) the accrued additional interest owing as a result of such increased Applicable Rate for such Applicable Period. This paragraph shall not limit the rights of the Administrative Agent or the Lenders under Section 2.05 and Article VIII, and shall survive the termination of this Agreement.

"<u>Approved Electronic Platform</u>" has the meaning specified in Section 9.10(a).

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Arrangers</u>" means BMO Capital Markets Corp. and RBC Capital Markets, LLC, in their capacities as joint lead arrangers and joint bookrunners.

"<u>Asset Sale Threshold</u>" means an aggregate amount equal to the greater of (a) €3,000,000 and (b) 3.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form approved by the Administrative Agent.

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"<u>Auction</u>" has the meaning specified in Section 10.06(b)(vii)(B).

"<u>Auction Manager</u>" means any financial institution or advisor agreed by the Borrower and the Administrative Agent to act as an arranger in connection with any repurchases pursuant to Section 10.06(b)(vii)(B).

"<u>Audited Financial Statements</u>" means the audited consolidated balance sheets of Accelerant Holdings and its Subsidiaries, and the related statements of income, stockholders' equity and cash flows of Accelerant Holdings and its Subsidiaries, for the fiscal year ended on December 31, 2019 and as most recently delivered prior to the Effective Date.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy".

"<u>Benchmark Replacement</u>" means the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the relevant Governmental Authority or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the EURIBOR Rate for euro-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; <u>provided</u> that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the EURIBOR Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative

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Agent and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of EURIBOR with the applicable Unadjusted Benchmark Replacement by the relevant Governmental Authority or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the EURIBOR Rate with the applicable Unadjusted Benchmark Replacement for euro-denominated syndicated credit facilities at such time.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Interest Period," timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides maybe appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).

"<u>Benchmark Replacement Date</u>" means the earlier to occur of the following events with respect to the EURIBOR Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the EURIBOR Rate permanently or indefinitely ceases to provide the EURIBOR Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the EURIBOR Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a public statement or publication of information by or on behalf of the administrator of the EURIBOR Rate announcing that such administrator has ceased or will cease to provide the EURIBOR Rate, permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide the EURIBOR Rate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a public statement or publication of information by the regulatory supervisor for the administrator of the EURIBOR Rate, an insolvency official with jurisdiction over the administrator for the EURIBOR Rate, a resolution authority with jurisdiction over the administrator for the EURIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the EURIBOR Rate, which states that the administrator of the EURIBOR Rate has ceased or will cease to provide the EURIBOR Rate permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide the EURIBOR Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a public statement or publication of information by the regulatory supervisor for the administrator of the EURIBOR Rate announcing that the EURIBOR Rate is no longer representative.

"<u>Benchmark Transition Start Date</u>" means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders.

"<u>Benchmark Unavailability Period</u>" means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the EURIBOR Rate and solely to the extent that the EURIBOR Rate has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the EURIBOR Rate for all purposes hereunder in accordance with the Section titled "Effect of Benchmark Transition Event" and (y) ending at the time that a Benchmark Replacement has replaced the EURIBOR Rate for all purposes hereunder pursuant to Section 3.03(b).

"<u>Beneficial Owner</u>" means each of the following: (a) each individual, if any, who, directly or indirectly, owns 25% or more of the Borrower's equity interests; and (b) a single individual with significant responsibility to control, manage, or direct the Borrower.

"<u>Beneficial Ownership Certification</u>" means a certificate in the form attached hereto as Exhibit I or such other certificate in form and substance reasonably acceptable to the Administrative Agent and the Borrower, certifying, among other things, the Beneficial Owners of the Borrower.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan."

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"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>Board of Directors</u>" means, with respect to any Person, (a) in the case of any corporation or exempted company, the board of directors of such Person or any committee thereof duly authorized to act on behalf of such board, (b) in the case of any limited liability company, the board of managers of such Person or the board of directors or the board of managers of the managing member of such Person, as the case may be, (c) in the case of any partnership or exempted limited partnership, the board of directors or board of managers of the general partner of such Person and (d) in any other case, the functional equivalent of the foregoing.

"<u>Borrower</u>" means (a) prior to the effectiveness of the Borrower Assumption, the Initial Borrower, and (b) from and after the effectiveness of the Borrower Assumption, the New Borrower.

"<u>Borrower Assignment and Acceptance</u>" means an Assignment and Assumption Agreement substantially in the form of <u>Exhibit D</u>, with such amendments or modifications as may be approved by the Administrative Agent.

"<u>Borrower Assumption</u>" means the assignment by the Initial Borrower of all of its rights and obligations as the "Borrower" under this Agreement and the other Loan Documents to the New Borrower, the assumption by the New Borrower of all rights and obligations as the "Borrower" under this Agreement and the other Loan Documents, and the release of the Initial Borrower of all of its rights and obligations as the "Borrower" under this Agreement and the other Loan Documents, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent; <u>provided</u> that the effectiveness of the Borrower Assumption shall be subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately prior to, and immediately after giving effect to, the effectiveness of the Borrower Assumption, the New Borrower shall be a wholly-owned Subsidiary of the Initial Borrower and the General Partner shall be the general partner of the New Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) all of the assets of the Initial Borrower immediately prior to the effectiveness of the Borrower Assumption (other than (A) assets of the Initial Borrower as of the Effective Date, immediately prior to the effectiveness of this Agreement, and (B) Equity Interests of the New Borrower) shall be contributed or otherwise transferred to the New Borrower and (ii) all of the Equity Interests beneficially owned, directly or directly, by the Initial Borrower immediately prior to the effectiveness of the Borrower Assumption (other than Equity Interests of the New Borrower) shall be beneficially owned, directly or indirectly, by the New Borrower;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of the date of the effectiveness of the Borrower Assumption; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) immediately prior to, and immediately after giving effect to, the effectiveness of the Borrower Assumption, no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) after giving effect to the effectiveness of the Borrower Assumption, on a pro-forma basis, the Borrower shall be in compliance with the covenants set forth in Section 7.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the New Borrower as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents (including true, correct and up to date copies of the exempted limited partnership agreement, certificate of registration of exempted limited partnership, section 9 statement and any section 10 statements of the New Borrower and the certificate of incorporation, memorandum and articles of association, register of directors and officers and register of mortgages and charges of the General Partner) and (B) a good standing certificate (or equivalent) for each of the New Borrower and the General Partner from its jurisdiction of organization, registration or incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) customary opinions of each of (i) Sidley Austin, LLP and (ii) Maples Group, in each case, counsel to the New Borrower, addressed to the Administrative Agent and each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such documentation, executed and delivered by the Guarantors, as the Administrative Agent may reasonably require to reaffirm the obligations of the Guarantors under the Loan Documents after giving effect to the effectiveness of the Borrower Assumption; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate signed by a Responsible Officer of the New Borrower certifying that the conditions specified in clauses (a), (b), (c), (d) and (e) of this definition have been satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) at least three (3) Business Days prior to the date of the effectiveness of the Borrower Assumption, all documentation and other information requested by the Administrative Agent or any Arranger, to the extent requested in writing of the New Borrower at least 10 days prior to the date of the effectiveness of the Borrower Assumption and that the Administrative Agent and the Arrangers reasonably determine is required by United States regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, and (ii) to the extent the New Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, at least five (5) days prior to the date of the effectiveness of the Borrower Assumption, a Beneficial Ownership Certification in relation to the New Borrower.

"<u>Borrower Materials</u>" has the meaning specified in Section 6.02.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Loans having the same Interest Period made by the Lenders pursuant to Section 2.01.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions in the State of New York or London, England are authorized or required by Law to close; <u>provided</u> that, when used in connection with a Loan, the term "<u>Business Day</u>" shall exclude any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be operative, such other payment system (if any) determined by the Administrative Agent to be a suitable replacement) is not open.

"<u>Capital and Surplus</u>" means, for any Insurance Subsidiary as of any date, the total statutory capital and surplus (or any successor line item description that contains the same information) as shown in its Statutory Statement, or an amount determined in a consistent manner for any date other than one as of which a Statutory Statement was prepared.

"<u>Capital Lease</u>" of any Person means any lease of (or other arrangement conveying the right to use) property (whether real, personal or mixed) by such Person as lessee which would, in accordance with IFRS, as in effect as of the date hereof, be required to be accounted for as a capital lease on the balance sheet of such Person; <u>provided</u> that all leases of any Person that are or would be characterized as operating leases in accordance with IFRS immediately prior to the Effective Date (whether or not such operating leases were in effect on such date) shall continue to be accounted for as operating leases (and not as Capital Leases) for purposes of this Agreement (except that financial statements delivered pursuant to Sections 6.01(i) or 6.01(ii) shall reflect such operating leases in accordance with IFRS as in effect at the time of such delivery) regardless of any change in IFRS following the Effective Date that would otherwise require such leases to be recharacterized as Capital Leases.

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"<u>Capitalized Lease Obligations</u>" means, as of any date of determination in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with IFRS; <u>provided</u> that all obligations of any Person that are or would be characterized as operating lease obligations in accordance with IFRS immediately prior to the Effective Date (whether or not such operating lease obligations were in effect on such date) shall continue to be accounted for as operating lease obligations (and not as Capitalized Lease Obligations) for purposes of this Agreement (except that financial statements delivered pursuant to Sections 6.01(i) or 6.01(ii) shall reflect such operating leases in accordance with IFRS as in effect at the time of such delivery) regardless of any change in IFRS following the Effective Date that would otherwise require such obligations to be recharacterized as Capitalized Lease Obligations.

"<u>Casualty Event</u>" means any casualty or other insured damage to any property of the Borrower or any Subsidiary, or any taking of any such property under power of eminent domain or by condemnation or similar proceeding, or any transfer of any such property in lieu of a condemnation or similar taking thereof.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law; (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "<u>Change in Law</u>", regardless of the date enacted, adopted or issued.

"<u>Change of Control</u>" means the occurrence of any of the following: (a) prior to a Qualified IPO, Altamont ceases to beneficially own, directly or indirectly, Equity Interests of the Borrower representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; (b) after a Qualified IPO, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Altamont, becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Equity Interests of the Borrower representing both (i) more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower and (ii) more than the percentage of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower that are beneficially owned, directly or directly, by Altamont; (c) the majority of the seats (other than

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vacant seats) on the Board of Directors of the Borrower cease to be occupied by (i) Persons who were members of the Board of Directors of the Borrower on the Effective Date or (ii) any new members whose election to such Board of Directors or whose nomination for election was approved by a vote of a majority of the members of the Board of Directors of the Borrower then still in office who were either members on the Effective Date or whose election or nomination for election was previously so approved; or (d) the occurrence of a "change of control" (howsoever defined) in any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount that constitutes an "event of default" under such instrument.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>Commitment</u>" means, as to each Lender, its obligation to make Loans to the Initial Borrower pursuant to Section 2.01 in an aggregate principal amount not to exceed the amount set forth opposite such Lender's name on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

"<u>Communications</u>" has the meaning specified in Section 9.10(c).

"<u>Compliance Certificate</u>" means a certificate substantially in the form of Exhibit C.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Adjusted Capitalization</u>" means, as of any date of determination, the sum of (i) Consolidated Adjusted Debt, plus (ii) Consolidated Net Worth as of such date, plus, without duplication, (iii) the Hybrid Securities Allowed Amount, in each case as of such date.

"<u>Consolidated Adjusted Debt</u>" means, as of any date of determination, (a) Consolidated Total Debt, minus (b) Consolidated Operating Debt.

"<u>Consolidated Adjusted EBITDA</u>" means, with respect to any Person for any period, Consolidated EBITDA for such period, giving pro forma effect to any applicable Specified Transaction, plus, without duplication, (a) Pro Forma Commission Adjustment for such period, plus (b) Pro Forma Run-Rate Commission Adjustment for such period, plus (c) Pro Forma Run-Rate Premium Adjustment for such period.

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"<u>Consolidated Adjusted Senior Debt</u>" means, as of any date of determination, (a) Consolidated Senior Debt, minus (b) Consolidated Senior Operating Debt.

"<u>Consolidated EBITDA</u>" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period (plus, without duplication, all net income of the Insurance Subsidiaries):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following items to the extent deducted in calculating such Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Interest Expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Consolidated Income Taxes; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) consolidated depreciation expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) consolidated amortization expense or impairment charges recorded in connection with the application of IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), IFRS 38 (Intangible Assets), IAS 16 (Property Plant and Equipment) and IAS 36 (Impairment of Assets); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) other non-cash charges reducing Consolidated Net Income, including any
write-offs or write-downs (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid
in a prior period not included in the calculation); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) any (i) Transaction Costs and (ii) fees, costs, charges or other expenses incurred in connection with
(A) any actual or proposed investment, joint venture, asset sale, acquisition, recapitalization or issuance of Equity Interest or the incurrence of Debt (including, with respect to Debt, a refinancing thereof) or (B) any amendment, waiver,
consent or modification to the Loan Documents, any documentation governing any Debt (including as a result of IFRS 3 (Business Combinations)) or any documentation governing the terms of any transaction described in the immediately preceding
subclause (A), whether or not such transaction or amendment, waiver, consent or modification is successful, or modification of Debt; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the amount of "run rate" cost savings, synergies, operating improvements and operating expense
reductions resulting from, or related to, mergers and other business combinations, acquisitions, investments, divestitures, dispositions, discontinuance of activities or

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operations, the consolidation or closing of locations, and other specified transactions, restructurings, cost savings initiatives, operational changes and other initiatives (including acquisitions occurring prior to the Effective Date) that are reasonably identifiable and projected by the Borrower in good faith to result from actions either taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) within twenty-four (24) months of the underlying action or transaction (or undertaken or implemented prior to consummation of the acquisition or other applicable transaction), in each case, calculated (i) on a pro forma basis as though such cost savings, synergies, operating improvements or operating expense reductions had been realized on the first day of such period and (ii) net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that "run rate" means the full recurring benefit that is associated with any action taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Effective Date) (which adjustments may be incremental to (but not duplicative of) pro forma cost savings, synergies, operating improvements or operating expense reduction adjustments made pursuant to clause (8) below; except that the aggregate amount added back pursuant to this clause (7), when aggregated with the aggregate amount added back pursuant to clause (8) below and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added back pursuant to Section 1.10, in each case with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the amount of any restructuring charges (including lease termination, severance and relocation expenses),
integration costs or other business optimization expenses or non-ordinary course reserves; except that the aggregate amount added back pursuant to this clause (8), when aggregated with the aggregate amount
added back pursuant to clause (7) above and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added back pursuant to Section 1.10, in each case
with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

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| | |
|:---|:---|
| (9)(A) | consulting and similar fees, expenses and indemnities payable to Altamont and its Affiliates to the extent payment thereof is not prohibited by this Agreement and (B) compensation and expense reimbursements payable to directors and officers, any indemnity payments, and any expenses for director and officer insurance premiums to the extent such payment is not prohibited by this Agreement, in each case, to the extent the same were deducted (and not added back) in such period in computing Consolidated Net Income; plus  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) any non-recurring, unusual or extraordinary charges, losses or expenses
(excluding charges, losses and/or expenses of the type added back pursuant to clause (8) above) deducted (and not added back) in such period in computing Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by non-cash items increasing Consolidated Net Income of such Person for such period (excluding any items which represent the recognition of deferred revenue, the reversal of any accrual of, or reserve for, anticipated cash charges that reduced Consolidated EBITDA in any prior period and any items for which cash was received in a prior period that did not increase Consolidated EBITDA in any prior period); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) increased or decreased (without duplication) to eliminate the following items to the extent reflected in Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any non-ordinary course net gain or loss resulting in such period from
Hedging Obligations and the application of IFRS 9 (Financial Instruments) and IAS 32 (Financial Instruments: Presentation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all unrealized gains and losses relating to financial instruments or liabilities to which fair market value
accounting is applied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any net gain or loss resulting in such period from currency translation gains or losses related to currency
remeasurements of Debt (including any net loss or gain resulting from Hedging Obligations for currency exchange risk).

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Notwithstanding the foregoing, for purposes of determining Consolidated EBITDA under this Agreement for any fiscal quarter ended prior to the Effective Date, Consolidated EBITDA for such fiscal quarters shall be as set forth below:

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| | | |
|:---|:---|:---|
| **Fiscal quarter ending on the date set forth below** | **Consolidated EBITDA** | **Consolidated EBITDA** |
|  March 31, 2020 | € | 4835264.67 |
|  June 30, 2020 | € | 6815539.47 |
|  September 30, 2020 | € | 6309228.32 |
|  December 31, 2020 | € | 5391631.49 |

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"<u>Consolidated Income Taxes</u>" means, with respect to any Person for any period, Taxes imposed upon such Person or other payments required to be made by such Person to any Governmental Authority, which Taxes or other payments are calculated by reference to the income or profits or capital of such Person or such Person and its Subsidiaries (to the extent such income or profits were included in computing Consolidated Net Income for such period), including state, franchise and similar Taxes and withholding Taxes regardless of whether such Taxes or payments are required to be remitted to any Governmental Authority. For purposes of this Agreement, Consolidated Income Taxes of the Borrower and its Subsidiaries for any fiscal quarter shall be calculated by the Borrower in good faith and in accordance with IFRS.

"<u>Consolidated Interest Expense</u>" means, for any period, the interest expense of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with IFRS, including the portion of any payments or accruals with respect to Capitalized Lease Obligations that are allocable to interest expense as reasonably determined by the Borrower in accordance with IFRS.

"<u>Consolidated Net Income</u>" means, for any period, the net income (loss) of any Person (the "<u>primary Person</u>") and its Subsidiaries determined on a consolidated basis in accordance with IFRS (before preferred stock dividends); <u>provided</u> that (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any net income (but not loss) of the Insurance Subsidiaries of the primary Person determined on a combined basis shall be excluded from such Consolidated Net Income; <u>provided</u> that, notwithstanding the foregoing, with respect to any such period, there shall be included in Consolidated Net Income any such amount determined on a combined basis that could have been distributed directly or indirectly by the Insurance Subsidiaries on a combined basis to the primary Person or any Credit Party as a dividend, distribution or return of capital or as a payment of interest or principal on any surplus note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any after-tax effect of gain or loss (less all fees and expenses relating thereto) realized upon sales or other dispositions of any assets of the primary Person or such Subsidiary of the primary Person (including pursuant to any sale and leaseback transaction) other than in the ordinary course of business shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any after-tax effect of income (loss) from the early extinguishment of Debt or early termination of Hedging Obligations or other derivative instruments shall be excluded from such Consolidated Net Income;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the after-tax effect of extraordinary gain or loss shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the after-tax effect of the cumulative effect of a change in accounting principles shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any after-tax effect of non-cash impairment charges recorded in connection with the application of IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), IFRS 38 (Intangible Assets), IAS 16 (Property Plant and Equipment) and IAS 36 (Impairment of Assets) shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any non-cash compensation expense realized for grants of performance shares, stock options or other rights to officers, directors and employees of the primary Person or any Subsidiary of the primary Person shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all impairment charges in connection with investments made by any Insurance Subsidiary of the primary Person in the ordinary course of business shall be excluded from such Consolidated Net Income; <u>provided</u> that the amount of any cash charges relating to such impairment charges shall not be excluded from Consolidated Net Income by operation of this clause (h) to the extent such cash charges reduce the Capital and Surplus of such Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) interest related realized net investment portfolio trading losses of any Insurance Subsidiary of the primary Person shall be excluded from Consolidated Net Income to the extent such losses do not reduce the Capital and Surplus of such Insurance Subsidiary.

"<u>Consolidated Net Worth</u>" means, as of any date of determination, the total common and preferred shareholders' equity of the Borrower and its Subsidiaries as of such date, determined on a consolidated basis in accordance with IFRS.

"<u>Consolidated Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Senior Debt</u>" means, as of any date of determination, (a) the aggregate outstanding principal amount of the Loans, plus (b) the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries (excluding Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

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"<u>Consolidated Senior Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Senior Debt to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Consolidated Senior Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries (excluding Operating Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Operating Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

"<u>Consolidated Total Assets</u>" means at any date the total assets of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt</u>" means, as of any date of determination, the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Debt to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Controlled Investment Affiliate</u>" means, with respect to any Person, any other Person (other than a natural person) established or organized for the purpose of making debt or equity investments in one or more companies and that is controlled or managed by, or under common control or management with, such Person or any of its Affiliates that are organized to invest in, hold or manage (directly or indirectly) such debt obligations or equity of portfolio companies (and that are not themselves portfolio companies).

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"<u>Covered Entity</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" has the meaning assigned to it in Section 10.21.

"<u>Credit Party</u>" means the Borrower and the Guarantors.

"<u>Cure Amounts</u>" has the meaning specified in Section 7.11(e).

"<u>Cure Right</u>" has the meaning specified in Section 7.11(e).

"<u>Debt</u>" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with IFRS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without duplication, all non-contingent obligations (and, for purposes of Section 7.01 and Section 8.01(e), all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under letters of credit (both standby and commercial), bankers' acceptances, bank guaranties and similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Hedging Obligations of such Person (<u>provided</u> that the amount of any Hedging Obligations of any Person that constitutes Debt of such Person at any time shall be equal to the Swap Termination Value of the Swap Contracts giving rise to such Hedging Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable and accrued expenses payable and accruals for payroll, in each case in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) (A) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person to the extent of the value of such property (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business) and (B) Debt of others secured by a Lien on, or payable out of the proceeds of production from, any property or asset of such Person, whether or not such obligation is assumed by such Person; <u>provided</u> that the amount of any such Debt of others that constitutes Debt of such Person solely by reason of this clause (v)(B) shall not for purposes of this Agreement exceed the greater of the fair market value of the properties or assets subject to such Lien and the amount of Debt secured thereby;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all Capitalized Lease Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all obligations of such Person to purchase securities or other property which arise out of or in connection with the sale of the same or substantially similar securities or property or any loans incurred by such Person which are principally secured by securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all obligations of such Person in respect of Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Debt of any other Person (including any partnership in which such Person is general partner and any unincorporated joint venture in which such Person is a joint venturer) to the extent such Person would by virtue of such Person's ownership interest in such other Person be liable therefor under applicable Law or any agreement or instrument to which it is a party, except to the extent the terms of such Debt and provide that such Person shall not be liable therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) all Guarantees of such Person in respect of any of the foregoing;

<u>provided</u> that (A) "Debt" shall exclude Debt of any direct or indirect parent company of the Borrower appearing upon the balance sheet of the Borrower solely by reason of push-down accounting under IFRS and (B) except for purposes of Section 7.01 and Section 8.01(e), "Debt" shall exclude an aggregate amount of obligations in respect of Hybrid Securities up to (but not exceeding) the Hybrid Securities Allowed Amount. The amount of any Limited Recourse Debt of any Person shall be equal to the lesser of (x) the aggregate principal amount of such Limited Recourse Debt for which such Person provides credit support constituting Debt and (y) the fair market value of any assets securing such Debt or to which such Debt is otherwise recourse. Notwithstanding any other provision contained herein, the amount of any Debt under IFRS with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of "Capitalized Lease Obligations".

"<u>Debt Fund Affiliate</u>" has the meaning specified in Section 10.06(b)(vii)(A).

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, rehabilitation, insolvency, reorganization, or similar debtor relief Laws of the United States, Cayman Islands, Bermuda, Malta, the United Kingdom or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"<u>Declined Proceeds</u>" has the meaning specified in Section 2.03(b)(iv).

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"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate equal to (a) the EURIBOR Rate, plus (b) the Applicable Rate, plus (c) 2.00% per annum; <u>provided</u> that, with respect to a Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan, plus 2.00% per annum.

"<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Defaulting Lender</u>" means at any time, subject to Section 2.11(b), (a) any Lender that has failed for two or more Business Days to comply with its obligations under this Agreement to make a Loan or make any other payment due hereunder (each, a "<u>funding obligation</u>"), unless such Lender has notified the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding have not been satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (b) any Lender that has notified the Administrative Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding obligations hereunder, unless such writing or statement states that such position is based on such Lender's good faith determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (c) any Lender that has, for four or more Business Days after written request of the Administrative Agent or the Borrower, failed to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u> that such Lender will cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent's and the Borrower's receipt of such written confirmation), (d) any Lender with respect to which a Lender Insolvency Event has occurred and is continuing with respect to such Lender or its Parent Company or (e) any Lender that has become the subject of a Bail-In Action; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any of clauses (a) through (d) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.11(b)) upon notification of such determination by the Administrative Agent to the Borrower and the Lenders.

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"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer, license, lease or other disposition of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"<u>Disqualified Equity Interest</u>" means any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Maturity Date, (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in clause (a) above, in each case at any time on or prior to the date that is 91 days after the Maturity Date, or (c) contains any repurchase obligation which may come into effect prior to payment in full of all Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof); <u>provided</u> that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the occurrence of a change in control or an asset sale occurring prior to the date that is 91 days after the Maturity Date shall not constitute Disqualified Equity Interests if such Equity Interest provides that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the repayment in full of the Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof). In addition, any Equity Interests held by any future, present or former employee, director, officer, manager or consultant (or their estates, spouses or former spouses) of the Borrower, any of the Subsidiaries or any direct or indirect parent company of the Borrower pursuant to any stockholders agreement, management equity plan or stock option plan or any other management or employee benefit plan or agreement shall not constitute Disqualified Equity Interests solely because it may be required to be repurchased by the Borrower or any Subsidiary following the termination of employment with the Borrower, any of the Subsidiaries or such parent company, or death or disability of, such employee, director, officer, manager or consultant, or in order to satisfy applicable regulatory or statutory obligations (so long as, in each case referred to in this sentence, any such requirement is made subject to compliance with this Agreement).

"<u>Early Opt-in Election</u>" means the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that euro-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 3.03(b), are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the EURIBOR Rate, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means January 29, 2021.

"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under Sections 10.06(b)(iii) and 10.06(b)(v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).

"<u>Embargoed Jurisdiction</u>" means any country or territory that is the subject of comprehensive Sanctions, as modified from time to time by relevant Governmental Authorities.

"<u>EMU Legislation</u>" means the legislative measures of the European Union relating to Economic and Monetary Union.

"<u>Environmental Laws</u>" means any and all Federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or binding governmental restrictions, including all common law, relating to pollution, the protection of the environment or the release or threatened release of any materials into the indoor or outdoor environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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"<u>Equity Interests</u>" means, as to any Person, all of the shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, limited partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, limited partnership interests, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that together with the Credit Parties is treated as a single employer under Section 414(b) or (c) of the Code (or Section 414(m) or (o) of the Code, solely for purposes of Sections 412 and 430 of the Code or Section 302 of ERISA).

"<u>ERISA Event</u>" means: (a) a Reportable Event with respect to a Pension Plan; (b) the failure by any Credit Party or any ERISA Affiliate to meet any applicable requirement under the Pension Funding Rules, whether or not waived, or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by any Credit Party or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or as a result of a cessation of operations with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA; (d) a complete or partial withdrawal by any Credit Party or any ERISA Affiliate from a Multiemployer Plan resulting in withdrawal liability to any Credit Party or any ERISA Affiliate (or receipt by any Credit Party or any ERISA Affiliate of any notice concerning the imposition of withdrawal liability on any Credit Party or any ERISA Affiliate with respect to any Multiemployer Plan) or a determination that a Multiemployer Plan is, or is expected to be, "insolvent" (within the meaning of Section 418E of the Code or Section 4245 of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) the determination that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (h) the imposition or incurrence of any material liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, by or upon any Credit Party or any ERISA Affiliate; (i) the engagement by any Credit Party or any ERISA Affiliate in a transaction that is determined to be subject to Section 4069 or Section 4212(c) of ERISA; (j) the imposition of a lien upon any Credit Party or any ERISA Affiliate pursuant to

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Section 430(k) of the Code or Section 303(k) of ERISA; or (k) with respect to any Foreign Plan (A) the failure to make or, if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by applicable Law or the terms of such plan, (B) the failure to register, or loss of good standing, with applicable regulatory authorities, of any Foreign Plan required to be registered or in good standing, or (C) the failure of any Foreign Plan to comply with any material provisions of applicable Law or with the material terms of such plan.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

"<u>EURIBOR Illegality Event</u>" has the meaning specified in Section 3.02.

"<u>EURIBOR Rate</u>" means, for any Interest Period as to any Loan, the EURIBOR Screen Rate determined as of approximately 11:00 a.m. (Brussels, Belgium time) two Business Days prior to the commencement of such Interest Period; <u>provided</u> that, if the EURIBOR Screen Rate shall not be available at such time for such Interest Period (an "<u>Impacted Interest Period</u>")<u> </u>then the EURIBOR Rate shall be the Interpolated Rate.

"<u>EURIBOR Screen Rate</u>" means, for any day and time, with respect to any Loan for any Interest Period, the euro interbank offered rate administered by the European Money Market Institute (or any other person which takes over the administration of that rate) for Euros for a period equal in length to such Interest Period as displayed on page EURIBOR01 of the Reuters screen (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); <u>provided</u> that, if the EURIBOR Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of calculating such rate.

"<u>Euro</u>" or "<u>€</u>" means the single currency of the Participating Member States introduced in accordance with the EMU Legislation.

"<u>Event of Default</u>" has the meaning specified in Section 8.01.

"<u>Excluded Subsidiary</u>" means (a) any Insurance Subsidiary, (b) any Subsidiary that is not a wholly-owned Subsidiary (disregarding any Disqualified Equity Interests), (c) any Securitization Subsidiary, (d) any Subsidiary that is not a Material Subsidiary, (e) any Subsidiary that is not permitted by Law or regulation to guarantee the Obligations or that would be required to obtain consent, approval, license or authorization of a Governmental Authority in order to guarantee the Obligations (unless such consent, approval, license or authorization has been received), (f) any Subsidiary that is prohibited from guaranteeing the Obligations by any Contractual Obligation in existence on the Effective Date (or, in the case of any newly acquired

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Subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof but only to the extent (i) such Contractual Obligation cannot be amended, modified or otherwise terminated unilaterally by such Subsidiary without triggering a default or breach thereunder and (ii) the Borrower has used commercially reasonable efforts to obtain consent from all required counterparties with respect to such contractual obligation to waive such prohibition) and (g) any Subsidiary to the extent that the burden, difficulty, consequence or cost of guaranteeing the Obligation by such Subsidiary outweighs the benefit afforded thereby as reasonably determined by the Administrative Agent and the Borrower.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal or Cayman Islands withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.01, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient's failure to comply with Section 3.01(g) and (d) any withholding Taxes imposed pursuant to FATCA.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any intergovernmental agreement with respect thereto and any fiscal or regulatory legislation, rules, guidance notes or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code, and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Financial Officer</u>" means, as to any Person, the chief financial officer, principal accounting officer, director, treasurer or controller of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, the chief financial officer, director, treasurer, assistant treasurer or controller of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person.

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"<u>Foreign Lender</u>" means a Lender that is not a U.S. Person.

"<u>Foreign Plan</u>" means each "employee benefit plan" (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to U.S. Law and is maintained or contributed to by any Credit Party or any ERISA Affiliate.

"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"<u>GAAP</u>" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands exempted company with registration number 345605, acting in its capacity as general partner of the Borrower.

"<u>Governmental Authority</u>" means any nation or government, or state or political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body (including any Applicable Insurance Regulatory Authority), court, administrative tribunal central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation payable or performable by another Person (the "<u>primary obligor</u>") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Debt or other obligation of the payment or performance of such Debt or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Debt or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien); <u>provided</u> that the

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term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "<u>Guarantee</u>" as a verb has a corresponding meaning.

"<u>Guarantor</u>" means each Subsidiary of the Borrower that executes and delivers the Guaranty or a joinder to the Guaranty pursuant to the terms hereof or the Guaranty, unless any such Subsidiary of the Borrower has ceased to be a Guarantor pursuant to the terms hereof or the Guaranty.

"<u>Guaranty</u>" means the amended and restated Guaranty made by the Guarantors in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit F.

"<u>Hedging Obligations</u>" of any Person means the obligations of such Person (contingent or otherwise) under any Swap Contract other than obligations (contingent or otherwise) existing or arising under any Swap Contract entered into in the ordinary course of business (a) to hedge or mitigate risks to which such Person is exposed in the conduct of its business or the management of its liabilities and not for speculative purposes, (b) which are income generation transactions made in accordance with the income generation transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time the applicable transaction is entered into or (c) to replicate assets that would be admissible on the balance sheet of any insurance company organized under the laws of one of the states of the United States of America in accordance with the replication synthetic asset transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time of the applicable transaction is entered into.

"<u>Hybrid Securities</u>" means, at any time, trust preferred securities, deferrable interest subordinated debt securities, mandatory convertible debt or other hybrid securities issued by the Borrower or any Subsidiary.

"<u>Hybrid Securities Allowed Amount</u>" means, at any date, the lesser of (a) the aggregate Hybrid Securities Amount for all Hybrid Securities and (b) 15.0% of Consolidated Adjusted Capitalization at such date.

"<u>Hybrid Securities Amount</u>" means, with respect to any Hybrid Security, the principal amount (which principal amount may be a portion of the aggregate principal amount) of such Hybrid Security that is accorded equity treatment by S&P at the time of issuance thereof.

"<u>IAS</u>" means International Accounting Standards as in effect from time to time.

"<u>IFRS</u>" means International Financial Reporting Standards as in effect from time to time.

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"<u>Impacted Interest Period</u>" has the meaning specified in the definition of "EURIBO Rate".

"<u>Incremental Agreement</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

"<u>Incremental Lenders</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in Section 10.04(b).

"<u>Ineligible Assignee</u>" means (a) those Persons identified in writing by the Initial Borrower to the Arrangers prior to January 4, 2021 (or to any affiliates of such Persons that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower) or (b) to any competitors of the Borrower or any of the Borrower's Subsidiaries identified to the Administrative Agent in writing from time to time (and affiliates of such entities that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower); <u>provided</u> that no such identification pursuant to clauses (a) and (b) shall apply (i) retroactively to disqualify any Person that has previously acquired by an Assignment and Assumption or participation an interest in the Loans or Commitments with respect to amounts previously acquired, entered into a trade for the foregoing or became a competitor of the Borrower before such person is added to the list of "Ineligible Assignee" and (ii) until the date that is two Business Days following the delivery of the applicable written identification of such Person from the Borrower to the Administrative Agent.

"<u>Ineligible Institution List</u>" has the meaning specified in Section 10.06(f).

"<u>Information</u>" has the meaning specified in Section 10.07.

"<u>Initial Borrower</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Initial Loan</u>" has the meaning specified in Section 2.01(a).

"<u>Initial Loan Borrowing Date</u>" means the date on which the Initial Loans are made.

"<u>Insurance Business</u>" means one or more aspects of the business of selling, issuing or underwriting insurance or reinsurance.

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"<u>Insurance Subsidiary</u>" means any (a) Regulated Insurance Company and (b) direct or indirect Subsidiary of such a Subsidiary.

"<u>Interest Coverage Ratio</u>" means, with respect to any Person for any period, the ratio of (a) Consolidated Adjusted EBITDA of such Person for such period to (b) the Consolidated Interest Expense (excluding in the determination thereof (i) any write-offs of capitalized fees under agreements governing Debt and all amendments thereto, (ii) all non-cash charges for the amortization of deferred financing fees and debt issuance costs, (iii) any interest on Tax reserves to the extent the Borrower has elected to treat such interest as an interest expense under IFRS 37 (Provisions and Contingent Liabilities) since its adoption, (iv) Transaction Costs and any annual administrative or other agency fees and (v) any discount, yield and/or interest component in respect of any Qualified Securitization Facility) of such Person for such period.

"<u>Interest Payment Date</u>" means, as to any Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; <u>provided</u> that, if any Interest Period for a Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates.

"<u>Interest Period</u>" means as to each Loan, the period commencing on the date such Loan is disbursed or continued and ending on the date one, three or six months (or twelve months if consented to by all of the Lenders) thereafter, as selected by the Borrower in its Loan Notice; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period pertaining to a Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period shall extend beyond the Maturity Date.

"<u>Interpolated Rate</u>" means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the EURIBOR Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the EURIBOR Screen Rate for the longest period (for which the EURIBOR Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the EURIBOR Screen Rate for the shortest period (for which that EURIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case at such time.

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"<u>Investment</u>" means (i) any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase (including purchases financed with equity) of any Equity Interests, bonds, notes, obligations, debentures or other debt securities of, any Person and (ii) investments that are required to be classified on the balance sheet of such person in accordance with IFRS in the same manner as the other investments included in clause (i) of this definition to the extent such transactions involve the transfer of cash or other property.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Judgment Currency</u>" has the meaning specified in Section 10.19(a).

"<u>Judgment Currency Conversion Date</u>" has the meaning specified in Section 10.19(a).

"<u>Laws</u>" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, legally enforceable guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case having the force of law.

"<u>LCT Election</u>" has the meaning specified in Section 1.11(a).

"<u>LCT Test Date</u>" has the meaning specified in Section 1.11(a).

"<u>Lender</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Lender Insolvency Event</u>" means that (a) a Lender or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors or (b) such Lender or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment.

"<u>Lending Office</u>" means, as to any Lender, the office or offices of such Lender described as such in such Lender's Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent.

"<u>License</u>" means any license, certificate of authenticity, permit or other authorization which is required to be obtained from a Governmental Authority in connection with the operation, ownership or transaction of insurance business.

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"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, assignment by way of security, deposit arrangement, encumbrance, lien (statutory or other), charge or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever in the nature of a security interest (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Limited Condition Investment</u>" means any investment, including any acquisition, by any Credit Party or one or more Subsidiaries whose consummation is not conditioned on the availability of, or on obtaining, third-party financing.

"<u>Limited Recourse Debt</u>" means with respect to any Person, Debt of such Person as to which either (a) the maximum aggregate amount of such Person's liability is limited to an amount less than the amount of such Debt or (b) as to which the recourse of the creditor holding such Debt for payment of such Debt is limited to the assets securing such Debt.

"<u>Loan Documents</u>" means this Agreement, each Note and the Guaranty.

"<u>Loan Notice</u>" means a notice of (a) a Borrowing or (b) a continuation of Loans pursuant to Section 2.02(a), which shall be substantially in the form of Exhibit A.

"<u>Loans</u>" means, collectively, the Initial Loans and the New Loans (if any).

"<u>Management Agreement</u>" means the Management Services Agreement, dated as of February 19, 2019, between the Initial Borrower and Altamont Capital Management, LLC, a Delaware limited liability company.

"<u>Margin Stock</u>" means margin stock within the meaning of Regulation T, Regulation U or Regulation X.

"<u>Market Disruption Event</u>" has the meaning specified in Section 3.03(a).

"<u>Master Agreement</u>" means any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement or any other master agreement, together with any related schedules.

"<u>Material Adverse Effect</u>" means: (a) a material adverse effect on the operations, business, properties or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Credit Parties, taken as a whole, to perform their obligations under the Loan Documents; (c) a material adverse effect on the legality, validity, binding effect or enforceability against the Credit Parties of any Loan Document to which it is a party; or (d) a material adverse effect on the rights, remedies and benefits available to, or conferred upon, the Administrative Agent or any Lender under any Loan Documents, taken as a whole.

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"<u>Material Insurance Subsidiary</u>" means any Insurance Subsidiary (whether existing on or acquired or formed after the Effective Date) having Capital and Surplus, calculated excluding the value of its investment in any other Insurance Subsidiary, equal to 10% or more of the sum total of the Capital and Surplus of all of the Insurance Subsidiaries, with the Capital and Surplus of each Insurance Subsidiary being added to such sum total, but excluding the value of its investment in any other Insurance Subsidiary.

"<u>Material Subsidiary</u>" means (a) any Material Insurance Subsidiary and (b) any other Subsidiary of the Borrower (i) whose total assets (determined on a consolidated basis in accordance with IFRS, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable) or (ii) whose revenues (determined on a consolidated basis in accordance with IFRS, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 10% of the consolidated revenues of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable); <u>provided</u> that the aggregate amount of total assets of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the aggregate amount of revenues of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable).

"<u>Maturity Date</u>" means January 29, 2024; <u>provided</u> that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

"<u>Maximum Rate</u>" has the meaning specified in Section 10.09.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Multiemployer Plan</u>" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Credit Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

"<u>Multiple Employer Plan</u>" means a Plan with respect to which any Credit Party or any ERISA Affiliate is a contributing sponsor which has two or more contributing sponsors (including the Borrower or ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

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"<u>NAIC</u>" means the National Association of Insurance Commissioners.

"<u>Net Proceeds</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the aggregate amount of cash and cash equivalents received by the Borrower or any Subsidiary in respect of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as the case may be, minus the sum of (i) all costs and expenses (including legal fees, notarial fees, accountants' fees, investment banking fees, survey costs and title insurance premiums) paid by the Borrower or any of its Subsidiaries to third parties, (ii) amounts applied to the repayment of Debt (other than the Loans) secured by a Lien expressly permitted hereunder on any asset that is the subject of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, (iii) costs of discontinuance (including any reasonable severance payments), (iv) Taxes other than income taxes and other customary fees and expenses incurred in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction and required to be paid in cash or deducted from the proceeds of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto, (v) the estimated income tax or other Taxes to the extent payable by the Person selling or Disposing of such asset required to be paid in cash in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto (including distributions permitted to be made under Section 7.06 on account of Taxes payable by an Affiliate of such Person in connection therewith), (vi) purchase price adjustments reasonably expected to be payable in connection therewith and (vii) the aggregate amount of reserves taken by the Borrower or any of its Subsidiaries in accordance with IFRS against indemnification obligations incurred in connection therewith (without duplication of any taxes deducted pursuant to clause (iv) above) so long as, if any such amount ceases to be payable, it shall then become "Net Proceeds" on the date of such cessation, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any issuance of Debt by the Borrower or any of its Subsidiaries, the proceeds thereof in the form of cash and cash equivalents (including any cash and cash equivalents received by way of deferred payment of principal pursuant to a note), minus the costs and expenses paid or payable by the Borrower or any of its Subsidiaries to third parties in connection therewith (including legal fees, notarial fees, accountants' fees, investment banking fees, underwriting discounts and commissions, taxes and other customary fees and expenses incurred in connection therewith) and required to be paid in cash or deducted from the proceeds of such issuance.

"<u>New Borrower</u>" means Accelerant Issuer Holdings LP, a Cayman Islands exempted limited partnership with registration number 109998.

"<u>New Commitment</u>" has the meaning specified in Section 2.12(a)(vi).

"<u>New Loan</u>" has the meaning specified in Section 2.12(a).

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"<u>New Loan Borrowing Date</u>" has the meaning specified in Section 2.12(a).

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 10.01 and (b) has been approved by the Required Lenders.

"<u>Non-Defaulting Lender</u>" means, at any time, a Lender that is not a Defaulting Lender.

"<u>Non-OC Asset Sale</u>" means any Disposition or transfer, or series of related Dispositions or transfers, of insurance policies and related assets and liabilities (other than any such transfer or Disposition constituting Non-OC Reinsurance Transaction) involving assets with a value in excess of 2.5% of Consolidated Total Assets as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Non-OC Reinsurance Transaction</u>" means any reinsurance transaction, or series of related reinsurance transactions, entered into by the Borrower or any of its Subsidiaries after the Effective Date, pursuant to which either (a) the ceding commission payable to the Borrower or any of its Subsidiaries as consideration thereof exceeds the greater of (x) €10,000,000 and (y) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, or (b) the insurance policies and related assets subject thereto have an aggregate value in excess 2.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii).

"<u>Non-Recourse Debt</u>" means with respect to any Person, Debt if, but only if: (a) such Person (i) provides no credit support of any kind for such Debt (including any undertaking, agreement or instrument that would constitute Debt) and (ii) is not directly or indirectly liable as a guarantor or otherwise for such Debt; and (b) no default with respect to such Debt would permit upon notice, lapse of time or both any holder of any other Debt (other than the Loans) of such Person to declare a default on such other Debt or cause the payment thereof to be accelerated or payable prior to its stated maturity.

"<u>Note</u>" means a promissory note made by the Borrower in favor of a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B.

"<u>Obligation Currency</u>" has the meaning specified in Section 10.19(a).

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under any Loan Document, including with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue thereon

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after the commencement by or against the Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Borrower under any Loan Document.

"<u>Operating Debt</u>" means, as to any Person at a particular time, without duplication, all of the following to the extent constituting Debt:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent that a reimbursement obligation in respect thereof is not yet due, obligations under letters of credit, bank guarantees and similar instruments (A) issued for the account of an Insurance Subsidiary to support obligations under Reinsurance Agreements or Retrocession Agreements or (B) of any Person issued in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) surplus notes and other Debt of such Person incurred in the ordinary course of business to the extent such Debt is of the type customarily excluded from financial leverage by both S&P and Moody's in their evaluation of such Person or similarly positioned person and is of the type treated as a hybrid capital instrument by both S&P and Moody's in their evaluation of such Person or a similarly situated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations with respect to Policies, Reinsurance Agreements and Retrocession Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obligations under Permitted Repo and Securities Lending Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) unspent cash deposits or securities held in escrow by or in favor of such Person, or in a segregated deposit or securities account, as applicable, controlled by such Person, in each case in the ordinary course of business to secure the performance obligations of, or damages owing from, one or more third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Debt under any overdraft or other cash management facilities so long as any such Debt is repaid in full no later than five (5) Business Days following the date on which it was incurred or, in the case of such Debt in respect of credit or purchase cards, within 60 days of its incurrence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in connection with the purchase by the Borrower or any Subsidiary of any business, any post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such acquired business after the closing of such purchase, but only so long as:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) at the time of such closing, the amount of such payment is not determinable (it being understood and agreed that any variable earn-out or similar variable payment that depends solely on the performance of such business after the closing is not determinable at the time of such closing); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) after such payment thereafter becomes fixed and determined, it is paid in a timely manner.

"<u>Operating Lease</u>" means, as applied to any Person, a lease (including leases which may be terminated by the lessee at any time) of any property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease.

"<u>Organizational Documents</u>" of a Person means: (a) if such Person is a corporation or exempted company, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) of such Person; (b) if such Person is a limited liability company, the certificate or articles of formation, registration or organization and operating agreement of such Person; and (c) if such Person is a partnership, exempted limited partnership, joint venture, trust or other form of business entity, the partnership, exempted limited partnership, joint venture or other applicable agreement of formation, registration or organization of such Person and any agreement, certificate, instrument, filing or notice with respect thereto filed in connection with such Person's formation, registration or organization with the applicable Governmental Authority in the jurisdiction of such Person's formation, registration or organization and, if applicable, any certificate or articles of formation, registration or organization of such Person.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 3.06).

"<u>Outstanding Receivables Amount</u>" means, at any time, the aggregate outstanding amount of accounts receivable that have been transferred or pledged by the Borrower and its Subsidiaries at such time and that have a scheduled payment due date that is after such time.

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"<u>Parent Company</u>" means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

"<u>Participating Member State</u>" means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"<u>Participant</u>" has the meaning specified in Section 10.06(d).

"<u>Participant Register</u>" has the meaning specified in Section 10.06(d).

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

"<u>Pension Funding Rules</u>" means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"<u>Pension Plan</u>" means any "employee pension benefit plan," within the meaning of Section 3(2) of ERISA (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by any Credit Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

"<u>Permitted Repo and Securities Lending Agreements</u>" means any Debt of the type described in clause (vii) of the definition thereof (a) incurred in the ordinary course of business by a Regulated Insurance Company to fund its short term liquidity requirements, (b) incurred in the ordinary course of business by a Regulated Insurance Company pursuant to an agreement under which assets that are ineligible to be pledged to secure Debt or a Swap Contract permitted hereunder are transferred to a third-party in exchange for either (i) assets or (ii) funds, the proceeds of which are used to acquire assets, that in either case are eligible to be pledged to secure such Debt or Swap Contract, or (c) incurred in the ordinary course of business by a Regulated Insurance Company to enhance yield on a portfolio of securities.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, exempted company, partnership, exempted limited partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any "employee benefit plan," within the meaning of Section 3(3) of ERISA, (other than a Multiemployer Plan) that is subject to ERISA, maintained for employees of the Borrower or any Subsidiary, or any such plan to which the Borrower or such Subsidiary is required to contribute on behalf of any of its employees or with respect to which the Borrower or such Subsidiary has any liability.

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"<u>Plan of Reorganization</u>" has the meaning specified in Section 10.06(f).

"<u>Policies</u>" means all insurance policies and assumption certificates issued or to be issued (or filed pending current review by applicable Governmental Authorities) by any Regulated Insurance Company.

"<u>Principal Payment Date</u>" means the last Business Day of each fiscal quarter of the Borrower, commencing with the first full fiscal quarter of the Borrower ending after the Effective Date.

"<u>Pro Forma Commission Adjustment</u>" means, for any period and with respect to any Person, the difference, which may be a positive or negative amount, between (i) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority) that is newly executed during such period and (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has increased during such period, in each case the amount of commission of such Person, to the extent not included in determining Consolidated EBITDA for such period, calculated to include such newly executed commission agreement and to give effect to such modification to an existing commission agreement, as applicable, as though such commission agreement or such modification, as applicable, had been executed on the first day of such period and (ii) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority) that expires or is otherwise terminated during such period, (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has decreased during such period and (z) each commission agreement subject to any Qualified Securitization Facility, in each case, the amount of commission of such Person, to the extent included in determining Consolidated EBITDA for such period, calculated to exclude such expired or otherwise terminated commission agreement, to give effect to such modification to an existing commission agreement, and to exclude such commission agreement subject to any Qualified Securitization Facility, as applicable, as though such commission agreement had expired or otherwise terminated, such modification had been executed or such commission agreement had become subject to any Qualified Securitization Facility, as applicable, on the first day of such period; <u>provided</u> that "Pro Forma Commission Adjustment" shall not include the amount of commissions actually received by such Person during such period.

"<u>Pro Forma Run-Rate Commission Adjustment</u>" means, for any period and without duplication, the difference, which may a be positive or negative amount, between (a) the amount of commissions of any Person that is not a Regulated Insurance Company under each relevant commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority), recalculated giving effect to the Run-Rate Gross Commissions for such period, and (b) the amount of commission actually received by such Person that is included in the calculation of Consolidated EBITDA for such period.

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"<u>Pro Forma Run-Rate Premium Adjustment</u>" means, for any period and without duplication, the difference, which may be a positive or negative amount, between (a) the amount of premiums of any Person that is a Regulated Insurance Company under each relevant agreement, recalculated giving effect to the Run-Rate Gross Written Premiums for such period and (b) the amount of premium received by such Person included in the calculation of Consolidated EBITDA for such period.

"<u>Proceeding</u>" has the meaning specified in Section 10.04(b).

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Lender</u>" has the meaning specified in Section 6.02.

"<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

"<u>QFC Credit Support</u>" has the meaning assigned to it in Section 10.21.

"<u>Qualified IPO</u>" means the initial underwritten public offering of common Equity Interests of the Borrower pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act of 1933, as amended.

"<u>Qualified Securitization Facility</u>" means any Securitization Facility or Receivables Financing Transaction, so long as: (a) all transfers or sales of any Securitization Assets in connection with any such Securitization Facility or Receivables Financing Transaction to any Person that is not a Subsidiary shall be for fair market value (as determined in good faith by the Borrower) and (b) the Outstanding Receivables Amount under all Qualified Securitization Facilities shall not at any time exceed €10,000,000.

"<u>Receivables Financing Transaction</u>" means any transaction or series of transactions entered into by the Borrower or any Subsidiary pursuant to which such party consummates a "true sale" of its receivables constituting commissions due under one or more commission agreements to a non-related third party on market terms as determined in good faith by the Borrower; <u>provided</u> that such Receivables Financing Transaction is (a) non-recourse to the Borrower and its Subsidiaries and their assets, other than any recourse solely attributable to a breach by the Borrower or any Subsidiary of representations, warranties and obligations that are customarily made by a seller in connection with a "true sale" of receivables on a non-recourse basis and (b) consummated pursuant to customary contracts, arrangements or agreements entered into with respect to the "true sale" of receivables on market terms for similar transactions.

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"<u>Recipient</u>" means the Administrative Agent or any Lender.

"<u>Register</u>" has the meaning specified in Section 10.06(c).

"<u>Regulated Insurance Company</u>" means any Subsidiary of the Borrower, whether now owned or hereafter formed or acquired, that is authorized or admitted to carry on or transact Insurance Business in any jurisdiction and is regulated by any Applicable Insurance Regulatory Authority.

"<u>Regulation T</u>" means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation U</u>" means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation X</u>" means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Reinsurance Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers, as reinsurers, assume liabilities under Policies issued by another insurance company or companies.

"<u>Reinsurance Threshold</u>" means an aggregate amount equal to the greater of (a) €10,000,000 and (b) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, attorneys-in-fact, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Removal Effective Date</u>" has the meaning specified in Section 9.06(b).

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30-day notice period has been waived.

"<u>Required Lenders</u>" means, at any time, Lenders having principal amount of Loans outstanding and unused Commitments representing more than 50% of the sum of the aggregate principal amount outstanding of the Loans and unused Commitments of all Lenders at such time; <u>provided</u> that any time there are two (2) or more Unaffiliated Lenders, the Required Lenders shall be comprised of at least two (2) Unaffiliated Lenders. The Commitment and any Loans outstanding of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

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"<u>Required Prepayment Amount</u>" means, in connection with the receipt by the Borrower or its Subsidiaries of Net Proceeds pursuant to an Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, a percentage of such Net Proceeds equal to (a) subject to clause (b) of this definition, 100%, or (b) if, as of the last day of the most recent fiscal period of the Borrower for which financial statements were furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, ended prior to the date such Net Proceeds are received, the Consolidated Senior Debt to Capitalization Ratio, on a pro forma basis after giving effect to any mandatory prepayment required pursuant to Section 2.03(b)(i), is (1) greater than or equal to 15%, but less than 20%, 50.0% or (2) less than 15%, 0%.

"<u>Resignation Effective Date</u>" has the meaning specified in Section 9.06(a).

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" of any Person means any executive officer, president, executive vice president, director, a Financial Officer or any other officer of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, any executive officer, president, executive vice president, director, a Financial Officer or any other officer of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person in respect of this Agreement. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of General Partner, acting in its capacity as general partner of the Borrower.

"<u>Restricted Payment</u>" means (a) any dividend or other distribution (whether in cash, securities or other property) by a Person or any of its Subsidiaries with respect to their respective Equity Interests, or (b) any payment (whether in cash, securities or other property) by a Person or any of its Subsidiaries, including any sinking fund or similar deposit, (i) on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any of their respective Equity Interests, or (ii) on account of any return of capital to such Person's shareholders, partners or members with respect to their respective Equity Interests (or the equivalent Persons thereof).

"<u>Retrocession Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers or reinsurers, as retrocessionaires, assume liabilities of reinsurers under a Reinsurance Agreement or other retrocessionaires under another Retrocession Agreement.

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"<u>Run-Rate Gross Commissions</u>" means, with respect to any Person for any period, the pro forma amount of gross commissions due to such Person under any duly executed contract.

"<u>Run-Rate Gross Written Premium</u>" means, with respect to any Person for any period, the pro forma amount of gross written premium due to such Person under any duly executed contract (including, without limitation, any binder agreement or sub-agent agreement).

"<u>S&P</u>" means Standard & Poor's Financial Services Inc., a Standard & Poor's Financial Services LLC business.

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by, or otherwise the subject of any sanctions administered or enforced by, the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, Her Majesty's Treasury of the United Kingdom, the European Union, any European Union member state, the Canadian government, or any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries, (b) any Person located in, resident in or organized under the laws of an Embargoed Jurisdiction, (c) any government that is itself the subject or target of Sanctions or (d) any Person owned or controlled by a Person described in the foregoing clauses (a), (b) or (c).

"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or the Canadian government, (b) the United Nations Security Council, (c) the European Union or Her Majesty's Treasury of the United Kingdom (including any sanctions legislation extended to the Cayman Islands pursuant to any Order in Council of Her Majesty's Privy Council in the United Kingdom), (d) the Cayman Islands Monetary Authority or (e) any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries.

"<u>SAP</u>" means the accounting procedures and practices prescribed or permitted by the Applicable Insurance Regulatory Authority or the NAIC.

"<u>SEC</u>" means the Securities and Exchange Commission.

"<u>Securitization Assets</u>" means (a) accounts receivable constituting commissions due under one or more commission agreements and other assets related thereto subject to a Qualified Securitization Facility and the proceeds thereof and (b) contract rights, lockbox accounts and records with respect to such accounts receivable and any other assets customarily transferred together with accounts receivable in an accounts receivable securitization financing.

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"<u>Securitization Facility</u>" means any transaction or series of securitization financings that may be entered into by the Borrower or any Subsidiary pursuant to which the Borrower or any such Subsidiary may sell, convey or otherwise transfer, or may grant a security interest in, Securitization Assets to either (a) a Person that is not the Borrower or a Subsidiary or (b) a Securitization Subsidiary that in turn sells such Securitization Assets to a Person that is not the Borrower or a Subsidiary, or may grant a security interest in, any Securitization Assets of the Borrower or any of its Subsidiaries that are subject to such Securitization Facility.

"<u>Securitization Subsidiary</u>" means any Subsidiary formed for the purpose of, and that solely engages only in one or more Qualified Securitization Facilities and other activities reasonably related thereto.

"<u>Specified Transaction</u>" means: (a) solely for the purposes of determining the applicable cash balance, any contribution of capital, including as a result of a Qualified IPO, to the Borrower, in each case, in connection with an acquisition or Investment; (b) any designation of operations or assets of the Borrower or a Subsidiary as discontinued operations (except that operations or assets of the Borrower or a Subsidiary that are held for sale or are subject to an agreement to dispose of such operations or assets may, at the Borrower's election (in its sole discretion), be designated as discontinued operations under this clause (b) only when and to the extent such operations are actually disposed of); (c) any acquisition, investment or other similar transaction, in each case, that results in a Person becoming a Subsidiary; (d) any purchase or other acquisition of a business of any Person, of assets constituting a business unit, line of business or division of any Person; (e) any Non-OC Asset Sale or Casualty Event (i) that results in a Subsidiary ceasing to be a Subsidiary of the Borrower or (ii) of a business, business unit, line of business or division of the Borrower or a Subsidiary, in each case whether by merger, amalgamation, consolidation or otherwise; (f) any operational changes identified by the Borrower that have been made by the Borrower or any Subsidiary during the applicable period; (g) any borrowing of New Loans; or (h) any Restricted Payment or other transaction that by the terms of this Agreement requires a financial ratio to be calculated on a pro forma basis.

"<u>Statutory Reserve Rate</u>" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Federal Reserve Board to which the Administrative Agent is subject with respect to the EURIBOR Rate, for eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D). Such reserve percentage shall include those imposed pursuant to Regulation D. Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

"<u>Statutory Statement</u>" means a statement of the condition and affairs of the Borrower or an Insurance Subsidiary, as applicable, in each case prepared in accordance with SAP, and filed with the Applicable Insurance Regulatory Authority.

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"<u>Subsidiary</u>" of a Person means any corporation, exempted company, partnership, exempted limited partnership, limited liability company, association, joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency, including the power to cause the termination, removal or replacement of a manager or general partner, whether or not such contingency has occurred) are at the time beneficially owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

"<u>Supported QFC</u>" has the meaning assigned to it in Section 10.21.

"<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, credit derivatives, total return swaps, futures, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or other derivatives or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any Master Agreement, including any such obligations or liabilities under any Master Agreement.

"<u>Swap Termination Value</u>" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender), in each case expressed as a negative number to the extent the termination value is payable to or the mark-to-market value is in favor of the Borrower or Subsidiary or as a positive number to the extent the termination value is payable to or the market-to-market value is in favor of the applicable counterparty to the Borrower or Subsidiary under such Swap Contract.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

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"<u>Threshold Amount</u>" means €3,000,000.

"<u>Trade Date</u>" means, as to a particular assignment or participation of an interest hereunder to a Person, the date on which the applicable Lender enters into a binding agreement to sell and assign or participate all or a portion of its rights and obligations under this Agreement to such Person.

"<u>Transaction Costs</u>" means all costs, fees and expenses incurred in connection with this Agreement, the credit facility established hereby and the other Transactions.

"<u>Transactions</u>" means the (a) execution, delivery and performance by each Credit Party of the Loan Documents to which it is to be a party, (b) borrowing of Loans hereunder on the Initial Loan Borrowing Date and (c) payment of the Transaction Costs.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unaffiliated Lenders</u>" means Lenders who are not Affiliates or Approved Funds of one another.

"<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

"<u>Unaudited Financial Statements</u>" means the unaudited consolidated balance sheets of the Accelerant Holdings and its Subsidiaries, and the related statements of income, stockholder's equity and cash flows of the Accelerant Holdings and its Subsidiaries, for each interim quarterly period since the date of the Audited Financial Statements which has ended at least 65 days prior to the Effective Date.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

"<u>Unsubordinated Debt</u>" means Debt of a Subsidiary of the Borrower owed to a Person other than the Borrower or any of its Subsidiaries that is not expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent not to be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing), in each case excluding (i) Obligations and any Guarantees of any Obligations, and (ii) Operating Debt other than Operating Debt incurred under clause (i)(B) of the definition thereof.

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"<u>U.S. Person</u>" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" has the meaning assigned to it in Section 10.21.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in Section 3.01(g)(ii)(B)(3).

"<u>Weighted Average Life to Maturity</u>" means, when applied to any Debt at any date, the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then-outstanding principal amount of such Debt.

"<u>wholly-owned</u>" means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (i) director's qualifying shares and (ii) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly-owned Subsidiaries of such Person.

"<u>Withholding Agent</u>" means the Borrower and the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

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**Section 1.02 <u>Other Interpretive Provisions</u>**. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "<u>include</u>", "<u>includes</u>" and "<u>including</u>" shall be deemed to be followed by the phrase "<u>without limitation</u>". The word "or" is always used inclusively herein (for example, the phrase "A or B" means "A or B or both", not "either A or B but not both") when not used in an "either . . . or" construction. The word "<u>will</u>" shall be construed to have the same meaning and effect as the word "<u>shall</u>". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organizational Document and the Loan Documents) shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns and, in the case of any Governmental Authority, any other Governmental Authority succeeding to its functions, (iii) the words "<u>hereto</u>", "<u>herein</u>", "<u>hereof</u>" and "<u>hereunder</u>", and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time and (vi) the words "<u>asset</u>" and "<u>property</u>" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the computation of periods of time from a specified date to a later specified date, the word "<u>from</u>" means "<u>from and including</u>"; the words "<u>to</u>" and "<u>until</u>" each mean "<u>to but excluding</u>"; and the word "<u>through</u>" means "<u>to and including</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, in no event shall the Guarantors be liable for any obligations of the Borrower under this Agreement or any other Loan Document except as set forth in the Guaranty.

**Section 1.03 <u>Accounting Terms</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Generally</u>*. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with IFRS, applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Debt of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of IFRS 9 (Financial Instruments) on financial liabilities shall be disregarded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Changes in IFRS or the NAIC Rules</u>*. If at any time any change in IFRS or the NAIC rules, as applicable (each change, an "<u>Accounting Change</u>") would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such Accounting Change (subject to the approval of the Required Lenders); <u>provided</u> that until so amended, (i) such ratio or requirement shall continue to be computed in accordance with IFRS or the NAIC rules, as applicable, without giving effect to such Accounting Change and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such Accounting Change.

**Section 1.04 <u>Rounding</u>**. Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

**Section 1.05 <u>Times of Day</u>**. Unless otherwise specified, all references herein to times of day shall be references to Central time (daylight or standard, as applicable).

**Section 1.06 <u>Timing of Payment or Performance</u>**. When payment of any obligation is stated to be due or the performance of any covenant, duty or obligation is required on a day which is not a Business Day, the date of such payment (other than as described in the definition of "Interest Period") or performance shall extend to the immediately succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.

**Section 1.07 <u>Consolidated Financial Statements; GAAP</u>**. At any time after the Effective Date, the Borrower may elect to deliver a balance sheet of the Borrower and its Subsidiaries on a consolidated basis and the related consolidated statements of income, equity and cash flows, in each case, prepared in accordance with GAAP accounting principles for the periods, and delivered at the times, required in Section 6.01(i) and Section 6.01(ii); <u>provided</u> any such election, once made, shall be irrevocable and the Borrower shall deliver such financial statements for all subsequent periods as contemplated by this Section; <u>provided</u> <u>further</u> that references herein to IFRS and IFRS concepts shall thereafter be construed to mean GAAP and corresponding GAAP concepts. To the extent such consolidated financial statements of the Borrower and its Subsidiaries otherwise comply with the requirements of Section 6.01(i) and Section 6.01(ii), delivery of such

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consolidated financial statements (together with a completed Compliance Certificate signed by a Responsible Officer of the Borrower satisfying the requirements of Section 6.02(i)) shall satisfy the requirements of Section 6.01(i) and Section 6.01(ii) in lieu of delivery of (a) the consolidated financial statements of the Borrower and its Subsidiaries referenced therein and (b) the Compliance Certificate required pursuant to Section 6.02(i). The Borrower shall give 30 days' prior notice to the Administrative Agent of any such election made in accordance with this Section 1.07.

**Section 1.08 <u>Divisions</u>**. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.

**Section 1.09 <u>[Reserved]</u>**.

**Section 1.10 <u>Pro Forma Effect</u>**. Whenever pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by a Financial Officer of the Borrower and may include the amount of "run rate" cost savings, operating expense reductions and synergies projected by the Borrower in good faith to result from, or relating to, any Specified Transaction (including acquisitions and investments occurring prior to the Effective Date) which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary to realize such cost savings, operating expense reductions and synergies are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) (calculated on a pro forma basis as though such cost savings, operating expense reductions and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period and "run rate" means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Effective Date, net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent applicable period in which the effects thereof are expected to be realized) relating to such Specified Transaction; <u>provided</u> that (a) such amounts are reasonably identifiable, (b) such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) no later than twenty-four (24) months after the date of such Specified Transaction (or actions undertaken or implemented prior to the consummation of such Specified Transaction) and (c) no amounts shall be added to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period; <u>provided</u> that such "run-rate" cost savings, synergies and operating expense reductions added back

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pursuant to this Section 1.10 in any applicable period, when aggregated with the aggregate amount of any increase for such period in Consolidated EBITDA pursuant to clauses (a)(7) and (a)(8) of the definition of "Consolidated EBITDA", in each case with respect to such period, shall not exceed in the aggregate 20% of Consolidated EBITDA for such period (as calculated prior to giving effect to any such adjustments).

**Section 1.11 <u>Limited Condition Investments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, calculating any applicable ratio in connection with determining whether (i) the incurrence of any Debt (including in reliance on Section 7.01(xi)), the creation of any Lien (including for purposes of the last proviso to Section 7.01), the making of any Investment (including as permitted by Section 7.03) is permitted or borrowing of a New Loan under Section 2.12, or (ii) the incurrence of any Debt in reliance on Section 7.01(xi) requires prepayment of the Loans pursuant to Section 2.03(b)(ii) or Section 7.01(xi), in each case in connection with a Limited Condition Investment, the date of determination of such ratio or other provisions shall, at the option of the Borrower (the Borrower's election to exercise such option in connection with any Limited Condition Investment, an "<u>LCT Election</u>," which LCT Election may be in respect of one or more of clauses (i) and (ii) above) be deemed to be the date the definitive agreements (or other relevant definitive documentation) for such Limited Condition Investment are entered into (each a "<u>LCT Test Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If on a pro forma basis, after giving effect to such Limited Condition Investment and the other transactions to be entered into in connection therewith (including any incurrence or issuance of Debt and the use of proceeds thereof), if such Limited Condition Investment had occurred at the beginning of the most recent fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, ending prior to the applicable LCT Test Date, the Borrower could have (i) incurred such Debt, created such Liens, made any Investment, borrowed a New Loan or otherwise taken such action and/or (ii) incurred such Debt without having to prepay the Loans pursuant to Section 2.03(b)(ii) and/or Section 7.01(xi), in each case on such LCT Test Date in compliance with the applicable ratios or other provisions, then the Borrower shall be deemed to have complied with such ratios or other provisions and the Borrower will not be required to repay the Loans as provided in Section 2.03(b)(ii) or 7.01(xi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, if, following the LCT Test Date, any of such ratios are exceeded or breached as a result of fluctuations in such ratio (including due to fluctuations in any of the components of such ratio) at or prior to the consummation of the relevant Limited Condition Investment, such ratios will not be deemed to have been exceeded or failed to have been satisfied as a result of such fluctuations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Borrower has made an LCT Election for any Limited Condition Investment, then in connection with any subsequent calculation of any ratio, basket availability or compliance with any other provision hereunder, including Section 2.03(b)(ii) or 7.01(xi) (other than actual compliance with Section 7.11), on or following the relevant LCT Test Date and prior to the earliest of the date on which such Limited Condition Investment is consummated, the date that the definitive agreement for such Limited Condition Investment is terminated or expires without consummation of such Limited Condition Investment, any such ratio, basket or compliance with any other provision hereunder shall be calculated on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date; <u>provided</u> that, with respect to the determination of whether a Restricted Payment is permitted pursuant to Section 7.06(vii), compliance with any applicable ratio or basket in such Section shall be calculated both (i) on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date, and (ii) as if such Limited Condition Investment and related transactions had not been consummated on such LCT Test Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, if the Borrower or any Subsidiary (i) incurs Debt or creates Liens in connection with any Limited Condition Investment under a ratio-based basket and (ii) incurs Debt or creates Liens in connection with such Limited Condition Investment under a non-ratio-based basket, then the applicable ratio will be calculated with respect to any such action under the applicable ratio-based basket or other provision without regard to any such action under such non-ratio-based basket made in connection with such Limited Condition Investment.

**ARTICLE II** 

**THE COMMITMENTS AND LOANS** 

**Section 2.01 <u>Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Initial Loans</u>*. Subject to the terms and conditions set forth herein, each Lender severally agrees to make a term loan on the Initial Loan Borrowing Date (each such loan, an "<u>Initial Loan</u>" and collectively, the "<u>Initial Loans</u>") in Euros to the Initial Borrower, in an aggregate principal amount not to exceed the amount of such Lender's Commitment. The Aggregate Commitments shall be automatically and permanently reduced to zero at 5:00 p.m. on the earlier of (i) the Initial Loan Borrowing Date and (ii) February 9, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Loans Generally</u>*. The Initial Borrower may make only one Borrowing under the Commitments which shall be on the Initial Loan Borrowing Date. Within the limits of each Lender's Commitment and the Aggregate Commitments, and subject to satisfaction or waiver of the conditions precedent specified in Section 4.01, the Borrower may borrow under this Section 2.01 and prepay under Section 2.03; <u>provided</u> that amounts borrowed under this Section 2.01 and subsequently repaid or prepaid may not be reborrowed. Loans may bear interest at a rate based on the EURIBOR Rate, as further provided herein.

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**Section 2.02 <u>Borrowings and Continuations of Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrowing, and each continuation of Loans shall be made upon the Borrower's irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of any Borrowing of, or continuation of, Loans; <u>provided</u> that, if the Borrower wishes to request Loans having an Interest Period of twelve months in duration as provided in the definition of "Interest Period", the applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of such Borrowing or continuation, whereupon the Administrative Agent shall give prompt notice to the Lenders of such request and determine whether the requested twelve-month Interest Period is acceptable to all of them. Not later than 11:00 a.m., four Business Days before the requested date of such Borrowing or continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each continuation of Loans shall be in a principal amount of €1,000,000 or a whole multiple of €1,000,000 in excess thereof (or if less, the full remaining balance of the then-outstanding Loans). Each Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Borrowing or a continuation of Loans, (ii) the requested date of the Borrowing or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed or continued, and (iv) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to give a timely notice requesting a continuation, then the applicable Loans shall be continued as Loans having an Interest Period of one month. Any such automatic continuation shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Loans. If the Borrower requests a Borrowing of or continuation of Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its pro rata share of the applicable Loans, and if no timely notice of a continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic continuation of Loans described in the preceding subsection. Each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's Office not later than 1:00 p.m. on the Initial Loan Borrowing Date. Upon satisfaction of the applicable conditions set forth in Section 4.01, the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of Bank of Montreal with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower. Each Lender may, at its option, make any Loan available to the Borrower by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; <u>provided</u> that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided herein, a Loan may be continued only on the last day of an Interest Period for such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Loans upon determination of such interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to all Borrowings and all continuations of Loans, there shall not be more than ten Interest Periods in effect with respect to Loans.

**Section 2.03 <u>Optional and Mandatory Prepayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Optional</u>*. The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty; <u>provided</u> that: (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to any date of prepayment of Loans; and (ii) any prepayment of Loans shall be in a principal amount of €1,000,000 or a whole multiple of €1,000,000 in excess thereof or, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment and the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein; <u>provided</u> that such notice may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any prepayment of a Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Subject to Section 2.11, each such optional prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages, as directed by the Borrower. Any amounts prepaid pursuant to this Section 2.03(a) may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Mandatory</u>*. The Borrower shall make prepayments from time to time in accordance with this Section 2.03(b). Each such mandatory prepayment shall be without premium or penalty; <u>provided</u> that the Borrower shall reimburse the Lenders for any redeployment costs in accordance with Section 3.05. Any amounts prepaid pursuant to this Section 2.03(b) may not be reborrowed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Non-OC Asset Sales, Casualty Events and Non-OC Reinsurance Transactions*. Within five (5) Business Days after (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect of any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the Borrower shall prepay principal amount of Loans in an aggregate amount equal to the Required Prepayment Amount; <u>provided</u> that no prepayment of the Loans shall be required pursuant to this clause (b) unless, and only to the extent, that (A) in the case of a Non-OC Asset Sale or Casualty Event, the aggregate Net Proceeds of all Non-OC Asset Sales or all Casualty Events, as applicable, consummated or occurring after the Effective Date exceeds the Asset Sale Threshold or (B) in the case of a Non-OC Reinsurance Transaction, the aggregate Net Proceeds of all such Non-OC Reinsurance Transactions consummated after the Effective Date exceeds the Reinsurance Threshold, in each case of (A) and (B), in which case only the amount exceeding the Required Prepayment Amount of such Asset Sale Threshold or the Reinsurance Threshold, as applicable, shall be required to be prepaid. Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the applicable Person whose property was the subject of the Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as applicable, may reinvest all or any portion of such Net Proceeds in assets useful in the business of the Borrower or any Subsidiary so long as, within 12 months after the receipt of such Net Proceeds, such reinvestment shall have been consummated, and if all or any portion of such Net Proceeds have been committed to be reinvested within such 12-month period but such reinvestment has not yet been consummated, such Person shall have an additional six months thereafter to consummate such reinvestment (it being understood and agreed that any such Net Proceeds not so reinvested by the conclusion of the 12th month or such additional six-month period, if applicable, shall be applied to the prepayment of the Loans as set forth in this Section 2.03(b) by not later than five (5) Business Days (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) the conclusion of the 12th month or such additional six-month period, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Indebtedness</u>*. Within five (5) Business Days after any Net Proceedsare received by or on behalf of the Borrower or any Subsidiary in respect of the issuance of any Debt, other than the issuance of any Debt permitted pursuant to Section 7.01 (except as otherwise provided in Section 7.01(xi)), the Borrower shall prepay the Loans in an aggregate principal amount equal to 100% of such Net Proceeds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Minimum Amount; Adverse Consequences</u>*. Notwithstanding the foregoing provisions of this Section 2.03(b): (A) the Borrower shall not be obligated to make any prepayment required by clause 2.03(b)(i) above unless and until the aggregate Required Prepayment Amount of Net Proceeds from all such Non-OC Assets Sales, Casualty Events and Non-OC Reinsurance Transactions, after giving effect to the reinvestment rights set forth therein, exceeds €1,000,000 in any fiscal year of the Borrower and (B) the Borrower shall not be obligated to make any prepayment required by clauses 2.03(b)(i) or (ii) above to the extent that applying, directly or indirectly, any amounts to repay any Loan as required by any such clause would (1) in the case of Net Proceeds received by the Borrower or a Subsidiary organized in a non-Cayman jurisdiction, result in material adverse tax consequences to the Borrower, any of its Subsidiaries or any of their respective direct or indirect parents, (2) not be permitted by applicable Law or regulation (including regulations of any Applicable Insurance Regulatory Authority or similar governmental authority located in the jurisdiction in which any Regulated Insurance Company is domiciled, regarding financial assistance, corporate benefit, restrictions on upstreaming of cash intra-group and the fiduciary and statutory duties of the directors of the relevant subsidiaries), as reasonably determined by the Borrower in good faith, or (3) not be permitted under the Organizational Documents of the Borrower or any of its Subsidiaries (including as a result of minority ownership); <u>provided</u> that (A) the Borrower shall use commercially reasonable efforts to obtain approvals from any Applicable Insurance Regulatory Authority or similar Governmental Authority to upstream Net Proceeds for the direct or indirect application thereof in accordance with clause 2.03(b)(i) or (ii) (but only for so long as such approvals are pending or have not been denied), (B) the Borrower and its Subsidiaries shall use commercially reasonable efforts to permit repatriation of the proceeds subject to such prepayments in order to effect such prepayments without incurring material adverse tax consequences, and (C) if the application of such Net Proceeds (1) is no longer prohibited by applicable Law or regulation or if the approvals referenced in clause (A) have been obtained, (2) would no longer result in material adverse tax consequences (as determined by as determined by the Borrower in good faith) or (3) is no longer prohibited by the Organizational Documents of the Borrower or such Subsidiary, such Net Proceeds will be promptly (and in any event not later than five Business Days after such repatriation) applied to the prepayment of the Loans as required by Section 2.03(b)(i) or (ii). The non-application of any mandatory prepayment amounts as a result of this Section 2.03(b)(iii) will not constitute a Default or an Event of Default and such amounts shall be available for use in the business of the Borrower and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Application of Mandatory Prepayment Proceeds</u>.* Subject to Section 2.11, each mandatory prepayment pursuant to this Section 2.03(b) shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages, as directed by the Borrower, or if not so directed, to pay installments of the principal amount of the Loans as set forth in Section 2.04(a) in direct chronological order of maturity. In connection with any prepayment pursuant to this Section 2.03(b), the Borrower shall provide a notice to the Administrative Agent specifying the amount of, and the date on which the Borrower intends to make, such prepayment. The Administrative Agent will

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promptly notify each Lender of such prepayment notice and of such Lender's pro rata share thereof. Each such Lender may reject all (but not less than all) of its Applicable Percentage of any such prepayment (such declined amounts, the "<u>Declined Proceeds</u>") of Loans required to be made pursuant to this Section 2.03(b) by providing notice to the Administrative Agent at or prior to the time of such prepayment. The aggregate amount of all Declined Proceeds shall be retained by the Borrower and may be used for any business purpose of the Borrower and its Subsidiaries.

**Section 2.04 <u>Repayment of the Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall repay to the Administrative Agent, for the ratable account of the Lenders, an aggregate principal amount of the Loans, in quarterly installments payable on each Principal Payment Date, in the amounts (expressed as a percentage of the aggregate principal amount of the Loans drawn under Section 2.01) set forth in the table below for each such Principal Payment Date (subject to (i) reduction in connection with prepayments of Loans as provided in Section 2.03 and (ii) increase in connection with the making of any New Loans pursuant to Section 2.12), together with accrued and unpaid interest on such principal amount repaid on such Principal Payment Date (but excluding any interest accrued on such Principal Payment Date).

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| | |
|:---|:---|
| **Principal Payment Date** | **Principal Payment<br>Amount** |
|  For each Principal Payment Date occurring after the Effective Date and on or prior to the Principal Payment Date occurring on the last Business Day of the fourth full fiscal quarter of the Borrower ending after the Effective Date | 1.25% |
|  For each Principal Payment Date occurring on or after the Principal Payment Date occurring on the last Business Day of the fifth full fiscal quarter of the Borrower ending after the Effective Date until the Maturity Date | 2.50% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The remaining aggregate principal balance of the Loans will be repayable on the Maturity Date.

**Section 2.05 <u>Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of paragraph (b) below, each Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the EURIBOR Rate for such Interest Period, plus the Applicable Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuance of an Event of Default pursuant to Section 8.01(a), to the fullest extent permitted by applicable Laws, such amounts as are then due and payable hereunder and unpaid shall bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

**Section 2.06 <u>Fees</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall pay to the Administrative Agent for its account such fees as shall have been separately agreed upon between the Borrower and the Administrative Agent in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall pay to each Arranger for its account such fees as shall have been separately agreed upon between the Borrower and such Arranger in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

**Section 2.07 <u>Computation of Interest and Fees</u>**. All computations of fees and interest shall be made on the basis of a year of 360 days and actual days elapsed (which results in more interest being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; <u>provided</u> that any Loan that is repaid on the same day on which it is made shall bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

**Section 2.08 <u>Evidence of Debt</u>**. The Borrowings made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Borrowings made by the Lenders and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records

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of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.

**Section 2.09 <u>Payments Generally; Administrative Agent's Clawback</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>General</u>*. All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in Euros and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Clawback</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Funding by Lenders; Presumption by Administrative Agent</u>.* Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Loans that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower agrees to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative

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Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Payments by the Borrower; Presumptions by Administrative Agent</u>.* Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

A notice of the Administrative Agent to any Lender or Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Failure to Satisfy Conditions Precedent</u>.* If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Obligations of Lenders Several</u>.* The obligations of the Lenders hereunder to make Loans and payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender to make any Loan or payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under Section 10.04(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Funding Source</u>.* Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan or other funding obligation in any particular place or manner.

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**Section 2.10 <u>Sharing of Payments by Lenders</u>**. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it resulting in such Lender's receiving payment of a proportion of the aggregate principal amount of such Loans and accrued interest thereon greater than its pro-rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing to them; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall not be construed to apply to (x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant.

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

**Section 2.11 <u>Defaulting Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Adjustments</u>*. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Termination of Defaulting Lender Commitment</u>.* The Borrower may terminate the unused amount of the Commitment of a Defaulting Lender upon not less than two Business Days' prior notice to the Administrative Agent (which will promptly notify the Lenders thereof), and in such event the provisions of clause (iii) below will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); <u>provided</u> that such termination will not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, or any Lender may have against such Defaulting Lender, or cause such Defaulting Lender to be a Non-Defaulting Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Waivers and Amendments</u>*. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of "Required Lenders" and Section 10.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Defaulting Lender Waterfall</u>*. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, as the Borrower may request (if no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third*, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; *fourth*, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth*, if no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that, if (x) such payment is a payment of the principal amount of any Loans respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.01 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans and held by the Lenders pro rata in accordance with the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.11(a)(iii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Certain Fees</u>*. Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such period pursuant to Section 2.06 (without prejudice to the rights of the Non-Defaulting Lenders in respect of such fees).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Defaulting Lender Cure</u>*. If the Borrower and the Administrative Agent agree in writing in their discretion that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice, and subject to any conditions set forth therein, such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender's having been a Defaulting Lender.

**Section 2.12 <u>Incremental Facilities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower may, at its option, from time to time on or after the Effective Date, obtain one or more additional term loans up to an aggregate principal amount of €25,000,000 (each, a "<u>New Loan</u>"), in each case upon at least four Business Days' prior written notice to the Administrative Agent, which notice shall specify (A) the requested amount of a New Loan and (B) date on which the Borrower proposes to borrow such New Loan (such date, a "<u>New Loan Borrowing Date</u>"), and in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower may offer any New Loan to be provided to the Lenders (but no Lenders will be required to provide any such New Loan or will have the right to be offered to provide any such New Loan) and/or other Persons approved by the Borrower and, unless such Person is a Lender or an Affiliate or an Approved Fund of a Lender, the Administrative Agent (such approval not to be unreasonably withheld or delayed) on either a pro-rata or non-pro-rata basis as determined by the Borrower in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan; <u>provided</u> that (1) any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality) and (2) with respect to any New Loan in connection with a Limited Condition Investment, such representations and warranties shall only be required to be true and correct in all material respects on and as of the date of the applicable LCT Test Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan, no Default or Event of Default shall have occurred and be continuing (except that, with respect to any New Loan in connection with a Limited Condition Investment, the requirement pursuant to this clause (a)(iii) shall be that no Event of Default shall exist at the applicable LCT Test Date and no Event of Default under Section 8.01(a) or 8.01(f) (solely with respect to the Borrower) shall exist as of the effectiveness of such Incremental Agreement in each case after giving effect to such New Loan);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to the provisions of Section 1.11 with respect to any New Loan in connection with a Limited Condition Investment, immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan and the use of proceeds thereof, on a pro forma basis, the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no consent of any Lender shall be required in connection with any increase in the Commitments in respect of any New Loan or the funding of its share of the New Loans, in each case in accordance with this Section 2.12(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) each Commitment in respect of any New Loan (a "<u>New</u> <u>Commitment</u>") shall become effective when the Persons (including Lenders) providing such New Loan (such Lenders and other Persons, the "<u>Incremental Lenders</u>"), the Borrower and the Administrative Agent shall have entered into a written agreement (each an "<u>Incremental Agreement</u>") pursuant to which (A) each such Incremental Lender agrees to provide a New Commitment and to extend a New Loan in the amount specified therein (B) each such Incremental Lender that is not then a Lender agrees to assume and accept the obligations and rights of a Lender hereunder, (C) the Borrower accepts such New Commitment and (D) a New Loan Borrowing Date is specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower certifying compliance with the conditions specified in Section 2.12(a)(ii), Section 2.12(a)(iii) and Section 2.12(a)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the principal amount of each New Loan shall be in an amount that is an integral multiple of €1,000,000 and not less than €5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Incremental Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each New Loan shall be deemed, for all purposes, a Loan. The New Loans, together with all Initial Loans, will be construed as a single fungible tranche of Loans, and the terms and provisions of the New Loans shall be identical to the terms and provisions of the Initial Loans. The Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that all New Loans, when originally made, are included in each Borrowing of outstanding Loans on a pro rata basis. This may be accomplished by

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allocating a portion of each New Loan to each outstanding Borrowing on a pro rata basis. If any New Loan is to be allocated to an existing Interest Period for a Borrowing, then the interest rate thereon for such Interest Period and the other economic consequences thereof shall be as set forth in the Incremental Agreement. In addition, the scheduled amortization payments under Section 2.04(a) required to be made after the making of such New Loans shall be ratably increased by the aggregate principal amount of such New Loans and shall be further increased for all Lenders on a pro rata basis to the extent necessary to avoid any reduction in the amortization payments to which the Lenders were entitled before such recalculation.

**ARTICLE III** 

**TAXES, YIELD PROTECTION AND ILLEGALITY** 

**Section 3.01 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Defined Terms</u>*. For purposes of this Section 3.01 the term "applicable Law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Payments Free of Taxes</u>.* Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Payment of Other Taxes by the Borrower</u>*. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Indemnification by the Lenders</u>*. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Evidence of Payments</u>*. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 3.01, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Status of Lenders; Tax Documentation</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.01(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of executed IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, copies of executed IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) copies of executed IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>") and (y) copies of executed IRS Form W-8BEN-E or W-8BEN; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, copies of executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that, if

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the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-4 on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of any other executed form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Treatment of Certain Refunds</u>*. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 3.01 (including by the payment of additional amounts pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party,

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shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Survival</u>*. Each party's obligations under this Section 3.01 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations under any Loan Document.

**Section 3.02 <u>Illegality</u>**. If any Lender determines that any Change in Law or introduction of any law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its Lending Office to make, maintain or fund Loans whose interest is determined by reference to the EURIBOR Rate, or to determine or charge interest rates based upon the EURIBOR Rate, or any Governmental Authority has imposed material restrictions on the legal authority of such Lender to purchase or sell, or to take deposits of, Euros in the euro interbank market (each, an "<u>EURIBOR Illegality Event</u>"), then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue Loans shall be suspended. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Loans of such Lender to an alternative rate mutually acceptable to the Borrower, the Administrative Agent and such Lender, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted and any amount payable pursuant to Section 3.05. During any period in which a EURIBOR Illegality Event is in effect, the Borrower may request, through the Administrative Agent, that the Lenders affected by such EURIBOR Illegality Event confirm that the circumstances giving rise to the EURIBOR Illegality Event continue to be in effect. If, within ten Business Days following such confirmation request, such Lenders have not confirmed the continued effectiveness of such EURIBOR Illegality Event, then such EURIBOR Illegality Event shall no longer be deemed to be in effect; <u>provided</u> that (A) the Borrower shall not be permitted to submit any such request more than once in any 30-day period and (B) nothing contained in this Section 3.02 or the failure to provide confirmation of the continued effectiveness of such EURIBOR Illegality Event shall in any way affect the Lenders' right to provide any additional notices of an EURIBOR Illegality Event as provided in this Section 3.02.

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**Section 3.03 <u>Inability to Determine Rates; Successor EURIBOR Rate</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Required Lenders determine that for any reason in connection with any request for a Loan or continuation thereof that (i) Euro deposits are not being offered to banks in the euro interbank market for the applicable amount and Interest Period of such Loan, (ii) adequate and reasonable means do not exist for determining the EURIBOR Rate for any requested Interest Period with respect to a proposed Loan, or (iii) the EURIBOR Rate for any requested Interest Period with respect to a proposed Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan (each, a "<u>Market Disruption Event</u>"), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Loans shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower, the Administrative Agent and the Lenders may establish a mutually acceptable alternative rate. During any period in which a Market Disruption Event is in effect, the Borrower may request, through the Administrative Agent, that the Required Lenders confirm that the circumstances giving rise to the Market Disruption Event continue to be in effect. If, within ten Business Days following such confirmation request, the Required Lenders have not confirmed the continued effectiveness of such Market Disruption Event, then such Market Disruption Event shall no longer be deemed to be in effect; <u>provided</u> that (A) the Borrower shall not be permitted to submit any such request more than once in any 30 day period and (B) nothing contained in this Section 3.03(a) or the failure to provide confirmation of the continued effectiveness of such Market Disruption Event shall in any way affect the Required Lenders' right to provide any additional notices of a Market Disruption Event as provided in this Section 3.03(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Effect of Benchmark Transition Event</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace the EURIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of the EURIBOR Rate with a Benchmark Replacement pursuant to this Section 3.03(b) will occur prior to the applicable Benchmark Transition Start Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.03(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 3.03(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Borrowing of or continuation of Loans to be made or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Loans that bear interest based on an alternative rate mutually acceptable to the Borrower, the Administrative Agent and the Lenders.

**Section 3.04 <u>Increased Costs; Reserves on Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Increased Costs Generally</u>*. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of "Excluded Taxes" and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the euro interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender (except any reserve requirement contemplated by Section 3.04(e)), and the result of any of the foregoing shall be to increase the cost to such Lender of making, continuing or maintaining any Loan the interest on which is determined by reference to the EURIBOR Rate (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(a), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(a) and the definition of "Change in Law".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Capital Requirements</u>*. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(b), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(b) and the definition of "Change in Law".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Certificates for Reimbursement</u>*. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Delay in Requests</u>*. Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six month period referred to above shall be extended to include the period of retroactive effect thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Reserves on Loans</u>*. The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as "<u>Eurocurrency liabilities</u>"), additional interest on the unpaid principal amount of each Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan; <u>provided</u> that the Borrower shall have received at least ten days' prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice ten days prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten days from receipt of such notice.

**Section 3.05 <u>Compensation for Losses</u>**. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any continuation, conversion, payment or prepayment of any Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan on the date or in the amount notified by the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any assignment of a Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13; including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained (but, for the avoidance of doubt, not any loss of anticipated profits). The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Loan made by it at the EURIBOR Rate for such Loan by a matching deposit or other borrowing in the euro interbank market for a comparable amount and for a comparable period, whether or not such Loan was in fact so funded.

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**Section 3.06 <u>Mitigation Obligations; Replacement of Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Designation of a Different Lending Office</u>*. If any Lender requests compensation under Section 3.04, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then at the request of the Borrower, such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts then or thereafter payable pursuant to Section 3.01 or 3.04, as the case may be, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Replacement of Lenders</u>*. If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, and, in each case such Lender has declined or is unable to designate a different lending office in accordance with Section 3.06(a), the Borrower may replace such Lender in accordance with Section 10.13 if no Default or Event of Default has occurred and is continuing.

**Section 3.07 <u>Survival</u>**. All of the Borrower's obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.

**ARTICLE IV** 

**CONDITIONS PRECEDENT** 

**Section 4.01 <u>Conditions to Effectiveness</u>**. The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent's receipt of the following, each of which shall be originals or in electronic format (followed promptly by originals) unless otherwise specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) counterparts of this Agreement executed by the Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Note executed by the Initial Borrower in favor of each Lender requesting a Note in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Guaranty executed by the Guarantors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Credit Parties as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents (including, in the case of the Initial Borrower, true, correct and up to date copies of the exempted limited partnership agreement, certificate of registration of exempted limited partnership, section 9 statement and any section 10 statements of the Initial Borrower and the certificate of incorporation, memorandum and articles of association, register of directors and officers and register of mortgages and charges of the General Partner) and (B) a good standing certificate (or equivalent) for each of the Credit Parties and the General Partner from its jurisdiction of organization, registration or incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) customary opinions of each of (A) Sidley Austin, LLP, (B) Maples Group and (C) Wakefield Quin Limited, in each case, counsel to the Credit Parties, addressed to the Administrative Agent and each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a certificate signed by a Responsible Officer of the Initial Borrower certifying that the conditions specified in Section 4.01(b), Section 4.01(c) and Section 4.01(d) have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) the Audited Financial Statements, (B) the Unaudited Financial Statements and (C) the statutory financials for each Material Insurance Subsidiary submitted to each Applicable Insurance Regulatory Authority (to the extent such financials were so prepared and submitted);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) a certificate, in the form attached hereto as Exhibit G, from a Financial Officer of the Initial Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) (A) at least three (3) Business Days prior to the date of this Agreement, all documentation and other information requested by the Administrative Agent or any Arranger, to the extent requested in writing of the Initial Borrower at least 10 days prior to the date of this Agreement and that the Administrative Agent and the Arrangers reasonably determine is required by United States regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, and (B) to the extent the Initial Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, at least five (5) days prior to the date of this Agreement, a Beneficial Ownership Certification in relation to the Initial Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of the Effective Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately prior to, and immediately after giving effect to, the effectiveness of this Agreement, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There shall not have occurred any event, circumstance or change since December 31, 2019 that has had a Material Adverse Effect.

Without limiting the generality of the provisions of Section 9.03(c), for purposes of determining compliance with the conditions specified in Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Effective Date specifying its objection thereto.

**Section 4.02 <u>Conditions to Initial Loan Borrowing Date</u>**. The obligation of each Lender to make an Initial Loan is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of the Initial Loan Borrowing Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Immediately prior to, and immediately after giving effect to, the making of the Initial Loans, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any fees and expenses required to be paid on or before the Initial Loan Borrowing Date pursuant to the Loan Documents (but, with respect to expenses, only to the extent invoiced at least three (3) Business Days prior to the Initial Loan Borrowing Date) shall have been paid or shall have been authorized to be deducted from the proceeds of the funding of the Loans on the Initial Loan Borrowing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof.

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**ARTICLE V** 

**REPRESENTATIONS AND WARRANTIES** 

The Borrower represents and warrants to the Lenders the following:

**Section 5.01 <u>Existence, Qualification and Power</u>**. Each Credit Party and each Subsidiary (i) is duly organized, registered or formed, validly existing and, as applicable, in good standing (to the extent such concept is applicable) under the Laws of the jurisdiction of its incorporation, registration or organization, (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals from all Governmental Authorities to (A) own or lease its assets and carry on its business and (B) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except in each case referred to in clause (i) (other than with respect to the existence of the Borrower), (ii)(A) or (iii), to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 5.02 <u>Authorization; No Contravention</u>**. The execution, delivery and performance by each Credit Party of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of its respective Organizational Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under (A) any Contractual Obligation to which such Credit Party is a party or affecting such Credit Party or the properties of such Credit Party which would reasonably be expected to result in a Material Adverse Effect, (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or any of its Subsidiaries or their property is subject which would reasonably be expected to result in a Material Adverse Effect or (C) any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount which would reasonably be expected to result in a Material Adverse Effect or (iii) violate any Law the effect of which would reasonably be expected to result in a Material Adverse Effect.

**Section 5.03 <u>Execution and Delivery; Binding Effect</u>**. This Agreement has been, and each other Loan Document to which each Credit Party is a party, when delivered hereunder, will have been, duly executed and delivered by such Credit Party. This Agreement constitutes, and each other Loan Document to which each Credit Party is a party when so delivered will constitute, a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counterclaim, the plea of prescription, principle of public policy or other Laws affecting creditors' rights generally and by general principles of equity.

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**Section 5.04 <u>Financial Statements; No Material Adverse Effect</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Financial Statements</u>*. The Audited Financial Statements were prepared in accordance with IFRS, consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial position of the entity or entities covered thereby as of the dates thereof and their consolidated results of operations and cash flows for the period covered thereby in accordance with IFRS, consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein. Each of the Unaudited Financial Statements were prepared in accordance with IFRS, consistently applied throughout the period covered thereby except as otherwise expressly noted therein and fairly present in all material respects the financial position of the entity or entities covered thereby as of the dates thereof and their consolidated results of operations for the periods covered thereby in accordance with IFRS, except as otherwise expressly noted therein and subject to the absence of footnotes and to normal year-end audit adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>No Material Adverse Change</u>*. Since December 31, 2019, there has been no event or circumstance that, either individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

**Section 5.05 <u>Litigation</u>**. As of the Effective Date, there are no actions, suits, proceedings or investigations pending or, to the knowledge of the Borrower, threatened in writing, at Law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any Subsidiary or against any of their properties that (i) either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (ii) affect the validity or enforceability of this Agreement or any other Loan Document or any of the transactions contemplated hereby.

**Section 5.06 <u>Property</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Ownership of Properties</u>*. Each Credit Party and each Subsidiary has good title to, or valid leasehold interests in, all property and assets necessary in the ordinary conduct of its business, except for such defects in title that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Intellectual Property</u>*. Each Credit Party and each Subsidiary owns, licenses or possesses the rights to use all of the trademarks, trade names, service marks, trade names, copyrights, patents, licenses and other intellectual property rights that are necessary for the operation of their respective businesses, as currently conducted, and the use thereof by the Credit Parties and the Subsidiaries does not conflict with the intellectual property rights of any other Person, except to the extent that such failure to own, license or possess or such conflicts, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The operation of the business of each Credit Party and each Subsidiary as currently conducted does not infringe upon or violate any intellectual property rights held by any other Person, except to the extent that such infringements and violations, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

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**Section 5.07 <u>Taxes</u>**. Each Credit Party and each Subsidiary has filed (or caused to be filed) all U.S. federal, state and other Tax returns and reports and all non-U.S. Tax returns and reports required to be filed, and have paid (or caused to be paid) all U.S. federal, state and other Taxes and all non-U.S. Taxes, levied or imposed upon them or their properties, income or assets otherwise due and payable, except (i) Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with IFRS or SAP, as the case may be, or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 5.08 <u>Disclosure</u>**. No written report, financial statement, certificate or other written information furnished (other than projected or pro-forma financial information and general market or industry data) by or on behalf of the Borrower to the Administrative Agent or any Lender for use in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not materially misleading. The projected or pro-forma financial information contained in the materials referenced in the preceding sentence were prepared in good faith based upon assumptions believed to be reasonable at the time made (it being understood that such projected or pro-forma information may vary from actual results and that such variances may be material).

**Section 5.09 <u>Compliance with Laws</u>**. Each Credit Party and each Subsidiary is in compliance with the requirements of all Laws (including Environmental Laws) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (i) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted and the pendency of such proceedings, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect or (ii) the failure to so comply, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

**Section 5.10 <u>ERISA Compliance</u>**. Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Plan is in compliance with the applicable provisions of ERISA and the Code and each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or is relying on an opinion letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code, or an application for such a letter is currently being processed by the IRS, and, to the knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there are no pending or, to the knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or violation of the fiduciary responsibility rules with respect to any Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no ERISA Event has occurred or is reasonably expected to occur, for which liability has been or is reasonably expected to be imposed on any Credit Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities.

**Section 5.11 <u>Environmental Matters</u>**. The Credit Parties and the Subsidiaries are not subject to any pending or, to the knowledge of the Borrower, threatened claim alleging liability under or responsibility for violation of any Environmental Law in connection with their respective businesses, operations and properties, except for claims which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 5.12 <u>Margin Regulations; Federal Reserve Regulations; Use of Proceeds</u>**. None of the Credit Parties or any Subsidiary is engaged and the Credit Parties and the Subsidiaries will not engage, principally or as one of its respective important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets of the Borrower and its Subsidiaries on a consolidated basis, subject to Section 7.02 or other restriction on transfer or disposition hereunder, will be Margin Stock. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Federal Reserve Board, including Regulations T, U and X. The Borrower has or will use the proceeds of the Loans only for the purposes set forth in Section 6.11.

**Section 5.13 <u>Investment Company Act</u>**. None of the Credit Parties are required to register as an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

**Section 5.14 <u>Anti-Corruption Laws and Sanctions</u>**. Each of the Credit Parties has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by it, its Subsidiaries and, to the extent acting on their behalf, their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower and its Subsidiaries and, to the knowledge of the Borrower, its officers, employees, directors and agents, to the extent are acting on their behalf, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of the Borrower and any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers,

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employees or, to the extent acting in any capacity in connection with the credit facility established hereby, agents is a Sanctioned Person. Each of the Credit Parties is in compliance, in all material respects, with the Uniting And Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA Patriot Act of 2001), to the extent applicable.

**Section 5.15 <u>Solvency</u>**. On each of the Effective Date and the Initial Loan Borrowing Date, immediately after giving effect to the Transactions to occur on the Effective Date and the Initial Loan Borrowing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The fair value of the assets of the Borrower and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The present fair saleable value of the property of the Borrower and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital.

**Section 5.16 <u>Beneficial Ownership Certification</u>**. Each Beneficial Ownership Certification executed and delivered to the Administrative Agent by the Borrower from time to time, as updated from time to time in accordance with this Agreement, is accurate, complete and correct as of the date thereof.

**Section 5.17 <u>EEA Financial Institutions</u>**. None of the Credit Parties is an EEA Financial Institution.

**Section 5.18 <u>Insurance Licenses</u>**. No License held by a Material Insurance Subsidiary, the loss of which could reasonably be expected to have a Material Adverse Effect, is the subject of a proceeding that could reasonably be expected to result in the suspension or revocation of such License.

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**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

**Section 6.01 <u>Financial Statements and Statutory Statements</u>**. The Borrower will furnish to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within 150 days after the end of each fiscal year of the Borrower (or, in the case of the fiscal year ending December 31, 2020, within 180 days after the end of such fiscal year of Accelerant Holdings), a consolidated balance sheet of the Borrower and its consolidated Subsidiaries (or, in the case of the fiscal year ending December 31, 2020, Accelerant Holdings and its consolidated Subsidiaries) as at the end of such fiscal year and the related consolidated statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries (or, in the case of the fiscal year ending December 31, 2020, Accelerant Holdings and its consolidated Subsidiaries) for such fiscal year, setting forth in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of Mazars or other independent public accountants of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards (and shall not be subject to any "going concern" or like qualification, exception or explanatory paragraph (except to the extent such qualification, exception or explanatory paragraph results solely from a current maturity of the Loans) or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such financial statements present fairly in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries on a consolidated basis, in accordance with IFRS, consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (x) within 90 days after the end of the fiscal year of Accelerant Holdings ending December 31, 2020, a balance sheet for Accelerant Holdings and its consolidated Subsidiaries as at the end of such fiscal year, and the related statements of income, equity and cash flows of Accelerant Holdings and its consolidated Subsidiaries for such fiscal year, setting forth in comparative form the figures for the previous fiscal year, to the extent available, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial position, results of operations and cash flows of Accelerant Holdings and its consolidated Subsidiaries in accordance with IFRS, consistently applied, subject only to normal year-end audit adjustments and the absence of footnotes and (y) within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a balance sheet for the Borrower and its consolidated Subsidiaries as at the end of such fiscal quarter, and the related statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries for such fiscal quarter and for the portion of the Borrower's fiscal year then ended, setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, in each case to the extent available, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries in accordance with IFRS, consistently applied, subject only to normal year-end audit adjustments and the absence of footnotes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five Business Days after filing with the Applicable Insurance Regulatory Authority with respect to each Material Insurance Subsidiary, a copy of the annual Statutory Statement of each Material Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) within the earlier of (x) five Business Days after filing with the Applicable Insurance Regulatory Authority (if so required) and (y) 120 days after the last day of each fiscal year of each Material Insurance Subsidiary (commencing with the first such fiscal year ending after the Effective Date), the quarterly Statutory Statement for each Material Insurance Subsidiary for such period.

**Section 6.02 <u>Certificates; Other Information</u>**. The Borrower will, and will cause its Subsidiaries to, deliver to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) concurrently with the delivery of the financial statements referred to in Sections 6.01(i) and 6.01(ii), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower (A) certifying as to whether a Default is continuing and, if a Default is continuing, specifying the details thereof, (B) setting forth reasonably detailed calculations of the Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio, Interest Coverage Ratio and Consolidated Net Worth and demonstrating compliance with the covenants set forth in Section 7.11 as of the last day of the period for which such financial statements are delivered, (C) calculate the applicable Pricing Level for the Applicable Rate and (D) if the aggregate total assets of the Borrower and the Material Subsidiaries represent less than 92.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries or the aggregate revenues of the Borrower and the Material Subsidiaries represent less than 90% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable), identifying one or more Subsidiaries that shall thereafter be designated (and the Borrower shall thereupon so designate such Subsidiaries as) Material Subsidiaries hereunder so that the total assets of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the revenues of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable) as of the last day of the period for which such financial statements are delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly after the same become publicly available, copies of all periodic reports, all financial statements and periodic reports that the Borrower sends to its limited partners and copies of all other financial statements and regular, periodic or special reports (including Form 8-K) that the Borrower or any of its Subsidiaries may make to, or file with, the SEC; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly following any written request therefor (except to the extent prohibited by applicable law, regulatory policy, regulatory restriction or confidentiality agreement or to the extent covered by attorney-client or other legal privilege (as determined in the reasonable good faith judgment of the Borrower)), such other information regarding the operations, business, properties or financial condition of the Credit Parties, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender (through the Administrative Agent) may from time to time reasonably request (including beneficial ownership and other know-your-customer information).

Documents required to be furnished or delivered pursuant to Section 6.01(i), 6.01(ii), 6.02(i), 6.02(ii) or 6.02(iii) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (A) on which such documents are delivered in a format acceptable to the Administrative Agent pursuant to Section 10.02(a)(i), or such other email address as the Administrative Agent shall specify in writing to the Borrower, (B) on which such documents are posted on the Borrower's behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent), or (C) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website on the Internet at the website listed on Schedule 10.02; <u>provided</u> that documents furnished or delivered pursuant to the foregoing clause (C) shall not be deemed to have been delivered unless and until a Borrower has notified the Administrative Agent in writing (including by email pursuant to Section 10.02(a)(i)) of the posting such documents on an Intranet or intranet website to which each Lender and the Administrative Agent have access or to the Borrower's website.

The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining copies of such documents.

The Borrower hereby acknowledges that (i) the Administrative Agent may, but shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, "<u>Borrower Materials</u>") by posting the Borrower Materials on an Approved Electronic Platform and (ii) certain of the Lenders (each, a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities. The Borrower hereby agrees that: (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word "PUBLIC" shall appear prominently on the first page thereof;

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(x) by marking Borrower Materials "PUBLIC", the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or their securities for purposes of United States Federal and state securities laws (<u>provided</u> that, to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Approved Electronic Platform designated "Public Side Information"; and (z) the Administrative Agent shall treat any Borrower Materials that are not marked "PUBLIC" as being suitable only for posting on a portion of the Approved Electronic Platform not designated "Public Side Information".

**Section 6.03 <u>Notices</u>**. The Borrower will, and will cause its Subsidiaries to, promptly notify the Administrative Agent and each Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws, in each case in which there is a reasonable expectation of an adverse determination and that, if adversely determined, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material change in accounting or financial reporting practices by the Borrower or any Subsidiary other than in accordance with IFRS or SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any proposed amendment or other modification of the bylaws of the Borrower or any of its Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any public announcement by AM Best of (1) any change to any rating level applicable to the Borrower or any Insurance Subsidiary or (2) the placement of any rating of the Borrower or any Insurance Subsidiary as under review by AM Best.

Each notice delivered under this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth the details of the occurrence requiring such notice and stating what action the Borrower has taken and proposes to take with respect thereto.

**Section 6.04 <u>Preservation of Existence, Etc</u>**. The Borrower will, and will cause each Subsidiary to: (i) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted or not restricted by Section 7.05; (ii) take all reasonable action to maintain all

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government rights, licenses (including from any Applicable Insurance Regulatory Authority), permits, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (iii) preserve or renew all of its registered patents, trademarks, trade names and service marks, in each case under this clause (iii), the non-preservation of which would reasonably be expected to have a Material Adverse Effect.

**Section 6.05 <u>Maintenance of Properties</u>**. The Borrower will, and will cause each Subsidiary to, (i) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition (ordinary wear and tear and casualty and condemnation excepted) and (ii) make all necessary repairs thereto and renewals and replacements thereof, in each case under this Section 6.05, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 6.06 <u>Maintenance of Insurance</u>**. The Borrower will, and will cause each Subsidiary to, maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance customary for similarly situated Persons engaged in the same or similar businesses as the Borrower or Subsidiary) as are customarily carried under similar circumstances by such Persons.

**Section 6.07 <u>Payment of Obligations</u>**. The Borrower will, and will cause each Subsidiary to, pay, discharge or otherwise satisfy before the same shall become delinquent, all of its obligations and liabilities (including Tax liabilities), in each case under this Section 6.07, except (i) if the same are being contested in good faith by appropriate proceedings and adequate reserves in accordance with IFRS, are being maintained by the Borrower or such Subsidiary or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 6.08 <u>Compliance with Laws</u>**. The Borrower will, and will cause each Subsidiary to, comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to do so would not reasonably be expected to have a Material Adverse Effect. Notwithstanding anything to the contrary in the foregoing, the Borrower will, directly or through its Subsidiaries, maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Borrower, its Subsidiaries and, to the extent acting on behalf of the Borrower or Subsidiary, each of their respective directors, officers, employees and agents, with Anti-Corruption Laws and applicable Sanctions.

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**Section 6.09 <u>Books and Records</u>**. The Borrower will, and will cause each Subsidiary to, maintain proper books of record and account, in which full, true and correct entries are made to permit the preparation of financial statements in conformity with IFRS, SAP or other appropriate generally accepted accounting principles, as the case may be.

**Section 6.10 <u>Inspection Rights</u>**. The Borrower will, and will cause each Subsidiary to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the reasonable expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably requested; <u>provided</u> that, other than with respect to such visits and inspections during the continuance of an Event of Default, (i) the Administrative Agent and the Lenders shall collectively be limited to exercising such rights no more often than once during any calendar year, (ii) visits by any Lender shall be coordinated with the Borrower through the Administrative Agent and (iii) any Lender electing to exercise such rights shall notify the Administrative Agent and each other Lender reasonably in advance of such exercise and the Administrative Agent and each other Lender (and their representatives and independent contractors) shall be given a reasonable opportunity to participate therein; <u>provided</u>, <u>further</u>, that during the continuance of an Event of Default the Administrative Agent or any Lender (or any of their respective representatives) may do any of the foregoing under this Section at any time. Such inspection rights are subject to the provisions of Section 10.07 and applicable Law and shall not extend to any information covered by attorney-client or other legal privilege or to the extent the exercise of such inspection rights would result in violation or other breach of any third-party confidentiality agreements. The Administrative Agent and the Lenders shall give the Borrower or such Subsidiary the opportunity to participate in any discussions with the Borrower's or such Subsidiary's accountants.

**Section 6.11 <u>Use of Proceeds</u>**. Subject to Section 7.09, the Borrower shall use the proceeds of the Borrowing on the Initial Loan Borrowing Date to fund (i) the Transaction Costs and (ii) to the extent of any balance thereof, general corporate purposes of the Borrower and its Subsidiaries (excluding Restricted Payments made by the Borrower in reliance on clauses (iv) or (vii) of Section 7.06).

**Section 6.12 <u>Additional Guarantors</u>**. In the event that (a) any Subsidiary of the Borrower (other than an Insurance Subsidiary) that directly or indirectly owns any Equity Interests of any Insurance Subsidiary or (b) any Subsidiary of the Borrower (solely in the case of this clause (b), other than any Excluded Subsidiary), in each case of clauses (a) and (b), is formed or acquired after the Effective Date (<u>provided</u> that any Excluded Subsidiary ceasing to be an Excluded Subsidiary but remaining a Subsidiary of the Borrower shall be deemed to constitute the acquisition of a Subsidiary of the Borrower for all purposes of this Section 6.12) or is a Subsidiary as of the Effective Date but is not a party to the Guaranty as of the Effective Date (other than Accelerant Distribution Holdings Limited, a Malta limited liability private exempt company, or Accelerant Malta Holdings Limited, a Malta limited liability private exempt company), the Borrower shall (i) promptly notify the Administrative Agent thereof and shall cause such

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Subsidiary to become a Guarantor under the Guaranty by executing and delivering to the Administrative Agent a joinder to the Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof and to become a "Credit Party" and a "Guarantor" for purposes of the Loan Documents and (ii) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates (including legal opinions) reasonably requested by Administrative Agent in connection with such joinder, including any information required pursuant to Section 10.18.

**Section 6.13 <u>Further Assurances</u>**. The Borrower will, and will cause each Subsidiary to, at the reasonable request of the Administrative Agent, execute and deliver any and all further documents, financing statements, agreements and instruments, and take all such further actions, that may be required under any applicable Law or as may be reasonably required to carry out the provisions of this Agreement and the other Loan Documents and give effect to the transactions contemplated hereby and thereby.

**Section 6.14 <u>Post-Closing Matters</u>**. Within ten (10) Business Days (or such longer period approved by the Administrative Agent in its sole discretion) after the Effective Date, the Borrower shall cause each of (a) Accelerant Distribution Holdings Limited, a Malta limited liability private exempt company, and (b) Accelerant Malta Holdings Limited, a Malta limited liability private exempt company, to become a Guarantor under the Guaranty by executing and delivering to the Administrative Agent a joinder to the Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof and to become a "Credit Party" and a "Guarantor" for purposes of the Loan Documents and (ii) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates (including legal opinions) reasonably requested by Administrative Agent in connection with such joinder, including any information required pursuant to Section 10.18.

**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

**Section 7.01 <u>Indebtedness</u>**. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Debt, other than the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Debt under the Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Debt outstanding on the date hereof and listed on Schedule 7.01 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that the amount of such Debt is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Guarantees by (A) any Subsidiary in respect of Debt of the Borrower or (B) the Borrower or any Subsidiary of Debt of any Subsidiary, in each case if such Debt is otherwise permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Operating Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Debt of the Borrower or any Subsidiary in respect of Capital Leases and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.02(viii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Debt of any Person that becomes a Subsidiary after the date hereof; <u>provided</u> that (A) such Debt exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (B) after giving effect to such Person becoming a Subsidiary on a pro-forma basis, (1) no Default or Event of Default shall have occurred and be continuing and (2) the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) obligations of the Borrower or any Subsidiary to maintain the capital or solvency of any of its Subsidiaries in accordance with the requirements of or under any agreement with their respective Applicable Insurance Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Debt of (A) any Credit Party owing to any other Credit Party, (B) any Credit Party owing to any Subsidiary that is not a Credit Party if such Debt is expressly subordinated to the prior payment in full of the Obligations on terms reasonably acceptable to the Administrative Agent (<u>provided</u> that such subordination terms shall permit regularly scheduled payments of principal and interest if no Default or Event of Default has occurred and is continuing) and (C) any Subsidiary that is not a Credit Party owing to any Credit Party or another Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) obligations and liabilities (whether directly or as a guarantor) of the Borrower or Subsidiaries arising under or in connection with treasury, depositary, cash management, custodial, automated clearinghouse or transfer of funds services or arrangements or similar services and arrangements incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the incurrence of Debt by the Borrower or any Subsidiary under any Qualified Securitization Facilities; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Debt of the Borrower or any Subsidiary not otherwise permitted under clauses (i) through (x) above; <u>provided</u> that (i) both immediately prior to, and immediately after giving effect to, the incurrence of such Debt on a pro forma basis, (A) no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall be in compliance with the covenants in Section 7.11, (ii) if, on the date any Debt is incurred in reliance on this Section 7.01(xi), after giving effect thereto and the use of proceeds thereof, the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, is greater than 25%, a portion of the Net Proceeds from the incurrence of such Debt shall be applied to prepay the Loans as set forth in Section 2.03(b)(ii) such that, after giving effect to such prepayment, the Consolidated Total Debt to Capitalization Ratio (determined as provided above) is less than or equal to 25% and (iii)(A) the final maturity date of any Debt incurred in reliance on this Section 7.01(xi) shall be no earlier than the Maturity Date and (B) the Weighted Average Life to Maturity of any Debt incurred in reliance on this Section 7.01(xi) shall be no shorter than the Weighted Average Life to Maturity of the Loans at such time (which, in the case of customary "bridge" loans, shall be determined by reference to the notes or loans into which such bridge loans are, by their terms, converted or for which such bridge loans may be, by their terms, exchanged at maturity); <u>provided</u>, <u>further</u>, with respect to any such Person, the amount of any commitments to make loans or extend credit on a revolving basis (or delayed draw basis) to such Person that has been designated by the Borrower in writing to the Administrative Agent as "Designated Revolving Commitments," until such time as the Borrower subsequently provides notice to the Administrative Agent to the effect that such commitments will no longer constitute "Designated Revolving Commitments": (1) such Designated Revolving Commitments will be deemed an incurrence of Debt and fully utilized and outstanding on such date for purposes of calculating the Consolidated Total Debt to Capitalization Ratio under this clause (xi), (2) unless the Borrower provided notice to the Administrative Agent to the effect that such revolving (or delayed draw) commitments no longer constitute "Designated Revolving Commitments", such Designated Revolving Commitments will be deemed to be fully utilized and outstanding for the purposes of calculating the Consolidated Total Debt to Capitalization Ratio in connection with the incurrence of any other Debt after such date in reliance on this clause (xi) and (3) commencing on the date such Designated Revolving Commitments are established, after giving pro forma effect to the incurrence of the entire committed amount of the Debt thereunder, such committed amount under such Designated Revolving Commitments may thereafter be borrowed (and reborrowed, if applicable), in whole or in part, from time to time, without further compliance with either clause (1) or (2) of this proviso;

<u>provided</u> that the sum of (x) the aggregate principal amount of Unsubordinated Debt, plus (y) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to Section 7.02(xxix) shall at no time exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

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**Section 7.02 <u>Liens</u>**. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens existing on the date hereof and listed on Schedule 7.02 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that (A) the property covered thereby is not changed and (B) the Debt secured or benefited thereby is not increased except by (1) by the utilization of any existing commitments thereunder, (2) accrued and unpaid interest and premiums thereon and (3) underwriting discounts or other amount paid, and fees, commissions, premiums (including tender premiums) and expenses (including upfront fees, original issue discount or initial yield payments) incurred, in connection with any such refinancing, refunding, renewal or extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Liens for Taxes not yet overdue or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with IFRS;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) pledges or deposits in the ordinary course of business in connection with workers' compensation, unemployment insurance and other social security legislation and securing letters of credit, bank guarantees or similar instruments issued supporting such items;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) deposits to secure the performance of bids, tenders, contracts, leases (other than Debt), statutory obligations, bank guarantees or similar instruments, surety and appeal bonds, letters of credit, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) easements, zoning restrictions, rights-of-way, restrictions and other similar encumbrances affecting real property which do not materially interfere with the ordinary conduct of the business of the applicable Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Liens arising pursuant to an order of attachment, distraint or similar legal process in connection with legal proceedings and securing judgments for the payment of money and Liens arising under ERISA or the Code with respect to a Plan not constituting an Event of Default under Section 8.01(h) or Section 8.01(i), respectively;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Liens on the property of the Borrower or any Subsidiary securing (A) any part of the cost of acquisition, development, construction, alteration, repair or improvement of such property or Debt incurred to finance any of the foregoing (including any sale and leaseback transaction), (B) Capital Leases and (C) any extension, renewal, refinancing or replacement of the Debt or obligations secured by any such Lien referred to in clauses (A) and (B); <u>provided</u> that (x) such Liens do not at any time encumber any property other than the property financed by such Debt and the proceeds and products thereof, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided to the Borrower or any Subsidiary by any Person may be cross-collateralized to other financings of such type provided by such Person or its Affiliates) and (y) in the case of clause (A) the Debt secured thereby is either Non-Recourse Debt with respect to the Borrower and its Subsidiaries or does not exceed the cost of the property being acquired, developed, constructed, altered, repaired or improved or initial financing thereof, plus the costs incurred for delivery installation, maintenance programs and items similar to the foregoing and, fees, costs and expenses incurred in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; <u>provided</u> that (A) such Lien is not created in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (B) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary other than proceeds and products of the property covered by such Lien, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided by any Person may be cross-collateralized to other financings of such type provided by such Person or its affiliates) and (C) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof other than by an amount equal to accrued and unpaid interest, premiums (including tender premiums thereon), plus underwriting discounts or other amount paid, and fees, commissions and expenses (including upfront fees, original issue discount or initial yield payments) incurred in connection with any such extension, renewal or replacement and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Liens to secure obligations arising under Swap Contracts, to the extent permitted hereunder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Liens arising out of deposits or pledges by any Subsidiary of cash, securities, portfolio investments or other property into collateral trusts, reinsurance trusts or other collateral or escrow accounts with or for the benefit of ceding companies or insurance regulators of such Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Liens securing Debt arising under Permitted Repo and Securities Lending Agreements; <u>provided</u> that no such Lien shall extend to or cover any property or assets other than the securities subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) leases, subleases, licenses and sublicenses granted to others and not interfering in any material respect with the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Liens arising from Uniform Commercial Code financing statements filed with respect to Operating Leases, and consignments and/or bailments arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) (A) Liens arising from pledges or deposits of cash, securities or portfolio investments made by any Subsidiary that is a Regulated Insurance Company (x) as a condition to obtaining or maintaining any licenses issued to it by any Applicable Insurance Regulatory Authority or (y) as otherwise required to comply with the requirement of applicable insurance Laws, or (B) Liens, in case of a Regulated Insurance Company organized under Maltese laws, arising from operation of Law, in respect of its liability from its insurance business, including insurance claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) Liens on assets pledged, deposited into an account or trust or otherwise allocated as a separate account in connection with, and securing or specifically available to satisfy obligations under, a Policy, Reinsurance Agreement or Retrocession Agreement, in an amount reasonable and as required under the terms of such Policy, Reinsurance Agreement or Retrocession Agreement (or the documentation related thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) Liens securing Debt permitted under Section 7.01(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) rights of setoff or banker's Liens on deposits of cash in favor of banks or other depository institutions maintained in the ordinary course of business, but not securing any Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) Liens arising in the ordinary course of business on custody, securities or commodities accounts in favor of the entity at which such accounts are maintained, but not securing any Debt for borrowed money other than Debt incurred in connection with or to facilitate the settlement of the purchase or sale of securities in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) Liens of a collecting bank arising under Section 4-208 of the Uniform Commercial Code on items in the course of collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) Liens incurred in connection with the collection or disposition of delinquent accounts receivable in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) Liens on any cash earnest money deposit made by the Borrower or any Subsidiary in connection with any letter of intent or acquisition agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) any Lien in favor of any Credit Party securing intercompany obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) Liens that are contractual rights of setoff incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) Liens securing the Obligations in favor of the holders of all such Obligations ratably;

(xxviii)Liens on Securitization Assets incurred in connection with a Qualified Securitization Facility, including Liens on such receivables resulting from precautionary Uniform Commercial Code filings or from re-characterization or any such sale as a financing or a loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) Liens on assets of the Borrower and its Subsidiaries not otherwise permitted above; <u>provided</u> that the sum of (x) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to this clause (xxix), plus (y) the aggregate principal amount of Unsubordinated Debt shall not exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

**Section 7.03 <u>Investments</u>**. The Borrower will not, and will not permit any Subsidiary to, make any Investment in any Person that is not (or that upon consummation of such Investment will not be) a direct or indirect Subsidiary of the Borrower, unless, at the time of making such Investment, after giving pro forma effect thereto: (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower.

**Section 7.04 <u>Non-OC Asset Sales and Non-OC Reinsurance Transactions</u>**. The Borrower will not, and will not permit any Subsidiary to, make any Non-OC Asset Sale or Non-OC Reinsurance Transaction, other than any Non-OC Asset Sale or Non-OC Reinsurance Transaction for fair market value (determined in good faith by the Borrower) and for which at least 75% of the consideration shall be in the form of (x) cash or cash equivalents and/or (y) assets useful in the business of the Borrower or any Subsidiary.

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**Section 7.05 <u>Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries</u>**. The Borrower will not, and will not permit any Subsidiary to (x) merge, amalgamate, dissolve, liquidate, consolidate with or into another Person or (y) Dispose of (whether in one transaction or in a series of transactions) (1) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person (other than the replacement of assets in its investment portfolio), other than (A) any sale of Securitization Assets or related assets in connection with any Qualified Securitization Facility or (B) any Disposition of an account receivable in connection with the collection or compromise thereof in the ordinary course of business or consistent with industry practice or in bankruptcy or similar proceedings or (2) all or substantially all of the Equity Interests of any Material Subsidiary, except that, if no Default has occurred and is continuing or would result therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower or Subsidiary may merge or amalgamate with any one or more Subsidiaries (including a merger or amalgamation, the purpose of which is to reorganize the Borrower or such Subsidiary in a new jurisdiction in accordance with Section 7.05(vi)); <u>provided</u> that (A) when the Borrower is merging or amalgamating with any of its Subsidiaries, the Borrower shall be the continuing or surviving Person; and (B) when a Credit Party is merging or amalgamating with a Subsidiary that is not a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or Subsidiary may merge, amalgamate or consolidate with any Person to consummate an Investment not prohibited by this Agreement; <u>provided</u> that (A) in the case of a merger, amalgamation or consolidation of the Borrower, the Borrower shall be the continuing or surviving Person; and (B) in the case of a merger, amalgamation or consolidation involving a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or dissolution or otherwise) to any other Subsidiary; <u>provided</u> that, if the transferor in such a transaction is a Credit Party, (A) the transferee either (x) shall be the Borrower or (y) shall be (or shall be designated by the Borrower as) another Credit Party and (B) in the case of the Disposition of Equity Interests of a Subsidiary, such Equity Interests may be Disposed of in accordance with Section 7.05(iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to compliance with Section 6.12, the Borrower or Subsidiary may Dispose of the Equity Interests of a Subsidiary to another Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Subsidiary may liquidate or dissolve (and Dispose of its assets in respect of its Equity Interests in connection therewith) if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower or a Subsidiary may change its legal form or jurisdiction of incorporation or formation, including by conversion or merger, if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders; <u>provided</u> that, in the case of such change of legal form of (A) the Borrower, the continuing entity shall remain the Borrower; and (B) a Guarantor, the continuing entity shall remain (or shall become) a Guarantor;

<u>provided</u> that, for the avoidance of doubt, nothing in this Section 7.05 shall be deemed to limit, prohibit or restrict the Borrower or any Subsidiary from entering into, amending or modifying any Policy, any Reinsurance Agreement or any Retrocession Agreement or providing collateral security to the extent permitted by Section 7.02(xvii).

**Section 7.06 <u>Restricted Payments</u>**. The Borrower will not, and will not permit any Subsidiary to, declare or make any Restricted Payment, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Subsidiary may declare and make Restricted Payments to any Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of such Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower and each Subsidiary may declare and make Restricted Payments payable solely in common Equity Interests of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Subsidiary may declare and make Restricted Payments to (x) the Borrower or (y) any other Subsidiary which is a direct or indirect parent company of such Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new common Equity Interests if after giving effect to such Restricted Payment on a pro-forma basis no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower may (and any Subsidiary may make Restricted Payments as shall be required for the Borrower to) make Restricted Payments to the Initial Borrower in an amount sufficient to allow (x) the Initial Borrower to pay fees, expenses and indemnities pursuant to the Management Agreement, so long as, solely with respect to the payment of such fees, no Default or Event of Default shall have occurred and be

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continuing (it being understood that, for so long as any Default or Event of Default has occurred and is continuing, such fees may continue to accrue and any such accrued fees may be paid upon any and all Defaults and Events of Default ceasing to exist), and (y) to pay general corporate operating and overhead costs and expenses (other than taxes) incurred by the Initial Borrower in the ordinary course of business, to the extent attributable to the ownership or operation of the Borrower and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower and each Subsidiary may declare and make any Restricted Payments after the date hereof in an amount not to exceed €5,000,000 in the aggregate in any calendar year (with unused amounts in any calendar year being permitted to be carried over and made in any succeeding calendar year), in each case if after giving effect to any such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment and (2) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Borrower and any Subsidiary may declare and make any Restricted Payment if after giving effect to such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment, (2) the Borrower is in compliance with the covenants set forth in Section 7.11 and (3) the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, shall be no greater than 15%.

This Section 7.06 shall not prohibit the payment of a Restricted Payment if such Restricted Payment is made within 60 days of the declaration thereof <u>provided</u> such Restricted Payment was not prohibited by this Section 7.06 at the time of its declaration.

**Section 7.07 <u>Transactions with Affiliates</u>**. The Borrower will not, and will not permit any Subsidiary to, enter into any transaction with any Affiliate of the Borrower or any Subsidiary involving payment of consideration in excess of the greater of (i) €2,000,000 and (ii) 2.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, other than any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transactions not materially less favorable to the Borrower or any Subsidiary than would be obtained in a comparable arm's-length transaction with a Person that is not an Affiliate of the Borrower taking into account the totality of the relationships between the parties involved (including other transactions that may be or have been particularly favorable or advantageous to the Borrower and its Subsidiaries) as determined by the Borrower in good faith;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) insurance transactions, intercompany pooling and other reinsurance transactions entered into in the ordinary course of business, including any Reinsurance Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) transactions (x) between or among the Borrower and its Subsidiaries, (y) between or among Subsidiaries and (z) between or among any of the foregoing and their respective Affiliates, in each case, that are not otherwise prohibited hereunder and, in the case of clause (z), so long as such transactions are upon fair and reasonable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Restricted Payment permitted by Section 7.06;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) arrangements for indemnification payments for directors and officers of the Borrower and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) intercompany transactions between or among the Borrower and its Subsidiaries and between or among Subsidiaries, relating to the (A) provision of management services and other corporate overhead services, (B) provision of personnel to other locations within the Borrower's consolidated group on a temporary basis and (C) provision, purchase or lease of services, operational support, assets, equipment, data, information and technology, that, in the case of any such intercompany transaction referred to in this clause (vi), are subject to reasonable reimbursement or cost-sharing arrangements (as determined in good faith by the Borrower), which reimbursement or cost-sharing arrangements may be effected through transfers of cash or other assets or through book-entry credits or debits made on the ledgers of each involved Subsidiary; <u>provided</u> that any such intercompany transaction is either (x) entered into in the ordinary course of business or (y) otherwise entered into pursuant to the reasonable requirements of the business of the Borrower and the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements and other compensation arrangements, options to purchase Equity Interests of the Borrower or the Subsidiaries pursuant to restricted stock plans, long-term incentive plans, stock appreciation rights plans, participation plans or similar employee benefits plans, pension plans or similar plans or agreements or arrangements approved by the Board of Directors or the investment committee (or other applicable committee) of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) loans or advances to employees, officers or directors of the Borrower or any Subsidiary (or any direct or indirect parent of the Borrower) in the ordinary course of business, in an aggregate amount outstanding at any time not in excess of €200,000 (without giving effect to the forgiveness of any such loan);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the payment of reasonable and customary compensation (including fees, benefits, severance, change of control payments and incentive arrangements) to, and employee benefit arrangements, including split-dollar insurance policies, and indemnity or similar arrangements provided on behalf of, directors, officers, employees and agents of the Borrower or the Subsidiaries (or any direct or indirect parent of the Borrower) whether by charter, bylaw, statutory or contractual provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the existence of, and the performance of obligations of the Borrower or the Subsidiaries under the terms of any agreement to which the Borrower or any Subsidiary is a party as of or on the Effective Date set forth on Schedule 7.07, as these agreements may be amended, modified, supplemented, extended or renewed from time to time; <u>provided</u> that any future amendment, modification, supplement, extension or renewal entered into after the Effective Date shall be permitted to the extent that its terms, taken as a whole, are not more disadvantageous to the Lenders in any material respect, as determined in good faith by the Borrower or such Subsidiary, than the terms of the agreements in effect on the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any agreement between any Person and an Affiliate of such Person existing at the time such Person is acquired by or merged with or into or consolidated with the Borrower or any Subsidiary; <u>provided</u> that such agreement was not entered into in contemplation of such acquisition, merger or consolidation, or any amendment thereto (so long as any such amendment is not disadvantageous in any material respect to the Lenders, as determined in good faith by the Borrower or such Subsidiary, when taken as a whole as compared to the applicable agreement as in effect on the date of such acquisition or merger);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any purchases by the Borrower's Affiliates of Debt of the Borrower or any of its Subsidiaries (other than the Loans) the majority of which Debt is placed with Persons who are not Affiliates and payments of principal and interest on such Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any issuance or sale of Equity Interests (other than Disqualified Equity Interests) to Affiliates of the Borrower and the granting of registration and other customary rights in connection therewith or any contribution to the Equity Interests of the Borrower or any Subsidiary that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) transactions in which the Borrower or any Subsidiary, as the case may be, delivers to the Administrative Agent a letter from an independent financial advisor stating that such transaction is fair to the Borrower or such Subsidiary from a financial point of view or stating that the terms are not materially less favorable taken as a whole than those that might reasonably have been obtained by the Borrower or such Subsidiary in a comparable transaction at such time on an arms' length basis from a Person that is not an Affiliate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) any transaction with an Affiliate where the only consideration paid by the Borrower or any Subsidiary is Equity Interests of the Borrower or such Subsidiary (other than Disqualified Equity Interests) that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the payment of all fees and expenses in connection with the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) any merger, consolidation or reorganization of the Borrower or any Subsidiary (otherwise permitted by this Agreement) with an Affiliate of the Borrower solely for the purpose of (x) forming or collapsing a holding company structure or (y) reincorporating the Borrower or such Subsidiary in a new jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) transactions between the Borrower or any Subsidiary and any Person that is an Affiliate solely because one or more of its directors is also a director of the Borrower or such Subsidiary or any direct or indirect parent thereof; <u>provided</u> that such director abstains from voting as a director of the Borrower or such Subsidiary or any direct or indirect parent thereof, as the case may be, on any matter involving such other Person.

**Section 7.08 <u>Certain Restrictive Agreements</u>**. The Borrower will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that, directly or indirectly limits the ability of any Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer property to the Borrower; <u>provided</u> that the foregoing shall not apply to (i) [reserved], (ii) Contractual Obligations with a Governmental Authority, (iii) Contractual Obligations entered into by a joint venture with respect to which the Borrower or a Subsidiary is a joint venturer, (iv) customary limitations contained in agreements relating to the sale of a Subsidiary or its assets pending such sale; <u>provided</u> that such limitations apply only to the Subsidiary or such assets that is to be sold and such sale is permitted hereunder, (v) limitations imposed by any agreement relating to secured Debt permitted by this Agreement, any transaction giving rise to a Lien permitted by this Agreement or any Swap Contract, in each case if such limitations apply only to the property or assets securing or encumbered by such Debt, transaction (or obligation thereunder) or Swap Contract, (vi) limitations contained in or arising under indentures or debt instruments or other debt arrangements incurred or preferred stock issued by the Borrower or any Subsidiary subsequent to the date hereof in compliance with Section 7.01 that are not more restrictive, taken as a whole (as determined in good faith by the Borrower), than those applicable to the Borrower and the Subsidiaries in this Agreement, (vii) [reserved], (viii) limitations created in connection with any Qualified Securitization Facility that, in the good faith determination of the Board of Directors of the Borrower, are necessary or advisable to effect such Qualified Securitization Facility and (ix) any encumbrance, condition or restriction with respect to a Person or assets pursuant to an agreement in effect on or before the date on which such Person became a Subsidiary or was acquired by, merged into or consolidated with the Borrower or a Subsidiary or such assets were acquired by the Borrower or any Subsidiary; <u>provided</u> that any such encumbrance or restriction shall not extend to any Person or the assets or property of the Borrower or any other Subsidiary other than the Person and its Subsidiaries or the assets and property so acquired and that, in the case of Debt, was permitted to be incurred pursuant to this Agreement.

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**Section 7.09 <u>Use of Proceeds</u>**. The Borrower will not, and will not permit any Subsidiary to, directly or, to the knowledge of the Borrower, indirectly, use the proceeds of any Borrowing, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U or Regulation X of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund Debt originally incurred for such purpose, in each case in violation of applicable margin regulations. The Borrower will not use (or permit any of its Subsidiaries to use) the proceeds of any Borrowing (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Embargoed Jurisdiction, in each case under this clause (ii) in violation of any Sanctions or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 7.10 <u>Change in Nature of Business, Organizational Documents and Fiscal Year</u>**. The Borrower will not, and will not permit any Subsidiary to, engage, directly or indirectly through its Subsidiaries, to any material extent in any business other than (i) the Insurance Business, (ii) any business engaged in by the Borrower or its Subsidiaries on or before the Effective Date or (iii) any business reasonably related or incidental thereto or which is financial in nature. The Borrower shall not, and shall not permit any Subsidiary to, amend or modify its respective Organizational Documents (x) if such amendment or modification would prohibit the Borrower from prepaying the Loans in accordance with Section 2.03(b) or (y) in a manner that is materially adverse (taken as a whole) to the interests of the Lenders, in their capacity as such. The Borrower shall not, and shall not permit any Subsidiary to, change the last day of its fiscal year from December 31 of each year without providing the Administrative Agent prior written notice.

**Section 7.11 <u>Financial Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Consolidated Net Worth</u>*. The Borrower shall not permit the Consolidated Net Worth, calculated as of the last day of any fiscal quarter of the Borrower and as reflected in the financial statements furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, to be less than the sum of (A) an amount equal to 75.0% of the Borrower's and its Subsidiaries' Consolidated Net Worth as of the Effective Date, (B) an amount equal to the sum of 50% of the Consolidated Net Income (to the extent positive) of the Borrower and its Subsidiaries for each fiscal quarter (without reduction for any Consolidated Net Income (to the extent negative) in any quarter), commencing with the first fiscal quarter of the Borrower after the Effective Date and (C) an amount equal to 50% of the net cash proceeds contributed to the Borrower or any of its Subsidiaries (other than contributions of cash proceeds made by the Borrower or any of its Subsidiaries) from the issuance and sale of Equity Interests of the Borrower and any of its Subsidiaries after the Effective Date (other than the issuance to the Borrower or any other Subsidiary).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Consolidated Total Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Total Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 40%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first full fiscal quarter after the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Consolidated Senior Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Senior Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 35%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first full fiscal quarter after the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Interest Coverage Ratio</u>.* The Borrower shall not permit the Interest Coverage Ratio of the Borrower and its Subsidiaries to be less than 2.00:1.00 for the most recently ended four consecutive fiscal quarters of the Borrower for which financial statements have been delivered or furnished pursuant to Section 6.01(i) or Section 6.01(ii), as applicable (commencing with the last day of the first full fiscal quarter after the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Borrower Cure Right</u>*. Notwithstanding the foregoing, in the event that the Borrower shall have failed to comply with any of the financial covenants set forth in clauses (a), (b), (c) and (d) of this Section 7.11 in any fiscal quarter for which any such financial covenant is tested, the Borrower shall have the right (the "<u>Cure Right</u>") to, at any time after such failure occurs until the day on which financial statements of the Borrower are required to be delivered for such fiscal quarter or fiscal year, as applicable, issue for cash (or otherwise receive cash contributions in respect of) common capital stock (other than Disqualified Equity Interests) of the Borrower (the aggregate amount of such issuances and distributions, the "<u>Cure Amounts</u>"), and upon receipt by the Borrower of such Cure Amounts, compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period (and, in the case of compliance with Section 7.11(d), such period and any subsequent period that includes such period) shall be recalculated giving effect to the following pro forma adjustment: the Consolidated Net Worth and Consolidated Adjusted EBITDA shall be increased, solely for the purpose of determining compliance with Sections 7.11(a), (b), (c) and (d), by an amount equal to the applicable Cure Amounts, and the use of proceeds therefrom will be disregarded for all other purposes under this Agreement (including calculating Consolidated Net Worth and Consolidated Adjusted EBITDA for purposes of determining basket levels and other items governed by reference to Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio and Interest Coverage Ratio). If, after giving effect to the foregoing recalculations, the Borrower is in compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period, then the applicable breach of Sections 7.11(a), (b), (c) and/or (d) that had occurred shall be deemed cured for all purposes. The Cure Right shall not be exercised more than 4 times during the term of this Agreement, shall not be exercised more than 2 times during any consecutive period of four fiscal quarters of the Borrower, and shall, with respect to any applicable period, be no greater than the amount required for purposes of complying with Sections 7.11(a), (b), (c) and (d) with respect to such period. Neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans, terminate the Commitments or exercise any other remedy under the Loan Documents or applicable law on the basis of an Event of Default caused by the

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failure to comply with Sections 7.11(a), (b), (c) or (d) until after the Borrower's ability to cure has lapsed and Borrower has not exercised the Cure Right. The Borrower hereby agrees to amend this Agreement to remove this Section 7.11(e) (and all references to the Cure Right and Cure Amount) prior to the filing of this Agreement in connection with the initial public offering of the Borrower or any of its Subsidiaries.

**ARTICLE VIII** 

**EVENTS OF DEFAULT AND REMEDIES** 

**Section 8.01** <u>Events of Default</u>. Any of the following shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Non-Payment</u>*. The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall fail to pay any interest on any Loan, any fee or any other amount (other than an amount referred to in clause (a)(i) of this Section) payable under this Agreement or under any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five or more Business Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Representations and Warranties</u>*. Any representation or warranty made or deemed made by or on behalf of any Credit Party in or pursuant to this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Agreement or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Specific Covenants</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.03(i), 6.04(i) (with respect to such Credit Party's existence) and 6.04(ii) or in Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Other Defaults</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clauses (a), (b) or (c) of this Section or in Section 6.07 of this Agreement in respect of Debt or Swap Contracts in circumstances where the failure to pay or perform the same would not give rise to an Event of Default under clause (e) of this Section) and such failure shall continue unremedied for a period of 30 or more days after notice thereof by the Administrative Agent to the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Cross-Default</u>*. The Borrower or any Subsidiary (other than any Securitization Subsidiary) shall (i) fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Debt (other than Debt under the Loan Documents) having an aggregate principal amount of more than the Threshold Amount in each case beyond the applicable grace period with respect thereto, if any; (ii) fail to observe or perform any other agreement or condition relating to any Debt having an aggregate principal amount of more than the Threshold Amount or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Debt (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Debt in an aggregate principal amount of more than the Threshold Amount to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Debt in an aggregate principal amount of more than the Threshold Amount to be made, prior to its stated maturity; <u>provided</u> that this clause (e)(ii) shall not apply to (A) secured Debt that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Debt, if such sale or transfer is permitted or not restricted hereunder and such Debt is repaid when required under the documents providing for such Debt or to the mere declaration or exercise of redemption rights which declaration or exercise is at the sole option of the holder of such Debt and (B) any voluntary prepayment, redemption, repurchase, conversion or settlement with respect to any debt security pursuant to its terms; or (iii) fail to make when due one or more required payments under one or more Swap Contracts (as a result of the occurrence of an "Early Termination Date" (as defined in such Swap Contract)) arising from an "Event of Default" (as defined in such Swap Contract) with respect to which the Borrower or Subsidiary is a "Defaulting Party" (as defined in such Swap Contract), which payments are in an aggregate principal amount exceeding the Threshold Amount; <u>provided</u> that, if any failure to pay or perform described in the foregoing clauses (i), (ii) or (iii) shall be cured by the Borrower or Subsidiary (as applicable), or waived by the holders of such Debt, in each case prior to the exercise of any remedies under Section 8.02, then the Event of Default under this Section 8.01(e) by reason of such failure to pay or perform shall be deemed likewise to have been thereupon cured or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Insolvency Proceedings, Etc</u>.* The occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (A) liquidation, reorganization, rehabilitation or other relief in respect of the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or its respective debts, or of a substantial part of its respective assets, under any Debtor Relief Law now or hereafter in effect or (B) the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its respective assets, and, in any such case, such proceeding or petition shall continue undismissed or unstayed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall (A) voluntarily commence any proceeding or file any petition seeking liquidation, rehabilitation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (B) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (f)(i) of this Section, (C) apply for or consent to the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or for a substantial part of its assets, (D) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (E) make a general assignment for the benefit of creditors or (F) take any corporate action for the purpose of effecting any of the foregoing;

<u>provided</u> that, for purposes of clarity, no merger, dissolution, liquidation, consolidation or disposition permitted or not restricted by Section 7.05 (other than a merger, dissolution, liquidation, consolidation or disposition under any Debtor Relief Laws) shall constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Inability to Pay Debts; Attachment</u>.* The Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall become unable, admit in writing its inability or fail generally to pay its debts as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Judgments</u>*. The entry against the Borrower or any Subsidiary (other than any Securitization Subsidiary) of (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and does not deny coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect, and, in either case, there is a period of 45 consecutive days during which such judgment or order remains unpaid, undischarged, unvacated, unbonded or unstayed pending appeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>ERISA</u>*. The occurrence of an ERISA Event which results in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Change of Control</u>*. There occurs any Change of Control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *<u>Invalidity of Loan Documents</u>*. Any material provision of any Loan Document, at any time after its execution and delivery, ceases to be in full force and effect; or any Credit Party or any other Person contests in writing the validity or enforceability of any provision of any Loan Document; or any Credit Party denies in writing that it has any or further liability or obligation under any Loan Document, or purports in writing to revoke, terminate or rescind any Loan Document, in each case for any reason other than as expressly permitted hereunder or thereunder or in satisfaction in full of all non-contingent Obligations.

**Section 8.02 <u>Remedies Upon Event of Default</u>**. If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) exercise on behalf of itself and the Lenders, all rights and remedies available to it and the Lenders under the Loan Documents;

<u>provided</u> that, upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, in each case without further act of the Administrative Agent or any Lender.

**Section 8.03 <u>Application of Funds</u>**. After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations shall, subject to the provisions of Section 2.11, be applied by the Administrative Agent in the following order:

FIRST, to payment of that portion of the Obligations constituting fees, indemnities and expenses (other than principal and interest but including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

SECOND, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;

THIRD, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them;

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FOURTH, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and

LAST, the balance, if any, after all of the Obligations have been paid in full, to the Borrower or as otherwise required by Law.

**ARTICLE IX** 

**ADMINISTRATIVE AGENT** 

**Section 9.01 <u>Appointment and Authority</u>**. Each of the Lenders hereby irrevocably appoints Bank of Montreal to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. Except to the extent expressly set forth in Section 9.06, the provisions of this Article IX are solely for the benefit of the Administrative Agent and the Lenders and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Document (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. Without limiting the foregoing, each Lender authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.

**Section 9.02 <u>Rights as a Lender</u>**. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "<u>Lender</u>" or "<u>Lenders</u>" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any of the Borrower or its Subsidiaries or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

**Section 9.03 <u>Exculpatory Provisions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers (and shall be fully protected in so refraining from acting), except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender; <u>provided</u> that the Administrative Agent shall not be required to take any action that, (x) in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Laws, (y) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the Lenders with respect to such action or (z) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; <u>provided</u>, <u>further</u>, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Credit Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Credit Party to perform its obligations hereunder or thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall be deemed not to have knowledge of any Default or the event or events that give or may give rise to any Default unless and until the Borrower or any Lender shall have given written notice thereof (stating that it is a "notice of default") to the Administrative Agent describing such Default and such event or events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty, representation or other information made or supplied in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or the adequacy, accuracy and/or completeness of the information contained therein, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing in this Agreement or any other Loan Document shall require the Administrative Agent or any of its Related Parties to carry out any "know your customer" or other checks in relation to any Person on behalf of any Lender, and each Lender confirms to the Administrative Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Administrative Agent or any of its Related Parties.

**Section 9.04 <u>Reliance by Administrative Agent</u>**. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless an officer of the Administrative Agent responsible for the transactions contemplated hereby shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made by or on behalf of any Credit Party in connection with this Agreement or any other Loan Document. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts

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selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 10.06 and (ii) may rely on the Register to the extent set forth in Section 10.06(c).

**Section 9.05 <u>Delegation of Duties</u>**. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any subagents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

**Section 9.06 <u>Resignation and Removal of Administrative Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor Administrative Agent with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld); <u>provided</u> that no Ineligible Assignee may be appointed successor Administrative Agent without the written consent of the Borrower. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Resignation Effective Date</u>"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld). Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date. In the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment by the Resignation Effective Date, the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; <u>provided</u> that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. Prior to any retiring Administrative Agent's resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

**Section 9.07 <u>Non-Reliance on Administrative Agent and Other Lenders</u>**.<u> </u>Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

**Section 9.08 <u>No Other Duties, Etc</u>**. Anything herein to the contrary notwithstanding, neither BMO Capital Markets Corp. nor RBC Capital Markets, LLC shall not have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents in its capacity as a Joint Lead Arranger or a Joint Bookrunner, except in its capacity as the Administrative Agent or a Lender hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.06 and 10.04) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.06 and 10.04.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

**Section 9.10 <u>Posting of Communications</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the "<u>Approved Electronic Platform</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED "AS IS" AND "AS AVAILABLE". THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, "<u>APPLICABLE PARTIES</u>") HAVE ANY LIABILITY TO ANY CREDIT PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE ADMINISTRATIVE AGENT'S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.

"<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent or any Lender by means of electronic communications pursuant to this Section 9.10, including through an Approved Electronic Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender's email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the Lenders and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent's generally applicable document retention procedures and policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

**Section 9.11 <u>Certain ERISA Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that at least one of the following is and will continue to be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans or the Commitments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 9623 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of sub-section (a) of Part I of PTE 84-14 are satisfied, and will continue to be satisfied, with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) such Lender has not provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that none of the Administrative Agent or any Arranger is a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

**ARTICLE X** 

**MISCELLANEOUS** 

**Section 10.01 <u>Amendments, Etc</u>**. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; <u>provided</u> that (x) the Administrative Agent and the Borrower may amend, modify or supplement this Agreement and any other Loan Document (1) to cure any ambiguity, omission, typographical error, mistake, defect or inconsistency if such amendment, modification or supplement does not adversely affect the rights of the Administrative Agent or any Lender, to comply with local law or the advice of local counsel, (2) to cause one or more Loan Documents to be consistent with other Loan Documents or (3) to implement the amendment referenced in the last sentence of Section 7.11(e) and (y) no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) waive any condition set forth in Section 4.01 without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) extend or increase the Commitment of any Lender without the written consent of such Lender;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) postpone any date fixed by this Agreement or any other Loan Document for any payment (but not any prepayment) of principal as set forth in Section 2.04, interest, fees or other amounts due to the Lenders (or any of them) without the written consent of each Lender directly affected thereby (it being understood that no amendment, modification or waiver of, or consent to departure from, any condition precedent, covenant, Default, Event of Default, waiver of default interest or mandatory prepayment shall constitute a postponement of any date scheduled for the payment of principal or interest or an extension of the final maturity of any Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce the principal of, or the rate of interest specified herein on, any Loan or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; <u>provided</u> that (A) any amendment to the financial covenant definitions, the financial ratios or any component thereof in this Agreement, in each case shall not constitute a reduction in the interest rates or the fees for purposes of this clause (iv) and (B) only the consent of the Required Lenders shall be required to amend the definition of "Default Rate" or to waive any obligation of the Borrower to pay interest at the Default Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) without the written consent of each Lender directly affected thereby, reduce the principal amount of, or extend the scheduled date of any amortization with respect to, any Loan, in each case as provided in Section 2.04(a) or change the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change the definition of "Applicable Percentage", Section 2.11, Section 8.03 or any other provision of this Agreement in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) change any provision of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all or substantially all of the aggregate value of the Guaranty, except as expressly permitted by the Loan Documents, without the written consent of each Lender;

and <u>provided</u> <u>further</u>, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document. Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, to the fullest extent permitted by applicable Laws, such Lender will not be entitled to vote in respect of

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amendments and waivers hereunder and the Commitment and the outstanding Loans of such Lender hereunder will not be taken into account in determining whether the Required Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of "Required Lenders" will automatically be deemed modified accordingly for the duration of such period); <u>provided</u> that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender.

**Section 10.02 <u>Notices; Effectiveness; Electronic Communication</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Notices Generally</u>*. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as expressly provided in Section 6.01 and subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower).

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Electronic Communications</u>*. Notices and other communications to the Lenders hereunder may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures approved by the Administrative Agent (including e-mail and Internet or intranet websites); <u>provided</u> that the foregoing shall not apply to notices to any Lender pursuant to

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Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Approved Electronic Platform shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the Approved Electronic Platform; <u>provided</u> that, for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Change of Address, Etc</u>.* The Borrower and the Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Approved Electronic Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender's compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the Approved Electronic Platform and that may contain material non-public information with respect to the Borrower or their securities for purposes of United States Federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Reliance by Administrative Agent and Lenders</u>*. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic or electronic Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent and the Lenders and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

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**Section 10.03 <u>No Waiver; Cumulative Remedies; Enforcement</u>**. No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein <u>provided</u>, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Borrower shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 9.01 for the benefit of all the Lenders; <u>provided</u> that the foregoing shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.11), or (iii) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to the Borrower under any Debtor Relief Law; and <u>provided further</u> that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (A) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 9.01 and (B) in addition to the matters set forth in clauses (ii) and (iii) of the preceding proviso and subject to Section 2.11, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

**Section 10.04 <u>Expenses; Indemnity; Damage Waiver</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Costs and Expenses</u>*. The Borrower shall pay, subject to the occurrence of the Initial Loan Borrowing Date, (i) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent and the Agent-Related Persons (without duplication) (including the reasonable, documented and invoiced fees and disbursements of one firm of counsel for the Administrative Agent and the Agent-Related Persons, taken as a whole, and if necessary, of a single firm of local counsel in each applicable jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent), in connection with the syndication of the term loan facility provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other

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Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof, and (ii) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent or any Lender in connection with the enforcement or protection of its rights under this Agreement and the other Loan Documents; <u>provided</u> that, pursuant to this clause (ii), the Borrower shall not be required to reimburse such out-of-pocket expenses of more than one firm of counsel to the Administrative Agent and the Lenders, taken as a whole (and if necessary, a single firm of local counsel to the Administrative Agent and the Lenders, taken as a whole, in each relevant jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions)) and, in the case of any actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected persons similarly situated taken as a whole) but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify the Administrative Agent, each Arranger, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including reasonable, documented and invoiced fees and disbursements of one firm of counsel to the Indemnitees taken as a whole and, if necessary, of a single firm of local counsel in each applicable jurisdiction for the Indemnitees taken as a whole (and, solely in the case of an actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to all affected Indemnitees, taken as a whole), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent), to which any such Indemnitee may become subject, arising out of, or in connection with the financing contemplated hereby or the use of proceeds thereof or any actual or prospective claim, litigation, investigation or proceeding (a "<u>Proceeding</u>") relating to any of the foregoing, regardless of whether any such Indemnitee is a party thereto and whether or not such Proceeding was brought by the Borrower, its affiliates or equity holders, creditors or any other third party; <u>provided</u> that the foregoing indemnity will not, as to any Indemnitee, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, nonappealable judgment of a court of competent jurisdiction to (x) have resulted from (i) the willful misconduct, bad faith or gross negligence of such Indemnitee or any of such Indemnitee's Related Party (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (ii) a material breach of the funding obligations under this Agreement or the other Loan Documents of such Indemnitee or any Related Parties of such Indemnitee acting at such Indemnitee's direction or successors of any of the foregoing (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (iii) any Proceeding that does not arise from any act or omission by the Borrower or any Subsidiaries and that is brought by any Indemnitee against any other Indemnitee (other than any claims against the Administrative Agent or the Arrangers in their capacity as such but subject to clauses (x)(i), (x)(ii) and (x)(iii) above) or (y) have resulted from any agreement governing any settlement effected without the Borrower's prior written consent (which consent shall not be unreasonably withheld or delayed) but if settled with the Borrower's written consent or if there is a final, nonappealable judgment in any such Proceeding, the Borrower agrees to indemnify and

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hold harmless each indemnified person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with, and to the extent required by, this Section 10.04(b). Each Indemnitee shall be obligated to refund and return any and all amounts paid by the Borrower (or on the Borrower's behalf) under this Section 10.04(b) to such Indemnitee to the extent such Indemnitee is not entitled to payment of such amounts in accordance with the terms of this Section 10.04(b). None of the Indemnitees or the Borrower shall be liable for any special, indirect, consequential or punitive damages in connection with this Agreement or the Loans (except to the extent of its indemnity or reimbursement obligations hereunder in respect of any losses, claims, damages, liabilities and expenses incurred or paid by an Indemnitee to a third party). This Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Reimbursement by Lenders</u>.* To the extent that the Borrower for any reason fails to pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party thereof (but without limiting the obligation of the Borrower under such subsection), each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) in its capacity as such, or against any Related Party thereof acting for the Administrative Agent (or any such sub-agent) in connection with such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Waiver of Consequential Damages, Etc</u>.* To the fullest extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Payments</u>.* All amounts due under this Section shall be payable not later than 10 Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Survival</u>.* The agreements in this Section 10.04 shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

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**Section 10.05 <u>Payments Set Aside</u>**. To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (i) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (ii) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. The obligations of the Lenders under clause (ii) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

**Section 10.06 <u>Successors and Assigns</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Successors and Assigns Generally</u>*. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Assignments by Lenders</u>.* Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); <u>provided</u> that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Minimum Amounts</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time owing to the assigning Lender or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (or the Commitments of such assigning Lender, to the extent such Commitments have not been terminated pursuant to Section 2.01), determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than €1,000,000 or other than in €1,000,000 increments thereabove unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Proportionate Amounts</u>*. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Required Consents</u>*. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) and subsection (b)(v) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the written consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund and notice thereof is provided to the Administrative Agent and the Borrower; <u>provided</u> that the Borrower shall be deemed to have consented to any such assignment unless they shall object thereto by written notice to the Administrative Agent within ten Business Days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Assignment and Assumption</u>*. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of €3,500; <u>provided</u> that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>No Assignment to Certain Persons</u>*. No such assignment shall be made (A) to the Borrower or any of the Borrower's Affiliates or Subsidiaries other than in accordance with Section 10.06(b)(vii), (B) to any Defaulting Lender or any of their respective subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), (C) to a natural person or (D) absent the written consent of the Borrower (which consent may be given or withheld at the Borrower's sole discretion), to any Person that was an Ineligible Assignee as of the applicable Trade Date. For the avoidance of doubt, with respect to any assignee that becomes an Ineligible Assignee after the Trade Date applicable to its assignment (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), (i) such assignee shall not retroactively be disqualified from having become a Lender pursuant to such assignment and (ii) such assignee will become an Ineligible Assignee in accordance with the definition thereof notwithstanding the consummation of such assignment and the execution by the Borrower of an Assignment and Assumption with respect to such assignee. Notwithstanding the foregoing, any assignment to an assignee that is or becomes an Ineligible Assignee (including any assignment in violation of clause (b)(v)(D)) shall not be void, but the provisions of paragraph (f) below shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Certain Additional Payments</u>*. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment will be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the written consent of the Borrower and the Administrative Agent, the applicable pro-rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro-rata share of all Loans and Commitments in accordance with its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder becomes effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest will be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u> that, except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Assignments to Affiliated Lenders</u>*. Notwithstanding anything to the contrary contained in this Section 10.06 or any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) assignments to the equity holders of the Borrower and their respective affiliates (other than the Borrower and its Subsidiaries) (each, an "<u>Affiliated Lender</u>") shall be permitted subject to the following limitations; <u>provided</u> that an Affiliated Lender that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities and that exercise independent discretion from the private equity business of Altamont (each, a "<u>Debt Fund Affiliate</u>"), will only be subject to the limitations set forth in clause (6):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Affiliated Lenders will not be permitted to (I) receive information provided solely to Lenders by the Administrative Agent or any Lender, (II) attend/participate in conference calls or meetings attended solely by the Lenders and the Administrative Agent, (III) make or bring (other than as a passive participant or recipient of its pro rata benefits of) any claim, in its capacity as a Lender, against the Administrative Agent (except with respect to any rights expressly retained by such Affiliated Lender under this Agreement and the other Loan Documents, which shall not be required to be waived) or (IV) receive advice of counsel to the Administrative Agent or any other Lender (other than counsel to Affiliated Lenders), or challenge the Administrative Agent's or any other Lender's attorney-client privilege;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for purposes of any amendment, waiver or modification of this Agreement or the other Loan Documents or any plan of reorganization or liquidation that in either case does not require the consent of each Lender or does not adversely affect such Affiliated Lender (in its capacity as a Lender) as compared to other Lenders, Loans held by Affiliated Lenders shall be excluded in the determination of any vote by the Required Lenders and shall be deemed not to be outstanding (or shall be deemed to have voted in the same proportion as non-affiliated Lenders voting on such matter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount of Loans under this Agreement purchased by Affiliated Lenders other than Debt Fund Affiliates may not exceed 25% of the outstanding principal amount of all Loans under this Agreement (after giving effect to such purchase);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any purchases by Affiliated Lenders shall require that such Affiliated Lender clearly identify itself as an Affiliated Lender in any Assignment and Assumption in connection with such purchases or sales and each such assignment and assumption shall contain a customary "big boy" representation but there shall be no requirement to make a representation as to the absence of any material non-public information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Loans owned or held by Affiliated Lenders (i) shall be excluded in any determination of a vote by "Required Lenders" and (ii) shall be voted by the Administrative Agent in its discretion in connection with any plan or reorganization in an insolvency proceeding unless such plan affects the holder thereof, in its capacity as such, in a disproportionately adverse manner relative to the treatment of the other Lenders, in which case such Affiliated Lender will not be permitted to vote on matters submitted to Lenders for consideration (including in connection with any plan of reorganization) and their Loans shall be disregarded in determining other Lenders' Commitment and the Applicable Percentages; <u>provided</u> that (A)(i) the commitments or obligations of any Affiliated Lender shall not be increased, (ii) the due dates for payments of interest and scheduled amortization (including at maturity) of any Loans owed to any Affiliated Lender will not be extended and (iii) the amounts owing to any Affiliated Lender will not be reduced, in each instance in clauses (i) through (iii), without the consent of such Affiliated Lender, (B) Affiliated Lenders shall have the right to vote on any amendment, modification, waiver or consent that would require the vote of all Lenders or the vote of all Lenders directly and adversely affected thereby and (C) no amendment, modification, waiver or consent shall affect any Affiliated Lender (in its capacity as a Lender) in a manner that is disproportionate to the effect on any Lender of the same class or that would deprive such Affiliated Lender of its pro rata share of any payments to which it is entitled; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) for purposes of determining whether the Required Lenders have consented to any amendment or waiver under this Agreement or the other Loan Documents, the aggregate principal amount of Loans held by Debt Fund Affiliates will be excluded to the extent in excess of 49.9% of the amount required to constitute the "Required Lenders";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) so long as no Default or Event of Default has occurred and is continuing or would result therefrom, each Lender shall have the right at any time to sell, assign or transfer all or a portion of the Loans owing to it to the Borrower or its Subsidiaries on a non-pro rata basis (<u>provided</u> that each assignment shall be of a uniform, and not varying, percentage of all rights and obligations under and in respect of any applicable Loan), subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower may conduct one or more modified Dutch auctions (each, an "<u>Auction</u>") to repurchase all or any portion of the Loans; <u>provided</u> that (A) notice of the Auction shall be made to all Lenders and (B) the Auction shall be conducted pursuant to such procedures as the Auction Manager may establish which are consistent with this Section 10.06(b)(vii)(B) and the Auction Procedures set forth on Exhibit H and are otherwise reasonably acceptable to the Borrower, the Auction Manager and the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to all repurchases made by the Borrower pursuant to this Section 10.06(b)(vii)(B), (A) the Borrower shall deliver to the Administrative Agent and the Auction Manager a certificate of a Responsible Officer stating that (i) no Default or Event of Default has occurred and is continuing or would result from such repurchase and (ii) as of the launch date of the related Auction and the effective date of any Borrower Assignment and Acceptance, it is not in possession of any information regarding the Borrower or any of its Subsidiaries, the Borrower's ability to perform its Obligations or any other matter that may be material to a decision by any Lender to participate in any Auction or enter into any Borrower Assignment and Acceptance or any of the transactions contemplated thereby that has not previously been disclosed to the Administrative Agent, the Auction Manager and the non-Public Lenders and (B) the assigning Lender and the Borrower shall execute and deliver to the Administrative Agent and the Auction Manager a Borrower Assignment and Acceptance; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Following repurchase by the Borrower or any Subsidiary pursuant to this Section 10.06(b)(vii)(B), the Loans so repurchased shall, without further action by any Person, be immediately and automatically cancelled for all purposes and no longer outstanding (and may not be resold by the Borrower), for all purposes of this Agreement and all other Loan Documents, including (A) the making of, or the application of, any payments to the Lenders under this Agreement or any other Loan Document, (B) the making of any request, demand, authorization, direction, notice, consent or waiver under this Agreement or any other Loan Document or (C) the determination of Required Lenders, or for any similar or related purpose, under this Agreement or any other Loan Document. In connection with the Loans repurchased and cancelled pursuant to this Section 10.06(b)(vii)(B), the Administrative Agent is authorized to make appropriate entries in the Register to reflect any such cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Register</u>.* The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Participations</u>.* Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person, a Defaulting Lender or the Borrower, any of the Borrower's Affiliates or Subsidiaries or an Ineligible Assignee) (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt: (i) each Lender shall be responsible for the indemnity under Section 10.04(c) without regard to the existence of any participation; and (ii) with respect to any participant that becomes an Ineligible Assignee after the Trade Date applicable to its participation (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), such participant shall not retroactively be disqualified from having become a participant pursuant to the applicable participation agreement. Notwithstanding the foregoing, any participation to a participant that becomes an Ineligible Assignee shall be subject to the provisions of paragraph (f) below.

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Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clause (y) of the first proviso to Section 10.01 that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations therein, including the requirements under Section 3.01(g) (it being understood that the documentation required under Section 3.01(g) shall be delivered to the Lender who sells the participation)); <u>provided</u> that such Participant (A) agrees to be subject to the provisions of Sections 3.06 and 10.13 as if it were an assignee under subsection (b) of this Section and (B) shall not be entitled to receive any greater payment under Sections 3.01 or 3.04, with respect to any participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after such Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.06 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender; <u>provided</u> that such Participant agrees to be subject to Section 2.11 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any Commitment or Loan or any of its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Proposed Treasury Regulation Section 1.163-5(b). The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Certain Pledges</u>*. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) in accordance with applicable Laws to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Certain Provisions Pertinent to Ineligible Assignees</u>*. If any assignment is made to any Ineligible Assignee without the Borrower's prior consent in violation of paragraph (b)(v)(D) above, or if any Lender becomes an Ineligible Assignee after the Trade Date of the applicable assignment to such Lender, the Borrower may, at their sole expense and effort, upon notice to the applicable Ineligible Assignee and the Administrative Agent, require such Ineligible Assignee to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in this Section 10.06), all of its interest, rights and obligations under this Agreement and related Loan Documents to an Eligible Assignee that shall assume such obligations at a purchase price equal to the lesser of (x) the principal amount thereof and (y) the amount that such Ineligible Assignee paid to acquire such interests, rights and obligations, in each case, plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to such Ineligible Assignee hereunder and under the other Loan Documents; <u>provided</u> that (i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in 10.06(b) and (ii) such assignment does not conflict with applicable Laws.

Notwithstanding anything to the contrary contained in this Agreement, (i) Ineligible Assignees that are either Lenders or participants of Lenders will not (A) have any inspection rights or the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (B) attend or participate in meetings attended by the Lenders and the Administrative Agent or (C) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (ii)(A) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Ineligible Assignee (whether a direct Lender or a participant) will be deemed to have consented in the same proportion as the Lenders that are not Ineligible Assignees consented to such matter, and (B) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws ("<u>Plan of Reorganization</u>"), each Ineligible Assignee (whether a direct Lender or a participant) hereby agrees (1) not to vote on such Plan of Reorganization, (2) if such Ineligible Assignee does vote on such Plan of Reorganization notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Plan of Reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (3) not to contest any request by any party for a determination by the bankruptcy court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, (i) to post the list of Ineligible Assignees provided by the Borrower and any updates thereto from time to time (collectively, the "<u>Ineligible Institution List</u>") on the Approved Electronic Platform, including that portion of the Approved Electronic Platform that is designated "Public Side Information", and (ii) to provide the Ineligible Institution List to each Lender or Participant or prospective Lender or Participant requesting the same. The Administrative Agent shall not be obligated to ascertain, monitor or inquire as to whether any

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Lender or Participant or prospective Lender or Participant is an Ineligible Assignee or enforce compliance with the provisions relating to Ineligible Assignees or have any liability with respect to or arising out of any assignment or participation of Loans and commitments under this Agreement, or disclosure of confidential information, to any Ineligible Assignee.

**Section 10.07 <u>Treatment of Certain Information; Confidentiality</u>**. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and its Affiliates' respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any administrative agency or regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by the order of any court, pending legal or judicial or administrative proceeding, or otherwise as required by applicable laws or regulations or by any subpoena, compulsory legal process or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same (or at least as restrictive) as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (B)(1) any direct, indirect, actual or prospective counterparty (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap, derivative or securitization or other similar transaction under which payments are to be made by reference or to any credit insurance provider in each case relating to the Borrower and its obligations, this Agreement or payments hereunder or (2) any credit insurance provider relating to the Borrower and its obligations, or (C) the CUSIP Service Bureau or any similar organization, (vii) to any rating agency, in consultation with the Borrower, (viii) with the written consent of the Borrower, (ix) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower, (x) for purposes of establishing a "due diligence" defense or (xi) pursuant to customary disclosure about the terms of the financing contemplated hereby in the ordinary course of business to market data collectors and similar service providers to the loan industry for league table purposes. For purposes of this Section, "<u>Information</u>" means all information received from the Borrower or any Subsidiaries relating to the Borrower or any Subsidiaries or any of their respective businesses, including the identity of Ineligible Assignees, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiaries; <u>provided</u> that in the case of information received from the Borrower or any Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

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Each of the Administrative Agent and the Lenders acknowledges that (i) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (ii) it has developed compliance procedures regarding the use of material non-public information and (iii) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities Laws.

**Section 10.08 <u>Right of Setoff</u>**. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender to or for the credit or the account of the Borrower, excluding any custodial, trust or special reserve accounts, against any and all of the obligations of the Borrower, now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement but only at the time when such obligations are due and payable in accordance with the terms of this Agreement or any other Loan Document and although such obligations of the Borrower are owed to a branch, or office of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; <u>provided</u> that, in the event that any Defaulting Lender exercises any such right of setoff, (x) all amounts so set off will be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.11(a) and, pending such payment, will be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders and (y) the Defaulting Lender will provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender may have, but subject to Section 8.02. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

**Section 10.09 <u>Interest Rate Limitation</u>**. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents (including interest paid at the Default Interest) shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "<u>Maximum Rate</u>"). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (i) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

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**Section 10.10 <u>Counterparts; Integration</u>**. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means (*e.g.* "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

**Section 10.11 <u>Survival of Representations and Warranties</u>**. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

**Section 10.12 <u>Severability</u>**. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 10.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the extent not so limited.

**Section 10.13 <u>Replacement of Lenders</u>**. If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06 or if any Lender is a Defaulting Lender or Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and obligations under this Agreement and the related Loan Documents to an

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Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to

Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Default or Event of Default shall have occurred and be continuing on the date of such assignment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Section 10.14 <u>Governing Law; Jurisdiction; Etc</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>GOVERNING LAW</u>*. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>SUBMISSION TO JURISDICTION</u>*. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN (OR IF SUCH COURT LACKS SUBJECT MATTER JURISDICTION, THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY (AND ANY SUCH CLAIMS, CROSS-CLAIMS OR THIRD-PARTY CLAIMS BROUGHT AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES MAY ONLY) BE HEARD AND DETERMINED IN SUCH FEDERAL (TO THE EXTENT PERMITTED BY LAW) OR NEW YORK STATE COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST THE CREDIT PARTIES OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>WAIVER OF VENUE</u>*. (i) EACH OF THE ADMINISTRATIVE AGENTAND THE LENDERS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (ii) THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>SERVICE OF PROCESS</u>*. EACH OF THE PARTIES HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

**Section 10.15 <u>Waiver of Jury Trial</u>**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

**Section 10.16 <u>No Advisory or Fiduciary Responsibility</u>**. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (i)(A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Arrangers and the Lenders, are arm's-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)(A) the Administrative Agent, each of the Arrangers and each of the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) none of the Administrative Agent, any Arranger nor any Lender has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Administrative Agent, any Arranger nor any Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that they may have against the Administrative Agent, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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**Section 10.17 <u>Electronic Execution of Assignments and Certain Other Documents</u>**. The words "execution", "signed", "signature", and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

**Section 10.18 <u>USA PATRIOT Act</u>**. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>"), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Act.

**Section 10.19 <u>Judgment Currency</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Borrower hereunder and under the other Loan Documents to make payments in a specified currency (the "<u>Obligation Currency</u>") shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent or a Lender of the full amount of the Obligation Currency expressed to be payable to it under this Agreement or another Loan Document. If, for the purpose of obtaining or enforcing judgment against the Borrower in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the "<u>Judgment Currency</u>") an amount due in the Obligation Currency, the conversion shall be made, at the rate of exchange (as quoted by the Administrative Agent or if the Administrative Agent does not quote a rate of exchange on such currency, by a known dealer in such currency designated by the Administrative Agent) determined, in each case as of the Business Day immediately preceding the date on which the judgment is given (such Business Day being hereinafter referred to as the "<u>Judgment Currency Conversion Date</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrower covenants and agrees to pay, or cause to be paid, or remit, or cause to be remitted, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of determining any rate of exchange or currency equivalent for this Section 10.19, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency.

**Section 10.20 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>**. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or otherinstruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

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**Section 10.21 <u>Acknowledgment Regarding Any Supported QFCs</u>**. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>"<u> </u>and each such QFC a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered</u> <u>Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

**[Signature pages follow]** 

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

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| | |
|:---|:---|
| **<u>INITIAL BORROWER</u>:** | **<u>INITIAL BORROWER</u>:** |
| **ACCELERANT HOLDINGS LP** | **ACCELERANT HOLDINGS LP** |
|  By: Accelerant Holdings GP, its general partner | By: Accelerant Holdings GP, its general partner |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |
| **<u>GUARANTORS:</u>** | **<u>GUARANTORS:</u>** |
| **ACCELERANT HOLDINGS** | **ACCELERANT HOLDINGS** |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |
| **ACCELERANT UNDERWRITING HOLDINGS LIMITED** | **ACCELERANT UNDERWRITING HOLDINGS LIMITED** |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |
| **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

------

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| | |
|:---|:---|
| **ACCELERANT AGENCY (UK) LIMITED** | **ACCELERANT AGENCY (UK) LIMITED** |
|  By: | /s/ Anna Faulkner |
|  Name: | Anna Faulkner |
|  Title: | Director |
| **ACCELERANT HOLDINGS UK LTD.** | **ACCELERANT HOLDINGS UK LTD.** |
|  By: | /s/ Simon Jukes |
|  Name: | Simon Jukes |
|  Title: | Director |

---

------

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| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS, INC.** | **ACCELERANT UNDERWRITING MANAGERS, INC.** |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | Director |

---

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| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

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| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

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| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

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| | |
|:---|:---|
| **ACCELERANT ACQUISITION SPV 4 LIMITED** | **ACCELERANT ACQUISITION SPV 4 LIMITED** |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

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| | |
|:---|:---|
| **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

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| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED.** | **ACCELERANT SERVICES UK LIMITED.** |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

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| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT</u>:** | **<u>ADMINISTRATIVE AGENT</u>:** |
|  **BANK OF MONTREAL**, as Administrative Agent | **BANK OF MONTREAL**, as Administrative Agent |
|  By: | /s/ Brij Grewal |
|  Name: | Brij Grewal |
|  Title: | Managing Director |

---

------

---

| | |
|:---|:---|
| **<u>LENDERS</u>:** | **<u>LENDERS</u>:** |
|  **BANK OF MONTREAL**, as Lender | **BANK OF MONTREAL**, as Lender |
|  By: | /s/ Brij Grewal |
|  Name: | Brij Grewal |
|  Title: | Managing Director |

---

------

---

| | |
|:---|:---|
| **ROYAL BANK OF CANADA**, as a Lender | **ROYAL BANK OF CANADA**, as a Lender |
|  By: | /s/ Sergey Skripnichenko |
|  Name: | Sergey Skripnichenko |
|  Title: | Authorized Signatory |

---

## Exhibit 10.9

**Exhibit 10.9** 

***EXECUTION VERSION***

**GUARANTY** 

This **GUARANTY** (this "**Guaranty**") is entered into as of January 29, 2021, by and among each of the entities listed on the signature pages hereto as a Guarantor (together with any other Person that at any time after the date hereof becomes a party hereto pursuant to <u>Section</u> <u>13</u>,<u> </u>collectively, the "**Guarantors**" and each individually, a "**Guarantor**") and **Bank of Montreal**, as Administrative Agent under the Credit Agreement referred to below (in such capacity, together with its permitted successors and assigns, the "**Agent**") in favor of and for the benefit of the financial institutions (the "**Lenders**") party to the Credit Agreement (as defined below).

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Accelerant Holdings LP, a Cayman Islands exempted limited partnership, acting by its general partner, Accelerant Holdings GP (the "**Initial Borrower**"), has entered into that certain Credit Agreement, dated as of the date hereof (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "**Credit Agreement**," capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Credit Agreement) with the Guarantors from time to time party thereto, the Lenders from time to time party thereto and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each Guarantor is a Subsidiary of the Borrower, and thus the Guaranteed Obligations (as hereinafter defined) are being incurred for and will inure to the benefit of such Guarantor (which benefits are hereby acknowledged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It is a condition precedent to the making of the Loans under the Credit Agreement that the Obligations be guaranteed by the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Each Guarantor is willing, irrevocably and unconditionally, to guaranty the Obligations.

**NOW, THEREFORE**, based upon the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lenders and the Agent to enter into the Credit Agreement and to make Loans thereunder, each Guarantor hereby agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed Obligations (as hereinafter defined) when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise in accordance with any Loan Document (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code). The term "**Guaranteed Obligations**" means any and all Obligations of the Borrower (including, without limitation, any extensions, increases, modifications, substitutions, amendments, refinancings, refundings, replacements or renewals of any or all of the Obligations) whether now or hereafter made, incurred or created, whether absolute or contingent, liquidated or unliquidated, whether due or not due, and however arising.

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Any interest on any portion of the Obligations that accrues after the commencement of any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of the Borrower (or, if interest on any portion of the Obligations ceases to accrue by operation of law by reason of the commencement of said proceeding, such interest as would have accrued on such portion of the Obligations if said proceeding had not been commenced) shall be included in the Obligations because it is the intention of the Guarantors and the Agent that the Obligations should be determined without regard to any rule of law or order that may relieve the Borrower of any portion of such Obligations.

The Guaranteed Obligations shall remain in full force and effect until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated. In the event that all or any portion of the Guaranteed Obligations is paid by the Borrower, the obligations of the Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) is rescinded or recovered directly or indirectly from the Agent or any Lender as a preference, fraudulent transfer or must otherwise be restored or returned by the Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its property, or otherwise, all as though such payments had not been made, and any such payments that are so rescinded or recovered shall constitute Guaranteed Obligations.

Subject to the other provisions of this <u>Section</u> <u>1</u>, upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, the Guarantors will promptly upon written demand by the Agent pay, or cause to be paid, in cash, to the Agent for the ratable benefit of the Lenders, an amount equal to the aggregate of the unpaid Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything contained in this Guaranty to the contrary notwithstanding, the obligations of any Guarantor under this Guaranty and the other Loan Documents shall be limited to a maximum aggregate amount equal to the largest amount that would not render

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable provisions of comparable state law or foreign law applicable to such Guarantor (collectively, the "**Fraudulent Transfer Laws**"), in each case after giving effect to all other liabilities of such Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Guarantor (x) in respect of intercompany indebtedness to the Borrower or other Affiliates of the Borrower to the extent that such indebtedness would be discharged in an amount equal to the amount paid by such Guarantor hereunder and (y) under any guaranty of subordinated Debt which guaranty contains a limitation as to maximum amount similar to that set forth in this <u>Section</u> <u>1(b)</u>, pursuant to which the liability of such Guarantor hereunder is included in the liabilities taken into account in determining such maximum amount) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, reimbursement, indemnification or contribution of such Guarantor pursuant to applicable law or pursuant to the terms of any agreement, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in addition to the preceding <u>clause (i)</u> of this <u>Section</u> <u>1(b)</u>, in the case of any Guarantor that is organized under laws of Malta ("**Maltese Guarantor**") and is subject to group solvency capital requirements under (x) Solvency II Rules promulgated by the Solvency II Directive (Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance), as transposed in the Insurance Business Act (Cap 403 of the Laws of Malta), the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing the Solvency II Directive or (y) any European Insurance and Occupational Pensions Authority guidelines or guidelines issued by any applicable Governmental Authority, including Malta Financial Services Authority, in connection therewith, such Guarantor in breach of such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Guaranty Absolute; Continuing Guaranty</u>. The obligations of the Guarantors hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in cash in full of the Guaranteed Obligations, and each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees that: (a) this Guaranty is a guaranty of payment when due and not of collectibility; (b) the Agent may enforce this Guaranty upon the occurrence and during the continuance of an Event of Default under the Credit Agreement and the consent of the Required Lenders, subject to <u>Section</u> <u>8.02</u> of the Credit Agreement; (c) the obligations of such Guarantor hereunder are independent of the obligations of the Borrower under the Loan Documents and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Borrower and whether or not the Borrower is joined in any such action or actions; and (d) any Guarantor's or the Borrower's payment of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge such Guarantor's liability for any portion of the Guaranteed Obligations that has not been paid. This Guaranty is a continuing guaranty and shall be binding upon the Guarantors and their successors and assigns, and each Guarantor waives, to the extent permitted by applicable law, any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations. The Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained herein or affecting the rights and remedies of the Agent or any Lender hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Actions by Lenders</u>. Any Lender may from time to time, without notice or demand and without affecting the validity or enforceability of this Guaranty or giving rise to any limitation, impairment or discharge of any Guarantor's liability hereunder, (a) renew, extend, accelerate or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations in accordance with the terms of the relevant Loan Document, (b) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other obligations, (c) request and accept other guaranties of the

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Guaranteed Obligations and take and hold security for the payment of this Guaranty or the Guaranteed Obligations, (d) release, exchange, compromise, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person with respect to the Guaranteed Obligations and (e) exercise any other rights available to the Agent or the other Lenders, or any of them, under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Discharge</u>. This Guaranty and the obligations of the Guarantors hereunder shall be valid and enforceable subject to bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counter-claim, the plea of prescription, principle of public policy or similar laws relating to or limiting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in equity or law), and shall not be subject to any limitation, impairment or discharge for any reason (other than to the extent provided in the Loan Documents), including, without limitation, the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (a) any failure to assert or enforce or any agreement not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (b) any waiver or modification of, or any consent to departure from, any of the terms or provisions of the Credit Agreement, any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations; (c) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (d) the application of payments received from any source to the payment of indebtedness other than the Guaranteed Obligations, even though the Agent or the Lenders, or any of them, might have elected to apply such payment to any part or all of the Guaranteed Obligations; (e) any defenses (other than defenses of payment or performance), set-offs or counterclaims which any Guarantor or the Borrower may assert against the Agent or any Lender in respect of the Guaranteed Obligations, including, but not limited to, failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction and usury; and (f) any other act or thing or omission, or delay to do any other act or thing (other than the payment in cash in full of the Guaranteed Obligations), which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Waivers</u>. Each Guarantor waives, to the extent permitted by applicable law, for the benefit of the Lenders: (a) any right to require the Agent, as a condition of payment or performance by such Guarantor, to (i) proceed against the Borrower or any other Person, (ii) proceed against or exhaust any security held by the Borrower, any other guarantor of the Guaranteed Obligations or any other Person, (iii) except as provided in any Loan Document,<u> </u>proceed against or have resort to any balance of any deposit account or credit on the books of any Lender in favor of the Borrower or any other Person, or (iv) pursue any other remedy in the power of any Lender; (b) any defense (other than the defense of payment or performance) arising by reason of the incapacity, lack of authority or any disability or other defense of any Guarantor or the Borrower including, without limitation, any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations, the Loan Documents or any agreement or instrument relating thereto or by reason of the cessation of the liability of any

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Guarantor or the Borrower from any cause; (c) any defense (other than the defense of payment or performance) based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense (other than the defense of payment or performance) based upon the Agent's errors or omissions in the administration of the Guaranteed Obligations, except for (i) the Agent's willful misconduct or gross negligence (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) the Agent's material breach of its obligations under the Loan Documents (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment); (e) (i) any principles or provisions of law, statutory or otherwise, that are or might be in conflict with the terms of this Guaranty and any legal or equitable discharge of any Guarantor's obligations hereunder, or in bankruptcy or in any other instance, (ii) the benefit of any statute of limitations affecting any Guarantor's liability hereunder or the enforcement hereof, (iii) any rights of set-offs, recoupments and counterclaims and (iv) promptness, diligence and any requirement that any Lender may have to protect, secure, perfect or insure any Lien or any property subject thereto; (f) any defense (other than the defense of payment or performance) based upon any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to the Borrower or any of its Subsidiaries or otherwise; (g) any defense (other than the defense of payment or performance) based upon any change, restructuring or termination of the corporate structure or existence of any Guarantor or any of its Subsidiaries; (h) any defense (other than the defense of payment or performance) based upon any failure of any Lender to disclose to any Guarantor any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower or any of its Subsidiaries now or hereafter known to such Lenders; (i) except as required by any other Loan Document, notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance of this Guaranty, notices of any renewal, notice of or proof of reliance, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower and notices of any of the matters referred to in <u>Sections 3</u> and <u>4</u> and any right to consent to any thereof; and (j) to the fullest extent permitted by applicable law, any defenses (other than the defense of payment or performance) or benefits that may be derived from or afforded by applicable law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Guaranty. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Agent or any Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Agent or any Lender against such Guarantor. For the purposes hereof "demand" shall include the commencement and continuance of any legal proceedings.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Guarantors' Rights of Subrogation, Contribution, Etc.; Subordination of Other Obligations</u>. (a) Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, each Guarantor shall, solely with respect to the Obligations, withhold exercise of (i) any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including, without limitation, (A) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Borrower, (B) any right to enforce, or to participate in, any claim, right or remedy that the Agent or any Lender now has or may hereafter have against the Borrower, and (C) any benefit of, and any right to participate in, any collateral or security hereafter held by any Lender and (ii) any right of contribution such Guarantor now has or may hereafter have against any other guarantor of any of the Obligations. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence, such amount shall be received and held in trust for the benefit of the Lenders, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Loan Documents or to be held as payment for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. Each Guarantor further agrees that, to the extent the agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against the Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against the Borrower, shall be junior and subordinate to any rights the Agent may have against the Borrower, to all right, title and interest the Agent may have in any such collateral or security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision of this Guaranty to the contrary, all rights of the Guarantors of contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of all the Guaranteed Obligations. Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, no Guarantor shall demand or receive any collateral security, payment or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim. If any such payment or distribution is made or becomes available to any Guarantor in any bankruptcy case or receivership, insolvency or liquidation proceeding, such payment or distribution shall be delivered by the Person making such payment or distribution directly to the Agent, for application to the payment of the Guaranteed Obligations. If any such payment or distribution is received by any Guarantor, it shall be held in trust for the benefit of the Lenders, and shall forthwith be transferred and delivered by such Guarantor to the Agent, in the exact form received and, if necessary, duly endorsed. No failure on the part of any Guarantor to make the payments required by this <u>Section</u> <u>6</u> (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of such Guarantor with respect to its obligations hereunder, and such Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Indemnity; Expenses</u>. Each Guarantor agrees that the Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in <u>Section</u> <u>10.04</u> of the Credit Agreement. To the maximum extent permitted by applicable law, each Guarantor agrees to indemnify and hold harmless the Agent from and against any and all claims, losses and liabilities in any way relating to, growing out of or resulting from this Guaranty and the transactions contemplated hereby (including, without limitation, enforcement of this Guaranty) in accordance with, and subject to the limitations set forth in, <u>Section</u> <u>10.04</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Financial Condition of Guarantee Parties</u>. No Lender shall have any obligation, and each Guarantor waives any duty on the part of any Lender, to disclose or discuss with such Guarantor its assessment, or such Guarantor's assessment, of the financial condition of such Guarantor or the Borrower or any matter or fact relating to the business, operations or condition of each of the Guarantors and the Borrower. Each Guarantor has adequate means to obtain information from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform its obligations under the Loan Documents and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Representations and Warranties</u>. Each Guarantor hereby represents and warrants that this Guaranty (a) has been duly executed and delivered by such Guarantor and (b) constitutes a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Set Off</u>. Any rights Lenders may have with respect to set off shall be solely as set forth in <u>Section</u> <u>10.08</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Payments</u>. Each Guarantor hereby guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in Euros.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against such Guarantor and without notice to or further assent by such Guarantor, any demand for payment of any of the Obligations made by the Agent or any Lender may be rescinded by the Agent or such Lender and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended,

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modified, supplemented or terminated, in whole or in part, as the Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Agent or any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Guaranty or any property subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in the Credit Agreement, no amendment, modification, termination or waiver of any provision of this Guaranty (which in any event shall not include execution of counterparts to this Guaranty), and no consent to any departure by any Guarantor therefrom, shall in any event be effective without the written concurrence of the Agent and, in the case of any such amendment or modification, such Guarantor. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Additional Guarantors</u>. Any Subsidiary of the Borrower may become a party to this Guaranty and the Credit Agreement by signing and delivering to the Administrative Agent a joinder agreement, substantially in the form of <u>Exhibit A</u> attached hereto, whereupon such Subsidiary shall become a Guarantor for all purposes of this Guaranty, the Credit Agreement and each other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Miscellaneous</u>. It is not necessary for the Agent to inquire into the capacity or powers of any Guarantor or the Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.

No failure by the Agent to exercise, and no delay by the Agent in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided hereunder and each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Guaranty shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.

**THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.** 

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The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby. This Guaranty constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Submission to Jurisdiction; Waiver of Jury Trial; etc. <u>Section</u> <u>10.14(b)</u>, <u>(c)</u>, <u>(d)</u> and <u>Section</u> <u>10.15</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Counterparts. This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Guaranty by telecopy or other electronic imaging means (*e.g*. "pdf" or "tif") shall be effective as delivery of a manually executed counterpart of this Guaranty. The words "execution", "signed", "signature", and words of like import in this Guaranty or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Interpretive Provisions</u>. <u>Sections 1.02</u>, <u>1.03</u>, <u>1.04</u>, <u>1.08</u> and <u>1.09</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Bank of Montreal as Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bank of Montreal has been appointed to act as the Agent hereunder by the Lenders. The Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action, solely in accordance with this Guaranty and the Credit Agreement; <u>provided</u> that the Agent shall exercise, or refrain from exercising, any remedies under or with respect to this Guaranty in accordance with the instructions of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of the Credit Agreement relating to the Agent including, without limitation, the provisions relating to resignation of the Agent and the powers and duties and immunities of the Agent are incorporated herein by this reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Termination</u>. Upon all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, this Guaranty, the guarantees made herein, and all of the obligations of the Guarantors under this Guaranty shall automatically terminate, and the Guarantors shall be automatically released from its Guaranteed Obligations and other obligations hereunder upon such termination, all without delivery of any instrument or

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performance of any act by any Person. In connection with any termination or release pursuant to this <u>Section</u> <u>19</u>, the Agent shall execute and deliver such documentation and releases at the expense of the Guarantors as may be reasonably requested by the Guarantors to effectuate or evidence such termination or release.

[Remainder of page intentionally left blank.]

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EXECUTION VERSION

IN WITNESS WHEREOF, each Guarantor has executed this Guaranty to be duly executed by its authorized officer thereunto as of the date first written above.

---

| | |
|:---|:---|
| **ACCELERANT HOLDINGS**<br> as a Guarantor | **ACCELERANT HOLDINGS**<br> as a Guarantor |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |
| **ACCELERANT UNDERWRITING HOLDINGS LIMITED**<br> as a Guarantor | **ACCELERANT UNDERWRITING HOLDINGS LIMITED**<br> as a Guarantor |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |
| **ACCELERANT US HOLDINGS, LLC**<br> as a Guarantor | **ACCELERANT US HOLDINGS, LLC**<br> as a Guarantor |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

[Signature Page to Joinder]

------

---

| | |
|:---|:---|
| **ACCELERANT AGENCY (UK) LIMITED**<br> as a Guarantor | **ACCELERANT AGENCY (UK) LIMITED**<br> as a Guarantor |
|  By: | /s/ Anna Faulkner |
|  Name: | Anna Faulkner |
|  Title: | Director |
| **ACCELERANT HOLDINGS UK LTD.**<br> as a Guarantor | **ACCELERANT HOLDINGS UK LTD.**<br> as a Guarantor |
|  By: | /s/ Simon Jukes |
|  Name: | Simon Jukes |
|  Title: | Director |

---

------

---

| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS, INC.**<br> as a Guarantor | **ACCELERANT UNDERWRITING MANAGERS, INC.**<br> as a Guarantor |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

------

---

| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC**<br> as a Guarantor | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC**<br> as a Guarantor |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC**<br> as a Guarantor | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC**<br> as a Guarantor |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC**<br> as a Guarantor | **ACCELERANT US SERVICES COMPANY, LLC**<br> as a Guarantor |
|  By: | /s/ Jeffrey Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

------

---

| | |
|:---|:---|
|  **ACCELERANT ACQUISITION SPV 4 LIMITED**<br> as a Guarantor | **ACCELERANT ACQUISITION SPV 4 LIMITED**<br> as a Guarantor |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

------

---

| | |
|:---|:---|
|  **AYAX (UK) ACQUISITION CO. LTD.**<br> as a Guarantor | **AYAX (UK) ACQUISITION CO. LTD.**<br> as a Guarantor |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

------

---

| | |
|:---|:---|
|  **ACCELERANT SERVICES UK LIMITED**<br> as a Guarantor | **ACCELERANT SERVICES UK LIMITED**<br> as a Guarantor |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

------

---

| | |
|:---|:---|
|  **BANK OF MONTREAL**<br> as a Agent | **BANK OF MONTREAL**<br> as a Agent |
|  By: | /s/ Brij Grewal |
|  Name: | Brij Grewal |
|  Title: | Managing Director |

---

## Exhibit 10.10

**Exhibit 10.10** 

***EXECUTION VERSION***

**AMENDED AND RESTATED GUARANTY** 

This **AMENDED AND RESTATED GUARANTY** (this "**Guaranty**") is entered into as of May 11, 2022, by and among each of the entities listed on the signature pages hereto as a Guarantor (together with any other Person that at any time after the date hereof becomes a party hereto pursuant to <u>Section</u> <u>13</u>, collectively, the "**Guarantors**" and each individually, a "**Guarantor**") and **Bank of Montreal**, as Administrative Agent under the Credit Agreement referred to below (in such capacity, together with its permitted successors and assigns, the "**Agent**") in favor of and for the benefit of the financial institutions (the "**Lenders**") party to the Credit Agreement (as defined below).

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Guarantors have previously entered into that certain Guaranty, dated as of January 29, 2021, as supplemented by that certain Joinder to Guaranty and Credit Agreement, dated as of February 28, 2021 (as the same may have been amended, restated, supplemented or otherwise modified prior to the date hereof, the "**Existing Guaranty**"), in favor of the lenders party to the Existing Credit Agreement (as defined in the Credit Agreement) and the Agent with respect to the obligations of the Borrower under the Existing Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Existing Credit Agreement is being amended and restated in its entirety pursuant to the Amended and Restated Credit Agreement dated as of May 11, 2022 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "**Credit Agreement**") by and among Accelerant Holdings, a Cayman Islands exempted company (the "**Borrower**"), the Guarantors party thereto, the lenders party thereto (the "**Lenders**") and the Agent and the other agents and arrangers party thereto, which Credit Agreement provides, subject to the terms and conditions thereof, for extensions of credit and other financial accommodations to be made by the Lenders to or for the benefit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each Guarantor is a Subsidiary of the Borrower, and thus the Guaranteed Obligations (as hereinafter defined) are being incurred for and will inure to the benefit of such Guarantor (which benefits are hereby acknowledged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It is a condition precedent to the effectiveness of the Credit Agreement that the Obligations be guaranteed by the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Each Guarantor is willing, irrevocably and unconditionally, to guaranty the Obligations.

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**NOW, THEREFORE**, based upon the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lenders and the Agent to enter into the Credit Agreement and to make Loans thereunder, each Guarantor hereby agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>1.</u> <u>Guaranty</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed Obligations (as hereinafter defined) when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise in accordance with any Loan Document (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code). The term "**Guaranteed Obligations**" means any and all Obligations of the Borrower (including, without limitation, any extensions, increases, modifications, substitutions, amendments, refinancings, refundings, replacements or renewals of any or all of the Obligations) whether now or hereafter made, incurred or created, whether absolute or contingent, liquidated or unliquidated, whether due or not due, and however arising.

Any interest on any portion of the Obligations that accrues after the commencement of any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of the Borrower (or, if interest on any portion of the Obligations ceases to accrue by operation of law by reason of the commencement of said proceeding, such interest as would have accrued on such portion of the Obligations if said proceeding had not been commenced) shall be included in the Obligations because it is the intention of the Guarantors and the Agent that the Obligations should be determined without regard to any rule of law or order that may relieve the Borrower of any portion of such Obligations.

The Guaranteed Obligations shall remain in full force and effect until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated. In the event that all or any portion of the Guaranteed Obligations is paid by the Borrower, the obligations of the Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) is rescinded or recovered directly or indirectly from the Agent or any Lender as a preference, fraudulent transfer or must otherwise be restored or returned by the Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its property, or otherwise, all as though such payments had not been made, and any such payments that are so rescinded or recovered shall constitute Guaranteed Obligations.

Subject to the other provisions of this <u>Section</u> <u>1</u>, upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, the Guarantors will promptly upon written demand by the Agent pay, or cause to be paid, in cash, to the Agent for the ratable benefit of the Lenders, an amount equal to the aggregate of the unpaid Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything contained in this Guaranty to the contrary notwithstanding, the obligations of any Guarantor under this Guaranty and the other Loan Documents shall be limited to a maximum aggregate amount equal to the largest amount that would not render

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable provisions of comparable state law or foreign law applicable to such Guarantor (collectively, the "**Fraudulent Transfer Laws**"), in each case after giving effect to all other liabilities of such Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Guarantor (x) in respect of intercompany indebtedness to the Borrower or other Affiliates of the Borrower to the extent that such indebtedness would be discharged in an amount equal to the amount paid by such Guarantor hereunder and (y) under any guaranty of subordinated Debt which guaranty contains a limitation as to maximum amount similar to that set forth in this <u>Section 1(b)</u>, pursuant to which the liability of such Guarantor hereunder is included in the liabilities taken into account in determining such maximum amount) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, reimbursement, indemnification or contribution of such Guarantor pursuant to applicable law or pursuant to the terms of any agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in addition to the preceding <u>clause (i)</u> of this <u>Section 1(b)</u>, in the case of any Guarantor that is organized under laws of Malta ("**Maltese Guarantor**") and is subject to group solvency capital requirements under (x) Solvency II Rules promulgated by the Solvency II Directive (Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance), as transposed in the Insurance Business Act (Cap 403 of the Laws of Malta), the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing the Solvency II Directive or (y) any European Insurance and Occupational Pensions Authority guidelines or guidelines issued by any applicable Governmental Authority, including Malta Financial Services Authority, in connection therewith, such Guarantor in breach of such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Guaranty Absolute; Continuing Guaranty</u>. The obligations of the Guarantors hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in cash in full of the Guaranteed Obligations, and each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees that: (a) this Guaranty is a guaranty of payment when due and not of collectibility; (b) the Agent may enforce this Guaranty upon the occurrence and during the continuance of an Event of Default under the Credit Agreement and the consent of the Required Lenders, subject to <u>Section 8.02</u> of the Credit Agreement; (c) the obligations of such Guarantor hereunder are independent of the obligations of the Borrower under the Loan Documents and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Borrower and whether or not the Borrower is joined in any such action or actions; and (d) any Guarantor's or the Borrower's payment of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge such Guarantor's

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liability for any portion of the Guaranteed Obligations that has not been paid. This Guaranty is a continuing guaranty and shall be binding upon the Guarantors and their successors and assigns, and each Guarantor waives, to the extent permitted by applicable law, any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations. The Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained herein or affecting the rights and remedies of the Agent or any Lender hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Actions by Lenders</u>. Any Lender may from time to time, without notice or demand and without affecting the validity or enforceability of this Guaranty or giving rise to any limitation, impairment or discharge of any Guarantor's liability hereunder, (a) renew, extend, accelerate or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations in accordance with the terms of the relevant Loan Document, (b) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other obligations, (c) request and accept other guaranties of the Guaranteed Obligations and take and hold security for the payment of this Guaranty or the Guaranteed Obligations, (d) release, exchange, compromise, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person with respect to the Guaranteed Obligations and (e) exercise any other rights available to the Agent or the other Lenders, or any of them, under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Discharge</u>. This Guaranty and the obligations of the Guarantors hereunder shall be valid and enforceable subject to bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counter-claim, the plea of prescription, principle of public policy or similar laws relating to or limiting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in equity or law), and shall not be subject to any limitation, impairment or discharge for any reason (other than to the extent provided in the Loan Documents), including, without limitation, the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (a) any failure to assert or enforce or any agreement not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (b) any waiver or modification of, or any consent to departure from, any of the terms or provisions of the Credit Agreement, any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations; (c) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (d) the application of payments received from any source to the payment of indebtedness other than the Guaranteed Obligations, even though the Agent or the Lenders, or any of them, might have elected to apply such payment to any part or all of the Guaranteed Obligations; (e) any defenses (other than defenses of payment or performance), set-offs or counterclaims which any Guarantor or the Borrower may assert against the Agent or any Lender in respect of the Guaranteed Obligations, including, but not limited to, failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction and usury; and (f) any other act or thing or omission, or delay to do any other act or thing (other than the payment in cash in full of the Guaranteed Obligations), which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Waivers</u>. Each Guarantor waives, to the extent permitted by applicable law, for the benefit of the Lenders: (a) any right to require the Agent, as a condition of payment or performance by such Guarantor, to (i) proceed against the Borrower or any other Person, (ii) proceed against or exhaust any security held by the Borrower, any other guarantor of the Guaranteed Obligations or any other Person, (iii) except as provided in any Loan Document, proceed against or have resort to any balance of any deposit account or credit on the books of any Lender in favor of the Borrower or any other Person, or (iv) pursue any other remedy in the power of any Lender; (b) any defense (other than the defense of payment or performance) arising by reason of the incapacity, lack of authority or any disability or other defense of any Guarantor or the Borrower including, without limitation, any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations, the Loan Documents or any agreement or instrument relating thereto or by reason of the cessation of the liability of any Guarantor or the Borrower from any cause; (c) any defense (other than the defense of payment or performance) based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense (other than the defense of payment or performance) based upon the Agent's errors or omissions in the administration of the Guaranteed Obligations, except for (i) the Agent's willful misconduct or gross negligence (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) the Agent's material breach of its obligations under the Loan Documents (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment); (e) (i) any principles or provisions of law, statutory or otherwise, that are or might be in conflict with the terms of this Guaranty and any legal or equitable discharge of any Guarantor's obligations hereunder, or in bankruptcy or in any other instance, (ii) the benefit of any statute of limitations affecting any Guarantor's liability hereunder or the enforcement hereof, (iii) any rights of set-offs, recoupments and counterclaims and (iv) promptness, diligence and any requirement that any Lender may have to protect, secure, perfect or insure any Lien or any property subject thereto; (f) any defense (other than the defense of payment or performance) based upon any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to the Borrower or any of its Subsidiaries or otherwise; (g) any defense (other than the defense of payment or performance) based upon any change, restructuring or termination of the corporate structure or existence of any Guarantor or any of its Subsidiaries; (h) any defense (other than the defense of payment or performance) based upon any failure of any Lender to disclose to any Guarantor any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower or any of its Subsidiaries now or hereafter known to such Lenders; (i) except as required by any other Loan Document, notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance of this Guaranty, notices of any renewal, notice of or proof of reliance, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower

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and notices of any of the matters referred to in <u>Sections 3</u> and <u>4</u> and any right to consent to any thereof; and (j) to the fullest extent permitted by applicable law, any defenses (other than the defense of payment or performance) or benefits that may be derived from or afforded by applicable law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Guaranty. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Agent or any Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Agent or any Lender against such Guarantor. For the purposes hereof "demand" shall include the commencement and continuance of any legal proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Guarantors' Rights of Subrogation, Contribution, Etc.; Subordination of Other Obligations</u>. (a) Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, each Guarantor shall, solely with respect to the Obligations, withhold exercise of (i) any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including, without limitation, (A) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Borrower, (B) any right to enforce, or to participate in, any claim, right or remedy that the Agent or any Lender now has or may hereafter have against the Borrower, and (C) any benefit of, and any right to participate in, any collateral or security hereafter held by any Lender and (ii) any right of contribution such Guarantor now has or may hereafter have against any other guarantor of any of the Obligations. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence, such amount shall be received and held in trust for the benefit of the Lenders, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Loan Documents or to be held as payment for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. Each Guarantor further agrees that, to the extent the agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against the Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against the Borrower, shall be junior and subordinate to any rights the Agent may have against the Borrower, to all right, title and interest the Agent may have in any such collateral or security.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision of this Guaranty to the contrary, all rights of the Guarantors of contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of all the Guaranteed Obligations. Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, no Guarantor shall demand or receive any collateral security, payment or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim. If any such payment or distribution is made or becomes available to any Guarantor in any bankruptcy case or receivership, insolvency or liquidation proceeding, such payment or distribution shall be delivered by the Person making such payment or distribution directly to the Agent, for application to the payment of the Guaranteed Obligations. If any such payment or distribution is received by any Guarantor, it shall be held in trust for the benefit of the Lenders, and shall forthwith be transferred and delivered by such Guarantor to the Agent, in the exact form received and, if necessary, duly endorsed. No failure on the part of any Guarantor to make the payments required by this <u>Section 6</u> (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of such Guarantor with respect to its obligations hereunder, and such Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Indemnity; Expenses</u>. Each Guarantor agrees that the Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in <u>Section 10.04</u> of the Credit Agreement. To the maximum extent permitted by applicable law, each Guarantor agrees to indemnify and hold harmless the Agent from and against any and all claims, losses and liabilities in any way relating to, growing out of or resulting from this Guaranty and the transactions contemplated hereby (including, without limitation, enforcement of this Guaranty) in accordance with, and subject to the limitations set forth in, <u>Section 10.04</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Financial Condition of Guarantee Parties</u>. No Lender shall have any obligation, and each Guarantor waives any duty on the part of any Lender, to disclose or discuss with such Guarantor its assessment, or such Guarantor's assessment, of the financial condition of such Guarantor or the Borrower or any matter or fact relating to the business, operations or condition of each of the Guarantors and the Borrower. Each Guarantor has adequate means to obtain information from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform its obligations under the Loan Documents and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Representations and Warranties</u>. Each Guarantor hereby represents and warrants that this Guaranty (a) has been duly executed and delivered by such Guarantor and (b) constitutes a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Set Off</u>. Any rights Lenders may have with respect to set off shall be solely as set forth in <u>Section 10.08</u> of the Credit Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Payments</u>. Each Guarantor hereby guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in Euros.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against such Guarantor and without notice to or further assent by such Guarantor, any demand for payment of any of the Obligations made by the Agent or any Lender may be rescinded by the Agent or such Lender and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Agent or any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Guaranty or any property subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in the Credit Agreement, no amendment, modification, termination or waiver of any provision of this Guaranty (which in any event shall not include execution of counterparts to this Guaranty), and no consent to any departure by any Guarantor therefrom, shall in any event be effective without the written concurrence of the Agent and, in the case of any such amendment or modification, such Guarantor. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Additional Guarantors</u>. Any Subsidiary of the Borrower may become a party to this Guaranty and the Credit Agreement by signing and delivering to the Administrative Agent a joinder agreement, substantially in the form of Exhibit A attached hereto, whereupon such Subsidiary shall become a Guarantor for all purposes of this Guaranty, the Credit Agreement and each other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Miscellaneous</u>. It is not necessary for the Agent to inquire into the capacity or powers of any Guarantor or the Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.

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No failure by the Agent to exercise, and no delay by the Agent in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided hereunder and each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Guaranty shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.

**THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.** 

The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby. This Guaranty constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Submission to Jurisdiction; Waiver of Jury Trial; etc</u>. <u>Section 10.14(b)</u>, <u>(c)</u>, <u>(d)</u> and <u>Section 10.15</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Guaranty by telecopy or other electronic imaging means (*e.g*. "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Guaranty. The words "execution", "signed", "signature", and words of like import in this Guaranty or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Interpretive Provisions</u>. <u>Sections 1.02</u>, <u>1.03</u>, <u>1.04</u>, <u>1.08</u> and <u>1.09</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Bank of Montreal as Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bank of Montreal has been appointed to act as the Agent hereunder by the Lenders. The Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action, solely in accordance with this Guaranty and the Credit Agreement; <u>provided</u> that the Agent shall exercise, or refrain from exercising, any remedies under or with respect to this Guaranty in accordance with the instructions of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of the Credit Agreement relating to the Agent including, without limitation, the provisions relating to resignation of the Agent and the powers and duties and immunities of the Agent are incorporated herein by this reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Termination</u>. Upon all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, this Guaranty, the guarantees made herein, and all of the obligations of the Guarantors under this Guaranty shall automatically terminate, and the Guarantors shall be automatically released from its Guaranteed Obligations and other obligations hereunder upon such termination, all without delivery of any instrument or performance of any act by any Person. In connection with any termination or release pursuant to this <u>Section 19</u>, the Agent shall execute and deliver such documentation and releases at the expense of the Guarantors as may be reasonably requested by the Guarantors to effectuate or evidence such termination or release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment and Restatement</u>. Each of the parties hereto acknowledges and agrees that upon the execution and delivery of this Guaranty by each of the parties hereto, (a) this Guaranty shall amend and restate the Existing Guaranty in its entirety, (b) the rights and obligations of the Guarantors and the Agent under the Existing Guaranty shall be subsumed within and be governed by this Guaranty; <u>provided</u>, <u>however</u>, that all Guaranteed Obligations (as defined in the Existing Guaranty) of the Guarantors shall constitute Guaranteed Obligations hereunder, and neither this Guaranty nor any other Loan Document shall be deemed to evidence or result in a novation of such Guaranteed Obligations, and (c) all references to the Existing Guaranty in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Guaranty.

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, each Guarantor has executed this Guaranty to be duly executed by its authorized officer thereunto as of the date first written above.

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| | |
|:---|:---|
| **ACCELERANT HOLDINGS (CAYMAN) LTD.** | **ACCELERANT HOLDINGS (CAYMAN) LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** | **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT UNDERWRITING HOLDINGS LIMITED** | **ACCELERANT UNDERWRITING HOLDINGS LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

---

[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | President |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT AGENCY (UK) LIMITED** | **ACCELERANT AGENCY (UK) LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Anna Faulkner |
| Name: | Anna Faulkner |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT AGENCY LIMITED** | **ACCELERANT AGENCY LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Anna Faulkner |
| Name: | Anna Faulkner |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT HOLDINGS UK LTD.** | **ACCELERANT HOLDINGS UK LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Simon Jukes |
| Name: | Simon Jukes |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT MALTA HOLDINGS LIMITED** | **ACCELERANT MALTA HOLDINGS LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS INC.** | **ACCELERANT UNDERWRITING MANAGERS INC.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | President |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | President |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | President |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **CORNICHE ACQUISITION CO. LTD.** | **CORNICHE ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED** | **ACCELERANT SERVICES UK LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **M2 ACQUISITION CO. LTD.** | **M2 ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **ARB ACQUISITION CO. LTD.** | **ARB ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **EVEREST RM ACQUISITION CO. LTD.** | **EVEREST RM ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **SSR ACQUISITION CO. LTD.** | **SSR ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[Signature Page to Amended & Restated Guaranty]

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| | |
|:---|:---|
| **BANK OF MONTREAL,** | **BANK OF MONTREAL,** |
| as Agent | as Agent |
| By: | /s/ Collin Wagner |
| Name: | Collin Wagner |
| Title: | Vice President |

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[Signature Page to Amended & Restated Guaranty]

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**<u>Exhibit A</u>**

**<u>FORM OF JOINDER TO GUARANTY</u>**

This **JOINDER AGREEMENT** (this "**Joinder**") dated as of [______________] is entered into by and between [NAME OF NEW GUARANTOR] (the "**Additional Guarantor**") and Bank of Montreal, as Administrative Agent.

WHEREAS, the Guarantors party thereto and Bank of Montreal, as Administrative Agent, are parties to that certain Amended & Restated Guaranty, dated as of [•], 2022 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "**Guaranty**");

WHEREAS, the Additional Guarantor is required to execute this Joinder pursuant to Section 13 of the Guaranty and desires to become a party to the Guaranty and the Credit Agreement as a Guarantor thereunder; and

WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Credit Agreement or in the Guaranty, as applicable;

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Guaranty</u>. The Additional Guarantor irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed Obligations when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise in accordance with any Loan Document (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code). The Additional Guarantor acknowledges that, by signing this Joinder and delivering it to the Administrative Agent, the Guarantor becomes a "Guarantor" for all purposes of the Guaranty and the Credit Agreement and that its obligations thereunder are subject to all the provisions of the Guaranty and the Credit Agreement applicable to the obligations of a Guarantor thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Party to Guaranty and Credit Agreement</u>. Upon delivering this Joinder to the Administrative Agent, the Additional Guarantor becomes a party to the Guaranty and the Credit Agreement and will thereafter have all the rights and obligations of a Guarantor thereunder and be bound by all the provisions thereof as fully as if the Additional Guarantor were one of the original Guarantors parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Counterpart</u>. This Joinder may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Joinder by telecopy or other electronic imaging means (*e.g*. "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Joinder. The words "execution", "signed", "signature", and words of like import in this Joinder or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>GOVERNING LAW</u>. THIS JOINDER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS JOINDER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.** 

[*SIGNATURE PAGES FOLLOW*]

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IN WITNESS WHEREOF, the parties hereto have caused this Joinder to be duly executed by their respective authorized officers as of the day and year first above written.

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| |
|:---|
| **[ADDITIONAL GUARANTOR]** |
| By:_____________________________________________ |
| Name: |
| Title: |
| **BANK OF MONTREAL** |
| as Administrative Agent |
| By:_____________________________________________ |
| Name: |
| Title: |

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[Signature Page to Joinder]

## Exhibit 10.11

**Exhibit 10.11** 

***EXECUTION VERSION***

**SECOND AMENDED AND RESTATED GUARANTY** 

This **SECOND AMENDED AND RESTATED GUARANTY** (this "**Guaranty**") is entered into as of September 26, 2024, by and among each of the entities listed on the signature pages hereto as a Guarantor (together with any other Person that at any time after the date hereof becomes a party hereto pursuant to <u>Section</u> <u>13</u>, collectively, the "**Guarantors**" and each individually, a "**Guarantor**") and **Bank of Montreal**, as Administrative Agent under the Credit Agreement referred to below (in such capacity, together with its permitted successors and assigns, the "**Agent**") in favor of and for the benefit of the financial institutions (the "**Lenders**") party to the Credit Agreement (as defined below).

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Guarantors have previously entered into that certain Amended and Restated Guaranty dated as of May 11, 2022 (as the same may have been amended, restated, supplemented or otherwise modified prior to the date hereof, the "**Existing Guaranty**"), in favor of the lenders party to the Existing Credit Agreement (as defined in the Credit Agreement) and the Agent with respect to the obligations of the Borrower under the Existing Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Existing Credit Agreement is being amended and restated in its entirety pursuant to the Second Amended and Restated Credit Agreement dated as of September 26, 2024 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "**Credit Agreement**") by and among Accelerant Holdings, a Cayman Islands exempted company (the "**Borrower**"), the Guarantors party thereto, the lenders party thereto (the "**Lenders**") and the Agent and the other agents and arrangers party thereto, which Credit Agreement provides, subject to the terms and conditions thereof, for extensions of credit and other financial accommodations to be made by the Lenders to or for the benefit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each Guarantor is a Subsidiary of the Borrower, and thus the Guaranteed Obligations (as hereinafter defined) are being incurred for and will inure to the benefit of such Guarantor (which benefits are hereby acknowledged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It is a condition precedent to the effectiveness of the Credit Agreement that the Obligations be guaranteed by the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Each Guarantor is willing, irrevocably and unconditionally, to guaranty the Obligations.

**NOW, THEREFORE**, based upon the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lenders and the Agent to enter into the Credit Agreement and to make Loans thereunder, each Guarantor hereby agrees as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed Obligations (as hereinafter defined) when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise in accordance with any Loan Document (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code). The term "**Guaranteed Obligations**" means any and all Obligations of the Borrower (including, without limitation, any extensions, increases, modifications, substitutions, amendments, refinancings, refundings, replacements or renewals of any or all of the Obligations) whether now or hereafter made, incurred or created, whether absolute or contingent, liquidated or unliquidated, whether due or not due, and however arising.

Any interest on any portion of the Obligations that accrues after the commencement of any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of the Borrower (or, if interest on any portion of the Obligations ceases to accrue by operation of law by reason of the commencement of said proceeding, such interest as would have accrued on such portion of the Obligations if said proceeding had not been commenced) shall be included in the Obligations because it is the intention of the Guarantors and the Agent that the Obligations should be determined without regard to any rule of law or order that may relieve the Borrower of any portion of such Obligations.

The Guaranteed Obligations shall remain in full force and effect until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated. In the event that all or any portion of the Guaranteed Obligations is paid by the Borrower, the obligations of the Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) is rescinded or recovered directly or indirectly from the Agent or any Lender as a preference, fraudulent transfer or must otherwise be restored or returned by the Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its property, or otherwise, all as though such payments had not been made, and any such payments that are so rescinded or recovered shall constitute Guaranteed Obligations.

Subject to the other provisions of this <u>Section</u> <u>1</u>, upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, the Guarantors will promptly upon written demand by the Agent pay, or cause to be paid, in cash, to the Agent for the ratable benefit of the Lenders, an amount equal to the aggregate of the unpaid Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything contained in this Guaranty to the contrary notwithstanding, the obligations of any Guarantor under this Guaranty and the other Loan Documents shall be limited to a maximum aggregate amount equal to the largest amount that would not render

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable provisions of comparable state law or foreign law applicable to such Guarantor (collectively, the "**Fraudulent Transfer Laws**"), in each case after giving effect to all other liabilities of such Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Guarantor (x) in respect of intercompany indebtedness to the Borrower or other Affiliates of the Borrower to the extent that such indebtedness would be discharged in an amount equal to the amount paid by such Guarantor hereunder and (y) under any guaranty of subordinated Debt which guaranty contains a limitation as to maximum amount similar to that set forth in this <u>Section</u> <u>1(b)</u>, pursuant to which the liability of such Guarantor hereunder is included in the liabilities taken into account in determining such maximum amount) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, reimbursement, indemnification or contribution of such Guarantor pursuant to applicable law or pursuant to the terms of any agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in addition to the preceding <u>clause (i)</u> of this <u>Section</u> <u>1(b)</u>,<u> </u>in the case of any Guarantor that is organized under laws of Malta ("**Maltese Guarantor**") and is subject to group solvency capital requirements under (x) Solvency II Rules promulgated by the Solvency II Directive (Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance), as transposed in the Insurance Business Act (Cap 403 of the Laws of Malta), the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing the Solvency II Directive or (y) any European Insurance and Occupational Pensions Authority guidelines or guidelines issued by any applicable Governmental Authority, including Malta Financial Services Authority, in connection therewith, such Guarantor in breach of such requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the preceding clauses (i) and (ii) of this <u>Section</u> <u>1(b),</u> in the case of any Guarantor that is organized under the laws of Ireland ("**Irish Guarantor**") and is (x) registered with and regulated by the Central Bank of Ireland as an insurance, reinsurance or ancillary insurance intermediary and is subject to the provisions of the Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast) as transposed into Irish law by the European Union (Insurance Distribution) Regulations 2018 ("**Irish Insurance Distribution Regulations**") or (y) subject to any European Insurance and Occupational Pensions Authority guidelines issued by any Governmental Authority including the Central Bank of Ireland in connection therewith, such Irish Guarantor in breach of such requirements (including but not limited to the requirements of Regulation 21 of the Irish Insurance Distribution Regulations where applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any Guarantor incorporated under the laws of the United Kingdom, this Guaranty does not apply to any liability to the extent that it would result in this Guaranty constituting unlawful financial assistance within the meaning of sections 678 or 679 of the UK Companies Act 2006.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Guaranty Absolute; Continuing Guaranty</u>. The obligations of the Guarantors hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in cash in full of the Guaranteed Obligations, and each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees that: (a) this Guaranty is a guaranty of payment when due and not of collectibility; (b) the Agent may enforce this Guaranty upon the occurrence and during the continuance of an Event of Default under the Credit Agreement and the consent of the Required Lenders, subject to <u>Section</u> <u>8.02</u> of the Credit Agreement; (c) the obligations of such Guarantor hereunder are independent of the obligations of the Borrower under the Loan Documents and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Borrower and whether or not the Borrower is joined in any such action or actions; and (d) any Guarantor's or the Borrower's payment of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge such Guarantor's liability for any portion of the Guaranteed Obligations that has not been paid. This Guaranty is a continuing guaranty and shall be binding upon the Guarantors and their successors and assigns, and each Guarantor waives, to the extent permitted by applicable law, any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations. The Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained herein or affecting the rights and remedies of the Agent or any Lender hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Actions by Lenders</u>. Any Lender may from time to time, without notice or demand and without affecting the validity or enforceability of this Guaranty or giving rise to any limitation, impairment or discharge of any Guarantor's liability hereunder, (a) renew, extend, accelerate or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations in accordance with the terms of the relevant Loan Document, (b) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other obligations, (c) request and accept other guaranties of the Guaranteed Obligations and take and hold security for the payment of this Guaranty or the Guaranteed Obligations, (d) release, exchange, compromise, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person with respect to the Guaranteed Obligations and (e) exercise any other rights available to the Agent or the other Lenders, or any of them, under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Discharge</u>. This Guaranty and the obligations of the Guarantors hereunder shall be valid and enforceable subject to bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counter-claim, the plea of prescription, principle of public policy or similar laws relating to or limiting creditors' rights generally and by general principles

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of equity (regardless of whether enforcement is sought in equity or law), and shall not be subject to any limitation, impairment or discharge for any reason (other than to the extent provided in the Loan Documents), including, without limitation, the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (a) any failure to assert or enforce or any agreement not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (b) any waiver or modification of, or any consent to departure from, any of the terms or provisions of the Credit Agreement, any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations; (c) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (d) the application of payments received from any source to the payment of indebtedness other than the Guaranteed Obligations, even though the Agent or the Lenders, or any of them, might have elected to apply such payment to any part or all of the Guaranteed Obligations; (e) any defenses (other than defenses of payment or performance), set-offs or counterclaims which any Guarantor or the Borrower may assert against the Agent or any Lender in respect of the Guaranteed Obligations, including, but not limited to, failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction and usury; and (f) any other act or thing or omission, or delay to do any other act or thing (other than the payment in cash in full of the Guaranteed Obligations), which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Waivers</u>. Each Guarantor waives, to the extent permitted by applicable law, for the benefit of the Lenders: (a) any right to require the Agent, as a condition of payment or performance by such Guarantor, to (i) proceed against the Borrower or any other Person, (ii) proceed against or exhaust any security held by the Borrower, any other guarantor of the Guaranteed Obligations or any other Person, (iii) except as provided in any Loan Document, proceed against or have resort to any balance of any deposit account or credit on the books of any Lender in favor of the Borrower or any other Person, or (iv) pursue any other remedy in the power of any Lender; (b) any defense (other than the defense of payment or performance) arising by reason of the incapacity, lack of authority or any disability or other defense of any Guarantor or the Borrower including, without limitation, any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations, the Loan Documents or any agreement or instrument relating thereto or by reason of the cessation of the liability of any Guarantor or the Borrower from any cause; (c) any defense (other than the defense of payment or performance) based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense (other than the defense of payment or performance) based upon the Agent's errors or omissions in the administration of the Guaranteed Obligations, except for (i) the Agent's willful misconduct or gross negligence (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) the Agent's material breach of its obligations under the Loan Documents (to the extent determined by a court of competent jurisdiction by a final and non-appealable judgment); (e) (i) any principles or provisions of law, statutory or otherwise, that are or might be in conflict with the terms of this Guaranty and any legal or equitable discharge of any Guarantor's obligations hereunder, or in bankruptcy or in any other instance, (ii) the benefit of any statute of limitations

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affecting any Guarantor's liability hereunder or the enforcement hereof, (iii) any rights of set-offs, recoupments and counterclaims and (iv) promptness, diligence and any requirement that any Lender may have to protect, secure, perfect or insure any Lien or any property subject thereto; (f) any defense (other than the defense of payment or performance) based upon any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to the Borrower or any of its Subsidiaries or otherwise; (g) any defense (other than the defense of payment or performance) based upon any change, restructuring or termination of the corporate structure or existence of any Guarantor or any of its Subsidiaries; (h) any defense (other than the defense of payment or performance) based upon any failure of any Lender to disclose to any Guarantor any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower or any of its Subsidiaries now or hereafter known to such Lenders; (i) except as required by any other Loan Document, notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance of this Guaranty, notices of any renewal, notice of or proof of reliance, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower and notices of any of the matters referred to in <u>Sections 3</u> and <u>4</u> and any right to consent to any thereof; and (j) to the fullest extent permitted by applicable law, any defenses (other than the defense of payment or performance) or benefits that may be derived from or afforded by applicable law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Guaranty. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Agent or any Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Agent or any Lender against such Guarantor. For the purposes hereof "demand" shall include the commencement and continuance of any legal proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Guarantors' Rights of Subrogation, Contribution, Etc.; Subordination of Other Obligations</u>. (a) Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, each Guarantor shall, solely with respect to the Obligations, withhold exercise of (i) any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including, without limitation, (A) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Borrower, (B) any right to enforce, or to participate in, any claim, right or remedy that the Agent or any Lender now has or may hereafter have against the Borrower, and (C) any benefit of, and any right to

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participate in, any collateral or security hereafter held by any Lender and (ii) any right of contribution such Guarantor now has or may hereafter have against any other guarantor of any of the Obligations. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence, such amount shall be received and held in trust for the benefit of the Lenders, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Loan Documents or to be held as payment for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. Each Guarantor further agrees that, to the extent the agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against the Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against the Borrower, shall be junior and subordinate to any rights the Agent may have against the Borrower, to all right, title and interest the Agent may have in any such collateral or security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision of this Guaranty to the contrary, all rights of the Guarantors of contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of all the Guaranteed Obligations. Until all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, no Guarantor shall demand or receive any collateral security, payment or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim. If any such payment or distribution is made or becomes available to any Guarantor in any bankruptcy case or receivership, insolvency or liquidation proceeding, such payment or distribution shall be delivered by the Person making such payment or distribution directly to the Agent, for application to the payment of the Guaranteed Obligations. If any such payment or distribution is received by any Guarantor, it shall be held in trust for the benefit of the Lenders, and shall forthwith be transferred and delivered by such Guarantor to the Agent, in the exact form received and, if necessary, duly endorsed. No failure on the part of any Guarantor to make the payments required by this <u>Section</u> <u>6</u> (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of such Guarantor with respect to its obligations hereunder, and such Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Indemnity; Expenses</u>. Each Guarantor agrees that the Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in <u>Section</u> <u>10.04</u> of the Credit Agreement. To the maximum extent permitted by applicable law, each Guarantor agrees to indemnify and hold harmless the Agent from and against any and all claims, losses and liabilities in any way relating to, growing out of or resulting from this Guaranty and the transactions contemplated hereby (including, without limitation, enforcement of this Guaranty) in accordance with, and subject to the limitations set forth in, <u>Section</u> <u>10.04</u> of the Credit Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Financial Condition of Guarantee Parties</u>. No Lender shall have any obligation, and each Guarantor waives any duty on the part of any Lender, to disclose or discuss with such Guarantor its assessment, or such Guarantor's assessment, of the financial condition of such Guarantor or the Borrower or any matter or fact relating to the business, operations or condition of each of the Guarantors and the Borrower. Each Guarantor has adequate means to obtain information from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform its obligations under the Loan Documents and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Representations and Warranties</u>. Each Guarantor hereby represents and warrants that this Guaranty (a) has been duly executed and delivered by such Guarantor and (b) constitutes a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Set Off</u>. Any rights Lenders may have with respect to set off shall be solely as set forth in <u>Section</u> <u>10.08</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Payments</u>. Each Guarantor hereby guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against such Guarantor and without notice to or further assent by such Guarantor, any demand for payment of any of the Obligations made by the Agent or any Lender may be rescinded by the Agent or such Lender and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Agent or any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Guaranty or any property subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in the Credit Agreement, no amendment, modification, termination or waiver of any provision of this Guaranty (which in any event shall not include execution of counterparts to this Guaranty), and no consent to any departure by any Guarantor therefrom, shall in any event be effective without the written concurrence of the Agent and, in the case of any such amendment or modification, such Guarantor. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Additional Guarantors</u>. Any Subsidiary of the Borrower may become a party to this Guaranty and the Credit Agreement by signing and delivering to the Administrative Agent a joinder agreement, substantially in the form of <u>Exhibit A</u> attached hereto, whereupon such Subsidiary shall become a Guarantor for all purposes of this Guaranty, the Credit Agreement and each other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Miscellaneous</u>. It is not necessary for the Agent to inquire into the capacity or powers of any Guarantor or the Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.

No failure by the Agent to exercise, and no delay by the Agent in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided hereunder and each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Guaranty shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.

**THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.** 

The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby. This Guaranty constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Submission to Jurisdiction; Waiver of Jury Trial; etc</u>. <u>Section</u> <u>10.14(b)</u>, <u>(c)</u>, <u>(d)</u> and <u>Section</u> <u>10.15</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Guaranty by telecopy or other electronic imaging means (*e.g*. "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Guaranty. The words

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"execution", "signed", "signature", and words of like import in this Guaranty or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Interpretive Provisions</u>. <u>Sections 1.02</u>, <u>1.03</u>, <u>1.04</u>, and <u>1.08</u> of the Credit Agreement are incorporated herein by reference *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Bank of Montreal as Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bank of Montreal has been appointed to act as the Agent hereunder by the Lenders. The Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action, solely in accordance with this Guaranty and the Credit Agreement; <u>provided</u> that the Agent shall exercise, or refrain from exercising, any remedies under or with respect to this Guaranty in accordance with the instructions of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of the Credit Agreement relating to the Agent including, without limitation, the provisions relating to resignation of the Agent and the powers and duties and immunities of the Agent are incorporated herein by this reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Termination</u>. Upon all of the Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) shall have been satisfied by payment in cash in full and the Commitments have been terminated, this Guaranty, the guarantees made herein, and all of the obligations of the Guarantors under this Guaranty shall automatically terminate, and the Guarantors shall be automatically released from its Guaranteed Obligations and other obligations hereunder upon such termination, all without delivery of any instrument or performance of any act by any Person. In connection with any termination or release pursuant to this <u>Section</u> <u>19</u>, the Agent shall execute and deliver such documentation and releases at the expense of the Guarantors as may be reasonably requested by the Guarantors to effectuate or evidence such termination or release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment and Restatement</u>. Each of the parties hereto acknowledges and agrees that upon the execution and delivery of this Guaranty by each of the parties hereto, (a) this Guaranty shall amend and restate the Existing Guaranty in its entirety, (b) the rights and obligations of the Guarantors and the Agent under the Existing Guaranty shall be subsumed within and be governed by this Guaranty; <u>provided</u>, <u>however</u>, that all Guaranteed Obligations (as defined in the Existing Guaranty) of the Guarantors shall constitute Guaranteed Obligations hereunder, and neither this Guaranty nor any other Loan Document shall be deemed to evidence or result in a novation of such Guaranteed Obligations, and (c) all references to the Existing Guaranty in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Guaranty.

------

[Remainder of page intentionally left blank.]

------

IN WITNESS WHEREOF, each Guarantor has executed this Guaranty to be duly executed by its authorized officer thereunto as of the date first written above.

---

| | |
|:---|:---|
| **ACCELERANT HOLDINGS (CAYMAN) LTD.**<br> as a Guarantor | **ACCELERANT HOLDINGS (CAYMAN) LTD.**<br> as a Guarantor |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT DISTRIBUTION HOLDINGS LIMITED**<br> as a Guarantor | **ACCELERANT DISTRIBUTION HOLDINGS LIMITED**<br> as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT AGENCY LIMITED** | **ACCELERANT AGENCY LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Keith Harrison |
| Name: | Keith Harrison |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT HOLDINGS UK LTD.** | **ACCELERANT HOLDINGS UK LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Keith Harrison |
| Name: | Keith Harrison |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT MALTA HOLDINGS LIMITED** | **ACCELERANT MALTA HOLDINGS LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS INC.** | **ACCELERANT UNDERWRITING MANAGERS INC.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

---

[Signature Page to Second Amended and Restated Guaranty]

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---

| | |
|:---|:---|
| **CORNICHE ACQUISITION CO. LTD.** | **CORNICHE ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ George Peto |
| Name: | George Peto |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

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---

| | |
|:---|:---|
| **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ George Peto |
| Name: | George Peto |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED** | **ACCELERANT SERVICES UK LIMITED** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

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---

| | |
|:---|:---|
| **M2 ACQUISITION CO. LTD.** | **M2 ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **ARB ACQUISITION CO. LTD.** | **ARB ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **EVEREST RM ACQUISITION CO. LTD.** | **EVEREST RM ACQUISITION CO. LTD.** |
| as a Guarantor | as a Guarantor |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[Signature Page to Second Amended and Restated Guaranty]

------

---

| | |
|:---|:---|
| **BANK OF MONTREAL,** | **BANK OF MONTREAL,** |
| as Agent | as Agent |
| By: | /s/ Collin Wagner |
| Name: | Collin Wagner |
| Title: | Vice President |

---

[Signature Page to Second Amended and Restated Guaranty]

------

**<u>Exhibit A</u>**

**<u>FORM OF JOINDER TO GUARANTY</u>**

This **JOINDER AGREEMENT** (this "**Joinder**") dated as of [__________<u>]</u> is entered into by and between [NAME OF NEW GUARANTOR] (the "**Additional Guarantor**") and Bank of Montreal, as Administrative Agent.

WHEREAS, the Guarantors party thereto and Bank of Montreal, as Administrative Agent, are parties to that certain Second Amended and Restated Guaranty, dated as of September 26, 2024 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "**Guaranty**");

WHEREAS, the Additional Guarantor is required to execute this Joinder pursuant to Section 13 of the Guaranty and desires to become a party to the Guaranty and the Credit Agreement as a Guarantor thereunder; and

WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Credit Agreement or in the Guaranty, as applicable;

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Guaranty</u>. The Additional Guarantor irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed Obligations when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise in accordance with any Loan Document (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code). The Additional Guarantor acknowledges that, by signing this Joinder and delivering it to the Administrative Agent, the Guarantor becomes a "Guarantor" for all purposes of the Guaranty and the Credit Agreement and that its obligations thereunder are subject to all the provisions of the Guaranty and the Credit Agreement applicable to the obligations of a Guarantor thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Party to Guaranty and Credit Agreement</u>. Upon delivering this Joinder to the Administrative Agent, the Additional Guarantor becomes a party to the Guaranty and the Credit Agreement and will thereafter have all the rights and obligations of a Guarantor thereunder and be bound by all the provisions thereof as fully as if the Additional Guarantor were one of the original Guarantors parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Counterpart</u>. This Joinder may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Joinder by telecopy or other electronic imaging means (*e.g*. "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Joinder. The words "execution", "signed", "signature", and words of like import in this Joinder or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed

------

signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>GOVERNING LAW</u>. THIS JOINDER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS JOINDER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.** 

[*SIGNATURE PAGES FOLLOW*]

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**<u>Exhibit A</u>**

IN WITNESS WHEREOF, the parties hereto have caused this Joinder to be duly executed by their respective authorized officers as of the day and year first above written.

---

| |
|:---|
| **[ADDITIONAL GUARANTOR]** |
| By: |
| Name: |
| Title: |
| **BANK OF MONTREAL** |
| as Administrative Agent |
| By: |
| Name: |
| Title: |

---

## Exhibit 10.12

**Exhibit 10.12** 

***EXECUTION VERSION*** 

**AMENDED AND RESTATED CREDIT AGREEMENT** 

**dated as of May 11, 2022** 

**among** 

**ACCELERANT HOLDINGS,** 

**as Borrower,** 

**THE GUARANTORS FROM TIME TO TIME PARTY HERETO, as Guarantors,** 

**THE LENDERS FROM TIME TO TIME PARTY HERETO** 

**and** 

**BANK OF MONTREAL,** 

**as Administrative Agent,** 

**BMO CAPITAL MARKETS CORP.,** 

**LLOYDS BANK PLC,** 

**HSBC BANK PLC** 

**and** 

**RBC CAPITAL MARKETS, LLC,** 

**as Joint Lead Arrangers and Joint Bookrunners** 

**BMO CAPITAL MARKETS CORP.** 

**and** 

**LLOYDS BANK PLC,** 

**as Co-Sustainability Coordinators** 

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | ARTICLE I |  |
|  | DEFINITIONS AND ACCOUNTING TERMS |  |
|  Section 1.01 | Defined Terms | 1 |
|  Section 1.02 | Other Interpretive Provisions | 44 |
|  Section 1.03 | Accounting Terms | 45 |
|  Section 1.04 | Rounding | 45 |
|  Section 1.05 | Times of Day | 45 |
|  Section 1.06 | Timing of Payment or Performance | 45 |
|  Section 1.07 | [Reserved] | 45 |
|  Section 1.08 | Divisions | 46 |
|  Section 1.09 | [Reserved] | 46 |
|  Section 1.10 | Pro Forma Effect | 46 |
|  Section 1.11 | Limited Condition Investments | 47 |
|  | ARTICLE II |  |
|  | THE COMMITMENTS AND LOANS |  |
|  Section 2.01 | Loans | 48 |
|  Section 2.02 | Borrowings, Conversions and Continuations of Loans | 49 |
|  Section 2.03 | Optional and Mandatory Prepayments | 50 |
|  Section 2.04 | Repayment of the Loans | 53 |
|  Section 2.05 | Interest | 54 |
|  Section 2.06 | Fees | 55 |
|  Section 2.07 | Computation of Interest and Fees | 55 |
|  Section 2.08 | Evidence of Debt | 56 |
|  Section 2.09 | Payments Generally; Administrative Agent's Clawback | 56 |
|  Section 2.10 | Sharing of Payments by Lenders | 58 |
|  Section 2.11 | Defaulting Lenders | 58 |
|  Section 2.12 | Incremental Facilities | 60 |
|  Section 2.13 | ESG Adjustments | 63 |
|  | ARTICLE III |  |
|  | TAXES, YIELD PROTECTION AND ILLEGALITY |  |
|  Section 3.01 | Taxes | 64 |
|  Section 3.02 | Illegality | 67 |
|  Section 3.03 | Inability to Determine Rates; Successor Rate | 68 |
|  Section 3.04 | Increased Costs; Reserves on EURIBOR Loans | 70 |
|  Section 3.05 | Compensation for Losses | 71 |
|  Section 3.06 | Mitigation Obligations; Replacement of Lenders | 72 |
|  Section 3.07 | Survival | 72 |

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i

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| | | |
|:---|:---|:---|
|  | ARTICLE IV |  |
|  | CONDITIONS PRECEDENT |  |
|  Section 4.01 | Conditions to Effectiveness | 72 |
|  Section 4.02 | Conditions to the Making of Loans | 74 |
|  | ARTICLE V |  |
|  | REPRESENTATIONS AND WARRANTIES |  |
|  Section 5.01 | Existence, Qualification and Power | 75 |
|  Section 5.02 | Authorization; No Contravention | 75 |
|  Section 5.03 | Execution and Delivery; Binding Effect | 75 |
|  Section 5.04 | No Material Adverse Effect | 76 |
|  Section 5.05 | Litigation | 76 |
|  Section 5.06 | Property | 76 |
|  Section 5.07 | Taxes | 76 |
|  Section 5.08 | Disclosure | 77 |
|  Section 5.09 | Compliance with Laws | 77 |
|  Section 5.10 | ERISA Compliance | 77 |
|  Section 5.11 | Environmental Matters | 78 |
|  Section 5.12 | Margin Regulations; Federal Reserve Regulations; Use of Proceeds | 78 |
|  Section 5.13 | Investment Company Act | 78 |
|  Section 5.14 | Anti-Corruption Laws and Sanctions | 78 |
|  Section 5.15 | Solvency | 79 |
|  Section 5.16 | Beneficial Ownership Certification | 79 |
|  Section 5.17 | EEA Financial Institutions | 79 |
|  Section 5.18 | Insurance Licenses | 79 |
|  | ARTICLE VI |  |
|  | AFFIRMATIVE COVENANTS |  |
|  Section 6.01 | Financial Statements and Statutory Statements | 80 |
|  Section 6.02 | Certificates; Other Information | 80 |
|  Section 6.03 | Notices | 82 |
|  Section 6.04 | Preservation of Existence, Etc. | 83 |
|  Section 6.05 | Maintenance of Properties | 83 |
|  Section 6.06 | Maintenance of Insurance | 83 |
|  Section 6.07 | Payment of Obligations | 84 |
|  Section 6.08 | Compliance with Laws | 84 |
|  Section 6.09 | Books and Records | 84 |
|  Section 6.10 | Inspection Rights | 84 |
|  Section 6.11 | Use of Proceeds | 85 |
|  Section 6.12 | Additional Guarantors | 85 |
|  Section 6.13 | Further Assurances | 85 |

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ii

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---

| | | |
|:---|:---|:---|
|  | ARTICLE VII |  |
|  | NEGATIVE COVENANTS |  |
|  Section 7.01 | Indebtedness | 86 |
|  Section 7.02 | Liens | 88 |
|  Section 7.03 | Investments | 91 |
|  Section 7.04 | Non-OC Asset Sales and Non-OC Reinsurance Transactions | 91 |
|  Section 7.05 | Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries | 92 |
|  Section 7.06 | Restricted Payments | 93 |
|  Section 7.07 | Transactions with Affiliates | 94 |
|  Section 7.08 | Certain Restrictive Agreements | 97 |
|  Section 7.09 | Use of Proceeds | 97 |
|  Section 7.10 | Change in Nature of Business, Organizational Documents and Fiscal Year | 98 |
|  Section 7.11 | Financial Covenants | 98 |
|  | ARTICLE VIII |  |
|  | EVENTS OF DEFAULT AND REMEDIES |  |
|  Section 8.01 | Events of Default | 100 |
|  Section 8.02 | Remedies Upon Event of Default | 102 |
|  Section 8.03 | Application of Funds | 103 |
|  | ARTICLE IX |  |
|  | ADMINISTRATIVE AGENT |  |
|  Section 9.01 | Appointment and Authority | 104 |
|  Section 9.02 | Rights as a Lender | 104 |
|  Section 9.03 | Exculpatory Provisions | 104 |
|  Section 9.04 | Reliance by Administrative Agent | 106 |
|  Section 9.05 | Delegation of Duties | 106 |
|  Section 9.06 | Resignation and Removal of Administrative Agent | 107 |
|  Section 9.07 | Non-Reliance on Administrative Agent and Other Lenders | 108 |
|  Section 9.08 | No Other Duties, Etc. | 108 |
|  Section 9.09 | Administrative Agent May File Proofs of Claim | 108 |
|  Section 9.10 | Posting of Communications | 109 |
|  Section 9.11 | Certain ERISA Matters | 110 |
|  Section 9.12 | Erroneous Payments | 111 |
|  | ARTICLE X |  |
|  | MISCELLANEOUS |  |
|  Section 10.01 | Amendments, Etc. | 114 |
|  Section 10.02 | Notices; Effectiveness; Electronic Communication | 116 |
|  Section 10.03 | No Waiver; Cumulative Remedies; Enforcement | 118 |

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iii

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| | | |
|:---|:---|:---|
|  Section 10.04 | Expenses; Indemnity; Damage Waiver | 118.0 |
|  Section 10.05 | Payments Set Aside | 121.0 |
|  Section 10.06 | Successors and Assigns | 121.0 |
|  Section 10.07 | Treatment of Certain Information; Confidentiality | 129.0 |
|  Section 10.08 | Right of Setoff | 130.0 |
|  Section 10.09 | Interest Rate Limitation | 130.0 |
|  Section 10.10 | Counterparts; Integration | 131.0 |
|  Section 10.11 | Survival of Representations and Warranties | 131.0 |
|  Section 10.12 | Severability | 131.0 |
|  Section 10.13 | Replacement of Lenders | 132.0 |
|  Section 10.14 | Governing Law; Jurisdiction; Etc. | 132.0 |
|  Section 10.15 | Waiver of Jury Trial | 134.0 |
|  Section 10.16 | No Advisory or Fiduciary Responsibility | 134.0 |
|  Section 10.17 | Electronic Execution of Assignments and Certain Other Documents | 135.0 |
|  Section 10.18 | USA PATRIOT Act | 135.0 |
|  Section 10.19 | Judgment Currency | 135.0 |
|  Section 10.20 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 136.0 |
|  Section 10.21 | Acknowledgment Regarding Any Supported QFCs | 136.0 |
|  Section 10.22 | Existing Credit Agreement Amended and Restated; Consents to Amendments to Existing Loan Documents | 137.0 |

---

iv

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**Schedules:** 

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| | |
|:---|:---|
| Schedule 2.01 | Commitments |
| Schedule 7.01 | Existing Debt |
| Schedule 7.02 | Existing Liens |
| Schedule 7.07 | Transactions with Affiliates |
| Schedule 10.02 | Administrative Agent's Office; Certain Addresses for Notices |

---

**Exhibits:** 

---

| | |
|:---|:---|
| Exhibit A | – Form of Loan Notice |
| Exhibit B-1 | – Form of Euro Note |
| Exhibit B-2 | – Form of Dollar Note |
| Exhibit C | – Form of Compliance Certificate |
| Exhibit D | – Form of Assignment and Assumption |
| Exhibit E-1 | – Form of U.S. Tax Compliance Certificate |
| Exhibit E-2 | – Form of U.S. Tax Compliance Certificate |
| Exhibit E-3 | – Form of U.S. Tax Compliance Certificate |
| Exhibit E-4 | – Form of U.S. Tax Compliance Certificate |
| Exhibit F | – Form of Guaranty |
| Exhibit G | – Form of Solvency Certificate |
| Exhibit H | – Auction Procedures |
| Exhibit I | – Beneficial Ownership Certification |

---

v

------

**AMENDED AND RESTATED CREDIT AGREEMENT** 

This AMENDED AND RESTATED CREDIT AGREEMENT (this "<u>Agreement</u>") is entered into as of May 11, 2022, among Accelerant Holdings, a Cayman Islands exempted company with registration number 381680 (the "<u>Borrower</u>"), each Guarantor from time to time party hereto, each lender from time to time party hereto (collectively, the "<u>Lenders</u>" and individually, a "<u>Lender</u>") and Bank of Montreal, as Administrative Agent.

The Borrower, the Administrative Agent, the Guarantors party thereto and the lenders party thereto entered into the Credit Agreement dated as of January 29, 2021 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the "<u>Existing Credit Agreement</u>").

The Borrower wishes to, among other things, amend and restate the Existing Credit Agreement, and the Lenders are willing to amend and restate the Existing Credit Agreement. Accordingly, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING TERMS** 

Section 1.01 **<u>Defined Terms</u>**

As used in this Agreement, the following terms shall have the meanings set forth below:

"<u>Accelerant Cayman</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company with registration number 347465.

"<u>Accounting Change</u>" has the meaning specified in Section 1.03(b).

"<u>Act</u>" has the meaning specified in Section 10.18.

"<u>Additional Restatement Euro Loan</u>" has the meaning assigned to such term in Section 2.01(a)(i).

"<u>Adjusted Term SOFR</u>" means, with respect to any Interest Period, the per annum rate equal to the sum of (i) Term SOFR plus (ii)(x) 0.10% (10 basis points) for a one-month Interest Period, (y) 0.15% (15 basis points) for a three-month Interest Period, and (z) 0.25% (25 basis points) for a six-month Interest Period.

"<u>Administrative Agent</u>" means Bank of Montreal in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

"<u>Administrative Agent's Office</u>" means the Administrative Agent's address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

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"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form acceptable to the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution*.*

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Affiliated Lender</u>" has the meaning specified in Section 10.06(b)(vii)(A).

"<u>Agent-Related Persons</u>" means, collectively, the Administrative Agent and the Arrangers, together with their respective Affiliates and the partners, officers, directors, employees, agents and advisors of such Persons and Affiliates.

"<u>Agreement</u>" means this Amended and Restated Credit Agreement.

"<u>Agreed Currencies</u>" means Euros and Dollars.

"<u>All-In Yield</u>" means, with respect to any Indebtedness, the yield of such Indebtedness, whether in the form of interest rate, margin, original issue discount, upfront fees, index floors or otherwise, in each case payable by the Borrower generally to lenders, <u>provided</u> that original issue discount and upfront fees shall be equated to interest rate assuming a four-year life to maturity, and shall not include arrangement fees, structuring fees, ticking fees, commitment fees, unused line fees, underwriting fees and any amendment and similar fees (regardless of whether paid in whole or in part to the relevant lenders).

"<u>Altamont</u>" means Altamont Capital Management, LLC and any of its Controlled Investments Affiliates.

"<u>Anti-Corruption Laws</u>" means all laws, rules and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

"<u>Applicable Insurance Regulatory Authority</u>" means, with respect to any Regulated Insurance Company, the insurance commission or similar Governmental Authority located in the jurisdiction in which such Regulated Insurance Company is domiciled.

"<u>Applicable Percentage</u>" means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place), equal to a fraction, the numerator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of such Lender and the denominator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of all Lenders.

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"<u>Applicable Rate</u>" means, from time to time, the following percentages per annum, based upon the Consolidated Senior Debt to Capitalization Ratio, as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, as set forth below:

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| | | |
|:---|:---|:---|
| **Pricing Level** | **Consolidated Senior Debt<br>to Capitalization Ratio** | **Applicable Rate for SOFR<br>Loans and EURIBOR<br>Loans** |
| 1 | Less than or equal to 25% | 3.50% |
| 2 | Greater than 25% but less<br>than or equal to 30% | 3.75% |
| 3 | Greater than 30% | 4.00% |

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Except as otherwise provided in the paragraph below, adjustments, if any, to the Pricing Level then in effect shall be effective two (2) Business Days after the Administrative Agent has received financial statements pursuant to Section 6.01(i) or Section 6.01(ii), as applicable, and the related Compliance Certificate pursuant to Section 6.02(i) (it being understood and agreed that each change in Pricing Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change).

Notwithstanding the foregoing, Level 1 shall be deemed to be applicable until the Administrative Agent's receipt of such financial statements and Compliance Certificate for the first fiscal period ending after the Restatement Effective Date (unless such financial statements demonstrate that Level 2 or Level 3 should have been applicable during such period, in which case such other Pricing Level shall be deemed to be applicable during such period) and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance with the preceding paragraph.

In the event that any financial statements delivered pursuant to Section 6.01(i) or Section 6.01(ii) or any Compliance Certificate delivered pursuant to Section 6.02(i) is inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Rate for any period (an "<u>Applicable Period</u>") than the Applicable Rate applied for such Applicable Period, then (i) the Borrower shall immediately deliver to the Administrative Agent corrected financial statements and a corrected Compliance Certificate for such Applicable Period, (ii) the Applicable Rate shall be determined based on the corrected Compliance Certificate for such Applicable Period, and (iii) the Borrower shall immediately pay to the Administrative Agent (for the account of the Lenders during the Applicable Period or their successors and assigns) the accrued additional interest owing as a result of such increased Applicable Rate for such Applicable Period. This paragraph shall not limit the rights of the Administrative Agent or the Lenders under Section 2.05 and Article VIII, and shall survive the termination of this Agreement.

"<u>Approved Electronic Platform</u>" has the meaning specified in Section 9.10(a).

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

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"<u>Arrangers</u>" means BMO Capital Markets Corp., Lloyds Bank PLC, HSBC Bank PLC and RBC Capital Markets, LLC, in their capacities as joint lead arrangers and joint bookrunners.

"<u>Asset Sale Threshold</u>" means an aggregate amount equal to the greater of $3,600,000 and (b) 3.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form approved by the Administrative Agent.

"<u>Auction</u>" has the meaning specified in Section 10.06(b)(vii)(B).

"<u>Auction Manager</u>" means any financial institution or advisor agreed by the Borrower and the Administrative Agent to act as an arranger in connection with any repurchases pursuant to Section 10.06(b)(vii)(B).

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy".

"<u>Benchmark</u>" means, initially, with respect to any Term Benchmark Loan denominated in any Agreed Currency, the Relevant Rate for such Agreed Currency; <u>provided</u> that if a Benchmark Transition Event and the related Benchmark Replacement Date have occurred with respect to the Relevant Rate or the then-current Benchmark for such Agreed Currency, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate.

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the relevant Governmental Authority or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement

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to such Benchmark for syndicated credit facilities denominated in the applicable Agreed Currency and (b) the Benchmark Replacement Adjustment; <u>provided</u> that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of any Benchmark with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the relevant Governmental Authority or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for syndicated credit facilities denominated in the applicable Agreed Currency at such time.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Interest Period," timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).

"<u>Benchmark Replacement Date</u>" means, with respect to any Benchmark, the earlier to occur of the following events with respect to such Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark permanently or indefinitely ceases to provide such Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

"<u>Benchmark Transition Event</u>" means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark announcing that such administrator has ceased or will cease to provide such Benchmark, permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, which states that the administrator of such Benchmark has ceased or will cease to provide such Benchmark permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark announcing that such Benchmark is no longer representative.

"<u>Benchmark Transition Start Date</u>" means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders.

"<u>Benchmark Unavailability Period</u>" means, with respect to any Benchmark, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to such Benchmark and solely to the extent that such Benchmark has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced such Benchmark for all purposes hereunder in accordance with the Section titled "Effect of Benchmark Transition Event" and (y) ending at the time that a Benchmark Replacement has replaced such Benchmark for all purposes hereunder pursuant to Section 3.03(b).

"<u>Beneficial Owner</u>" means each of the following: (a) each individual, if any, who, directly or indirectly, owns 25% or more of the Borrower's equity interests; and (b) a single individual with significant responsibility to control, manage, or direct the Borrower.

"<u>Beneficial Ownership Certification</u>" means a certificate in the form attached hereto as Exhibit I or such other certificate in form and substance reasonably acceptable to the Administrative Agent and the Borrower, certifying, among other things, the Beneficial Owners of the Borrower.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan."

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"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>Board of Directors</u>" means, with respect to any Person, (a) in the case of any corporation or exempted company, the board of directors of such Person or any committee thereof duly authorized to act on behalf of such board, (b) in the case of any limited liability company, the board of managers of such Person or the board of directors or the board of managers of the managing member of such Person, as the case may be, (c) in the case of any partnership or exempted limited partnership, the board of directors or board of managers of the general partner of such Person and (d) in any other case, the functional equivalent of the foregoing.

"<u>Borrower Assignment and Acceptance</u>" means an Assignment and Assumption Agreement substantially in the form of <u>Exhibit D</u>, with such amendments or modifications as may be approved by the Administrative Agent.

"<u>Borrower</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Borrower Materials</u>" has the meaning specified in Section 6.02.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period made by the Lenders pursuant to Section 2.01.

"<u>Borrowing Date</u>" means the date of the making of a Loan.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions in the State of New York or London, England are authorized or required by Law to close; <u>provided</u> that, when used in connection with a Loan, the term "<u>Business Day</u>" shall exclude any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be operative, such other payment system (if any) determined by the Administrative Agent to be a suitable replacement) is not open.

"<u>Capital and Surplus</u>" means, for any Insurance Subsidiary as of any date, the total statutory capital and surplus (or any successor line item description that contains the same information) as shown in its Statutory Statement, or an amount determined in a consistent manner for any date other than one as of which a Statutory Statement was prepared.

"<u>Capital Lease</u>" of any Person means any lease of (or other arrangement conveying the right to use) property (whether real, personal or mixed) by such Person as lessee which would, in accordance with GAAP, as in effect as of the date hereof, be required to be accounted for as a capital lease on the balance sheet of such Person; <u>provided</u> that all leases of any Person that are or would be characterized as operating leases in accordance with GAAP immediately prior to the Restatement Effective Date (whether or not such operating leases were in effect on such date) shall continue to be accounted for as operating leases (and not as Capital Leases) for purposes of this

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Agreement (except that financial statements delivered pursuant to Sections 6.01(i) or 6.01(ii) shall reflect such operating leases in accordance with GAAP as in effect at the time of such delivery) regardless of any change in GAAP following the Restatement Effective Date that would otherwise require such leases to be recharacterized as Capital Leases.

"<u>Capitalized Lease Obligations</u>" means, as of any date of determination in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP; <u>provided</u> that all obligations of any Person that are or would be characterized as operating lease obligations in accordance with GAAP immediately prior to the Restatement Effective Date (whether or not such operating lease obligations were in effect on such date) shall continue to be accounted for as operating lease obligations (and not as Capitalized Lease Obligations) for purposes of this Agreement (except that financial statements delivered pursuant to Sections 6.01(i) or 6.01(ii) shall reflect such operating leases in accordance with GAAP as in effect at the time of such delivery) regardless of any change in GAAP following the Restatement Effective Date that would otherwise require such obligations to be recharacterized as Capitalized Lease Obligations.

"<u>Casualty Event</u>" means any casualty or other insured damage to any property of the Borrower or any Subsidiary, or any taking of any such property under power of eminent domain or by condemnation or similar proceeding, or any transfer of any such property in lieu of a condemnation or similar taking thereof.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law; (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "<u>Change in Law</u>", regardless of the date enacted, adopted or issued.

"<u>Change of Control</u>" means the occurrence of any of the following: (a) prior to a Qualified IPO, Altamont ceases to beneficially own, directly or indirectly, Equity Interests of the Borrower representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; (b) after a Qualified IPO, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Altamont, becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Equity Interests of the Borrower representing both (i) more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower and (ii) more than the percentage of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower that are beneficially owned, directly or directly, by Altamont; (c) the majority of the seats (other than vacant seats) on the Board of Directors of the Borrower cease to be occupied by (i) Persons who were members of the Board of Directors of the Borrower on the Restatement Effective Date or (ii)

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any new members whose election to such Board of Directors or whose nomination for election was approved by a vote of a majority of the members of the Board of Directors of the Borrower then still in office who were either members on the Restatement Effective Date or whose election or nomination for election was previously so approved; or (d) the occurrence of a "change of control" (howsoever defined) in any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount that constitutes an "event of default" under such instrument.

"<u>Class</u>" when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Restatement Dollar Loans or Restatement Euro Loans.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>Commitment</u>" means, as to each Lender, such Lender's Restatement Dollar Commitment or New Commitment, as applicable, in effect as of such time.

"<u>Communications</u>" has the meaning specified in Section 9.10(c).

"<u>Compliance Certificate</u>" means a certificate substantially in the form of Exhibit C.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Adjusted Capitalization</u>" means, as of any date of determination, the sum of (i) Consolidated Adjusted Debt, plus (ii) Consolidated Net Worth as of such date, plus, without duplication, (iii) the Hybrid Securities Allowed Amount, in each case as of such date.

"<u>Consolidated Adjusted Debt</u>" means, as of any date of determination, (a) Consolidated Total Debt, minus (b) Consolidated Operating Debt.

"<u>Consolidated Adjusted EBITDA</u>" means, with respect to any Person for any period, Consolidated EBITDA for such period, giving pro forma effect to any applicable Specified Transaction, plus, without duplication, (a) Pro Forma Commission Adjustment for such period, plus (b) Pro Forma Run-Rate Commission Adjustment for such period, plus (c) Pro Forma Run-Rate Premium Adjustment for such period.

"<u>Consolidated Adjusted Senior Debt</u>" means, as of any date of determination, (a) Consolidated Senior Debt, minus (b) Consolidated Senior Operating Debt.

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"<u>Consolidated EBITDA</u>" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period (plus, without duplication, all net income of the Insurance Subsidiaries):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following items to the extent deducted in calculating such Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Interest Expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Consolidated Income Taxes; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) consolidated depreciation expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) consolidated amortization expense or impairment charges recorded in connection with the application of FASB ASC
360 (Impairment or Disposal of Long-Lived Assets), FASB ASC 205 (Presentation of Financial Statements – Discontinued Operations), FASB ASC 350 (Intangibles – Goodwill and Other), FASB ASC 360 (Property, Plant and Equipment) and FASB ASC
360 (Property, Plant and Equipment); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) other non-cash charges reducing Consolidated Net Income, including any
write-offs or write-downs (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid
in a prior period not included in the calculation); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) any (i) Transaction Costs and (ii) fees, costs, charges or other expenses incurred in connection with
(A) any actual or proposed investment, joint venture, asset sale, acquisition, recapitalization or issuance of Equity Interest or the incurrence of Debt (including, with respect to Debt, a refinancing thereof) or (B) any amendment, waiver,
consent or modification to the Loan Documents, any documentation governing any Debt (including as a result of FASB ASC 805 (Business Combinations)) or any documentation governing the terms of any transaction described in the immediately preceding
subclause (A), whether or not such transaction or amendment, waiver, consent or modification is successful, or modification of Debt; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the amount of "run rate" cost savings, synergies, operating improvements and operating expense
reductions resulting from, or related to, mergers and other business combinations, acquisitions, investments, divestitures, dispositions, discontinuance of activities or operations, the consolidation or closing of locations, and other specified
transactions, restructurings, cost savings initiatives, operational changes and other initiatives (including acquisitions occurring prior to the Restatement Effective Date) that are reasonably identifiable and projected by the Borrower in good faith
to result from actions either taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) within twenty-four (24) months of the underlying action or transaction
(or undertaken or implemented prior to consummation of the acquisition or other applicable transaction), in each case, calculated (i) on a

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pro forma basis as though such cost savings, synergies, operating improvements or operating expense reductions had been realized on the first day of such period and (ii) net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that "run rate" means the full recurring benefit that is associated with any action taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Restatement Effective Date) (which adjustments may be incremental to (but not duplicative of)) pro forma cost savings, synergies, operating improvements or operating expense reduction adjustments made pursuant to clause (8) below; except that the aggregate amount added back pursuant to this clause (7), when aggregated with the aggregate amount added back pursuant to clause (8) below and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added back pursuant to Section 1.10, in each case with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the amount of any restructuring charges (including lease termination, severance and relocation expenses),
integration costs or other business optimization expenses or non-ordinary course reserves; except that the aggregate amount added back pursuant to this clause (8), when aggregated with the aggregate amount
added back pursuant to clause (7) above and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added back pursuant to Section 1.10, in each case
with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) (A) consulting and similar fees, expenses and indemnities payable to Altamont and its Affiliates to the extent
payment thereof is not prohibited by this Agreement and (B) compensation and expense reimbursements payable to directors and officers, any indemnity payments, and any expenses for director and officer insurance premiums to the extent such
payment is not prohibited by this Agreement, in each case, to the extent the same were deducted (and not added back) in such period in computing Consolidated Net Income; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) any non-recurring, unusual or extraordinary charges, losses or expenses
(excluding charges, losses and/or expenses of the type added back pursuant to clause (8) above) deducted (and not added back) in such period in computing Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by non-cash items increasing Consolidated Net Income of such Person for such period (excluding any items which represent the recognition of deferred revenue, the reversal of any accrual of, or reserve for, anticipated cash charges that reduced Consolidated EBITDA in any prior period and any items for which cash was received in a prior period that did not increase Consolidated EBITDA in any prior period); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) increased or decreased (without duplication) to eliminate the following items to the extent reflected in Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any non-ordinary course net gain or loss resulting in such period from
Hedging Obligations and the application of FASB ASC 825 (Financial Instruments) and related codifications, including FASB ASC 326;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all unrealized gains and losses relating to financial instruments or liabilities to which fair market value
accounting is applied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any net gain or loss resulting in such period from currency translation gains or losses related to currency
remeasurements of Debt (including any net loss or gain resulting from Hedging Obligations for currency exchange risk).

Notwithstanding the foregoing, for purposes of determining Consolidated EBITDA under this Agreement for any fiscal quarter ended prior to the Effective Date, Consolidated EBITDA for such fiscal quarters shall be as set forth below:

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| | | |
|:---|:---|:---|
| **Fiscal quarter ending on the date set forth below** | **Consolidated EBITDA** | **Consolidated EBITDA** |
|  March 31, 2020 | € | 4835264.67 |
|  June 30, 2020 | € | 6815539.47 |
|  September 30, 2020 | € | 6309228.32 |
|  December 31, 2020 | € | 5391631.49 |

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"<u>Consolidated Income Taxes</u>" means, with respect to any Person for any period, Taxes imposed upon such Person or other payments required to be made by such Person to any Governmental Authority, which Taxes or other payments are calculated by reference to the income or profits or capital of such Person or such Person and its Subsidiaries (to the extent such income or profits were included in computing Consolidated Net Income for such period), including state, franchise and similar Taxes and withholding Taxes regardless of whether such Taxes or payments are required to be remitted to any Governmental Authority. For purposes of this Agreement, Consolidated Income Taxes of the Borrower and its Subsidiaries for any fiscal quarter shall be calculated by the Borrower in good faith and in accordance with GAAP.

"<u>Consolidated Interest Expense</u>" means, for any period, the interest expense of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, including the portion of any payments or accruals with respect to Capitalized Lease Obligations that are allocable to interest expense as reasonably determined by the Borrower in accordance with GAAP.

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"<u>Consolidated Net Income</u>" means, for any period, the net income (loss) of any Person (the "<u>primary Person</u>") and its Subsidiaries determined on a consolidated basis in accordance with GAAP (before preferred stock dividends); <u>provided</u> that (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any net income (but not loss) of the Insurance Subsidiaries of the primary Person determined on a combined basis shall be excluded from such Consolidated Net Income; <u>provided</u> that, notwithstanding the foregoing, with respect to any such period, there shall be included in Consolidated Net Income any such amount determined on a combined basis that could have been distributed directly or indirectly by the Insurance Subsidiaries on a combined basis to the primary Person or any Credit Party as a dividend, distribution or return of capital or as a payment of interest or principal on any surplus note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any after-tax effect of gain or loss (less all fees and expenses relating thereto) realized upon sales or other dispositions of any assets of the primary Person or such Subsidiary of the primary Person (including pursuant to any sale and leaseback transaction) other than in the ordinary course of business shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any after-tax effect of income (loss) from the early extinguishment of Debt or early termination of Hedging Obligations or other derivative instruments shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the after-tax effect of extraordinary gain or loss shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the after-tax effect of the cumulative effect of a change in accounting principles shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any after-tax effect of non-cash impairment charges recorded in connection with the application of FASB ASC 360 (Impairment or Disposal of Long-Lived Assets), FASB ASC 205 (Presentation of Financial Statements – Discontinued Operations), FASB ASC 350 (Intangibles – Goodwill and Other) and FASB ASC 360 (Property, Plant and Equipment) shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any non-cash compensation expense realized for grants of performance shares, stock options or other rights to officers, directors and employees of the primary Person or any Subsidiary of the primary Person shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all impairment charges in connection with investments made by any Insurance Subsidiary of the primary Person in the ordinary course of business shall be excluded from such Consolidated Net Income; <u>provided</u> that the amount of any cash charges relating to such impairment charges shall not be excluded from Consolidated Net Income by operation of this clause (h) to the extent such cash charges reduce the Capital and Surplus of such Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) interest related realized net investment portfolio trading losses of any Insurance Subsidiary of the primary Person shall be excluded from Consolidated Net Income to the extent such losses do not reduce the Capital and Surplus of such Insurance Subsidiary.

"<u>Consolidated Net Worth</u>" means, as of any date of determination, the total common and preferred shareholders' equity of the Borrower and its Subsidiaries as of such date, determined on a consolidated basis in accordance with GAAP.

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"<u>Consolidated Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Senior Debt</u>" means, as of any date of determination, (a) the aggregate outstanding principal amount of the Loans, plus (b) the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries (excluding Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

"<u>Consolidated Senior Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Senior Debt to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Consolidated Senior Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries (excluding Operating Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Operating Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

"<u>Consolidated Total Assets</u>" means at any date the total assets of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt</u>" means, as of any date of determination, the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Debt (plus, solely for the purposes of calculating the Consolidated Total Debt to Capitalization Ratio in connection with the incurrence of any Debt in reliance on Section 7.01(xi) during the Restatement Dollar Loan Availability Period, the aggregate amount of the unused Restatement Dollar Commitments) to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Continuing Restatement Euro Loans</u>" has the meaning assigned to such term in Section 2.01(a)(i).

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

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"<u>Controlled Investment Affiliate</u>" means, with respect to any Person, any other Person (other than a natural person) established or organized for the purpose of making debt or equity investments in one or more companies and that is controlled or managed by, or under common control or management with, such Person or any of its Affiliates that are organized to invest in, hold or manage (directly or indirectly) such debt obligations or equity of portfolio companies (and that are not themselves portfolio companies).

"<u>Covered Entity</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" has the meaning assigned to it in Section 10.21.

"<u>Credit Party</u>" means the Borrower and the Guarantors.

"<u>Cure Amounts</u>" has the meaning specified in Section 7.11(e).

"<u>Cure Right</u>" has the meaning specified in Section 7.11(e).

"<u>Debt</u>" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without duplication, all non-contingent obligations (and, for purposes of Section 7.01 and Section 8.01(e), all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under letters of credit (both standby and commercial), bankers' acceptances, bank guaranties and similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Hedging Obligations of such Person (<u>provided</u> that the amount of any Hedging Obligations of any Person that constitutes Debt of such Person at any time shall be equal to the Swap Termination Value of the Swap Contracts giving rise to such Hedging Obligations);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable and accrued expenses payable and accruals for payroll, in each case in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) (A) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person to the extent of the value of such property (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business) and (B) Debt of others secured by a Lien on, or payable out of the proceeds of production from, any property or asset of such Person, whether or not such obligation is assumed by such Person; <u>provided</u> that the amount of any such Debt of others that constitutes Debt of such Person solely by reason of this clause (v)(B) shall not for purposes of this Agreement exceed the greater of the fair market value of the properties or assets subject to such Lien and the amount of Debt secured thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all Capitalized Lease Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all obligations of such Person to purchase securities or other property which arise out of or in connection with the sale of the same or substantially similar securities or property or any loans incurred by such Person which are principally secured by securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all obligations of such Person in respect of Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Debt of any other Person (including any partnership in which such Person is general partner and any unincorporated joint venture in which such Person is a joint venturer) to the extent such Person would by virtue of such Person's ownership interest in such other Person be liable therefor under applicable Law or any agreement or instrument to which it is a party, except to the extent the terms of such Debt and provide that such Person shall not be liable therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) all Guarantees of such Person in respect of any of the foregoing;

<u>provided</u> that (A) "Debt" shall exclude Debt of any direct or indirect parent company of the Borrower appearing upon the balance sheet of the Borrower solely by reason of push-down accounting under GAAP and (B) except for purposes of Section 7.01 and Section 8.01(e), "Debt" shall exclude an aggregate amount of obligations in respect of Hybrid Securities up to (but not exceeding) the Hybrid Securities Allowed Amount. The amount of any Limited Recourse Debt of any Person shall be equal to the lesser of (x) the aggregate principal amount of such Limited Recourse Debt for which such Person provides credit support constituting Debt and (y) the fair market value of any assets securing such Debt or to which such Debt is otherwise recourse. Notwithstanding any other provision contained herein, the amount of any Debt under GAAP with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of "Capitalized Lease Obligations".

"<u>Debt Fund Affiliate</u>" has the meaning specified in Section 10.06(b)(vii)(A).

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"<u>Debtor Relief Laws</u>" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, rehabilitation, insolvency, reorganization, or similar debtor relief Laws of the United States, Cayman Islands, Bermuda, Malta, the United Kingdom or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"<u>Declined Proceeds</u>" has the meaning specified in Section 2.03(b)(iv).

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate equal to (i) the sum of (a) Adjusted Term SOFR for a one-month Interest Period in effect on such day plus (b) 1.00%, plus (ii) the Applicable Rate, plus (iii) 2.00% per annum; <u>provided</u> that, with respect to a Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan, plus 2.00% per annum.

"<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Defaulting Lender</u>" means at any time, subject to Section 2.11(b), (a) any Lender that has failed for two or more Business Days to comply with its obligations under this Agreement to make a Loan or make any other payment due hereunder (each, a "<u>funding obligation</u>"), unless such Lender has notified the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding have not been satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (b) any Lender that has notified the Administrative Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding obligations hereunder, unless such writing or statement states that such position is based on such Lender's good faith determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (c) any Lender that has, for four or more Business Days after written request of the Administrative Agent or the Borrower, failed to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u> that such Lender will cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent's and the Borrower's receipt of such written confirmation), (d) any Lender with respect to which a Lender Insolvency Event has occurred and is continuing with respect to such Lender or its Parent Company or (e) any Lender that has become the subject of a Bail-In Action; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any of clauses (a) through (d) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.11(b)) upon notification of such determination by the Administrative Agent to the Borrower and the Lenders.

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"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer, license, lease or other disposition of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"<u>Disqualified Equity Interest</u>" means any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Maturity Date, (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in clause (a) above, in each case at any time on or prior to the date that is 91 days after the Maturity Date, or (c) contains any repurchase obligation which may come into effect prior to payment in full of all Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof); <u>provided</u> that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the occurrence of a change in control or an asset sale occurring prior to the date that is 91 days after the Maturity Date shall not constitute Disqualified Equity Interests if such Equity Interest provides that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the repayment in full of the Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof). In addition, any Equity Interests held by any future, present or former employee, director, officer, manager or consultant (or their estates, spouses or former spouses) of the Borrower, any of the Subsidiaries or any direct or indirect parent company of the Borrower pursuant to any stockholders agreement, management equity plan or stock option plan or any other management or employee benefit plan or agreement shall not constitute Disqualified Equity Interests solely because it may be required to be repurchased by the Borrower or any Subsidiary following the termination of employment with the Borrower, any of the Subsidiaries or such parent company, or death or disability of, such employee, director, officer, manager or consultant, or in order to satisfy applicable regulatory or statutory obligations (so long as, in each case referred to in this sentence, any such requirement is made subject to compliance with this Agreement).

"<u>Dollar</u>" and "$" mean lawful money of the United States.

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"<u>Early Opt-in Election</u>" means, with respect to any Benchmark, the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that syndicated credit facilities denominated in the applicable Agreed Currency being executed at such time, or that include language similar to that contained in Section 3.03(b), are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace such Benchmark, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means January 29, 2021.

"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under Sections 10.06(b)(iii) and 10.06(b)(v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).

"<u>Embargoed Jurisdiction</u>" means any country or territory that is the subject of comprehensive Sanctions, as modified from time to time by relevant Governmental Authorities.

"<u>EMU Legislation</u>" means the legislative measures of the European Union relating to Economic and Monetary Union.

"<u>Environmental Laws</u>" means any and all Federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or binding governmental restrictions, including all common law, relating to pollution, the protection of the environment or the release or threatened release of any materials into the indoor or outdoor environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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"<u>Equity Interests</u>" means, as to any Person, all of the shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, limited partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, limited partnership interests, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that together with the Credit Parties is treated as a single employer under Section 414(b) or (c) of the Code (or Section 414(m) or (o) of the Code, solely for purposes of Sections 412 and 430 of the Code or Section 302 of ERISA).

"<u>ERISA Event</u>" means: (a) a Reportable Event with respect to a Pension Plan; (b) the failure by any Credit Party or any ERISA Affiliate to meet any applicable requirement under the Pension Funding Rules, whether or not waived, or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by any Credit Party or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or as a result of a cessation of operations with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA; (d) a complete or partial withdrawal by any Credit Party or any ERISA Affiliate from a Multiemployer Plan resulting in withdrawal liability to any Credit Party or any ERISA Affiliate (or receipt by any Credit Party or any ERISA Affiliate of any notice concerning the imposition of withdrawal liability on any Credit Party or any ERISA Affiliate with respect to any Multiemployer Plan) or a determination that a Multiemployer Plan is, or is expected to be, "insolvent" (within the meaning of Section 418E of the Code or Section 4245 of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) the determination that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (h) the imposition or incurrence of any material liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, by or upon any Credit Party or any ERISA Affiliate; (i) the engagement by any Credit Party or any ERISA Affiliate in a transaction that is determined to be subject to Section 4069 or Section 4212(c) of ERISA; (j) the imposition of a lien upon any Credit Party or any ERISA Affiliate pursuant to Section 430(k) of the Code or Section 303(k) of ERISA; or (k) with respect to any Foreign Plan (A) the failure to make or, if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by applicable Law or the terms of such plan, (B) the failure to register, or loss of good standing, with applicable regulatory authorities, of any Foreign Plan required to be registered or in good standing, or (C) the failure of any Foreign Plan to comply with any material provisions of applicable Law or with the material terms of such plan.

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"<u>Erroneous Payment</u>" has the meaning assigned to it in Section 9.12(a).

"<u>Erroneous Payment Deficiency Assignment</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Impacted Class</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Return Deficiency</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Subrogation Rights</u>" has the meaning assigned to it in Section 9.12(e).

"<u>ESG</u>" has the meaning specified in Section 12.13(a).

"<u>ESG Amendment</u>" has the meaning specified in Section 12.13(a).

"<u>ESG Pricing Provisions</u>" has the meaning specified in Section 12.13(a).

"<u>ESG Applicable Rate Adjustments</u>" has the meaning specified in Section 12.13(a).

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

"<u>EURIBOR Loan</u>" means a Loan bearing interest based on the EURIBOR Rate. All EURIBOR Loans shall be denominated in Euros.

"<u>EURIBOR Rate</u>" means, for any Interest Period as to any EURIBOR Loan, the EURIBOR Screen Rate determined as of approximately 11:00 a.m. (Brussels, Belgium time) two Business Days prior to the commencement of such Interest Period; <u>provided</u> that, if the EURIBOR Screen Rate shall not be available at such time for such Interest Period (an "<u>Impacted Interest Period</u>") then the EURIBOR Rate shall be the Interpolated Rate.

"<u>EURIBOR Screen Rate</u>" means, for any day and time, with respect to any EURIBOR Loan for any Interest Period, the euro interbank offered rate administered by the European Money Market Institute (or any other person which takes over the administration of that rate) for Euros for a period equal in length to such Interest Period as displayed on page EURIBOR01 of the Reuters screen (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); <u>provided</u> that, if the EURIBOR Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of calculating such rate.

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"<u>Euro</u>" or "<u>€</u>" means the single currency of the Participating Member States introduced in accordance with the EMU Legislation.

"<u>Event of Default</u>" has the meaning specified in Section 8.01.

"<u>Excluded Subsidiary</u>" means (a) any Insurance Subsidiary, (b) any Subsidiary that is not a wholly-owned Subsidiary (disregarding any Disqualified Equity Interests), (c) any Securitization Subsidiary, (d) any Subsidiary that is not a Material Subsidiary, (e) any Subsidiary that is not permitted by Law or regulation to guarantee the Obligations or that would be required to obtain consent, approval, license or authorization of a Governmental Authority in order to guarantee the Obligations (unless such consent, approval, license or authorization has been received), (f) any Subsidiary that is prohibited from guaranteeing the Obligations by any Contractual Obligation in existence on the Restatement Effective Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof but only to the extent (i) such Contractual Obligation cannot be amended, modified or otherwise terminated unilaterally by such Subsidiary without triggering a default or breach thereunder and (ii) the Borrower has used commercially reasonable efforts to obtain consent from all required counterparties with respect to such contractual obligation to waive such prohibition) and (g) any Subsidiary to the extent that the burden, difficulty, consequence or cost of guaranteeing the Obligation by such Subsidiary outweighs the benefit afforded thereby as reasonably determined by the Administrative Agent and the Borrower.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal or Cayman Islands withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.01, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient's failure to comply with Section 3.01(g) and (d) any withholding Taxes imposed pursuant to FATCA.

"<u>Existing Credit Agreement</u>" has the meaning specified in the second introductory paragraph.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any intergovernmental agreement with respect thereto and any fiscal or regulatory legislation, rules, guidance notes or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code, and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

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"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Financial Officer</u>" means, as to any Person, the chief financial officer, principal accounting officer, director, treasurer or controller of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, the chief financial officer, director, treasurer, assistant treasurer or controller of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person.

"<u>Foreign Lender</u>" means a Lender that is not a U.S. Person.

"<u>Foreign Plan</u>" means each "employee benefit plan" (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to U.S. Law and is maintained or contributed to by any Credit Party or any ERISA Affiliate.

"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"<u>GAAP</u>" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

"<u>Governmental Authority</u>" means any nation or government, or state or political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body (including any Applicable Insurance Regulatory Authority), court, administrative tribunal central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation payable or performable by another Person (the "<u>primary obligor</u>") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Debt or other obligation of the payment or performance of such Debt or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Debt or other obligation of the payment or

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performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien); <u>provided</u> that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "<u>Guarantee</u>" as a verb has a corresponding meaning.

"<u>Guarantor</u>" means each Subsidiary of the Borrower that executes and delivers the Guaranty or a joinder to the Guaranty pursuant to the terms hereof or the Guaranty, unless any such Subsidiary of the Borrower has ceased to be a Guarantor pursuant to the terms hereof or the Guaranty.

"<u>Guaranty</u>" means the amended and restated Guaranty made by the Guarantors in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit F.

"<u>Hedging Obligations</u>" of any Person means the obligations of such Person (contingent or otherwise) under any Swap Contract other than obligations (contingent or otherwise) existing or arising under any Swap Contract entered into in the ordinary course of business (a) to hedge or mitigate risks to which such Person is exposed in the conduct of its business or the management of its liabilities and not for speculative purposes, (b) which are income generation transactions made in accordance with the income generation transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time the applicable transaction is entered into or (c) to replicate assets that would be admissible on the balance sheet of any insurance company organized under the laws of one of the states of the United States of America in accordance with the replication synthetic asset transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time of the applicable transaction is entered into.

"<u>Hybrid Securities</u>" means, at any time, trust preferred securities, deferrable interest subordinated debt securities, mandatory convertible debt or other hybrid securities issued by the Borrower or any Subsidiary.

"<u>Hybrid Securities Allowed Amount</u>" means, at any date, the lesser of (a) the aggregate Hybrid Securities Amount for all Hybrid Securities and (b) 15.0% of Consolidated Adjusted Capitalization at such date.

"<u>Hybrid Securities Amount</u>" means, with respect to any Hybrid Security, the principal amount (which principal amount may be a portion of the aggregate principal amount) of such Hybrid Security that is accorded equity treatment by S&P at the time of issuance thereof.

"<u>IAS</u>" means International Accounting Standards as in effect from time to time.

"<u>IFRS</u>" means International Financial Reporting Standards as in effect from time to time.

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"<u>Illegality Event</u>" has the meaning specified in Section 3.02.

"<u>Impacted Interest Period</u>" has the meaning specified in the definition of "EURIBOR Rate".

"<u>Incremental Agreement</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

"<u>Incremental Lenders</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in Section 10.04(b).

"<u>Ineligible Assignee</u>" means (a) those Persons identified in writing by the Borrower to the Arrangers prior to May 6, 2022 (or to any affiliates of such Persons that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower) or (b) to any competitors of the Borrower or any of the Borrower's Subsidiaries identified to the Administrative Agent in writing from time to time (and affiliates of such entities that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower); <u>provided</u> that no such identification pursuant to clauses (a) and (b) shall apply (i) retroactively to disqualify any Person that has previously acquired by an Assignment and Assumption or participation an interest in the Loans or Commitments with respect to amounts previously acquired, entered into a trade for the foregoing or became a competitor of the Borrower before such person is added to the list of "Ineligible Assignee" and (ii) until the date that is two Business Days following the delivery of the applicable written identification of such Person from the Borrower to the Administrative Agent.

"<u>Ineligible Institution List</u>" has the meaning specified in Section 10.06(f). "<u>Information</u>" has the meaning specified in Section 10.07.

"<u>Insurance Business</u>" means one or more aspects of the business of selling, issuing or underwriting insurance or reinsurance.

"<u>Insurance Subsidiary</u>" means any (a) Regulated Insurance Company and (b) direct or indirect Subsidiary of such a Subsidiary.

"<u>Interest Coverage Ratio</u>" means, with respect to any Person for any period, the ratio of (a) Consolidated Adjusted EBITDA of such Person for such period to (b) the Consolidated Interest Expense (excluding in the determination thereof (i) any write-offs of capitalized fees under agreements governing Debt and all amendments thereto, (ii) all non-cash charges for the amortization of deferred financing fees and debt issuance costs, (iii) any interest on Tax reserves to the extent the Borrower has elected to treat such interest as an interest expense under FASB ASC 450 (Contingencies) since its adoption, (iv) Transaction Costs and any annual administrative or other agency fees and (v) any discount, yield and/or interest component in respect of any Qualified Securitization Facility) of such Person for such period.

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"<u>Interest Payment Date</u>" means, as to any Term Benchmark Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; <u>provided</u> that, if any Interest Period for a Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates.

"<u>Interest Period</u>" means as to each Term Benchmark Loan, the period commencing on the date such Term Benchmark Loan is disbursed or converted to or continued as a EURIBOR Loan or a SOFR Loan, as applicable, and ending on the date one, three or six months (or twelve months if consented to by all of the Lenders) thereafter, as selected by the Borrower in its Loan Notice; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period pertaining to a Term Benchmark Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period shall extend beyond the Maturity Date.

"<u>Interpolated Rate</u>" means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the EURIBOR Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the EURIBOR Screen Rate for the longest period (for which the EURIBOR Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the EURIBOR Screen Rate for the shortest period (for which that EURIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case at such time.

"<u>Investment</u>" means (i) any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase (including purchases financed with equity) of any Equity Interests, bonds, notes, obligations, debentures or other debt securities of, any Person and (ii) investments that are required to be classified on the balance sheet of such person in accordance with GAAP in the same manner as the other investments included in clause (i) of this definition to the extent such transactions involve the transfer of cash or other property.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Judgment Currency</u>" has the meaning specified in Section 10.19(a).

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"<u>Judgment Currency Conversion Date</u>" has the meaning specified in Section 10.19(a).

"<u>KPIs</u>" has the meaning specified in Section 2.13(a).

"<u>Laws</u>" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, legally enforceable guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case having the force of law.

"<u>LCT Election</u>" has the meaning specified in Section 1.11(a).

"<u>LCT Test Date</u>" has the meaning specified in Section 1.11(a).

"<u>Lender</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Lender Insolvency Event</u>" means that (a) a Lender or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors or (b) such Lender or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment.

"<u>Lending Office</u>" means, as to any Lender, the office or offices of such Lender described as such in such Lender's Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent.

"<u>License</u>" means any license, certificate of authenticity, permit or other authorization which is required to be obtained from a Governmental Authority in connection with the operation, ownership or transaction of insurance business.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, assignment by way of security, deposit arrangement, encumbrance, lien (statutory or other), charge or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever in the nature of a security interest (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Limited Condition Investment</u>" means any investment, including any acquisition, by any Credit Party or one or more Subsidiaries whose consummation is not conditioned on the availability of, or on obtaining, third-party financing.

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"<u>Limited Recourse Debt</u>" means with respect to any Person, Debt of such Person as to which either (a) the maximum aggregate amount of such Person's liability is limited to an amount less than the amount of such Debt or (b) as to which the recourse of the creditor holding such Debt for payment of such Debt is limited to the assets securing such Debt.

"<u>Loan Documents</u>" means this Agreement, each Note and the Guaranty.

"<u>Loan Notice</u>" means a notice of (a) a Borrowing, (b) a continuation of Term Benchmark Loans pursuant to Section 2.02(a) or (c) a conversion of Loans from one Type to the other, which shall be substantially in the form of Exhibit A.

"<u>Loans</u>" means, collectively, the Restatement Loans and the New Loans (if any).

"<u>Management Agreement</u>" means the Management Services Agreement, dated as of February 19, 2019, between the Accelerant Holdings LP and Altamont Capital Management, LLC, a Delaware limited liability company.

"<u>Margin Stock</u>" means margin stock within the meaning of Regulation T, Regulation U or Regulation X.

"<u>Market Capitalization</u>" means an amount equal to (i) the total number of issued and outstanding shares of common Equity Interests of the Borrower on the date of the declaration or making of the relevant Restricted Payment multiplied by (ii) the arithmetic mean of the closing prices per share of such common Equity Interests for the 30 consecutive trading days immediately preceding the date of declaration or making of such Restricted Payment.

"<u>Market Disruption Event</u>" has the meaning specified in Section 3.03(a).

"<u>Master Agreement</u>" means any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement or any other master agreement, together with any related schedules.

"<u>Material Adverse Effect</u>" means: (a) a material adverse effect on the operations, business, properties or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Credit Parties, taken as a whole, to perform their obligations under the Loan Documents; (c) a material adverse effect on the legality, validity, binding effect or enforceability against the Credit Parties of any Loan Document to which it is a party; or (d) a material adverse effect on the rights, remedies and benefits available to, or conferred upon, the Administrative Agent or any Lender under any Loan Documents, taken as a whole.

"<u>Material Insurance Subsidiary</u>" means any Insurance Subsidiary (whether existing on or acquired or formed after the Restatement Effective Date) having Capital and Surplus, calculated excluding the value of its investment in any other Insurance Subsidiary, equal to 10% or more of the sum total of the Capital and Surplus of all of the Insurance Subsidiaries, with the Capital and Surplus of each Insurance Subsidiary being added to such sum total, but excluding the value of its investment in any other Insurance Subsidiary.

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"<u>Material Subsidiary</u>" means (a) any Material Insurance Subsidiary and (b) any other Subsidiary of the Borrower (i) whose total assets (determined on a consolidated basis in accordance with GAAP, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable) or (ii) whose revenues (determined on a consolidated basis in accordance with GAAP, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 10% of the consolidated revenues of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable); <u>provided</u> that the aggregate amount of total assets of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the aggregate amount of revenues of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable).

"<u>Maturity Date</u>" means May 11, 2026; <u>provided</u> that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

"<u>Maximum Rate</u>" has the meaning specified in Section 10.09.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Multiemployer Plan</u>" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Credit Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

"<u>Multiple Employer Plan</u>" means a Plan with respect to which any Credit Party or any ERISA Affiliate is a contributing sponsor which has two or more contributing sponsors (including the Borrower or ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

"<u>NAIC</u>" means the National Association of Insurance Commissioners.

"<u>Net Proceeds</u>" means: with respect to any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the aggregate amount of cash and cash equivalents received by the Borrower or any Subsidiary in respect of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as the case may be, minus the sum of (i) all costs and expenses (including legal fees, notarial fees, accountants' fees, investment banking fees, survey costs and title insurance premiums) paid by the Borrower or any of its Subsidiaries to third parties, (ii) amounts applied to the repayment of Debt (other than the Loans) secured by a Lien expressly permitted hereunder on any asset that is the subject of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, (iii) costs of discontinuance (including any reasonable severance

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payments), (iv) Taxes other than income taxes and other customary fees and expenses incurred in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction and required to be paid in cash or deducted from the proceeds of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto, (v) the estimated income tax or other Taxes to the extent payable by the Person selling or Disposing of such asset required to be paid in cash in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto (including distributions permitted to be made under Section 7.06 on account of Taxes payable by an Affiliate of such Person in connection therewith), (vi) purchase price adjustments reasonably expected to be payable in connection therewith and (vii) the aggregate amount of reserves taken by the Borrower or any of its Subsidiaries in accordance with GAAP against indemnification obligations incurred in connection therewith (without duplication of any taxes deducted pursuant to clause (iv) above) so long as, if any such amount ceases to be payable, it shall then become "Net Proceeds" on the date of such cessation, and with respect to any issuance of Debt by the Borrower or any of its Subsidiaries, the proceeds thereof in the form of cash and cash equivalents (including any cash and cash equivalents received by way of deferred payment of principal pursuant to a note), minus the costs and expenses paid or payable by the Borrower or any of its Subsidiaries to third parties in connection therewith (including legal fees, notarial fees, accountants' fees, investment banking fees, underwriting discounts and commissions, taxes and other customary fees and expenses incurred in connection therewith) and required to be paid in cash or deducted from the proceeds of such issuance.

"<u>New Commitment</u>" has the meaning specified in Section 2.12(a)(vi).

"<u>New Loan</u>" has the meaning specified in Section 2.12(a).

"<u>New Loan Borrowing Date</u>" has the meaning specified in Section 2.12(a).

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 10.01 and (b) has been approved by the Required Lenders.

"<u>Non-Defaulting Lender</u>" means, at any time, a Lender that is not a Defaulting Lender.

"<u>Non-OC Asset Sale</u>" means any Disposition or transfer, or series of related Dispositions or transfers, of insurance policies and related assets and liabilities (other than any such transfer or Disposition constituting Non-OC Reinsurance Transaction) involving assets with a value in excess of 2.5% of Consolidated Total Assets as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Non-OC Reinsurance Transaction</u>" means any reinsurance transaction, or series of related reinsurance transactions, entered into by the Borrower or any of its Subsidiaries after the Restatement Effective Date, pursuant to which either (a) the ceding commission payable to the Borrower or any of its Subsidiaries as consideration thereof exceeds the greater of (x) $12,000,000 and (y) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal

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period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, or (b) the insurance policies and related assets subject thereto have an aggregate value in excess 2.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii).

"<u>Non-Recourse Debt</u>" means with respect to any Person, Debt if, but only if: (a) such Person (i) provides no credit support of any kind for such Debt (including any undertaking, agreement or instrument that would constitute Debt) and (ii) is not directly or indirectly liable as a guarantor or otherwise for such Debt; and (b) no default with respect to such Debt would permit upon notice, lapse of time or both any holder of any other Debt (other than the Loans) of such Person to declare a default on such other Debt or cause the payment thereof to be accelerated or payable prior to its stated maturity.

"<u>Note</u>" means a promissory note made by the Borrower in favor of a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B-1, in the case of any Euro Note, and B-2, in the case of any Dollar Note.

"<u>Obligation Currency</u>" has the meaning specified in Section 10.19(a).

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under any Loan Document, including with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue thereon after the commencement by or against the Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include (i) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Borrower under any Loan Document and (ii) the obligation to pay, discharge and satisfy the Erroneous Payment Subrogation Rights.

"<u>Operating Debt</u>" means, as to any Person at a particular time, without duplication, all of the following to the extent constituting Debt:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent that a reimbursement obligation in respect thereof is not yet due, obligations under letters of credit, bank guarantees and similar instruments (A) issued for the account of an Insurance Subsidiary to support obligations under Reinsurance Agreements or Retrocession Agreements or (B) of any Person issued in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) surplus notes and other Debt of such Person incurred in the ordinary course of business to the extent such Debt is of the type customarily excluded from financial leverage by both S&P and Moody's in their evaluation of such Person or similarly positioned person and is of the type treated as a hybrid capital instrument by both S&P and Moody's in their evaluation of such Person or a similarly situated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations with respect to Policies, Reinsurance Agreements and Retrocession Agreements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obligations under Permitted Repo and Securities Lending Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) unspent cash deposits or securities held in escrow by or in favor of such Person, or in a segregated deposit or securities account, as applicable, controlled by such Person, in each case in the ordinary course of business to secure the performance obligations of, or damages owing from, one or more third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Debt under any overdraft or other cash management facilities so long as any such Debt is repaid in full no later than five (5) Business Days following the date on which it was incurred or, in the case of such Debt in respect of credit or purchase cards, within 60 days of its incurrence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in connection with the purchase by the Borrower or any Subsidiary of any business, any post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such acquired business after the closing of such purchase, but only so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) at the time of such closing, the amount of such payment is not determinable (it being understood and agreed that any variable earn-out or similar variable payment that depends solely on the performance of such business after the closing is not determinable at the time of such closing); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) after such payment thereafter becomes fixed and determined, it is paid in a timely manner.

"<u>Operating Lease</u>" means, as applied to any Person, a lease (including leases which may be terminated by the lessee at any time) of any property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease.

"<u>Organizational Documents</u>" of a Person means: (a) if such Person is a corporation or exempted company, the certificate or articles of incorporation and the bylaws or memorandum and articles of association (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) of such Person; (b) if such Person is a limited liability company, the certificate or articles of formation, registration or organization and operating agreement of such Person; and (c) if such Person is a partnership, exempted limited partnership, joint venture, trust or other form of business entity, the partnership, exempted limited partnership, joint venture or other applicable agreement of formation, registration or organization of such Person and any agreement, certificate, instrument, filing or notice with respect thereto filed in connection with such Person's formation, registration or organization with the applicable Governmental Authority in the jurisdiction of such Person's formation, registration or organization and, if applicable, any certificate or articles of formation, registration or organization of such Person.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

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"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 3.06).

"<u>Outstanding Receivables Amount</u>" means, at any time, the aggregate outstanding amount of accounts receivable that have been transferred or pledged by the Borrower and its Subsidiaries at such time and that have a scheduled payment due date that is after such time.

"<u>Parent Company</u>" means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

"<u>Participating Member State</u>" means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"<u>Participant</u>" has the meaning specified in Section 10.06(d).

"<u>Participant Register</u>" has the meaning specified in Section 10.06(d).

"<u>Payment Recipient</u>" has the meaning assigned to it in Section 9.12(a).

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

"<u>Pension Funding Rules</u>" means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"<u>Pension Plan</u>" means any "employee pension benefit plan," within the meaning of Section 3(2) of ERISA (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by any Credit Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

"<u>Permitted Repo and Securities Lending Agreements</u>" means any Debt of the type described in clause (vii) of the definition thereof (a) incurred in the ordinary course of business by a Regulated Insurance Company to fund its short term liquidity requirements, (b) incurred in the ordinary course of business by a Regulated Insurance Company pursuant to an agreement under which assets that are ineligible to be pledged to secure Debt or a Swap Contract permitted hereunder are transferred to a third-party in exchange for either (i) assets or (ii) funds, the proceeds of which are used to acquire assets, that in either case are eligible to be pledged to secure such Debt or Swap Contract, or (c) incurred in the ordinary course of business by a Regulated Insurance Company to enhance yield on a portfolio of securities.

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"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, exempted company, partnership, exempted limited partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any "employee benefit plan," within the meaning of Section 3(3) of ERISA, (other than a Multiemployer Plan) that is subject to ERISA, maintained for employees of the Borrower or any Subsidiary, or any such plan to which the Borrower or such Subsidiary is required to contribute on behalf of any of its employees or with respect to which the Borrower or such Subsidiary has any liability.

"<u>Plan of Reorganization</u>" has the meaning specified in Section 10.06(f).

"<u>Policies</u>" means all insurance policies and assumption certificates issued or to be issued (or filed pending current review by applicable Governmental Authorities) by any Regulated Insurance Company.

"<u>Principal Payment Date</u>" means the last Business Day of each fiscal quarter of the Borrower, commencing with the first full fiscal quarter of the Borrower ending after the Restatement Effective Date.

"<u>Pro Forma Commission Adjustment</u>" means, for any period and with respect to any Person, the difference, which may be a positive or negative amount, between (i) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority) that is newly executed during such period and (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has increased during such period, in each case the amount of commission of such Person, to the extent not included in determining Consolidated EBITDA for such period, calculated to include such newly executed commission agreement and to give effect to such modification to an existing commission agreement, as applicable, as though such commission agreement or such modification, as applicable, had been executed on the first day of such period and (ii) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority) that expires or is otherwise terminated during such period, (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has decreased during such period and (z) each commission agreement subject to any Qualified Securitization Facility, in each case, the amount of commission of such Person, to the extent included in determining Consolidated EBITDA for such period, calculated to exclude such expired or otherwise terminated commission agreement, to give effect to such modification to an existing commission agreement, and to exclude such commission agreement subject to any Qualified Securitization Facility, as applicable, as though such commission agreement had expired or otherwise terminated, such modification had been executed or such commission agreement had become subject to any Qualified Securitization Facility, as applicable, on the first day of such period; <u>provided</u> that "Pro Forma Commission Adjustment" shall not include the amount of commissions actually received by such Person during such period.

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"<u>Pro Forma Run-Rate Commission Adjustment</u>" means, for any period and without duplication, the difference, which may a be positive or negative amount, between (a) the amount of commissions of any Person that is not a Regulated Insurance Company under each relevant commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority), recalculated giving effect to the Run-Rate Gross Commissions for such period, and (b) the amount of commission actually received by such Person that is included in the calculation of Consolidated EBITDA for such period.

"<u>Pro Forma Run-Rate Premium Adjustment</u>" means, for any period and without duplication, the difference, which may be a positive or negative amount, between (a) the amount of premiums of any Person that is a Regulated Insurance Company under each relevant agreement, recalculated giving effect to the Run-Rate Gross Written Premiums for such period and (b) the amount of premium received by such Person included in the calculation of Consolidated EBITDA for such period.

"<u>Proceeding</u>" has the meaning specified in Section 10.04(b).

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Lender</u>" has the meaning specified in Section 6.02.

"<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

"<u>QFC Credit Support</u>" has the meaning assigned to it in Section 10.21.

"<u>Qualified IPO</u>" means the initial underwritten public offering of common Equity Interests of the Borrower pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act of 1933, as amended.

"<u>Qualified Securitization Facility</u>" means any Securitization Facility or Receivables Financing Transaction, so long as: (a) all transfers or sales of any Securitization Assets in connection with any such Securitization Facility or Receivables Financing Transaction to any Person that is not a Subsidiary shall be for fair market value (as determined in good faith by the Borrower) and (b) the Outstanding Receivables Amount under all Qualified Securitization Facilities shall not at any time exceed $12,000,000.

"<u>Receivables Financing Transaction</u>" means any transaction or series of transactions entered into by the Borrower or any Subsidiary pursuant to which such party consummates a "true sale" of its receivables constituting commissions due under one or more commission agreements to a non-related third party on market terms as determined in good faith

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by the Borrower; <u>provided</u> that such Receivables Financing Transaction is (a) non-recourse to the Borrower and its Subsidiaries and their assets, other than any recourse solely attributable to a breach by the Borrower or any Subsidiary of representations, warranties and obligations that are customarily made by a seller in connection with a "true sale" of receivables on a non-recourse basis and (b) consummated pursuant to customary contracts, arrangements or agreements entered into with respect to the "true sale" of receivables on market terms for similar transactions.

"<u>Recipient</u>" means the Administrative Agent or any Lender.

"<u>Register</u>" has the meaning specified in Section 10.06(c).

"<u>Regulated Insurance Company</u>" means any Subsidiary of the Borrower, whether now owned or hereafter formed or acquired, that is authorized or admitted to carry on or transact Insurance Business in any jurisdiction and is regulated by any Applicable Insurance Regulatory Authority.

"<u>Regulation T</u>" means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation U</u>" means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation X</u>" means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Reinsurance Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers, as reinsurers, assume liabilities under Policies issued by another insurance company or companies.

"<u>Reinsurance Threshold</u>" means an aggregate amount equal to the greater of (a) $12,000,000 and (b) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, attorneys-in-fact, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Rate</u>" means (i) with respect to any Loan denominated in Dollars, Adjusted Term SOFR, and (ii) with respect to any Loan denominated in Euros, the EURIBOR Rate.

"<u>Removal Effective Date</u>" has the meaning specified in Section 9.06(b).

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30-day notice period has been waived.

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"<u>Required Lenders</u>" means, at any time, Lenders having principal amount of Loans outstanding and unused Commitments representing more than 50% of the sum of the aggregate principal amount outstanding of the Loans and unused Commitments of all Lenders at such time; <u>provided</u> that any time there are two (2) or more Unaffiliated Lenders, the Required Lenders shall be comprised of at least two (2) Unaffiliated Lenders. The Commitment and any Loans outstanding of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

"<u>Required Prepayment Amount</u>" means, in connection with the receipt by the Borrower or its Subsidiaries of Net Proceeds pursuant to an Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, a percentage of such Net Proceeds equal to (a) subject to clause (b) of this definition, 100%, or (b) if, as of the last day of the most recent fiscal period of the Borrower for which financial statements were furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, ended prior to the date such Net Proceeds are received, the Consolidated Senior Debt to Capitalization Ratio, on a pro forma basis after giving effect to any mandatory prepayment required pursuant to Section 2.03(b)(i), is (1) greater than or equal to 15%, but less than 20%, 50.0% or (2) less than 15%, 0%.

"<u>Resignation Effective Date</u>" has the meaning specified in Section 9.06(a).

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" of any Person means any executive officer, president, executive vice president, director, a Financial Officer or any other officer of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, any executive officer, president, executive vice president, director, a Financial Officer or any other officer of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person in respect of this Agreement. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower.

"<u>Restatement Dollar Commitment</u>" means, as to each Lender, its obligation to make Restatement Dollar Loans to the Borrower pursuant to Section 2.01(b)(i) in an aggregate principal amount not to exceed the amount set forth opposite such Lender's name on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be reduced or otherwise adjusted from time to time in accordance with this Agreement. As of the Restatement Effective Date, the aggregate amount of the Restatement Dollar Commitments is $75,000,000.

"<u>Restatement Dollar Loan Availability Period</u>" means the period from and including the Restatement Effective Date to but excluding the Restatement Dollar Loan Availability Termination Date.

"<u>Restatement Dollar Loan Availability Termination Date</u>" means the earliest to occur of (i) the first anniversary of the Restatement Effective Date, (ii) the date the Restatement Dollar Commitments are permanently reduced to zero pursuant to Section 2.01(b)(i) and (iii) the date of the termination of the Restatement Dollar Commitments pursuant to Section 8.02.

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"<u>Restatement Dollar Loans</u>" has the meaning assigned to such term in Section 2.01(a)(ii).

"<u>Restatement Effective Date</u>" means May 11, 2022.

"<u>Restatement Euro Loans</u>" has the meaning assigned to such term in Section 2.01(a)(i).

"<u>Restatement Loans</u>" means, collectively, the Restatement Euro Loans and the Restatement Dollar Loans.

"<u>Restricted Payment</u>" means (a) any dividend or other distribution (whether in cash, securities or other property) by a Person or any of its Subsidiaries with respect to their respective Equity Interests, or (b) any payment (whether in cash, securities or other property) by a Person or any of its Subsidiaries, including any sinking fund or similar deposit, (i) on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any of their respective Equity Interests, or (ii) on account of any return of capital to such Person's shareholders, partners or members with respect to their respective Equity Interests (or the equivalent Persons thereof).

"<u>Retrocession Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers or reinsurers, as retrocessionaires, assume liabilities of reinsurers under a Reinsurance Agreement or other retrocessionaires under another Retrocession Agreement.

"<u>Run-Rate Gross Commissions</u>" means, with respect to any Person for any period, the pro forma amount of gross commissions due to such Person under any duly executed contract.

"<u>Run-Rate Gross Written Premium</u>" means, with respect to any Person for any period, the pro forma amount of gross written premium due to such Person under any duly executed contract (including, without limitation, any binder agreement or sub-agent agreement).

"<u>S&P</u>" means Standard & Poor's Financial Services Inc., a Standard & Poor's Financial Services LLC business.

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by, or otherwise the subject of any sanctions administered or enforced by, the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, Her Majesty's Treasury of the United Kingdom, the European Union, any European Union member state, the Canadian government, or any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries, (b) any Person located in, resident in or organized under the laws of an Embargoed Jurisdiction, (c) any government that is itself the subject or target of Sanctions or (d) any Person owned or controlled by a Person described in the foregoing clauses (a), (b) or (c).

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"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or the Canadian government, (b) the United Nations Security Council, (c) the European Union or Her Majesty's Treasury of the United Kingdom (including any sanctions legislation extended to the Cayman Islands pursuant to any Order in Council of Her Majesty's Privy Council in the United Kingdom or other relevant sanctions authority), (d) the Cayman Islands Monetary Authority or (e) any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries.

"<u>SAP</u>" means the accounting procedures and practices prescribed or permitted by the Applicable Insurance Regulatory Authority or the NAIC.

"<u>SEC</u>" means the Securities and Exchange Commission.

"<u>Securitization Assets</u>" means (a) accounts receivable constituting commissions due under one or more commission agreements and other assets related thereto subject to a Qualified Securitization Facility and the proceeds thereof and (b) contract rights, lockbox accounts and records with respect to such accounts receivable and any other assets customarily transferred together with accounts receivable in an accounts receivable securitization financing.

"<u>Securitization Facility</u>" means any transaction or series of securitization financings that may be entered into by the Borrower or any Subsidiary pursuant to which the Borrower or any such Subsidiary may sell, convey or otherwise transfer, or may grant a security interest in, Securitization Assets to either (a) a Person that is not the Borrower or a Subsidiary or (b) a Securitization Subsidiary that in turn sells such Securitization Assets to a Person that is not the Borrower or a Subsidiary, or may grant a security interest in, any Securitization Assets of the Borrower or any of its Subsidiaries that are subject to such Securitization Facility.

"<u>Securitization Subsidiary</u>" means any Subsidiary formed for the purpose of, and that solely engages only in one or more Qualified Securitization Facilities and other activities reasonably related thereto.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Loan</u>" means a Loan bearing interest based on Adjusted Term SOFR. All SOFR Loans shall be denominated in Dollars.

"<u>Specified Preferred Stock</u>" means Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares of the Borrower, in each case, issued after December 31, 2021.

"<u>Specified Transaction</u>" means: (a) solely for the purposes of determining the applicable cash balance, any contribution of capital, including as a result of a Qualified IPO, to the Borrower, in each case, in connection with an acquisition or Investment; (b) any designation of operations or assets of the Borrower or a Subsidiary as discontinued operations (except that

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operations or assets of the Borrower or a Subsidiary that are held for sale or are subject to an agreement to dispose of such operations or assets may, at the Borrower's election (in its sole discretion), be designated as discontinued operations under this clause (b) only when and to the extent such operations are actually disposed of); (c) any acquisition, investment or other similar transaction, in each case, that results in a Person becoming a Subsidiary; (d) any purchase or other acquisition of a business of any Person, of assets constituting a business unit, line of business or division of any Person; (e) any Non-OC Asset Sale or Casualty Event (i) that results in a Subsidiary ceasing to be a Subsidiary of the Borrower or (ii) of a business, business unit, line of business or division of the Borrower or a Subsidiary, in each case whether by merger, amalgamation, consolidation or otherwise; (f) any operational changes identified by the Borrower that have been made by the Borrower or any Subsidiary during the applicable period; (g) any borrowing of New Loans; or (h) any Restricted Payment or other transaction that by the terms of this Agreement requires a financial ratio to be calculated on a pro forma basis.

"<u>Statutory Reserve Rate</u>" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Federal Reserve Board to which the Administrative Agent is subject with respect to the EURIBOR Rate, for eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D). Such reserve percentage shall include those imposed pursuant to Regulation D. EURIBOR Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

"<u>Statutory Statement</u>" means a statement of the condition and affairs of the Borrower or an Insurance Subsidiary, as applicable, in each case prepared in accordance with SAP, and filed with the Applicable Insurance Regulatory Authority.

"<u>Subsidiary</u>" of a Person means any corporation, exempted company, partnership, exempted limited partnership, limited liability company, association, joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency, including the power to cause the termination, removal or replacement of a manager or general partner, whether or not such contingency has occurred) are at the time beneficially owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

"<u>Supported QFC</u>" has the meaning assigned to it in Section 10.21.

"<u>Sustainability Coordinators</u>" means BMO Capital Markets Corp. and Lloyds Bank PLC, in their capacities as co-sustainability coordinators.

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"<u>Sustainability Linked Loan Principles</u>" means the Sustainability Linked Loan Principles (as published in May 2021 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association) or such other principles and metrics mutually agreed to by the Borrower and the Sustainability Coordinators (each acting reasonably).

"<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, credit derivatives, total return swaps, futures, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or other derivatives or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any Master Agreement, including any such obligations or liabilities under any Master Agreement.

"<u>Swap Termination Value</u>" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender), in each case expressed as a negative number to the extent the termination value is payable to or the mark-to-market value is in favor of the Borrower or Subsidiary or as a positive number to the extent the termination value is payable to or the market-to-market value is in favor of the applicable counterparty to the Borrower or Subsidiary under such Swap Contract.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term Benchmark Loan</u>" means any SOFR Loan or EURIBOR Loan, as applicable.

"<u>Term SOFR</u>" means, for any Interest Period, the Term SOFR Reference Rate on the day (such day, the "<u>Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period; <u>provided</u>, <u>however</u>, that if as of 5:00 p.m. (New York City time) on any Term SOFR Determination Day the Term SOFR Reference Rate for such Interest Period has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such Interest Period as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such Interest Period was published

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by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Term SOFR Determination Day; <u>provided</u>, if Term SOFR determined as provided above shall ever be less than zero, then Term SOFR shall be deemed to be zero.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Threshold Amount</u>" means $3,600,000.

"<u>Trade Date</u>" means, as to a particular assignment or participation of an interest hereunder to a Person, the date on which the applicable Lender enters into a binding agreement to sell and assign or participate all or a portion of its rights and obligations under this Agreement to such Person.

"<u>Transaction Costs</u>" means all costs, fees and expenses incurred in connection with this Agreement, the credit facility established hereby and the other Transactions.

"<u>Transactions</u>" means the (a) execution, delivery and performance by each Credit Party of the Loan Documents to which it is to be a party, (b) borrowing of Loans hereunder and (c) payment of the Transaction Costs.

"<u>Type</u>" means, with respect to a Loan, its character as a SOFR Loan or a EURIBOR Loan.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unaffiliated Lenders</u>" means Lenders who are not Affiliates or Approved Funds of one another.

"<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

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"<u>Unsubordinated Debt</u>" means Debt of a Subsidiary of the Borrower owed to a Person other than the Borrower or any of its Subsidiaries that is not expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent not to be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing), in each case excluding (i) Obligations and any Guarantees of any Obligations, and (ii) Operating Debt other than Operating Debt incurred under clause (i)(B) of the definition thereof.

"<u>U.S. Government Securities Business Day</u>***"*** means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Person</u>" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" has the meaning assigned to it in Section 10.21.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in Section 3.01(g)(ii)(B)(3).

"<u>Weighted Average Life to Maturity</u>" means, when applied to any Debt at any date, the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then-outstanding principal amount of such Debt.

"<u>wholly-owned</u>" means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (i) director's qualifying shares and (ii) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly-owned Subsidiaries of such Person.

"<u>Withholding Agent</u>" means the Borrower and the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

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Section 1.02 **<u>Other Interpretive Provisions</u>**

With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "<u>include</u>", "<u>includes</u>" and "<u>including</u>" shall be deemed to be followed by the phrase "<u>without limitation</u>". The word "or" is always used inclusively herein (for example, the phrase "A or B" means "A or B or both", not "either A or B but not both") when not used in an "either . . . or" construction. The word "<u>will</u>" shall be construed to have the same meaning and effect as the word "<u>shall</u>". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organizational Document and the Loan Documents) shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns and, in the case of any Governmental Authority, any other Governmental Authority succeeding to its functions, (iii) the words "<u>hereto</u>", "<u>herein</u>", "<u>hereof</u>" and "<u>hereunder</u>", and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time and (vi) the words "<u>asset</u>" and "<u>property</u>" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the computation of periods of time from a specified date to a later specified date, the word "<u>from</u>" means "<u>from and including</u>"; the words "<u>to</u>" and "<u>until</u>" each mean "<u>to but excluding</u>"; and the word "<u>through</u>" means "<u>to and including</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, in no event shall the Guarantors be liable for any obligations of the Borrower under this Agreement or any other Loan Document except as set forth in the Guaranty.

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Section 1.03 **<u>Accounting Terms</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Generally</u>*. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP, applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the audited consolidated balance sheets of the Borrower and its Subsidiaries, and the related statements of income, stockholders' equity and cash flows of the Borrower and its Subsidiaries, for the fiscal year ended December 31, 2020 and as most recently delivered prior to the Restatement Effective Date, except as otherwise specifically prescribed herein. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Debt of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 (Financial Instruments) and related codifications on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Changes in GAAP, IFRS or the NAIC Rules</u>*. If at any time any change in GAAP or IFRS or the NAIC rules, as applicable (each change, an "<u>Accounting Change</u>") would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such Accounting Change (subject to the approval of the Required Lenders); <u>provided</u> that until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP or IFRS or the NAIC rules, as applicable, without giving effect to such Accounting Change and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such Accounting Change.

Section 1.04 **<u>Rounding</u>**

Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

Section 1.05 **<u>Times of Day</u>**

Unless otherwise specified, all references herein to times of day shall be references to Central time (daylight or standard, as applicable).

Section 1.06 **<u>Timing of Payment or Performance</u>**

When payment of any obligation is stated to be due or the performance of any covenant, duty or obligation is required on a day which is not a Business Day, the date of such payment (other than as described in the definition of "Interest Period") or performance shall extend to the immediately succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.

Section 1.07 [**<u>Reserved</u>**]

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Section 1.08 **<u>Divisions</u>**

For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.

Section 1.09 **[<u>Reserved</u>]**

Section 1.10 **<u>Pro Forma Effect</u>**

Whenever pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by a Financial Officer of the Borrower and may include the amount of "run rate" cost savings, operating expense reductions and synergies projected by the Borrower in good faith to result from, or relating to, any Specified Transaction (including acquisitions and investments occurring prior to the Restatement Effective Date) which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary to realize such cost savings, operating expense reductions and synergies are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) (calculated on a pro forma basis as though such cost savings, operating expense reductions and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period and "run rate" means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Restatement Effective Date, net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent applicable period in which the effects thereof are expected to be realized) relating to such Specified Transaction; <u>provided</u> that (a) such amounts are reasonably identifiable, (b) such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) no later than twenty-four (24) months after the date of such Specified Transaction (or actions undertaken or implemented prior to the consummation of such Specified Transaction) and (c) no amounts shall be added to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period; <u>provided</u> that such "run-rate" cost savings, synergies and operating expense reductions added back pursuant to this Section 1.10 in any applicable period, when aggregated with the aggregate amount of any increase for such period in Consolidated EBITDA pursuant to clauses (a)(7) and (a)(8) of the definition of "Consolidated EBITDA", in each case with respect to such period, shall not exceed in the aggregate 20% of Consolidated EBITDA for such period (as calculated prior to giving effect to any such adjustments).

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Section 1.11 **<u>Limited Condition Investments</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, calculating any applicable ratio in connection with determining whether (i) the incurrence of any Debt (including in reliance on Section 7.01(xi)), the creation of any Lien (including for purposes of the last proviso to Section 7.01), the making of any Investment (including as permitted by Section 7.03) is permitted or borrowing of a New Loan under Section 2.12, or (ii) the incurrence of any Debt in reliance on Section 7.01(xi) requires prepayment of the Loans pursuant to Section 2.03(b)(ii) or Section 7.01(xi), in each case in connection with a Limited Condition Investment, the date of determination of such ratio or other provisions shall, at the option of the Borrower (the Borrower's election to exercise such option in connection with any Limited Condition Investment, an "<u>LCT Election</u>," which LCT Election may be in respect of one or more of clauses (i) and (ii) above) be deemed to be the date the definitive agreements (or other relevant definitive documentation) for such Limited Condition Investment are entered into (each a "<u>LCT</u> <u>Test Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If on a pro forma basis, after giving effect to such Limited Condition Investment and the other transactions to be entered into in connection therewith (including any incurrence or issuance of Debt and the use of proceeds thereof), if such Limited Condition Investment had occurred at the beginning of the most recent fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, ending prior to the applicable LCT Test Date, the Borrower could have (i) incurred such Debt, created such Liens, made any Investment, borrowed a New Loan or otherwise taken such action and/or (ii) incurred such Debt without having to prepay the Loans pursuant to Section 2.03(b)(ii) and/or Section 7.01(xi), in each case on such LCT Test Date in compliance with the applicable ratios or other provisions, then the Borrower shall be deemed to have complied with such ratios or other provisions and the Borrower will not be required to repay the Loans as provided in Section 2.03(b)(ii) or 7.01(xi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, if, following the LCT Test Date, any of such ratios are exceeded or breached as a result of fluctuations in such ratio (including due to fluctuations in any of the components of such ratio) at or prior to the consummation of the relevant Limited Condition Investment, such ratios will not be deemed to have been exceeded or failed to have been satisfied as a result of such fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Borrower has made an LCT Election for any Limited Condition Investment, then in connection with any subsequent calculation of any ratio, basket availability or compliance with any other provision hereunder, including Section 2.03(b)(ii) or 7.01(xi) (other than actual compliance with Section 7.11), on or following the relevant LCT Test Date and prior to the earliest of the date on which such Limited Condition Investment is consummated, the date that the definitive agreement for such Limited Condition Investment is terminated or expires without consummation of such Limited Condition Investment, any such ratio, basket or compliance with any other provision hereunder shall be calculated on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date; <u>provided</u> that, with respect to the determination of whether a Restricted Payment is permitted pursuant to Section 7.06(vii), compliance with any applicable ratio or basket in such

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Section shall be calculated both (i) on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date, and (ii) as if such Limited Condition Investment and related transactions had not been consummated on such LCT Test Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, if the Borrower or any Subsidiary (i) incurs Debt or creates Liens in connection with any Limited Condition Investment under a ratio-based basket and (ii) incurs Debt or creates Liens in connection with such Limited Condition Investment under a non-ratio-based basket, then the applicable ratio will be calculated with respect to any such action under the applicable ratio-based basket or other provision without regard to any such action under such non-ratio-based basket made in connection with such Limited Condition Investment.

**ARTICLE II** 

**THE COMMITMENTS AND LOANS** 

Section 2.01 **<u>Loans</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Restatement Euro Loans</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon satisfaction of the conditions precedent to the effectiveness of this Agreement on the Restatement Effective Date, (A) each of the "Loans" (as such term is defined in the Existing Credit Agreement) outstanding under the Existing Credit Agreement on the Restatement Effective Date shall remain outstanding hereunder (with the existing Interest Periods therefor) and shall constitute term loans ("<u>Continuing</u> <u>Restatement Euro Loans</u>"), denominated in Euros, hereunder and (B) Bank of Montreal shall make a term loan on the Restatement Effective Date (the "<u>Additional Restatement Euro Loan</u>" and, together with the Continuing Restatement Euro Loans, the "<u>Restatement Euro Loans</u>") in Euros to the Initial Borrower, in an aggregate principal amount equal to €1,750,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Additional Restatement Euro Loan shall be fungible with the Continuing Restatement Euro Loans, and the Additional Restatement Euro Loan and the Continuing Restatement Euro Loans shall be part of the same Class of Loans. The Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that the Additional Restatement Euro Loan are included in each Borrowing of outstanding Continuing Restatement Euro Loans on a pro rata basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Immediately after giving effect to the making of the Additional Restatement Euro Loan on the Restatement Effective Date, the aggregate outstanding principal amount of Restatement Euro Loans shall be €46,500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Restatement Euro Loans may bear interest at a rate based on the EURIBOR Rate, as further provided herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Restatement Dollar Loans</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the Restatement Dollar Loan Availability Period, on the Restatement Effective Date and on up to three Borrowing Dates after the Restatement Effective Date and on or prior to the Restatement Dollar Loan Availability Termination Date, subject to the terms and conditions hereof, each Lender severally agrees to make term loans ("<u>Restatement Dollar Loans</u>") in Dollars to the Borrower in an aggregate principal amount which shall not exceed such Lender's Restatement Dollar Commitment. Amounts borrowed pursuant to this Section 2.01(b)(i) and subsequently repaid or prepaid may not be reborrowed during the term of this Agreement. On each Borrowing Date (and after giving effect to the making of Restatement Dollar Loans on such Borrowing Date), the Restatement Dollar Commitment of each Lender shall be permanently reduced by the aggregate principal amount of the Restatement Dollar Loans made by such Lender on such Borrowing Date. At 5:00 p.m. on the Restatement Effective Date, the Restatement Dollar Commitments shall be automatically and permanently reduced by the greater of (i) $20,000,000 and (ii) the aggregate principal amount of the Restatement Dollar Loans made on the Restatement Effective Date. In addition, on the Restatement Dollar Loan Availability Termination Date, the Restatement Dollar Commitment of each Lender shall terminate immediately and without further action (to the extent not theretofore terminated).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Restatement Dollar Loans may bear interest at a rate based on Adjusted Term SOFR, as further provided herein.

Section 2.02 **<u>Borrowings, Conversions and Continuations of Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Term Benchmark Loans shall be made upon the Borrower's irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of any Borrowing of, conversion to or continuation of, Term Benchmark Loans; <u>provided</u> that, if the Borrower wishes to request Term Benchmark Loans having an Interest Period of twelve months in duration as provided in the definition of "Interest Period", the applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the Lenders of such request and determine whether the requested twelve-month Interest Period is acceptable to all of them. Not later than 11:00 a.m., four Business Days before the requested date of such Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of Restatement Dollar Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof (or if less, the full remaining amount of the then-effective Restatement Dollar Commitments). Each conversion to or continuation of Term Benchmark Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof (or if less, the full remaining balance of the then-outstanding Loans). Each Loan Notice (whether telephonic or

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written) shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to another or a continuation of Term Benchmark Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, and (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be continued as Loans having an Interest Period of one month. Any such automatic continuation shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Term Benchmark Loans. If the Borrower requests a Borrowing of, conversion to or continuation of Term Benchmark Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its pro rata share of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic continuation of Loans described in the preceding subsection. Each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's Office not later than 1:00 p.m. on the applicable Borrowing Date. Upon satisfaction of the applicable conditions set forth in Sections 4.01 and 4.02, the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of Bank of Montreal with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower. Each Lender may, at its option, make any Loan available to the Borrower by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; <u>provided</u> that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided herein, a Term Benchmark Loan may be continued or converted only on the last day of an Interest Period for such Term Benchmark Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Term Benchmark Loans upon determination of such interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same type, there shall not be more than ten Interest Periods in effect with respect to Loans.

Section 2.03 **<u>Optional and Mandatory Prepayments</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Optional</u>*. The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty; <u>provided</u> that: (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to any date of prepayment of any Loans; and (ii) any

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prepayment of Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans and, if any Term Benchmark Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein; <u>provided</u> that such notice may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any prepayment of a Term Benchmark Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Subject to Section 2.11, each such optional prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages, as directed by the Borrower. Any amounts prepaid pursuant to this Section 2.03(a) may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Mandatory</u>*. The Borrower shall make prepayments from time to time in accordance with this Section 2.03(b). Each such mandatory prepayment shall be without premium or penalty; <u>provided</u> that the Borrower shall reimburse the Lenders for any redeployment costs in accordance with Section 3.05. Any amounts prepaid pursuant to this Section 2.03(b) may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Non-OC Asset Sales, Casualty Events and Non-OC Reinsurance Transactions*. Within five (5) Business Days after (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Term Benchmark Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect of any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the Borrower shall prepay principal amount of Loans in an aggregate amount equal to the Required Prepayment Amount; <u>provided</u> that no prepayment of the Loans shall be required pursuant to this clause (b) unless, and only to the extent, that (A) in the case of a Non-OC Asset Sale or Casualty Event, the aggregate Net Proceeds of all Non-OC Asset Sales or all Casualty Events, as applicable, consummated or occurring after the Restatement Effective Date exceeds the Asset Sale Threshold or (B) in the case of a Non-OC Reinsurance Transaction, the aggregate Net Proceeds of all such Non-OC Reinsurance Transactions consummated after the Restatement Effective Date exceeds the Reinsurance Threshold, in each case of (A) and (B), in which case only the amount exceeding the Required Prepayment Amount of such Asset Sale Threshold or the Reinsurance Threshold, as applicable, shall be required to be prepaid. Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the applicable Person whose property was the subject of the Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as applicable, may reinvest all or any portion of such Net Proceeds in assets useful in the business of the Borrower or any Subsidiary so long as, within 12 months after the receipt of such Net Proceeds, such reinvestment shall have been consummated, and if all or any portion of such Net Proceeds have been

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committed to be reinvested within such 12-month period but such reinvestment has not yet been consummated, such Person shall have an additional six months thereafter to consummate such reinvestment (it being understood and agreed that any such Net Proceeds not so reinvested by the conclusion of the 12th month or such additional six-month period, if applicable, shall be applied to the prepayment of the Loans as set forth in this Section 2.03(b) by not later than five (5) Business Days (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Term Benchmark Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) the conclusion of the 12th month or such additional six-month period, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Indebtedness</u>*. Within five (5) Business Days after any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect of the issuance of any Debt, other than the issuance of any Debt permitted pursuant to Section 7.01 (except as otherwise provided in Section 7.01(xi)), the Borrower shall prepay the Loans in an aggregate principal amount equal to 100% of such Net Proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Minimum Amount; Adverse Consequences</u>*. Notwithstanding the foregoing provisions of this Section 2.03(b): (A) the Borrower shall not be obligated to make any prepayment required by clause 2.03(b)(i) above unless and until the aggregate Required Prepayment Amount of Net Proceeds from all such Non-OC Assets Sales, Casualty Events and Non-OC Reinsurance Transactions, after giving effect to the reinvestment rights set forth therein, exceeds $1,000,000 in any fiscal year of the Borrower and (B) the Borrower shall not be obligated to make any prepayment required by clauses 2.03(b)(i) or (ii) above to the extent that applying, directly or indirectly, any amounts to repay any Loan as required by any such clause would (1) in the case of Net Proceeds received by the Borrower or a Subsidiary organized in a non-Cayman jurisdiction, result in material adverse tax consequences to the Borrower, any of its Subsidiaries or any of their respective direct or indirect parents, (2) not be permitted by applicable Law or regulation (including regulations of any Applicable Insurance Regulatory Authority or similar governmental authority located in the jurisdiction in which any Regulated Insurance Company is domiciled, regarding financial assistance, corporate benefit, restrictions on upstreaming of cash intra-group and the fiduciary and statutory duties of the directors of the relevant subsidiaries), as reasonably determined by the Borrower in good faith, or (3) not be permitted under the Organizational Documents of the Borrower or any of its Subsidiaries (including as a result of minority ownership); <u>provided</u> that (A) the Borrower shall use commercially reasonable efforts to obtain approvals from any Applicable Insurance Regulatory Authority or similar Governmental Authority to upstream Net Proceeds for the direct or indirect application thereof in accordance with clause 2.03(b)(i) or (ii) (but only for so long as such approvals are pending or have not been denied), (B) the Borrower and its Subsidiaries shall use commercially reasonable efforts to permit repatriation of the proceeds subject to such prepayments in order to effect such prepayments without incurring material adverse tax consequences, and (C) if the application of such Net Proceeds (1) is no longer prohibited by applicable Law or regulation or if the approvals referenced in clause (A) have been obtained, (2) would no

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longer result in material adverse tax consequences (as determined by as determined by the Borrower in good faith) or (3) is no longer prohibited by the Organizational Documents of the Borrower or such Subsidiary, such Net Proceeds will be promptly (and in any event not later than five Business Days after such repatriation) applied to the prepayment of the Loans as required by Section 2.03(b)(i) or (ii). The non-application of any mandatory prepayment amounts as a result of this Section 2.03(b)(iii) will not constitute a Default or an Event of Default and such amounts shall be available for use in the business of the Borrower and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Application of Mandatory Prepayment Proceeds</u>.* Subject to Section 2.11, each mandatory prepayment pursuant to this Section 2.03(b) shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages, as directed by the Borrower, or if not so directed, to pay installments of the principal amount of the Loans as set forth in Section 2.04(a) or 2.04(b), as applicable, in direct chronological order of maturity. In connection with any prepayment pursuant to this Section 2.03(b), the Borrower shall provide a notice to the Administrative Agent specifying the amount of, and the date on which the Borrower intends to make, such prepayment. The Administrative Agent will promptly notify each Lender of such prepayment notice and of such Lender's pro rata share thereof. Each such Lender may reject all (but not less than all) of its Applicable Percentage of any such prepayment (such declined amounts, the "<u>Declined</u> <u>Proceeds</u>") of Loans required to be made pursuant to this Section 2.03(b) by providing notice to the Administrative Agent at or prior to the time of such prepayment. The aggregate amount of all Declined Proceeds shall be retained by the Borrower and may be used for any business purpose of the Borrower and its Subsidiaries.

Section 2.04 **<u>Repayment of the Loans</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall repay to the Administrative Agent, for the ratableaccount of the Lenders, an aggregate principal amount of the Restatement Euro Loans, in quarterly installments payable on each Principal Payment Date, in the amounts (expressed as a percentage of the sum of the aggregate principal amount of the Loans drawn under Section 2.01) set forth in the table below for each such Principal Payment Date (subject to (i) reduction in connection with prepayments of Loans as provided in Section 2.03 and (ii) increase in connection with the making of any New Loans pursuant to Section 2.12), together with accrued and unpaid interest on such principal amount repaid on such Principal Payment Date (but excluding any interest accrued on such Principal Payment Date).

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| | |
|:---|:---|
| **Principal Payment Date** | **Principal Payment Amount** |
|  For each Principal Payment Date occurring after the Restatement Effective Date and on or prior to the Principal Payment Date occurring on the last Business Day of the eighth full fiscal quarter of the Borrower ending after the Restatement Effective Date | 0.625% |
|  For each Principal Payment Date occurring on or after the Principal Payment Date occurring on the last Business Day of the ninth full fiscal quarter of the Borrower ending after the Restatement Effective Date until the Maturity Date | 2.50% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall repay to the Administrative Agent, for the ratable account of the Lenders, an aggregate principal amount of the Restatement Dollar Loans, in quarterly installments payable on each Principal Payment Date, in the amounts (expressed as a percentage of the sum of the aggregate principal amount of the Loans drawn under Section 2.01) set forth in the table below for each such Principal Payment Date (subject to (i) reduction in connection with prepayments of Loans as provided in Section 2.03, (ii) increase in connection with the making of any New Loans pursuant to Section 2.12 and (iii) increase in connection with the making of any Restatement Dollar Loans after the Restatement Effective Date pursuant to Section 2.01(b)(i)), together with accrued and unpaid interest on such principal amount repaid on such Principal Payment Date (but excluding any interest accrued on such Principal Payment Date).

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| | |
|:---|:---|
| Principal Payment Date | Principal Payment Amount |
|  For each Principal Payment Date occurring after the Restatement Effective Date and on or prior to the Principal Payment Date occurring on the last Business Day of the eighth full fiscal quarter of the Borrower ending after the Restatement Effective Date | 0.625% |
|  For each Principal Payment Date occurring on or after the Principal Payment Date occurring on the last Business Day of the ninth full fiscal quarter of the Borrower ending after the Restatement Effective Date until the Maturity Date | 2.50% |

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The scheduled amortization payments under this Section 2.04(b) required to be made after the making of any Restatement Dollar Loans shall be ratably increased by the aggregate principal amount of such Restatement Dollar Loans and shall be further increased for all Lenders on a pro rata basis to the extent necessary to avoid any reduction in the amortization payments to which the Lenders were entitled before such recalculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The remaining aggregate principal balance of the Loans will be repayable on the Maturity Date.

Section 2.05 **<u>Interest</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of paragraph (b) below, (i) each EURIBOR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the EURIBOR Rate for such Interest Period, plus the Applicable Rate and (ii) each SOFR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to Adjusted Term SOFR for such Interest Period, plus the Applicable Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuance of an Event of Default pursuant to Section 8.01(a), to the fullest extent permitted by applicable Laws, such amounts as are then due and payable hereunder and unpaid shall bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

Section 2.06 **<u>Fees</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall pay to each Lender having a Restatement Dollar Commitment, a commitment fee equal to (i) the actual daily amount of the unused Restatement Dollar Commitment of such Lender, multiplied by (ii) 0.50% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall pay to the Administrative Agent for its account such fees as shall have been separately agreed upon between the Borrower and the Administrative Agent in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower shall pay to each Arranger for its account such fees as shall have been separately agreed upon between the Borrower and such Arranger in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

Section 2.07 **<u>Computation of Interest and Fees</u>**

All computations of fees and interest shall be made on the basis of a year of 360 days and actual days elapsed (which results in more fees and interest being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; <u>provided</u> that any Loan that is repaid on the same day on which it is made shall bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

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Section 2.08 **<u>Evidence of Debt</u>**

The Borrowings made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Borrowings made by the Lenders and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type, amount and maturity of its Loans and payments with respect thereto.

Section 2.09 **<u>Payments Generally; Administrative Agent's Clawback</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>General</u>*. All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in the appropriate Agreed Currency and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Clawback</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Funding by Lenders; Presumption by Administrative Agent</u>.* Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Loans that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower agrees to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans. If the Borrower and such Lender shall pay such interest

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to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Payments by the Borrower; Presumptions by Administrative Agent</u>.<u> </u>*Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

A notice of the Administrative Agent to any Lender or Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Failure to Satisfy Conditions Precedent</u>.* If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Obligations of Lenders Several</u>.* The obligations of the Lenders hereunder to make Loans and payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender to make any Loan or payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under Section 10.04(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Funding Source</u>.* Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan or other funding obligation in any particular place or manner.

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Section 2.10 **<u>Sharing of Payments by Lenders</u>**

If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it resulting in such Lender's receiving payment of a proportion of the aggregate principal amount of such Loans and accrued interest thereon greater than its pro-rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing to them; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall not be construed to apply to (x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant.

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

Section 2.11 **<u>Defaulting Lenders</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Adjustments</u>*. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Termination of Defaulting Lender Commitment</u>.* The Borrower may terminate the unused amount of the Commitment of a Defaulting Lender upon not less than two Business Days' prior notice to the Administrative Agent (which will promptly notify the Lenders thereof), and in such event the provisions of clause (iii) below will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); <u>provided</u> that such termination will not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, or any Lender may have against such Defaulting Lender, or cause such Defaulting Lender to be a Non-Defaulting Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Waivers and Amendments</u>*. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of "Required Lenders" and Section 10.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Defaulting Lender Waterfall</u>*. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, as the Borrower may request (if no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third*, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; *fourth*, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth*, if no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that, if (x) such payment is a payment of the principal amount of any Loans respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.01 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans and held by the Lenders pro rata in accordance with the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.11(a)(iii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Certain Fees</u>*. Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such period pursuant to Section 2.06 (without prejudice to the rights of the Non-Defaulting Lenders in respect of such fees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Defaulting Lender Cure</u>*. If the Borrower and the Administrative Agent agree in writing in their discretion that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice, and subject to any conditions set forth therein, such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender's having been a Defaulting Lender.

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Section 2.12 **<u>Incremental Facilities</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower may, at its option, from time to time on or after the Restatement Dollar Loan Availability Termination Date, obtain one or more additional term loans up to an aggregate principal amount of $50,000,000 (each, a "<u>New Loan</u>"), in each case upon at least four Business Days' prior written notice to the Administrative Agent, which notice shall specify (A) the requested amount of a New Loan, (B) if such New Loan is intended to be fungible with any then-existing Class of Loans, the Class of which such New Loan will form a part and (C) date on which the Borrower proposes to borrow such New Loan (such date, a "<u>New Loan Borrowing Date</u>"), and in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower may offer any New Loan to be provided to the Lenders (but no Lenders will be required to provide any such New Loan or will have the right to be offered to provide any such New Loan) and/or other Persons approved by the Borrower and, unless such Person is a Lender or an Affiliate or an Approved Fund of a Lender, the Administrative Agent (such approval not to be unreasonably withheld or delayed) on either a pro-rata or non-pro-rata basis as determined by the Borrower in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan; <u>provided</u> that (1) any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality) and (2) with respect to any New Loan in connection with a Limited Condition Investment, such representations and warranties shall only be required to be true and correct in all material respects on and as of the date of the applicable LCT Test Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan, no Default or Event of Default shall have occurred and be continuing (except that, with respect to any New Loan in connection with a Limited Condition Investment, the requirement pursuant to this clause (a)(iii) shall be that no Event of Default shall exist at the applicable LCT Test Date and no Event of Default under Section 8.01(a) or 8.01(f) (solely with respect to the Borrower) shall exist as of the effectiveness of such Incremental Agreement in each case after giving effect to such New Loan);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to the provisions of Section 1.11 with respect to any New Loan in connection with a Limited Condition Investment, immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan and the use of proceeds thereof, on a pro forma basis, the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no consent of any Lender shall be required in connection with any increase in the Commitments in respect of any New Loan or the funding of its share of the New Loans, in each case in accordance with this Section 2.12(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) each Commitment in respect of any New Loan (a "<u>New</u> <u>Commitment</u>") shall become effective when the Persons (including Lenders) providing such New Loan (such Lenders and other Persons, the "<u>Incremental Lenders</u>"), the Borrower and the Administrative Agent shall have entered into a written agreement (each an "<u>Incremental Agreement</u>") pursuant to which (A) each such Incremental Lender agrees to provide a New Commitment and to extend a New Loan in the amount specified therein (B) each such Incremental Lender that is not then a Lender agrees to assume and accept the obligations and rights of a Lender hereunder, (C) the Borrower accepts such New Commitment and (D) a New Loan Borrowing Date is specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower certifying compliance with the conditions specified in Section 2.12(a)(ii), Section 2.12(a)(iii) and Section 2.12(a)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the principal amount of each New Loan shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Incremental Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any New Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) may be pari passu with or junior to any then-existing Class of Loans in right of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not mature earlier than the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to any necessary adjustments reasonably acceptable to the Administrative Agent and the Borrower to make such New Loans fungible with any then-existing Class of Loans, shall not have a shorter Weighted Average Life to Maturity than any then-existing Loans (without giving effect to prepayments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) shall have a maturity date (subject to clause (ii)), an amortization schedule (subject to clause (iii)), and interest rates (including through fixed interest rates), interest margins, rate floors, upfront fees, funding discounts and original issue discounts as determined by the Borrower and the Incremental Lenders; <u>provided</u>, that with respect to New Loans that (A) are pari passu in right of payment with the Restatement Dollar Loans and Restatement Euro Loans, in the event that the All-In Yield for any such New Loans denominated in Dollars or denominated Euros is greater than the All-In Yield for the

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Restatement Dollar Loans or Restatement Euro Loans, respectively, by more than 0.50%, then the Applicable Rate for the Restatement Dollar Loans and Restatement Euro Loans, as applicable, shall be increased to the extent necessary so that the All-In Yield for such Loans is equal to the All-In Yield for such New Loans minus 0.50%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent pari passu in right of payment with any then-existing Restatement Dollar Loans and Restatement Euro Loans that require ratable prepayment, shall share ratably with such existing Loans, subject to the right of the Borrower to direct the application of voluntary prepayments and unless the Borrower and the Incremental Lenders providing the New Loans elect to share in such prepayments on a less than pro rata basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) shall not be (x) guaranteed or incurred by any Person that is not a Credit Party or (y) secured by any assets of the Borrower or any of its Subsidiaries unless this Agreement is amended in a form reasonably acceptable to the Administrative Agent and the Borrower so that the then-existing Loans are secured by such assets, which amendment shall not require the consent of the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) may otherwise have terms and conditions different from those of the Restatement Dollar Loans and Restatement Euro Loans; provided, that (x) except with respect to matters contemplated by clauses (ii), (iii), (iv), (v) and (vi) above, the material terms of any New Loans shall not be materially more favorable (when taken as a whole) to the Incremental Lenders with respect to such Loans than the terms and conditions of the Restatement Dollar Loans and Restatement Euro Loans (when taken as a whole), as applicable, as reasonably determined by the Borrower, unless such differences are (1) reasonably satisfactory to the Administrative Agent, (2) applicable only after the then existing Maturity Date or (3) included in this Agreement pursuant to an amendment to benefit the then-existing Loans (which amendment shall not require the consent of the existing Lenders) (including, for the avoidance of doubt, at the option of the Borrower, any increase in the applicable interest rate margin or amount of amortization to make such New Loans fungible with such then-existing Loans), and (y) the documentation governing any New Loans may include any more restrictive terms so long as the Administrative Agent shall have been given prompt written notice thereof and this Agreement is amended in a form reasonably acceptable to the Administrative Agent and the Borrower to include such more restrictive terms, which amendment shall not require the consent of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each New Loan shall be deemed, for all purposes, a Loan. If any New Loans are intended to be fungible with any then-existing Class of Loans, then the terms and provisions of such New Loans shall be identical to the terms and provisions of such then-existing Class of Loans. The Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that all such New Loans, when originally made, are included in each Borrowing of outstanding Loans of such then-existing Class on a pro rata basis. This may be accomplished by allocating a portion of each such New Loan to each such outstanding Borrowing on a pro rata basis. If any New Loan is to be allocated to an existing Interest Period for a Borrowing, then the interest rate thereon for such Interest Period and the other economic consequences thereof shall be as set forth in the Incremental Agreement. In addition, the scheduled amortization payments under Section 2.04 required to be made in respect of such then-existing

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Class of Loans after the making of such New Loans shall be ratably increased by the aggregate principal amount of such New Loans and shall be further increased for all Lenders holding Loans of such then-existing Class on a pro rata basis to the extent necessary to avoid any reduction in the amortization payments to which such Lenders were entitled before such recalculation.

Section 2.13 **<u>ESG Adjustments</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) After the Restatement Effective Date, the Borrower, in consultation with the Sustainability Coordinators, shall be entitled, but shall not be required, to establish specified key performance indicators ("<u>KPIs</u>") with respect to certain environmental, social and governance ("<u>ESG</u>") targets of the Borrower and its Subsidiaries. The Sustainability Coordinators and the Borrower may amend this Agreement (such amendment, an "<u>ESG Amendment</u>") solely for the purpose of incorporating the KPIs and other related provisions (the "<u>ESG Pricing Provisions</u>") into this Agreement, and any such amendment shall become effective at 5:00 p.m. on the tenth (10th) Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent (who shall promptly notify the Borrower) written notice that such Required Lenders object to such ESG Amendment. In the event that Required Lenders deliver a written notice objecting to any such ESG Amendment, an alternative ESG Amendment may be effectuated with the consent of the Required Lenders, the Borrower and the Sustainability Coordinators. Upon the effectiveness of any such ESG Amendment, based on the Borrower's performance against the KPIs, certain adjustments (increase, decrease or no adjustment) (such adjustments, the "<u>ESG Applicable Rate Adjustments</u>") to the Applicable Rate will be made; <u>provided</u> that the amount of all such adjustments shall not exceed an increase and/or decrease of 0.05% per annum. The KPIs, the Borrower's performance against the KPIs, and any related ESG Applicable Rate Adjustments resulting therefrom, will be determined based on certain certificates, reports and other documents, in each case, setting forth the calculation and measurement of the KPIs in a manner that is aligned with the Sustainability Linked Loan Principles and to be mutually agreed between the Borrower and the Sustainability Coordinators (each acting reasonably). Following the effectiveness of any ESG Amendment, any modification to the ESG Pricing Provisions shall be subject only to the consent of the Required Lenders so long as such modification does not have the effect of reducing the Applicable Rate to a level not otherwise permitted by this Section 2.13(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Sustainability Coordinators will assist the Borrower in (i) determining the ESG Pricing Provisions in connection with any ESG Amendment and (ii) preparing informational materials focused on ESG to be used in connection with any ESG Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Section 2.13 shall supersede any provisions in Section 10.01 to the contrary.

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**ARTICLE III** 

**TAXES, YIELD PROTECTION AND ILLEGALITY** 

Section 3.01 **<u>Taxes</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Defined Terms</u>*. For purposes of this Section 3.01 the term "applicable Law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Payments Free of Taxes</u>.* Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Payment of Other Taxes by the Borrower</u>*. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Indemnification by the Lenders</u>*. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Evidence of Payments</u>*. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 3.01, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Status of Lenders; Tax Documentation</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.01(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of executed IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, copies of executed IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) copies of executed IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>") and (y) copies of executed IRS Form W-8BEN-E or W-8BEN; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, copies of executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-4 on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of any other executed form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the

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Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Treatment of Certain Refunds</u>*. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 3.01 (including by the payment of additional amounts pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Survival</u>*. Each party's obligations under this Section 3.01 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations under any Loan Document.

Section 3.02 **<u>Illegality</u>**

If any Lender determines that any Change in Law or introduction of any law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its Lending Office to make, maintain or fund Loans whose interest is determined by reference to any Relevant Rate, or to determine or charge interest rates based upon any Relevant

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Rate, or any Governmental Authority has imposed material restrictions on the legal authority of such Lender to purchase or sell, or to take deposits of, Euros in the euro interbank market (each, an "<u>Illegality Event</u>"), then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue Loans shall be suspended. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Loans of such Lender to an alternative rate mutually acceptable to the Borrower, the Administrative Agent and such Lender, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted and any amount payable pursuant to Section 3.05. During any period in which an Illegality Event is in effect, the Borrower may request, through the Administrative Agent, that the Lenders affected by such Illegality Event confirm that the circumstances giving rise to the Illegality Event continue to be in effect. If, within ten Business Days following such confirmation request, such Lenders have not confirmed the continued effectiveness of such Illegality Event, then such Illegality Event shall no longer be deemed to be in effect; <u>provided</u> that (A) the Borrower shall not be permitted to submit any such request more than once in any 30-day period and (B) nothing contained in this Section 3.02 or the failure to provide confirmation of the continued effectiveness of such Illegality Event shall in any way affect the Lenders' right to provide any additional notices of an Illegality Event as provided in this Section 3.02.

Section 3.03 **<u>Inability to Determine Rates; Successor Rate</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Required Lenders determine that for any reason in connection with any request for a Term Benchmark Loan or a conversion to or continuation thereof that (i) Euro deposits are not being offered to banks in the euro interbank market for the applicable amount and Interest Period of such Loan, (ii) adequate and reasonable means do not exist for determining the then-current Benchmark for any requested Interest Period with respect to a proposed Term Benchmark Loan, or (iii) the then-current Benchmark for any requested Interest Period with respect to a proposed Term Benchmark Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan (each, a "<u>Market Disruption Event</u>"), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain the applicable Term Benchmark Loans shall be suspended. Upon receipt of such notice, the Borrower, the Administrative Agent and the Lenders may establish a mutually acceptable alternative rate. During any period in which a Market Disruption Event is in effect, the Borrower may request, through the Administrative Agent, that the Required Lenders confirm that the circumstances giving rise to the Market Disruption Event continue to be in effect. If, within ten Business Days following such confirmation request, the Required Lenders have not confirmed the continued effectiveness of such Market Disruption Event, then such Market Disruption Event shall no longer be deemed to be in effect; <u>provided</u> that (A) the Borrower shall not be permitted to submit any such request more than once in any 30 day period and (B) nothing contained in this Section 3.03(a) or the failure to provide confirmation of the continued effectiveness of such Market Disruption Event shall in any way affect the Required Lenders' right to provide any additional notices of a Market Disruption Event as provided in this Section 3.03(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Effect of Benchmark Transition Event</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, with respect to any Benchmark, the Administrative Agent and the Borrower may amend this Agreement to replace such Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of any Benchmark with a Benchmark Replacement pursuant to this Section 3.03(b) will occur prior to the applicable Benchmark Transition Start Date with respect to such Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In connection with the implementation of a Benchmark Replacement with respect to any Benchmark, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.03(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 3.03(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period with respect to any Benchmark, the Borrower may revoke any request for a Borrowing of, conversion to or continuation of the applicable Term Benchmark Loans to be made, converted or continued during any Benchmark Unavailability Period with respect to such Benchmark and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Loans that bear interest based on an alternative rate mutually acceptable to the Borrower, the Administrative Agent and the Lenders.

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Section 3.04 **<u>Increased Costs; Reserves on EURIBOR Loans</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Increased Costs Generally</u>*. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of "Excluded Taxes" and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the euro interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Term Benchmark Loans made by such Lender (except any reserve requirement contemplated by Section 3.04(e)), and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any Loan the interest on which is determined by reference to the EURIBOR Rate or Term SOFR, as applicable, (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(a), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(a) and the definition of "Change in Law".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Capital Requirements</u>*. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(b), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(b) and the definition of "Change in Law".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Certificates for Reimbursement</u>*. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Delay in Requests</u>*. Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six month period referred to above shall be extended to include the period of retroactive effect thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Reserves on EURIBOR Loans</u>*. The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as "<u>Eurocurrency</u> <u>liabilities</u>"), additional interest on the unpaid principal amount of each EURIBOR Loan equal to the actual costs of such reserves allocated to such EURIBOR Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such EURIBOR Loan; <u>provided</u> that the Borrower shall have received at least ten days' prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice ten days prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten days from receipt of such notice.

Section 3.05 **<u>Compensation for Losses</u>**

Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any continuation, conversion, payment or prepayment of any Term Benchmark Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Term Benchmark Loan on the date or in the amount notified by the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any assignment of a Term Benchmark Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13; including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained (but, for the avoidance of doubt, not any loss of anticipated profits). The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

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For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each EURIBOR Loan made by it at the EURIBOR Rate for such Loan by a matching deposit or other borrowing in the euro interbank market for a comparable amount and for a comparable period, whether or not such EURIBOR Loan was in fact so funded.

Section 3.06 **<u>Mitigation Obligations; Replacement of Lenders</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Designation of a Different Lending Office</u>*. If any Lender requests compensation under Section 3.04, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then at the request of the Borrower, such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts then or thereafter payable pursuant to Section 3.01 or 3.04, as the case may be, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Replacement of Lenders</u>*. If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, and, in each case such Lender has declined or is unable to designate a different lending office in accordance with Section 3.06(a), the Borrower may replace such Lender in accordance with Section 10.13 if no Default or Event of Default has occurred and is continuing.

Section 3.07 **<u>Survival</u>**

All of the Borrower's obligations under this Article III shall survive termination of the Commitments, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.

**ARTICLE IV** 

**CONDITIONS PRECEDENT** 

Section 4.01 **<u>Conditions to Effectiveness</u>**

The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent's receipt of the following, each of which shall be originals or in electronic format (followed promptly by originals) unless otherwise specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) counterparts of this Agreement executed by the Credit Parties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Note executed by the Borrower in favor of each Lender requesting a Note in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Guaranty executed by the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Credit Parties as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents (including, in the case of any Credit Party incorporated under the laws of the Cayman Islands, true, correct and up to date copies of the certificate of incorporation, memorandum and articles of association, register of directors, register of officers, register of members and register of mortgages and charges of such Credit Party) and (B) a good standing certificate (or equivalent) for each of the Credit Parties from its jurisdiction of organization, registration or incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) customary opinions of each of (A) Sidley Austin, LLP, (B) Maples Group and (C) Wakefield Quin Limited, in each case, counsel to the Credit Parties, addressed to the Administrative Agent and each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in Section 4.01(b), Section 4.01(c) and Section 4.01(d) have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) a certificate, in the form attached hereto as Exhibit G, from a Financial Officer of the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) (A) at least three (3) Business Days prior to the date of this Agreement, all documentation and other information requested by the Administrative Agent or any Arranger, to the extent requested in writing of the Borrower at least 10 days prior to the date of this Agreement and that the Administrative Agent and the Arrangers reasonably determine is required by United States regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, and (B) to the extent the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, at least five (5) days prior to the date of this Agreement, a Beneficial Ownership Certification in relation to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of the Restatement Effective Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately prior to, and immediately after giving effect to, the effectiveness of this Agreement, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any fees and expenses required to be paid on or before the Restatement Effective Date pursuant to the Loan Documents (but, with respect to expenses, only to the extent invoiced at least three (3) Business Days prior to the Restatement Effective Date) shall have been paid or shall have been authorized to be deducted from the proceeds of the funding of the Loans on the Restatement Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All accrued and unpaid interest on the Loans (as defined in the Existing Credit Agreement) and all accrued and unpaid commitment fees in respect of the Commitments (as defined in the Existing Credit Agreement), as of the Restatement Effective Date, shall have been paid.

Without limiting the generality of the provisions of Section 9.03(c), for purposes of determining compliance with the conditions specified in Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Restatement Effective Date specifying its objection thereto.

Section 4.02 **<u>Conditions to the Making of Loans</u>**

The obligation of each Lender to make any Loans on any Borrowing Date (including the Restatement Effective Date) is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of such Borrowing Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Immediately prior to, and immediately after giving effect to, the making of such Loans on such Borrowing Date, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Immediately prior to, and immediately after giving effect to, the making of such Loans on such Borrowing Date and the use of proceeds thereof, on a pro forma basis, the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower.

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**ARTICLE V** 

**REPRESENTATIONS AND WARRANTIES** 

The Borrower represents and warrants to the Lenders the following:

Section 5.01 **<u>Existence, Qualification and Power</u>**

Each Credit Party and each Subsidiary (i) is duly organized, registered, incorporated or formed, validly existing and, as applicable, in good standing (to the extent such concept is applicable) under the Laws of the jurisdiction of its incorporation, registration or organization, (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals from all Governmental Authorities to (A) own or lease its assets and carry on its business and (B) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except in each case referred to in clause (i) (other than with respect to the existence of the Borrower), (ii)(A) or (iii), to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect.

Section 5.02 **<u>Authorization; No Contravention</u>**

The execution, delivery and performance by each Credit Party of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of its respective Organizational Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under (A) any Contractual Obligation to which such Credit Party is a party or affecting such Credit Party or the properties of such Credit Party which would reasonably be expected to result in a Material Adverse Effect, (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or any of its Subsidiaries or their property is subject which would reasonably be expected to result in a Material Adverse Effect or (C) any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount which would reasonably be expected to result in a Material Adverse Effect or (iii) violate any Law the effect of which would reasonably be expected to result in a Material Adverse Effect.

Section 5.03 **<u>Execution and Delivery; Binding Effect</u>**

This Agreement has been, and each other Loan Document to which each Credit Party is a party, when delivered hereunder, will have been, duly executed and delivered by such Credit Party. This Agreement constitutes, and each other Loan Document to which each Credit Party is a party when so delivered will constitute, a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counter-claim, the plea of prescription, principle of public policy or other Laws affecting creditors' rights generally and by general principles of equity.

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Section 5.04 **<u>No Material Adverse Effect</u>**

Since December 31, 2020, there has been no event or circumstance that, either individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

Section 5.05 **<u>Litigation</u>**

As of the Restatement Effective Date, there are no actions, suits, proceedings or investigations pending or, to the knowledge of the Borrower, threatened in writing, at Law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any Subsidiary or against any of their properties that (i) either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (ii) affect the validity or enforceability of this Agreement or any other Loan Document or any of the transactions contemplated hereby.

Section 5.06 **<u>Property</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Ownership of Properties</u>*. Each Credit Party and each Subsidiary has good title to, or valid leasehold interests in, all property and assets necessary in the ordinary conduct of its business, except for such defects in title that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Intellectual Property</u>*. Each Credit Party and each Subsidiary owns, licenses or possesses the rights to use all of the trademarks, trade names, service marks, trade names, copyrights, patents, licenses and other intellectual property rights that are necessary for the operation of their respective businesses, as currently conducted, and the use thereof by the Credit Parties and the Subsidiaries does not conflict with the intellectual property rights of any other Person, except to the extent that such failure to own, license or possess or such conflicts, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The operation of the business of each Credit Party and each Subsidiary as currently conducted does not infringe upon or violate any intellectual property rights held by any other Person, except to the extent that such infringements and violations, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

Section 5.07 **<u>Taxes</u>**

Each Credit Party and each Subsidiary has filed (or caused to be filed) all U.S. federal, state and other Tax returns and reports and all non-U.S. Tax returns and reports required to be filed, and have paid (or caused to be paid) all U.S. federal, state and other Taxes and all non-U.S. Taxes, levied or imposed upon them or their properties, income or assets otherwise due and payable, except (i) Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP or SAP, as the case may be, or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

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Section 5.08 **<u>Disclosure</u>**

No written report, financial statement, certificate or other written information furnished (other than projected or pro-forma financial information and general market or industry data) by or on behalf of the Borrower to the Administrative Agent or any Lender for use in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not materially misleading. The projected or pro-forma financial information contained in the materials referenced in the preceding sentence were prepared in good faith based upon assumptions believed to be reasonable at the time made (it being understood that such projected or pro-forma information may vary from actual results and that such variances may be material).

Section 5.09 **<u>Compliance with Laws</u>**

Each Credit Party and each Subsidiary is in compliance with the requirements of all Laws (including Environmental Laws) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (i) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted and the pendency of such proceedings, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect or (ii) the failure to so comply, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

Section 5.10 **<u>ERISA Compliance</u>**

Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Plan is in compliance with the applicable provisions of ERISA and the Code and each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or is relying on an opinion letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code, or an application for such a letter is currently being processed by the IRS, and, to the knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there are no pending or, to the knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or violation of the fiduciary responsibility rules with respect to any Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no ERISA Event has occurred or is reasonably expected to occur, for which liability has been or is reasonably expected to be imposed on any Credit Party; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities.

Section 5.11 **<u>Environmental Matters</u>**

The Credit Parties and the Subsidiaries are not subject to any pending or, to the knowledge of the Borrower, threatened claim alleging liability under or responsibility for violation of any Environmental Law in connection with their respective businesses, operations and properties, except for claims which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Section 5.12 **<u>Margin Regulations; Federal Reserve Regulations; Use of Proceeds</u>**

None of the Credit Parties or any Subsidiary is engaged and the Credit Parties and the Subsidiaries will not engage, principally or as one of its respective important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets of the Borrower and its Subsidiaries on a consolidated basis, subject to Section 7.02 or other restriction on transfer or disposition hereunder, will be Margin Stock. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Federal Reserve Board, including Regulations T, U and X. The Borrower has or will use the proceeds of the Loans only for the purposes set forth in Section 6.11.

Section 5.13 **<u>Investment Company Act</u>**

None of the Credit Parties are required to register as an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

Section 5.14 **<u>Anti-Corruption Laws and Sanctions</u>**

Each of the Credit Parties has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by it, its Subsidiaries and, to the extent acting on their behalf, their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower and its Subsidiaries and, to the knowledge of the Borrower, its officers, employees, directors and agents, to the extent are acting on their behalf, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of the Borrower and any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers, employees or, to the extent acting in any capacity in connection with the credit facility established hereby, agents is a Sanctioned Person. Each of the Credit Parties is in compliance, in all material respects, with the Uniting And Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA Patriot Act of 2001), to the extent applicable.

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Section 5.15 **<u>Solvency</u>**

On the Restatement Effective Date, immediately after giving effect to the Transactions to occur on the Restatement Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The fair value of the assets of the Borrower and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The present fair saleable value of the property of the Borrower and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital.

Section 5.16 **<u>Beneficial Ownership Certification</u>**

Each Beneficial Ownership Certification executed and delivered to the Administrative Agent by the Borrower from time to time, as updated from time to time in accordance with this Agreement, is accurate, complete and correct as of the date thereof.

Section 5.17 **<u>EEA Financial Institutions</u>**

None of the Credit Parties is an EEA Financial Institution.

Section 5.18 **<u>Insurance Licenses</u>**

No License held by a Material Insurance Subsidiary, the loss of which could reasonably be expected to have a Material Adverse Effect, is the subject of a proceeding that could reasonably be expected to result in the suspension or revocation of such License.

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**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

Section 6.01 **<u>Financial Statements and Statutory Statements</u>**

The Borrower will furnish to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within 150 days after the end of each fiscal year of the Borrower, commencing with the fiscal year ended December 31, 2021, a consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such fiscal year and the related consolidated statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries for such fiscal year, in each case, setting forth in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of PricewaterhouseCoopers LLP or other independent public accountants of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards (and shall not be subject to any "going concern" or like qualification, exception or explanatory paragraph (except to the extent such qualification, exception or explanatory paragraph results solely from a current maturity of the Loans) or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such financial statements present fairly in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries on a consolidated basis, in accordance with GAAP, consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a balance sheet for the Borrower and its consolidated Subsidiaries as at the end of such fiscal quarter, and the related statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries for such fiscal quarter and for the portion of the Borrower's fiscal year then ended, setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, in each case to the extent available, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries in accordance with GAAP, consistently applied, subject only to normal year-end audit adjustments and the absence of footnotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five Business Days after filing with the Applicable Insurance Regulatory Authority with respect to each Material Insurance Subsidiary, a copy of the annual Statutory Statement of each Material Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) within the earlier of (x) five Business Days after filing with the Applicable Insurance Regulatory Authority (if so required) and (y) 120 days after the last day of each fiscal year of each Material Insurance Subsidiary (commencing with the first such fiscal year ending after the Restatement Effective Date), the quarterly Statutory Statement for each Material Insurance Subsidiary for such period.

Section 6.02 **<u>Certificates; Other Information</u>**

The Borrower will, and will cause its Subsidiaries to, deliver to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) concurrently with the delivery of the financial statements referred to in Sections 6.01(i) and 6.01(ii), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower (A) certifying as to whether a Default is continuing and, if a Default is continuing, specifying the details thereof, (B) setting forth reasonably

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detailed calculations of the Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio, Interest Coverage Ratio and Consolidated Net Worth and demonstrating compliance with the covenants set forth in Section 7.11 as of the last day of the period for which such financial statements are delivered, (C) calculate the applicable Pricing Level for the Applicable Rate and (D) if the aggregate total assets of the Borrower and the Material Subsidiaries represent less than 92.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries or the aggregate revenues of the Borrower and the Material Subsidiaries represent less than 90% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable), identifying one or more Subsidiaries that shall thereafter be designated (and the Borrower shall thereupon so designate such Subsidiaries as) Material Subsidiaries hereunder so that the total assets of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the revenues of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable) as of the last day of the period for which such financial statements are delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly after the same become publicly available, copies of allperiodic reports, all financial statements and periodic reports that the Borrower sends to its limited partners and copies of all other financial statements and regular, periodic or special reports (including Form 8-K) that the Borrower or any of its Subsidiaries may make to, or file with, the SEC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly following any written request therefor (except to the extent prohibited by applicable law, regulatory policy, regulatory restriction or confidentiality agreement or to the extent covered by attorney-client or other legal privilege (as determined in the reasonable good faith judgment of the Borrower)), such other information regarding the operations, business, properties or financial condition of the Credit Parties, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender (through the Administrative Agent) may from time to time reasonably request (including beneficial ownership and other know-your-customer information).

Documents required to be furnished or delivered pursuant to Section 6.01(i), 6.01(ii), 6.02(i), 6.02(ii) or 6.02(iii) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (A) on which such documents are delivered in a format acceptable to the Administrative Agent pursuant to Section 10.02(a)(i), or such other email address as the Administrative Agent shall specify in writing to the Borrower, (B) on which such documents are posted on the Borrower's behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent), or (C) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website on the Internet at the website listed on Schedule 10.02; <u>provided</u> that documents furnished or delivered pursuant to the foregoing clause (C) shall

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not be deemed to have been delivered unless and until a Borrower has notified the Administrative Agent in writing (including by email pursuant to Section 10.02(a)(i)) of the posting such documents on an Intranet or intranet website to which each Lender and the Administrative Agent have access or to the Borrower's website.

The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining copies of such documents.

The Borrower hereby acknowledges that (i) the Administrative Agent may, but shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, "<u>Borrower Materials</u>") by posting the Borrower Materials on an Approved Electronic Platform and (ii) certain of the Lenders (each, a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities. The Borrower hereby agrees that: (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word "PUBLIC" shall appear prominently on the first page thereof; (x) by marking Borrower Materials "PUBLIC", the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or their securities for purposes of United States Federal and state securities laws (<u>provided</u> that, to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Approved Electronic Platform designated "Public Side Information"; and (z) the Administrative Agent shall treat any Borrower Materials that are not marked "PUBLIC" as being suitable only for posting on a portion of the Approved Electronic Platform not designated "Public Side Information".

Section 6.03 **<u>Notices</u>**

The Borrower will, and will cause its Subsidiaries to, promptly notify the Administrative Agent and each Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws, in each case in which there is a reasonable expectation of an adverse determination and that, if adversely determined, would reasonably be expected to have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material change in accounting or financial reporting practices by the Borrower or any Subsidiary other than in accordance with GAAP or SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any proposed amendment or other modification of the bylaws of the Borrower or any of its Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any public announcement by AM Best of (1) any change to any rating level applicable to the Borrower or any Insurance Subsidiary or (2) the placement of any rating of the Borrower or any Insurance Subsidiary as under review by AM Best.

Each notice delivered under this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth the details of the occurrence requiring such notice and stating what action the Borrower has taken and proposes to take with respect thereto.

Section 6.04 **<u>Preservation of Existence, Etc</u>**.

The Borrower will, and will cause each Subsidiary to: (i) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted or not restricted by Section 7.05; (ii) take all reasonable action to maintain all government rights, licenses (including from any Applicable Insurance Regulatory Authority), permits, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (iii) preserve or renew all of its registered patents, trademarks, trade names and service marks, in each case under this clause (iii), the non-preservation of which would reasonably be expected to have a Material Adverse Effect.

Section 6.05 **<u>Maintenance of Properties</u>**

The Borrower will, and will cause each Subsidiary to, (i) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition (ordinary wear and tear and casualty and condemnation excepted) and (ii) make all necessary repairs thereto and renewals and replacements thereof, in each case under this Section 6.05, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

Section 6.06 **<u>Maintenance of Insurance</u>**

The Borrower will, and will cause each Subsidiary to, maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance customary for similarly situated Persons engaged in the same or similar businesses as the Borrower or Subsidiary) as are customarily carried under similar circumstances by such Persons.

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Section 6.07 **<u>Payment of Obligations</u>**

The Borrower will, and will cause each Subsidiary to, pay, discharge or otherwise satisfy before the same shall become delinquent, all of its obligations and liabilities (including Tax liabilities), in each case under this Section 6.07, except (i) if the same are being contested in good faith by appropriate proceedings and adequate reserves in accordance with GAAP, are being maintained by the Borrower or such Subsidiary or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

Section 6.08 **<u>Compliance with Laws</u>**

The Borrower will, and will cause each Subsidiary to, comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to do so would not reasonably be expected to have a Material Adverse Effect. Notwithstanding anything to the contrary in the foregoing, the Borrower will, directly or through its Subsidiaries, maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Borrower, its Subsidiaries and, to the extent acting on behalf of the Borrower or Subsidiary, each of their respective directors, officers, employees and agents, with Anti-Corruption Laws and applicable Sanctions.

Section 6.09 **<u>Books and Records</u>**

The Borrower will, and will cause each Subsidiary to, maintain proper books of record and account, in which full, true and correct entries are made to permit the preparation of financial statements in conformity with GAAP, SAP or other appropriate generally accepted accounting principles, as the case may be.

Section 6.10 **<u>Inspection Rights</u>**

The Borrower will, and will cause each Subsidiary to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the reasonable expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably requested; <u>provided</u> that, other than with respect to such visits and inspections during the continuance of an Event of Default, (i) the Administrative Agent and the Lenders shall collectively be limited to exercising such rights no more often than once during any calendar year, (ii) visits by any Lender shall be coordinated with the Borrower through the Administrative Agent and (iii) any Lender electing to exercise such rights shall notify the Administrative Agent and each other Lender reasonably in advance of such exercise and the Administrative Agent and each other Lender (and their representatives and independent contractors) shall be given a reasonable opportunity to participate therein; <u>provided</u>, <u>further</u>, that during the continuance of an Event of Default the Administrative Agent or any Lender (or any of their respective representatives) may do any of the foregoing under this Section at any time. Such inspection rights are subject to the provisions of

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Section 10.07 and applicable Law and shall not extend to any information covered by attorney-client or other legal privilege or to the extent the exercise of such inspection rights would result in violation or other breach of any third-party confidentiality agreements. The Administrative Agent and the Lenders shall give the Borrower or such Subsidiary the opportunity to participate in any discussions with the Borrower's or such Subsidiary's accountants.

Section 6.11 **<u>Use of Proceeds</u>**

Subject to Section 7.09, the Borrower shall use the proceeds of the Loans to fund (i) the Transaction Costs and (ii) to the extent of any balance thereof, general corporate purposes of the Borrower and its Subsidiaries (excluding Restricted Payments made by the Borrower in reliance on clauses (iv) or (vii) of Section 7.06).

Section 6.12 **<u>Additional Guarantors</u>**

In the event that (a) any Subsidiary of the Borrower (other than an Insurance Subsidiary) that directly or indirectly owns any Equity Interests of any Insurance Subsidiary or (b) any Subsidiary of the Borrower (solely in the case of this clause (b), other than any Excluded Subsidiary), in each case of clauses (a) and (b), is formed or acquired after the Restatement Effective Date (<u>provided</u> that any Excluded Subsidiary ceasing to be an Excluded Subsidiary but remaining a Subsidiary of the Borrower shall be deemed to constitute the acquisition of a Subsidiary of the Borrower for all purposes of this Section 6.12) or is a Subsidiary as of the Restatement Effective Date but is not a party to the Guaranty as of the Restatement Effective Date (other than Accelerant Distribution Holdings Limited, a Malta limited liability private exempt company, or Accelerant Malta Holdings Limited, a Malta limited liability private exempt company), the Borrower shall (x) promptly notify the Administrative Agent thereof and shall cause such Subsidiary to become a Guarantor under the Guaranty by executing and delivering to the Administrative Agent a joinder to the Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof and to become a "Credit Party" and a "Guarantor" for purposes of the Loan Documents and (y) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates (including legal opinions) reasonably requested by Administrative Agent in connection with such joinder, including any information required pursuant to Section 10.18.

Section 6.13 **<u>Further Assurances</u>**

The Borrower will, and will cause each Subsidiary to, at the reasonable request of the Administrative Agent, execute and deliver any and all further documents, financing statements, agreements and instruments, and take all such further actions, that may be required under any applicable Law or as may be reasonably required to carry out the provisions of this Agreement and the other Loan Documents and give effect to the transactions contemplated hereby and thereby.

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**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

Section 7.01 **<u>Indebtedness</u>**

The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Debt, other than the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Debt under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Debt outstanding on the date hereof and listed on Schedule 7.01 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that the amount of such Debt is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Guarantees by (A) any Subsidiary in respect of Debt of the Borrower or (B) the Borrower or any Subsidiary of Debt of any Subsidiary, in each case if such Debt is otherwise permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Operating Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Debt of the Borrower or any Subsidiary in respect of Capital Leases and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.02(viii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Debt of any Person that becomes a Subsidiary after the date hereof; <u>provided</u> that (A) such Debt exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (B) after giving effect to such Person becoming a Subsidiary on a pro-forma basis, (1) no Default or Event of Default shall have occurred and be continuing and (2) the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) obligations of the Borrower or any Subsidiary to maintain the capital or solvency of any of its Subsidiaries in accordance with the requirements of or under any agreement with their respective Applicable Insurance Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Debt of (A) any Credit Party owing to any other Credit Party, (B) any Credit Party owing to any Subsidiary that is not a Credit Party if such Debt is expressly subordinated to the prior payment in full of the Obligations on terms reasonably acceptable to the Administrative Agent (<u>provided</u> that such subordination terms shall permit regularly scheduled payments of principal and interest if no Default or Event of Default has occurred and is continuing) and (C) any Subsidiary that is not a Credit Party owing to any Credit Party or another Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) obligations and liabilities (whether directly or as a guarantor) of the Borrower or Subsidiaries arising under or in connection with treasury, depositary, cash management, custodial, automated clearinghouse or transfer of funds services or arrangements or similar services and arrangements incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the incurrence of Debt by the Borrower or any Subsidiary under any Qualified Securitization Facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Debt of the Borrower or any Subsidiary not otherwise permitted under clauses (i) through (x) above; <u>provided</u> that (i) both immediately prior to, and immediately after giving effect to, the incurrence of such Debt on a pro forma basis, (A) no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall be in compliance with the covenants in Section 7.11, (ii) if, on the date any Debt is incurred in reliance on this Section 7.01(xi), after giving effect thereto and the use of proceeds thereof, the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, is greater than 25%, a portion of the Net Proceeds from the incurrence of such Debt shall be applied to prepay the Loans as set forth in Section 2.03(b)(ii) such that, after giving effect to such prepayment, the Consolidated Total Debt to Capitalization Ratio (determined as provided above) is less than or equal to 25% and (iii)(A) the final maturity date of any Debt incurred in reliance on this Section 7.01(xi) shall be no earlier than the Maturity Date and (B) the Weighted Average Life to Maturity of any Debt incurred in reliance on this Section 7.01(xi) shall be no shorter than the Weighted Average Life to Maturity of the Loans at such time (which, in the case of customary "bridge" loans, shall be determined by reference to the notes or loans into which such bridge loans are, by their terms, converted or for which such bridge loans may be, by their terms, exchanged at maturity); <u>provided</u>, <u>further</u>, with respect to any such Person, the amount of any commitments to make loans or extend credit on a revolving basis (or delayed draw basis) to such Person that has been designated by the Borrower in writing to the Administrative Agent as "Designated Revolving Commitments," until such time as the Borrower subsequently provides notice to the Administrative Agent to the effect that such commitments will no longer constitute "Designated Revolving Commitments": (1) such Designated Revolving Commitments will be deemed an incurrence of Debt and fully utilized and outstanding on such date for purposes of calculating the Consolidated Total Debt to Capitalization Ratio under this clause (xi), (2) unless the Borrower provided notice to the Administrative Agent to the effect that such revolving (or delayed draw) commitments no longer constitute "Designated Revolving Commitments", such Designated Revolving Commitments will be deemed to be fully utilized and outstanding for the purposes of calculating the Consolidated Total Debt to Capitalization Ratio in connection with the incurrence of any other Debt after such date in reliance on this clause (xi) and (3) commencing on the date such Designated Revolving Commitments are established, after giving pro forma effect to the incurrence of the entire committed amount

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of the Debt thereunder, such committed amount under such Designated Revolving Commitments may thereafter be borrowed (and reborrowed, if applicable), in whole or in part, from time to time, without further compliance with either clause (1) or (2) of this proviso; <u>provided</u> that the sum of (x) the aggregate principal amount of Unsubordinated Debt, plus (y) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to Section 7.02(xxix) shall at no time exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

Section 7.02 **<u>Liens</u>**

The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens existing on the date hereof and listed on Schedule 7.02 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that (A) the property covered thereby is not changed and (B) the Debt secured or benefited thereby is not increased except by (1) by the utilization of any existing commitments thereunder, (2) accrued and unpaid interest and premiums thereon and (3) underwriting discounts or other amount paid, and fees, commissions, premiums (including tender premiums) and expenses (including upfront fees, original issue discount or initial yield payments) incurred, in connection with any such refinancing, refunding, renewal or extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Liens for Taxes not yet overdue or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) pledges or deposits in the ordinary course of business in connection with workers' compensation, unemployment insurance and other social security legislation and securing letters of credit, bank guarantees or similar instruments issued supporting such items;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) deposits to secure the performance of bids, tenders, contracts, leases (other than Debt), statutory obligations, bank guarantees or similar instruments, surety and appeal bonds, letters of credit, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) easements, zoning restrictions, rights-of-way, restrictions and other similar encumbrances affecting real property which do not materially interfere with the ordinary conduct of the business of the applicable Person;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Liens arising pursuant to an order of attachment, distraint or similar legal process in connection with legal proceedings and securing judgments for the payment of money and Liens arising under ERISA or the Code with respect to a Plan not constituting an Event of Default under Section 8.01(h) or Section 8.01(i), respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Liens on the property of the Borrower or any Subsidiary securing (A) any part of the cost of acquisition, development, construction, alteration, repair or improvement of such property or Debt incurred to finance any of the foregoing (including any sale and leaseback transaction), (B) Capital Leases and (C) any extension, renewal, refinancing or replacement of the Debt or obligations secured by any such Lien referred to in clauses (A) and (B); <u>provided</u> that (x) such Liens do not at any time encumber any property other than the property financed by such Debt and the proceeds and products thereof, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided to the Borrower or any Subsidiary by any Person may be cross-collateralized to other financings of such type provided by such Person or its Affiliates) and (y) in the case of clause (A) the Debt secured thereby is either Non-Recourse Debt with respect to the Borrower and its Subsidiaries or does not exceed the cost of the property being acquired, developed, constructed, altered, repaired or improved or initial financing thereof, plus the costs incurred for delivery installation, maintenance programs and items similar to the foregoing and, fees, costs and expenses incurred in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; <u>provided</u> that (A) such Lien is not created in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (B) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary other than proceeds and products of the property covered by such Lien, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided by any Person may be cross-collateralized to other financings of such type provided by such Person or its affiliates) and (C) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof other than by an amount equal to accrued and unpaid interest, premiums (including tender premiums thereon), plus underwriting discounts or other amount paid, and fees, commissions and expenses (including upfront fees, original issue discount or initial yield payments) incurred in connection with any such extension, renewal or replacement and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Liens to secure obligations arising under Swap Contracts, to the extent permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Liens arising out of deposits or pledges by any Subsidiary of cash, securities, portfolio investments or other property into collateral trusts, reinsurance trusts or other collateral or escrow accounts with or for the benefit of ceding companies or insurance regulators of such Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Liens securing Debt arising under Permitted Repo and Securities Lending Agreements; <u>provided</u> that no such Lien shall extend to or cover any property or assets other than the securities subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) leases, subleases, licenses and sublicenses granted to others and not interfering in any material respect with the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Liens arising from Uniform Commercial Code financing statements filed with respect to Operating Leases, and consignments and/or bailments arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) (A) Liens arising from pledges or deposits of cash, securities or portfolio investments made by any Subsidiary that is a Regulated Insurance Company (x) as a condition to obtaining or maintaining any licenses issued to it by any Applicable Insurance Regulatory Authority or (y) as otherwise required to comply with the requirement of applicable insurance Laws, or (B) Liens, in case of a Regulated Insurance Company organized under Maltese laws, arising from operation of Law, in respect of its liability from its insurance business, including insurance claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) Liens on assets pledged, deposited into an account or trust or otherwise allocated as a separate account in connection with, and securing or specifically available to satisfy obligations under, a Policy, Reinsurance Agreement or Retrocession Agreement, in an amount reasonable and as required under the terms of such Policy, Reinsurance Agreement or Retrocession Agreement (or the documentation related thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) Liens securing Debt permitted under Section 7.01(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) rights of setoff or banker's Liens on deposits of cash in favor of banks or other depository institutions maintained in the ordinary course of business, but not securing any Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) Liens arising in the ordinary course of business on custody, securities or commodities accounts in favor of the entity at which such accounts are maintained, but not securing any Debt for borrowed money other than Debt incurred in connection with or to facilitate the settlement of the purchase or sale of securities in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) Liens of a collecting bank arising under Section 4-208 of the Uniform Commercial Code on items in the course of collection in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) Liens incurred in connection with the collection or disposition of delinquent accounts receivable in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) Liens on any cash earnest money deposit made by the Borrower or any Subsidiary in connection with any letter of intent or acquisition agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) any Lien in favor of any Credit Party securing intercompany obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) Liens that are contractual rights of setoff incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) Liens securing the Obligations in favor of the holders of all such Obligations ratably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) Liens on Securitization Assets incurred in connection with a Qualified Securitization Facility, including Liens on such receivables resulting from precautionary Uniform Commercial Code filings or from re-characterization or any such sale as a financing or a loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) Liens on assets of the Borrower and its Subsidiaries not otherwise permitted above; <u>provided</u> that the sum of (x) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to this clause (xxix), plus (y) the aggregate principal amount of Unsubordinated Debt shall not exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

Section 7.03 **<u>Investments</u>**

The Borrower will not, and will not permit any Subsidiary to, make any Investment in any Person that is not (or that upon consummation of such Investment will not be) a direct or indirect Subsidiary of the Borrower, unless, at the time of making such Investment, after giving pro forma effect thereto: (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower.

Section 7.04 **<u>Non-OC Asset Sales and Non-OC Reinsurance Transactions</u>**

The Borrower will not, and will not permit any Subsidiary to, make any Non-OC Asset Sale or Non-OC Reinsurance Transaction, other than any Non-OC Asset Sale or Non-OC Reinsurance Transaction for fair market value (determined in good faith by the Borrower) and for which at least 75% of the consideration shall be in the form of (x) cash or cash equivalents and/or (y) assets useful in the business of the Borrower or any Subsidiary.

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Section 7.05 **<u>Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries</u>**

The Borrower will not, and will not permit any Subsidiary to (x) merge, amalgamate, dissolve, liquidate, consolidate with or into another Person or (y) Dispose of (whether in one transaction or in a series of transactions) (1) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person (other than the replacement of assets in its investment portfolio), other than (A) any sale of Securitization Assets or related assets in connection with any Qualified Securitization Facility or (B) any Disposition of an account receivable in connection with the collection or compromise thereof in the ordinary course of business or consistent with industry practice or in bankruptcy or similar proceedings or (2) all or substantially all of the Equity Interests of any Material Subsidiary, except that, if no Default has occurred and is continuing or would result therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower or Subsidiary may merge or amalgamate with any one or more Subsidiaries (including a merger or amalgamation, the purpose of which is to reorganize the Borrower or such Subsidiary in a new jurisdiction in accordance with Section 7.05(vi)); <u>provided</u> that (A) when the Borrower is merging or amalgamating with any of its Subsidiaries, the Borrower shall be the continuing or surviving Person; and (B) when a Credit Party is merging or amalgamating with a Subsidiary that is not a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or Subsidiary may merge, amalgamate or consolidate with any Person to consummate an Investment not prohibited by this Agreement; <u>provided</u> that (A) in the case of a merger, amalgamation or consolidation of the Borrower, the Borrower shall be the continuing or surviving Person; and (B) in the case of a merger, amalgamation or consolidation involving a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or dissolution or otherwise) to any other Subsidiary; <u>provided</u> that, if the transferor in such a transaction is a Credit Party, (A) the transferee either (x) shall be the Borrower or (y) shall be (or shall be designated by the Borrower as) another Credit Party and (B) in the case of the Disposition of Equity Interests of a Subsidiary, such Equity Interests may be Disposed of in accordance with Section 7.05(iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to compliance with Section 6.12, the Borrower or Subsidiary may Dispose of the Equity Interests of a Subsidiary to another Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Subsidiary may liquidate or dissolve (and Dispose of its assets in respect of its Equity Interests in connection therewith) if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower or a Subsidiary may change its legal form or jurisdiction of incorporation or formation, including by conversion or merger, if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders; <u>provided</u> that, in the case of such change of legal form of (A) the Borrower, the continuing entity shall remain the Borrower; and (B) a Guarantor, the continuing entity shall remain (or shall become) a Guarantor;

<u>provided</u> that, for the avoidance of doubt, nothing in this Section 7.05 shall be deemed to limit, prohibit or restrict the Borrower or any Subsidiary from entering into, amending or modifying any Policy, any Reinsurance Agreement or any Retrocession Agreement or providing collateral security to the extent permitted by Section 7.02(xvii).

Section 7.06 **<u>Restricted Payments</u>**

The Borrower will not, and will not permit any Subsidiary to, declare or make any Restricted Payment, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Subsidiary may declare and make Restricted Payments to any Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of such Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower and each Subsidiary may declare and make Restricted Payments payable solely in common Equity Interests of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Subsidiary may declare and make Restricted Payments to (x) the Borrower or (y) any other Subsidiary which is a direct or indirect parent company of such Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new common Equity Interests if after giving effect to such Restricted Payment on a pro-forma basis no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower may (and any Subsidiary may make RestrictedPayments as shall be required for the Borrower to) make Restricted Payments in an amount sufficient to allow (x) the Borrower to pay fees, expenses and indemnities pursuant to the Management Agreement (as in effect on the Restatement Effective Date), so long as, solely with respect to the payment of such fees, no Default or Event of Default shall have occurred and be continuing (it being understood that, for so long as any Default or Event of Default has occurred and is continuing, such fees may continue to accrue and any such accrued fees may be paid upon any and all Defaults and Events of Default ceasing to exist), and (y) to pay general corporate operating and overhead costs and expenses (other than taxes) incurred by the Borrower in the ordinary course of business, to the extent attributable to the ownership or operation of the Borrower and its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower and each Subsidiary may declare and make any Restricted Payments after the date hereof in an amount not to exceed $6,000,000 in the aggregate in any calendar year (with unused amounts in any calendar year being permitted to be carried over and made in any succeeding calendar year), in each case if after giving effect to any such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment and (2) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Borrower and any Subsidiary may declare and make any Restricted Payment if after giving effect to such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment, (2) the Borrower is in compliance with the covenants set forth in Section 7.11 and (3) the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, shall be no greater than 15%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) after a Qualified IPO, the Borrower and each Subsidiary may declare and make any Restricted Payments in an aggregate amount in any consecutive twelve (12) month period, not to exceed 6.0% of Market Capitalization if after giving effect to such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment and (2) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

This Section 7.06 shall not prohibit the payment of a Restricted Payment if such Restricted Payment is made within 60 days of the declaration thereof <u>provided</u> such Restricted Payment was not prohibited by this Section 7.06 at the time of its declaration.

Section 7.07 **<u>Transactions with Affiliates</u>**

The Borrower will not, and will not permit any Subsidiary to, enter into any transaction with any Affiliate of the Borrower or any Subsidiary involving payment of consideration in excess of the greater of (i) $2,400,000 and (ii) 2.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, other than any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transactions not materially less favorable to the Borrower or any Subsidiary than would be obtained in a comparable arm's-length transaction with a Person that is not an Affiliate of the Borrower taking into account the totality of the relationships between the parties involved (including other transactions that may be or have been particularly favorable or advantageous to the Borrower and its Subsidiaries) as determined by the Borrower in good faith;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) insurance transactions, intercompany pooling and other reinsurance transactions entered into in the ordinary course of business, including any Reinsurance Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) transactions (x) between or among the Borrower and its Subsidiaries, (y) between or among Subsidiaries and (z) between or among any of the foregoing and their respective Affiliates, in each case, that are not otherwise prohibited hereunder and, in the case of clause (z), so long as such transactions are upon fair and reasonable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Restricted Payment permitted by Section 7.06;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) arrangements for indemnification payments for directors and officers of the Borrower and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) intercompany transactions between or among the Borrower and its Subsidiaries and between or among Subsidiaries, relating to the (A) provision of management services and other corporate overhead services, (B) provision of personnel to other locations within the Borrower's consolidated group on a temporary basis and (C) provision, purchase or lease of services, operational support, assets, equipment, data, information and technology, that, in the case of any such intercompany transaction referred to in this clause (vi), are subject to reasonable reimbursement or cost-sharing arrangements (as determined in good faith by the Borrower), which reimbursement or cost-sharing arrangements may be effected through transfers of cash or other assets or through book-entry credits or debits made on the ledgers of each involved Subsidiary; <u>provided</u> that any such intercompany transaction is either (x) entered into in the ordinary course of business or (y) otherwise entered into pursuant to the reasonable requirements of the business of the Borrower and the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements and other compensation arrangements, options to purchase Equity Interests of the Borrower or the Subsidiaries pursuant to restricted stock plans, long-term incentive plans, stock appreciation rights plans, participation plans or similar employee benefits plans, pension plans or similar plans or agreements or arrangements approved by the Board of Directors or the investment committee (or other applicable committee) of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) loans or advances to employees, officers or directors of the Borrower or any Subsidiary (or any direct or indirect parent of the Borrower) in the ordinary course of business, in an aggregate amount outstanding at any time not in excess of $240,000 (without giving effect to the forgiveness of any such loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the payment of reasonable and customary compensation (including fees, benefits, severance, change of control payments and incentive arrangements) to, and employee benefit arrangements, including split-dollar insurance policies, and indemnity or similar arrangements provided on behalf of, directors, officers, employees and agents of the Borrower or the Subsidiaries (or any direct or indirect parent of the Borrower) whether by charter, bylaw, statutory or contractual provisions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the existence of, and the performance of obligations of the Borrower or the Subsidiaries under the terms of any agreement to which the Borrower or any Subsidiary is a party as of or on the Restatement Effective Date set forth on Schedule 7.07, as these agreements may be amended, modified, supplemented, extended or renewed from time to time; <u>provided</u> that any future amendment, modification, supplement, extension or renewal entered into after the Restatement Effective Date shall be permitted to the extent that its terms, taken as a whole, are not more disadvantageous to the Lenders in any material respect, as determined in good faith by the Borrower or such Subsidiary, than the terms of the agreements in effect on the Restatement Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any agreement between any Person and an Affiliate of such Person existing at the time such Person is acquired by or merged with or into or consolidated with the Borrower or any Subsidiary; <u>provided</u> that such agreement was not entered into in contemplation of such acquisition, merger or consolidation, or any amendment thereto (so long as any such amendment is not disadvantageous in any material respect to the Lenders, as determined in good faith by the Borrower or such Subsidiary, when taken as a whole as compared to the applicable agreement as in effect on the date of such acquisition or merger);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any purchases by the Borrower's Affiliates of Debt of the Borrower or any of its Subsidiaries (other than the Loans) the majority of which Debt is placed with Persons who are not Affiliates and payments of principal and interest on such Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any issuance or sale of Equity Interests (other than Disqualified Equity Interests) to Affiliates of the Borrower and the granting of registration and other customary rights in connection therewith or any contribution to the Equity Interests of the Borrower or any Subsidiary that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) transactions in which the Borrower or any Subsidiary, as the case may be, delivers to the Administrative Agent a letter from an independent financial advisor stating that such transaction is fair to the Borrower or such Subsidiary from a financial point of view or stating that the terms are not materially less favorable taken as a whole than those that might reasonably have been obtained by the Borrower or such Subsidiary in a comparable transaction at such time on an arms' length basis from a Person that is not an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) any transaction with an Affiliate where the only consideration paid by the Borrower or any Subsidiary is Equity Interests of the Borrower or such Subsidiary (other than Disqualified Equity Interests) that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the payment of all fees and expenses in connection with the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) any merger, consolidation or reorganization of the Borrower or any Subsidiary (otherwise permitted by this Agreement) with an Affiliate of the Borrower solely for the purpose of (x) forming or collapsing a holding company structure or (y) reincorporating the Borrower or such Subsidiary in a new jurisdiction; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) transactions between the Borrower or any Subsidiary and any Person that is an Affiliate solely because one or more of its directors is also a director of the Borrower or such Subsidiary or any direct or indirect parent thereof; <u>provided</u> that such director abstains from voting as a director of the Borrower or such Subsidiary or any direct or indirect parent thereof, as the case may be, on any matter involving such other Person.

Section 7.08 **<u>Certain Restrictive Agreements</u>**

The Borrower will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that, directly or indirectly limits the ability of any Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer property to the Borrower; <u>provided</u> that the foregoing shall not apply to (i) [reserved], (ii) Contractual Obligations with a Governmental Authority, (iii) Contractual Obligations entered into by a joint venture with respect to which the Borrower or a Subsidiary is a joint venturer, (iv) customary limitations contained in agreements relating to the sale of a Subsidiary or its assets pending such sale; <u>provided</u> that such limitations apply only to the Subsidiary or such assets that is to be sold and such sale is permitted hereunder, (v) limitations imposed by any agreement relating to secured Debt permitted by this Agreement, any transaction giving rise to a Lien permitted by this Agreement or any Swap Contract, in each case if such limitations apply only to the property or assets securing or encumbered by such Debt, transaction (or obligation thereunder) or Swap Contract, (vi) limitations contained in or arising under indentures or debt instruments or other debt arrangements incurred or preferred stock issued by the Borrower or any Subsidiary subsequent to the date hereof in compliance with Section 7.01 that are not more restrictive, taken as a whole (as determined in good faith by the Borrower), than those applicable to the Borrower and the Subsidiaries in this Agreement, (vii) [reserved], (viii) limitations created in connection with any Qualified Securitization Facility that, in the good faith determination of the Board of Directors of the Borrower, are necessary or advisable to effect such Qualified Securitization Facility and (ix) any encumbrance, condition or restriction with respect to a Person or assets pursuant to an agreement in effect on or before the date on which such Person became a Subsidiary or was acquired by, merged into or consolidated with the Borrower or a Subsidiary or such assets were acquired by the Borrower or any Subsidiary; <u>provided</u> that any such encumbrance or restriction shall not extend to any Person or the assets or property of the Borrower or any other Subsidiary other than the Person and its Subsidiaries or the assets and property so acquired and that, in the case of Debt, was permitted to be incurred pursuant to this Agreement.

Section 7.09 **<u>Use of Proceeds</u>**

The Borrower will not, and will not permit any Subsidiary to, directly or, to the knowledge of the Borrower, indirectly, use the proceeds of any Borrowing, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U or Regulation X of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund Debt originally incurred for such purpose, in each case in violation of applicable margin regulations. The Borrower will not use (or permit any of its Subsidiaries to use) the proceeds of any Borrowing (i) in

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furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Embargoed Jurisdiction, in each case under this clause (ii) in violation of any Sanctions or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

Section 7.10 **<u>Change in Nature of Business, Organizational Documents and Fiscal Year</u>**

The Borrower will not, and will not permit any Subsidiary to, engage, directly or indirectly through its Subsidiaries, to any material extent in any business other than (i) the Insurance Business, (ii) any business engaged in by the Borrower or its Subsidiaries on or before the Restatement Effective Date or (iii) any business reasonably related or incidental thereto or which is financial in nature. The Borrower shall not, and shall not permit any Subsidiary to, amend or modify its respective Organizational Documents (x) if such amendment or modification would prohibit the Borrower from prepaying the Loans in accordance with Section 2.03(b) or (y) in a manner that is materially adverse (taken as a whole) to the interests of the Lenders, in their capacity as such. The Borrower shall not, and shall not permit any Subsidiary to, change the last day of its fiscal year from December 31 of each year without providing the Administrative Agent prior written notice.

Section 7.11 **<u>Financial Covenants</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Consolidated Net Worth</u>*. The Borrower shall not permit the Consolidated Net Worth, calculated as of the last day of any fiscal quarter of the Borrower and as reflected in the financial statements furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, to be less than the sum of (A) an amount equal to 75.0% of the Borrower's and its Subsidiaries' Consolidated Net Worth as of December 31, 2021, (B) an amount equal to 75% of the net cash proceeds contributed to the Borrower or any of its Subsidiaries (other than contributions of cash proceeds made by the Borrower or any of its Subsidiaries) from the issuance and sale of Specified Preferred Stock of the Borrower and any of its Subsidiaries after December 31, 2021 and on or prior to the Restatement Effective Date (other than the issuance to the Borrower or any other Subsidiary), (C) an amount equal to the sum of 50% of the Consolidated Net Income (to the extent positive) of the Borrower and its Subsidiaries for each fiscal quarter (without reduction for any Consolidated Net Income (to the extent negative) in any quarter), commencing with the fiscal quarter of the Borrower ending March 31, 2022 and (D) an amount equal to 50% of the net cash proceeds contributed to the Borrower or any of its Subsidiaries (other than contributions of cash proceeds made by the Borrower or any of its Subsidiaries) from the issuance and sale of Equity Interests (other than Specified Preferred Stock) of the Borrower and any of its Subsidiaries after December 31, 2021 (other than the issuance to the Borrower or any other Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Consolidated Total Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Total Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 40%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first fiscal quarter after the Restatement Effective Date).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Consolidated Senior Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Senior Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 35%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first fiscal quarter after the Restatement Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Interest Coverage Ratio</u>.* The Borrower shall not permit the Interest Coverage Ratio of the Borrower and its Subsidiaries to be less than 2.00:1.00 for the most recently ended four consecutive fiscal quarters of the Borrower for which financial statements have been delivered or furnished pursuant to Section 6.01(i) or Section 6.01(ii), as applicable (commencing with the last day of the first fiscal quarter after the Restatement Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Borrower Cure Right</u>*. Notwithstanding the foregoing, in the event that the Borrower shall have failed to comply with any of the financial covenants set forth in clauses (a), (b), (c) and (d) of this Section 7.11 in any fiscal quarter for which any such financial covenant is tested, the Borrower shall have the right (the "<u>Cure Right</u>") to, at any time after such failure occurs until the day on which financial statements of the Borrower are required to be delivered for such fiscal quarter or fiscal year, as applicable, issue for cash (or otherwise receive cash contributions in respect of) common capital stock (other than Disqualified Equity Interests) of the Borrower (the aggregate amount of such issuances and distributions, the "<u>Cure Amounts</u>"), and upon receipt by the Borrower of such Cure Amounts, compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period (and, in the case of compliance with Section 7.11(d), such period and any subsequent period that includes such period) shall be recalculated giving effect to the following pro forma adjustment: the Consolidated Net Worth and Consolidated Adjusted EBITDA shall be increased, solely for the purpose of determining compliance with Sections 7.11(a), (b), (c) and (d), by an amount equal to the applicable Cure Amounts, and the use of proceeds therefrom will be disregarded for all other purposes under this Agreement (including calculating Consolidated Net Worth and Consolidated Adjusted EBITDA for purposes of determining basket levels and other items governed by reference to Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio and Interest Coverage Ratio). If, after giving effect to the foregoing recalculations, the Borrower is in compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period, then the applicable breach of Sections 7.11(a), (b), (c) and/or (d) that had occurred shall be deemed cured for all purposes. The Cure Right shall not be exercised more than 4 times during the term of this Agreement, shall not be exercised more than 2 times during any consecutive period of four fiscal quarters of the Borrower, and shall, with respect to any applicable period, be no greater than the amount required for purposes of complying with Sections 7.11(a), (b), (c) and (d) with respect to such period. Neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans, terminate the Commitments or exercise any other remedy under the Loan Documents or applicable law on the basis of an Event of Default caused by the failure to comply with Sections 7.11(a), (b), (c) or (d) until after the Borrower's ability to cure has lapsed and Borrower has not exercised the Cure Right. The Borrower hereby agrees to amend this Agreement to remove this Section 7.11(e) (and all references to the Cure Right and Cure Amount) prior to the filing of this Agreement in connection with the initial public offering of the Borrower or any of its Subsidiaries.

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**ARTICLE VIII** 

**EVENTS OF DEFAULT AND REMEDIES** 

Section 8.01 **<u>Events of Default</u>**

Any of the following shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Non-Payment</u>*. The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall fail to pay any interest on any Loan, any fee or any other amount (other than an amount referred to in clause (a)(i) of this Section) payable under this Agreement or under any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five or more Business Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Representations and Warranties</u>*. Any representation or warranty made or deemed made by or on behalf of any Credit Party in or pursuant to this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Agreement or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Specific Covenants</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.03(i), 6.04(i) (with respect to such Credit Party's existence) and 6.04(ii) or in Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Other Defaults</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clauses (a), (b) or (c) of this Section or in Section 6.07 of this Agreement in respect of Debt or Swap Contracts in circumstances where the failure to pay or perform the same would not give rise to an Event of Default under clause (e) of this Section) and such failure shall continue unremedied for a period of 30 or more days after notice thereof by the Administrative Agent to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Cross-Default</u>*. The Borrower or any Subsidiary (other than any Securitization Subsidiary) shall (i) fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Debt (other than Debt under the Loan Documents) having an aggregate principal amount of more than the Threshold Amount in each case beyond the applicable grace period with respect thereto, if any; (ii) fail to observe or perform any other agreement or condition relating to any Debt having an aggregate principal amount of more than the Threshold Amount or contained in any instrument or

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agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Debt (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Debt in an aggregate principal amount of more than the Threshold Amount to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Debt in an aggregate principal amount of more than the Threshold Amount to be made, prior to its stated maturity; <u>provided</u> that this clause (e)(ii) shall not apply to (A) secured Debt that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Debt, if such sale or transfer is permitted or not restricted hereunder and such Debt is repaid when required under the documents providing for such Debt or to the mere declaration or exercise of redemption rights which declaration or exercise is at the sole option of the holder of such Debt and (B) any voluntary prepayment, redemption, repurchase, conversion or settlement with respect to any debt security pursuant to its terms; or (iii) fail to make when due one or more required payments under one or more Swap Contracts (as a result of the occurrence of an "Early Termination Date" (as defined in such Swap Contract)) arising from an "Event of Default" (as defined in such Swap Contract) with respect to which the Borrower or Subsidiary is a "Defaulting Party" (as defined in such Swap Contract), which payments are in an aggregate principal amount exceeding the Threshold Amount; <u>provided</u> that, if any failure to pay or perform described in the foregoing clauses (i), (ii) or (iii) shall be cured by the Borrower or Subsidiary (as applicable), or waived by the holders of such Debt, in each case prior to the exercise of any remedies under Section 8.02, then the Event of Default under this Section 8.01(e) by reason of such failure to pay or perform shall be deemed likewise to have been thereupon cured or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Insolvency Proceedings, Etc</u>.* The occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (A) liquidation, reorganization, rehabilitation or other relief in respect of the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or its respective debts, or of a substantial part of its respective assets, under any Debtor Relief Law now or hereafter in effect or (B) the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its respective assets, and, in any such case, such proceeding or petition shall continue undismissed or unstayed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall (A) voluntarily commence any proceeding or file any petition seeking liquidation, rehabilitation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (B) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (f)(i) of this Section, (C) apply for or consent to the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or for a substantial part of its assets, (D) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (E) make a general assignment for the benefit of creditors or (F) take any corporate action for the purpose of effecting any of the foregoing;

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<u>provided</u> that, for purposes of clarity, no merger, dissolution, liquidation, consolidation or disposition permitted or not restricted by Section 7.05 (other than a merger, dissolution, liquidation, consolidation or disposition under any Debtor Relief Laws) shall constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Inability to Pay Debts; Attachment</u>.* The Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall become unable, admit in writing its inability or fail generally to pay its debts as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Judgments</u>*. The entry against the Borrower or any Subsidiary (other than any Securitization Subsidiary) of (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and does not deny coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect, and, in either case, there is a period of 45 consecutive days during which such judgment or order remains unpaid, undischarged, unvacated, unbonded or unstayed pending appeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>ERISA</u>*. The occurrence of an ERISA Event which results in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Change of Control</u>*. There occurs any Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *<u>Invalidity of Loan Documents</u>*. Any material provision of any Loan Document, at any time after its execution and delivery, ceases to be in full force and effect; or any Credit Party or any other Person contests in writing the validity or enforceability of any provision of any Loan Document; or any Credit Party denies in writing that it has any or further liability or obligation under any Loan Document, or purports in writing to revoke, terminate or rescind any Loan Document, in each case for any reason other than as expressly permitted hereunder or thereunder or in satisfaction in full of all non-contingent Obligations.

Section 8.02 **<u>Remedies Upon Event of Default</u>**

If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) declare the obligation of each Lender to make extensions of the Loans to be terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) exercise on behalf of itself and the Lenders, all rights and remedies available to it and the Lenders under the Loan Documents;

<u>provided</u> that, upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, in each case without further act of the Administrative Agent or any Lender.

Section 8.03 **<u>Application of Funds</u>**

After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations shall, subject to the provisions of Section 2.11, be applied by the Administrative Agent in the following order:

FIRST, to payment of that portion of the Obligations constituting fees, indemnities and expenses (other than principal and interest but including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

SECOND, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;

THIRD, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them;

FOURTH, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and

LAST, the balance, if any, after all of the Obligations have been paid in full, to the Borrower or as otherwise required by Law.

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**ARTICLE IX** 

**ADMINISTRATIVE AGENT** 

Section 9.01 **<u>Appointment and Authority</u>**

Each of the Lenders hereby irrevocably appoints Bank of Montreal to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. Except to the extent expressly set forth in Section 9.06, the provisions of this Article IX are solely for the benefit of the Administrative Agent and the Lenders and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Document (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. Without limiting the foregoing, each Lender authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.

Section 9.02 **<u>Rights as a Lender</u>**

The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "<u>Lender</u>" or "<u>Lenders</u>" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any of the Borrower or its Subsidiaries or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 9.03 **<u>Exculpatory Provisions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers (and shall be fully protected in so refraining from acting), except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender; <u>provided</u> that the Administrative Agent shall not be required to take any action that, (x) in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Laws, (y) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification

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and is exculpated in a manner satisfactory to it from the Lenders with respect to such action or (z) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; <u>provided</u>, <u>further</u>, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Credit Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Credit Party to perform its obligations hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall be deemed not to have knowledge of any Default or the event or events that give or may give rise to any Default unless and until the Borrower or any Lender shall have given written notice thereof (stating that it is a "notice of default") to the Administrative Agent describing such Default and such event or events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty, representation or other information made or supplied in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or the adequacy, accuracy and/or completeness of the information contained therein, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing in this Agreement or any other Loan Document shall require the Administrative Agent or any of its Related Parties to carry out any "know your customer" or other checks in relation to any Person on behalf of any Lender, and each Lender confirms to the Administrative Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Administrative Agent or any of its Related Parties.

Section 9.04 **<u>Reliance by Administrative Agent</u>**

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless an officer of the Administrative Agent responsible for the transactions contemplated hereby shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made by or on behalf of any Credit Party in connection with this Agreement or any other Loan Document. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 10.06 and (ii) may rely on the Register to the extent set forth in Section 10.06(c).

Section 9.05 **<u>Delegation of Duties</u>**

The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

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Section 9.06 **<u>Resignation and Removal of Administrative Agent</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor Administrative Agent with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld); <u>provided</u> that no Ineligible Assignee may be appointed successor Administrative Agent without the written consent of the Borrower. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Resignation Effective Date</u>"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld). Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date. In the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment by the Resignation Effective Date, the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; <u>provided</u> that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. Prior to any retiring Administrative Agent's resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

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Section 9.07 **<u>Non-Reliance on Administrative Agent and Other Lenders</u>**

Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

Section 9.08 **<u>No Other Duties, Etc.</u>**

Anything herein to the contrary notwithstanding, neither BMO Capital Markets Corp. nor RBC Capital Markets, LLC shall not have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents in its capacity as a Joint Lead Arranger or a Joint Bookrunner, except in its capacity as the Administrative Agent or a Lender hereunder.

Section 9.09 **<u>Administrative Agent May File Proofs of Claim</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.06 and 10.04) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.06 and 10.04.

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Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

Section 9.10 **<u>Posting of Communications</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders by posting the Communications on IntraLinks<sup>TM</sup>, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the "<u>Approved Electronic Platform</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Restatement Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED "AS IS" AND "AS AVAILABLE". THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, "<u>APPLICABLE PARTIES</u>") HAVE ANY LIABILITY TO ANY CREDIT PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE ADMINISTRATIVE AGENT'S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.

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"<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent or any Lender by means of electronic communications pursuant to this Section 9.10, including through an Approved Electronic Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender's email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the Lenders and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent's generally applicable document retention procedures and policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

Section 9.11 **<u>Certain ERISA Matters</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that at least one of the following is and will continue to be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans or the Commitments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 9623 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of sub-section (a) of Part I of PTE 84-14 are satisfied, and will continue to be satisfied, with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) such Lender has not provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that none of the Administrative Agent or any Arranger is a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

Section 9.12 **<u>Erroneous Payments</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent (x) notifies a Lender, or any Person who has received funds on behalf of a Lender (any such Lender or other recipient (and each of their respective successors and assigns), a "<u>Payment Recipient</u>") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender or other Payment Recipient on its behalf) (any such funds, whether transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent pending its return or repayment as contemplated below in this Section 9.12 and held in trust for the benefit of the Administrative Agent, and such Lender shall (or, with respect to any Payment Recipient

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who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting immediately preceding clause (a), each Lender or any Person who has received funds on behalf of a Lender (and each of their respective successors and assigns), agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 9.12(b).

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this Section 9.12(b) shall not have any effect on a Payment Recipient's obligations pursuant to Section 9.12(a) or on whether or not an Erroneous Payment has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender under any Loan Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under immediately preceding clause (a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with immediately preceding clause (a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "<u>Erroneous Payment Return Deficiency</u>"), upon the Administrative Agent's notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "<u>Erroneous Payment Impacted Class</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>Erroneous Payment Deficiency Assignment</u>") (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent (but the failure of such Person to deliver any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender, (D) the Administrative Agent and the Borrower shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Administrative Agent will reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to Section 10.06 (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrower or otherwise)), the Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Loans acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Loans are then owned by the Administrative Agent) and (y) may, in the sole discretion of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such Lender) under the Loan Documents with respect to such amount (the "<u>Erroneous Payment Subrogation Rights</u>") (<u>provided</u> that the Credit Parties' Obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such Obligations in respect of Loans that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party; <u>provided</u> that this Section 9.12 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of the Borrower relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; <u>provided</u>, <u>further</u>, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's obligations, agreements and waivers under this Section 9.12 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

**ARTICLE X** 

**MISCELLANEOUS** 

Section 10.01 **<u>Amendments, Etc.</u>**

No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific

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instance and for the specific purpose for which given; <u>provided</u> that (x) the Administrative Agent and the Borrower may amend, modify or supplement this Agreement and any other Loan Document (1) to cure any ambiguity, omission, typographical error, mistake, defect or inconsistency if such amendment, modification or supplement does not adversely affect the rights of the Administrative Agent or any Lender, to comply with local law or the advice of local counsel, (2) to cause one or more Loan Documents to be consistent with other Loan Documents or (3) to implement the amendment referenced in the last sentence of Section 7.11(e) and (y) no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) waive any condition set forth in Section 4.01 without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) extend or increase the Commitment of any Lender without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) postpone any date fixed by this Agreement or any other Loan Document for any payment (but not any prepayment) of principal as set forth in Section 2.04, interest, fees or other amounts due to the Lenders (or any of them) without the written consent of each Lender directly affected thereby (it being understood that no amendment, modification or waiver of, or consent to departure from, any condition precedent, covenant, Default, Event of Default, waiver of default interest or mandatory prepayment shall constitute a postponement of any date scheduled for the payment of principal or interest or an extension of the final maturity of any Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce the principal of, or the rate of interest specified herein on, any Loan or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; <u>provided</u> that (A) any amendment to the financial covenant definitions, the financial ratios or any component thereof in this Agreement, in each case shall not constitute a reduction in the interest rates or the fees for purposes of this clause (iv) and (B) only the consent of the Required Lenders shall be required to amend the definition of "Default Rate" or to waive any obligation of the Borrower to pay interest at the Default Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) without the written consent of each Lender directly affected thereby, reduce the principal amount of, or extend the scheduled date of any amortization with respect to, any Loan, in each case as provided in Section 2.04(a) or 2.04(b) or change the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change the definition of "Applicable Percentage", Section 2.11, Section 8.03 or any other provision of this Agreement in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) change any provision of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all or substantially all of the aggregate value of the Guaranty, except as expressly permitted by the Loan Documents, without the written consent of each Lender;

and <u>provided further</u>, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document. Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, to the fullest extent permitted by applicable Laws, such Lender will not be entitled to vote in respect of amendments and waivers hereunder and the Commitment and the outstanding Loans of such Lender hereunder will not be taken into account in determining whether the Required Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of "Required Lenders" will automatically be deemed modified accordingly for the duration of such period); <u>provided</u> that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender.

Section 10.02 **<u>Notices; Effectiveness; Electronic Communication</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Notices Generally</u>*. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as expressly provided in Section 6.01 and subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower).

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Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Electronic Communications</u>*. Notices and other communications to the Lenders hereunder may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures approved by the Administrative Agent (including e-mail and Internet or intranet websites); <u>provided</u> that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Approved Electronic Platform shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the Approved Electronic Platform; <u>provided</u> that, for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Change of Address, Etc</u>.* The Borrower and the Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Approved Electronic Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender's compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the Approved Electronic Platform and that may contain material non-public information with respect to the Borrower or their securities for purposes of United States Federal or state securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Reliance by Administrative Agent and Lenders</u>*. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic or electronic Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent and the Lenders and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

Section 10.03 **<u>No Waiver; Cumulative Remedies; Enforcement</u>**

No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein <u>provided</u>, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Borrower shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 9.01 for the benefit of all the Lenders; <u>provided</u> that the foregoing shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.11), or (iii) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to the Borrower under any Debtor Relief Law; and <u>provided further</u> that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (A) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 9.01 and (B) in addition to the matters set forth in clauses (ii) and (iii) of the preceding proviso and subject to Section 2.11, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

Section 10.04 **<u>Expenses; Indemnity; Damage Waiver</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Costs and Expenses</u>*. The Borrower shall pay, subject to the occurrence of the Restatement Effective Date, (i) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent and the Agent-Related Persons (without duplication) (including the reasonable, documented and invoiced fees and disbursements of one firm of counsel for the Administrative Agent and the Agent-Related Persons, taken as a whole, and if necessary, of a single firm of local counsel in each applicable jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's

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prior consent), in connection with the syndication of the term loan facility provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof, and (ii) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent or any Lender in connection with the enforcement or protection of its rights under this Agreement and the other Loan Documents; <u>provided</u> that, pursuant to this clause (ii), the Borrower shall not be required to reimburse such out-of-pocket expenses of more than one firm of counsel to the Administrative Agent and the Lenders, taken as a whole (and if necessary, a single firm of local counsel to the Administrative Agent and the Lenders, taken as a whole, in each relevant jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions)) and, in the case of any actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected persons similarly situated taken as a whole) but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify the Administrative Agent, each Arranger, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including reasonable, documented and invoiced fees and disbursements of one firm of counsel to the Indemnitees taken as a whole and, if necessary, of a single firm of local counsel in each applicable jurisdiction for the Indemnitees taken as a whole (and, solely in the case of an actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to all affected Indemnitees, taken as a whole), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent), to which any such Indemnitee may become subject, arising out of, or in connection with the financing contemplated hereby or the use of proceeds thereof or any actual or prospective claim, litigation, investigation or proceeding (a "<u>Proceeding</u>") relating to any of the foregoing, regardless of whether any such Indemnitee is a party thereto and whether or not such Proceeding was brought by the Borrower, its affiliates or equity holders, creditors or any other third party; <u>provided</u> that the foregoing indemnity will not, as to any Indemnitee, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, nonappealable judgment of a court of competent jurisdiction to (x) have resulted from (i) the willful misconduct, bad faith or gross negligence of such Indemnitee or any of such Indemnitee's Related Party (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (ii) a material breach of the funding obligations under this Agreement or the other Loan Documents of such Indemnitee or any Related Parties of such Indemnitee acting at such Indemnitee's direction or successors of any of the foregoing (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (iii) any Proceeding that does not arise from any act or omission by the Borrower or any Subsidiaries and that is brought by any Indemnitee against any other Indemnitee (other than any claims against the Administrative Agent or the Arrangers in their capacity as such but subject to clauses (x)(i), (x)(ii) and (x)(iii) above) or (y) have resulted from any agreement governing any settlement effected without the Borrower's prior written consent (which consent shall not be unreasonably withheld or delayed) but if settled with the Borrower's written consent or if there is a final, nonappealable judgment in any such Proceeding, the Borrower agrees to indemnify and hold harmless each indemnified person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with, and to the

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extent required by, this Section 10.04(b). Each Indemnitee shall be obligated to refund and return any and all amounts paid by the Borrower (or on the Borrower's behalf) under this Section 10.04(b) to such Indemnitee to the extent such Indemnitee is not entitled to payment of such amounts in accordance with the terms of this Section 10.04(b). None of the Indemnitees or the Borrower shall be liable for any special, indirect, consequential or punitive damages in connection with this Agreement or the Loans (except to the extent of its indemnity or reimbursement obligations hereunder in respect of any losses, claims, damages, liabilities and expenses incurred or paid by an Indemnitee to a third party). This Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Reimbursement by Lenders</u>.* To the extent that the Borrower for any reason fails to pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party thereof (but without limiting the obligation of the Borrower under such subsection), each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) in its capacity as such, or against any Related Party thereof acting for the Administrative Agent (or any such sub-agent) in connection with such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Waiver of Consequential Damages, Etc</u>.* To the fullest extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Payments</u>.* All amounts due under this Section shall be payable not later than 10 Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Survival</u>.* The agreements in this Section 10.04 shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other Obligations.

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Section 10.05 **<u>Payments Set Aside</u>**

To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (i) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (ii) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. The obligations of the Lenders under clause (ii) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

Section 10.06 **<u>Successors and Assigns</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Successors and Assigns Generally</u>*. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Assignments by Lenders</u>.* Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); <u>provided</u> that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Minimum Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time owing to the assigning Lender or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (or the Commitments of such assigning Lender, to the extent such Commitments have not been terminated pursuant to Section 2.01), determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $1,000,000 or other than in $1,000,000 increments thereabove unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Proportionate Amounts</u>*. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Required Consents</u>*. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) and subsection (b)(v) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the written consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund and notice thereof is provided to the Administrative Agent and the Borrower; <u>provided</u> that the Borrower shall be deemed to have consented to any such assignment unless they shall object thereto by written notice to the Administrative Agent within ten Business Days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Assignment and Assumption</u>*. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; <u>provided</u> that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>No Assignment to Certain Persons</u>*. No such assignment shall be made (A) to the Borrower or any of the Borrower's Affiliates or Subsidiaries other than in accordance with Section 10.06(b)(vii), (B) to any Defaulting Lender or any of their respective subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), (C) to a natural person or (D) absent the written consent of the Borrower (which consent may be given or withheld

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at the Borrower's sole discretion), to any Person that was an Ineligible Assignee as of the applicable Trade Date. For the avoidance of doubt, with respect to any assignee that becomes an Ineligible Assignee after the Trade Date applicable to its assignment (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), (i) such assignee shall not retroactively be disqualified from having become a Lender pursuant to such assignment and (ii) such assignee will become an Ineligible Assignee in accordance with the definition thereof notwithstanding the consummation of such assignment and the execution by the Borrower of an Assignment and Assumption with respect to such assignee. Notwithstanding the foregoing, any assignment to an assignee that is or becomes an Ineligible Assignee (including any assignment in violation of clause (b)(v)(D)) shall not be void, but the provisions of paragraph (f) below shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Certain Additional Payments</u>*. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment will be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the written consent of the Borrower and the Administrative Agent, the applicable pro-rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro-rata share of all Loans and Commitments in accordance with its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder becomes effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest will be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u> that, except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Assignments to Affiliated Lenders</u>*. Notwithstanding anything to the contrary contained in this Section 10.06 or any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) assignments to the equity holders of the Borrower and their respective affiliates (other than the Borrower and its Subsidiaries) (each, an "<u>Affiliated Lender</u>") shall be permitted subject to the following limitations; <u>provided</u> that an Affiliated Lender that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities and that exercise independent discretion from the private equity business of Altamont (each, a "<u>Debt Fund Affiliate</u>"), will only be subject to the limitations set forth in clause (6):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Affiliated Lenders will not be permitted to (I) receive information provided solely to Lenders by the Administrative Agent or any Lender, (II) attend/participate in conference calls or meetings attended solely by the Lenders and the Administrative Agent, (III) make or bring (other than as a passive participant or recipient of its pro rata benefits of) any claim, in its capacity as a Lender, against the Administrative Agent (except with respect to any rights expressly retained by such Affiliated Lender under this Agreement and the other Loan Documents, which shall not be required to be waived) or (IV) receive advice of counsel to the Administrative Agent or any other Lender (other than counsel to Affiliated Lenders), or challenge the Administrative Agent's or any other Lender's attorney-client privilege;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for purposes of any amendment, waiver or modification of this Agreement or the other Loan Documents or any plan of reorganization or liquidation that in either case does not require the consent of each Lender or does not adversely affect such Affiliated Lender (in its capacity as a Lender) as compared to other Lenders, Loans held by Affiliated Lenders shall be excluded in the determination of any vote by the Required Lenders and shall be deemed not to be outstanding (or shall be deemed to have voted in the same proportion as non-affiliated Lenders voting on such matter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount of Loans under this Agreement purchased by Affiliated Lenders other than Debt Fund Affiliates may not exceed 25% of the outstanding principal amount of all Loans under this Agreement (after giving effect to such purchase);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any purchases by Affiliated Lenders shall require that such Affiliated Lender clearly identify itself as an Affiliated Lender in any Assignment and Assumption in connection with such purchases or sales and each such assignment and assumption shall contain a customary "big boy" representation but there shall be no requirement to make a representation as to the absence of any material non-public information;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Loans owned or held by Affiliated Lenders (i) shall be excluded in any determination of a vote by "Required Lenders" and (ii) shall be voted by the Administrative Agent in its discretion in connection with any plan or reorganization in an insolvency proceeding unless such plan affects the holder thereof, in its capacity as such, in a disproportionately adverse manner relative to the treatment of the other Lenders, in which case such Affiliated Lender will not be permitted to vote on matters submitted to Lenders for consideration (including in connection with any plan of reorganization) and their Loans shall be disregarded in determining other Lenders' Commitment and the Applicable Percentages; <u>provided</u> that (A)(i) the commitments or obligations of any Affiliated Lender shall not be increased, (ii) the due dates for payments of interest and scheduled amortization (including at maturity) of any Loans owed to any Affiliated Lender will not be extended and (iii) the amounts owing to any Affiliated Lender will not be reduced, in each instance in clauses (i) through (iii), without the consent of such Affiliated Lender, (B) Affiliated Lenders shall have the right to vote on any amendment, modification, waiver or consent that would require the vote of all Lenders or the vote of all Lenders directly and adversely affected thereby and (C) no amendment, modification, waiver or consent shall affect any Affiliated Lender (in its capacity as a Lender) in a manner that is disproportionate to the effect on any Lender of the same class or that would deprive such Affiliated Lender of its pro rata share of any payments to which it is entitled; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) for purposes of determining whether the Required Lenders have consented to any amendment or waiver under this Agreement or the other Loan Documents, the aggregate principal amount of Loans held by Debt Fund Affiliates will be excluded to the extent in excess of 49.9% of the amount required to constitute the "Required Lenders";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) so long as no Default or Event of Default has occurred and is continuing or would result therefrom, each Lender shall have the right at any time to sell, assign or transfer all or a portion of the Loans owing to it to the Borrower or its Subsidiaries on a non-pro rata basis (<u>provided</u> that each assignment shall be of a uniform, and not varying, percentage of all rights and obligations under and in respect of any applicable Loan), subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower may conduct one or more modified Dutch auctions (each, an "<u>Auction</u>") to repurchase all or any portion of the Loans; <u>provided</u> that (A) notice of the Auction shall be made to all Lenders and (B) the Auction shall be conducted pursuant to such procedures as the Auction Manager may establish which are consistent with this Section 10.06(b)(vii)(B) and the Auction Procedures set forth on Exhibit H and are otherwise reasonably acceptable to the Borrower, the Auction Manager and the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to all repurchases made by the Borrower pursuant to this Section 10.06(b)(vii)(B), (A) the Borrower shall deliver to the Administrative Agent and the Auction Manager a certificate of a Responsible Officer stating that (i) no Default or Event of Default has occurred and is continuing or would result from such repurchase and (ii) as of the launch date of the related Auction and the effective date of any Borrower Assignment and Acceptance, it is not in possession of any information regarding the Borrower or any of its Subsidiaries, the Borrower's ability to perform its Obligations or any other matter that may be material to a decision by any Lender to participate in any Auction or enter into any Borrower Assignment and Acceptance or any of the transactions contemplated thereby that has not previously been disclosed to the Administrative Agent, the Auction Manager and the non-Public Lenders and (B) the assigning Lender and the Borrower shall execute and deliver to the Administrative Agent and the Auction Manager a Borrower Assignment and Acceptance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Following repurchase by the Borrower or any Subsidiary pursuant to this Section 10.06(b)(vii)(B), the Loans so repurchased shall, without further action by any Person, be immediately and automatically cancelled for all purposes and no longer outstanding (and may not be resold by the Borrower), for all purposes of this Agreement and all other Loan Documents, including (A) the making of, or the application of, any payments to the Lenders under this Agreement or any other Loan Document, (B) the making of any request, demand, authorization, direction, notice, consent or waiver under this Agreement or any other Loan Document or (C) the determination of Required Lenders, or for any similar or related purpose, under this Agreement or any other Loan Document. In connection with the Loans repurchased and cancelled pursuant to this Section 10.06(b)(vii)(B), the Administrative Agent is authorized to make appropriate entries in the Register to reflect any such cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Register</u>.* The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Participations</u>.* Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person, a Defaulting Lender or the Borrower, any of the Borrower's Affiliates or Subsidiaries or an Ineligible Assignee) (each, a "<u>Participant</u>") in all or a portion of such Lender's

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rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt: (i) each Lender shall be responsible for the indemnity under Section 10.04(c) without regard to the existence of any participation; and (ii) with respect to any participant that becomes an Ineligible Assignee after the Trade Date applicable to its participation (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), such participant shall not retroactively be disqualified from having become a participant pursuant to the applicable participation agreement. Notwithstanding the foregoing, any participation to a participant that becomes an Ineligible Assignee shall be subject to the provisions of paragraph (f) below.

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clause (y) of the first proviso to Section 10.01 that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations therein, including the requirements under Section 3.01(g) (it being understood that the documentation required under Section 3.01(g) shall be delivered to the Lender who sells the participation)); <u>provided</u> that such Participant (A) agrees to be subject to the provisions of Sections 3.06 and 10.13 as if it were an assignee under subsection (b) of this Section and (B) shall not be entitled to receive any greater payment under Sections 3.01 or 3.04, with respect to any participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after such Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.06 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender; <u>provided</u> that such Participant agrees to be subject to Section 2.11 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any Commitment or Loan or any of its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Proposed Treasury Regulation Section 1.163-5(b). The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Certain Pledges</u>*. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) in accordance with applicable Laws to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Certain Provisions Pertinent to Ineligible Assignees</u>*. If any assignment is made to any Ineligible Assignee without the Borrower's prior consent in violation of paragraph (b)(v)(D) above, or if any Lender becomes an Ineligible Assignee after the Trade Date of the applicable assignment to such Lender, the Borrower may, at their sole expense and effort, upon notice to the applicable Ineligible Assignee and the Administrative Agent, require such Ineligible Assignee to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in this Section 10.06), all of its interest, rights and obligations under this Agreement and related Loan Documents to an Eligible Assignee that shall assume such obligations at a purchase price equal to the lesser of (x) the principal amount thereof and (y) the amount that such Ineligible Assignee paid to acquire such interests, rights and obligations, in each case, plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to such Ineligible Assignee hereunder and under the other Loan Documents; <u>provided</u> that (i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in 10.06(b) and (ii) such assignment does not conflict with applicable Laws.

Notwithstanding anything to the contrary contained in this Agreement, (i) Ineligible Assignees that are either Lenders or participants of Lenders will not (A) have any inspection rights or the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (B) attend or participate in meetings attended by the Lenders and the Administrative Agent or (C) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (ii)(A) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Ineligible Assignee (whether a direct Lender or a participant) will be deemed to have consented in the same proportion as the Lenders that are not Ineligible Assignees consented to such matter, and (B) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws ("<u>Plan of Reorganization</u>"), each Ineligible Assignee (whether a direct Lender or a participant) hereby agrees (1) not to vote on such Plan of Reorganization, (2) if such Ineligible Assignee does vote on such Plan of Reorganization notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Plan of Reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (3) not to contest any request by any party for a determination by the bankruptcy court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

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The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, (i) to post the list of Ineligible Assignees provided by the Borrower and any updates thereto from time to time (collectively, the "<u>Ineligible Institution List</u>")<u> </u>on the Approved Electronic Platform, including that portion of the Approved Electronic Platform that is designated "Public Side Information", and (ii) to provide the Ineligible Institution List to each Lender or Participant or prospective Lender or Participant requesting the same. The Administrative Agent shall not be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is an Ineligible Assignee or enforce compliance with the provisions relating to Ineligible Assignees or have any liability with respect to or arising out of any assignment or participation of Loans and commitments under this Agreement, or disclosure of confidential information, to any Ineligible Assignee.

Section 10.07 **<u>Treatment of Certain Information; Confidentiality</u>**

Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and its Affiliates' respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any administrative agency or regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by the order of any court, pending legal or judicial or administrative proceeding, or otherwise as required by applicable laws or regulations or by any subpoena, compulsory legal process or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same (or at least as restrictive) as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (B)(1) any direct, indirect, actual or prospective counterparty (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap, derivative or securitization or other similar transaction under which payments are to be made by reference or to any credit insurance provider in each case relating to the Borrower and its obligations, this Agreement or payments hereunder or (2) any credit insurance provider relating to the Borrower and its obligations, or (C) the CUSIP Service Bureau or any similar organization, (vii) to any rating agency, in consultation with the Borrower, (viii) with the written consent of the Borrower, (ix) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower, (x) for purposes of establishing a "due diligence" defense or (xi) pursuant to customary disclosure about the terms of the financing contemplated hereby in the ordinary course of business to market data collectors and similar service providers to the loan industry for league table purposes. For purposes of this Section, "<u>Information</u>" means all information received from the Borrower or any

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Subsidiaries relating to the Borrower or any Subsidiaries or any of their respective businesses, including the identity of Ineligible Assignees, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiaries; <u>provided</u> that in the case of information received from the Borrower or any Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Administrative Agent and the Lenders acknowledges that (i) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (ii) it has developed compliance procedures regarding the use of material non-public information and (iii) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities Laws.

Section 10.08 **<u>Right of Setoff</u>**

If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender to or for the credit or the account of the Borrower, excluding any custodial, trust or special reserve accounts, against any and all of the obligations of the Borrower, now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement but only at the time when such obligations are due and payable in accordance with the terms of this Agreement or any other Loan Document and although such obligations of the Borrower are owed to a branch, or office of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; <u>provided</u> that, in the event that any Defaulting Lender exercises any such right of setoff, (x) all amounts so set off will be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.11(a) and, pending such payment, will be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders and (y) the Defaulting Lender will provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender may have, but subject to Section 8.02. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

Section 10.09 **<u>Interest Rate Limitation</u>**

Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents (including interest paid at the Default Rate) shall not exceed the maximum rate of non-usurious interest permitted by applicable Law

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(the "<u>Maximum</u> <u>Rate</u>"). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (i) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

Section 10.10 **<u>Counterparts; Integration</u>**

This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means (*e.g.* "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

Section 10.11 **<u>Survival of Representations and Warranties</u>**

All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

Section 10.12 **<u>Severability</u>**

If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 10.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the extent not so limited.

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Section 10.13 **<u>Replacement of Lenders</u>**

If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06 or if any Lender is a Defaulting Lender or Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Default or Event of Default shall have occurred and be continuing on the date of such assignment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

Section 10.14 **<u>Governing Law; Jurisdiction; Etc.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>GOVERNING LAW</u>*. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>SUBMISSION TO JURISDICTION</u>*. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN (OR IF SUCH COURT LACKS SUBJECT MATTER JURISDICTION, THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY (AND ANY SUCH CLAIMS, CROSS-CLAIMS OR THIRD-PARTY CLAIMS BROUGHT AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES MAY ONLY) BE HEARD AND DETERMINED IN SUCH FEDERAL (TO THE EXTENT PERMITTED BY LAW) OR NEW YORK STATE COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST THE CREDIT PARTIES OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>WAIVER OF VENUE</u>*. (i) EACH OF THE ADMINISTRATIVE AGENTAND THE LENDERS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (ii) THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>SERVICE OF PROCESS</u>*. EACH OF THE PARTIES HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 10.15 **<u>Waiver of Jury Trial</u>**

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 10.16 **<u>No Advisory or Fiduciary Responsibility</u>**

In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (i)(A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Arrangers and the Lenders, are arm's-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)(A) the Administrative Agent, each of the Arrangers and each of the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) none of the Administrative Agent, any Arranger nor any Lender has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Administrative Agent, any Arranger nor any Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that they may have against the Administrative Agent, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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Section 10.17 **<u>Electronic Execution of Assignments and Certain Other Documents</u>**

The words "execution", "signed", "signature", and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 10.18 **<u>USA PATRIOT Act</u>**

Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>"), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Act.

Section 10.19 **<u>Judgment Currency</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Borrower hereunder and under the other Loan Documents to make payments in a specified currency (the "<u>Obligation Currency</u>") shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent or a Lender of the full amount of the Obligation Currency expressed to be payable to it under this Agreement or another Loan Document. If, for the purpose of obtaining or enforcing judgment against the Borrower in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the "<u>Judgment Currency</u>") an amount due in the Obligation Currency, the conversion shall be made, at the rate of exchange (as quoted by the Administrative Agent or if the Administrative Agent does not quote a rate of exchange on such currency, by a known dealer in such currency designated by the Administrative Agent) determined, in each case as of the Business Day immediately preceding the date on which the judgment is given (such Business Day being hereinafter referred to as the "<u>Judgment Currency Conversion Date</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrower covenants and agrees to pay, or cause to be paid, or remit, or cause to be remitted, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of determining any rate of exchange or currency equivalent for this Section 10.19, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency.

Section 10.20 **<u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>**

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

Section 10.21 **<u>Acknowledgment Regarding Any Supported QFCs</u>**

To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>" and each such QFC a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and

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Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered</u> <u>Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

Section 10.22 **<u>Existing Credit Agreement Amended and Restated; Consents to Amendments to Existing Loan Documents</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon satisfaction of the conditions precedent to the effectiveness of this Agreement on the Restatement Effective Date, (i) this Agreement shall amend and restate the Existing Credit Agreement in its entirety, (ii) the rights and obligations of the parties under the Existing Credit Agreement shall be subsumed within and be governed by this Agreement; <u>provided</u>, <u>however</u>, that (A) each of the "Loans" (as such term is defined in the Existing Credit Agreement) outstanding under the Existing Credit Agreement on the Restatement Effective Date shall remain outstanding hereunder (with the existing Interest Periods therefor) and shall constitute Continuing Restatement Euro Loans, Restatement Euro Loans and Loans hereunder and (B) all Obligations (as defined in the Existing Credit Agreement) of the Credit Parties (as defined in this Agreement) shall constitute continuing Obligations hereunder, and neither this Agreement nor any other Loan Document shall be deemed to evidence or result in a novation or repayment and reborrowing of such Obligations, and (iii) all references to the Existing Credit Agreement in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Credit Party, the Administrative Agent and each Lender hereby consents to the amendment and restatement of the Existing Guarantee Agreement (as defined in the Guaranty) effected by the Guaranty.

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**[Signature pages follow]** 

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

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| | |
|:---|:---|
| **<u>BORROWER:</u>** | **<u>BORROWER:</u>** |
| **ACCELERANT HOLDINGS** | **ACCELERANT HOLDINGS** |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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| | |
|:---|:---|
| **<u>GUARANTORS:</u>** | **<u>GUARANTORS:</u>** |
| **ACCELERANT HOLDINGS (CAYMAN) LTD.** | **ACCELERANT HOLDINGS (CAYMAN) LTD.** |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** | **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** |
|  By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT UNDERWRITING HOLDINGS LIMITED** | **ACCELERANT UNDERWRITING HOLDINGS LIMITED** |
|  By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT AGENCY (UK) LIMITED** | **ACCELERANT AGENCY (UK) LIMITED** |
|  By: | /s/ Anna Faulkner |
| Name: | Anna Faulkner |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT MALTA HOLDINGS LIMITED** | **ACCELERANT MALTA HOLDINGS LIMITED** |
|  By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS, INC.** | **ACCELERANT UNDERWRITING MANAGERS, INC.** |
|  By: | /s/ Jeffrey Lee Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Lee Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
|  By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
|  Title: | Director |

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| | |
|:---|:---|
|  **CORNICHE ACQUISITION CO. LTD.** | **CORNICHE ACQUISITION CO. LTD.** |
|  By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
|  Title: | Director |

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| | |
|:---|:---|
|  **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
|  By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
|  Title: | Director |

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| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED** | **ACCELERANT SERVICES UK LIMITED** |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee-Smith |
|  Title: | Director |

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| | |
|:---|:---|
|  **M2 ACQUISITION CO. LTD.** | **M2 ACQUISITION CO. LTD.** |
|  By: | /s/ Nancy Hasley |
|  Name: | Nancy Hasley |
|  Title: | Director |

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| | |
|:---|:---|
|  **ARB ACQUISITION CO. LTD.** | **ARB ACQUISITION CO. LTD.** |
|  By: | /s/ Nancy Hasley |
|  Name: | Nancy Hasley |
|  Title: | Director |

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| | |
|:---|:---|
|  **EVEREST RM ACQUISITION CO. LTD.** | **EVEREST RM ACQUISITION CO. LTD.** |
|  By: | /s/ Nancy Hasley |
|  Name: | Nancy Hasley |
|  Title: | Director |

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| | |
|:---|:---|
|  **SSR ACQUISITION CO. LTD.** | **SSR ACQUISITION CO. LTD.** |
|  By: | /s/ Christopher Lee-Smith |
|  Name: | Christopher Lee-Smith |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT AGENCY LIMITED** | **ACCELERANT AGENCY LIMITED** |
|  By: | /s/ Anna Faulkner |
|  Name: | Anna Faulker |
|  Title: | Director |

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| | |
|:---|:---|
|  **ACCELERANT HOLDINGS UK LTD.** | **ACCELERANT HOLDINGS UK LTD.** |
|  By: | /s/ Simon Jukes |
|  Name: | Simon Jukes |
|  Title: | Director |

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| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT</u>:** | **<u>ADMINISTRATIVE AGENT</u>:** |
|  **BANK OF MONTREAL**, as Administrative Agent | **BANK OF MONTREAL**, as Administrative Agent |
|  By: | /s/ Collin Wagner |
|  Name: | Collin Wagner |
|  Title: | Vice President |

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| | |
|:---|:---|
|  <u>**LENDERS**</u>: | <u>**LENDERS**</u>: |
|  BANK OF MONTREAL, as a Lender | BANK OF MONTREAL, as a Lender |
|  By: | /s/ Collin Wagner |
|  Name: | Collin Wagner |
|  Title: | Vice President |

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| | |
|:---|:---|
| **LLOYDS BANK PLC**, as Lender | **LLOYDS BANK PLC**, as Lender |
| By: | /s/ Lee Chester |
| Name: | Lee Chester |
| Title: | Associate Director |

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| | |
|:---|:---|
| **HSBC BANK PLC,** as a Lender | **HSBC BANK PLC,** as a Lender |
| By: | /s/ Christine So |
| Name: | Christine So |
| Title: | Relationship Director, NBFI |

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| | |
|:---|:---|
| **Royal Bank of Canada** , as Lender | **Royal Bank of Canada** , as Lender |
| By: | /s/ Kevin Bemben |
| Name: | Kevin Bemben |
| Title: | Authorized Signatory |

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## Exhibit 10.13

**Exhibit 10.13** 

***EXECUTION VERSION*** 

**FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT** 

**THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT** dated as of November 30, 2023 (this "<u>Amendment</u>"), is entered into among Accelerant Holdings, a Cayman Islands exempted company with registration number 381680 (the "<u>Borrower</u>"), each Guarantor party hereto, Bank of Montreal, as Administrative Agent, and each Lender party hereto.

**WHEREAS**, the Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to the Amended and Restated Credit Agreement dated as of May 10, 2022 (the "<u>Existing Credit</u> <u>Agreement</u>", and as amended, amended and restated, supplemented or otherwise modified from time to time, including by this Amendment, the "<u>Credit Agreement</u>"); and

**WHEREAS**, subject to the terms and conditions set forth herein, the Borrower, the Guarantor, the Administrative Agent and the Lenders party hereto have agreed to amend the Existing Credit Agreement as more specifically set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined</u><u> </u><u>Terms</u>. Except as otherwise provided herein, all capitalized undefined terms used in this Amendment (including, without limitation, in the introductory paragraph and the statement of purpose hereto) shall have the meanings assigned thereto in the Credit Agreement (including as amended by this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendments</u>. Each of the parties hereto hereby agrees that, on the Amendment Effective Date (as defined below), effective as of September 30, 2023, the Existing Credit Agreement is amended by deleting clause (a) of Section 7.11 (*Consolidated Net Worth*) of the Existing Credit Agreement in its entirety and substituting such clause with the following:

"(a) <u>Consolidated Net Worth</u>. The Borrower shall not permit the Consolidated Net Worth, calculated as of the last day of any fiscal quarter of the Borrower and as reflected in the financial statements furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, to be less than the sum of (A) an amount equal to 75.0% of the Borrower's and its Subsidiaries' Consolidated Net Worth as of September 30, 2023, (B) an amount equal to the sum of 50% of the Consolidated Net Income (to the extent positive) of the Borrower and its Subsidiaries for each fiscal quarter (without reduction for any Consolidated Net Income (to the extent negative) in any quarter), commencing with the fiscal quarter of the Borrower ending December 31, 2023 and (C) an amount equal to 50% of the net cash proceeds contributed to the Borrower or any of its Subsidiaries (other than contributions of cash proceeds made by the Borrower or any of its Subsidiaries) from the issuance and sale of Equity Interests(other than Specified Preferred Stock) of the Borrower and any of its Subsidiaries after September 30, 2023 (other than the issuance to the Borrower or any other Subsidiary)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Conditions to Effectiveness</u>. The Amendment shall be effective on the date (the "<u>Amendment Effective Date</u>") when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received counterparts of this Amendment executed by the Borrower, the Guarantors, and Lenders constituting Required Lenders (as defined in the Existing Credit Agreement); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Administrative Agent and the Lenders party hereto shall have received payment of all reasonable and documented out-of-pocket costs and expenses (including, without limitation, legal fees of the Administrative Agent and fees to the consenting Lenders due under Section 6 herein) incurred in connection with this Amendment or otherwise required to be paid under any Loan Document, to the extent invoiced to the Borrower no later than three Business Days prior to the Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Effect of the Agreement</u>. Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect. Except as expressly set forth herein, this Amendment shall not be deemed (a) to be a waiver of, or consent to, a modification of or amendment of, any other term or condition of the Credit Agreement or any other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, modified and/or restated from time to time, (c) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Borrower or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with respect to any such documents, (d) to be a novation of the Credit Agreement and the other Loan Documents or (e) to be a waiver of, or consent to or a modification or amendment of, any other term or condition of any other agreement by and among any Loan Party or Guarantor, on the one hand, and the Administrative Agent or any other Lender, on the other hand. References in the Credit Agreement to "this Amendment" (and indirect references such as "hereunder", "hereby", "herein", and "hereof") and in any Loan Document to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties/No Default</u>. By their execution hereof, each of the Borrower and each Guarantor hereby represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals from all Governmental Authorities to execute, deliver and perform its obligations under this Amendment and the other Loan Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by it of this Amendment has been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of its Organizational Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under (A) any Contractual Obligation to which it is a party or affecting it or its properties which would reasonably be expected to result in a Material Adverse Effect, (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which it any of its Subsidiaries or its property is subject which would reasonably be expected to result in a Material Adverse Effect or (C) any instrument governing any of its or its Subsidiaries Debt with an aggregate outstanding principal amount in excess of the Threshold Amount which would reasonably be expected to result in a Material Adverse Effect or (iii) violate any Law the effect of which would reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Amendment has been duly executed and delivered by the Borrower and each Guarantor. This Amendment constitutes a legal, valid and binding obligation of the Borrower and each Guarantor, enforceable against the Borrower and the Guarantors in accordance with its terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the date hereof, after giving effect to this Amendment, all representations and warranties by the Borrower and the Guarantors contained in the Credit Agreement and in any other Loan Document are true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of the date hereof, except to the extent that such representations or warranties expressly relate to an earlier date (in which event such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As of the date hereof, after giving effect to this Amendment, no Default or Event of Default has occurred or is continuing or would result from giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Fees</u>. As consideration for each of the Lender signatories hereto consenting to the amendments described herein, the Borrower agrees to pay to each Lender party hereto an amendment fee equal to 0.10% of the aggregate principal amount of Loans and Commitments held by such Lender as of the Amendment Effective Date. Such amendment fees shall be earned, due and payable in full on the Amendment Effective Date. All fees payable hereunder shall not be refundable for any reason whatsoever and shall not be subject to setoff, counterclaim or deduction of any kind. Each Lender reserves the right, in its sole discretion, to share all or any portion of the fees payable to it hereunder with any of its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Reaffirmations</u>. Each Guarantor (a) agrees that the transactions contemplated by this Amendment shall not limit or diminish the obligations of the Guarantor under, or release the Guarantor from any obligations under, the Credit Agreement or the Guaranty, (b) confirms and reaffirms its obligations under the Credit Agreement and the Guaranty and (c) agrees that the Guaranty remain in full force and effect and is hereby ratified and confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing</u><u> </u><u>Law</u>. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. Without limiting the general applicability of the foregoing and the terms of the other Loan Documents to this Amendment and the parties hereto, the terms of <u>Sections</u> <u>10.02(a)</u>, <u>10.02(b)</u>, <u>10.02(c)</u>, <u>10.12</u>, <u>10.14(b)</u> <u>10.14(c)</u>, <u>10.14(d)</u>, <u>10.15</u> and <u>10.17</u> of the Credit Agreement are incorporated herein by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Loan Document</u>. This Amendment shall constitute a "Loan Document" under and as defined in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Counterparts; Integration</u>. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means (e.g. "pdf" or "tif") shall be effective as delivery of a manually executed counterpart of this Amendment. This Amendment and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. The words "execution", "signed", "signature", and words of like import in or relating to this Amendment and/or any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Headings</u>. The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or any provisions hereof.

*[Signature Pages Follow]* 

------

**IN WITNESS WHEREOF**, the parties hereto have caused this Amendment to be duly executed and delivered by their duly authorized officers as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER:</u>** | **<u>BORROWER:</u>** |
| **ACCELERANT HOLDINGS** | **ACCELERANT HOLDINGS** |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **<u>GUARANTORS:</u>** | **<u>GUARANTORS:</u>** |
| **ACCELERANT HOLDINGS (CAYMAN) LTD.** | **ACCELERANT HOLDINGS (CAYMAN) LTD.** |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** | **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** |
|  By: | /s/ Christopher Lee Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT UNDERWRITING HOLDINGS LIMITED** | **ACCELERANT UNDERWRITING HOLDINGS LIMITED** |
|  By: | /s/ Samuel Gaynor |
|  Name: | Samuel Gaynor |
|  Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
|  By: | /s/ Jeffrey Lee Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | President |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
|  **ACCELERANT AGENCY (UK) LIMITED** | **ACCELERANT AGENCY (UK) LIMITED** |
|  By: | /s/ Christopher Lee Smith |
|  Name: | Christopher Lee Smith |
|  Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
|  **ACCELERANT MALTA HOLDINGS LIMITED** | **ACCELERANT MALTA HOLDINGS LIMITED** |
|  By: | /s/ Jeffrey Lee Radke |
|  Name: | Jeffrey Lee Radke |
|  Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS, INC.** | **ACCELERANT UNDERWRITING MANAGERS, INC.** |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **CORNICHE ACQUISITION CO. LTD.** | **CORNICHE ACQUISITION CO. LTD.** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED** | **ACCELERANT SERVICES UK LIMITED** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **M2 ACQUISITION CO. LTD.** | **M2 ACQUISITION CO. LTD.** |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ARB ACQUISITION CO. LTD.** | **ARB ACQUISITION CO. LTD.** |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **EVEREST RM ACQUISITION CO. LTD.** | **EVEREST RM ACQUISITION CO. LTD.** |
| By: | /s/ Nancy Hasley |
| Name: | Nancy Hasley |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **SSR ACQUISITION CO. LTD** | **SSR ACQUISITION CO. LTD** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT AGENCY LIMITED** | **ACCELERANT AGENCY LIMITED** |
| By: | /s/ Keith Harrison |
| Name: | Keith Harrison |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT HOLDINGS UK LTD** | **ACCELERANT HOLDINGS UK LTD** |
| By: | /s/ Simon Jukes |
| Name: | Simon Jukes |
| Title: | Director |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT:</u>** | **<u>ADMINISTRATIVE AGENT:</u>** |
| **BANK OF MONTREAL**, as Administrative Agent | **BANK OF MONTREAL**, as Administrative Agent |
|  By: | /s/ Collin Wagner |
|  Name: | Collin Wagner |
|  Title: | Vice President |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **<u>LENDERS:</u>** | **<u>LENDERS:</u>** |
| **BANK OF MONTREAL**, as a Lender | **BANK OF MONTREAL**, as a Lender |
|  By: | /s/ Collin Wagner |
|  Name: | Collin Wagner |
|  Title: | Vice President |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

------

---

| | |
|:---|:---|
| **ROYAL BANK OF CANADA**, as a Lender | **ROYAL BANK OF CANADA**, as a Lender |
| By: | /s/ Joseph Simoneau |
| Name: | Joseph Simoneau |
| Title: | Authorized Signatory |

---

[SIGNATURE PAGE TO FIRST AMENDMENT]

## Exhibit 10.14

**Exhibit 10.14** 

***EXECUTION VERSION***

**SECOND AMENDED AND RESTATED CREDIT AGREEMENT** 

**dated as of September 26, 2024** 

**among** 

**ACCELERANT HOLDINGS,** 

**as Borrower,** 

**THE GUARANTORS FROM TIME TO TIME PARTY HERETO,** 

**as Guarantors,** 

**THE LENDERS FROM TIME TO TIME PARTY HERETO** 

**and** 

**BANK OF MONTREAL,** 

**as Administrative Agent,** 

**BMO CAPITAL MARKETS CORP.,** 

**LLOYDS BANK PLC,** 

**HSBC BANK PLC,** 

**THE TORONTO-DOMINION BANK, NEW YORK BRANCH,** 

**WELLS FARGO SECURITIES, LLC** 

**and** 

**RBC CAPITAL MARKETS, LLC,** 

**as Joint Lead Arrangers and Joint Bookrunners** 

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  ARTICLE I. | DEFINITIONS AND ACCOUNTING TERMS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.01 | Defined Terms | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.02 | Other Interpretive Provisions | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.03 | Accounting Terms | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.04 | Rounding | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.05 | Times of Day | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.06 | Timing of Payment or Performance | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.07 | Rates | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.08 | Divisions | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.09 | [Reserved] | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.10 | Pro Forma Effect | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.11 | Limited Condition Investments | 47 |
|  ARTICLE II. | THE COMMITMENTS AND LOANS | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | Loans | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02 | Borrowings, Conversions and Continuations of Loans | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03 | Optional and Mandatory Prepayments | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04 | Repayment of the Loans | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.05 | Interest | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.06 | Fees | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.07 | Computation of Interest and Fees | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.08 | Evidence of Debt | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.09 | Payments Generally; Administrative Agent's Clawback | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Sharing of Payments by Lenders | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11 | Defaulting Lenders | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12 | Incremental Facilities | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13 | Termination or Reduction of Revolving Commitments | 65 |
|  ARTICLE III. | TAXES, YIELD PROTECTION AND ILLEGALITY | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | Taxes | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | Illegality | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03 | Inability to Determine Rates; Successor Rate | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04 | Increased Costs | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.05 | Compensation for Losses | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.06 | Mitigation Obligations; Replacement of Lenders | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.07 | Survival | 74 |
|  ARTICLE IV. | CONDITIONS PRECEDENT | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | Conditions to Effectiveness | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | Conditions to the Making of Loans | 76 |
|  ARTICLE V. | REPRESENTATIONS AND WARRANTIES | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | Existence, Qualification and Power | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | Authorization; No Contravention | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.03 | Execution and Delivery; Binding Effect | 77 |

---

i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.04 | Financial Statements; No Material Adverse Effect | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.05 | Litigation | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.06 | Property | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.07 | Taxes | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.08 | Disclosure | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.09 | Compliance with Laws | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.10 | ERISA Compliance | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.11 | Environmental Matters | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.12 | Margin Regulations; Federal Reserve Regulations; Use of Proceeds | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.13 | Investment Company Act | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.14 | Anti-Corruption Laws and Sanctions | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.15 | Solvency | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.16 | Beneficial Ownership Certification | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.17 | EEA Financial Institutions | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.18 | Insurance Licenses | 80 |
|  ARTICLE VI. | AFFIRMATIVE COVENANTS | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | Financial Statements and Statutory Statements | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | Certificates; Other Information | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03 | Notices | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04 | Preservation of Existence, Etc | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05 | Maintenance of Properties | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.06 | Maintenance of Insurance | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.07 | Payment of Obligations | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.08 | Compliance with Laws | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.09 | Books and Records | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10 | Inspection Rights | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11 | Use of Proceeds | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12 | Additional Guarantors | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.13 | Further Assurances | 86 |
|  ARTICLE VII. | NEGATIVE COVENANTS | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | Indebtedness | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | Liens | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | Investments | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04 | Non-OC Asset Sales and Non-OC Reinsurance Transactions | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05 | Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.06 | Restricted Payments | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.07 | Transactions with Affiliates | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.08 | Certain Restrictive Agreements | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.09 | Use of Proceeds | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.10 | Change in Nature of Business, Organizational Documents and Fiscal Year | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.11 | Financial Covenants | 99 |

---

ii

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| | | |
|:---|:---|:---|
|  ARTICLE VIII. | EVENTS OF DEFAULT AND REMEDIES | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | Events of Default | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | Remedies Upon Event of Default | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03 | Application of Funds | 103 |
|  ARTICLE IX. | ADMINISTRATIVE AGENT | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01 | Appointment and Authority | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02 | Rights as a Lender | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.03 | Exculpatory Provisions | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.04 | Reliance by Administrative Agent | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.05 | Delegation of Duties | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.06 | Resignation and Removal of Administrative Agent | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.07 | Non-Reliance on Administrative Agent and Other Lenders | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.08 | No Other Duties, Etc | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.09 | Administrative Agent May File Proofs of Claim | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.10 | Posting of Communications | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.11 | Certain ERISA Matters | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.12 | Erroneous Payments | 111 |
|  ARTICLE X. | MISCELLANEOUS | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01 | Amendments, Etc | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.02 | Notices; Effectiveness; Electronic Communication | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.03 | No Waiver; Cumulative Remedies; Enforcement | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.04 | Expenses; Indemnity; Damage Waiver | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.05 | Payments Set Aside | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.06 | Successors and Assigns | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.07 | Treatment of Certain Information; Confidentiality | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.08 | Right of Setoff | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.09 | Interest Rate Limitation | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10 | Counterparts; Integration | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11 | Survival of Representations and Warranties | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.12 | Severability | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.13 | Replacement of Lenders | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.14 | Governing Law; Jurisdiction; Etc | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.15 | Waiver of Jury Trial | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.16 | No Advisory or Fiduciary Responsibility | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.17 | Electronic Execution of Assignments and Certain Other Documents | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.18 | USA PATRIOT Act | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.19 | Judgment Currency | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.20 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.21 | Acknowledgment Regarding Any Supported QFCs | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.22 | Existing Credit Agreement Amended and Restated; Consents to Amendments to Existing Loan Documents | 137 |

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iii

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**Schedules:** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 2.01 - | Commitments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 7.01 - | Existing Debt |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 7.02 - | Existing Liens |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 7.07 - | Transactions with Affiliates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 10.02 | Administrative Agent's Office; Certain Addresses for Notices |

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**Exhibits:** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-1 | Form of Loan Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-2 | Form of Interest Election Request |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit B | Form of Note |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit C | Form of Compliance Certificate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit D | Form of Assignment and Assumption |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit E-1 | Form of U.S. Tax Compliance |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit E-2 | Form of U.S. Tax Compliance |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit E-3 | Form of U.S. Tax Compliance |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit E-4 | Form of U.S. Tax Compliance |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit F | Form of Guaranty |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit G | Form of Solvency Certificate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit H | Auction Procedures |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit I | Beneficial Ownership Certification |

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iv

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**SECOND AMENDED AND RESTATED CREDIT AGREEMENT** 

This SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "<u>Agreement</u>") is entered into as of September 26, 2024, among Accelerant Holdings, a Cayman Islands exempted company with registration number 381680 (the "<u>Borrower</u>"), each Guarantor from time to time party hereto, each Lender from time to time party hereto, and Bank of Montreal, as Administrative Agent.

The Borrower, the Administrative Agent, the Guarantors party thereto and the lenders party thereto entered into the Amended and Restated Credit Agreement dated as of May 11, 2022 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the "<u>Existing Credit Agreement</u>").

The Borrower wishes to, among other things, amend and restate the Existing Credit Agreement, and the Lenders are willing to amend and restate the Existing Credit Agreement. Accordingly, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

**ARTICLE I.** 

**DEFINITIONS AND ACCOUNTING TERMS** 

**Section 1.01 <u>Defined Terms</u>**. As used in this Agreement, the following terms shall have the meanings set forth below:

"<u>ABR</u>" means, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day <u>plus</u> 0.50% and (c) Adjusted Term SOFR for a one-month tenor in effect on such day, <u>plus</u> 1.00%. Any change in the ABR due to a change in the Prime Rate, the Federal Funds Rate or Adjusted Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Adjusted Term SOFR, respectively.

"<u>ABR Borrowing</u>" means, as to any Borrowing, the ABR Loans comprising such Borrowing.

"<u>ABR Loan</u>" means a Loan that bears interest based on the ABR.

"<u>Accounting Change</u>" has the meaning specified in Section 1.03(b).

"<u>Act</u>" has the meaning specified in Section 10.18.

"<u>Adjusted Term SOFR</u>" means, with respect to any Interest Period, the per annum rate equal to the sum of (i) Term SOFR plus (ii) 0.10% (10 basis points).

"<u>Administrative Agent</u>" means Bank of Montreal in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

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"<u>Administrative Agent's Office</u>" means the Administrative Agent's address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form acceptable to the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution*.*

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Affiliated Lender</u>" has the meaning specified in Section 10.06(b)(vii)(A).

"<u>Agent-Related Persons</u>" means, collectively, the Administrative Agent and the Arrangers, together with their respective Affiliates and the partners, officers, directors, employees, agents and advisors of such Persons and Affiliates.

"<u>Agreement</u>" means this Amended and Restated Credit Agreement.

"<u>All-In Yield</u>" means, with respect to any Indebtedness, the yield of such Indebtedness, whether in the form of interest rate, margin, original issue discount, upfront fees, index floors or otherwise, in each case payable by the Borrower generally to lenders, <u>provided</u> that original issue discount and upfront fees shall be equated to interest rate assuming a four-year life to maturity, and shall not include arrangement fees, structuring fees, ticking fees, commitment fees, unused line fees, underwriting fees and any amendment and similar fees (regardless of whether paid in whole or in part to the relevant lenders).

"<u>Altamont</u>" means Altamont Capital Management, LLC and any of its Controlled Investments Affiliates.

"<u>Anti-Corruption Laws</u>" means all laws, rules and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

"<u>Applicable Insurance Regulatory Authority</u>" means, with respect to any Regulated Insurance Company, the insurance commission or similar Governmental Authority located in the jurisdiction in which such Regulated Insurance Company is domiciled.

"<u>Applicable Percentage</u>" means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place), equal to a fraction, the numerator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of such Lender at such time and the denominator of which is the aggregate outstanding principal amount of the Loans and unused Commitments (if any) of all Lenders at such time.

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"<u>Applicable Rate</u>" means, from time to time, the following percentages per annum, based upon the Consolidated Senior Debt to Capitalization Ratio, as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, as set forth below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Pricing Level** | **Consolidated**<br> **Senior Debt to**<br> **Capitalization**<br> **Ratio** | **Applicable<br>Rate for<br>SOFR Loans** | **Applicable<br>Rate for<br>ABR Loans** | **Commitment<br>Fee** |
| 1 | Less than or equal to 25% | 3.25% | 2.25% | 0.45% |
| 2 | Greater than 25% but less than or equal to 30% | 3.50% | 2.50% | 0.50% |
| 3 | Greater than 30% | 3.75% | 2.75% | 0.55% |

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Except as otherwise provided in the paragraph below, adjustments, if any, to the Pricing Level then in effect shall be effective two (2) Business Days after the Administrative Agent has received financial statements pursuant to Section 6.01(i) or Section 6.01(ii), as applicable, and the related Compliance Certificate pursuant to Section 6.02(i) (it being understood and agreed that each change in Pricing Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change).

Notwithstanding the foregoing, Level 2 shall be deemed to be applicable from the Restatement Effective Date until the Administrative Agent's receipt of such financial statements and Compliance Certificate for the first fiscal period ending after the Restatement Effective Date (unless such financial statements demonstrate that Level 1 or Level 3 should have been applicable during such period, in which case such other Pricing Level shall be deemed to be applicable during such period) and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance with the preceding paragraph.

In the event that any financial statements delivered pursuant to Section 6.01(i) or Section 6.01(ii) or any Compliance Certificate delivered pursuant to Section 6.02(i) is inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Rate for any period (an "<u>Applicable Period</u>") than the Applicable Rate applied for such Applicable Period, then (i) the Borrower shall immediately deliver to the Administrative Agent corrected financial statements and a corrected Compliance Certificate for such Applicable Period, (ii) the Applicable Rate shall be determined based on the corrected Compliance Certificate for such Applicable Period, and (iii) the Borrower shall immediately pay to the Administrative Agent (for the account of the Lenders during the Applicable Period or their successors and assigns) the accrued additional interest owing as a result of such increased Applicable Rate for such Applicable Period. This paragraph shall not limit the rights of the Administrative Agent or the Lenders under Section 2.05 and Article VIII, and shall survive the termination of this Agreement.

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"<u>Approved Electronic Platform</u>" has the meaning specified in Section 9.10(a).

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Approved Rating Agency</u>" means each of A.M. Best Rating Services, Fitch Ratings, Inc., Kroll Bond Rating Agency, Moody's and S&P.

"<u>Arrangers</u>" means BMO Capital Markets Corp., Lloyds Bank PLC, HSBC Bank PLC, The Toronto-Dominion Bank, New York Branch, and Wells Fargo Securities, LLC and RBC Capital Markets, LLC, in their capacities as joint lead arrangers and joint bookrunners.

"<u>Asset Sale Threshold</u>" means an aggregate amount equal to the greater of (a) $3,600,000 and (b) 3.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form approved by the Administrative Agent.

"<u>Auction</u>" has the meaning specified in Section 10.06(b)(vii)(B).

"<u>Auction Manager</u>" means any financial institution or advisor agreed by the Borrower and the Administrative Agent to act as an arranger in connection with any repurchases pursuant to Section 10.06(b)(vii)(B).

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to Section 3.03(b).

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

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"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy".

"<u>Benchmark</u>" means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 3.03(b).

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which all Available Tenors of such Benchmark (or the published component used in the calculation thereof) has been or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, if such Benchmark is a term rate, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

------

For the avoidance of doubt, if such Benchmark is a term rate, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any other Loan Document in accordance with Section 3.03(b) and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any other Loan Document in accordance with Section 3.03(b).

"<u>Beneficial Owner</u>" means each of the following: (a) each individual, if any, who, directly or indirectly, owns 25% or more of the Borrower's equity interests; and (b) a single individual with significant responsibility to control, manage, or direct the Borrower.

"<u>Beneficial Ownership Certification</u>" means a certificate in the form attached hereto as Exhibit I or such other certificate in form and substance reasonably acceptable to the Administrative Agent and the Borrower, certifying, among other things, the Beneficial Owners of the Borrower.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan."

"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>Board of Directors</u>" means, with respect to any Person, (a) in the case of any corporation or exempted company, the board of directors of such Person or any committee thereof duly authorized to act on behalf of such board, (b) in the case of any limited liability company, the board of managers of such Person or the board of directors or the board of managers of the managing member of such Person, as the case may be, (c) in the case of any partnership or exempted limited partnership, the board of directors or board of managers of the general partner of such Person and (d) in any other case, the functional equivalent of the foregoing.

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"<u>Borrower Assignment and Acceptance</u>" means an Assignment and Assumption Agreement substantially in the form of <u>Exhibit D</u>, with such amendments or modifications as may be approved by the Administrative Agent.

"<u>Borrower</u>" has the meaning specified in the introductory paragraph hereto. "<u>Borrower Materials</u>" has the meaning specified in Section 6.02.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period made by the Lenders pursuant to Section 2.01.

"<u>Borrowing Date</u>" means the date of the making of a Loan.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions in the State of New York or London, England are authorized or required by Law to close.

"<u>Capital and Surplus</u>" means, for any Insurance Subsidiary as of any date, the total statutory capital and surplus (or any successor line item description that contains the same information) as shown in its Statutory Statement, or an amount determined in a consistent manner for any date other than one as of which a Statutory Statement was prepared.

"<u>Capital Lease</u>" of any Person means any lease of (or other arrangement conveying the right to use) property (whether real, personal or mixed) by such Person as lessee which would, in accordance with GAAP, as in effect as of the date hereof, be required to be accounted for as a capital lease on the balance sheet of such Person.

"<u>Capitalized Lease Obligations</u>" means, as of any date of determination in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP.

"<u>Casualty Event</u>" means any casualty or other insured damage to any property of the Borrower or any Subsidiary, or any taking of any such property under power of eminent domain or by condemnation or similar proceeding, or any transfer of any such property in lieu of a condemnation or similar taking thereof.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law; (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "<u>Change in Law</u>", regardless of the date enacted, adopted or issued.

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"<u>Change of Control</u>" means the occurrence of any of the following: (a) prior to a Qualified IPO, Altamont ceases to beneficially own, directly or indirectly, Equity Interests of the Borrower representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; (b) after a Qualified IPO, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Altamont, becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Equity Interests of the Borrower representing both (i) more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower and (ii) more than the percentage of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower that are beneficially owned, directly or directly, by Altamont; (c) the majority of the seats (other than vacant seats) on the Board of Directors of the Borrower cease to be occupied by (i) Persons who were members of the Board of Directors of the Borrower on the Restatement Effective Date or (ii) any new members whose election to such Board of Directors or whose nomination for election was approved by a vote of a majority of the members of the Board of Directors of the Borrower then still in office who were either members on the Restatement Effective Date or whose election or nomination for election was previously so approved; or (d) the occurrence of a "change of control" (howsoever defined) in any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount that constitutes an "event of default" under such instrument.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>Commitment</u>" means, as to each Lender as of any date, such Lender's Term Loan Commitment or Revolving Commitment, as applicable, in effect as of such date.

"<u>Communications</u>" has the meaning specified in Section 9.10(c).

"<u>Compliance Certificate</u>" means a certificate substantially in the form of Exhibit C.

"<u>Conforming Changes</u>" means, with respect to either the use or administration of Adjusted Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "ABR," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 3.05 and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

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"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Adjusted Capitalization</u>" means, as of any date of determination, the sum of (i) Consolidated Adjusted Debt, plus, without duplication, (ii) Consolidated Net Worth as of such date, plus, without duplication, (iii) the Hybrid Securities Allowed Amount, in each case as of such date.

"<u>Consolidated Adjusted Debt</u>" means, as of any date of determination, (a) Consolidated Total Debt, minus (b) Consolidated Operating Debt.

"<u>Consolidated Adjusted EBITDA</u>" means, with respect to any Person for any period, Consolidated EBITDA for such period, giving pro forma effect to any applicable Specified Transaction, plus, without duplication, (a) Pro Forma Commission Adjustment for such period, plus (b) Pro Forma Run-Rate Commission Adjustment for such period, plus (c) Pro Forma Run-Rate Premium Adjustment for such period.

"<u>Consolidated Adjusted Senior Debt</u>" means, as of any date of determination, (a) Consolidated Senior Debt, minus (b) Consolidated Senior Operating Debt.

"<u>Consolidated EBITDA</u>" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period (plus, without duplication, all net income of the Insurance Subsidiaries):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following items, in each case (other than with respect to clause (7) below) to the extent deducted in calculating such Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Interest Expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Consolidated Income Taxes; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) consolidated depreciation expense; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) consolidated amortization expense or impairment charges recorded in connection with the application of FASB ASC
360 (Impairment or Disposal of Long-Lived Assets), FASB ASC 205 (Presentation of Financial Statements – Discontinued Operations), FASB ASC 350 (Intangibles – Goodwill and Other), FASB ASC 360 (Property, Plant and Equipment) and FASB ASC
360 (Property, Plant and Equipment); plus

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) other non-cash charges reducing Consolidated Net Income, including any
write-offs or write-downs (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid
in a prior period not included in the calculation); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) any (i) Transaction Costs and (ii) fees, costs, charges or other expenses incurred in connection with
(A) any actual or proposed investment, joint venture, asset sale, acquisition, recapitalization or issuance of Equity Interest or the incurrence of Debt (including, with respect to Debt, a refinancing thereof) or (B) any amendment, waiver,
consent or modification to the Loan Documents, any documentation governing any Debt (including as a result of FASB ASC 805 (Business Combinations)) or any documentation governing the terms of any transaction described in the immediately preceding
subclause (A), whether or not such transaction or amendment, waiver, consent or modification is successful, or modification of Debt; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the amount of "run rate" cost savings, synergies, operating improvements and operating expense
reductions resulting from, or related to, mergers and other business combinations, acquisitions, investments, divestitures, dispositions, discontinuance of activities or operations, the consolidation or closing of locations, and other specified
transactions, restructurings, cost savings initiatives, operational changes and other initiatives (including acquisitions occurring prior to the Restatement Effective Date) that are reasonably identifiable and projected by the Borrower in good faith
to result from actions either taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) within twenty-four (24) months of the underlying action or transaction
(or undertaken or implemented prior to consummation of the acquisition or other applicable transaction), in each case, calculated (i) on a pro forma basis as though such cost savings, synergies, operating improvements or operating expense
reductions had been realized on the first day of such period and (ii) net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that "run rate" means the full recurring benefit
that is associated with any action taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Restatement Effective Date) (which adjustments may be incremental to (but not
duplicative of) pro forma cost savings, synergies, operating improvements or operating expense reduction adjustments made pursuant to clause (8) below; except that the aggregate amount added to Consolidated Net Income pursuant to this clause
(7), when aggregated with the aggregate amount added back pursuant to clause (8) below and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added back
pursuant to Section 1.10, in each case with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the amount of any restructuring charges (including lease termination, severance and relocation expenses),
integration costs or other business optimization expenses or non-ordinary course reserves; except that the aggregate amount added to Consolidated Net Income pursuant to this clause (8), when aggregated with
the aggregate amount added to Consolidated Net Income pursuant to clause (7) above and the aggregate amount of "run-rate" cost savings, synergies and operating expense reductions added to
Consolidated Net Income pursuant to Section 1.10, in each case with respect to such period, shall not exceed 20% of Consolidated EBITDA for such period (calculated prior to giving effect to such adjustments); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) (A) consulting and similar fees, expenses and indemnities payable to Altamont and its Affiliates to the extent
payment thereof is not prohibited by this Agreement and (B) compensation and expense reimbursements payable to directors and officers, any indemnity payments, and any expenses for director and officer insurance premiums to the extent such
payment is not prohibited by this Agreement, in each case, to the extent the same were deducted (and not added back) in such period in computing Consolidated Net Income; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) any non-recurring, unusual or extraordinary charges, losses or expenses
(excluding charges, losses and/or expenses of the type added back pursuant to clause (8) above) deducted (and not added back) in such period in computing Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by non-cash items increasing Consolidated Net Income of such Person for such period (excluding any items which represent the recognition of deferred revenue, the reversal of any accrual of, or reserve for, anticipated cash charges that reduced Consolidated EBITDA in any prior period and any items for which cash was received in a prior period that did not increase Consolidated EBITDA in any prior period); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) increased or decreased (without duplication) to eliminate the following items to the extent reflected in Consolidated Net Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any non-ordinary course net gain or loss resulting in such period from
Hedging Obligations and the application of FASB ASC 825 (Financial Instruments) and related codifications, including FASB ASC 326;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all unrealized gains and losses relating to financial instruments or liabilities to which fair market value
accounting is applied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any net gain or loss resulting in such period from currency translation gains or losses related to currency
remeasurements of Debt (including any net loss or gain resulting from Hedging Obligations for currency exchange risk).

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Notwithstanding the foregoing, for purposes of determining Consolidated EBITDA under this Agreement for any fiscal quarter ended prior to the Restatement Effective Date, Consolidated EBITDA for such fiscal quarters shall be as set forth below:

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| | |
|:---|:---|
| **Fiscal quarter ending on the date set forth below** | **Consolidated EBITDA** |
|  September 30, 2023 | $840867 |
|  December 31, 2023 | $28815078 |
|  March 31, 2024 | $32455735 |
|  June 30, 2024 | $13213578 |

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"<u>Consolidated Income Taxes</u>" means, with respect to any Person for any period, Taxes imposed upon such Person or other payments required to be made by such Person to any Governmental Authority, which Taxes or other payments are calculated by reference to the income or profits or capital of such Person or such Person and its Subsidiaries (to the extent such income or profits were included in computing Consolidated Net Income for such period), including state, franchise and similar Taxes and withholding Taxes regardless of whether such Taxes or payments are required to be remitted to any Governmental Authority. For purposes of this Agreement, Consolidated Income Taxes of the Borrower and its Subsidiaries for any fiscal quarter shall be calculated by the Borrower in good faith and in accordance with GAAP.

"<u>Consolidated Interest Expense</u>" means, for any period, the interest expense of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, including the portion of any payments or accruals with respect to Capitalized Lease Obligations that are allocable to interest expense as reasonably determined by the Borrower in accordance with GAAP.

"<u>Consolidated Net Income</u>" means, for any period, the net income (loss) of any Person (the "<u>primary Person</u>") and its Subsidiaries determined on a consolidated basis in accordance with GAAP (before preferred stock dividends); <u>provided</u> that (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any net income (but not loss) of the Insurance Subsidiaries of the primary Person determined on a combined basis shall be excluded from such Consolidated Net Income; <u>provided</u> that, notwithstanding the foregoing, with respect to any such period, there shall be included in Consolidated Net Income any such amount determined on a combined basis that could have been distributed directly or indirectly by the Insurance Subsidiaries on a combined basis to the primary Person or any Credit Party as a dividend, distribution or return of capital or as a payment of interest or principal on any surplus note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any after-tax effect of gain or loss (less all fees and expenses relating thereto) realized upon sales or other dispositions of any assets of the primary Person or such Subsidiary of the primary Person (including pursuant to any sale and leaseback transaction) other than in the ordinary course of business shall be excluded from such Consolidated Net Income;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any after-tax effect of income (loss) from the early extinguishment of Debt or early termination of Hedging Obligations or other derivative instruments shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the after-tax effect of extraordinary gain or loss shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the after-tax effect of the cumulative effect of a change in accounting principles shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any after-tax effect of non-cash impairment charges recorded in connection with the application of FASB ASC 360 (Impairment or Disposal of Long-Lived Assets), FASB ASC 205 (Presentation of Financial Statements – Discontinued Operations), FASB ASC 350 (Intangibles – Goodwill and Other) and FASB ASC 360 (Property, Plant and Equipment) shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any non-cash compensation expense realized for grants of performance shares, stock options or other rights to officers, directors and employees of the primary Person or any Subsidiary of the primary Person shall be excluded from such Consolidated Net Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all impairment charges in connection with investments made by any Insurance Subsidiary of the primary Person in the ordinary course of business shall be excluded from such Consolidated Net Income; <u>provided</u> that the amount of any cash charges relating to such impairment charges shall not be excluded from Consolidated Net Income by operation of this clause (h) to the extent such cash charges reduce the Capital and Surplus of such Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) interest related realized net investment portfolio trading losses of any Insurance Subsidiary of the primary Person shall be excluded from Consolidated Net Income to the extent such losses do not reduce the Capital and Surplus of such Insurance Subsidiary.

"<u>Consolidated Net Worth</u>" means, as of any date of determination, the total common and preferred shareholders' equity of the Borrower and its Subsidiaries as of such date, determined on a consolidated basis in accordance with GAAP.

"<u>Consolidated Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Senior Debt</u>" means, as of any date of determination, (a) the aggregate outstanding principal amount of the Loans, plus (b) the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries (excluding Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

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"<u>Consolidated Senior Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Senior Debt to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Consolidated Senior Operating Debt</u>" means, as of any date of determination, all Operating Debt of the Borrower and its Subsidiaries (excluding Operating Debt that is expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent to not be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Operating Debt if no Default or Event of Default has occurred and is continuing)), determined on a consolidated basis as of such date.

"<u>Consolidated Total Assets</u>" means at any date the total assets of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt</u>" means, as of any date of determination, the aggregate outstanding principal amount of all Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date.

"<u>Consolidated Total Debt to Capitalization Ratio</u>" means, as of any date of determination, the ratio of (a) Consolidated Adjusted Debt to (b) Consolidated Adjusted Capitalization, in each case as of such date.

"<u>Continuing Restatement Loans</u>" has the meaning assigned to it in Section 2.01(a)(i).

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Controlled Investment Affiliate</u>" means, with respect to any Person, any other Person (other than a natural person) established or organized for the purpose of making debt or equity investments in one or more companies and that is controlled or managed by, or under common control or management with, such Person or any of its Affiliates that are organized to invest in, hold or manage (directly or indirectly) such debt obligations or equity of portfolio companies (and that are not themselves portfolio companies).

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"<u>Covered Entity</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
382.2(b).

"<u>Covered Party</u>" has the meaning assigned to it in Section 10.21. "<u>Credit Party</u>" means the Borrower and the Guarantors.

"<u>Cure Amounts</u>" has the meaning specified in Section 7.11(e). "<u>Cure Right</u>" has the meaning specified in Section 7.11(e).

"<u>Debt</u>" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without duplication, all non-contingent obligations (and, for purposes
of Section 7.01 and Section 8.01(e), all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under letters of credit (both standby and commercial), bankers' acceptances, bank
guaranties and similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Hedging Obligations of such Person (<u>provided</u> that the amount of any Hedging Obligations of any Person
that constitutes Debt of such Person at any time shall be equal to the Swap Termination Value of the Swap Contracts giving rise to such Hedging Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all obligations of such Person to pay the deferred purchase price of property or services (other than trade
accounts payable and accrued expenses payable and accruals for payroll, in each case in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) (A) all obligations of such Person under conditional sale or other title retention agreements relating to
property purchased by such Person to the extent of the value of such property (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business) and (B) Debt of others
secured by a Lien on, or payable out of the proceeds of production from, any property or asset of such Person, whether or not such obligation is assumed by such Person; <u>provided</u> that the amount of any such Debt of others that constitutes Debt
of such Person solely by reason of this clause (v)(B) shall not for purposes of this Agreement exceed the greater of the fair market value of the properties or assets subject to such Lien and the amount of Debt secured thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all Capitalized Lease Obligations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all obligations of such Person to purchase securities or other property which arise out of or in connection
with the sale of the same or substantially similar securities or property or any loans incurred by such Person which are principally secured by securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all obligations of such Person in respect of Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Debt of any other Person (including any partnership in which such Person is general partner and any
unincorporated joint venture in which such Person is a joint venturer) to the extent such Person would by virtue of such Person's ownership interest in such other Person be liable therefor under applicable Law or any agreement or instrument to
which it is a party, except to the extent the terms of such Debt and provide that such Person shall not be liable therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) all Guarantees of such Person in respect of any of the foregoing;

<u>provided</u> that (A) "Debt" shall exclude Debt of any direct or indirect parent company of the Borrower appearing upon the balance sheet of the Borrower solely by reason of push-down accounting under GAAP and (B) except for purposes of Section 7.01 and Section 8.01(e), "Debt" shall exclude an aggregate amount of obligations in respect of Hybrid Securities up to (but not exceeding) the Hybrid Securities Allowed Amount. The amount of any Limited Recourse Debt of any Person shall be equal to the lesser of (x) the aggregate principal amount of such Limited Recourse Debt for which such Person provides credit support constituting Debt and (y) the fair market value of any assets securing such Debt or to which such Debt is otherwise recourse. Notwithstanding any other provision contained herein, the amount of any Debt under GAAP with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of "Capitalized Lease Obligations".

"<u>Debt Fund Affiliate</u>" has the meaning specified in Section 10.06(b)(vii)(A).

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, rehabilitation, insolvency, reorganization, or similar debtor relief Laws of the United States, Cayman Islands, Bermuda, Malta, the United Kingdom or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"<u>Declined Proceeds</u>" has the meaning specified in Section 2.03(b)(v).

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate equal to (i) the sum of (a) Adjusted Term SOFR for a one-month Interest Period in effect on such day plus (b) 1.00%, plus (ii) the Applicable Rate, plus (iii) 2.00% per annum; <u>provided</u> that, with respect to a Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan, plus 2.00% per annum.

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"<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Defaulting Lender</u>" means at any time, subject to Section 2.11(b), (a) any Lender that has failed for two or more Business Days to comply with its obligations under this Agreement to make a Loan or make any other payment due hereunder (each, a "<u>funding obligation</u>"), unless such Lender has notified the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding have not been satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (b) any Lender that has notified the Administrative Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding obligations hereunder, unless such writing or statement states that such position is based on such Lender's good faith determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (c) any Lender that has, for four or more Business Days after written request of the Administrative Agent or the Borrower, failed to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u> that such Lender will cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent's and the Borrower's receipt of such written confirmation), (d) any Lender with respect to which a Lender Insolvency Event has occurred and is continuing with respect to such Lender or its Parent Company or (e) any Lender that has become the subject of a Bail-In Action; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any of clauses (a) through (d) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.11(b)) upon notification of such determination by the Administrative Agent to the Borrower and the Lenders.

"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer, license, lease or other disposition of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"<u>Disqualified Equity Interest</u>" means any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the

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Commitments), or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Maturity Date, (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in clause (a) above, in each case at any time on or prior to the date that is 91 days after the Maturity Date, or (c) contains any repurchase obligation which may come into effect prior to payment in full of all Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof); <u>provided</u> that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the occurrence of a change in control or an asset sale occurring prior to the date that is 91 days after the Maturity Date shall not constitute Disqualified Equity Interests if such Equity Interest provides that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the repayment in full of the Obligations (other than contingent obligations not then due and payable and that by their terms survive the termination thereof). In addition, any Equity Interests held by any future, present or former employee, director, officer, manager or consultant (or their estates, spouses or former spouses) of the Borrower, any of the Subsidiaries or any direct or indirect parent company of the Borrower pursuant to any stockholders agreement, management equity plan or stock option plan or any other management or employee benefit plan or agreement shall not constitute Disqualified Equity Interests solely because it may be required to be repurchased by the Borrower or any Subsidiary following the termination of employment with the Borrower, any of the Subsidiaries or such parent company, or death or disability of, such employee, director, officer, manager or consultant, or in order to satisfy applicable regulatory or statutory obligations (so long as, in each case referred to in this sentence, any such requirement is made subject to compliance with this Agreement).

"<u>Dollar</u>" and "$" mean lawful money of the United States.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means January 29, 2021.

"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under Sections 10.06(b)(iii) and 10.06(b)(v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).

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"<u>Embargoed Jurisdiction</u>" means any country or territory that is the subject of comprehensive Sanctions, as modified from time to time by relevant Governmental Authorities.

"<u>EMU Legislation</u>" means the legislative measures of the European Union relating to Economic and Monetary Union.

"<u>Environmental Laws</u>" means any and all Federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or binding governmental restrictions, including all common law, relating to pollution, the protection of the environment or the release or threatened release of any materials into the indoor or outdoor environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

"<u>Equity Interests</u>" means, as to any Person, all of the shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests, including limited partnership interests, in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, limited partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, limited partnership interests, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder, and all administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority, in each case having the force of law.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that together with the Credit Parties is treated as a single employer under Section 414(b) or (c) of the Code (or Section 414(m) or (o) of the Code, solely for purposes of Sections 412 and 430 of the Code or Section 302 of ERISA).

"<u>ERISA Event</u>" means: (a) a Reportable Event with respect to a Pension Plan; (b) the failure by any Credit Party or any ERISA Affiliate to meet any applicable requirement under the Pension Funding Rules, whether or not waived, or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by any Credit Party or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or as a result of a cessation of operations with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA; (d) a complete or partial withdrawal by any Credit Party or any ERISA Affiliate from a Multiemployer Plan resulting in withdrawal liability to any Credit Party or any ERISA Affiliate (or receipt by any Credit Party or any ERISA Affiliate of any notice concerning the imposition of withdrawal liability on any Credit Party or any ERISA Affiliate with respect to any Multiemployer Plan) or a determination that a Multiemployer Plan is, or is expected to be,

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"insolvent" (within the meaning of Section 418E of the Code or Section 4245 of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) the determination that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (h) the imposition or incurrence of any material liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, by or upon any Credit Party or any ERISA Affiliate; (i) the engagement by any Credit Party or any ERISA Affiliate in a transaction that is determined to be subject to Section 4069 or Section 4212(c) of ERISA; (j) the imposition of a lien upon any Credit Party or any ERISA Affiliate pursuant to Section 430(k) of the Code or Section 303(k) of ERISA; or (k) with respect to any Foreign Plan (A) the failure to make or, if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by applicable Law or the terms of such plan, (B) the failure to register, or loss of good standing, with applicable regulatory authorities, of any Foreign Plan required to be registered or in good standing, or (C) the failure of any Foreign Plan to comply with any material provisions of applicable Law or with the material terms of such plan.

"<u>Erroneous Payment</u>" has the meaning assigned to it in Section 9.12(a).

"<u>Erroneous Payment Deficiency Assignment</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Impacted Class</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Return Deficiency</u>" has the meaning assigned to it in Section 9.12(d)(i).

"<u>Erroneous Payment Subrogation Rights</u>" has the meaning assigned to it in Section 9.12(e).

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

"<u>Euro</u>" or "€" means the single currency of the Participating Member States introduced in accordance with the EMU Legislation.

"<u>Event of Default</u>" has the meaning specified in Section 8.01.

"<u>Excluded Subsidiary</u>" means (a) any Insurance Subsidiary, (b) any Subsidiary that is not a wholly-owned Subsidiary (disregarding any Disqualified Equity Interests), (c) any Securitization Subsidiary, (d) any Subsidiary that is not a Material Subsidiary, (e) any Subsidiary that is not permitted by Law or regulation to guarantee the Obligations or that would be required to obtain consent, approval, license or authorization of a Governmental Authority in order to guarantee the Obligations (unless such consent, approval, license or authorization has been received), (f) any Subsidiary that is prohibited from guaranteeing the Obligations by any Contractual Obligation in existence on the Restatement Effective Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof but only to the extent (i) such Contractual Obligation cannot be amended, modified or otherwise terminated unilaterally by such Subsidiary without triggering a default or breach thereunder and (ii) the

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Borrower has used commercially reasonable efforts to obtain consent from all required counterparties with respect to such contractual obligation to waive such prohibition) and (g) any Subsidiary to the extent that the burden, difficulty, consequence or cost of guaranteeing the Obligation by such Subsidiary outweighs the benefit afforded thereby as reasonably determined by the Administrative Agent and the Borrower.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.01, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient's failure to comply with Section 3.01(g) and (d) any withholding Taxes imposed pursuant to FATCA.

"<u>Existing Credit Agreement</u>" has the meaning specified in the second introductory paragraph.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any intergovernmental agreement with respect thereto and any fiscal or regulatory legislation, rules, guidance notes or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code, and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

"<u>Federal Funds Rate</u>" means, for any day, the greater of (a) the rate calculated by the Federal Reserve Bank of New York based on such day's Federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the Federal funds effective rate and (b) 0%.

"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Financial Officer</u>" means, as to any Person, the chief financial officer, principal accounting officer, director, treasurer or controller of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, the chief financial officer, director, treasurer, assistant treasurer or controller of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person.

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"<u>Floor</u>" means a rate of interest equal to 0%.

"<u>Foreign Lender</u>" means a Lender that is not a U.S. Person.

"<u>Foreign Plan</u>" means each "employee benefit plan" (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to U.S. Law and is maintained or contributed to by any Credit Party or any ERISA Affiliate.

"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"<u>GAAP</u>" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

"<u>Governmental Authority</u>" means any nation or government, or state or political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body (including any Applicable Insurance Regulatory Authority), court, administrative tribunal central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation payable or performable by another Person (the "<u>primary obligor</u>") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Debt or other obligation of the payment or performance of such Debt or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Debt or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien); <u>provided</u> that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "<u>Guarantee</u>" as a verb has a corresponding meaning.

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"<u>Guarantor</u>" means each Subsidiary of the Borrower that executes and delivers the Guaranty or a joinder to the Guaranty pursuant to the terms hereof or the Guaranty, unless any such Subsidiary of the Borrower has ceased to be a Guarantor pursuant to the terms hereof or the Guaranty.

"<u>Guaranty</u>" means the amended and restated Guaranty made by the Guarantors in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit F.

"<u>Hedging Obligations</u>" of any Person means the obligations of such Person (contingent or otherwise) under any Swap Contract other than obligations (contingent or otherwise) existing or arising under any Swap Contract entered into in the ordinary course of business (a) to hedge or mitigate risks to which such Person is exposed in the conduct of its business or the management of its liabilities and not for speculative purposes, (b) which are income generation transactions made in accordance with the income generation transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time the applicable transaction is entered into or (c) to replicate assets that would be admissible on the balance sheet of any insurance company organized under the laws of one of the states of the United States of America in accordance with the replication synthetic asset transaction rules set forth in the Purposes and Procedures Manual of the NAIC Securities Valuation Office, as such rules are in effect at the time of the applicable transaction is entered into.

"<u>Hybrid Securities</u>" means, at any time, trust preferred securities, deferrable interest subordinated debt securities, mandatory convertible debt or other hybrid securities issued by the Borrower or any Subsidiary.

"<u>Hybrid Securities Allowed Amount</u>" means, at any date, the lesser of (a) the aggregate Hybrid Securities Amount for all Hybrid Securities and (b) 15.0% of Consolidated Adjusted Capitalization at such date.

"<u>Hybrid Securities Amount</u>" means, with respect to any Hybrid Security, the principal amount (which principal amount may be a portion of the aggregate principal amount) of such Hybrid Security that is accorded equity treatment by any Approved Rating Agency at the time of issuance thereof.

"<u>IAS</u>" means International Accounting Standards as in effect from time to time.

"<u>IFRS</u>" means International Financial Reporting Standards as in effect from time to time.

"<u>Illegality Event</u>" has the meaning assigned to such term in Section 3.02.

"<u>Illegality Notice</u>" has the meaning assigned to such term in Section 3.02.

"<u>Incremental Agreement</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

"<u>Incremental Lenders</u>" has the meaning assigned to such term in Section 2.12(a)(vi).

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"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Credit Parties under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in Section 10.04(b).

"<u>Ineligible Assignee</u>" means (a) those Persons identified in writing by the Borrower to the Arrangers on September 25, 2024 (or to any affiliates of such Persons that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower) or (b) to any competitors of the Borrower or any of the Borrower's Subsidiaries identified to the Administrative Agent in writing from time to time (and affiliates of such entities that are clearly identifiable as affiliates solely on the basis of the similarity of their names or that are identified to the Administrative Agent from time to time in writing by the Borrower); <u>provided</u> that no such identification pursuant to clauses (a) and (b) shall apply (i) retroactively to disqualify any Person that has previously acquired by an Assignment and Assumption or participation an interest in the Loans or Commitments with respect to amounts previously acquired, entered into a trade for the foregoing or became a competitor of the Borrower before such person is added to the list of "Ineligible Assignee" and (ii) until the date that is two Business Days following the delivery of the applicable written identification of such Person from the Borrower to the Administrative Agent.

"<u>Ineligible Institution List</u>" has the meaning specified in Section 10.06(f).

"<u>Information</u>" has the meaning specified in Section 10.07.

"<u>Insurance Business</u>" means one or more aspects of the business of selling, issuing or underwriting insurance or reinsurance.

"<u>Insurance Subsidiary</u>" means any (a) Regulated Insurance Company and (b) direct or indirect Subsidiary of such a Subsidiary.

"<u>Interest Coverage Ratio</u>" means, with respect to any Person for any period, the ratio of (a) Consolidated Adjusted EBITDA of such Person for such period to (b) the Consolidated Interest Expense (excluding in the determination thereof (i) any write-offs of capitalized fees under agreements governing Debt and all amendments thereto, (ii) all non-cash charges for the amortization of deferred financing fees and debt issuance costs, (iii) any interest on Tax reserves to the extent the Borrower has elected to treat such interest as an interest expense under FASB ASC 450 (Contingencies) since its adoption, (iv) Transaction Costs and any annual administrative or other agency fees and (v) any discount, yield and/or interest component in respect of any Qualified Securitization Facility) of such Person for such period.

"<u>Interest Election Request</u>" means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.05, which shall be substantially in the form of Exhibit A-2 or such other form as the Administrative Agent may approve.

"<u>Interest Payment Date</u>" means, (a) as to any Term Benchmark Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; <u>provided</u> that, if any Interest Period for a Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates and (b) as to any ABR Loan, the last day of each March, June, September and December.

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"<u>Interest Period</u>" means as to each Term Benchmark Loan, the period commencing on the date such Term Benchmark Loan is disbursed or converted to or continued as a SOFR Loan, as applicable, and ending on the date one, three or six months thereafter, as selected by the Borrower in its Loan Notice; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period pertaining to a Term Benchmark Loan that begins on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period shall extend beyond the Maturity Date.

"<u>Investment</u>" means (i) any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase (including purchases financed with equity) of any Equity Interests, bonds, notes, obligations, debentures or other debt securities of, any Person and (ii) investments that are required to be classified on the balance sheet of such person in accordance with GAAP in the same manner as the other investments included in clause (i) of this definition to the extent such transactions involve the transfer of cash or other property.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Judgment Currency</u>" has the meaning specified in Section 10.19(a).

"<u>Judgment Currency Conversion Date</u>" has the meaning specified in Section 10.19(a).

"<u>Laws</u>" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, legally enforceable guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case having the force of law.

"<u>LCT Election</u>" has the meaning specified in Section 1.11(a).

"<u>LCT Test Date</u>" has the meaning specified in Section 1.11(a).

"<u>Lender</u>" means a Term Loan Lender or a Revolving Lender.

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"<u>Lender Insolvency Event</u>" means that (a) a Lender or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors or (b) such Lender or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment.

"<u>Lending Office</u>" means, as to any Lender, the office or offices of such Lender described as such in such Lender's Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent.

"<u>License</u>" means any license, certificate of authenticity, permit or other authorization which is required to be obtained from a Governmental Authority in connection with the operation, ownership or transaction of insurance business.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, assignment by way of security, deposit arrangement, encumbrance, lien (statutory or other), charge or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever in the nature of a security interest (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Limited Condition Investment</u>" means any investment, including any acquisition, by any Credit Party or one or more Subsidiaries whose consummation is not conditioned on the availability of, or on obtaining, third-party financing.

"<u>Limited Recourse Debt</u>" means with respect to any Person, Debt of such Person as to which either (a) the maximum aggregate amount of such Person's liability is limited to an amount less than the amount of such Debt or (b) as to which the recourse of the creditor holding such Debt for payment of such Debt is limited to the assets securing such Debt.

"<u>Loan Documents</u>" means this Agreement, each Note and the Guaranty.

"<u>Loan Notice</u>" means a notice of a Borrowing, which shall be substantially in the form of Exhibit A-1.

"<u>Loans</u>" means, collectively, the Term Loans, the Revolving Loans and the New Loans (if any).

"<u>Management Agreement</u>" means the Management Services Agreement, dated as of February 19, 2019, between the Accelerant Holdings LP and Altamont Capital Management, LLC, a Delaware limited liability company.

"<u>Margin Stock</u>" means margin stock within the meaning of Regulation T, Regulation U or Regulation X.

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"<u>Market Capitalization</u>" means an amount equal to (i) the total number of issued and outstanding shares of common Equity Interests of the Borrower on the date of the declaration or making of the relevant Restricted Payment multiplied by (ii) the arithmetic mean of the closing prices per share of such common Equity Interests for the 30 consecutive trading days immediately preceding the date of declaration or making of such Restricted Payment.

"<u>Market Disruption Event</u>" has the meaning specified in Section 3.03(a).

"<u>Master Agreement</u>" means any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement or any other master agreement, together with any related schedules.

"<u>Material Adverse Effect</u>" means: (a) a material adverse effect on the operations, business, properties or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Credit Parties, taken as a whole, to perform their obligations under the Loan Documents; (c) a material adverse effect on the legality, validity, binding effect or enforceability against the Credit Parties of any Loan Document to which they are a party; or (d) a material adverse effect on the rights, remedies and benefits available to, or conferred upon, the Administrative Agent or any Lender under any Loan Documents, taken as a whole.

"<u>Material Insurance Subsidiary</u>" means any Insurance Subsidiary (whether existing on or acquired or formed after the Restatement Effective Date) having Capital and Surplus, calculated excluding the value of its investment in any other Insurance Subsidiary, equal to 10% or more of the sum total of the Capital and Surplus of all of the Insurance Subsidiaries, with the Capital and Surplus of each Insurance Subsidiary being added to such sum total, but excluding the value of its investment in any other Insurance Subsidiary.

"<u>Material Subsidiary</u>" means (a) any Material Insurance Subsidiary and (b) any other Subsidiary of the Borrower (i) whose total assets (determined on a consolidated basis in accordance with GAAP, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable) or (ii) whose revenues (determined on a consolidated basis in accordance with GAAP, for such Subsidiary and its direct and indirect Subsidiaries) are in excess of 10% of the consolidated revenues of the Borrower and its Subsidiaries (based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable); <u>provided</u> that the aggregate amount of total assets of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the aggregate amount of revenues of the Borrower's Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable).

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"<u>Maturity Date</u>" means September 26, 2029; <u>provided</u> that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

"<u>Maximum Rate</u>" has the meaning specified in Section 10.09.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Multiemployer Plan</u>" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Credit Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

"<u>Multiple Employer Plan</u>" means a Plan with respect to which any Credit Party or any ERISA Affiliate is a contributing sponsor which has two or more contributing sponsors (including the Borrower or ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

"<u>NAIC</u>" means the National Association of Insurance Commissioners.

"<u>Net Proceeds</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the aggregate amount of cash and cash equivalents received by the Borrower or any Subsidiary in respect of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as the case may be, minus the sum of (i) all costs and expenses (including legal fees, notarial fees, accountants' fees, investment banking fees, survey costs and title insurance premiums) paid by the Borrower or any of its Subsidiaries to third parties, (ii) amounts applied to the repayment of Debt (other than the Loans) secured by a Lien expressly permitted hereunder on any asset that is the subject of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, (iii) costs of discontinuance (including any reasonable severance payments), (iv) Taxes other than income taxes and other customary fees and expenses incurred in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction and required to be paid in cash or deducted from the proceeds of such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto, (v) the estimated income tax or other Taxes to the extent payable by the Person selling or Disposing of such asset required to be paid in cash in connection with such Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction or repatriation of proceeds relating thereto (including distributions permitted to be made under Section 7.06 on account of Taxes payable by an Affiliate of such Person in connection therewith), (vi) purchase price adjustments reasonably expected to be payable in connection therewith and (vii) the aggregate amount of reserves taken by the Borrower or any of its Subsidiaries in accordance with GAAP against indemnification obligations incurred in connection therewith (without duplication of any taxes deducted pursuant to clause (iv) above) so long as, if any such amount ceases to be payable, it shall then become "Net Proceeds" on the date of such cessation,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any issuance of Debt by the Borrower or any of its Subsidiaries, the proceeds thereof in the form of cash and cash equivalents (including any cash and cash equivalents received by way of deferred payment of principal pursuant to a note), minus the costs and expenses paid or payable by the Borrower or any of its Subsidiaries to third parties in connection therewith (including legal fees, notarial fees, accountants' fees, investment banking fees, underwriting discounts and commissions, taxes and other customary fees and expenses incurred in connection therewith) and required to be paid in cash or deducted from the proceeds of such issuance, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any Disposition of Equity Interests pursuant to Section 7.05(vii), the aggregate amount of cash and cash equivalents received by the Borrower or any Subsidiary in respect of such Disposition, as the case may be, minus the sum of (i) all costs and expenses (including legal fees, notarial fees, accountants' fees, and investment banking fees) paid by the Borrower or any of its Subsidiaries to third parties, (ii) amounts applied to the repayment of Debt (other than the Loans) secured by a Lien expressly permitted hereunder on any asset that is the subject of such Disposition, (iii) costs of discontinuance (including any reasonable severance payments), (iv) Taxes other than income taxes and other customary fees and expenses incurred in connection with such Disposition and required to be paid in cash or deducted from the proceeds of such Disposition or repatriation of proceeds relating thereto, (v) the estimated income tax or other Taxes to the extent payable by the Person selling or Disposing of such asset required to be paid in cash in connection with such Disposition or repatriation of proceeds relating thereto (including distributions permitted to be made under Section 7.06 on account of Taxes payable by an Affiliate of such Person in connection therewith), (vi) purchase price adjustments reasonably expected to be payable in connection therewith and (vii) the aggregate amount of reserves taken by the Borrower or any of its Subsidiaries in accordance with GAAP against indemnification obligations incurred in connection therewith (without duplication of any taxes deducted pursuant to clause (iv) above) so long as, if any such amount ceases to be payable, it shall then become "Net Proceeds" on the date of such cessation.

"<u>New Commitment</u>" has the meaning specified in Section 2.12(a)(vi).

"<u>New Loan</u>" has the meaning specified in Section 2.12(a).

"<u>New Loan Borrowing Date</u>" has the meaning specified in Section 2.12(a).

"<u>Non-Consenting Lender</u>" means any Lender that does not approve or consent to any consent, waiver or amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 10.01 and (b) has been approved by the Required Lenders.

"<u>Non-Defaulting Lender</u>" means, at any time, a Lender that is not a Defaulting Lender.

"<u>Non-OC Asset Sale</u>" means any Disposition or transfer, or series of related Dispositions or transfers, of insurance policies and related assets and liabilities (other than any such transfer or Disposition constituting Non-OC Reinsurance Transaction or any Disposition of Equity Interests of an Insurance Subsidiary) involving assets with a value in excess of 2.5% of Consolidated Total Assets as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

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"<u>Non-OC Reinsurance Transaction</u>" means any reinsurance transaction, or series of related reinsurance transactions, entered into by the Borrower or any of its Subsidiaries after the Restatement Effective Date, pursuant to which either (a) the ceding commission payable to the Borrower or any of its Subsidiaries as consideration thereof exceeds the greater of (x) $12,000,000 and (y) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, or (b) the insurance policies and related assets subject thereto have an aggregate value in excess 2.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii).

"<u>Non-Recourse Debt</u>" means with respect to any Person, Debt if, but only if: (a) such Person (i) provides no credit support of any kind for such Debt (including any undertaking, agreement or instrument that would constitute Debt) and (ii) is not directly or indirectly liable as a guarantor or otherwise for such Debt; and (b) no default with respect to such Debt would permit upon notice, lapse of time or both any holder of any other Debt (other than the Loans) of such Person to declare a default on such other Debt or cause the payment thereof to be accelerated or payable prior to its stated maturity.

"<u>Note</u>" means a promissory note executed by the Borrower and delivered to a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B.

"<u>Obligation Currency</u>" has the meaning specified in Section 10.19(a).

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under any Loan Document, including with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue thereon after the commencement by or against the Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include (i) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Borrower under any Loan Document and (ii) the obligation to pay, discharge and satisfy the Erroneous Payment Subrogation Rights.

"<u>Operating Debt</u>" means, as to any Person at a particular time, without duplication, all of the following to the extent constituting Debt:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent that a reimbursement obligation in respect thereof is not yet due, obligations under letters of
credit, bank guarantees and similar instruments (A) issued for the account of an Insurance Subsidiary to support obligations under Reinsurance Agreements or Retrocession Agreements or (B) of any Person issued in the ordinary course of
business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) surplus notes and other Debt of such Person incurred in the ordinary course of business to the extent such Debt
is of the type customarily excluded from financial leverage by both S&P and Moody's in their evaluation of such Person or similarly positioned person and is of the type treated as a hybrid capital instrument by both S&P and Moody's
in their evaluation of such Person or a similarly situated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations with respect to Policies, Reinsurance Agreements and Retrocession Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obligations under Permitted Repo and Securities Lending Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) unspent cash deposits or securities held in escrow by or in favor of such Person, or in a segregated deposit or
securities account, as applicable, controlled by such Person, in each case in the ordinary course of business to secure the performance obligations of, or damages owing from, one or more third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Debt under any overdraft or other cash management facilities so long as any such Debt is repaid in full no
later than five (5) Business Days following the date on which it was incurred or, in the case of such Debt in respect of credit or purchase cards, within 60 days of its incurrence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in connection with the purchase by the Borrower or any Subsidiary of any business, any post-closing payment
adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such acquired business after the closing of such purchase, but only so long
as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) at the time of such closing, the amount of such payment is not determinable (it being understood and agreed
that any variable earn-out or similar variable payment that depends solely on the performance of such business after the closing is not determinable at the time of such closing); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) after such payment thereafter becomes fixed and determined, it is paid in a timely manner.

"<u>Operating Lease</u>" means, as applied to any Person, a lease (including leases which may be terminated by the lessee at any time) of any property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease.

"<u>Organizational Documents</u>" of a Person means: (a) if such Person is a corporation or exempted company, the certificate or articles of incorporation and the bylaws or memorandum and articles of association (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) of such Person; (b) if such Person is a limited liability company, the certificate or articles of formation, registration or organization and operating agreement of such Person; and (c) if such Person is a partnership, exempted limited partnership, joint venture, trust or other form of business entity, the partnership, exempted limited partnership, joint venture or

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other applicable agreement of formation, registration or organization of such Person and any agreement, certificate, instrument, filing or notice with respect thereto filed in connection with such Person's formation, registration or organization with the applicable Governmental Authority in the jurisdiction of such Person's formation, registration or organization and, if applicable, any certificate or articles of formation, registration or organization of such Person.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 3.06).

"<u>Outstanding Receivables Amount</u>" means, at any time, the aggregate outstanding amount of accounts receivable that have been transferred or pledged by the Borrower and its Subsidiaries at such time and that have a scheduled payment due date that is after such time.

"<u>Parent Company</u>" means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

"<u>Participating Member State</u>" means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"<u>Participant</u>" has the meaning specified in Section 10.06(d).

"<u>Participant Register</u>" has the meaning specified in Section 10.06(d). "<u>Payment Recipient</u>" has the meaning assigned to it in Section 9.12(a).

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

"<u>Pension Funding Rules</u>" means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"<u>Pension Plan</u>" means any "employee pension benefit plan," within the meaning of Section 3(2) of ERISA (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by any Credit Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code or Section 302 of ERISA.

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"<u>Permitted</u> <u>Insurance Subsidiary Disposition</u>" means any Disposition of Equity Interests of an Insurance Subsidiary made in reliance on Section 7.05(vii).

"<u>Permitted Repo and Securities Lending Agreements</u>" means any Debt of the type described in clause (vii) of the definition thereof (a) incurred in the ordinary course of business by a Regulated Insurance Company to fund its short term liquidity requirements, (b) incurred in the ordinary course of business by a Regulated Insurance Company pursuant to an agreement under which assets that are ineligible to be pledged to secure Debt or a Swap Contract permitted hereunder are transferred to a third-party in exchange for either (i) assets or (ii) funds, the proceeds of which are used to acquire assets, that in either case are eligible to be pledged to secure such Debt or Swap Contract, or (c) incurred in the ordinary course of business by a Regulated Insurance Company to enhance yield on a portfolio of securities.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, exempted company, partnership, exempted limited partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any "employee benefit plan," within the meaning of Section 3(3) of ERISA, (other than a Multiemployer Plan) that is subject to ERISA, maintained for employees of the Borrower or any Subsidiary, or any such plan to which the Borrower or such Subsidiary is required to contribute on behalf of any of its employees or with respect to which the Borrower or such Subsidiary has any liability.

"<u>Plan of Reorganization</u>" has the meaning specified in Section 10.06(f).

"<u>Policies</u>" means all insurance policies and assumption certificates issued or to be issued (or filed pending current review by applicable Governmental Authorities) by any Regulated Insurance Company.

"<u>Prime Rate</u>" means the rate of interest per annum publicly announced from time to time by the Person acting as the Administrative Agent as its prime rate in effect at its principal office in New York City. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent or any Lender may make commercial loans or other loans at rates of interest at, above or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of such change.

"<u>Principal Payment Date</u>" means the last Business Day of each fiscal quarter of the Borrower, commencing with the first full fiscal quarter of the Borrower ending after the Restatement Effective Date.

"<u>Pro Forma Commission Adjustment</u>" means, for any period and with respect to any Person, the difference, which may be a positive or negative amount, between (i) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved

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by (or not prohibited by) the Applicable Insurance Regulatory Authority) that is newly executed during such period and (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has increased during such period, in each case the amount of commission of such Person, to the extent not included in determining Consolidated EBITDA for such period, calculated to include such newly executed commission agreement and to give effect to such modification to an existing commission agreement, as applicable, as though such commission agreement or such modification, as applicable, had been executed on the first day of such period and (ii) with respect to (x) each commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority) that expires or is otherwise terminated during such period, (y) each modification to an existing commission agreement pursuant to which the applicable rate of commission chargeable by such Person has decreased during such period and (z) each commission agreement subject to any Qualified Securitization Facility, in each case, the amount of commission of such Person, to the extent included in determining Consolidated EBITDA for such period, calculated to exclude such expired or otherwise terminated commission agreement, to give effect to such modification to an existing commission agreement, and to exclude such commission agreement subject to any Qualified Securitization Facility, as applicable, as though such commission agreement had expired or otherwise terminated, such modification had been executed or such commission agreement had become subject to any Qualified Securitization Facility, as applicable, on the first day of such period; <u>provided</u> that "Pro Forma Commission Adjustment" shall not include the amount of commissions actually received by such Person during such period.

"<u>Pro Forma Run-Rate Commission Adjustment</u>" means, for any period and without duplication, the difference, which may a be positive or negative amount, between (a) the amount of commissions of any Person that is not a Regulated Insurance Company under each relevant commission agreement (in the case of any commission agreement between or among the Borrower and its Subsidiaries or between or among Subsidiaries, if and only if it has been approved by (or not prohibited by) the Applicable Insurance Regulatory Authority), recalculated giving effect to the Run-Rate Gross Commissions for such period, and (b) the amount of commission actually received by such Person that is included in the calculation of Consolidated EBITDA for such period.

"<u>Pro Forma Run-Rate Premium Adjustment</u>" means, for any period and without duplication, the difference, which may be a positive or negative amount, between (a) the amount of premiums of any Person that is a Regulated Insurance Company under each relevant agreement, recalculated giving effect to the Run-Rate Gross Written Premiums for such period and (b) the amount of premium received by such Person included in the calculation of Consolidated EBITDA for such period.

"<u>Proceeding</u>" has the meaning specified in Section 10.04(b).

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Lender</u>" has the meaning specified in Section 6.02.

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"<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

"<u>QFC Credit Support</u>" has the meaning assigned to it in Section 10.21.

"<u>Qualified IPO</u>" means the initial underwritten public offering of common Equity Interests of the Borrower pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act of 1933, as amended.

"<u>Qualified Securitization Facility</u>" means any Securitization Facility or Receivables Financing Transaction, so long as: (a) all transfers or sales of any Securitization Assets in connection with any such Securitization Facility or Receivables Financing Transaction to any Person that is not a Subsidiary shall be for fair market value (as determined in good faith by the Borrower) and (b) the Outstanding Receivables Amount under all Qualified Securitization Facilities shall not at any time exceed $12,000,000.

"<u>Receivables Financing Transaction</u>" means any transaction or series of transactions entered into by the Borrower or any Subsidiary pursuant to which such party consummates a "true sale" of its receivables constituting commissions due under one or more commission agreements to a non-related third party on market terms as determined in good faith by the Borrower; <u>provided</u> that such Receivables Financing Transaction is (a) non-recourse to the Borrower and its Subsidiaries and their assets, other than any recourse solely attributable to a breach by the Borrower or any Subsidiary of representations, warranties and obligations that are customarily made by a seller in connection with a "true sale" of receivables on a non-recourse basis and (b) consummated pursuant to customary contracts, arrangements or agreements entered into with respect to the "true sale" of receivables on market terms for similar transactions.

"<u>Recipient</u>" means the Administrative Agent or any Lender. "<u>Register</u>" has the meaning specified in Section 10.06(c).

"<u>Refinancing Term Loans</u>" has the meaning specified in Section 2.01(a)(i)(B).

"<u>Regulated Insurance Company</u>" means any Subsidiary of the Borrower, whether now owned or hereafter formed or acquired, that is authorized or admitted to carry on or transact Insurance Business in any jurisdiction and is regulated by any Applicable Insurance Regulatory Authority.

"<u>Regulation T</u>" means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation U</u>" means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation X</u>" means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

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"<u>Reinsurance Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers, as reinsurers, assume liabilities under Policies issued by another insurance company or companies.

"<u>Reinsurance Threshold</u>" means an aggregate amount equal to the greater of (a) $12,000,000 and (b) 10.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, attorneys-in-fact, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Governmental</u> <u>Body</u>" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Removal Effective Date</u>" has the meaning specified in Section 9.06(b).

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30-day notice period has been waived.

"<u>Required Lenders</u>" means, at any time, Lenders having principal amount of Loans outstanding and unused Commitments representing more than 50% of the sum of the aggregate principal amount outstanding of the Loans and unused Commitments of all Lenders at such time; <u>provided</u> that (i) any time there are two (2) or more Unaffiliated Lenders, the Required Lenders shall be comprised of at least two (2) Unaffiliated Lenders; (ii) with respect to matters relating solely to the Revolving Commitments or Revolving Loans, including whether or not any condition to funding any Revolving Loan has been satisfied, "Required Lenders" shall mean Revolving Lenders having principal amount of Revolving Loans outstanding and unused Revolving Commitments representing more than 50% of the sum of the aggregate principal amount outstanding of the Revolving Loans and unused Revolving Commitments of all Revolving Lenders at such time; and (iii) with respect to matters relating solely to the Term Loans (including with respect to any modification or waiver of, or consent to departure from, any mandatory prepayment obligation or postponement or reduction of the amount of, or a postponement of any date scheduled for the payment of principal of the Term Loans), "Required Lenders" shall mean Lenders having principal amount of Term Loans outstanding representing more than 50% of the aggregate principal amount outstanding of all Term Loans at such time. The Commitment and any Loans outstanding of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

"<u>Required Prepayment Amount</u>" means, in connection with the receipt by the Borrower or its Subsidiaries of Net Proceeds pursuant to a Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, a percentage of such Net Proceeds equal to (a) subject to clause (b) of this definition, 100%, or (b) if, as of the last day of the most recent fiscal period of the Borrower for which financial statements were furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, ended prior to the date such Net Proceeds are received, the Consolidated Senior Debt to Capitalization Ratio, on a pro forma basis after giving effect to any mandatory prepayment required pursuant to Section 2.03(b)(i), is (1) greater than or equal to 15%, but less than 20%, 50.0% or (2) less than 15%, 0%.

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"<u>Resignation Effective Date</u>" has the meaning specified in Section 9.06(a).

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" of any Person means any executive officer, president, executive vice president, director, a Financial Officer or any other officer of such Person, or in the case of any such Person that is a limited partnership or exempted limited partnership, any executive officer, president, executive vice president, director, a Financial Officer or any other officer of its general partner or an entity that has authority to act on behalf of such general partner in its capacity as general partner of such Person in respect of this Agreement. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower.

"<u>Restatement Effective Date</u>" means September 26, 2024.

"<u>Restricted Payment</u>" means (a) any dividend or other distribution (whether in cash, securities or other property) by a Person or any of its Subsidiaries with respect to their respective Equity Interests, or (b) any payment (whether in cash, securities or other property) by a Person or any of its Subsidiaries, including any sinking fund or similar deposit, (i) on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any of their respective Equity Interests, or (ii) on account of any return of capital to such Person's shareholders, partners or members with respect to their respective Equity Interests (or the equivalent Persons thereof).

"<u>Retrocession Agreement</u>" means any agreement, contract, treaty or other arrangement whereby one or more insurers or reinsurers, as retrocessionaires, assume liabilities of reinsurers under a Reinsurance Agreement or other retrocessionaires under another Retrocession Agreement.

"<u>Revolving Availability Period</u>" means the period from and including the Restatement Effective Date to, but excluding, the Revolving Commitment Termination Date.

"<u>Revolving Borrowing</u>" means a Borrowing consisting of simultaneous Revolving Loans of the same Type and, in the case of SOFR Loans, having the same Interest Period.

"<u>Revolving Commitment</u>" means, as to each Lender, its obligation to make loans to the Borrower pursuant to Section 2.01(b)(ii) in an aggregate principal amount not to exceed the amount set forth opposite such Lender's name on Schedule 2.01 under the title "Revolving Commitment", as such commitment may be reduced or increased from time to time pursuant to Section 2.12 or 10.06 or reduced from time to time pursuant to Section 2.13. The amount of such Lender's Revolving Commitment is set forth on Schedule 2.01 under the title "Revolving Commitment" or in the Assignment and Assumption or Incremental Agreement pursuant to which such Lender shall have assumed its Revolving Commitment. On the Restatement Effective Date, the aggregate Revolving Commitments equal $50,000,000.

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"<u>Revolving Commitment Termination Date</u>" means September 26, 2029 (except that, if such date is not a Business Day, the Revolving Commitment Termination Date shall be the next preceding Business Day).

"<u>Revolving Lender</u>" means the Persons listed on Schedule 2.01 as having a Revolving Commitment and any other Person that shall have become party hereto holding a Revolving Commitment or Revolving Loans pursuant to an Assignment and Assumption or an Incremental Agreement, other than any such Person that ceases to be a party hereto or ceases to hold a Revolving Commitment or Revolving Loans pursuant to an Assignment and Assumption.

"<u>Revolving Loan</u>" means a loan made by any Revolving Lender to the Borrower pursuant to Section 2.01(b).

"<u>Run-Rate Gross Commissions</u>" means, with respect to any Person for any period, the pro forma amount of gross commissions due to such Person under any duly executed contract.

"<u>Run-Rate Gross Written Premium</u>" means, with respect to any Person for any period, the pro forma amount of gross written premium due to such Person under any duly executed contract (including, without limitation, any binder agreement or sub-agent agreement).

"<u>S&P</u>" means Standard & Poor's Financial Services Inc., a division on S&P Global Ratings.

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by, or otherwise the subject of any sanctions administered or enforced by, the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, His Majesty's Treasury of the United Kingdom, the European Union, any European Union member state, the Canadian government, or any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries, (b) any Person located in, resident in or organized under the laws of an Embargoed Jurisdiction, (c) any government that is itself the subject or target of Sanctions or (d) any Person owned or controlled by a Person described in the foregoing clauses (a), (b) or (c).

"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or the Canadian government, (b) the United Nations Security Council, (c) the European Union or His Majesty's Treasury of the United Kingdom (including any sanctions legislation extended to the Cayman Islands pursuant to any Order in Council of His Majesty's Privy Council in the United Kingdom or other relevant sanctions authority), (d) the Cayman Islands Monetary Authority or (e) any other Governmental Authority with jurisdiction over the Borrower or any of its Subsidiaries.

"<u>SAP</u>" means the accounting procedures and practices prescribed or permitted by the Applicable Insurance Regulatory Authority or the NAIC.

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"<u>SEC</u>" means the Securities and Exchange Commission.

"<u>Securitization Assets</u>" means (a) accounts receivable constituting commissions due under one or more commission agreements and other assets related thereto subject to a Qualified Securitization Facility and the proceeds thereof and (b) contract rights, lockbox accounts and records with respect to such accounts receivable and any other assets customarily transferred together with accounts receivable in an accounts receivable securitization financing.

"<u>Securitization Facility</u>" means any transaction or series of securitization financings that may be entered into by the Borrower or any Subsidiary pursuant to which the Borrower or any such Subsidiary may sell, convey or otherwise transfer, or may grant a security interest in, Securitization Assets to either (a) a Person that is not the Borrower or a Subsidiary or (b) a Securitization Subsidiary that in turn sells such Securitization Assets to a Person that is not the Borrower or a Subsidiary, or may grant a security interest in, any Securitization Assets of the Borrower or any of its Subsidiaries that are subject to such Securitization Facility.

"<u>Securitization Subsidiary</u>" means any Subsidiary formed for the purpose of, and that solely engages only in one or more Qualified Securitization Facilities and other activities reasonably related thereto.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Loan</u>" means a Loan bearing interest based on Adjusted Term SOFR. All SOFR Loans shall be denominated in Dollars.

"<u>Specified Transaction</u>" means: (a) solely for the purposes of determining the applicable cash balance, any contribution of capital, including as a result of a Qualified IPO, to the Borrower, in each case, in connection with an acquisition or Investment; (b) any designation of operations or assets of the Borrower or a Subsidiary as discontinued operations (except that operations or assets of the Borrower or a Subsidiary that are held for sale or are subject to an agreement to dispose of such operations or assets may, at the Borrower's election (in its sole discretion), be designated as discontinued operations under this clause (b) only when and to the extent such operations are actually disposed of); (c) any acquisition, investment or other similar transaction, in each case, that results in a Person becoming a Subsidiary; (d) any purchase or other acquisition of a business of any Person, of assets constituting a business unit, line of business or division of any Person; (e) any Non-OC Asset Sale or Casualty Event (i) that results in a Subsidiary ceasing to be a Subsidiary of the Borrower or (ii) of a business, business unit, line of business or division of the Borrower or a Subsidiary, in each case whether by merger, amalgamation, consolidation or otherwise; (f) any operational changes identified by the Borrower that have been made by the Borrower or any Subsidiary during the applicable period; (g) any borrowing of New Loans; or (h) any Disposition, Restricted Payment or other transaction that by the terms of this Agreement requires a financial ratio to be calculated on a pro forma basis.

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"<u>Statutory Statement</u>" means a statement of the condition and affairs of the Borrower or an Insurance Subsidiary, as applicable, in each case prepared in accordance with SAP, and filed with the Applicable Insurance Regulatory Authority.

"<u>Subsidiary</u>" of a Person means any corporation, exempted company, partnership, exempted limited partnership, limited liability company, association, joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency, including the power to cause the termination, removal or replacement of a manager or general partner, whether or not such contingency has occurred) are at the time beneficially owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

"<u>Supported QFC</u>" has the meaning assigned to it in Section 10.21.

"<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, credit derivatives, total return swaps, futures, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or other derivatives or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any Master Agreement, including any such obligations or liabilities under any Master Agreement.

"<u>Swap Termination Value</u>" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender), in each case expressed as a negative number to the extent the termination value is payable to or the mark-to-market value is in favor of the Borrower or Subsidiary or as a positive number to the extent the termination value is payable to or the market-to-market value is in favor of the applicable counterparty to the Borrower or Subsidiary under such Swap Contract.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

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"<u>Term Benchmark Loan</u>" means any SOFR Loan.

"<u>Term Loan Commitment</u>" means, as to each Lender, its obligation to make term loans to the Borrower, by continuing its Continuing Restatement Loans and funding Refinancing Loans pursuant to Section 2.01(a)(i) in an aggregate principal amount not to exceed the amount set forth opposite such Lender's name on Schedule 2.01 under the titles "Term Loan Commitment". As of the Restatement Effective Date, the aggregate amount of the Term Loan Commitments is $125,000,000.

"<u>Term Loan Lender</u>" means a lender that has a Term Loan Commitment or that holds a Term Loan or a New Loan.

"<u>Term Loan</u>" means each Continuing Restatement Loan, each Refinancing Term Loan and each New Loan (if any).

"<u>Term SOFR</u>" means, for any Interest Period, the Term SOFR Reference Rate on the day (such day, the "<u>Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period; <u>provided</u>, <u>however</u>, that if as of 5:00 p.m. (New York City time) on any Term SOFR Determination Day the Term SOFR Reference Rate for such Interest Period has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such Interest Period as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such Interest Period was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Term SOFR Determination Day; <u>provided</u>, if Term SOFR determined as provided above shall ever be less than zero, then Term SOFR shall be deemed to be zero.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Threshold Amount</u>" means $3,600,000.

"<u>Trade Date</u>" means, as to a particular assignment or participation of an interest hereunder to a Person, the date on which the applicable Lender enters into a binding agreement to sell and assign or participate all or a portion of its rights and obligations under this Agreement to such Person.

"<u>Transaction Costs</u>" means all costs, fees and expenses incurred in connection with this Agreement, the credit facility established hereby and the other Transactions.

"<u>Transactions</u>" means the (a) execution, delivery and performance by each Credit Party of the Loan Documents to which it is to be a party, (b) borrowing of Loans hereunder and (c) payment of the Transaction Costs.

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"<u>Type</u>" means, with respect to a Loan, its character as a SOFR Loan or an ABR Loan.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unaffiliated Lenders</u>" means Lenders who are not Affiliates or Approved Funds of one another.

"<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

"<u>Unsubordinated Debt</u>" means Debt of a Subsidiary of the Borrower owed to a Person other than the Borrower or any of its Subsidiaries that is not expressly subordinated to the prior payment of the Obligations on terms that have been consented to by the Administrative Agent in its reasonable discretion (such consent not to be unreasonably withheld or delayed, it being understood that the terms of such subordination will permit payments to be made on such Debt if no Default or Event of Default has occurred and is continuing), in each case excluding (i) Obligations and any Guarantees of any Obligations, and (ii) Operating Debt other than Operating Debt incurred under clause (i)(B) of the definition thereof.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Person</u>" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" has the meaning assigned to it in Section 10.21.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in Section 3.01(g)(ii)(B)(3).

"<u>Weighted Average Life to Maturity</u>" means, when applied to any Debt at any date, the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then-outstanding principal amount of such Debt.

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"<u>wholly-owned</u>" means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (i) director's qualifying shares and (ii) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly-owned Subsidiaries of such Person.

"<u>Withholding Agent</u>" means the Borrower and the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.02 <u>Other Interpretive Provisions</u>**. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "<u>include</u>", "<u>includes</u>" and "<u>including</u>" shall be deemed to be followed by the phrase "<u>without limitation</u>". The word "or" is always used inclusively herein (for example, the phrase "A or B" means "A or B or both", not "either A or B but not both") when not used in an "either . . . or" construction. The word "<u>will</u>" shall be construed to have the same meaning and effect as the word "<u>shall</u>". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organizational Document and the Loan Documents) shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns and, in the case of any Governmental Authority, any other Governmental Authority succeeding to its functions, (iii) the words "<u>hereto</u>", "<u>herein</u>", "<u>hereof</u>" and "<u>hereunder</u>", and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time and (vi) the words "<u>asset</u>" and "<u>property</u>" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the computation of periods of time from a specified date to a later specified date, the word "<u>from</u>" means "<u>from and including</u>"; the words "to" and "<u>until</u>" each mean "<u>to but excluding</u>"; and the word "<u>through</u>" means "<u>to and including</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, in no event shall the Guarantors be liable for any obligations of the Borrower under this Agreement or any other Loan Document except as set forth in the Guaranty.

**Section 1.03 <u>Accounting Terms</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Generally</u>*. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the audited consolidated balance sheets of the Borrower and its Subsidiaries, and the related statements of income, stockholders' equity and cash flows of the Borrower and its Subsidiaries, for the fiscal year ended December 31, 2023 and as most recently delivered prior to the Restatement Effective Date, except as otherwise specifically prescribed herein. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Debt of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 (Financial Instruments) and related codifications on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Changes in GAAP, IFRS or the NAIC Rules</u>*. If at any time any change in GAAP or IFRS or the NAIC rules, as applicable (each change, an "<u>Accounting Change</u>") would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such Accounting Change (subject to the approval of the Required Lenders); <u>provided</u> that until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP or IFRS or the NAIC rules, as applicable, without giving effect to such Accounting Change and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such Accounting Change.

**Section 1.04 <u>Rounding</u>**. Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

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**Section 1.05 <u>Times of Day</u>**. Unless otherwise specified, all references herein to times of day shall be references to Central time (daylight or standard, as applicable).

**Section 1.06 <u>Timing of Payment or Performance</u>**. When payment of any obligation is stated to be due or the performance of any covenant, duty or obligation is required on a day which is not a Business Day, the date of such payment (other than as described in the definition of "Interest Period") or performance shall extend to the immediately succeeding Business Day, and, in the case of any payment accruing fee or interest, such fee or interest thereon shall be payable for the period of such extension.

**Section 1.07 <u>Rates</u>**. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to ABR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, ABR, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of ABR, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain ABR, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR or any other Benchmark, or any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**Section 1.08 <u>Divisions</u>**. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.

**Section 1.09 <u>[Reserved]</u>**.

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**Section 1.10 <u>Pro Forma Effect</u>**. Whenever pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by a Financial Officer of the Borrower and may include the amount of "run rate" cost savings, operating expense reductions and synergies projected by the Borrower in good faith to result from, or relating to, any Specified Transaction (including acquisitions and investments occurring prior to the Restatement Effective Date) which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary to realize such cost savings, operating expense reductions and synergies are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) (calculated on a pro forma basis as though such cost savings, operating expense reductions and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period and "run rate" means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Restatement Effective Date, net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent applicable period in which the effects thereof are expected to be realized) relating to such Specified Transaction; <u>provided</u> that (a) such amounts are reasonably identifiable, (b) such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) no later than twenty-four (24) months after the date of such Specified Transaction (or actions undertaken or implemented prior to the consummation of such Specified Transaction) and (c) no amounts shall be added to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period; <u>provided</u> that such "run-rate" cost savings, synergies and operating expense reductions added back pursuant to this Section 1.10 in any applicable period, when aggregated with the aggregate amount of any increase for such period in Consolidated EBITDA pursuant to clauses (a)(7) and (a)(8) of the definition of "Consolidated EBITDA", in each case with respect to such period, shall not exceed in the aggregate 20% of Consolidated EBITDA for such period (as calculated prior to giving effect to any such adjustments).

**Section 1.11 <u>Limited Condition Investments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, calculating any applicable ratio in connection with determining whether (i) the incurrence of any Debt (including in reliance on Section 7.01(xi)), the creation of any Lien (including for purposes of the last proviso to Section 7.01), the making of any Investment (including as permitted by Section 7.03) is permitted or borrowing of a New Loan under Section 2.12, or (ii) the incurrence of any Debt in reliance on Section 7.01(xi) requires prepayment of the Loans pursuant to Section 2.03(b)(ii) or Section 7.01(xi), in each case in connection with a Limited Condition Investment, the date of determination of such ratio or other provisions shall, at the option of the Borrower (the Borrower's election to exercise such option in connection with any Limited Condition Investment, an "<u>LCT Election</u>," which LCT Election may be in respect of one or more of clauses (i) and (ii) above) be deemed to be the date the definitive agreements (or other relevant definitive documentation) for such Limited Condition Investment are entered into (each a "<u>LCT Test Date</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If on a pro forma basis, after giving effect to such Limited Condition Investment and the other transactions to be entered into in connection therewith (including any incurrence or issuance of Debt and the use of proceeds thereof), if such Limited Condition Investment had occurred at the beginning of the most recent fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, ending prior to the applicable LCT Test Date, the Borrower could have (i) incurred such Debt, created such Liens, made any Investment, borrowed a New Loan or otherwise taken such action and/or (ii) incurred such Debt without having to prepay the Loans pursuant to Section 2.03(b)(ii) and/or Section 7.01(xi), in each case on such LCT Test Date in compliance with the applicable ratios or other provisions, then the Borrower shall be deemed to have complied with such ratios or other provisions and the Borrower will not be required to repay the Loans as provided in Section 2.03(b)(ii) or 7.01(xi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, if, following the LCT Test Date, any of such ratios are exceeded or breached as a result of fluctuations in such ratio (including due to fluctuations in any of the components of such ratio) at or prior to the consummation of the relevant Limited Condition Investment, such ratios will not be deemed to have been exceeded or failed to have been satisfied as a result of such fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Borrower has made an LCT Election for any Limited Condition Investment, then in connection with any subsequent calculation of any ratio, basket availability or compliance with any other provision hereunder, including Section 2.03(b)(ii) or 7.01(xi) (other than actual compliance with Section 7.11), on or following the relevant LCT Test Date and prior to the earliest of the date on which such Limited Condition Investment is consummated, the date that the definitive agreement for such Limited Condition Investment is terminated or expires without consummation of such Limited Condition Investment, any such ratio, basket or compliance with any other provision hereunder shall be calculated on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date; <u>provided</u> that, with respect to the determination of whether a Restricted Payment is permitted pursuant to Section 7.06(vii), compliance with any applicable ratio or basket in such Section shall be calculated both (i) on a pro forma basis assuming such Limited Condition Investment and other transactions in connection therewith (including any incurrence or issuance of Debt, and the use of proceeds thereof) had been consummated on such LCT Test Date, and (ii) as if such Limited Condition Investment and related transactions had not been consummated on such LCT Test Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, if the Borrower or any Subsidiary (i) incurs Debt or creates Liens in connection with any Limited Condition Investment under a ratio-based basket and (ii) incurs Debt or creates Liens in connection with such Limited Condition Investment under a non-ratio-based basket, then the applicable ratio will be calculated with respect to any such action under the applicable ratio-based basket or other provision without regard to any such action under such non-ratio-based basket made in connection with such Limited Condition Investment.

**ARTICLE II.** 

**THE COMMITMENTS AND LOANS** 

**Section 2.01 <u>Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Term Loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon satisfaction of the conditions precedent to the effectiveness of this Agreement on the Restatement Effective Date, (A) each Term Loan Lender that holds Loans (as defined in the Existing Credit Agreement) denominated in Dollars and outstanding under the Existing Credit Agreement on the Restatement Effective Date ("<u>Continuing Restatement Loans</u>") shall fund to the Borrower term loans by continuing such Continuing Restatement Loans, which shall remain outstanding and constitute Term Loans hereunder (having initial Interest Periods as the interest period applicable thereto under the Existing Credit Agreement as of the Restatement Effective Date) and (B) each Term Loan Lender shall make term loans to the Borrower, denominated in Dollars ("<u>Refinancing Term Loans</u>") for the remaining amount of its Term Loan Commitment after giving effect to the Continuing Restatement Loans. Proceeds of the Refinancing Term Loans shall be used, on the Restatement Effective Date, to (i) repay in full all Restatement Euro Loans (as defined in the Existing Credit Agreement) outstanding on the Restatement Effective Date, (ii) pay accrued and unpaid interest on such Euro Restatement Loans, and (iii) to the extent of any remaining proceeds after repayment of the Restatement Euro Loans and interest thereon, for general corporate purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Immediately after giving effect to the effectiveness of this Agreement on the Restatement Effective Date and the funding by the Term Loan Lenders of their respective Term Loan Commitments (including by continuing their Continuing Restatement Loans as provided in clause (i)(A) above and making their Refinancing Term Loans as provided in clause (i)(B) above), the Term Loan Commitments shall terminate and the aggregate outstanding principal amount of the Term Loans shall be $125,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Term Loans may be ABR Loans or SOFR Loans, as further provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Revolving Loans</u>.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth herein and in the applicable Incremental Agreement with respect to the applicable Commitment Increase, each Revolving Lender severally agrees to make revolving loans to the Borrower from time to time on any Business Day during the Revolving Availability Period in an aggregate principal amount that will not result in (a) such Lender's Revolving Loans exceeding such Lender's Revolving Commitment or (b) the total principal amount of Revolving Loans outstanding exceeding the aggregate Revolving Commitments of all Revolving Lenders. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Revolving Loans may be ABR Loans or SOFR Loans, as further provided herein.

**Section 2.02 <u>Borrowings, Conversions and Continuations of Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Term Benchmark Loans shall be made upon the Borrower's irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested

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date of any Borrowing of, conversion to or continuation of, Term Benchmark Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of SOFR Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each Borrowing of ABR Loans shall be in an aggregate amount equal to $1,000,000 or a larger multiple of $100,000; <u>provided</u> that a Borrowing may be in an aggregate amount that is equal to the entire unused balance of the applicable Commitments. Each conversion to or continuation of SOFR Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof (or if less, the full remaining balance of the then-outstanding Loans). Each Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to another or a continuation of Term Benchmark Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, and (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be continued as Loans having an Interest Period of one month. Any such automatic continuation shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Term Benchmark Loans. If the Borrower requests a Borrowing of, conversion to or continuation of Term Benchmark Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month. If the Borrower requests a Borrowing of Loans but does not specify a Type, it will be deemed to have specified ABR Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its pro rata share of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic continuation of Loans described in the preceding subsection. Each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's Office not later than 1:00 p.m. on the applicable Borrowing Date. Upon satisfaction of the applicable conditions set forth in Sections 4.01 and 4.02, the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of Bank of Montreal with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower. Each Lender may, at its option, make any Loan available to the Borrower by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; <u>provided</u> that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided herein, a Term Benchmark Loan may be continued or converted only on the last day of an Interest Period for such Term Benchmark Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Term Benchmark Loans upon determination of such interest rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same type, there shall not be more than ten Interest Periods in effect with respect to Loans.

**Section 2.03 <u>Optional and Mandatory Prepayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Optional</u>*. The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty; <u>provided</u> that: (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to any date of prepayment of any Term Benchmark Loans and 11:00 a.m. on the date of prepayment with respect to ABR Loans; and (ii) any prepayment of Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each such notice shall specify the date and amount of such prepayment, the Loans to be prepaid (e.g., whether Term Loans or Revolving Loans), and the Type(s) of such Loans and, if any Term Benchmark Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein; <u>provided</u> that such notice may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any prepayment of a Term Benchmark Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Subject to Section 2.11, each such optional prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages, as directed by the Borrower. Any amounts of Term Loans prepaid pursuant to this Section 2.03(a) may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Mandatory</u>*. The Borrower shall make prepayments from time to time in accordance with this Section 2.03(b). Each such mandatory prepayment shall be without premium or penalty; <u>provided</u> that the Borrower shall reimburse the Lenders for any redeployment costs in accordance with Section 3.05. Any amounts prepaid pursuant to this Section 2.03(b) may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Non-OC Asset Sales, Casualty Events and Non-OC Reinsurance Transactions*. Within five (5) Business Days after (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Term Benchmark Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect of any Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, the Borrower shall prepay principal amount of Loans in an aggregate amount equal to the Required Prepayment Amount; <u>provided</u> that no prepayment of the Loans shall be required pursuant to this clause (b) unless, and only to the extent, that (A) in the case of a Non-OC Asset Sale or Casualty Event, the aggregate Net Proceeds of all Non-OC Asset Sales or all Casualty Events, as applicable, consummated or occurring after the Restatement Effective Date exceeds the Asset Sale Threshold or (B) in the case

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of a Non-OC Reinsurance Transaction, the aggregate Net Proceeds of all such Non-OC Reinsurance Transactions consummated after the Restatement Effective Date exceeds the Reinsurance Threshold, in each case of (A) and (B), in which case only the amount exceeding the Required Prepayment Amount of such Asset Sale Threshold or the Reinsurance Threshold, as applicable, shall be required to be prepaid. Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the applicable Person whose property was the subject of the Non-OC Asset Sale, Casualty Event or Non-OC Reinsurance Transaction, as applicable, may reinvest all or any portion of such Net Proceeds in assets useful in the business of the Borrower or any Subsidiary so long as, within 12 months after the receipt of such Net Proceeds, such reinvestment shall have been consummated, and if all or any portion of such Net Proceeds have been committed to be reinvested within such 12-month period but such reinvestment has not yet been consummated, such Person shall have an additional six months thereafter to consummate such reinvestment (it being understood and agreed that any such Net Proceeds not so reinvested by the conclusion of the 12th month or such additional six-month period, if applicable, shall be applied to the prepayment of the Loans as set forth in this Section 2.03(b) by not later than five (5) Business Days (or at the Borrower's election, to the extent the Borrower intends to prepay outstanding Term Benchmark Loans and the Borrower has deposited the amount of any prepayment required to be made pursuant to this Section 2.03(b)(i) in a segregated account on terms and conditions reasonably acceptable to the Administrative Agent pending such prepayment, on the last day of the first Interest Period ending after) the conclusion of the 12th month or such additional six-month period, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Indebtedness</u>*. Within five (5) Business Days after any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect of the issuance of any Debt, other than the issuance of any Debt permitted pursuant to Section 7.01 (except as otherwise provided in Section 7.01(xi)), the Borrower shall prepay the Loans in an aggregate principal amount equal to 100% of such Net Proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Sales of Insurance Subsidiaries</u>*. If the aggregate consideration in respect of Permitted Insurance Subsidiary Dispositions consummated or occurring after the Restatement Effective Date shall exceed the lesser of (i) $50,000,000 and (ii) 15% of Consolidated Net Worth, then, within five (5) Business Days after any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in connection with any Permitted Insurance Subsidiary Disposition consummated or occurring after the time such threshold is exceeded (including if such threshold is exceeded in connection with the same Permitted Insurance Subsidiary Disposition), the Borrower shall prepay the Loans in an aggregate principal amount equal to 100% of such Net Proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Minimum Amount; Adverse Consequences</u>*. Notwithstanding the foregoing provisions of this Section 2.03(b): (A) the Borrower shall not be obligated to make any prepayment required by clause 2.03(b)(i) above unless and until the aggregate Required Prepayment Amount of Net Proceeds from all such Non-OC Assets Sales, Casualty Events and Non-OC Reinsurance Transactions, after giving effect to the reinvestment rights set forth therein, exceeds $1,000,000 in any fiscal year of the Borrower and (B) the Borrower shall not be obligated to make any prepayment required by clauses 2.03(b)(i), (ii) or (iii) to

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the extent that applying, directly or indirectly, any amounts to repay any Loan as required by any such clause would (1) in the case of Net Proceeds received by the Borrower or a Subsidiary organized in a non-Cayman jurisdiction, result in material adverse tax consequences to the Borrower, any of its Subsidiaries or any of their respective direct or indirect parents, (2) not be permitted by applicable Law or regulation (including regulations of any Applicable Insurance Regulatory Authority or similar governmental authority located in the jurisdiction in which any Regulated Insurance Company is domiciled, regarding financial assistance, corporate benefit, restrictions on upstreaming of cash intra-group and the fiduciary and statutory duties of the directors of the relevant subsidiaries), as reasonably determined by the Borrower in good faith, or (3) not be permitted under the Organizational Documents of the Borrower or any of its Subsidiaries (including as a result of minority ownership) but only to the extent such Organizational Documents prohibited such prepayment prior to contemplation of the event resulting in the prepayment requirement set forth in this Section 2.03; <u>provided</u> that (A) the Borrower shall use commercially reasonable efforts to obtain approvals from any Applicable Insurance Regulatory Authority or similar Governmental Authority to upstream Net Proceeds for the direct or indirect application thereof in accordance with clause 2.03(b)(i), (ii) or (iii) (but only for so long as such approvals are pending or have not been denied), (B) the Borrower and its Subsidiaries shall use commercially reasonable efforts to permit repatriation of the proceeds subject to such prepayments in order to effect such prepayments without incurring material adverse tax consequences, (C) the Borrower and its Subsidiaries shall use commercially reasonable efforts to amend any Organizational Documents to permit such prepayment if it would otherwise be prohibited by such Organizational Documents, and (D) if the application of such Net Proceeds (1) is no longer prohibited by applicable Law or regulation or if the approvals referenced in clause (A) have been obtained, (2) would no longer result in material adverse tax consequences (as determined by as determined by the Borrower in good faith) or (3) is no longer prohibited by the Organizational Documents of the Borrower or such Subsidiary, such Net Proceeds will be promptly (and in any event not later than five Business Days after such repatriation) applied to the prepayment of the Loans as required by Section 2.03(b)(i), (ii) or (iii). The non-application of any mandatory prepayment amounts as a result of this Section 2.03(b)(iv) will not constitute a Default or an Event of Default and such amounts shall be available for use in the business of the Borrower and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>Application of Mandatory Prepayment Proceeds</u>.* Subject to Section 2.11, each mandatory prepayment pursuant to this Section 2.03(b) shall be applied first to the Term Loans of the Lenders in accordance with their respective Applicable Percentages (excluding, for the purpose of determining such Applicable Percentage, the principal amount of the Revolving Loans and Revolving Commitments at such time), as directed by the Borrower, or if not so directed, to pay installments of the principal amount of the Term Loans as set forth in Section 2.04(a) in direct chronological order of maturity, and then to the outstanding principal amount of Revolving Loans (without reduction of the Revolving Commitments). In connection with any prepayment pursuant to this Section 2.03(b), the Borrower shall provide a notice to the Administrative Agent specifying the amount of, and the date on which the Borrower intends to make, such prepayment. The Administrative Agent will promptly notify each Lender of such prepayment notice and of such Lender's share thereof. Each such Lender may reject all (but not less than all) of its Applicable

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Percentage of any such prepayment (such declined amounts, the "<u>Declined</u> <u>Proceeds</u>") of Loans required to be made pursuant to this Section 2.03(b) by providing notice to the Administrative Agent at or prior to the time of such prepayment. The aggregate amount of all Declined Proceeds shall be retained by the Borrower and may be used for any business purpose of the Borrower and its Subsidiaries.

**Section 2.04 <u>Repayment of the Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall, on each Principal Payment Date, repay to the Administrative Agent, for the ratable account of the Term Loan Lenders, an aggregate principal amount of the Term Loans expressed as a percentage of the sum of the aggregate principal amount of the Term Loans made in accordance with Section 2.01(a)(i) set forth in the table below for such Principal Payment Date (subject to (i) reduction in connection with prepayments of Term Loans as provided in Section 2.03 and (ii) increase in connection with the making of any New Loans pursuant to Section 2.12), together with accrued and unpaid interest on such principal amount repaid on such Principal Payment Date (but excluding any interest accrued on such Principal Payment Date).

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| | |
|:---|:---|
| **Principal Payment Date** | **Principal Payment Amount** |
| For each Principal Payment Date occurring after the Restatement Effective Date and on or prior to the Principal Payment Date occurring on the last Business Day of the fourth full fiscal quarter of the Borrower ending after the Restatement Effective Date | 0.000% |
| For each Principal Payment Date occurring on or after the Principal Payment Date occurring on the last Business Day of the fifth full fiscal quarter of the Borrower and on or prior to the Principal Payment Date occurring on the last Business Day of the eighth full fiscal quarter of the Borrower ending after the Restatement Effective Date | 0.625% |
| For each Principal Payment Date occurring on or after the Principal Payment Date occurring on the last Business Day of the ninth full fiscal quarter of the Borrower ending after the Restatement Effective Date until the Maturity Date | 1.25% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The remaining aggregate principal balance of the Term Loans will be repayable on the Maturity Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The aggregate principal balance of all Revolving Loans will be repayable on the Maturity Date.

**Section 2.05 <u>Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of paragraph (b) below, (i) each ABR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the ABR, plus the Applicable Rate and (ii) each SOFR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to Adjusted Term SOFR for such Interest Period, plus the Applicable Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuance of an Event of Default pursuant to Section 8.01(a), to the fullest extent permitted by applicable Laws, such amounts as are then due and payable hereunder and unpaid shall bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Elections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Elections by Borrower for Borrowings. Subject to Section 2.01(a)(i)(A) and Section 2.02, the Loans comprising each Borrowing initially shall be of the Type specified in the applicable Loan Notice and, in the case of a SOFR Borrowing, shall have the initial Interest Period specified in such Loan Notice. Thereafter, the Borrower may elect to convert such Borrowing to a Borrowing of a different Type or to continue such Borrowing as a Borrowing of the same Type and, in the case of a SOFR Borrowing, may elect the Interest Period therefor, all as provided in this Section 2.05(d). The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the applicable Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notice of Elections. Each such election pursuant to this Section shall be made upon the Borrower's irrevocable notice to the Administrative Agent. Each such notice shall be in the form of a written Interest Election Request, appropriately completed and signed by a Responsible Officer of the Borrower, or may be given by telephone to the Administrative Agent (if promptly confirmed in writing by delivery of such a written Interest Election Request consistent with such telephonic notice) and must be received by the Administrative Agent not later than the time that a Borrowing Request would be required under Section 2.02 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Content of Interest Election Requests. Each Interest Election Request pursuant to this Section shall specify the following information in compliance with Section 2.02:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (C) and (D) below shall be specified for each resulting Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) whether the resulting Borrowing is to be an ABR Borrowing or SOFR Borrowing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if the resulting Borrowing is a SOFR Borrowing, the Interest Period therefor after giving effect to such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notice by Administrative Agent to Lenders. The Administrative Agent shall advise each applicable Lender of the details of an Interest Election Request and such Lender's portion of such resulting Borrowing no less than one Business Day before the effective date of the election made pursuant to such Interest Election Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Failure to Deliver an Interest Election Request; Events of Default. If the Borrower fails to deliver a timely and complete Interest Election Request with respect to a SOFR Borrowing prior to the end of the Interest Period therefor, then, unless such SOFR Borrowing is repaid as provided herein, the Borrower shall be deemed to have selected that such SOFR Borrowing shall automatically be continued as a SOFR Borrowing with an Interest Period of one month at the end of such Interest Period. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as such Event of Default is continuing (1) no outstanding Borrowing may be converted to or continued as a SOFR Borrowing and (2) unless repaid as provided herein, each SOFR Borrowing shall automatically be converted to an ABR Borrowing at the end of the Interest Period therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Term SOFR Conforming Changes</u>. In connection with the use or administration of Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

**Section 2.06 <u>Fees</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee (the "<u>Commitment Fee</u>") on the average daily unused amount of the Revolving Commitment of such Revolving Lender, which shall accrue at a rate per annum equal to the Applicable Rate during the period from and including the Closing Date to but

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excluding the Revolving Commitment Termination Date. Accrued Commitment Fees shall be payable in arrears on the last day of each March, June, September and December, commencing on the first such date to occur after the date hereof, and on the Revolving Commitment Termination Date. For purposes of computing the Commitment Fee, the Revolving Commitment of any Revolving Lender shall be deemed to be used as of any time to the extent of the aggregate principal amount of its Revolving Loans outstanding at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall pay to the Administrative Agent for its account such fees as shall have been separately agreed upon between the Borrower and the Administrative Agent in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower shall pay to each Arranger for its account such fees as shall have been separately agreed upon between the Borrower and such Arranger in writing in the amounts and at the times so agreed. All such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

**Section 2.07 <u>Computation of Interest and Fees.</u>** All computations of fees and interest shall be made on the basis of a year of 360 days (or in the case of interest computed by reference to the ABR at times when the ABR is based on the Prime Rate, such interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year)) and actual days elapsed (which results in more fees and interest being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; <u>provided</u> that any Loan that is repaid on the same day on which it is made shall bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

**Section 2.08 <u>Evidence of Debt</u>**. The Borrowings made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Borrowings made by the Lenders and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type, amount and maturity of its Loans and payments with respect thereto.

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**Section 2.09 <u>Payments Generally; Administrative Agent</u><u>'</u><u>s</u> <u>Clawback</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>General</u>*. All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Clawback</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Funding by Lenders; Presumption by Administrative Agent</u>.* Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Loans that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower agrees to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Payments by the Borrower; Presumptions by Administrative Agent</u>.<u> </u>*Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and

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may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

A notice of the Administrative Agent to any Lender or Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Failure to Satisfy Conditions Precedent</u>.* If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Obligations of Lenders Several</u>.* The obligations of the Lenders hereunder to make Loans and payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender to make any Loan or payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under Section 10.04(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Funding Source</u>.* Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan or other funding obligation in any particular place or manner.

**Section 2.10 <u>Sharing of Payments by Lenders</u>**. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it resulting in such Lender's receiving payment of a proportion of the aggregate principal amount of such Loans and accrued interest thereon greater than its pro-rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing to them; <u>provided</u> that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall not be construed to apply to (x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant.

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

**Section 2.11 <u>Defaulting Lenders</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Adjustments</u>*. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Termination of Defaulting Lender Commitment</u>.* The Borrower may terminate the unused amount of the Commitment of a Defaulting Lender upon not less than two Business Days' prior notice to the Administrative Agent (which will promptly notify the Lenders thereof), and in such event the provisions of clause (iii) below will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); <u>provided</u> that such termination will not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, or any Lender may have against such Defaulting Lender, or cause such Defaulting Lender to be a Non-Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Waivers and Amendments</u>*. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of "Required Lenders" and Section 10.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Defaulting Lender Waterfall</u>*. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, as the Borrower may request (if no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third*, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; *fourth*, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such

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Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth*, if no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that, if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.01 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans and held by the Lenders pro rata in accordance with the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.11(a)(iii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Certain Fees</u>*. Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such period pursuant to Section 2.06 (without prejudice to the rights of the Non-Defaulting Lenders in respect of such fees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Defaulting Lender Cure</u>*. If the Borrower and the Administrative Agent agree in writing in their discretion that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice, and subject to any conditions set forth therein, such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender's having been a Defaulting Lender.

**Section 2.12 <u>Incremental Facilities</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower may, at its option, from time to time, obtain one or more additional term loans (each, such term loan a "<u>New Loan</u>") or increase the amount of the Revolving Commitments (each such increase, a "<u>Commitment Increase</u>") up to an aggregate principal amount of $75,000,000, in each case upon at least four Business Days' prior written notice to the Administrative Agent, which notice shall specify (A) the requested amount of a New Loan or Commitment Increase, (B) whether such New Loan is intended to be fungible with any then-existing Term Loans and (C) date on which the Borrower proposes to borrow such New Loan (such date, a "<u>New Loan Borrowing Date</u>") or give effect to the Commitment Increase (the "<u>Incremental Effective Date</u>"), and in connection therewith:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower may offer any New Loan or Commitment Increase to be provided to the Lenders (but no Lenders will be required to provide any such New Loan or Commitment Increase or will have the right to be offered to provide any such New Loan or Commitment Increase) and/or other Persons approved by the Borrower and, unless such Person is a Lender or an Affiliate or an Approved Fund of a Lender, the Administrative Agent (such approval not to be unreasonably withheld or delayed) on either a pro-rata or non-pro-rata basis as determined by the Borrower in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan or the effectiveness of any Commitment Increase; <u>provided</u> that (1) any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality) and (2) with respect to any New Loan in connection with a Limited Condition Investment, such representations and warranties shall only be required to be true and correct in all material respects on and as of the date of the applicable LCT Test Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan or any Incremental Effective Date, no Default or Event of Default shall have occurred and be continuing (except that, with respect to any New Loan in connection with a Limited Condition Investment, the requirement pursuant to this clause (a)(iii) shall be that no Event of Default shall exist at the applicable LCT Test Date and no Event of Default under Section 8.01(a) or 8.01(f) (solely with respect to the Borrower) shall exist as of the effectiveness of such Incremental Agreement in each case after giving effect to such New Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to the provisions of Section 1.11 with respect to any New Loan or Commitment Increase in connection with a Limited Condition Investment, immediately prior to, and immediately after giving effect to, the borrowing of any such New Loan or the initial borrowing under such Commitment Increase and the use of proceeds thereof, on a pro forma basis, the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no consent of any Lender shall be required in connection with any increase in the Commitments in respect of any New Loan or Commitment Increase or the funding of its share of the New Loans, in each case in accordance with this Section 2.12(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) each commitment for a New Loan (a "<u>New</u> <u>Commitment</u>") and each Commitment Increase shall become effective when the Persons (including Lenders) providing such New Loan or Commitment Increase (such Lenders and other Persons, the "<u>Incremental Lenders</u>"), the Borrower and the Administrative Agent shall have entered into a written agreement (each an "<u>Incremental Agreement</u>") pursuant to which (A) each such Incremental Lender agrees to provide a New Commitment and to extend a New Loan or increase its Commitments in the amount specified therein, (B) each such Incremental Lender that is not then a Lender agrees to assume and accept the obligations and rights of a Lender hereunder, (C) the Borrower accepts such New Commitment or Commitment Increase and (D) a New Loan Borrowing Date is specified;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower certifying compliance with the conditions specified in Section 2.12(a)(ii), Section 2.12(a)(iii) and Section 2.12(a)(iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the principal amount of each New Loan and each Commitment Increase shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Administrative Agent shall have received such legal opinions and other documents reasonably requested by the Administrative Agent at the direction of the Incremental Lenders, in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Incremental Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any New Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) may be pari passu with or junior to any then-existing Term Loans in right of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not mature earlier than the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to any necessary adjustments reasonably acceptable to the Administrative Agent and the Borrower to make such New Loans fungible with any then-existing Term Loans, shall not have a shorter Weighted Average Life to Maturity than any then-existing Loans (without giving effect to prepayments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) shall have a maturity date (subject to clause (ii)), an amortization schedule (subject to clause (iii)), and interest rates (including through fixed interest rates), interest margins, rate floors, upfront fees, funding discounts and original issue discounts as determined by the Borrower and the Incremental Lenders; <u>provided</u>, that with respect to New Loans that (A) are pari passu in right of payment with the Term Loans, in the event that the All-In Yield for any such New Loans is greater than the All-In Yield for the Term Loans by more than 0.50%, then the Applicable Rate for the Term Loans shall be increased to the extent necessary so that the All-In Yield for such Loans is equal to the All-In Yield for such New Loans minus 0.50%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent pari passu in right of payment with any then-existing Term Loans that require ratable prepayment, shall share ratably with such existing Loans, subject to the right of the Borrower to direct the application of voluntary prepayments and unless the Borrower and the Incremental Lenders providing the New Loans elect to share in such prepayments on a less than pro rata basis;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) shall not be (x) guaranteed or incurred by any Person that is not a Credit Party or (y) secured by any assets of the Borrower or any of its Subsidiaries unless this Agreement is amended in a form reasonably acceptable to the Administrative Agent and the Borrower so that the then-existing Loans are secured by such assets, which amendment shall not require the consent of the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) may otherwise have terms and conditions different from those of the Term Loans; provided, that (x) except with respect to matters contemplated by clauses (ii), (iii), (iv), (v) and (vi) above, the material terms of any New Loans shall not be materially more favorable (when taken as a whole) to the Incremental Lenders with respect to such Loans than the terms and conditions of the Term Loans (when taken as a whole), as applicable, as reasonably determined by the Borrower, unless such differences are (1) reasonably satisfactory to the Administrative Agent, (2) applicable only after the then existing Maturity Date or (3) included in this Agreement pursuant to an amendment to benefit the then-existing Loans (which amendment shall not require the consent of the existing Lenders) (including, for the avoidance of doubt, at the option of the Borrower, any increase in the applicable interest rate margin or amount of amortization to make such New Loans fungible with such then-existing Loans), and (y) the documentation governing any New Loans may include any more restrictive terms so long as the Administrative Agent shall have been given prompt written notice thereof and this Agreement is amended in a form reasonably acceptable to the Administrative Agent and the Borrower to include such more restrictive terms, which amendment shall not require the consent of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each New Loan shall be deemed, for all purposes, a Loan. If any New Loans are intended to be fungible with any then-existing Term Loans, then the terms and provisions of such New Loans shall be identical to the terms and provisions of such then-existing Term Loans. The Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that all such New Loans, when originally made, are included in each Borrowing of outstanding Loans of such then-existing Term Loans on a pro rata basis. This may be accomplished by allocating a portion of each such New Loan to each such outstanding Borrowing on a pro rata basis. If any New Loan is to be allocated to an existing Interest Period for a Borrowing, then the interest rate thereon for such Interest Period and the other economic consequences thereof shall be as set forth in the Incremental Agreement. In addition, the scheduled amortization payments under Section 2.04 required to be made in respect of such then-existing Term Loans after the making of such New Loans shall be ratably increased by the aggregate principal amount of such New Loans and shall be further increased for all Lenders holding Loans of such then-existing Term Loans on a pro rata basis to the extent necessary to avoid any reduction in the amortization payments to which such Lenders were entitled before such recalculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Commitment Increase shall be on the same terms as the Revolving Loans. On each Incremental Effective Date with respect to each Commitment Increase, if there are Revolving Loans then outstanding, the Borrower shall prepay such Revolving Loans (and pay any additional amounts required pursuant to Section 3.05 in connection therewith), and borrow Revolving Loans from the Incremental Lender(s), as shall be necessary in order that, after giving effect to such prepayments and borrowings, all Revolving Loans will be held ratably by the Revolving Lenders (including the Incremental Lender(s)) in accordance with their respective Commitments after giving effect to the applicable Commitment Increase.

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**Section 2.13 <u>Termination or Reduction of Revolving Commitments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Optional Termination or Reduction of Revolving Commitments. The Borrower may, upon notice to the Administrative Agent, terminate the unused portion of the Revolving Commitments, or from time to time partially reduce the unused portion of the Revolving Commitments; provided that (a) each such notice shall be in writing and must be received by the Administrative Agent at least four Business Days prior to the effective date of such termination or reduction, and shall be irrevocable (but such notice may state that such termination or reduction of Revolving Commitments is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied, (b) any such partial reduction shall be in an aggregate amount of $1,000,000 or a larger multiple of $1,000,000 and (c) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the total principal amount of the Revolving Loans would exceed the total Revolving Commitments. Unless previously terminated, the Revolving Commitments shall automatically terminate on the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Application of Commitment Reductions. The Administrative Agent will promptly notify the Revolving Lenders of any termination or reduction of the Revolving Commitments pursuant to this Section 2.13. Upon any reduction of unused Revolving Commitments, the Revolving Commitment of each Revolving Lender shall be reduced by such Lender's ratable share of the amount of such reduction.

**ARTICLE III.** 

**TAXES, YIELD PROTECTION AND ILLEGALITY** 

**Section 3.01 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Defined Terms</u>*. For purposes of this Section 3.01 the term "applicable Law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Payments Free of Taxes</u>.* Any and all payments by or on account of any obligation of the Credit Parties under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Payment of Other Taxes by the Borrower</u>*. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Indemnification by the Lenders</u>*. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Evidence of Payments</u>*. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 3.01, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Status of Lenders; Tax Documentation</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the

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Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.01(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of executed IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, copies of executed IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E or W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) copies of executed IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>") and (y) copies of executed IRS Form W-8BEN-E or W-8BEN; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, copies of executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-4 on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of any other executed form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Treatment of Certain Refunds</u>*. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 3.01 (including by the payment of additional amounts pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus

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any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Survival</u>*. Each party's obligations under this Section 3.01 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations under any Loan Document.

**Section 3.02 <u>Illegality</u>**. If any Lender determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to make, maintain or fund Loans whose interest is determined by reference to SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR (each, an "<u>Illegality Event</u>"), then, upon notice thereof by such Lender to the Borrower (through the Administrative Agent) (an "<u>Illegality Notice</u>"), (a) any obligation of such Lender to make SOFR Loans, and any right of the Borrower to require such Lender to continue its SOFR Loans or to convert its ABR Loans to SOFR Loans, shall be suspended, and (b) the interest rate on which ABR Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (c) of the definition of "ABR", in each case until such affected Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such illegality, upon demand from the affected Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to ABR Loans (the interest rate on which ABR Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (c) of the definition of "ABR"), on the last day of the Interest Period therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans to such day, or immediately, if any Lender may not lawfully continue to maintain such SOFR Loans to such day. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to Section 3.05.

During any period in which an Illegality Event is in effect, the Borrower may request (through the Administrative Agent), that the Lenders affected by such Illegality Event confirm that the circumstances giving rise to the Illegality Event continue to be in effect. If, within ten Business Days following such confirmation request, such Lenders have not confirmed the continued effectiveness of such Illegality Event, then such Illegality Event shall no longer be deemed to be in effect; provided that (A) the Borrower shall not be permitted to submit any such request more than once in any 30-day period and (B) nothing contained in this Section 3.02 or the failure to provide confirmation of the continued effectiveness of such Illegality Event shall in any way affect the Lenders' right to provide any additional notices of an Illegality Event as provided in this Section 3.02.

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**Section 3.03 <u>Inability to Determine Rates; Successor Rate</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Required Lenders determine that for any reason in connection with any request for a Term Benchmark Loan or a conversion to or continuation thereof that (i) adequate and reasonable means do not exist for determining the then-current Benchmark for any requested Interest Period with respect to a proposed Term Benchmark Loan, or (ii) the then-current Benchmark for any requested Interest Period with respect to a proposed Term Benchmark Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan (each, a "<u>Market Disruption Event</u>"), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain the applicable Term Benchmark Loans shall be suspended. Upon receipt of such notice, the Borrower, the Administrative Agent and the Lenders may establish a mutually acceptable alternative rate. During any period in which a Market Disruption Event is in effect, the Borrower may request, through the Administrative Agent, that the Required Lenders confirm that the circumstances giving rise to the Market Disruption Event continue to be in effect. If, within ten Business Days following such confirmation request, the Required Lenders have not confirmed the continued effectiveness of such Market Disruption Event, then such Market Disruption Event shall no longer be deemed to be in effect; <u>provided</u> that (A) the Borrower shall not be permitted to submit any such request more than once in any 30 day period and (B) nothing contained in this Section 3.03(a) or the failure to provide confirmation of the continued effectiveness of such Market Disruption Event shall in any way affect the Required Lenders' right to provide any additional notices of a Market Disruption Event as provided in this Section 3.03(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Benchmark Replacement Setting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 3.03(b)(i) will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrower and the Lenders of (x) the implementation of any Benchmark Replacement and (y) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will notify the Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 3.03(b)(iv) and (v) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent pursuant to this Section 3.03(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 3.03(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Benchmark Unavailability Period</u>. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, (i) the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to ABR Loans and (ii) any outstanding affected SOFR Loans will be deemed to have been converted to ABR Loans at the end of the applicable Interest Period. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR.

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**Section 3.04 <u>Increased Costs</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Increased Costs Generally</u>*. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of "Excluded Taxes" and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Term Benchmark Loans made by such Lender (except any reserve requirement contemplated by Section 3.04(e)), and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any Loan the interest on which is determined by reference to Term SOFR (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(a), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(a) and the definition of "Change in Law".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Capital Requirements</u>*. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered; <u>provided</u> that, as to any Lender seeking compensation under this Section 3.04(b), such Lender shall only be so compensated to the extent such Lender is then generally seeking such compensation from similarly situated customers under agreements relating to similar credit transactions that include provisions similar to this Section 3.04(b) and the definition of "Change in Law".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Certificates for Reimbursement</u>*. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Delay in Requests</u>*. Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six month period referred to above shall be extended to include the period of retroactive effect thereof).

**Section 3.05 <u>Compensation for Losses</u>**. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any continuation, conversion, payment or prepayment of any Term Benchmark Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Term Benchmark Loan on the date or in the amount notified by the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any assignment of a Term Benchmark Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13; including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained (but, for the avoidance of doubt, not any loss of anticipated profits). The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

**Section 3.06 <u>Mitigation Obligations; Replacement of Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Designation of a Different Lending Office</u>*. If any Lender requests compensation under Section 3.04, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then at the request of the Borrower, such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts then or thereafter payable pursuant to Section 3.01 or 3.04, as the case may be, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Replacement of Lenders</u>*. If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, and, in each case such Lender has declined or is unable to designate a different lending office in accordance with Section 3.06(a), the Borrower may replace such Lender in accordance with Section 10.13 if no Default or Event of Default has occurred and is continuing.

**Section 3.07 <u>Survival</u>**. All of the Borrower's obligations under this Article III shall survive termination of the Commitments, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.

**ARTICLE IV.** 

**CONDITIONS PRECEDENT** 

**Section 4.01 <u>Conditions to Effectiveness</u>**. The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent's receipt of the following, each of which shall be originals or in electronic format (followed promptly by originals) unless otherwise specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) counterparts of this Agreement executed by the Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Note executed by the Borrower in favor of each Lender requesting a Note in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Guaranty executed by the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Credit Parties as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents (including, in the case of any Credit Party incorporated under the laws of the Cayman Islands, true, correct and up to date copies of the certificate of incorporation, memorandum and articles of association, register of directors, register of officers, register of members and register of mortgages and charges of such Credit Party) and (B) a good standing certificate (or equivalent) for each of the Credit Parties from its jurisdiction of organization, registration or incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) customary opinions of each of (A) Sidley Austin, LLP and (B) Maples Group, in each case, counsel to the Credit Parties, addressed to the Administrative Agent and each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in Section 4.01(b), Section 4.01(c), Section 4.01(d), and Section 4.01(f) have been satisfied;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) a certificate, in the form attached hereto as Exhibit G, from a Financial Officer of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) (A) at least three (3) Business Days prior to the date of this Agreement, all documentation and other information requested by the Administrative Agent or any Arranger, to the extent requested in writing of the Borrower at least 10 days prior to the date of this Agreement and that the Administrative Agent and the Arrangers reasonably determine is required by United States regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, and (B) to the extent the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, at least five (5) days prior to the date of this Agreement, a Beneficial Ownership Certification in relation to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of the Restatement Effective Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately prior to, and immediately after giving effect to, the effectiveness of this Agreement, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No event, occurrence, fact, condition or change shall have occurred since December 31, 2023 that individually or in the aggregate constitutes a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any fees and expenses required to be paid on or before the Restatement Effective Date pursuant to the Loan Documents (but, with respect to expenses, only to the extent invoiced at least three (3) Business Days prior to the Restatement Effective Date) shall have been paid or shall have been authorized to be deducted from the proceeds of the funding of the Loans on the Restatement Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All necessary legal and regulatory approvals with respect to the Transactions, if any, shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All accrued and unpaid interest on the Loans (as defined in the Existing Credit Agreement) and all accrued and unpaid commitment fees in respect of the Commitments (as defined in the Existing Credit Agreement), as of the Restatement Effective Date, shall have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Borrower shall have delivered to the Lenders (i) the audited financial statements for the fiscal year ended December 31, 2023 and the unaudited financial statements for the fiscal quarters ended March 31, 2024 and June 30, 2024, in each case, as required by Sections 6.01(i) and (ii) of the Existing Credit Agreement and (ii) pro forma financial statements as of the end of the fiscal year ended December 31, 2023, giving effect to the Transactions.

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Without limiting the generality of the provisions of Section 9.03(c), for purposes of determining compliance with the conditions specified in Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Restatement Effective Date specifying its objection thereto.

**Section 4.02 <u>Conditions to the Making of Loans</u>**. The obligation of each Lender to make any Loans on any Borrowing Date (including the Restatement Effective Date) is subject to the satisfaction (or waiver in accordance with Section 10.01) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the representations and warranties set forth herein or in any other Loan Document shall be true and correct in all material respects on and as of such Borrowing Date; <u>provided</u> that any such representation or warranty which expressly relates to a given date or period shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be, and any representation and warranty that is qualified by or subject to a "materiality" or Material Adverse Effect or similar term or qualification shall be true and correct in all respects (after giving effect to any such qualification or materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Immediately prior to, and immediately after giving effect to, the making of such Loans on such Borrowing Date, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof.

**ARTICLE V.** 

**REPRESENTATIONS AND WARRANTIES** 

The Borrower represents and warrants to the Lenders the following:

**Section 5.01 <u>Existence, Qualification and Power</u>**. Each Credit Party and each Subsidiary (i) is duly organized, registered, incorporated or formed, validly existing and, as applicable, in good standing (to the extent such concept is applicable) under the Laws of the jurisdiction of its incorporation, registration or organization, (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals from all Governmental Authorities to (A) own or lease its assets and carry on its business and (B) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except in each case referred to in clause (i) (other than with respect to the existence of the Borrower), (ii)(A) or (iii), to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect.

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**Section 5.02 <u>Authorization; No Contravention</u>**. The execution, delivery and performance by each Credit Party of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of its respective Organizational Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under (A) any Contractual Obligation to which such Credit Party is a party or affecting such Credit Party or the properties of such Credit Party which would reasonably be expected to result in a Material Adverse Effect, (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or any of its Subsidiaries or their property is subject which would reasonably be expected to result in a Material Adverse Effect or (C) any instrument governing any Debt of the Borrower or any of its Subsidiaries with an aggregate outstanding principal amount in excess of the Threshold Amount which would reasonably be expected to result in a Material Adverse Effect or (iii) violate any Law the effect of which would reasonably be expected to result in a Material Adverse Effect.

**Section 5.03 <u>Execution and Delivery; Binding Effect</u>**. This Agreement has been, and each other Loan Document to which each Credit Party is a party, when delivered hereunder, will have been, duly executed and delivered by such Credit Party. This Agreement constitutes, and each other Loan Document to which each Credit Party is a party when so delivered will constitute, a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium, the pleas of set-off and counter-claim, the plea of prescription, principle of public policy or other Laws affecting creditors' rights generally and by general principles of equity.

**Section 5.04 <u>Financial Statements; No Material Adverse Effect</u>**.

The audited financial statements for the fiscal year ended December 31, 2023 were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. The unaudited consolidated balance sheet of the Borrower and its Subsidiaries and the related consolidated statements of income or operations, shareholders' equity and cash flows for the fiscal quarter ended on June 30, 2024 were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations and cash flows for the period covered thereby, subject to the absence of notes and to normal year-end audit adjustments.

Since December 31, 2023, there has been no event or circumstance that, either individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

**Section 5.05 <u>Litigation</u>**. As of the Restatement Effective Date, there are no actions, suits, proceedings or investigations pending or, to the knowledge of the Borrower, threatened in writing, at Law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any Subsidiary or against any of their properties that (i) either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (ii) affect the validity or enforceability of this Agreement or any other Loan Document or any of the transactions contemplated hereby.

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**Section 5.06 <u>Property</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Ownership of Properties</u>*. Each Credit Party and each Subsidiary has good title to, or valid leasehold interests in, all property and assets necessary in the ordinary conduct of its business, except for such defects in title that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Intellectual Property</u>*. Each Credit Party and each Subsidiary owns, licenses or possesses the rights to use all of the trademarks, trade names, service marks, trade names, copyrights, patents, licenses and other intellectual property rights that are necessary for the operation of their respective businesses, as currently conducted, and the use thereof by the Credit Parties and the Subsidiaries does not conflict with the intellectual property rights of any other Person, except to the extent that such failure to own, license or possess or such conflicts, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The operation of the business of each Credit Party and each Subsidiary as currently conducted does not infringe upon or violate any intellectual property rights held by any other Person, except to the extent that such infringements and violations, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

**Section 5.07 <u>Taxes</u>**. Each Credit Party and each Subsidiary has filed (or caused to be filed) all U.S. federal, state and other Tax returns and reports and all non-U.S. Tax returns and reports required to be filed, and have paid (or caused to be paid) all U.S. federal, state and other Taxes and all non-U.S. Taxes, levied or imposed upon them or their properties, income or assets otherwise due and payable, except (i) Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP or SAP, as the case may be, or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 5.08 <u>Disclosure</u>**. No written report, financial statement, certificate or other written information furnished (other than projected or pro-forma financial information and general market or industry data) by or on behalf of the Borrower to the Administrative Agent or any Lender for use in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not materially misleading. The projected or pro-forma financial information contained in the materials referenced in the preceding sentence were prepared in good faith based upon assumptions believed to be reasonable at the time made (it being understood that such projected or pro-forma information may vary from actual results and that such variances may be material).

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**Section 5.09 <u>Compliance with Laws</u>**. Each Credit Party and each Subsidiary is in compliance with the requirements of all Laws (including Environmental Laws) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (i) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted and the pendency of such proceedings, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect or (ii) the failure to so comply, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

**Section 5.10 <u>ERISA Compliance</u>**. Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Plan is in compliance with the applicable provisions of ERISA and the Code and each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or is relying on an opinion letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code, or an application for such a letter is currently being processed by the IRS, and, to the knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there are no pending or, to the knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or violation of the fiduciary responsibility rules with respect to any Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no ERISA Event has occurred or is reasonably expected to occur, for which liability has been or is reasonably expected to be imposed on any Credit Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities.

**Section 5.11 <u>Environmental Matters</u>**. The Credit Parties and the Subsidiaries are not subject to any pending or, to the knowledge of the Borrower, threatened claim alleging liability under or responsibility for violation of any Environmental Law in connection with their respective businesses, operations and properties, except for claims which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 5.12 <u>Margin Regulations; Federal Reserve Regulations; Use of Proceeds</u>**. None of the Credit Parties or any Subsidiary is engaged, and the Credit Parties and the Subsidiaries will not engage, principally or as one of its respective important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets of the Borrower and its Subsidiaries on a consolidated basis, subject to Section 7.02 or other restriction on transfer or disposition hereunder, will be Margin Stock. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Federal Reserve Board, including Regulations T, U and X. The Borrower has or will use the proceeds of the Loans only for the purposes set forth in Section 6.11.

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**Section 5.13 <u>Investment Company Act</u>**. None of the Credit Parties are required to register as an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

**Section 5.14 <u>Anti-Corruption Laws and Sanctions.</u>** Each of the Credit Parties has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by it, its Subsidiaries and, to the extent acting on their behalf, their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower and its Subsidiaries and, to the knowledge of the Borrower, its officers, employees, directors and agents, to the extent acting on their behalf, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of the Borrower and any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers, employees or, to the extent acting in any capacity in connection with the credit facility established hereby, agents is a Sanctioned Person. Each of the Credit Parties is in compliance, in all material respects, with the Uniting And Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA Patriot Act of 2001), to the extent applicable.

**Section 5.15 <u>Solvency</u>**. On the Restatement Effective Date, immediately after giving effect to the Transactions to occur on the Restatement Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The fair value of the assets of the Borrower and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The present fair saleable value of the property of the Borrower and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital.

**Section 5.16 <u>Beneficial Ownership Certification</u>**. Each Beneficial Ownership Certification executed and delivered to the Administrative Agent by the Borrower from time to time, as updated from time to time in accordance with this Agreement, is accurate, complete and correct as of the date thereof.

**Section 5.17 <u>EEA Financial Institutions</u>**. None of the Credit Parties is an EEA Financial Institution.

**Section 5.18 <u>Insurance Licenses</u>**. No License held by a Material Insurance Subsidiary, the loss of which could reasonably be expected to have a Material Adverse Effect, is the subject of a proceeding that could reasonably be expected to result in the suspension or revocation of such License.

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**ARTICLE VI.** 

**AFFIRMATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

**Section 6.01 <u>Financial Statements and Statutory Statements</u>**. The Borrower will furnish to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within 150 days after the end of each fiscal year of the Borrower, commencing with the fiscal year ended December 31, 2024, a consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such fiscal year and the related consolidated statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries for such fiscal year, in each case, setting forth in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of PricewaterhouseCoopers LLP or other independent public accountants of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards (and shall not be subject to any "going concern" or like qualification, exception or explanatory paragraph (except to the extent such qualification, exception or explanatory paragraph results solely from a current maturity of the Loans) or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such financial statements present fairly in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries on a consolidated basis, in accordance with GAAP, consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a balance sheet for the Borrower and its consolidated Subsidiaries as at the end of such fiscal quarter, and the related statements of income, equity and cash flows of the Borrower and its consolidated Subsidiaries for such fiscal quarter and for the portion of the Borrower's fiscal year then ended, setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, in each case to the extent available, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial position, results of operations and cash flows of the Borrower and its consolidated Subsidiaries in accordance with GAAP, consistently applied, subject only to normal year-end audit adjustments and the absence of footnotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five Business Days after filing with the Applicable Insurance Regulatory Authority with respect to each Material Insurance Subsidiary, a copy of the annual Statutory Statement of each Material Insurance Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) within the earlier of (x) five Business Days after filing with the Applicable Insurance Regulatory Authority (if so required) and (y) 120 days after the last day of each fiscal year of each Material Insurance Subsidiary (commencing with the first such fiscal year ending after the Restatement Effective Date), the quarterly Statutory Statement for each Material Insurance Subsidiary for such period.

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**Section 6.02 <u>Certificates; Other Information</u>**. The Borrower will, and will cause its Subsidiaries to, deliver to the Administrative Agent (which will make available to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) concurrently with the delivery of the financial statements referred to in Sections 6.01(i) and 6.01(ii), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower (A) certifying as to whether a Default is continuing and, if a Default is continuing, specifying the details thereof, (B) setting forth reasonably detailed calculations of the Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio, Interest Coverage Ratio and Consolidated Net Worth and demonstrating whether or not the Borrower was in compliance with the covenants set forth in Section 7.11 as of the last day of the period for which such financial statements are delivered, (C) calculate the applicable Pricing Level for the Applicable Rate and (D) if the aggregate total assets of the Borrower and the Material Subsidiaries represent less than 92.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries or the aggregate revenues of the Borrower and the Material Subsidiaries represent less than 90% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable), identifying one or more Subsidiaries that shall thereafter be designated (and the Borrower shall thereupon so designate such Subsidiaries as) Material Subsidiaries hereunder so that the total assets of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 7.5% of the Consolidated Total Assets of the Borrower and its Subsidiaries and the revenues of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 10% of the consolidated revenues of the Borrower and its Subsidiaries (in each case, based upon and as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or 6.01(ii), as applicable) as of the last day of the period for which such financial statements are delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly after the same become publicly available, copies of all periodic reports, all financial statements and periodic reports that the Borrower sends to its limited partners and copies of all other financial statements and regular, periodic or special reports (including Form 8-K) that the Borrower or any of its Subsidiaries may make to, or file with, the SEC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly following any written request therefor (except to the extent prohibited by applicable law, regulatory policy, regulatory restriction or confidentiality agreement or to the extent covered by attorney-client or other legal privilege (as determined in the reasonable good faith judgment of the Borrower)), such other information regarding the operations, business, properties or financial condition of the Credit Parties, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender (through the Administrative Agent) may from time to time reasonably request (including beneficial ownership and other know-your-customer information).

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Documents required to be furnished or delivered pursuant to Section 6.01(i), 6.01(ii), 6.02(i), 6.02(ii) or 6.02(iii) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (A) on which such documents are delivered in a format acceptable to the Administrative Agent pursuant to Section 10.02(a)(i), or such other email address as the Administrative Agent shall specify in writing to the Borrower, (B) on which such documents are posted on the Borrower's behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent), or (C) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website on the Internet at the website listed on Schedule 10.02; <u>provided</u> that documents furnished or delivered pursuant to the foregoing clause (C) shall not be deemed to have been delivered unless and until a Borrower has notified the Administrative Agent in writing (including by email pursuant to Section 10.02(a)(i)) of the posting such documents on an Intranet or intranet website to which each Lender and the Administrative Agent have access or to the Borrower's website.

The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining copies of such documents.

The Borrower hereby acknowledges that (i) the Administrative Agent may, but shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, "<u>Borrower Materials</u>") by posting the Borrower Materials on an Approved Electronic Platform and (ii) certain of the Lenders (each, a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities. The Borrower hereby agrees that: (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word "PUBLIC" shall appear prominently on the first page thereof (x) by marking Borrower Materials "PUBLIC", the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or their securities for purposes of United States Federal and state securities laws (<u>provided</u> that, to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Approved Electronic Platform designated "Public Side Information"; and (z) the Administrative Agent shall treat any Borrower Materials that are not marked "PUBLIC" as being suitable only for posting on a portion of the Approved Electronic Platform not designated "Public Side Information".

**Section 6.03 <u>Notices</u>**. The Borrower will, and will cause its Subsidiaries to, promptly notify the Administrative Agent and each Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws, in each case in which there is a reasonable expectation of an adverse determination and that, if adversely determined, would reasonably be expected to have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material change in accounting or financial reporting practices by the Borrower or any Subsidiary other than in accordance with GAAP or SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any proposed amendment or other modification of the bylaws of the Borrower or any of its Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any public announcement by AM Best of (1) any change to any rating level applicable to the Borrower or any Insurance Subsidiary or (2) the placement of any rating of the Borrower or any Insurance Subsidiary as under review by AM Best.

Each notice delivered under this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth the details of the occurrence requiring such notice and stating what action the Borrower has taken and proposes to take with respect thereto.

**Section 6.04 <u>Preservation of Existence, Etc</u>**. The Borrower will, and will cause each Subsidiary to: (i) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted or not restricted by Section 7.05; (ii) take all reasonable action to maintain all government rights, licenses (including from any Applicable Insurance Regulatory Authority), permits, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (iii) preserve or renew all of its registered patents, trademarks, trade names and service marks, in each case under this clause (iii), the non-preservation of which would reasonably be expected to have a Material Adverse Effect.

**Section 6.05 <u>Maintenance of Properties</u>**. The Borrower will, and will cause each Subsidiary to, (i) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition (ordinary wear and tear and casualty and condemnation excepted) and (ii) make all necessary repairs thereto and renewals and replacements thereof, in each case under this Section 6.05, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 6.06 <u>Maintenance of Insurance</u>**. The Borrower will, and will cause each Subsidiary to, maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance customary for similarly situated Persons engaged in the same or similar businesses as the Borrower or Subsidiary) as are customarily carried under similar circumstances by such Persons.

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**Section 6.07 <u>Payment of Obligations</u>**. The Borrower will, and will cause each Subsidiary to, pay, discharge or otherwise satisfy before the same shall become delinquent, all of its obligations and liabilities (including Tax liabilities), in each case under this Section 6.07, except (i) if the same are being contested in good faith by appropriate proceedings and adequate reserves in accordance with GAAP, are being maintained by the Borrower or such Subsidiary or (ii) to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

**Section 6.08 <u>Compliance with Laws</u>**. The Borrower will, and will cause each Subsidiary to, comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to do so would not reasonably be expected to have a Material Adverse Effect. Notwithstanding anything to the contrary in the foregoing, the Borrower will, directly or through its Subsidiaries, maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Borrower, its Subsidiaries and, to the extent acting on behalf of the Borrower or Subsidiary, each of their respective directors, officers, employees and agents, with Anti-Corruption Laws and applicable Sanctions.

**Section 6.09 <u>Books and Records</u>**. The Borrower will, and will cause each Subsidiary to, maintain proper books of record and account, in which full, true and correct entries are made to permit the preparation of financial statements in conformity with GAAP, SAP or other appropriate generally accepted accounting principles, as the case may be.

**Section 6.10 <u>Inspection Rights</u>**. The Borrower will, and will cause each Subsidiary to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the reasonable expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably requested; <u>provided</u> that, other than with respect to such visits and inspections during the continuance of an Event of Default, (i) the Administrative Agent and the Lenders shall collectively be limited to exercising such rights no more often than once during any calendar year, (ii) visits by any Lender shall be coordinated with the Borrower through the Administrative Agent and (iii) any Lender electing to exercise such rights shall notify the Administrative Agent and each other Lender reasonably in advance of such exercise and the Administrative Agent and each other Lender (and their representatives and independent contractors) shall be given a reasonable opportunity to participate therein; <u>provided</u>, <u>further</u>, that during the continuance of an Event of Default the Administrative Agent or any Lender (or any of their respective representatives) may do any of the foregoing under this Section at any time. Such inspection rights are subject to the provisions of Section 10.07 and applicable Law and shall not extend to any information covered by attorney-client or other legal privilege or to the extent the exercise of such inspection rights would result in violation or other breach of any third-party confidentiality agreements. The Administrative Agent and the Lenders shall give the Borrower or such Subsidiary the opportunity to participate in any discussions with the Borrower's or such Subsidiary's accountants.

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**Section 6.11 <u>Use of Proceeds</u>**. Subject to Section 7.09, the Borrower shall use the proceeds of (a) the Refinancing Term Loans to (i) repay in full all Restatement Euro Loans (as defined in the Existing Credit Agreement) outstanding on the Restatement Effective Date, (ii) pay accrued and unpaid interest on such Euro Restatement Loans, and (iii) to the extent of any remaining proceeds after repayment of the Restatement Euro Loans and interest thereon, for general corporate purposes and (b) any other Loan to fund (i) the Transaction Costs and (ii) general corporate purposes (including permitted acquisitions and capital contributions) of the Borrower and its Subsidiaries (excluding Restricted Payments made by the Borrower in reliance on clauses (iv) or (vii) of Section 7.06).

**Section 6.12 <u>Additional Guarantors</u>**. In the event that (a) any Subsidiary of the Borrower (other than an Insurance Subsidiary) that directly or indirectly owns any Equity Interests of any Insurance Subsidiary or (b) any Subsidiary of the Borrower (solely in the case of this clause (b), other than any Excluded Subsidiary), in each case of clauses (a) and (b), is formed or acquired after the Restatement Effective Date (<u>provided</u> that any Excluded Subsidiary ceasing to be an Excluded Subsidiary but remaining a Subsidiary of the Borrower shall be deemed to constitute the acquisition of a Subsidiary of the Borrower for all purposes of this Section 6.12) or is a Subsidiary as of the Restatement Effective Date but is not a party to the Guaranty as of the Restatement Effective Date (other than Accelerant Distribution Holdings Limited, a Malta limited liability private exempt company, or Accelerant Malta Holdings Limited, a Malta limited liability private exempt company), the Borrower shall (x) promptly notify the Administrative Agent thereof and shall cause such Subsidiary to become a Guarantor under the Guaranty by executing and delivering to the Administrative Agent a joinder to the Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof and to become a "Credit Party" and a "Guarantor" for purposes of the Loan Documents and (y) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates (including legal opinions) reasonably requested by Administrative Agent in connection with such joinder, including any information required pursuant to Section 10.18.

**Section 6.13 <u>Further Assurances</u>**. The Borrower will, and will cause each Subsidiary to, at the reasonable request of the Administrative Agent, execute and deliver any and all further documents, financing statements, agreements and instruments, and take all such further actions, that may be required under any applicable Law or as may be reasonably required to carry out the provisions of this Agreement and the other Loan Documents and give effect to the transactions contemplated hereby and thereby.

**ARTICLE VII.** 

**NEGATIVE COVENANTS** 

Until all Obligations (other than contingent indemnification and expense reimbursement obligations not yet due and payable) have been paid in full, the Borrower covenants and agrees with the Lenders that:

**Section 7.01 <u>Indebtedness</u>**. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Debt, other than the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Debt under the Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Debt outstanding on the date hereof and listed on Schedule 7.01 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that the amount of such Debt is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Guarantees by (A) any Subsidiary in respect of Debt of the Borrower or (B) the Borrower or any Subsidiary of Debt of any Subsidiary, in each case if such Debt is otherwise permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Operating Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Debt of the Borrower or any Subsidiary in respect of Capital Leases and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.02(viii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Debt of any Person that becomes a Subsidiary after the date hereof; <u>provided</u> that (A) such Debt exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (B) after giving effect to such Person becoming a Subsidiary on a pro-forma basis, (1) no Default or Event of Default shall have occurred and be continuing and (2) the Borrower shall be in compliance with the covenants in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) obligations of the Borrower or any Subsidiary to maintain the capital or solvency of any of its Subsidiaries in accordance with the requirements of or under any agreement with their respective Applicable Insurance Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Debt of (A) any Credit Party owing to any other Credit Party, (B) any Credit Party owing to any Subsidiary that is not a Credit Party if such Debt is expressly subordinated to the prior payment in full of the Obligations on terms reasonably acceptable to the Administrative Agent (<u>provided</u> that such subordination terms shall permit regularly scheduled payments of principal and interest if no Default or Event of Default has occurred and is continuing) and (C) any Subsidiary that is not a Credit Party owing to any Credit Party or another Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) obligations and liabilities (whether directly or as a guarantor) of the Borrower or Subsidiaries arising under or in connection with treasury, depositary, cash management, custodial, automated clearinghouse or transfer of funds services or arrangements or similar services and arrangements incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the incurrence of Debt by the Borrower or any Subsidiary under any Qualified Securitization Facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Debt of the Borrower or any Subsidiary not otherwise permitted under clauses (i) through (x) above; <u>provided</u> that (i) both immediately prior to, and immediately after giving effect to, the incurrence of such Debt on a pro forma basis, (A) no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall be in

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compliance with the covenants in Section 7.11, (ii) if, on the date any Debt is incurred in reliance on this Section 7.01(xi), after giving effect thereto and the use of proceeds thereof, the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, is greater than 25%, a portion of the Net Proceeds from the incurrence of such Debt shall be applied to prepay the Loans as set forth in Section 2.03(b)(ii) such that, after giving effect to such prepayment, the Consolidated Total Debt to Capitalization Ratio (determined as provided above) is less than or equal to 25% and (iii)(A) the final maturity date of any Debt incurred in reliance on this Section 7.01(xi) shall be no earlier than the Maturity Date and (B) the Weighted Average Life to Maturity of any Debt incurred in reliance on this Section 7.01(xi) shall be no shorter than the Weighted Average Life to Maturity of the Loans at such time (which, in the case of customary "bridge" loans, shall be determined by reference to the notes or loans into which such bridge loans are, by their terms, converted or for which such bridge loans may be, by their terms, exchanged at maturity); <u>provided</u>, <u>further</u>, with respect to any such Person, the amount of any commitments to make loans or extend credit on a revolving basis (or delayed draw basis) to such Person that has been designated by the Borrower in writing to the Administrative Agent as "Designated Revolving Commitments," until such time as the Borrower subsequently provides notice to the Administrative Agent to the effect that such commitments will no longer constitute "Designated Revolving Commitments": (1) such Designated Revolving Commitments will be deemed an incurrence of Debt and fully utilized and outstanding on such date for purposes of calculating the Consolidated Total Debt to Capitalization Ratio under this clause (xi), (2) unless the Borrower provided notice to the Administrative Agent to the effect that such revolving (or delayed draw) commitments no longer constitute "Designated Revolving Commitments", such Designated Revolving Commitments will be deemed to be fully utilized and outstanding for the purposes of calculating the Consolidated Total Debt to Capitalization Ratio in connection with the incurrence of any other Debt after such date in reliance on this clause (xi) and (3) commencing on the date such Designated Revolving Commitments are established, after giving pro forma effect to the incurrence of the entire committed amount of the Debt thereunder, such committed amount under such Designated Revolving Commitments may thereafter be borrowed (and reborrowed, if applicable), in whole or in part, from time to time, without further compliance with either clause (1) or (2) of this proviso; <u>provided</u> that the sum of (x) the aggregate principal amount of Unsubordinated Debt, plus (y) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to Section 7.02(xxix) shall at no time exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

**Section 7.02 <u>Liens</u>**. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens existing on the date hereof and listed on Schedule 7.02 and any refinancings, refundings, renewals or extensions thereof; <u>provided</u> that (A) the property covered thereby is not changed and (B) the Debt secured or benefited thereby is not increased except by (1) by the utilization of any existing commitments thereunder, (2) accrued and unpaid interest and premiums thereon and (3) underwriting discounts or other amount paid, and fees, commissions, premiums (including tender premiums) and expenses (including upfront fees, original issue discount or initial yield payments) incurred, in connection with any such refinancing, refunding, renewal or extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Liens for Taxes not yet overdue or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) pledges or deposits in the ordinary course of business in connection with workers' compensation, unemployment insurance and other social security legislation and securing letters of credit, bank guarantees or similar instruments issued supporting such items;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) deposits to secure the performance of bids, tenders, contracts, leases (other than Debt), statutory obligations, bank guarantees or similar instruments, surety and appeal bonds, letters of credit, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) easements, zoning restrictions, rights-of-way, restrictions and other similar encumbrances affecting real property which do not materially interfere with the ordinary conduct of the business of the applicable Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Liens arising pursuant to an order of attachment, distraint or similar legal process in connection with legal proceedings and securing judgments for the payment of money and Liens arising under ERISA or the Code with respect to a Plan not constituting an Event of Default under Section 8.01(h) or Section 8.01(i), respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Liens on the property of the Borrower or any Subsidiary securing (A) any part of the cost of acquisition, development, construction, alteration, repair or improvement of such property or Debt incurred to finance any of the foregoing (including any sale and leaseback transaction), (B) Capital Leases and (C) any extension, renewal, refinancing or replacement of the Debt or obligations secured by any such Lien referred to in clauses (A) and (B); <u>provided</u> that (x) such Liens do not at any time encumber any property other than the property financed by such Debt and the proceeds and products thereof, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided to the Borrower or any Subsidiary by any Person may be cross-collateralized to other financings of such type provided by such Person or its Affiliates) and (y) in the case of clause (A) the Debt secured

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thereby is either Non-Recourse Debt with respect to the Borrower and its Subsidiaries or does not exceed the cost of the property being acquired, developed, constructed, altered, repaired or improved or initial financing thereof, plus the costs incurred for delivery installation, maintenance programs and items similar to the foregoing and, fees, costs and expenses incurred in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; <u>provided</u> that (A) such Lien is not created in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (B) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary other than proceeds and products of the property covered by such Lien, accessions thereto, improvements thereon and after-acquired property that is fixed or incorporated into such property (it being understood that individual financings provided by any Person may be cross-collateralized to other financings of such type provided by such Person or its affiliates) and (C) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof other than by an amount equal to accrued and unpaid interest, premiums (including tender premiums thereon), plus underwriting discounts or other amount paid, and fees, commissions and expenses (including upfront fees, original issue discount or initial yield payments) incurred in connection with any such extension, renewal or replacement and by an amount equal to any existing commitments unutilized thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Liens to secure obligations arising under Swap Contracts, to the extent permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Liens arising out of deposits or pledges by any Subsidiary of cash, securities, portfolio investments or other property into collateral trusts, reinsurance trusts or other collateral or escrow accounts with or for the benefit of ceding companies or insurance regulators of such Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Liens securing Debt arising under Permitted Repo and Securities Lending Agreements; <u>provided</u> that no such Lien shall extend to or cover any property or assets other than the securities subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) leases, subleases, licenses and sublicenses granted to others and not interfering in any material respect with the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Liens arising from Uniform Commercial Code financing statements filed with respect to Operating Leases, and consignments and/or bailments arrangements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) (A) Liens arising from pledges or deposits of cash, securities or portfolio investments made by any Subsidiary that is a Regulated Insurance Company (x) as a condition to obtaining or maintaining any licenses issued to it by any Applicable Insurance Regulatory Authority or (y) as otherwise required to comply with the requirement of applicable insurance Laws, or (B) Liens, in case of a Regulated Insurance Company organized under Maltese laws, arising from operation of Law, in respect of its liability from its insurance business, including insurance claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) Liens on assets pledged, deposited into an account or trust or otherwise allocated as a separate account in connection with, and securing or specifically available to satisfy obligations under, a Policy, Reinsurance Agreement or Retrocession Agreement, in an amount reasonable and as required under the terms of such Policy, Reinsurance Agreement or Retrocession Agreement (or the documentation related thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) Liens securing Debt permitted under Section 7.01(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) rights of setoff or banker's Liens on deposits of cash in favor of banks or other depository institutions maintained in the ordinary course of business, but not securing any Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) Liens arising in the ordinary course of business on custody, securities or commodities accounts in favor of the entity at which such accounts are maintained, but not securing any Debt for borrowed money other than Debt incurred in connection with or to facilitate the settlement of the purchase or sale of securities in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) Liens of a collecting bank arising under Section 4-208 of the Uniform Commercial Code on items in the course of collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) Liens incurred in connection with the collection or disposition of delinquent accounts receivable in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) Liens on any cash earnest money deposit made by the Borrower or any Subsidiary in connection with any letter of intent or acquisition agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) any Lien in favor of any Credit Party securing intercompany obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) Liens that are contractual rights of setoff incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) Liens securing the Obligations in favor of the holders of all such Obligations ratably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) Liens on Securitization Assets incurred in connection with a Qualified Securitization Facility, including Liens on such receivables resulting from precautionary Uniform Commercial Code filings or from re-characterization or any such sale as a financing or a loan; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) Liens on assets of the Borrower and its Subsidiaries not otherwise permitted above; <u>provided</u> that the sum of (x) the aggregate outstanding principal amount of Debt and other obligations secured by Liens incurred pursuant to this clause (xxix), plus (y) the aggregate principal amount of Unsubordinated Debt shall not exceed 2.5% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable.

**Section 7.03 <u>Investments</u>**. The Borrower will not, and will not permit any Subsidiary to, make any Investment in any Person that is not (or that upon consummation of such Investment will not be) a direct or indirect Subsidiary of the Borrower, unless, at the time of making such Investment, after giving pro forma effect thereto: (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower.

**Section 7.04 <u>Non-OC Asset Sales and Non-OC Reinsurance Transactions</u>**. The Borrower will not, and will not permit any Subsidiary to, make any Non-OC Asset Sale or Non-OC Reinsurance Transaction, other than any Non-OC Asset Sale or Non-OC Reinsurance Transaction for fair market value (determined in good faith by the Borrower) and for which at least 75% of the consideration shall be in the form of (x) cash or cash equivalents and/or (y) assets useful in the business of the Borrower or any Subsidiary.

**Section 7.05 <u>Fundamental Changes; Dispositions of Equity Interests of Material Subsidiaries</u>**. The Borrower will not, and will not permit any Subsidiary to (x) merge, amalgamate, dissolve, liquidate, consolidate with or into another Person or (y) Dispose of (whether in one transaction or in a series of transactions) (1) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person (other than the replacement of assets in its investment portfolio), other than (A) any sale of Securitization Assets or related assets in connection with any Qualified Securitization Facility or (B) any Disposition of an account receivable in connection with the collection or compromise thereof in the ordinary course of business or consistent with industry practice or in bankruptcy or similar proceedings or (2) all or substantially all of the Equity Interests of any Material Subsidiary, except that, if no Default has occurred and is continuing or would result therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower or Subsidiary may merge or amalgamate with any one or more Subsidiaries (including a merger or amalgamation, the purpose of which is to reorganize the Borrower or such Subsidiary in a new jurisdiction in accordance with Section 7.05(vi)); <u>provided</u> that (A) when the Borrower is merging or amalgamating with any of its Subsidiaries, the Borrower shall be the continuing or surviving Person; and (B) when a Credit Party is merging or amalgamating with a Subsidiary that is not a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or Subsidiary may merge, amalgamate or consolidate with any Person to consummate an Investment not prohibited by this Agreement; <u>provided</u> that (A) in the case of a merger, amalgamation or consolidation of the Borrower, the Borrower shall be the continuing or surviving Person; and (B) in the case of a merger, amalgamation or consolidation involving a Credit Party, the Credit Party shall be the continuing or surviving Person (or the continuing or surviving Person shall be designated by the Borrower as a Credit Party);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or dissolution or otherwise) to any other Subsidiary; <u>provided</u> that, if the transferor in such a transaction is a Credit Party, (A) the transferee either (x) shall be the Borrower or (y) shall be (or shall be designated by the Borrower as) another Credit Party and (B) in the case of the Disposition of Equity Interests of a Subsidiary, such Equity Interests may be Disposed of in accordance with Section 7.05(iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to compliance with Section 6.12, the Borrower or Subsidiary may Dispose of the Equity Interests of a Subsidiary to another Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Subsidiary may liquidate or dissolve (and Dispose of its assets in respect of its Equity Interests in connection therewith) if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower or a Subsidiary may change its legal form or jurisdiction of incorporation or formation, including by conversion or merger, if the Borrower determines in good faith that such action is in the best interest of the Borrower or any of its Subsidiaries and not materially disadvantageous to the Lenders; <u>provided</u> that, in the case of such change of legal form of (A) the Borrower, the continuing entity shall remain the Borrower; and (B) a Guarantor, the continuing entity shall remain (or shall become) a Guarantor; <u>provided</u> that, for the avoidance of doubt, nothing in this Section 7.05 shall be deemed to limit, prohibit or restrict the Borrower or any Subsidiary from entering into, amending or modifying any Policy, any Reinsurance Agreement or any Retrocession Agreement or providing collateral security to the extent permitted by Section 7.02(xvii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (1) the Borrower or a Subsidiary may Dispose of all or substantially all of the Equity Interests of any Insurance Subsidiary and (2) any Insurance Subsidiary may Dispose of all or substantially all of its assets, in each case, only if: (A) each Disposition made in reliance on this clause (vii) shall be for fair market value and at least 75% of the consideration therefor shall be in the form of cash or Cash Equivalents, (B) after giving effect to such Deposition and the use of proceeds thereof, (x) no Default shall exist immediately before or immediately after consummation of such Disposition, and (y) the Borrower shall be in compliance with the financial covenants in Section 7.11, on a pro forma basis, as of the then most recently ended fiscal quarter of the Borrower, (C) the Borrower complies with Section 2.03(b)(iii), (D) such Disposition is made in accordance with Section 7.07(i) and (E) the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, shall be no greater than 30%.

**Section 7.06 <u>Restricted Payments</u>**. The Borrower will not, and will not permit any Subsidiary to, declare or make any Restricted Payment, except that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Subsidiary may declare and make Restricted Payments to any Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of such Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower and each Subsidiary may declare and make Restricted Payments payable solely in common Equity Interests of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Subsidiary may declare and make Restricted Payments to (x) the Borrower or (y) any other Subsidiary which is a direct or indirect parent company of such Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new common Equity Interests if after giving effect to such Restricted Payment on a pro-forma basis no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower may (and any Subsidiary may make Restricted Payments as shall be required for the Borrower to) make Restricted Payments in an amount sufficient to allow (x) the Borrower to pay fees, expenses and indemnities pursuant to the Management Agreement (as in effect on the Restatement Effective Date), so long as, solely with respect to the payment of such fees, no Default or Event of Default shall have occurred and be continuing (it being understood that, for so long as any Default or Event of Default has occurred and is continuing, such fees may continue to accrue and any such accrued fees may be paid upon any and all Defaults and Events of Default ceasing to exist), and (y) to pay general corporate operating and overhead costs and expenses (other than taxes) incurred by the Borrower in the ordinary course of business, to the extent attributable to the ownership or operation of the Borrower and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower and each Subsidiary may declare and make any Restricted Payments after the date hereof in an amount not to exceed $6,000,000 in the aggregate in any calendar year (with unused amounts in any calendar year being permitted to be carried over and made in any succeeding calendar year), in each case if after giving effect to any such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment and (2) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Borrower and any Subsidiary may declare and make any Restricted Payment if after giving effect to such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment, (2) the Borrower is in compliance with the covenants set forth in Section 7.11 and (3) the Consolidated Total Debt to Capitalization Ratio, on a pro forma basis, as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, shall be no greater than 15%; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) after a Qualified IPO, the Borrower and each Subsidiary may declare and make any Restricted Payments in an aggregate amount in any consecutive twelve (12) month period, not to exceed 6.0% of Market Capitalization if after giving effect to such Restricted Payment on a pro-forma basis (1) no Default or Event of Default shall have occurred and be continuing at the time of the declaration of such Restricted Payment and (2) the Borrower is in compliance with the covenants set forth in Section 7.11 as of the then most recently ended fiscal quarter of the Borrower;

This Section 7.06 shall not prohibit the payment of a Restricted Payment if such Restricted Payment is made within 60 days of the declaration thereof <u>provided</u> such Restricted Payment was not prohibited by this Section 7.06 at the time of its declaration.

**Section 7.07 <u>Transactions with Affiliates</u>**. The Borrower will not, and will not permit any Subsidiary to, enter into any transaction with any Affiliate of the Borrower or any Subsidiary involving payment of consideration in excess of the greater of (i) $2,400,000 and (ii) 2.0% of the Consolidated Net Worth as of the last day of the most recently ended fiscal period for which financial statements have been delivered or furnished pursuant to Section 4.01(a)(vii), Section 6.01(i) or Section 6.01(ii), as applicable, other than any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transactions not materially less favorable to the Borrower or any Subsidiary than would be obtained in a comparable arm's-length transaction with a Person that is not an Affiliate of the Borrower taking into account the totality of the relationships between the parties involved (including other transactions that may be or have been particularly favorable or advantageous to the Borrower and its Subsidiaries) as determined by the Borrower in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) insurance transactions, intercompany pooling and other reinsurance transactions entered into in the ordinary course of business, including any Reinsurance Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) transactions (x) between or among the Borrower and its Subsidiaries, (y) between or among Subsidiaries and (z) between or among any of the foregoing and their respective Affiliates, in each case, that are not otherwise prohibited hereunder and, in the case of clause (z), so long as such transactions are upon fair and reasonable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Restricted Payment permitted by Section 7.06;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) arrangements for indemnification payments for directors and officers of the Borrower and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) intercompany transactions between or among the Borrower and its Subsidiaries and between or among Subsidiaries, relating to the (A) provision of management services and other corporate overhead services, (B) provision of personnel to other locations within the Borrower's consolidated group on a temporary basis and (C) provision, purchase or lease of services, operational support, assets, equipment, data,

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information and technology, that, in the case of any such intercompany transaction referred to in this clause (vi), are subject to reasonable reimbursement or cost-sharing arrangements (as determined in good faith by the Borrower), which reimbursement or cost-sharing arrangements may be effected through transfers of cash or other assets or through book-entry credits or debits made on the ledgers of each involved Subsidiary; <u>provided</u> that any such intercompany transaction is either (x) entered into in the ordinary course of business or (y) otherwise entered into pursuant to the reasonable requirements of the business of the Borrower and the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements and other compensation arrangements, options to purchase Equity Interests of the Borrower or the Subsidiaries pursuant to restricted stock plans, long-term incentive plans, stock appreciation rights plans, participation plans or similar employee benefits plans, pension plans or similar plans or agreements or arrangements approved by the Board of Directors or the investment committee (or other applicable committee) of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) loans or advances to employees, officers or directors of the Borrower or any Subsidiary (or any direct or indirect parent of the Borrower) in the ordinary course of business, in an aggregate amount outstanding at any time not in excess of $240,000 (without giving effect to the forgiveness of any such loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the payment of reasonable and customary compensation (including fees, benefits, severance, change of control payments and incentive arrangements) to, and employee benefit arrangements, including split-dollar insurance policies, and indemnity or similar arrangements provided on behalf of, directors, officers, employees and agents of the Borrower or the Subsidiaries (or any direct or indirect parent of the Borrower) whether by charter, bylaw, statutory or contractual provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the existence of, and the performance of obligations of the Borrower or the Subsidiaries under the terms of any agreement to which the Borrower or any Subsidiary is a party as of or on the Restatement Effective Date set forth on Schedule 7.07, as these agreements may be amended, modified, supplemented, extended or renewed from time to time; <u>provided</u> that any future amendment, modification, supplement, extension or renewal entered into after the Restatement Effective Date shall be permitted to the extent that its terms, taken as a whole, are not more disadvantageous to the Lenders in any material respect, as determined in good faith by the Borrower or such Subsidiary, than the terms of the agreements in effect on the Restatement Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any agreement between any Person and an Affiliate of such Person existing at the time such Person is acquired by or merged with or into or consolidated with the Borrower or any Subsidiary; <u>provided</u> that such agreement was not entered into in contemplation of such acquisition, merger or consolidation, or any amendment thereto (so long as any such amendment is not disadvantageous in any material respect to the Lenders, as determined in good faith by the Borrower or such Subsidiary, when taken as a whole as compared to the applicable agreement as in effect on the date of such acquisition or merger);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any purchases by the Borrower's Affiliates of Debt of the Borrower or any of its Subsidiaries (other than the Loans) the majority of which Debt is placed with Persons who are not Affiliates and payments of principal and interest on such Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any issuance or sale of Equity Interests (other than Disqualified Equity Interests) to Affiliates of the Borrower and the granting of registration and other customary rights in connection therewith or any contribution to the Equity Interests of the Borrower or any Subsidiary that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) transactions in which the Borrower or any Subsidiary, as the case may be, delivers to the Administrative Agent a letter from an independent financial advisor stating that such transaction is fair to the Borrower or such Subsidiary from a financial point of view or stating that the terms are not materially less favorable taken as a whole than those that might reasonably have been obtained by the Borrower or such Subsidiary in a comparable transaction at such time on an arms' length basis from a Person that is not an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) any transaction with an Affiliate where the only consideration paid by the Borrower or any Subsidiary is Equity Interests of the Borrower or such Subsidiary (other than Disqualified Equity Interests) that is otherwise not prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the payment of all fees and expenses in connection with the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) any merger, consolidation or reorganization of the Borrower or any Subsidiary (otherwise permitted by this Agreement) with an Affiliate of the Borrower solely for the purpose of (x) forming or collapsing a holding company structure or (y) reincorporating the Borrower or such Subsidiary in a new jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) transactions between the Borrower or any Subsidiary and any Person that is an Affiliate solely because one or more of its directors is also a director of the Borrower or such Subsidiary or any direct or indirect parent thereof; <u>provided</u> that such director abstains from voting as a director of the Borrower or such Subsidiary or any direct or indirect parent thereof, as the case may be, on any matter involving such other Person.

**Section 7.08 <u>Certain Restrictive Agreements</u>**. The Borrower will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that, directly or indirectly limits the ability of any Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer property to the Borrower; <u>provided</u> that the foregoing shall not apply to (i) [reserved], (ii) Contractual Obligations with a Governmental Authority, (iii) Contractual Obligations entered into by a joint venture with respect to which the Borrower or a Subsidiary is a joint venturer, (iv) customary limitations contained in agreements relating to the sale of a Subsidiary or its assets pending such sale; <u>provided</u> that such limitations apply only to the Subsidiary or such assets that is to be sold and such sale is permitted hereunder, (v) limitations imposed by any agreement relating to secured Debt permitted by this Agreement, any transaction giving rise to a Lien permitted by this Agreement or any Swap Contract, in each case if such limitations apply only to the property or assets securing or encumbered by such Debt, transaction (or obligation thereunder) or Swap Contract, (vi) limitations

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contained in or arising under indentures or debt instruments or other debt arrangements incurred or preferred stock issued by the Borrower or any Subsidiary subsequent to the date hereof in compliance with Section 7.01 that are not more restrictive, taken as a whole (as determined in good faith by the Borrower), than those applicable to the Borrower and the Subsidiaries in this Agreement, (vii) [reserved], (viii) limitations created in connection with any Qualified Securitization Facility that, in the good faith determination of the Board of Directors of the Borrower, are necessary or advisable to effect such Qualified Securitization Facility and (ix) any encumbrance, condition or restriction with respect to a Person or assets pursuant to an agreement in effect on or before the date on which such Person became a Subsidiary or was acquired by, merged into or consolidated with the Borrower or a Subsidiary or such assets were acquired by the Borrower or any Subsidiary; <u>provided</u> that any such encumbrance or restriction shall not extend to any Person or the assets or property of the Borrower or any other Subsidiary other than the Person and its Subsidiaries or the assets and property so acquired and that, in the case of Debt, was permitted to be incurred pursuant to this Agreement.

**Section 7.09 <u>Use of Proceeds</u>**. The Borrower will not, and will not permit any Subsidiary to, directly or, to the knowledge of the Borrower, indirectly, use the proceeds of any Borrowing, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U or Regulation X of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund Debt originally incurred for such purpose, in each case in violation of applicable margin regulations. The Borrower will not use (or permit any of its Subsidiaries to use) the proceeds of any Borrowing (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Embargoed Jurisdiction, in each case under this clause (ii) in violation of any Sanctions or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 7.10 <u>Change in Nature of Business, Organizational Documents and Fiscal Year</u>**. The Borrower will not, and will not permit any Subsidiary to, engage, directly or indirectly through its Subsidiaries, to any material extent in any business other than (i) the Insurance Business, (ii) any business engaged in by the Borrower or its Subsidiaries on or before the Restatement Effective Date or (iii) any business reasonably related or incidental thereto or which is financial in nature. The Borrower shall not, and shall not permit any Subsidiary to, amend or modify its respective Organizational Documents (x) if such amendment or modification would prohibit the Borrower from prepaying the Loans in accordance with Section 2.03(b) or (y) in a manner that is materially adverse (taken as a whole) to the interests of the Lenders, in their capacity as such. The Borrower shall not, and shall not permit any Subsidiary to, change the last day of its fiscal year from December 31 of each year without providing the Administrative Agent prior written notice.

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**Section 7.11 <u>Financial Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Consolidated Net Worth</u>*. The Borrower shall not permit the Consolidated Net Worth, calculated as of the last day of any fiscal quarter of the Borrower and as reflected in the financial statements furnished pursuant to Section 6.01(i) or 6.01(ii), as applicable, to be less than the sum of (A) an amount equal to 70.0% of the Borrower's and its Subsidiaries' Consolidated Net Worth as of June 30, 2024, (B) an amount equal to the sum of 50% of the Consolidated Net Income (to the extent positive) of the Borrower and its Subsidiaries for each fiscal quarter (without reduction for any Consolidated Net Income (to the extent negative) in any quarter), commencing with the fiscal quarter of the Borrower ending September 30, 2024 and (C) an amount equal to 50% of the net cash proceeds contributed to the Borrower or any of its Subsidiaries (other than contributions of cash proceeds made by the Borrower or any of its Subsidiaries) from the issuance and sale of Equity Interests of the Borrower and any of its Subsidiaries after June 30, 2024 (other than the issuance to the Borrower or any other Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Consolidated Total Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Total Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 40%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first fiscal quarter ending after the Restatement Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Consolidated Senior Debt to Capitalization Ratio</u>*. The Borrower shall not permit the Consolidated Senior Debt to Capitalization Ratio of the Borrower and its Subsidiaries to be greater than 35%, in each case as of the last day of any fiscal quarter of the Borrower (commencing with the last day of the first fiscal quarter ending after the Restatement Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Interest Coverage Ratio</u>.* The Borrower shall not permit the Interest Coverage Ratio of the Borrower and its Subsidiaries to be less than 2.00:1.00 for the most recently ended four consecutive fiscal quarters of the Borrower for which financial statements have been delivered or furnished pursuant to Section 6.01(i) or Section 6.01(ii), as applicable (commencing with the last day of the first fiscal quarter ending after the Restatement Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Borrower Cure Right</u>*. Notwithstanding the foregoing, in the event that the Borrower shall have failed to comply with any of the financial covenants set forth in clauses (a), (b), (c) and (d) of this Section 7.11 in any fiscal quarter for which any such financial covenant is tested, the Borrower shall have the right (the "<u>Cure Right</u>") to, at any time after such failure occurs until the day on which financial statements of the Borrower are required to be delivered for such fiscal quarter or fiscal year, as applicable, issue for cash (or otherwise receive cash contributions in respect of) common capital stock (other than Disqualified Equity Interests) of the Borrower (the aggregate amount of such issuances and distributions, the "<u>Cure Amounts</u>"), and upon receipt by the Borrower of such Cure Amounts, compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period (and, in the case of compliance with Section 7.11(d), such period and any subsequent period that includes such period) shall be recalculated giving effect to the following pro forma adjustment: the Consolidated Net Worth and Consolidated Adjusted EBITDA shall be increased, solely for the purpose of determining compliance with Sections 7.11(a), (b), (c) and (d), by an amount equal to the applicable Cure Amounts, and the use of proceeds therefrom will be disregarded for all other purposes under this Agreement (including calculating Consolidated Net Worth and Consolidated Adjusted EBITDA for purposes of determining basket levels and other items governed by reference to Consolidated Total Debt to Capitalization Ratio, Consolidated Senior Debt to Capitalization Ratio and Interest Coverage Ratio). If, after giving effect to the foregoing recalculations, the Borrower is in compliance with Sections 7.11(a), (b), (c) and (d) with respect to such period, then the applicable breach of Sections 7.11(a), (b), (c) and/or (d) that had occurred shall be deemed cured for all purposes. The Cure Right shall not be exercised more than

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4 times during the term of this Agreement, shall not be exercised more than 2 times during any consecutive period of four fiscal quarters of the Borrower, and shall, with respect to any applicable period, be no greater than the amount required for purposes of complying with Sections 7.11(a), (b), (c) and (d) with respect to such period. Neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans, terminate the Commitments or exercise any other remedy under the Loan Documents or applicable law on the basis of an Event of Default caused by the failure to comply with Sections 7.11(a), (b), (c) or (d) until after the Borrower's ability to cure has lapsed and Borrower has not exercised the Cure Right. The Borrower hereby agrees to amend this Agreement to remove this Section 7.11(e) (and all references to the Cure Right and Cure Amount) prior to the filing of this Agreement in connection with the initial public offering of the Borrower or any of its Subsidiaries.

**ARTICLE VIII.** 

**EVENTS OF DEFAULT AND REMEDIES** 

**Section 8.01 <u>Events of Default</u>**. Any of the following shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Non-Payment</u>*. The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall fail to pay any interest on any Loan, any fee or any other amount (other than an amount referred to in clause (a)(i) of this Section) payable under this Agreement or under any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five or more Business Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Representations and Warranties</u>*. Any representation or warranty made or deemed made by or on behalf of any Credit Party in or pursuant to this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Agreement or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Specific Covenants</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.03(i), 6.04(i) (with respect to such Credit Party's existence) and 6.04(ii) or in Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Other Defaults</u>*. Any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clauses (a), (b) or (c) of this Section or in Section 6.07 of this Agreement in respect of Debt or Swap Contracts in circumstances where the failure to pay or perform the same would not give rise to an Event of Default under clause (e) of this Section) and such failure shall continue unremedied for a period of 30 or more days after notice thereof by the Administrative Agent to the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Cross-Default</u>*. The Borrower or any Subsidiary (other than any Securitization Subsidiary) shall (i) fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Debt (other than Debt under the Loan Documents) having an aggregate principal amount of more than the Threshold Amount in each case beyond the applicable grace period with respect thereto, if any; (ii) fail to observe or perform any other agreement or condition relating to any Debt having an aggregate principal amount of more than the Threshold Amount or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Debt (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Debt in an aggregate principal amount of more than the Threshold Amount to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Debt in an aggregate principal amount of more than the Threshold Amount to be made, prior to its stated maturity; <u>provided</u> that this clause (e)(ii) shall not apply to (A) secured Debt that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Debt, if such sale or transfer is permitted or not restricted hereunder and such Debt is repaid when required under the documents providing for such Debt or to the mere declaration or exercise of redemption rights which declaration or exercise is at the sole option of the holder of such Debt and (B) any voluntary prepayment, redemption, repurchase, conversion or settlement with respect to any debt security pursuant to its terms; or (iii) fail to make when due one or more required payments under one or more Swap Contracts (as a result of the occurrence of an "Early Termination Date" (as defined in such Swap Contract)) arising from an "Event of Default" (as defined in such Swap Contract) with respect to which the Borrower or Subsidiary is a "Defaulting Party" (as defined in such Swap Contract), which payments are in an aggregate principal amount exceeding the Threshold Amount; <u>provided</u> that, if any failure to pay or perform described in the foregoing clauses (i), (ii) or (iii) shall be cured by the Borrower or Subsidiary (as applicable), or waived by the holders of such Debt, in each case prior to the exercise of any remedies under Section 8.02, then the Event of Default under this Section 8.01(e) by reason of such failure to pay or perform shall be deemed likewise to have been thereupon cured or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Insolvency Proceedings, Etc</u>.* The occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (A) liquidation, reorganization, rehabilitation or other relief in respect of the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or its respective debts, or of a substantial part of its respective assets, under any Debtor Relief Law now or hereafter in effect or (B) the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its respective assets, and, in any such case, such proceeding or petition shall continue undismissed or unstayed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall (A) voluntarily commence any proceeding or file any petition seeking liquidation, rehabilitation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (B) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (f)(i) of this Section, (C) apply for or consent to the appointment of a receiver, rehabilitator, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary (other than any Securitization Subsidiary) or for a substantial part of its assets, (D) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (E) make a general assignment for the benefit of creditors or (F) take any corporate action for the purpose of effecting any of the foregoing; <u>provided</u> that, for purposes of clarity, no merger, dissolution, liquidation, consolidation or disposition permitted or not restricted by Section 7.05 (other than a merger, dissolution, liquidation, consolidation or disposition under any Debtor Relief Laws) shall constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Inability to Pay Debts; Attachment</u>.* The Borrower or any Material Subsidiary (other than any Securitization Subsidiary) shall become unable, admit in writing its inability or fail generally to pay its debts as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Judgments</u>*. The entry against the Borrower or any Subsidiary (other than any Securitization Subsidiary) of (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and does not deny coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect, and, in either case, there is a period of 45 consecutive days during which such judgment or order remains unpaid, undischarged, unvacated, unbonded or unstayed pending appeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>ERISA</u>*. The occurrence of an ERISA Event which results in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Change of Control</u>*. There occurs any Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *<u>Invalidity of Loan Documents</u>*. Any material provision of any Loan Document, at any time after its execution and delivery, ceases to be in full force and effect; or any Credit Party or any other Person contests in writing the validity or enforceability of any provision of any Loan Document; or any Credit Party denies in writing that it has any or further liability or obligation under any Loan Document, or purports in writing to revoke, terminate or rescind any Loan Document, in each case for any reason other than as expressly permitted hereunder or thereunder or in satisfaction in full of all non-contingent Obligations.

**Section 8.02 <u>Remedies Upon Event of Default</u>**. If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders take any or all of the following actions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) declare the obligation of each Lender to make extensions of the Loans to be terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) exercise on behalf of itself and the Lenders, all rights and remedies available to it and the Lenders under the Loan Documents; <u>provided</u> that, upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, in each case without further act of the Administrative Agent or any Lender.

**Section 8.03 <u>Application of Funds</u>**. After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations shall, subject to the provisions of Section 2.11, be applied by the Administrative Agent in the following order:

FIRST, to payment of that portion of the Obligations constituting fees, indemnities and expenses (other than principal and interest but including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

SECOND, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;

THIRD, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them;

FOURTH, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and LAST, the balance, if any, after all of the Obligations have been paid in full, to the Borrower or as otherwise required by Law.

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**ARTICLE IX.** 

**ADMINISTRATIVE AGENT** 

**Section 9.01 <u>Appointment and Authority</u>**. Each of the Lenders hereby irrevocably appoints Bank of Montreal to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. Except to the extent expressly set forth in Section 9.06, the provisions of this Article IX are solely for the benefit of the Administrative Agent and the Lenders and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Document (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. Without limiting the foregoing, each Lender authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.

**Section 9.02 <u>Rights as a Lender</u>**. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "<u>Lender</u>" or "<u>Lenders</u>" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any of the Borrower or its Subsidiaries or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

**Section 9.03 <u>Exculpatory Provisions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers (and shall be fully protected in so refraining from acting), except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender; <u>provided</u> that the Administrative Agent shall not be required to take any action that, (x) in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Laws, (y) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the Lenders with respect to such action or (z) is contrary to this Agreement or any other Loan Document or applicable law,

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including any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; <u>provided</u>, <u>further</u>, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Credit Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Credit Party to perform its obligations hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall be deemed not to have knowledge of any Default or the event or events that give or may give rise to any Default unless and until the Borrower or any Lender shall have given written notice thereof (stating that it is a "notice of default") to the Administrative Agent describing such Default and such event or events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty, representation or other information made or supplied in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or the adequacy, accuracy and/or completeness of the information contained therein, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing in this Agreement or any other Loan Document shall require the Administrative Agent or any of its Related Parties to carry out any "know your customer" or other checks in relation to any Person on behalf of any Lender, and each Lender confirms to the Administrative Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Administrative Agent or any of its Related Parties.

**Section 9.04 <u>Reliance by Administrative Agent</u>**. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless an officer of the Administrative Agent responsible for the transactions contemplated hereby shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made by or on behalf of any Credit Party in connection with this Agreement or any other Loan Document. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 10.06 and (ii) may rely on the Register to the extent set forth in Section 10.06(c).

**Section 9.05 <u>Delegation of Duties</u>**. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

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**Section 9.06 <u>Resignation and Removal of Administrative Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor Administrative Agent with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not to be unreasonably withheld); <u>provided</u> that no Ineligible Assignee may be appointed successor Administrative Agent without the written consent of the Borrower. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Resignation Effective Date</u>"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld). Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing to the Borrower and such Person, remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor Administrative Agent with the consent, so long as no Event of Default has occurred and is continuing, of the Borrower (such consent not be unreasonably withheld or delayed). If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Removal Effective Date</u>"), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In each case of clauses (a) and (b) of this Section 9.06, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment by the Resignation Effective Date or the Removal Effective Date, as applicable, the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Administrative Agent; <u>provided</u> that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan

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Documents. Prior to any retiring Administrative Agent's resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

**Section 9.07 <u>Non-Reliance on Administrative Agent and Other Lenders</u>**. Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

**Section 9.08 <u>No Other Duties, Etc.</u>** Anything herein to the contrary notwithstanding, neither BMO Capital Markets Corp. nor RBC Capital Markets, LLC shall not have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents in its capacity as a Joint Lead Arranger or a Joint Bookrunner, except in its capacity as the Administrative Agent or a Lender hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.06 and 10.04) allowed in such judicial proceeding; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.06 and 10.04.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

**Section 9.10 <u>Posting of Communications</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the "<u>Approved Electronic Platform</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Restatement Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED "AS IS" AND "AS AVAILABLE". THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE

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APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, "<u>APPLICABLE PARTIES</u>") HAVE ANY LIABILITY TO ANY CREDIT PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE ADMINISTRATIVE AGENT'S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.

"<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent or any Lender by means of electronic communications pursuant to this Section 9.10, including through an Approved Electronic Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender's email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the Lenders and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent's generally applicable document retention procedures and policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

**Section 9.11 <u>Certain ERISA Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that at least one of the following is and will continue to be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans or the Commitments,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 9623 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of sub-section (a) of Part I of PTE 84-14 are satisfied, and will continue to be satisfied, with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) such Lender has not provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent, the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Credit Party, that none of the Administrative Agent or any Arranger is a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

**Section 9.12 <u>Erroneous Payments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent (x) notifies a Lender, or any Person who has received funds on behalf of a Lender (any such Lender or other recipient (and each of their respective successors and assigns), a "<u>Payment Recipient</u>") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender or other Payment Recipient on its behalf) (any

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such funds, whether transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent pending its return or repayment as contemplated below in this Section 9.12 and held in trust for the benefit of the Administrative Agent, and such Lender shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting immediately preceding clause (a), each Lender or any Person who has received funds on behalf of a Lender (and each of their respective successors and assigns), agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 9.12(b).

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this Section 9.12(b) shall not have any effect on a Payment Recipient's obligations pursuant to Section 9.12(a) or on whether or not an Erroneous Payment has been made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender under any Loan Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under immediately preceding clause (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with immediately preceding clause (a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "<u>Erroneous Payment Return Deficiency</u>"), upon the Administrative Agent's notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Term Loans or Revolving Loans with respect to which such Erroneous Payment was made (the "<u>Erroneous Payment Impacted Class</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>Erroneous Payment Deficiency Assignment</u>") (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent (but the failure of such Person to deliver any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender, (D) the Administrative Agent and the Borrower shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Administrative Agent will reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to Section 10.06 (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrower or otherwise)), the Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative

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Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Loans acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Loans are then owned by the Administrative Agent) and (y) may, in the sole discretion of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such Lender) under the Loan Documents with respect to such amount (the "<u>Erroneous Payment Subrogation Rights</u>") (<u>provided</u> that the Credit Parties' Obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such Obligations in respect of Loans that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party; <u>provided</u> that this Section 9.12 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of the Borrower relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; <u>provided</u>, <u>further</u>, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's obligations, agreements and waivers under this Section 9.12 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

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**ARTICLE X.** 

**MISCELLANEOUS** 

**Section 10.01 <u>Amendments, Etc.</u>** Except as provided in Section 2.12 and Section 3.03(b) and subject to the last paragraph of this Section 10.01, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; <u>provided</u> that (x) the Administrative Agent and the Borrower may amend, modify or supplement this Agreement and any other Loan Document (1) to cure any ambiguity, omission, typographical error, mistake, defect or inconsistency if such amendment, modification or supplement does not adversely affect the rights of the Administrative Agent or any Lender, to comply with local law or the advice of local counsel, (2) to cause one or more Loan Documents to be consistent with other Loan Documents or (3) to implement the amendment referenced in the last sentence of Section 7.11(e) and (y) no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) waive any condition set forth in Section 4.01 without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) extend or increase the Commitment of any Lender without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) postpone any date fixed by this Agreement or any other Loan Document for any payment (but not any prepayment) of principal as set forth in Section 2.04, interest, fees or other amounts due to the Lenders (or any of them) without the written consent of each Lender directly affected thereby (it being understood that no amendment, modification or waiver of, or consent to departure from, any condition precedent, covenant, Default, Event of Default, waiver of default interest or mandatory prepayment shall constitute a postponement of any date scheduled for the payment of principal or interest or an extension of the final maturity of any Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce the principal of, or the rate of interest specified herein on, any Loan or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; <u>provided</u> that (A) any amendment to the financial covenant definitions, the financial ratios or any component thereof in this Agreement, in each case shall not constitute a reduction in the interest rates or the fees for purposes of this clause (iv) and (B) only the consent of the Required Lenders shall be required to amend the definition of "Default Rate" or to waive any obligation of the Borrower to pay interest at the Default Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) without the written consent of each Lender directly affected thereby, reduce the principal amount of, or extend the scheduled date of any amortization with respect to, any Loan, in each case as provided in Section 2.04(a) or 2.04(b) or change the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change the definition of "Applicable Percentage", Section 2.11, Section 8.03 or any other provision of this Agreement in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly affected thereby;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) change any provision of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all or substantially all of the aggregate value of the Guaranty, except as expressly permitted by the Loan Documents, without the written consent of each Lender;

and <u>provided further</u>, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document.

Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, to the fullest extent permitted by applicable Laws, such Lender will not be entitled to vote in respect of amendments and waivers hereunder and the Commitment and the outstanding Loans of such Lender hereunder will not be taken into account in determining whether the Required Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of "Required Lenders" will automatically be deemed modified accordingly for the duration of such period); <u>provided</u> that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender.

In addition, notwithstanding anything in this Section 10.01 to the contrary, if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be permitted to amend such provision, and, in each case, such amendment shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders to the Administrative Agent within ten Business Days following receipt of notice thereof.

**Section 10.02 <u>Notices;</u> <u>Effectiveness; Electronic Communication</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Notices Generally</u>*. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as expressly provided in Section 6.01 and subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower).

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Electronic Communications</u>*. Notices and other communications to the Lenders hereunder may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures approved by the Administrative Agent (including e-mail and Internet or intranet websites); <u>provided</u> that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Approved Electronic Platform shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the Approved Electronic Platform; <u>provided</u> that, for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Change of Address, Etc</u>.* The Borrower and the Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other

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communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Approved Electronic Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender's compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the Approved Electronic Platform and that may contain material non-public information with respect to the Borrower or their securities for purposes of United States Federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Reliance by Administrative Agent and Lenders</u>*. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic or electronic Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent and the Lenders and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

**Section 10.03 <u>No Waiver; Cumulative Remedies; Enforcement</u>**. No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein <u>provided</u>, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Borrower shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 9.01 for the benefit of all the Lenders; <u>provided</u> that the foregoing shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.11), or (iii) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to the Borrower under any Debtor Relief Law; and <u>provided further</u> that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (A) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 9.01 and (B) in addition to the matters set forth in clauses (ii) and (iii) of the preceding proviso and subject to Section 2.11, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

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**Section 10.04 <u>Expenses; Indemnity; Damage Waiver</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Costs and Expenses</u>*. The Borrower shall pay, subject to the occurrence of the Restatement Effective Date, (i) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent and the Agent-Related Persons (without duplication) (including the reasonable, documented and invoiced fees and disbursements of one firm of counsel for the Administrative Agent and the Agent-Related Persons, taken as a whole, and if necessary, of a single firm of local counsel in each applicable jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent), in connection with the syndication of the term loan and revolving facility provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof, and (ii) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent or any Lender in connection with the enforcement or protection of its rights under this Agreement and the other Loan Documents; <u>provided</u> that, pursuant to this clause (ii), the Borrower shall not be required to reimburse such out-of-pocket expenses of more than one firm of counsel to the Administrative Agent and the Lenders, taken as a whole (and if necessary, a single firm of local counsel to the Administrative Agent and the Lenders, taken as a whole, in each relevant jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions)) and, in the case of any actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected persons similarly situated taken as a whole) but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Indemnification by the Borrower</u>*. The Borrower shall indemnify the Administrative Agent, each Arranger, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including reasonable, documented and invoiced fees and disbursements of one firm of counsel to the Indemnitees taken as a whole and, if necessary, of a single firm of local counsel in each applicable jurisdiction for the Indemnitees taken as a whole (and, solely in the case of an actual or reasonably perceived conflict of interest, one additional counsel in each applicable jurisdiction to all affected Indemnitees, taken as a whole), but not including allocated costs of in-house counsel or expenses of any other third-party advisors without the Borrower's prior consent), to which any such Indemnitee may become subject, arising out of, or in connection with the financing contemplated hereby or the use of proceeds thereof or any actual or prospective claim, litigation, investigation or proceeding (a "<u>Proceeding</u>") relating to any of the foregoing, regardless of whether any such Indemnitee is a party thereto and whether or not such Proceeding was brought by the Borrower, its affiliates or equity holders, creditors or any other third party; <u>provided</u> that the foregoing indemnity will not, as to any Indemnitee, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, nonappealable judgment of a court of competent jurisdiction to (x) have resulted from (i) the willful misconduct, bad faith or gross negligence of such Indemnitee or any of such Indemnitee's Related Party (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (ii) a material breach of the funding obligations under this Agreement or the other Loan Documents of such Indemnitee or any Related Parties of such Indemnitee acting at such Indemnitee's direction or successors of any of the foregoing (as

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determined by a court of competent jurisdiction in a final and non-appealable decision) or (iii) any Proceeding that does not arise from any act or omission by the Borrower or any Subsidiaries and that is brought by any Indemnitee against any other Indemnitee (other than any claims against the Administrative Agent or the Arrangers in their capacity as such but subject to clauses (x)(i), (x)(ii) and (x)(iii) above) or (y) have resulted from any agreement governing any settlement effected without the Borrower's prior written consent (which consent shall not be unreasonably withheld or delayed) but if settled with the Borrower's written consent or if there is a final, nonappealable judgment in any such Proceeding, the Borrower agrees to indemnify and hold harmless each indemnified person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with, and to the extent required by, this Section 10.04(b). Each Indemnitee shall be obligated to refund and return any and all amounts paid by the Borrower (or on the Borrower's behalf) under this Section 10.04(b) to such Indemnitee to the extent such Indemnitee is not entitled to payment of such amounts in accordance with the terms of this Section 10.04(b). None of the Indemnitees or the Borrower shall be liable for any special, indirect, consequential or punitive damages in connection with this Agreement or the Loans (except to the extent of its indemnity or reimbursement obligations hereunder in respect of any losses, claims, damages, liabilities and expenses incurred or paid by an Indemnitee to a third party). This Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Reimbursement by Lenders</u>.* To the extent that the Borrower for any reason fails to pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party thereof (but without limiting the obligation of the Borrower under such subsection), each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) in its capacity as such, or against any Related Party thereof acting for the Administrative Agent (or any such sub-agent) in connection with such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Waiver of Consequential Damages, Etc</u>.* To the fullest extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Payments</u>.* All amounts due under this Section shall be payable not later than 10 Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Survival</u>.* The agreements in this Section 10.04 shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other Obligations.

**Section 10.05 <u>Payments Set Aside</u>**. To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (i) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (ii) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. The obligations of the Lenders under clause (ii) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

**Section 10.06 <u>Successors and Assigns</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Successors and Assigns Generally</u>*. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Assignments by Lenders</u>.* Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); <u>provided</u> that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Minimum Amounts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time owing to the assigning Lender or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (or the Commitments of such assigning Lender, to the extent such Commitments have not been terminated pursuant to Section 2.01), determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $1,000,000 or other than in $1,000,000 increments thereabove unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Proportionate Amounts</u>*. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Required Consents</u>*. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) and subsection (b)(v) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the written consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund and notice thereof is provided to the Administrative Agent and the Borrower; <u>provided</u> that the Borrower shall be deemed to have consented to any such assignment unless they shall object thereto by written notice to the Administrative Agent within ten Business Days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Assignment and Assumption</u>*. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; <u>provided</u> that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>No Assignment to Certain Persons</u>*. No such assignment shall be made (A) to the Borrower or any of the Borrower's Affiliates or Subsidiaries other than in accordance with Section 10.06(b)(vii), (B) to any Defaulting Lender or any of their respective subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), (C) to a natural person or (D) absent the written consent of the Borrower (which consent may be given or withheld at the Borrower's sole discretion), to any Person that was an Ineligible Assignee as of the applicable Trade Date. For the avoidance of doubt, with respect to any assignee that becomes an Ineligible Assignee after the Trade Date applicable to its assignment (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), (i) such assignee shall not retroactively be disqualified from having become a Lender pursuant to such assignment and (ii) such assignee will become an Ineligible Assignee in accordance with the definition thereof notwithstanding the consummation of such assignment and the execution by the Borrower of an Assignment and Assumption with respect to such assignee. Notwithstanding the foregoing, any assignment to an assignee that is or becomes an Ineligible Assignee (including any assignment in violation of clause (b)(v)(D)) shall not be void, but the provisions of paragraph (f) below shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Certain Additional Payments</u>*. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment will be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the written consent of the Borrower and the Administrative Agent, the applicable pro-rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro-rata share of all Loans and Commitments in accordance with its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder becomes effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest will be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u> that, except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Assignments to Affiliated Lenders</u>*. Notwithstanding anything to the contrary contained in this Section 10.06 or any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) assignments to the equity holders of the Borrower and their respective affiliates (other than the Borrower and its Subsidiaries) (each, an "<u>Affiliated Lender</u>") shall be permitted subject to the following limitations; <u>provided</u> that an Affiliated Lender that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities and that exercise independent discretion from the private equity business of Altamont (each, a "<u>Debt Fund Affiliate</u>"), will only be subject to the limitations set forth in clause (6):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Affiliated Lenders will not be permitted to (I) receive information provided solely to Lenders by the Administrative Agent or any Lender, (II) attend/participate in conference calls or meetings attended solely by the Lenders and the Administrative Agent, (III) make or bring (other than as a passive participant or recipient of its pro rata benefits of) any claim, in its capacity as a Lender, against the Administrative Agent (except with respect to any rights expressly retained by such Affiliated Lender under this Agreement and the other Loan Documents, which shall not be required to be waived) or (IV) receive advice of counsel to the Administrative Agent or any other Lender (other than counsel to Affiliated Lenders), or challenge the Administrative Agent's or any other Lender's attorney-client privilege;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for purposes of any amendment, waiver or modification of this Agreement or the other Loan Documents or any plan of reorganization or liquidation that in either case does not require the consent of each Lender or does not adversely affect such Affiliated Lender (in its capacity as a Lender) as compared to other Lenders, Loans held by Affiliated Lenders shall be excluded in the determination of any vote by the Required Lenders and shall be deemed not to be outstanding (or shall be deemed to have voted in the same proportion as non-affiliated Lenders voting on such matter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount of Loans under this Agreement purchased by Affiliated Lenders other than Debt Fund Affiliates may not exceed 25% of the outstanding principal amount of all Loans under this Agreement (after giving effect to such purchase);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any purchases by Affiliated Lenders shall require that such Affiliated Lender clearly identify itself as an Affiliated Lender in any Assignment and Assumption in connection with such purchases or sales and each such assignment and assumption shall contain a customary "big boy" representation but there shall be no requirement to make a representation as to the absence of any material non-public information;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Loans owned or held by Affiliated Lenders (i) shall be excluded in any determination of a vote by "Required Lenders" and (ii) shall be voted by the Administrative Agent in its discretion in connection with any plan or reorganization in an insolvency proceeding unless such plan affects the holder thereof, in its capacity as such, in a disproportionately adverse manner relative to the treatment of the other Lenders, in which case such Affiliated Lender will not be permitted to vote on matters submitted to Lenders for consideration (including in connection with any plan of reorganization) and their Loans shall be disregarded in determining other Lenders' Commitment and the Applicable Percentages; <u>provided</u> that (A)(i) the commitments or obligations of any Affiliated Lender shall not be increased, (ii) the due dates for payments of interest and scheduled amortization (including at maturity) of any Loans owed to any Affiliated Lender will not be extended and (iii) the amounts owing to any Affiliated Lender will not be reduced, in each instance in clauses (i) through (iii), without the consent of such Affiliated Lender, (B) Affiliated Lenders shall have the right to vote on any amendment, modification, waiver or consent that would require the vote of all Lenders or the vote of all Lenders directly and adversely affected thereby and (C) no amendment, modification, waiver or consent shall affect any Affiliated Lender (in its capacity as a Lender) in a manner that is disproportionate to the effect on any Lender of the same class or that would deprive such Affiliated Lender of its pro rata share of any payments to which it is entitled; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) for purposes of determining whether the Required Lenders have consented to any amendment or waiver under this Agreement or the other Loan Documents, the aggregate principal amount of Loans held by Debt Fund Affiliates will be excluded to the extent in excess of 49.9% of the amount required to constitute the "Required Lenders";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) so long as no Default or Event of Default has occurred and is continuing or would result therefrom, each Lender shall have the right at any time to sell, assign or transfer all or a portion of the Loans owing to it to the Borrower or its Subsidiaries on a non-pro rata basis (<u>provided</u> that each assignment shall be of a uniform, and not varying, percentage of all rights and obligations under and in respect of any applicable Loan), subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower may conduct one or more modified Dutch auctions (each, an "<u>Auction</u>") to repurchase all or any portion of the Loans; <u>provided</u> that (A) notice of the Auction shall be made to all Lenders and (B) the Auction shall be conducted pursuant to such procedures as the Auction Manager may establish which are consistent with this Section 10.06(b)(vii)(B) and the Auction Procedures set forth on Exhibit H and are otherwise reasonably acceptable to the Borrower, the Auction Manager and the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to all repurchases made by the Borrower pursuant to this Section 10.06(b)(vii)(B), (A) the Borrower shall deliver to the Administrative Agent and the Auction Manager a certificate of a Responsible Officer stating that (i) no Default or Event of Default has occurred and is continuing or would result from such repurchase and (ii) as of the launch date of the related Auction and the effective date of any Borrower Assignment and Acceptance, it is not in possession of any information regarding the Borrower or any of its Subsidiaries, the Borrower's ability to perform its Obligations or any other matter that may be material to a decision by any Lender to participate in any Auction or enter into any Borrower Assignment and Acceptance or any of the transactions contemplated thereby that has not previously been disclosed to the Administrative Agent, the Auction Manager and the non-Public Lenders and (B) the assigning Lender and the Borrower shall execute and deliver to the Administrative Agent and the Auction Manager a Borrower Assignment and Acceptance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Following repurchase by the Borrower or any Subsidiary pursuant to this Section 10.06(b)(vii)(B), the Loans so repurchased shall, without further action by any Person, be immediately and automatically cancelled for all purposes and no longer outstanding (and may not be resold by the Borrower), for all purposes of this Agreement and all other Loan Documents, including (A) the making of, or the application of, any payments to the Lenders under this Agreement or any other Loan Document, (B) the making of any request, demand, authorization, direction, notice, consent or waiver under this Agreement or any other Loan Document or (C) the determination of Required Lenders, or for any similar or related purpose, under this Agreement or any other Loan Document. In connection with the Loans repurchased and cancelled pursuant to this Section 10.06(b)(vii)(B), the Administrative Agent is authorized to make appropriate entries in the Register to reflect any such cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Register</u>.* The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Participations</u>.* Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person, a Defaulting Lender or the Borrower, any of the Borrower's Affiliates or Subsidiaries or an Ineligible Assignee) (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the

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performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt: (i) each Lender shall be responsible for the indemnity under Section 10.04(c) without regard to the existence of any participation; and (ii) with respect to any participant that becomes an Ineligible Assignee after the Trade Date applicable to its participation (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the proviso to the definition of "Ineligible Assignee"), such participant shall not retroactively be disqualified from having become a participant pursuant to the applicable participation agreement. Notwithstanding the foregoing, any participation to a participant that becomes an Ineligible Assignee shall be subject to the provisions of paragraph (f) below.

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clause (y) of the first proviso to Section 10.01 that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations therein, including the requirements under Section 3.01(g) (it being understood that the documentation required under Section 3.01(g) shall be delivered to the Lender who sells the participation)); <u>provided</u> that such Participant (A) agrees to be subject to the provisions of Sections 3.06 and 10.13 as if it were an assignee under subsection (b) of this Section and (B) shall not be entitled to receive any greater payment under Sections 3.01 or 3.04, with respect to any participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after such Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.06 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender; <u>provided</u> that such Participant agrees to be subject to Section 2.11 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any Commitment or Loan or any of its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Proposed Treasury Regulation Section 1.163-5(b). The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Certain Pledges</u>*. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) in accordance with applicable Laws to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Certain Provisions Pertinent to Ineligible Assignees</u>*. If any assignment is made to any Ineligible Assignee without the Borrower's prior consent in violation of paragraph (b)(v)(D) above, or if any Lender becomes an Ineligible Assignee after the Trade Date of the applicable assignment to such Lender, the Borrower may, at their sole expense and effort, upon notice to the applicable Ineligible Assignee and the Administrative Agent, require such Ineligible Assignee to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in this Section 10.06), all of its interest, rights and obligations under this Agreement and related Loan Documents to an Eligible Assignee that shall assume such obligations at a purchase price equal to the lesser of (x) the principal amount thereof and (y) the amount that such Ineligible Assignee paid to acquire such interests, rights and obligations, in each case, plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to such Ineligible Assignee hereunder and under the other Loan Documents; <u>provided</u> that (i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in 10.06(b) and (ii) such assignment does not conflict with applicable Laws.

Notwithstanding anything to the contrary contained in this Agreement, (i) Ineligible Assignees that are either Lenders or participants of Lenders will not (A) have any inspection rights or the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (B) attend or participate in meetings attended by the Lenders and the Administrative Agent or (C) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (ii)(A) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Ineligible Assignee (whether a direct Lender or a participant) will be deemed to have consented in the same proportion as the Lenders that are not Ineligible Assignees consented to such matter, and (B) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws ("<u>Plan of Reorganization</u>"), each Ineligible Assignee (whether a direct Lender or a participant) hereby agrees (1) not to vote on such Plan of Reorganization, (2) if such Ineligible Assignee does vote on such Plan of Reorganization notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Plan of Reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (3) not to contest any request by any party for a determination by the bankruptcy court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

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The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, (i) to post the list of Ineligible Assignees provided by the Borrower and any updates thereto from time to time (collectively, the "<u>Ineligible Institution List</u>")<u> </u>on the Approved Electronic Platform, including that portion of the Approved Electronic Platform that is designated "Public Side Information", and (ii) to provide the Ineligible Institution List to each Lender or Participant or prospective Lender or Participant requesting the same. The Administrative Agent shall not be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is an Ineligible Assignee or enforce compliance with the provisions relating to Ineligible Assignees or have any liability with respect to or arising out of any assignment or participation of Loans and commitments under this Agreement, or disclosure of confidential information, to any Ineligible Assignee.

**Section 10.07 <u>Treatment of Certain Information; Confidentiality</u>**. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and its Affiliates' respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any administrative agency or regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by the order of any court, pending legal or judicial or administrative proceeding, or otherwise as required by applicable laws or regulations or by any subpoena, compulsory legal process or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same (or at least as restrictive) as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (B)(1) any direct, indirect, actual or prospective counterparty (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap, derivative or securitization or other similar transaction under which payments are to be made by reference or to any credit insurance provider in each case relating to the Borrower and its obligations, this Agreement or payments hereunder or (2) any credit insurance provider relating to the Borrower and its obligations, or (C) the CUSIP Service Bureau or any similar organization, (vii) to any rating agency, in consultation with the Borrower, (viii) with the written consent of the Borrower, (ix) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower, (x) for purposes of establishing a "due diligence" defense or (xi) pursuant to customary disclosure about the terms of the financing contemplated hereby in the ordinary course of business to market data collectors and similar service providers to the loan industry for league table purposes. For purposes of this Section, "<u>Information</u>" means all information received from the Borrower or any Subsidiaries relating to the Borrower or any Subsidiaries or any of their respective businesses, including the identity of Ineligible Assignees, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiaries; <u>provided</u> that in the case of information received from the Borrower

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or any Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Administrative Agent and the Lenders acknowledges that (i) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (ii) it has developed compliance procedures regarding the use of material non-public information and (iii) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities Laws.

**Section 10.08 <u>Right of Setoff</u>**. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender to or for the credit or the account of the Borrower, excluding any custodial, trust or special reserve accounts, against any and all of the obligations of the Borrower, now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement but only at the time when such obligations are due and payable in accordance with the terms of this Agreement or any other Loan Document and although such obligations of the Borrower are owed to a branch, or office of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; <u>provided</u> that, in the event that any Defaulting Lender exercises any such right of setoff, (x) all amounts so set off will be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.11(a) and, pending such payment, will be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders and (y) the Defaulting Lender will provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender may have, but subject to Section 8.02. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

**Section 10.09 <u>Interest Rate Limitation</u>**. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents (including interest paid at the Default Rate) shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "<u>Maximum</u> <u>Rate</u>"). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (i) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

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**Section 10.10 <u>Counterparts; Integration</u>**. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means (*e.g.* "<u>pdf</u>" or "<u>tif</u>") shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

**Section 10.11 <u>Survival of Representations and Warranties</u>**. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

**Section 10.12 <u>Severability</u>**. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 10.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the extent not so limited.

**Section 10.13 <u>Replacement of Lenders</u>**. If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06 or if any Lender is a Defaulting Lender or Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Default or Event of Default shall have occurred and be continuing on the date of such assignment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Section 10.14 <u>Governing Law; Jurisdiction; Etc</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>GOVERNING LAW</u>*. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>SUBMISSION TO JURISDICTION</u>*. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN (OR IF SUCH COURT LACKS SUBJECT MATTER JURISDICTION, THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY (AND ANY SUCH CLAIMS, CROSS-CLAIMS OR THIRD-PARTY CLAIMS BROUGHT AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED

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PARTIES MAY ONLY) BE HEARD AND DETERMINED IN SUCH FEDERAL (TO THE EXTENT PERMITTED BY LAW) OR NEW YORK STATE COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST THE CREDIT PARTIES OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>WAIVER OF VENUE</u>*. (i) EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (ii) THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>SERVICE OF PROCESS</u>*. EACH OF THE PARTIES HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

**Section 10.15 <u>Waiver of Jury Trial</u>**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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**Section 10.16 <u>No Advisory or Fiduciary Responsibility</u>**. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (i)(A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Arrangers and the Lenders, are arm's-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)(A) the Administrative Agent, each of the Arrangers and each of the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) none of the Administrative Agent, any Arranger nor any Lender has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Administrative Agent, any Arranger nor any Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Administrative Agent, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

**Section 10.17 <u>Electronic Execution of Assignments and Certain Other Documents</u>**. The words "execution", "signed", "signature", and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

**Section 10.18 <u>USA PATRIOT Act</u>**. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>"), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as

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applicable, to identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Act.

**Section 10.19 <u>Judgment Currency</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Borrower hereunder and under the other Loan Documents to make payments in a specified currency (the "<u>Obligation Currency</u>") shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent or a Lender of the full amount of the Obligation Currency expressed to be payable to it under this Agreement or another Loan Document. If, for the purpose of obtaining or enforcing judgment against the Borrower in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the "<u>Judgment Currency</u>") an amount due in the Obligation Currency, the conversion shall be made, at the rate of exchange (as quoted by the Administrative Agent or if the Administrative Agent does not quote a rate of exchange on such currency, by a known dealer in such currency designated by the Administrative Agent) determined, in each case as of the Business Day immediately preceding the date on which the judgment is given (such Business Day being hereinafter referred to as the "<u>Judgment Currency Conversion Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrower covenants and agrees to pay, or cause to be paid, or remit, or cause to be remitted, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of determining any rate of exchange or currency equivalent for this Section 10.19, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency.

**Section 10.20 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>**. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

**Section 10.21 <u>Acknowledgment Regarding Any Supported QFCs</u>**. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>" and each such QFC a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

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**Section 10.22 <u>Existing Credit Agreement Amended and Restated; Consents to Amendments to Existing Loan Documents</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon satisfaction of the conditions precedent to the effectiveness of this Agreement on the Restatement Effective Date, (i) this Agreement shall amend and restate the Existing Credit Agreement in its entirety, (ii) the rights and obligations of the parties under the Existing Credit Agreement shall be subsumed within and be governed by this Agreement; <u>provided</u>, <u>however</u>, that all Obligations (as defined in the Existing Credit Agreement) of the Credit Parties (as defined in this Agreement) shall constitute continuing Obligations hereunder, and neither this Agreement nor any other Loan Document shall be deemed to evidence or result in a novation or repayment and reborrowing of such Obligations, and (iii) all references to the Existing Credit Agreement in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Credit Party, the Administrative Agent and each Lender hereby consents to the amendment and restatement of the Existing Guarantee Agreement (as defined in the Guaranty) effected by the Guaranty.

**[Signature pages follow]** 

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

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| | |
|:---|:---|
| **<u>BORROWER</u>**: | **<u>BORROWER</u>**: |
| **ACCELERANT HOLDINGS** | **ACCELERANT HOLDINGS** |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **<u>GUARANTORS</u>**: | **<u>GUARANTORS</u>**: |
| **ACCELERANT HOLDINGS (CAYMAN) LTD.** | **ACCELERANT HOLDINGS (CAYMAN) LTD.** |
| By: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** | **ACCELERANT DISTRIBUTION HOLDINGS LIMITED** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT US HOLDINGS, LLC** | **ACCELERANT US HOLDINGS, LLC** |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT MALTA HOLDINGS LIMITED** | **ACCELERANT MALTA HOLDINGS LIMITED** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT UNDERWRITING MANAGERS, INC.** | **ACCELERANT UNDERWRITING MANAGERS, INC.** |
| By: | /s/ Jeffrey Lee Radke |
| Name: | Jeffrey Lee Radke |
| Title: | Director |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** | **ACCELERANT US DISTRIBUTION HOLDINGS, LLC** |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

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[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

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| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** | **ACCELERANT US SERVICES COMPANY HOLDINGS, LLC** |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT US SERVICES COMPANY, LLC** | **ACCELERANT US SERVICES COMPANY, LLC** |
| By: | /s/ Mike McAuliffe |
| Name: | Mike McAuliffe |
| Title: | President |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **CORNICHE ACQUISITION CO. LTD.** | **CORNICHE ACQUISITION CO. LTD.** |
| By: | /s/ George Peto |
| Name: | George Peto |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **AYAX (UK) ACQUISITION CO. LTD.** | **AYAX (UK) ACQUISITION CO. LTD.** |
| By: | /s/ George Peto |
| Name: | George Peto |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT SERVICES UK LIMITED** | **ACCELERANT SERVICES UK LIMITED** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **M2 ACQUISITION CO. LTD.** | **M2 ACQUISITION CO. LTD.** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **ARB ACQUISITION CO. LTD.** | **ARB ACQUISITION CO. LTD.** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **EVERST RM ACQUISITION CO. LTD.** | **EVERST RM ACQUISITION CO. LTD.** |
| By: | /s/ Christopher Lee-Smith |
| Name: | Christopher Lee-Smith |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT AGENCY LIMITED** | **ACCELERANT AGENCY LIMITED** |
| By: | /s/ Keith Harrison |
| Name: | Keith Harrison |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **ACCELERANT HOLDINGS UK LTD.** | **ACCELERANT HOLDINGS UK LTD.** |
| By: | /s/ Keith Harrison |
| Name: | Keith Harrison |
| Title: | Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT</u>:** | **<u>ADMINISTRATIVE AGENT</u>:** |
| **BANK OF MONTREAL**, as Administrative Agent | **BANK OF MONTREAL**, as Administrative Agent |
| By: | /s/ Collin Wagner |
| Name: | Collin Wagner |
| Title: | Vice President |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| <u>**LENDERS**:</u> | <u>**LENDERS**:</u> |
| **BANK OF MONTREAL**, as a Lender | **BANK OF MONTREAL**, as a Lender |
| By: | /s/ Collin Wagner |
| Name: | Collin Wagner |
| Title: | Vice President |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **LLOYDS BANK PLC,** | **LLOYDS BANK PLC,** |
| as Lender | as Lender |
| By: | /s/ Lee Chester |
| Name: | Lee Chester |
| Title: | Associate Director |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **HSBC BANK PLC,** as Lender | **HSBC BANK PLC,** as Lender |
| By: | /s/ Christine So |
| Name: | Christine So |
| Title: | Relationship Director, UKFI |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **Royal Bank of Canada,** | **Royal Bank of Canada,** |
| as Lender | as Lender |
| By: | /s/ Colleen Osborne |
| Name: | Colleen Osborne |
| Title: | Authorized Signatory |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| THE TORONTO-DOMINION BANK, NEW YORK BRANCH, | THE TORONTO-DOMINION BANK, NEW YORK BRANCH, |
| as Lender | as Lender |
| By: | /s/ Betty Chang |
| Name: | Betty Chang |
| Title: | Authorized Signatory |

---

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

------

---

| | |
|:---|:---|
| **Wells Fargo Bank, N.A.,** | **Wells Fargo Bank, N.A.,** |
| as Lender | as Lender |
| By: | /s/ Jason Hafener |
| Name: | Jason Hafener |
| Title: | Managing Director |

---

[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

------

Schedule 2.01

Commitments

---

| | | |
|:---|:---|:---|
| Lender | Term Loan Commitments | Revolving Commitments |
|  Bank of Montreal | $25000000.00 | $10000000.00 |
|  HSBC Bank PLC | $20892857.14 | $8357142.86 |
|  Lloyds Bank PLC | $20892857.14 | $8357142.86 |
|  The Toronto-Dominion Bank, New York Branch | $20892857.14 | $8357142.86 |
|  Wells Fargo Bank, N.A. | $20892857.14 | $8357142.86 |
|  Royal Bank of Canada | $16428571.43 | $6571428.57 |
|  Total | $125000000.00 | $50000000.00 |

---

## Exhibit 10.16

**Exhibit 10.16** 

***EXECUTION VERSION***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

December 28, 2021

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale | 1 |
|  Section 2. | Closing; Closing Deliverables | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2A. | Closing | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2B. | Company Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2C. | Purchaser Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2D. | Additional Closing Deliverables; Filing of A&R Memorandum and Articles of Association | 2 |
|  Section 3. | Representations and Warranties of the Company | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3A. | Organization | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3B. | Equity Interests and Related Matters | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3C. | Subsidiaries | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D. | Authorization | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3E. | Noncontravention | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3F. | Governmental Consents and Filings | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3G. | Reorganization | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3H. | Financial Statements and Related Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3I. | Absence of Undisclosed Liabilities and Certain Changes | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3J. | Assets | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3K. | Tax Matters | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3L. | Contracts and Commitments | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M. | Intellectual Property | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3N. | Litigation, Solvency, etc. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3O. | Insurance | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3P. | Employees | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Q. | Compliance with Laws | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3R. | Affiliated Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3S. | Real Property | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3T. | Data Privacy | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3U. | Insurance Issued by the Insurance Subsidiaries | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3V. | Permits and Licenses | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3W. | Reinsurance | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3X. | Investment Assets | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Y. | Reserves | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Z. | Regulatory Filings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3AA. | Distributors and Brokers; Third-Party Administrators | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3BB. | No Other Representations or Warranties | 16 |
|  Section 4. | Representations and Warranties of the Purchasers | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4A. | Organization | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4B. | Authorization | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4C. | Noncontravention | 16 |

---

i

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4D. | Governmental Consents and Filings | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4E. | Brokerage | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4F. | Funds | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4G. | Investment Representations and Warranties | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4H. | Investigation by the Purchaser | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4I. | [Reserved] | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4J. | Certain Agreements of the Purchaser | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4K. | AEOI | 18 |
|  Section 5. | Definitions | 19 |
|  Section 6. | Indemnification | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6A. | Survival of Representations and Warranties | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6B. | Indemnification Generally | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6C. | Limitations on Indemnification | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6D. | Indemnification Procedures | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6E. | Tax Treatment | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6F. | Exclusive Remedy | 29 |
|  Section 7. | Covenants; Miscellaneous Provisions | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7A. | Press Release and Announcements | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7B. | Consent to Amendments | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7C. | Successors and Assigns | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7D. | Severability | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7E. | Counterparts | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7F. | Descriptive Headings; Interpretation | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7G. | Entire Agreement | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7H. | No Third-Party Beneficiaries | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7I. | Governing Law | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7J. | Notices | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7K. | No Strict Construction | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7L. | WAIVER OF JURY TRIAL | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7M. | Submission to Jurisdiction | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7N. | Further Assurances | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7O. | No Recourse | 33 |

---

ii

------

<u>APPENDICES, SCHEDULES AND EXHIBITS</u> 

Appendices:

Appendix A - Purchasers; Purchased Shares; Purchase Price <br> Appendix B - Material Subsidiaries

<u>Schedules</u>:<u> </u>

---

| | |
|:---|:---|
|  Schedule A | Organization |
|  Schedule B | Equity Interests and Related Matters |
|  Schedule C | Subsidiaries |
|  Schedule F | Governmental Consents and Filings |
|  Schedule H | Financial Statements and Related Matters |
|  Schedule K | Tax Matters |
|  Schedule L | Contracts and Commitments |
|  Schedule M | Intellectual Property |
|  Schedule N | Litigation, Solvency, etc. |
|  Schedule Q | Compliance with Laws |
|  Schedule R | Affiliated Transactions |
|  Schedule S | Real Property |
|  Schedule W | Reinsurance |

---

<u>Exhibits</u>:

---

| | |
|:---|:---|
|  Exhibit A | A&R Memorandum and Articles of Association |
|  Exhibit B | Shareholders Agreement |
|  Exhibit C | GP Side Letter |

---

iii

------

**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of December 28, 2021, by and among Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>") and the purchasers set forth on <u>Appendix A</u> hereto (the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Amended and Restated Memorandum and Articles of Association of the Company, entered into as of even date herewith, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class A Convertible Preference Shares and Class A-1 Convertible Preference shares, in each case, set forth opposite such Purchaser's name on <u>Appendix</u> <u>A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u> (the "<u>Class</u> <u>A Convertible Preference Issuance</u>"):

Section 2. <u>Closing</u>; <u>Closing Deliverables</u>.

2A. <u>Closing</u>. The Class A Convertible Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section</u> <u>2B</u>, <u>Section</u> <u>2C</u> and <u>Section</u> <u>2D</u> substantially simultaneously with the execution and delivery of this Agreement (the "<u>Closing</u>"). The date hereof is referred to herein as the "<u>Closing Date</u>." At the Closing, the Parties shall consummate the transactions contemplated by this Agreement in the following manner and in the following order (except that each of such transactions shall be deemed to have been consummated simultaneously and none of the transactions described in this <u>Section</u> <u>2A</u> shall be consummated unless all of such transactions are consummated):

------

2B. <u>Company Closing Deliverables</u>. At the Closing, the Company shall deliver to each Purchaser each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated as of the Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class A Convertible Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party and (C) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares have been issued to each Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix</u> A; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one or multiple counterparts to the shareholders agreement, in the form attached hereto as <u>Exhibit B</u> (the "<u>Shareholders Agreement</u>"), duly executed by the Company and each shareholder of the Company (other than the Purchasers).

2C. <u>Purchaser Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the Closing, each Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash. equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>"); *provided, however,* that the Lead Purchaser shall deliver its corresponding portion of the Closing Payment on the day immediately following the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a counterpart to the Shareholders Agreement, duly executed by such Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At the Closing, each Purchaser shall deliver to each other Purchaser a counterpart to the Shareholders Agreement, duly executed by such Purchaser.

2D. <u>Additional Closing Deliverables</u>; <u>Filing of A&R Memorandum and Articles of Association</u>. At the Closing, in addition to the deliverables set forth in <u>Section</u> <u>2B</u> and <u>Section</u> <u>2C</u>, respectively, (i) the Company shall deliver to the Lead Purchaser a counterpart to the GP Side Letter, duly executed by the General Partner and ACP Accelerant Holdings, L.P., and (ii) the Lead Purchaser shall deliver to the Company a counterpart to the GP Side Letter, duly executed by the Lead Purchaser. Promptly following the Closing, the Company shall file the A&R Memorandum and Articles of Association with the General Registry of the Cayman Islands and shall provide prompt reasonable evidence of such filing to the Purchasers.

------

Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Closing (and before giving effect to the Class A Convertible Preference Issuance), the authorized and outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately following the Closing (and after giving effect to the Class A Convertible Preference Issuance), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Class B Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. Upon the Closing, other than as set forth on <u>Schedule B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the A&R Memorandum and Articles of Association or the Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class A Convertible Preference Issuance, in each case, other than as explicitly set forth in the Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

------

3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class A Convertible Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Except as set forth in <u>Schedule F</u> or would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in <u>Section</u> <u>4G</u> and <u>Section</u> <u>4I</u>, the Class A Convertible Preference Issuance will be exempt from registration under applicable securities Laws.

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3G. <u>Reorganization</u>. Prior to the consummation of the transactions contemplated by this Agreement, the Company participated in certain reorganization transactions (collectively, the "<u>Reorganization</u>") whereby, among other steps, (a) the Class B Common Shareholder (by action of the General Partner) contributed to the Company all of the limited partnership interests in Issuer Holdings and (b) immediately following the contribution contemplated by clause (a), (i) the BOM Debt Facility was novated to the Company, (ii) Issuer Holdings (by action of the General Partner) distributed to the Company all of its assets and liabilities (which consist solely of all outstanding shares of capital stock of the Predecessor and any liabilities associated with the BOM Debt Facility). As a result of the Reorganization, the Company will have, as of the Closing, all of the assets and liabilities of Issuer Holdings and no other assets and liabilities other than *de minimis* liabilities in connection with its formation.

3H. <u>Financial Statements and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule H</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Predecessor as of December 31, 2020 and December 31, 2019 and the audited statements of income and cash flows for the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Predecessor as of September 30, 2021 (the "<u>Latest Balance Sheet</u> Date") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with IFRS consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3I. <u>Absence of Undisclosed Liabilities and Certain Changes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with IFRS, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement, since the Latest Balance Sheet Date, each of the Predecessor, Issuer Holdings, the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3I(ii</u>).

3J. <u>Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

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3K. <u>Tax Matters</u>. Except as set forth on <u>Schedule K</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

3L. <u>Contracts and Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement or as set forth on the attached <u>Schedule L</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule L</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

3M. <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule M</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3N. <u>Litigation</u>, <u>Solvency</u>, <u>etc</u>. Except as set forth on the attached <u>Schedule N</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims <u>(</u>"<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

3O. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Closing will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

3P. <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and hour laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

3Q. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule Q</u> or as specifically addressed in <u>Sections 3K(i</u>), <u>3Q(i</u>), <u>3R(iii</u>), <u>3V(i</u>), 3W, <u>3X(ii</u>), <u>3X(iv</u>), <u>3X(v</u>), <u>3X(vi</u>), <u>3BB(iv</u>), and <u>3EE(i</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

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3R. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule R</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3S. <u>Real Property</u>. Except as set forth on <u>Schedule S</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule S</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in breach of or default under such Lease beyond applicable notice and cure periods, and no event has occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3T. <u>Data Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company,

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(A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

3U. <u>Insurance Issued by the Insurance Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect, and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3V. <u>Permits and Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit. As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

3W. <u>Reinsurance</u>. Part one of <u>Schedule W</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such

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Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Reinsurance Agreement that, if determined adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule W</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3X. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>"). No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

3Y. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2019 and 2020, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

3Z. <u>Regulatory Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

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3AA. <u>Distributors and Brokers</u>; <u>Third-Party Administrators</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced insurance business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance Subsidiary, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right (1) to receive any payment based on the profitability or financial performance of any of the Insurance Contracts or (2) to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

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3BB. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section</u> <u>3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

Section 4. <u>Representations and Warranties of the Purchasers</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law applicable to such Purchaser.

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4D. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

4E. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

4F. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4G. <u>Investment Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, as applicable, are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, as applicable pursuant to the Class A Convertible Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class A Convertible Preference Shares or Class A-1 Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the Shareholders Agreement and applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class A Convertible Preference Shares and Class A-1 Convertible Preference Shares, as applicable, are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan Assets Entity</u>") deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described

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benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class A Convertible Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>[Reserved]</u>. [Reserved]

4J. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

4K. <u>AEOI</u>. Such Purchaser acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4K</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B(ii</u>), Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI <u>(</u>"<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>Accelerant Holdings (Cayman</u>)" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters — the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

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"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v</u>).

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3J(i</u>).<u> </u>

"<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i</u>).

"<u>BOM Debt Facility</u>" means that certain Credit Agreement, dated as of January 29, 2021, among Accelerant Holdings LP, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of Montreal, as administrative agent, as assigned to (and assumed by) Issuer Holdings on July 2, 2021.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>A Convertible Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1</u>.

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>A-1 Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>B Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections 3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and 3E(i).

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

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"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii</u>).

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.

"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv</u>).

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3AA</u>.

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3P(i</u>).

"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>311(i</u>).

"<u>Fraud</u>" shall be defined in accordance with the laws of the State of New York, without giving effect to its choice of law provisions (but does not include negligent or reckless misrepresentation or omission).

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power

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of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

"<u>GP Side Letter</u>" means that certain letter agreement, dated as of the date hereof, by and between the General Partner, ACP Accelerant Holdings, L.P. and the Lead Purchaser, a copy of which is attached hereto as <u>Exhibit B</u>.

"<u>IFRS</u>" means International Financial Reporting Standards.

"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i</u>).

"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the <u>Insurance Subsidiaries Schedule</u>.

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"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3X</u>.

"<u>Issuer Holdings</u>" means Accelerant Issuer Holdings LP, a Cayman Islands exempted limited partnership.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3H(i</u>).

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3H(i</u>).

"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

"<u>Lead Purchaser</u>" means Eldridge Accelerant Funding, LLC.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

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"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

"<u>Lookback Date</u>" means January 1, 2020.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.

"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3L(i</u>).

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix</u> <u>B</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7O</u>.

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3V</u>.

"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations, and zoning, entitlement, building, land use and planning restrictions and regulations imposed by

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Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v</u>).

"<u>Predecessor</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3N</u>.

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i</u>).

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3W</u>.

"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted limited partnership.

"<u>Reorganization</u>" has the meaning set forth in <u>Section</u> <u>3G</u>.

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"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Shareholders Agreement</u>" has the meaning set forth in <u>Section</u> <u>2B(ii</u>).

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.

"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

"<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the Shareholders Agreement, the GP Side Letter and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

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Section 6. <u>Indemnification</u>.

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty, covenant or other agreement contained herein shall terminate is referred to as the "<u>Survival Date</u>." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

6B. <u>Indemnification Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or non-performance of any agreement or covenant of the Company contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not jointly) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non-performance of any agreement or covenant of such Purchaser contained in this Agreement.

6C. <u>Limitations on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a</u>) shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a</u>) shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

6D. <u>Indemnification Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); <u>provided</u>, <u>however</u>, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article</u> 6 except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10 Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

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Section 7. <u>Covenants; Miscellaneous Provisions</u>.

7A. <u>Press Release and Announcements</u>. Unless required by Law (in which case the Company and the Lead Purchaser (and any other applicable Purchaser) agree to consult with each other prior to any such disclosure as to the form and content of such disclosure), no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Lead Purchaser and the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; <u>provided</u>, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

7B. <u>Consent to Amendments</u>. This Agreement may be amended, or any provision of this Agreement may be waived, only if set forth in a writing executed by the Company and the Lead Purchaser; provided, however, that no amendment to this Agreement shall materially and disproportionately adversely affect any Purchaser without the prior written consent of such Purchaser. No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

7C. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company, or by the Company without the prior written consent of the Lead Purchaser.

7D. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

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7E. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7F. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "<u>including</u>" herein shall mean "<u>including without limitation</u>." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency *(e.g.,* material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2020 Financial Statements.

7G. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.

7H. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7O</u> (with respect to the Non-Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

7I. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other

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jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7J. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

General Counsel, Global

With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

Email: aribaudo@sidley.com

and

Sidley Austin LLP

2021 McKinney Avenue

Dallas, TX 75201

Attention: Ryan M. Scofield

Facsimile: (214) 981-3400

Email: rscofield@sidley.com

7K. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

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7L. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION 7L</u>.

7M. <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

7N. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7O. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "<u>Non-Recourse Parties</u>") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with

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or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,**<br> a Cayman Islands Exempted Company | **ACCELERANT HOLDINGS,**<br> a Cayman Islands Exempted Company |
| By: | /s/ Jeff Radke |
|  | Name: Jeff Radke |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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---

| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| ELDRIDGE ACCELERANT FUNDING, LLC | ELDRIDGE ACCELERANT FUNDING, LLC |
| By: | /s/ Todd L. Boehly |
|  | Name: Todd L. Boehly |
|  | Title: Chief Executive Officer |

---

[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **STS MASTER FUND, LTD.** | **STS MASTER FUND, LTD.** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: COO |
| **DP DAKOTA VENTURES LP** | **DP DAKOTA VENTURES LP** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: Managing Member |

---

[Signature Page to Securities Purchase Agreement]

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---

| | | |
|:---|:---|:---|
| **MW XO DIGITAL FINANCE FUND HOLDCO, LTD.** | **MW XO DIGITAL FINANCE FUND HOLDCO, LTD.** | **MW XO DIGITAL FINANCE FUND HOLDCO, LTD.** |
| By: | /s/ Michael Sargent | /s/ Jon May |
|  | Name: Michael Sargent | Jon May |
|  | Title: Authorized Signatories | Title: Authorized Signatories |

---

[Signature Page to Securities Purchase Agreement]

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---

| | |
|:---|:---|
|  **MS&AD VENTURES LLC** | **MS&AD VENTURES LLC** |
| By: | MS&AD VENTURES INC. |
| Its: | Manager |
| By: | /s/ Jonathan Soberg |
|  | Name: Jonathan Soberg |
|  | Title: CEO |

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[Signature Page to Securities Purchase Agreement]

## Exhibit 10.17

**Exhibit 10.17** 

***EXECUTION VERSION***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

January 7, 2022

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale | 1 |
|  Section 2. | Closing; Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2A. | Closing | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2B. | Company Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2C. | Purchaser Closing Deliverables | 2 |
|  Section 3. | Representations and Warranties of the Company | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3A. | Organization | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3B. | Equity Interests and Related Matters | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3C. | Subsidiaries | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D. | Authorization | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3E. | Noncontravention | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3F. | Governmental Consents and Filings | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3G. | Reorganization | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3H. | Financial Statements and Related Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3I. | Absence of Undisclosed Liabilities and Certain Changes | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3J. | Assets | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3K. | Tax Matters | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3L. | Contracts and Commitments | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M. | Intellectual Property | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3N. | Litigation, Solvency, etc. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3O. | Insurance | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3P. | Employees | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Q. | Compliance with Laws | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3R. | Affiliated Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3S. | Real Property | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3T. | Data Privacy | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3U. | Insurance Issued by the Insurance Subsidiaries | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3V. | Permits and Licenses | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3W. | Reinsurance | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3X. | Investment Assets | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Y. | Reserves | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Z. | Regulatory Filings | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3AA. | Distributors and Brokers; Third-Party Administrators | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3BB. | No Other Representations or Warranties | 16 |
|  Section 4. | Representations and Warranties of the Purchasers | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4A. | Organization | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4B. | Authorization | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4C. | Noncontravention | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4D. | Governmental Consents and Filings | 17 |

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i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4E. | Brokerage | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4F. | Funds | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4G. | Investment Representations and Warranties | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4H. | Investigation by the Purchaser | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4I. | [Reserved] | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4J. | Certain Agreements of the Purchaser | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4K. | AEOI | 19 |
|  Section 5. | Definitions | 20 |
|  Section 6. | Indemnification | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6A. | Survival of Representations and Warranties | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6B. | Indemnification Generally | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6C. | Limitations on Indemnification | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6D. | Indemnification Procedures | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6E. | Tax Treatment | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6F. | Exclusive Remedy | 31 |
|  Section 7. | Covenants; Miscellaneous Provisions | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7A. | Press Release and Announcements | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7B. | Consent to Amendments | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7C. | Successors and Assigns | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7D. | Severability | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7E. | Counterparts | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7F. | Descriptive Headings; Interpretation | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7G. | Entire Agreement | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7H. | No Third-Party Beneficiaries | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7I. | Governing Law | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7J. | Notices | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7K. | No Strict Construction | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7L. | WAIVER OF JURY TRIAL | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7M. | Submission to Jurisdiction | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7N. | Further Assurances | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7O. | No Recourse | 35 |

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<u>APPENDICES, SCHEDULES AND EXHIBITS</u> 

Appendices:

Appendix A — Purchasers; Purchased Shares; Purchase Price <br> Appendix B — Material Subsidiaries

<u>Schedules:</u> 

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| | |
|:---|:---|
| Schedule A | Organization |
| Schedule B | Equity Interests and Related Matters |
| Schedule C | Subsidiaries |
| Schedule F | Governmental Consents and Filings |
| Schedule H | Financial Statements and Related Matters |
| Schedule K | Tax Matters |
| Schedule L | Contracts and Commitments |
| Schedule M | Intellectual Property |
| Schedule N | Litigation, Solvency, etc. |
| Schedule Q | Compliance with Laws |
| Schedule R | Affiliated Transactions |
| Schedule S | Real Property |
| Schedule W | Reinsurance |

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<u>Exhibits:</u> 

Exhibit A — A&R Memorandum and Articles of Association <br> Exhibit B — Joinder to Shareholders Agreement

iii

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**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of January 7, 2022, by and among Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>") and the purchasers set forth on <u>Appendix A</u> hereto (the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Amended and Restated Memorandum and Articles of Association of the Company, entered into as of December 28, 2021, a opy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein; and

WHEREAS, on December 28, 2021, the Company closed on the issuance of 128,000 Class A Convertible Preference Shares and 34,000 Class A-1 Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Initial Closing Purchase Agreement</u>").

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on Appendix A (the "Class A Convertible Preference Issuance"):

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Section 2. <u>Closing; Closing Deliverables</u>.

2A. <u>Closing</u>. The Class A Convertible Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section 2B</u>, <u>Section 2C</u> and <u>Section 2D</u> substantially simultaneously with the execution and delivery of this Agreement (the "<u>Closing</u>"). The date hereof is referred to herein as the "Closing Date." At the Closing, the Parties shall consummate the transactions contemplated by this Agreement in the following manner and in the following order (except that each of such transactions shall be deemed to have been consummated simultaneously and none of the transactions described in this <u>Section 2A</u> shall be consummated unless all of such transactions are consummated):

2B. <u>Company Closing Deliverables</u>. At the Closing, the Company shall deliver to each Purchaser a certificate, dated as of the Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class A Convertible Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party, (C) the shareholders agreement of the Company, dated as of December 28, 2021 (the "<u>Shareholders Agreement</u>") and (D) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class A Convertible Preference Shares have been issued to each Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix A</u>.

2C. <u>Purchaser Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the Closing, each Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash. equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a joinder to the Shareholders Agreement in the form attached hereto as <u>Exhibit B</u>, duly executed by such Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

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3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Closing (and before giving effect to the Class A Convertible Preference Issuance), the authorized and outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately following the Closing (and after giving effect to the Class A Convertible Preference Issuance), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Class B Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. Upon the Closing, other than as set forth on <u>Schedule</u> <u>B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the Initial Closing Purchase Agreement, the A&R Memorandum and Articles of Association or the Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class A Convertible Preference Issuance, in each case, other than as explicitly set forth in the Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents and the Initial Closing Purchase Agreement, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably

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be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class A Convertible Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Except as set forth in Schedule F or would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in Section 4G and Section 4I, the Class A Convertible Preference Issuance will be exempt from registration under applicable securities Laws.

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3G. <u>Reorganization</u>. Prior to the consummation of the transactions contemplated by this Agreement, the Company participated in certain reorganization transactions (collectively, the "Reorganization") whereby, among other steps, (a) the Class B Common Shareholder (by action of the General Partner) contributed to the Company all of the limited partnership interests in Issuer Holdings and (b) immediately following the contribution contemplated by clause (a), (i) the BOM Debt Facility was novated to the Company, (ii) Issuer Holdings (by action of the General Partner) distributed to the Company all of its assets and liabilities (which consist solely of all outstanding shares of capital stock of the Predecessor and any liabilities associated with the BOM Debt Facility). As a result of the Reorganization, the Company will have, as of the Closing, all of the assets and liabilities of Issuer Holdings and no other assets and liabilities other than *de minimis* liabilities in connection with its formation.

3H. <u>Financial Statements and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule H</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Predecessor as of December 31, 2020 and December 31, 2019 and the audited statements of income and cash flows for the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Predecessor as of September 30, 2021 (the "<u>Latest Balance Sheet Date</u>") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with IFRS consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3I. <u>Absence of Undisclosed Liabilities and Certain Changes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with IFRS, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement and for entry into the Initial Closing Purchase Agreement (and ancillary documents related thereto), since the Latest Balance Sheet Date, each of the Predecessor, Issuer Holdings, the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3I(ii)</u>.

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3J. <u>Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

3K. <u>Tax Matters</u>. Except as set forth on <u>Schedule K</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

3L. <u>Contracts and Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement or the Initial Closing Purchase Agreement or as set forth on the attached <u>Schedule L</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule L</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

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3M. <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule M</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3N. <u>Litigation, Solvency, etc.</u>. Except as set forth on the attached <u>Schedule N</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims ("<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

3O. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Closing will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

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3P. <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and hour laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

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3Q. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule Q</u> or as specifically addressed in <u>Sections 3K(i)</u>, <u>3Q(i)</u>, <u>3R(iii)</u>, <u>3V(i)</u>, <u>3W</u>, <u>3X(ii)</u>, <u>3X(iv)</u>, <u>3X(v)</u>, <u>3X(vi)</u>, <u>3BB(iv)</u>, and <u>3EE(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

3R. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule R</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3S. <u>Real Property</u>. Except as set forth on <u>Schedule S</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule S</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in breach of or default under such Lease beyond applicable notice and cure periods, and no event has

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occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3T. <u>Data Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company, (A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

3U. <u>Insurance Issued by the Insurance Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the

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aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect, and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3V. <u>Permits and Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit. As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

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3W. <u>Reinsurance</u>. Part one of <u>Schedule W</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Reinsurance Agreement that, if determined adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule W</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3X. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>"). No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

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3Y. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2019 and 2020, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

3Z. <u>Regulatory Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

3AA. <u>Distributors and Brokers; Third-Party Administrators</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced insurance business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance Subsidiary, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not

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reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right (1) to receive any payment based on the profitability or financial performance of any of the Insurance Contracts or (2) to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

3BB. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section 3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

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Section 4. <u>Representations and Warranties of the Purchasers</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class A Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law applicable to such Purchaser.

4D. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

4E. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

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4F. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4G. <u>Investment Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class A Convertible Preference Shares, as applicable, are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class A Convertible Preference Shares pursuant to the Class A Convertible Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class A Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the Shareholders Agreement and applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class A Convertible Preference Shares are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan Assets Entity</u>") deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

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4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class A Convertible Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>[Reserved]</u>. [Reserved]

4J. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

4K. <u>AEOI</u>. Such Purchaser acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4K</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B(ii</u>), Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI ("<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>Accelerant Holdings (Cayman)</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters — the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

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"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3J(i)</u>.

"<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i)</u>.

"<u>BOM Debt Facility</u>" means that certain Credit Agreement, dated as of January 29, 2021, among Accelerant Holdings LP, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of Montreal, as administrative agent, as assigned to (and assumed by) Issuer Holdings on July 2, 2021.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>A Convertible Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1</u>.

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>B Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections 3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and <u>3E(i)</u>.

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii)</u>.

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.

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"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv)</u>.

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3AA</u>.

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3P(i)</u>.

"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Fraud</u>" shall be defined in accordance with the laws of the State of New York, without giving effect to its choice of law provisions (but does not include negligent or reckless misrepresentation or omission).

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

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"<u>IFRS</u>" means International Financial Reporting Standards.

"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i)</u>.

"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Initial Closing Purchase Agreement</u>" has the meaning set forth in the Recitals.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the <u>Insurance Subsidiaries Schedule</u>.

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"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3X</u>.

"<u>Issuer Holdings</u>" means Accelerant Issuer Holdings LP, a Cayman Islands exempted limited partnership.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

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"<u>Lookback Date</u>" means January 1, 2020.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.

"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3L(i)</u>.

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix</u> <u>B</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7O</u>.

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3V</u>.

"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations,

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and zoning, entitlement, building, land use and planning restrictions and regulations imposed by Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v)</u>.

"<u>Predecessor</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3N</u>.

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i)</u>.

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3W</u>.

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"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted limited partnership.

"<u>Reorganization</u>" has the meaning set forth in <u>Section</u> <u>3G</u>.

"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Shareholders Agreement</u>" has the meaning set forth in <u>Section</u> <u>2B(ii)</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.

"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

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"<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the Shareholders Agreement and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

Section 6. <u>Indemnification</u>.

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty, covenant or other agreement contained herein shall terminate is referred to as the "Survival Date." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

6B. <u>Indemnification Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or non-performance of any agreement or covenant of the Company contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not jointly) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non-performance of any agreement or covenant of such Purchaser contained in this Agreement.

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6C. <u>Limitations on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

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6D. <u>Indemnification Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); provided, however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article</u> 6 except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10 Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

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6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

Section 7. <u>Covenants; Miscellaneous Provisions</u>.

7A. <u>Press Release and Announcements</u>. Unless required by Law, no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; provided, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

7B. <u>Consent to Amendments</u>. This Agreement may be amended, or any provision of this Agreement may be waived, only if set forth in a writing executed by the Company; provided, however, that no amendment to this Agreement shall materially and disproportionately adversely affect any Purchaser without the prior written consent of such Purchaser. No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

7C. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company.

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7D. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

7E. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7F. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "including" herein shall mean "including without limitation." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency *(e.g.,* material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2020 Financial Statements.

7G. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.

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7H. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7O</u> (with respect to the Non-Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

7I. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7J. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

General Counsel, Global

------

With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

Email: aribaudo@sidley.com

and

Sidley Austin LLP

2021 McKinney Avenue

Dallas, TX 75201

Attention: Ryan M. Scofield

Facsimile: (214) 981-3400

Email: rscofield@sidley.com

7K. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

7L. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION 7L</u>.

7M. <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

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7N. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7O. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "Non-Recourse Parties") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Unit Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,** | **ACCELERANT HOLDINGS,** |
| a Cayman Islands Exempted Company | a Cayman Islands Exempted Company |
| By: | /s/ Jeff Radke |
|  | Name: Jeff Radke |
|  | Title: Director |

---

[Signature Page to Securities Purchase Agreement]

------

---

| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **KUVARE BERMUDA RE LTD.** | **KUVARE BERMUDA RE LTD.** |
| By: | /s/ Kevin Hovi |
|  | Name: Kevin Hovi |
|  | Title: President and Chief Financial Officer |
| **KUVARE LIFE RE LTD.** | **KUVARE LIFE RE LTD.** |
| By: | /s/ Kevin Hovi |
|  | Name: Kevin Hovi |
|  | Title: President and Chief Financial Officer |

---

[Signature Page to Securities Purchase Agreement]

## Exhibit 10.18

**Exhibit 10.18** 

***EXECUTION VERSION***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

January 31, 2022

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale | 1 |
|  Section 2. | Closing; Closing Deliverables | 2 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2A. | Closing | 2 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2B. | Company Closing Deliverables | 2 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2C. | Purchaser Closing Deliverables | 2 |
|  Section 3. | Representations and Warranties of the Company | 3 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3A. | Organization | 3 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3B. | Equity Interests and Related Matters | 3 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3C. | Subsidiaries | 3 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3D. | Authorization | 4 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3E. | Noncontravention | 4 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3F. | Governmental Consents and Filings | 4 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3G. | Reorganization | 5 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3H. | Financial Statements and Related Matters | 5 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3I. | Absence of Undisclosed Liabilities and Certain Changes | 6 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3J. | Assets | 7 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3K. | Tax Matters | 7 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3L. | Contracts and Commitments | 8 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3M. | Intellectual Property | 9 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3N. | Litigation, Solvency, etc. | 9 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3O. | Insurance | 9 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3P. | Employees | 10 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3Q. | Compliance with Laws | 11 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3R. | Affiliated Transactions | 11 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3S. | Real Property | 11 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3T. | Data Privacy | 12 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3U. | Insurance Issued by the Insurance Subsidiaries | 13 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3V. | Permits and Licenses | 13 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3W. | Reinsurance | 14 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3X. | Investment Assets | 14 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3Y. | Reserves | 14 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3Z. | Regulatory Filings | 15 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3AA. | Distributors and Brokers; Third-Party Administrators | 16 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3BB. | No Other Representations or Warranties | 16 |
|  Section 4. | Representations and Warranties of the Purchasers | 16 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4A. | Organization | 16 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4B. | Authorization | 16 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4C. | Noncontravention | 16 |

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i

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| | | |
|:---|:---|:---|
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4D. | Governmental Consents and Filings | 17 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4E. | Brokerage | 17 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4F. | Funds | 17 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4G. | Investment Representations and Warranties | 17 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4H. | Investigation by the Purchaser | 18 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4I. | [Reserved] | 18 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4J. | Certain Agreements of the Purchaser | 18 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4K. | AEOI | 18 |
|  Section 5. | Definitions | 19 |
|  Section 6. | Indemnification | 26 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A. | Survival of Representations and Warranties | 26 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6B. | Indemnification Generally | 27 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6C. | Limitations on Indemnification | 27 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6D. | Indemnification Procedures | 28 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6E. | Tax Treatment | 29 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6F. | Exclusive Remedy | 29 |
|  Section 7. | Covenants; Miscellaneous Provisions | 29 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7A. | Press Release and Announcements | 29 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7B. | Consent to Amendments | 30 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7C. | Successors and Assigns | 30 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7D. | Severability | 30 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7E. | Counterparts | 30 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7F. | Descriptive Headings; Interpretation | 30 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7G. | Entire Agreement | 31 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7H. | No Third-Party Beneficiaries | 31 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7I. | Governing Law | 31 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7J. | Notices | 31 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7K. | No Strict Construction | 32 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7L. | WAIVER OF JURY TRIAL | 32 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7M. | Submission to Jurisdiction | 33 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7N. | Further Assurances | 33 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7O. | No Recourse | 33 |

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ii

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<u>APPENDICES, SCHEDULES AND EXHIBITS</u> 

Appendices:

---

| | |
|:---|:---|
| Appendix A | Purchasers; Purchased Shares; Purchase Price |
| Appendix B | Material Subsidiaries |
| Schedules: |  |
| Schedule A | Organization |
| Schedule B | Equity Interests and Related Matters |
| Schedule C | Subsidiaries |
| Schedule F | Governmental Consents and Filings |
| Schedule H | Financial Statements and Related Matters |
| Schedule K | Tax Matters |
| Schedule L | Contracts and Commitments |
| Schedule M | Intellectual Property |
| Schedule N | Litigation, Solvency, etc. |
| Schedule Q | Compliance with Laws |
| Schedule R | Affiliated Transactions |
| Schedule S | Real Property |
| Schedule W | Reinsurance |
| <u>Exhibits:</u> |  |
| Exhibit A | A&R Memorandum and Articles of Association |
| Exhibit B | Joinder to Shareholders Agreement |

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iii

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**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of January 31, 2022, by and among Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>") and the purchasers set forth on <u>Appendix A</u> hereto (the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Amended and Restated Memorandum and Articles of Association of the Company, entered into as of December 28, 2021, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein;

WHEREAS, on December 28, 2021, the Company closed on the issuance of 128,000 Class A Convertible Preference Shares and 34,000 Class A-1 Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Initial Closing Purchase Agreement</u>"); and

WHEREAS, on January 7, 2021, the Company closed on the issuance of an additional 10,000 Class A Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Second Closing Purchase Agreement</u>").

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u> (the "<u>Class</u> <u>A Convertible Preference Issuance</u>"):

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Section 2. <u>Closing; Closing Deliverables</u>.<u> </u>

2A. <u>Closing</u>. The Class A Convertible Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section</u> <u>2B</u>, <u>Section</u> <u>2C</u> and <u>Section</u> <u>2D</u> substantially simultaneously with the execution and delivery of this Agreement (the "<u>Closing</u>"). The date hereof is referred to herein as the "<u>Closing Date</u>." At the Closing, the Parties shall consummate the transactions contemplated by this Agreement in the following manner and in the following order (except that each of such transactions shall be deemed to have been consummated simultaneously and none of the transactions described in this <u>Section</u> <u>2A</u> shall be consummated unless all of such transactions are consummated):

2B. <u>Company Closing Deliverables</u>. At the Closing, the Company shall deliver to each Purchaser a certificate, dated as of the Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class A Convertible Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party, (C) the shareholders agreement of the Company, dated as of December 28, 2021 (the "<u>Shareholders Agreement</u>") and (D) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class A Convertible Preference Shares have been issued to each Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix A</u>.<u> </u>

2C. <u>Purchaser Closing Deliverables</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the Closing, each Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a joinder to the Shareholders Agreement in the form attached hereto as <u>Exhibit B</u>, duly executed by such Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

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Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Closing (and before giving effect to the Class A Convertible Preference Issuance), the authorized and outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately following the Closing (and after giving effect to the Class A Convertible Preference Issuance), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Class B Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. The Class A Convertible Shares, to be issued by the Company pursuant to the Purchase Agreement, when issued against payment of the capital Closing Payment therefor will be validly issued, fully paid and non-assessable. Upon the Closing, other than as set forth on <u>Schedule B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the Initial Closing Purchase Agreement, the Second Closing Purchase Agreement, the A&R Memorandum and Articles of Association or the Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class A Convertible Preference Issuance, in each case, other than as explicitly set forth in the Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents, the Initial Closing Purchase Agreement and the Second Closing Purchase Agreement, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and

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to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class A Convertible Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Except as set forth in <u>Schedule F</u> or would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in <u>Section</u> <u>4G</u> and <u>Section</u> <u>4I</u>, the Class A Convertible Preference Issuance will be exempt from registration under applicable securities Laws.

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3G. <u>Reorganization</u>. Prior to the consummation of the transactions contemplated by this Agreement, the Company participated in certain reorganization transactions (collectively, the "<u>Reorganization</u>") whereby, among other steps, (a) the Class B Common Shareholder (by action of the General Partner) contributed to the Company all of the limited partnership interests in Issuer Holdings and (b) immediately following the contribution contemplated by clause (a), (i) the BOM Debt Facility was novated to the Company, (ii) Issuer Holdings (by action of the General Partner) distributed to the Company all of its assets and liabilities (which consist solely of all outstanding shares of capital stock of the Predecessor and any liabilities associated with the BOM Debt Facility). As a result of the Reorganization, the Company will have, as of the Closing, all of the assets and liabilities of Issuer Holdings and no other assets and liabilities other than *de minimis* liabilities in connection with its formation.

3H <u>Financial Statements and Related Matters</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule H</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Predecessor as of December 31, 2020 and December 31, 2019 and the audited statements of income and cash flows for the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Predecessor as of September 30, 2021 (the "<u>Latest Balance</u> <u>Sheet</u> <u>Date</u>") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with IFRS consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3I. <u>Absence of Undisclosed Liabilities and Certain Changes</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with IFRS, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement and for entry into the Initial Closing Purchase Agreement and the Second Closing Purchase Agreement (and ancillary documents related to each of the foregoing), since the Latest Balance Sheet Date, each of the Predecessor, Issuer Holdings, the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3I(ii)</u>.<u> </u>

3J. <u>Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

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3K. <u>Tax Matters</u>. Except as set forth on <u>Schedule K</u>:<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

3L. <u>Contracts and Commitments</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement, the Initial Closing Purchase Agreement or the Second Closing Purchase Agreement or as set forth on the attached <u>Schedule L</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule L</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

3M. <u>Intellectual Property</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule M</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3N. <u>Litigation, Solvency, etc.</u>. Except as set forth on the attached <u>Schedule N</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims ("<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

3O. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Closing will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

3P. <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and hour laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

3Q. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule Q</u> or as specifically addressed in <u>Sections 3K(i)</u>, <u>3Q(i)</u>, <u>3R</u><u>(iii)</u>, <u>3V(i)</u>, <u>3W</u>, <u>3X(ii)</u>, <u>3X(iv)</u>, <u>3X(v)</u>, <u>3X(vi)</u>, <u>3BB</u><u>(iv)</u>, and <u>3EE(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

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3R. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule R</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3S. <u>Real Property</u>. Except as set forth on <u>Schedule S</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule S</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in breach of or default under such Lease beyond applicable notice and cure periods, and no event has occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3T. <u>Data Privacy</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company, (A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

3U. <u>Insurance Issued by the Insurance Subsidiaries</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect, and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3V. <u>Permits and Licenses</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit. As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

3W. <u>Reinsurance</u>. Part one of <u>Schedule W</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with

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or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Reinsurance Agreement that, if determined adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule W</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3X. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>").<u> </u>No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

3Y. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2019 and 2020, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

3Z. <u>Regulatory Filings</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

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3AA. <u>Distributors and Brokers; Third-Party Administrators</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced insurance business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance Subsidiary, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right (1) to receive any payment based on the profitability or financial performance of any of the Insurance Contracts or (2) to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

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3BB. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section</u> <u>3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

Section 4. <u>Representations and Warranties of the Purchasers</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class A Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law applicable to such Purchaser.

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4L. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

4M. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

4N. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4O. <u>Investment Representations and Warranties</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class A Convertible Preference Shares, as applicable, are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class A Convertible Preference Shares pursuant to the Class A Convertible Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class A Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the Shareholders Agreement and applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class A Convertible Preference Shares are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan</u> <u>Assets</u> <u>Entity</u>") deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

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4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class A Convertible Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>[Reserved]</u>. [Reserved]

4J. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

4K. <u>AEOI</u>. Such Purchaser acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4K</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B</u><u>(ii)</u>,<u> </u>Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI ("<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>Accelerant Holdings (Cayman)</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v)</u>.<u> </u>

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"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3J(i)</u>.<u> </u>

"<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i)</u>.<u> </u>

"<u>BOM Debt Facility</u>" means that certain Credit Agreement, dated as of January 29, 2021, among Accelerant Holdings LP, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of Montreal, as administrative agent, as assigned to (and assumed by) Issuer Holdings on July 2, 2021.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>A Convertible Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1</u>.<u> </u>

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>B Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.<u> </u>

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.<u> </u>"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.<u> </u>

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections 3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and <u>3E(i)</u>.

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii)</u>.

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.<u> </u>

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"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv)</u>.<u> </u>

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3AA</u>.<u> </u>

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3P(i)</u>.<u> </u>

"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.<u> </u>

"<u>Fraud</u>" shall be defined in accordance with the laws of the State of New York, without giving effect to its choice of law provisions (but does not include negligent or reckless misrepresentation or omission).

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

"<u>IFRS</u>" means International Financial Reporting Standards.

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"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i)</u>.<u> </u>

"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Initial Closing Purchase Agreement</u>" has the meaning set forth in the Recitals.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the Insurance Subsidiaries Schedule.

"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

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"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3X</u>.<u> </u>

"<u>Issuer Holdings</u>" means Accelerant Issuer Holdings LP, a Cayman Islands exempted limited partnership.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.<u> </u>

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.<u> </u>

"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.<u> </u>

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

"<u>Lookback Date</u>" means January 1, 2020.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.<u> </u>

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"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3L(i)</u>.<u> </u>

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix B</u>.<u> </u>

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7O</u>.<u> </u>

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3V</u>.<u> </u>

"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations, and zoning, entitlement, building, land use and planning restrictions and regulations imposed by Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary

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Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v)</u>.<u> </u>

"<u>Predecessor</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3N</u>.<u> </u>

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i)</u>.<u> </u>

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3W</u>.<u> </u>

"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted limited partnership.

"<u>Reorganization</u>" has the meaning set forth in <u>Section</u> <u>3G</u>.<u> </u>

"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Second Closing Purchase Agreement</u>" has the meaning set forth in the Recitals.

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"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Shareholders Agreement</u>" has the meaning set forth in <u>Section</u> <u>2B(ii)</u>.<u> </u>

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.<u> </u>

"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

"<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the Shareholders Agreement and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

Section 6. <u>Indemnification</u>.

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty,

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covenant or other agreement contained herein shall terminate is referred to as the "<u>Survival Date</u>." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

6B. <u>Indemnification Generally</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or non-performance of any agreement or covenant of the Company contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not jointly) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non-performance of any agreement or covenant of such Purchaser contained in this Agreement.

6C. <u>Limitations on Indemnification</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

6D. <u>Indemnification Procedures</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); provided, however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article</u> 6 except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party

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with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10 Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

Section 7. <u>Covenants; Miscellaneous Provisions</u>.<u> </u>

7A. <u>Press Release and Announcements</u>. Unless required by Law, no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; <u>provided</u>, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

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7B. <u>Consent to Amendments</u>. This Agreement may be amended, or any provision of this Agreement may be waived, only if set forth in a writing executed by the Company; provided, however, that no amendment to this Agreement shall materially and disproportionately adversely affect any Purchaser without the prior written consent of such Purchaser. No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

7C. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company.

7D. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

7E. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7F. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "<u>including</u>" herein shall mean "<u>including without limitation</u>." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact

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that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency (*e.g.*, material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2020 Financial Statements.

7G. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.

7H. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7O</u> (with respect to the Non-Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

7I. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7J. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

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All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

General Counsel, Global

With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

Email: aribaudo@sidley.com

and

Sidley Austin LLP

2021 McKinney Avenue

Dallas, TX 75201

Attention: Ryan M. Scofield

Facsimile: (214) 981-3400

Email: rscofield@sidley.com

7K. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

7L. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION 7L</u>.

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7 . <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

7A. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7B. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "<u>Non-Recourse Parties</u>") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Unit Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,** | **ACCELERANT HOLDINGS,** |
| a Cayman Islands Exempted Company | a Cayman Islands Exempted Company |
| By: | /s/ Jeff Radke |
|  | Name: Jeff Radke |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **ACP ACCELERANT CO-INVEST, LLC** | **ACP ACCELERANT CO-INVEST, LLC** |
| By: ACP Insurance Management, LLC | By: ACP Insurance Management, LLC |
| Its: Managing Member | Its: Managing Member |
| By: | /s/ Keoni Schwartz |
|  | Name: Keoni Schwartz |
|  | Title: Managing Member |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **BARINGS BDC, INC.** | **BARINGS BDC, INC.** |
| By: Barings LLC as Investment Manager | By: Barings LLC as Investment Manager |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS CAPITAL INVESTMENT** | **BARINGS CAPITAL INVESTMENT** |
| **CORPORATION** | **CORPORATION** |
| By: Barings LLC as Investment Adviser | By: Barings LLC as Investment Adviser |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS PRIVATE CREDIT CORPORATION** | **BARINGS PRIVATE CREDIT CORPORATION** |
| By: Barings LLC as Investment Adviser | By: Barings LLC as Investment Adviser |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT FUND 4 (DELAWARE), L.P.** | **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT FUND 4 (DELAWARE), L.P.** |
| By: Barings LLC as Investment Adviser | By: Barings LLC as Investment Adviser |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT 4 (LUX) S.À R.L.** | **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT 4 (LUX) S.À R.L.** |
| acting by its attorney Barings LLC | acting by its attorney Barings LLC |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Frank O'Neill |
| Frank O'Neill |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Hugh Burgess |
| Hugh Burgess |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Mike McAuliffe |
| Mike McAuliffe |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Keith Harrison |
| Keith Harrison |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Chelsea Perkins |
| Chelsea Perkins |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Aaron Brinkman |
| Aaron Brinkman |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Duncan Cottam |
| Duncan Cottam |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Ryan Schiller |
| Ryan Schiller |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Nancy Hasley |
| Nancy Hasley |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ William G. Johnson III |
| William G. Johnson III |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Gary Brown |
| Gary Brown |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Jayme Mendal |
| Jayme Mendal |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Kevin Hovi |
| Kevin Hovi |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Wendy Harrington |
| Wendy Harrington |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **DHIREN P. JHAVERI 2021 IRRECOVABLE TRUST** | **DHIREN P. JHAVERI 2021 IRRECOVABLE TRUST** |
| By: | /s/ Thomas Majewski |
|  | Name: Thomas Majewski |
|  | Title: Trustee |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Peter Blanc |
| Peter Blanc |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **DAVID ALAN GOLDBERG DECLARATION OF TRUST** | **DAVID ALAN GOLDBERG DECLARATION OF TRUST** |
| By: | /s/ David A. Goldberg |
|  | Name: David A. Goldberg |
|  | Title: Trustee |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Chris Hobbs |
| Chris Hobbs |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **THINKING OPERATIONS LIMITED** | **THINKING OPERATIONS LIMITED** |
| By: | /s/ Michael Gould |
|  | Name: Michael Gould |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Carolyn Johnson |
| Carolyn Johnson |

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[Signature Page to Securities Purchase Agreement]

## Exhibit 10.19

**Exhibit 10.19** 

***EXECUTION VERSION***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

March 30, 2022

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale | 1 |
|  Section 2. | Closing; Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2A. | Closing | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2B. | Company Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2C. | Purchaser Closing Deliverables | 2 |
|  Section 3. | Representations and Warranties of the Company | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3A. | Organization | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3B. | Equity Interests and Related Matters | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3C. | Subsidiaries | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D. | Authorization | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3E. | Noncontravention | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3F. | Governmental Consents and Filings | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3G. | Reorganization | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3H. | Financial Statements and Related Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3I. | Absence of Undisclosed Liabilities and Certain Changes | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3J. | Assets | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3K. | Tax Matters | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3L. | Contracts and Commitments | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M. | Intellectual Property | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3N. | Litigation, Solvency, etc. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3O. | Insurance | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3P. | Employees | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Q. | Compliance with Laws | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3R. | Affiliated Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3S. | Real Property | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3T. | Data Privacy | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3U. | Insurance Issued by the Insurance Subsidiaries | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3V. | Permits and Licenses | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3W. | Reinsurance | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3X. | Investment Assets | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Y. | Reserves | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Z. | Regulatory Filings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3AA. | Distributors and Brokers; Third-Party Administrators | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3BB. | No Other Representations or Warranties | 15 |
|  Section 4. | Representations and Warranties of the Purchasers | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4A. | Organization | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4B. | Authorization | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4C. | Noncontravention | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4D. | Governmental Consents and Filings | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4E. | Brokerage | 17 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4F. | Funds | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4G. | Investment Representations and Warranties | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4H. | Investigation by the Purchaser | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4I. | [Reserved] | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4J. | Certain Agreements of the Purchaser | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4K. | AEOI | 18 |
|  Section 5. | Definitions | 19 |
|  Section 6. | Indemnification | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6A. | Survival of Representations and Warranties | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6B. | Indemnification Generally | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6C. | Limitations on Indemnification | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6D. | Indemnification Procedures | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6E. | Tax Treatment | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6F. | Exclusive Remedy | 29 |
|  Section 7. | Covenants; Miscellaneous Provisions | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7A. | Press Release and Announcements | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7B. | Consent to Amendments | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7C. | Successors and Assigns | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7D. | Severability | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7E. | Counterparts | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7F. | Descriptive Headings; Interpretation | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7G. | Entire Agreement | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7H. | No Third-Party Beneficiaries | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7I. | Governing Law | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7J. | Notices | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7K. | No Strict Construction | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7L. | WAIVER OF JURY TRIAL | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7M. | Submission to Jurisdiction | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7N. | Further Assurances | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7O. | No Recourse | 33 |

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<u>APPENDICES, SCHEDULES AND EXHIBITS</u> 

<u>Appendices:</u> 

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| | |
|:---|:---|
| Appendix A | Purchasers; Purchased Shares; Purchase Price |
| Appendix B | Material Subsidiaries |
| <u>Schedules:</u> |  |
| Schedule A | Organization |
| Schedule B | Equity Interests and Related Matters |
| Schedule C | Subsidiaries |
| Schedule F | Governmental Consents and Filings |
| Schedule H | Financial Statements and Related Matters |
| Schedule K | Tax Matters |
| Schedule L | Contracts and Commitments |
| Schedule M | Intellectual Property |
| Schedule N | Litigation, Solvency, etc. |
| Schedule Q | Compliance with Laws |
| Schedule R | Affiliated Transactions |
| Schedule S | Real Property |
| Schedule W | Reinsurance |
| <u>Exhibits:</u> |  |
| Exhibit A | A&R Memorandum and Articles of Association |
| Exhibit B | Joinder to Shareholders Agreement |

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**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of March 30, 2022, by and among Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>") and the purchasers set forth on <u>Appendix A</u> hereto (the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Amended and Restated Memorandum and Articles of Association of the Company, entered into as of December 28, 2021, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein;

WHEREAS, on December 28, 2021, the Company closed on the issuance of 128,000 Class A Convertible Preference Shares and 34,000 Class A-1 Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Initial Closing Purchase Agreement</u>"); and

WHEREAS, on January 7, 2022, the Company closed on the issuance of an additional 10,000 Class A Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Second Closing</u> <u>Purchase Agreement</u>").

WHEREAS, on January 31, 2022, the Company closed on the issuance of an additional 56,760.95755 Class A Convertible Preference Shares pursuant to that certain Securities Purchase Agreement, among the Company and the purchasers party thereto (the "<u>Third Closing</u> <u>Purchase Agreement</u>").

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class A Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u> (the "<u>Class</u> <u>A Convertible Preference Issuance</u>"):

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Section 2. <u>Closing; Closing Deliverables</u>.

2A. <u>Closing</u>. The Class A Convertible Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section</u> <u>2B</u>, <u>Section</u> <u>2C</u> and <u>Section</u> <u>2D</u> substantially simultaneously with the execution and delivery of this Agreement (the "<u>Closing</u>"). The date hereof is referred to herein as the "<u>Closing Date</u>." At the Closing, the Parties shall consummate the transactions contemplated by this Agreement in the following manner and in the following order (except that each of such transactions shall be deemed to have been consummated simultaneously and none of the transactions described in this <u>Section</u> <u>2A</u> shall be consummated unless all of such transactions are consummated):

2B. <u>Company Closing Deliverables</u>. At the Closing, the Company shall deliver to each Purchaser a certificate, dated as of the Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class A Convertible Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party, (C) the shareholders agreement of the Company, dated as of December 28, 2021 (the "<u>Shareholders</u> <u>Agreement</u>") and (D) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class A Convertible Preference Shares have been issued to each Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix A</u>.

2C. <u>Purchaser Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the Closing, each Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a joinder to the Shareholders Agreement in the form attached hereto as <u>Exhibit B</u>, duly executed by such Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

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3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Closing (and before giving effect to the Class A Convertible Preference Issuance), the authorized and outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately following the Closing (and after giving effect to the Class A Convertible Preference Issuance), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Class B Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. The Class A Convertible Shares, to be issued by the Company pursuant to the Purchase Agreement, when issued against payment of the capital Closing Payment therefor will be validly issued, fully paid and non- assessable. Upon the Closing, other than as set forth on <u>Schedule B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the Initial Closing Purchase Agreement, the Second Closing Purchase Agreement, the Third Closing Purchase Agreement, the A&R Memorandum and Articles of Association or the Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class A Convertible Preference Issuance, in each case, other than as explicitly set forth in the Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents, the Initial Closing Purchase Agreement, the Second Closing Purchase Agreement and the Third Closing Purchase Agreement, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

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3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class A Convertible Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Except as set forth in <u>Schedule F</u> or would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in <u>Section</u> <u>4G</u> and <u>Section</u> <u>4I</u>, the Class A Convertible Preference Issuance will be exempt from registration under applicable securities Laws.

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3G. <u>Reorganization</u>. Prior to the consummation of the transactions contemplated by this Agreement, the Company participated in certain reorganization transactions (collectively, the "<u>Reorganization</u>") whereby, among other steps, (a) the Class B Common Shareholder (by action of the General Partner) contributed to the Company all of the limited partnership interests in Issuer Holdings and (b) immediately following the contribution contemplated by clause (a), (i) the BOM Debt Facility was novated to the Company, (ii) Issuer Holdings (by action of the General Partner) distributed to the Company all of its assets and liabilities (which consist solely of all outstanding shares of capital stock of the Predecessor and any liabilities associated with the BOM Debt Facility). As a result of the Reorganization, the Company will have, as of the Closing, all of the assets and liabilities of Issuer Holdings and no other assets and liabilities other than *de minimis* liabilities in connection with its formation.

3H. <u>Financial Statements and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule H</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Predecessor as of December 31, 2020 and December 31, 2019 and the audited statements of income and cash flows for the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Predecessor as of September 30, 2021 (the "<u>Latest Balance Sheet</u> <u>Date</u>") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with IFRS consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3I. <u>Absence of Undisclosed Liabilities and Certain Changes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with IFRS, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement and for entry into the Initial Closing Purchase Agreement, the Second Closing Purchase Agreement and the Third Closing Purchase Agreement (and ancillary documents related to each of the foregoing), since the Latest Balance Sheet Date, each of the Predecessor, Issuer Holdings, the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3I(ii)</u>.

3J. <u>Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

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3K. <u>Tax Matters</u>. Except as set forth on <u>Schedule K</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

3L. <u>Contracts and Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement, the Initial Closing Purchase Agreement, the Second Closing Purchase Agreement or the Third Closing Purchase Agreement or as set forth on the attached <u>Schedule L</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule L</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

3M. <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule M</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3N. <u>Litigation, Solvency, etc.</u> Except as set forth on the attached <u>Schedule N</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims ("<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

3O. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Closing will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

3P. <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of <u>the</u> Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and <u>hour</u> laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

3Q. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule Q</u> or as specifically addressed in <u>Sections 3K(i)</u>, <u>3Q(i)</u>, <u>3R(iii)</u>, <u>3V(i)</u>, <u>3W</u>, <u>3X(ii)</u>, <u>3X(iv)</u>, <u>3X(v)</u>, <u>3X(vi)</u>, <u>3BB(iv)</u>, and <u>3EE(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

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3R. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule R</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3S. <u>Real Property</u>. Except as set forth on <u>Schedule S</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule S</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in breach of or default under such Lease beyond applicable notice and cure periods, and no event has occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3T. <u>Data Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company, (A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

3U. <u>Insurance Issued by the Insurance Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect, and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3V. <u>Permits and Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit. As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

3W. <u>Reinsurance</u>. Part one of <u>Schedule W</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Reinsurance Agreement that, if determined

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adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule W</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3X. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>"). No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

3Y. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2019 and 2020, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

3Z. <u>Regulatory Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

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3AA. <u>Distributors and Brokers; Third-Party Administrators</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced <u>insurance</u> business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance <u>Subsidiary</u>, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right (1) to receive any payment based on the profitability or financial performance of any of the Insurance Contracts or (2) to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

3BB. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section</u> <u>3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates

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resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

Section 4. <u>Representations and Warranties of the Purchasers</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class A Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law applicable to such Purchaser.

4D. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

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4E. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

4F. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4G. <u>Investment Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class A Convertible Preference Shares, as applicable, are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class A Convertible Preference Shares pursuant to the Class A Convertible Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class A Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the Shareholders Agreement and applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class A Convertible Preference Shares are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan Assets</u> <u>Entity</u>") deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

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4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class A Convertible Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>[Reserved]</u>. [Reserved]

4J. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

4K. <u>AEOI</u>. Such Purchaser acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4K</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B(ii)</u>, Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI ("<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>Accelerant Holdings (Cayman)</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

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"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3J(i)</u>. "<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i)</u>.

"<u>BOM Debt Facility</u>" means that certain Credit Agreement, dated as of January 29, 2021, among Accelerant Holdings LP, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of Montreal, as administrative agent, as assigned to (and assumed by) Issuer Holdings on July 2, 2021.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>A Convertible Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1</u>.

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>B Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections</u> <u>3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and <u>3E(i)</u>.

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii)</u>.

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.

"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv)</u>.

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3AA</u>.

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3P(i)</u>.

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"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Fraud</u>" shall be defined in accordance with the laws of the State of New York, without giving effect to its choice of law provisions (but does not include negligent or reckless misrepresentation or omission).

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

"<u>IFRS</u>" means International Financial Reporting Standards.

"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued

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expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i)</u>.

"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Initial Closing Purchase Agreement</u>" has the meaning set forth in the Recitals.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the <u>Insurance Subsidiaries Schedule</u>.

"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

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"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3X</u>.

"<u>Issuer Holdings</u>" means Accelerant Issuer Holdings LP, a Cayman Islands exempted limited partnership.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3H(i)</u>.

"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3U</u>. "<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3U</u>.

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

"<u>Lookback Date</u>" means January 1, 2020.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.

"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or

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any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3L(i)</u>.

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix</u> <u>B</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7O</u>.

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3V</u>.

"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations, and zoning, entitlement, building, land use and planning restrictions and regulations imposed by Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

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"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v)</u>.

"<u>Predecessor</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3N</u>.

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i)</u>.

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3W</u>.

"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted limited partnership.

"<u>Reorganization</u>" has the meaning set forth in <u>Section</u> <u>3G</u>.

"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Second Closing Purchase Agreement</u>" has the meaning set forth in the Recitals. "<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Shareholders Agreement</u>" has the meaning set forth in <u>Section</u> <u>2B(ii)</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business

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entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.

"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

"<u>Third Closing Purchase Agreement</u>" has the meaning set forth in the Recitals. "<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the Shareholders Agreement and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

Section 6 <u>Indemnification</u>.

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty, covenant or other agreement contained herein shall terminate is referred to as the "<u>Survival Date</u>." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

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6B. <u>Indemnification Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their <u>respective</u> directors, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or non-performance of any agreement or covenant of the Company contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not <u>jointly</u>) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non- performance of any agreement or covenant of such Purchaser contained in this Agreement.

6C. <u>Limitations on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

6D. <u>Indemnification Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); provided, however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article</u> <u>6</u> except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10

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Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

Section 7. <u>Covenants; Miscellaneous Provisions</u>.

7A. <u>Press Release and Announcements</u>. Unless required by Law, no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; <u>provided</u>, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

7B. <u>Consent to Amendments</u>. This Agreement may be amended, or any provision of this Agreement may be waived, only if set forth in a writing executed by the Company; provided, however, that no amendment to this Agreement shall materially and disproportionately adversely affect any Purchaser without the prior written consent of such Purchaser. No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

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7C. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company.

7D. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

7E. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7F. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "<u>including</u>" herein shall mean "<u>including without limitation</u>." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency (*e.g.*, material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2020 Financial Statements.

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7G. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.

7H. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7O</u> (with respect to the Non- Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

7I. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7J. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

General Counsel, Global

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With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

Email: aribaudo@sidley.com

and

Sidley Austin LLP

2021 McKinney Avenue

Dallas, TX 75201

Attention: Ryan M. Scofield

Facsimile: (214) 981-3400

Email: rscofield@sidley.com

7K. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

7L. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION 7L</u>.

7M. <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

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7N. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7O. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "<u>Non-</u> <u>Recourse Parties</u>") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Unit Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,** | **ACCELERANT HOLDINGS,** |
| a Cayman Islands Exempted Company | a Cayman Islands Exempted Company |
| By: | /s/ Jeffrey Radke |
| Name: | Jeffrey Radke |
| Title: | Director |

---

[Signature Page to Securities Purchase Agreement]

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---

| |
|:---|
| PURCHASERS: |
| /s/ Carlos Sierra |
| Carlos Sierra |

---

[Signature Page to Securities Purchase Agreement]

## Exhibit 10.20

**Exhibit 10.20** 

***EXECUTION VERSION***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

December 28, 2022

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale; Sale of Additional Class B Convertible Preference Shares | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1A. | Purchase and Sale | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1B. | Sale of Additional Class B Convertible Preference Shares | 1 |
|  Section 2. | Closing; Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2A. | Closing | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2B. | Company Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2C. | Purchaser Closing Deliverables | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2D. | Filing of A&R Memorandum and Articles of Association | 3 |
|  Section 3. | Representations and Warranties of the Company | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3A. | Organization | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3B. | Equity Interests and Related Matters | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3C. | Subsidiaries | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D. | Authorization | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3E. | Noncontravention | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3F. | Governmental Consents and Filings | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3G. | Financial Statements and Related Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3H. | Absence of Undisclosed Liabilities and Certain Changes | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3I. | Assets | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3J. | Tax Matters | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3K. | Contracts and Commitments | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3L. | Intellectual Property | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M. | Litigation, Solvency, etc | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3N. | Insurance | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3O. | Employees | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3P. | Compliance with Laws | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Q. | Affiliated Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3R. | Real Property | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3S. | Data Privacy | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3T. | Insurance Issued by the Insurance Subsidiaries | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3U. | Permits and Licenses | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3V. | Reinsurance | 14 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3W. | Investment Assets | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3X. | Reserves | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Y. | Regulatory Filings | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Z. | Distributors and Brokers; Third-Party Administrators | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3AA. | No Other Representations or Warranties | 16.0 |
|  Section 4. | Representations and Warranties of the Purchasers | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4A. | Organization | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4B. | Authorization | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4C. | Noncontravention | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4D. | Governmental Consents and Filings | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4E. | Brokerage | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4F. | Funds | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4G. | Investment Representations and Warranties | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4H. | Investigation by the Purchaser | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4I. | Certain Agreements of the Purchaser | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4J. | AEOI. Such Purchaser acknowledges and agrees that: | 19.0 |
|  Section 5. | Definitions | 19.0 |
|  Section 6. | Indemnification | 27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6A. | Survival of Representations and Warranties | 27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6B. | Indemnification Generally | 27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6C. | Limitations on Indemnification | 28.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6D. | Indemnification Procedures | 29.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6E. | Tax Treatment | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6F. | Exclusive Remedy | 30.0 |
|  Section 7. | Covenants; Miscellaneous Provisions | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7A. | Press Release and Announcements | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7B. | Consent to Amendments | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7C. | Successors and Assigns | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7D. | Severability | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7E. | Counterparts | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7F. | Descriptive Headings; Interpretation | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7G. | Entire Agreement | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7H. | No Third-Party Beneficiaries | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7I. | Governing Law | 32.0 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7J. | Notices | 32.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7K. | No Strict Construction | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7L. | WAIVER OF JURY TRIAL | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7M. | Submission to Jurisdiction | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7N. | Further Assurances | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7O. | No Recourse | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7P. | Updates to Disclosure Schedules | 34.0 |

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<u>APPENDICES, SCHEDULES AND EXHIBITS</u>

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| | |
|:---|:---|
|  Appendices: |  |
|  Appendix A - | Purchasers; Purchased Shares; Purchase Price |
|  Appendix B - | Material Subsidiaries |
|  <u>Schedules:</u> |  |
|  Schedule A - | Organization |
|  Schedule B - | Equity Interests and Related Matters |
|  Schedule C - | Subsidiaries |
|  Schedule F - | Governmental Consents and Filings |
|  Schedule G - | Financial Statements and Related Matters |
|  Schedule J - | Tax Matters |
|  Schedule K - | Contracts and Commitments |
|  Schedule L - | Intellectual Property |
|  Schedule M - | Litigation, Solvency, etc. |
|  Schedule P - | Compliance with Laws |
|  Schedule Q - | Affiliated Transactions |
|  Schedule R - | Real Property |
|  Schedule S - | Data Privacy |
|  Schedule V - | Reinsurance |
|  Schedule Y - | Regulatory Filings |
|  <u>Exhibits:</u> |  |
|  Exhibit A | - A&R Memorandum and Articles of Association |
|  Exhibit B | - A&R Shareholders Agreement |

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iii

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**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of December 28, 2022, by and among Accelerant Holdings, a Cayman Islands company limited by shares (the "<u>Company</u>") and the purchasers set forth on <u>Appendix A</u> hereto (together with any Additional Purchasers who become a party to this Agreement at a subsequent Closing pursuant to <u>Section</u> <u>1B</u>, the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Second Amended and Restated Memorandum and Articles of Association of the Company, entered into as of even date herewith, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class B Convertible Preference Shares and Class B1 Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale; Sale of Additional Class</u> <u>B Convertible Preference Shares.</u>

1A. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u> (the "<u>Class</u> <u>B Preference Issuance</u>").

1B. <u>Sale of Additional Class</u> <u>B Convertible Preference Shares</u>. After the Initial Closing, but no later than February 6, 2023, the Company may sell, on the same terms and conditions as those contained in this Agreement, additional authorized but unsold shares of Class B Convertible Preference Shares (the "<u>Additional Shares</u>"), to one or more Preference Shareholders that are not purchasing Class B Convertible Preference Shares pursuant to this Agreement (the "<u>Additional Purchasers</u>") in connection with the exercise by such Additional Purchasers of any preemptive rights to which they are entitled as a result of the transactions contemplated by this Agreement, provided that each Additional Purchaser becomes a party to the Transaction Documents, by executing and delivering a counterpart signature page to each of the

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Transaction Documents, as applicable. <u>Appendix A</u> to this Agreement shall be updated to reflect the number of Additional Shares purchased at each such Closing and the parties purchasing such Additional Shares.

Section 2. <u>Closing; Closing Deliverables.</u>

2A. <u>Closing</u>. The Class B Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section</u> <u>2B</u> and <u>Section</u> <u>2C</u><u> </u>substantially simultaneously with the execution and delivery of this Agreement (the "<u>Initial</u> <u>Closing</u>"). In the event there is the issuance of Class B Convertible Preference Shares to Additional Purchasers after the Initial Closing pursuant to execution and delivery of this Agreement by such Additional Purchasers, the term "<u>Closing</u>" shall apply to each such issuance unless otherwise specified. The date hereof is referred to herein as the "<u>Closing Date</u>". In the event there is more than one Closing, the term "<u>Closing Date</u>" shall apply to the date hereof unless otherwise specified. At any Closing, the Parties shall consummate the transactions contemplated by this Agreement in the following manner and in the following order (except that each of such transactions shall be deemed to have been consummated simultaneously and none of the transactions described in this <u>Section</u> <u>2A</u> shall be consummated unless all of such transactions are consummated):

2B. <u>Company Closing Deliverables</u>. At any Closing, the Company shall deliver to each Purchaser purchasing Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, as applicable, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated as of such Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class B Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party and (C) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares have been issued to each such Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one or multiple counterparts to the amended and restated shareholders agreement, in the form attached hereto as <u>Exhibit B</u> (the "<u>A&R Shareholders Agreement</u>"), duly executed by the Company and each other shareholder of the Company necessary to amend and restate the Prior Agreement (as defined therein) (other than such Purchasers); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a legal opinion of Maples and Calder (Cayman) LLP, the Company's Cayman Islands legal counsel, attesting to, among other things, the valid issuance, full payment and non-assessability of the Class B Convertible Preference Shares and the Class B-1 Convertible Preference Shares upon issuance against payment in full of the consideration set forth in this Agreement and in accordance with the terms set out herein.

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2C. <u>Purchaser Closing Deliverables.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any Closing, each Purchaser purchasing Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares, as applicable, shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash, equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a joinder to the A&R Shareholders Agreement, duly executed by such Purchaser if such Purchaser is not already a party thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At any Closing, each Purchaser shall deliver to each other Purchaser a joinder to the A&R Shareholders Agreement, duly executed by such Purchaser if such Purchaser is not already a party thereto.

2D. <u>Filing of A&R Memorandum and Articles of Association</u>. Promptly following the Initial Closing, the Company shall call a general meeting of the shareholders of the Company in accordance with the shareholders agreement of the Company and, promptly following the approval at such meeting of the filing of the A&R Memorandum and Articles of Association, the Company shall file the A&R Memorandum and Articles of Association with the General Registry of the Cayman Islands and shall provide prompt reasonable evidence of such filing to the Purchasers.

Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the Laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Initial Closing (and before giving effect to the Class B Preference Issuance), the authorized and outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately

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following the Initial Closing (and after giving effect to the Class B Preference Issuance as of such Initial Closing), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Class B Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. The Class B Convertible Shares to be issued by the Company pursuant to this Agreement, when issued against payment of the Closing Payment therefor, will be validly issued, fully paid and non-assessable. Upon the Closing, other than as set forth on <u>Schedule B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the Prior Purchase Agreements, the A&R Memorandum and Articles of Association or the A&R Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class B Preference Issuance, in each case, other than as explicitly set forth in the A&R Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents and the Prior Purchase Agreements, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the Laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities Laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform

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its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class B Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Except as would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in <u>Section</u> <u>4G</u> and <u>Section</u> <u>4I</u>, the Class B Preference Issuance will be exempt from registration under applicable securities Laws.

3G. <u>Financial Statements and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule G</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Company as of December 31, 2021 and the audited statements of income and cash flows for the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Company as of September 30, 2022 (the "<u>Latest Balance Sheet Date</u>") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not,

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individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3H. <u>Absence of Undisclosed Liabilities and Certain Changes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with GAAP, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement and for entry into the Prior Purchase Agreements (and ancillary documents related to each of the foregoing), since the Latest Balance Sheet Date, each of the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3H(ii)</u>.

3I. <u>Assets.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

3J. <u>Tax Matters.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

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3K. <u>Contracts and Commitments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement, the Prior Purchase Agreements or as set forth on the attached <u>Schedule K</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule K</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Initial Closing, or, if this Agreement is being executed and delivered with respect to an Additional Closing, as of or prior to such Additional Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving

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of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

3L. <u>Intellectual Property.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule L</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3M. <u>Litigation, Solvency, etc</u>. Except as set forth on the attached <u>Schedule M</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims ("<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

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3N. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Initial Closing (or, if the execution and delivery related to an Additional Closing, immediately following such Additional Closing) will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

3O. <u>Employees.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and hour Laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective

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bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

3P. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule P</u> or as otherwise specifically addressed herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

3Q. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule Q</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3R. <u>Real Property</u>. Except as set forth on <u>Schedule R</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule</u> <u>R</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in

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breach of or default under such Lease beyond applicable notice and cure periods, and no event has occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3S. <u>Data Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company and except as set forth on <u>Schedule S</u>, (A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

3T. <u>Insurance Issued by the Insurance Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect,

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and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3U. <u>Permits and Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit.

As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

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3V. <u>Reinsurance</u>. Part one of <u>Schedule V</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Reinsurance Agreement that, if determined adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule V</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3W. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>").<u> </u>No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

3X. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2020 and 2021, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

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3Y. <u>Regulatory Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than as set forth on <u>Schedule Y</u> or for routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

3Z. <u>Distributors and Brokers; Third-Party Administrators</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced insurance business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance Subsidiary, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance

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Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right (1) to receive any payment based on the profitability or financial performance of any of the Insurance Contracts or (2) to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

3AA. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section</u> <u>3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

Section 4. <u>Representations and Warranties of the Purchasers</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been

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duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law currently in effect applicable to such Purchaser.

4D. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

4E. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

4F. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4G. <u>Investment Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares, as applicable, pursuant to the Class B Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities Laws or any applicable state securities Laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class B Convertible Preference Shares or Class B-1 Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the A&R Shareholders Agreement and applicable securities Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class B Convertible Preference Shares and Class B-1 Convertible Preference Shares are characterized as "restricted securities" under the federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent waivable by Law, such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan Assets Entity</u>") deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class B Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

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4J. <u>AEOI. Such Purchaser acknowledges and agrees that:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent waivable by Law, such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of Law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4J</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B</u><u>(ii)</u>,<u> </u>Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI ("<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>A&R Shareholders Agreement</u>" has the meaning set forth in Section 2B(ii).

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"<u>Accelerant Holdings (Cayman)</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Additional Purchasers</u>" has the meaning set forth in Section 1B.

"<u>Additional Shares</u>" has the meaning set forth in Section 1B.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3I(i)</u>.

"<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i)</u>.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>A Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>A-1 Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>B Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Class</u> <u>B Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1A</u>.

"<u>Class</u> <u>B Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

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"<u>Class</u> <u>B-1 Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections 3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and <u>3E(i)</u>.

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii)</u>.

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.

"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv)</u>.

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3Z</u>.

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3O(ii)</u>.

"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable Law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

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"<u>Fraud</u>" shall be defined as actual and intentional fraud in accordance with the Laws of the State of New York, without giving effect to its choice of law provisions (but, for the avoidance of doubt, does not include negligent or reckless misrepresentation or omission).

"<u>GAAP</u>" means generally accepted accounting principles as in effect from time to time in the United States.

"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i)</u>.

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"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the Insurance Subsidiaries Schedule.

"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3W</u>.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

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"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3T</u>.

"<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3T</u>.

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

"<u>Lookback Date</u>" means January 1, 2021.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.

"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3K(ii)</u>.

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix</u> <u>B</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7O</u>.

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3U(i)</u>.

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"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations, and zoning, entitlement, building, land use and planning restrictions and regulations imposed by Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation Laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v)</u>.

"<u>Prior Purchase Agreements</u>" means, collectively, that certain (i) Securities Purchase Agreement, dated as of December 28, 2021, by and among the Company and the purchasers party thereto; (ii) Securities Purchase Agreement, dated as of January 7, 2022, by and among the Company and the purchasers party thereto; (iii) Securities Purchase Agreement, dated as of January 31, 2022, by and among the Company and the purchasers party thereto; and

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(iv) Securities Purchase Agreement, dated as of March 30, 2022, by and among the Company and the purchasers party thereto.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3M</u>.

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i)</u>.

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3V</u>.

"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted limited partnership.

"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.

"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal

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property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

"<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the A&R Shareholders Agreement and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

Section 6. <u>Indemnification.</u><u> </u>

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty, covenant or other agreement contained herein shall terminate is referred to as the "<u>Survival Date</u>." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

6B. <u>Indemnification Generally.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their respective directors, partners, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or nonperformance of any agreement or covenant of the Company contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not jointly) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non-performance of any agreement or covenant of such Purchaser contained in this Agreement.

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6C. <u>Limitations on Indemnification.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)(a)</u> shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

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6D. <u>Indemnification Procedures.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); provided, however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article</u> 6 except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10 Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

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6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

Section 7. <u>Covenants; Miscellaneous Provisions.</u>

7A. <u>Press Release and Announcements</u>. Unless required by Law (in which case the Company and any other applicable Purchaser agree to consult with each other prior to any such disclosure as to the form and content of such disclosure), no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; provided, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

7B. <u>Consent to Amendments</u>. This Agreement shall not be amended, modified or supplemented except by an instrument in writing specifically designated as an amendment hereto and executed by each of the Parties hereto.

7C. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company.

7D. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable Law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the

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remaining provisions of this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

7E. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7F. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "including" herein shall mean "including without limitation." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency (*e.g.*, material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2021 Financial Statements.

7G. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way. A disclosure made in a Disclosure Schedule in respect of any representation is deemed disclosed and incorporated by reference in any other Disclosure Schedule as though fully set forth in such Disclosure Schedule for which applicability of such disclosure is reasonably apparent on its face.

7H. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7O</u> (with respect to the Non-Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

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7I. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the Laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal Law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7J. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

Group General Counsel

With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

<u>Email: aribaudo@sidley.com</u>

and

Sidley Austin LLP

2021 McKinney Avenue

Dallas, TX 75201

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Attention: Ryan M. Scofield; Aaron J. Rigby

Facsimile: (214) 981-3400

Email: rscofield@ sidley.com; arigby@sidley.com

7K. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

7L. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION</u> <u>7L</u>.

7M. <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

7N. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7O. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person

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other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "<u>Non-Recourse Parties</u>") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

7P. <u>Updates to Disclosure Schedules</u>. The Company may, prior to and in connection with any subsequent Closing occurring pursuant to <u>Section</u> <u>1B</u>, amend the Disclosure Schedules to reflect events that occur after the date of this Agreement and prior to such subsequent Closing; *provided*, that such updates to the Disclosure Schedules only be effective for purposes of any Closing occurring at or after such updates are made.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Unit Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,** | **ACCELERANT HOLDINGS,** |
| a Cayman Islands Exempted Company | a Cayman Islands Exempted Company |
| By: | /s/ Jeff Radke |
|  | Name: Jeff Radke |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **BARINGS BDC, INC.** | **BARINGS BDC, INC.** |
| **By: Barings LLC as Investment Manager** | **By: Barings LLC as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS CAPITAL INVESTMENT CORPORATION** | **BARINGS CAPITAL INVESTMENT CORPORATION** |
| **By: Barings LLC as Investment Adviser** | **By: Barings LLC as Investment Adviser** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS PRIVATE CREDIT CORPORATION** | **BARINGS PRIVATE CREDIT CORPORATION** |
| **By: Barings LLC as Investment Adviser** | **By: Barings LLC as Investment Adviser** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS GLOBAL SPECIAL SITUATIONS** | **BARINGS GLOBAL SPECIAL SITUATIONS** |
| **CREDIT FUND 4 (DELAWARE), L.P.** | **CREDIT FUND 4 (DELAWARE), L.P.** |
| **By: Barings LLC as Investment Adviser** | **By: Barings LLC as Investment Adviser** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS GLOBAL SPECIAL SITUATIONS**<br> **CREDIT 4 (LUX) S.A.R.L.**<br> **acting by its attorney BARINGS LLC** | **BARINGS GLOBAL SPECIAL SITUATIONS**<br> **CREDIT 4 (LUX) S.A.R.L.**<br> **acting by its attorney BARINGS LLC** |
| **ACTING BY ITS AUTHORISED SIGNATORY** | **ACTING BY ITS AUTHORISED SIGNATORY** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **MARTELLO RE LIMITED** | **MARTELLO RE LIMITED** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS LLC** | **BARINGS LLC** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **MW XO Digital Finance Fund Holdco Ltd.** | **MW XO Digital Finance Fund Holdco Ltd.** |
| By: | /s/ Michael Sargent Jonathan May |
|  | Name: Michael Sargent Jonathan May |
|  | Title: Authorized Signatories |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **ACP ACCELERANT INVESTMENT HOLDING COMPANY II, LTD.** | **ACP ACCELERANT INVESTMENT HOLDING COMPANY II, LTD.** |
| By: | /s/ Keoni Schwartz |
|  | Name: Keoni Schwartz |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **ACP ACCELERANT CO-INVEST, LLC** | **ACP ACCELERANT CO-INVEST, LLC** |
| By: | /s/ Keoni Schwartz |
|  | Name: Keoni Schwartz |
|  | Title: Managing Member |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **DEER PARK 1850 FUND, LP** | **DEER PARK 1850 FUND, LP** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: Chief Operating Officer |
| **STS MASTER FUND, LTD.** | **STS MASTER FUND, LTD.** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Peter Blanc |
| Peter Blanc |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Gary Brown |
| Gary Brown |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Duncan Cottam |
| Duncan Cottam |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Nancy Hasley |
| Nancy Hasley |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Chris Hobbs |
| Chris Hobbs |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ William G. Johnson III |
| William G. Johnson III |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **KUVARE BERMUDA RE LTD.** | **KUVARE BERMUDA RE LTD.** |
| By: Kuvare Insurance Services LP, its Investment Manager | By: Kuvare Insurance Services LP, its Investment Manager |
| By: | /s/ Brian Roelke |
|  | Name: Brian Roelke |
|  | Title: Authorized Signatory |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **KUVARE LIFE RE LTD.** | **KUVARE LIFE RE LTD.** |
| By: Kuvare Insurance Services LP, its Investment Manager | By: Kuvare Insurance Services LP, its Investment Manager |
| By: | /s/ Brian Roelke |
|  | Name: Brian Roelke |
|  | Title: Authorized Signatory |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Mike McAuliffe |
| Mike McAullife |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Chelsea Perkins |
| Chelsea Perkins |

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[Signature Page to Securities Purchase Agreement]

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| |
|:---|
| /s/ Ryan Schiller |
| Ryan Schiller |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **THINKING OPERATIONS LIMITED** | **THINKING OPERATIONS LIMITED** |
| By: | /s/ Michael Gould |
|  | Name: Michael Gould |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

## Exhibit 10.21

**Exhibit 10.21** 

***Execution Version***

SECURITIES PURCHASE AGREEMENT

by and among

ACCELERANT HOLDINGS

and

THE PURCHASERS PARTY HERETO

December 18, 2024

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 1. | Purchase and Sale; Sale of Additional Class C Convertible Preference Shares | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1A. | Purchase and Sale | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1B. | Sale of Additional Class C Convertible Preference Shares | 1 |
|  Section 2. | Closing; Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2A. | Closing | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2B. | Company Closing Deliverables | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2C. | Purchaser Closing Deliverables | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2D. | Filing of A&R Memorandum and Articles of Association | 3 |
|  Section 3. | Representations and Warranties of the Company | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3A. | Organization | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3B. | Equity Interests and Related Matters | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3C. | Subsidiaries | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D. | Authorization | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3E. | Noncontravention | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3F. | Governmental Consents and Filings | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3G. | Financial Statements and Related Matters | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3H. | Absence of Undisclosed Liabilities and Certain Changes | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3I. | Assets | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3J. | Tax Matters | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3K. | Contracts and Commitments | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3L. | Intellectual Property | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M. | Litigation, Solvency, etc. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3N. | Insurance | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3O. | Employees | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3P. | Compliance with Laws | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Q. | Affiliated Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3R. | Real Property | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3S. | Data Privacy | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3T. | Insurance Issued by the Insurance Subsidiaries | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3U. | Permits and Licenses | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3V. | Reinsurance | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3W. | Investment Assets | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3X. | Reserves | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Y. | Regulatory Filings | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3Z. | Distributors and Brokers; Third-Party Administrators | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3AA. | No Other Representations or Warranties | 16 |
|  Section 4. | Representations and Warranties of the Purchasers | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4A. | Organization | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4B. | Authorization | 17 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4C. | Noncontravention | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4D. | Governmental Consents and Filings | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4E. | Brokerage | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4F. | Funds | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4G. | Investment Representations and Warranties | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4H. | Investigation by the Purchaser | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4I. | Certain Agreements of the Purchaser | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4J. | AEOI | 19 |
|  Section 5. | Definitions | 20 |
|  Section 6. | Indemnification | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6A. | Survival of Representations and Warranties | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6B. | Indemnification Generally | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6C. | Limitations on Indemnification | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6D. | Indemnification Procedures | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6E. | Tax Treatment | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6F. | Exclusive Remedy | 31 |
|  Section 7. | Covenants; Miscellaneous Provisions | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7A. | Press Release and Announcements | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7B. | Fees and Expenses | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7C. | Issuance of Warrants | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7D. | Consent to Amendments | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7E. | Successors and Assigns | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7F. | Severability | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7G. | Counterparts | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7H. | Descriptive Headings; Interpretation | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7I. | Entire Agreement | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7J. | No Third-Party Beneficiaries | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7K. | Governing Law | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7L. | Notices | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7M. | No Strict Construction | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7N. | WAIVER OF JURY TRIAL | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7O. | Submission to Jurisdiction | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7P. | Further Assurances | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7Q. | No Recourse |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7R. | Updates to Disclosure Schedules |  |

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ii

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| | |
|:---|:---|
|  <u>APPENDICES, SCHEDULES AND EXHIBITS</u> | <u>APPENDICES, SCHEDULES AND EXHIBITS</u> |
|  Appendices: |  |
|  Appendix A | Purchasers; Purchased Shares; Purchase Price |
|  Appendix B | Material Subsidiaries |
|  <u>Schedules</u>: |  |
|  Schedule A | Organization |
|  Schedule B | Equity Interests and Related Matters |
|  Schedule C | Subsidiaries |
|  Schedule G | Financial Statements and Related Matters |
|  Schedule K | Contracts and Commitments |
|  Schedule L | Intellectual Property |
|  Schedule M | Litigation, Solvency, etc. |
|  Schedule P | Compliance with Laws |
|  Schedule Q | Affiliated Transactions |
|  Schedule R | Real Property |
|  Schedule S | Data Privacy |
|  Schedule U | Permits & Licenses |
|  Schedule V | Reinsurance |
|  Schedule Y | Regulatory Filings |
|  <u>Exhibits</u>: |  |
|  Exhibit A | Third A&R Memorandum and Articles of Association |
|  Exhibit B | Second A&R Shareholders Agreement |
|  Exhibit C | Form of Warrant |

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iii

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**SECURITIES PURCHASE AGREEMENT** 

<u>PREAMBLE</u> 

THIS SECURITIES PURCHASE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of December 18, 2024, by and among Accelerant Holdings, a Cayman Islands exempted company limited by shares (the "<u>Company</u>"), and the purchasers set forth on <u>Appendix A</u> hereto (together with any Additional Purchasers who become a party to this Agreement at a subsequent Closing pursuant to <u>Section</u> <u>1B</u>, the "<u>Purchasers</u>"). The Company and the Purchasers are sometimes referred to herein together as the "<u>Parties</u>" and each individually as a "<u>Party</u>." Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Third Amended and Restated Memorandum and Articles of Association of the Company, entered into as of even date herewith, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>A&R Memorandum and Articles of Association</u>").

<u>RECITALS</u> 

WHEREAS, each Purchaser desires to purchase, and the Company wishes to issue to each such Purchaser, the number of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u>, which are newly-authorized equity securities of the Company, on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

<u>AGREEMENT</u> 

Section 1. <u>Purchase and Sale</u><u>; Sale of Additional Class</u> <u>C Convertible Preference Shares</u><u>.</u> 

1A. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall issue to each Purchaser, and each Purchaser shall subscribe for and purchase from the Company, the number of newly-issued Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, in each case, set forth opposite such Purchaser's name on <u>Appendix A</u> (the "<u>Class</u> <u>C Preference Issuance</u>").

1B. <u>Sale of Additional Class</u> <u>C Convertible Preference Shares</u>. After the Initial Closing, but no later than January 15, 2025, the Company may sell, on the same terms and conditions as those contained in this Agreement, additional authorized but unsold shares of Class C Convertible Preference Shares (the "<u>Additional Shares</u>"), to one or more Preference Shareholders that are not purchasing Class C Convertible Preference Shares pursuant to this Agreement (the "<u>Additional Purchasers</u>") in connection with the exercise by such Additional Purchasers of any preemptive rights to which they are entitled as a result of the transactions contemplated by this Agreement, provided that each Additional Purchaser becomes a party to the

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Transaction Documents, by executing and delivering a counterpart signature page to each of the Transaction Documents, as applicable. <u>Appendix A</u> to this Agreement shall be updated to reflect the number of Additional Shares purchased at each such Closing, the parties purchasing such Additional Shares and all other applicable information.

Section 2. <u>Closing; Closing Deliverables</u><u>.</u><u> </u>

2A. <u>Closing</u>. The Class C Preference Issuance shall take place via electronic exchange of the documents and other materials contemplated by <u>Section</u> <u>2B</u> and <u>Section</u> <u>2C</u> substantially simultaneously with the execution and delivery of this Agreement (the "<u>Initial Closing</u>"). In the event there is the issuance of Class C Convertible Preference Shares to Additional Purchasers after the Initial Closing pursuant to execution and delivery of this Agreement by such Additional Purchasers, the term "<u>Closing</u>" shall apply to each such issuance unless otherwise specified. The date hereof is referred to herein as the "<u>Initial Closing Date</u>". In the event there is more than one Closing, the term "<u>Closing Date</u>" shall apply to the date of any such Closing.

2B. <u>Company Closing</u> <u>Deliverables</u>. At any Closing, the Company shall deliver to each Purchaser purchasing Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, as applicable, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated as of such Closing Date, signed by a duly authorized person of the Company, certifying as to (A) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Company is a party, and the consummation of the Class C Preference Issuance and the other transactions contemplated hereby and by the other Transaction Documents, (B) the incumbency of the directors, officers and authorized signatories executing this Agreement and the other Transaction Documents to which the Company is a party and (C) the register of members of the Company reflecting that (x) each Purchaser is a member of the Company and (y) the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares have been issued to each such Purchaser in the respective numbers set forth opposite each such Purchaser's name on <u>Appendix A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one or multiple counterparts to the second amended and restated shareholders agreement, in the form attached hereto as <u>Exhibit B</u> (the "<u>A&R Shareholders Agreement</u>"), duly executed by the Company and each other shareholder of the Company necessary to amend and restate the Prior Agreement (as defined therein) (other than such Purchasers); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a legal opinion of Maples and Calder (Cayman) LLP, the Company's Cayman Islands legal counsel, attesting to, among other things, the valid issuance, full payment and non-assessability of the Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares upon issuance against payment in full of the consideration set forth in this Agreement and in accordance with the terms set out herein.

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2C. <u>Purchaser Closing Deliverables</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any Closing, each Purchaser purchasing Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares, as applicable, shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount, in cash, equal to the respective "purchase price" set forth opposite such Purchaser's name on <u>Appendix A</u>, by wire transfer of immediately available funds, to the account that has previously been identified to such Purchaser by the Company in writing (all such amounts together, the "<u>Closing Payment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a joinder to the A&R Shareholders Agreement, duly executed by such Purchaser if such Purchaser is not already a party thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed IRS Form W-9 or the applicable series of IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At any Closing, each Purchaser shall deliver to each other Purchaser a joinder to the A&R Shareholders Agreement, duly executed by such Purchaser if such Purchaser is not already a party thereto.

2D. <u>Filing of A&R Memorandum and Articles of Association</u>. Promptly following the Initial Closing, the Company shall call a general meeting of the shareholders of the Company in accordance with the shareholders agreement of the Company and, promptly following the approval at such meeting of the filing of the A&R Memorandum and Articles of Association, the Company shall file the A&R Memorandum and Articles of Association with the General Registry of the Cayman Islands and shall provide prompt reasonable evidence of such filing to the Purchasers.

Section 3. <u>Representations and Warranties of the Company</u>. As a material inducement to each Purchaser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby represents and warrants to each Purchaser as follows:

3A. <u>Organization</u>. The Company is duly incorporated, registered or organized, validly existing and in good standing (or equivalent, if applicable) under the Laws of its jurisdiction of formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect. The copies of the Governing Documents of the Company in effect as of the date hereof, which have been made available to the Purchasers, are accurate and complete copies of such Governing Documents. <u>Schedule A</u> lists all of the directors and officers of the Company and the directors of the General Partner as of immediately following the Closing.

3B. <u>Equity Interests and Related Matters</u>. Immediately prior to the Initial Closing (and before giving effect to the Class C Preference Issuance), the authorized and

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outstanding Equity Interests of the Company consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 1 of <u>Schedule B</u> attached hereto. Immediately following the Initial Closing (and after giving effect to the Class C Preference Issuance as of such Initial Closing), the issued and outstanding Equity Interests of the Company shall consist solely of securities, interests and rights which are held beneficially and of record as set forth on Part 2 of <u>Schedule B</u> attached hereto. The General Partner is the sole general partner of the Common Shareholder. Each of the securities set forth on <u>Schedule B</u> has been duly authorized for issuance and is validly issued and was not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. The Class C Convertible Preference Shares and the Class C-1 Convertible Preference Shares to be issued by the Company pursuant to this Agreement, when issued against payment of the Closing Payment therefor, will be validly issued, fully paid and non-assessable. Upon the Closing, other than as set forth on <u>Schedule B</u>, the Company has no outstanding Equity Interests, other securities or other agreements that could require the Company to issue, sell or otherwise cause to become outstanding any of its equity interests, including any profit participation or similar features, or any rights or options to subscribe for or to purchase any Equity Interests of the Company or any appreciation rights or phantom equity-type plans of the Company. The Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any Equity Interests of the Company or any warrants, options or other rights to acquire its Equity Interests, other than as expressly provided in or contemplated by this Agreement, the Prior Purchase Agreements, the A&R Memorandum and Articles of Association or the A&R Shareholders Agreement. The Company is not a party to, or otherwise subject to, any agreement granting registration rights to any Person with respect to any securities of the Company, and there are no statutory or contractual preemptive rights or rights of first refusal or other similar restrictions with respect to the Company's Equity Interests, including with respect to the Class C Preference Issuance, in each case, other than as explicitly set forth in the A&R Shareholders Agreement. The Company has not violated any applicable federal, state or foreign securities Laws in connection with the offer, sale or issuance of any of its Equity Interests. Except for the Transaction Documents and the Prior Purchase Agreements, there are no agreements or understandings between or among the Company and the holders of any of its Equity Interests or among any other Persons with respect to the voting or transfer of the Company's Equity Interests or with respect to any other aspect of its governance.

3C. <u>Subsidiaries</u>. The attached <u>Schedule C</u> correctly sets forth and describes the jurisdiction of each Company Subsidiary's formation, and a list of each Person that owns the Equity Interests of each such Company Subsidiary (including the percentage of Equity Interests owned by each such Person). Each Company Subsidiary is duly organized, validly existing and in good standing (or equivalent, if applicable) under the Laws of the jurisdiction of its formation, possesses all requisite power and authority to own, lease and operate its assets and properties and to carry on its businesses as now being conducted, and is qualified to do business in every jurisdiction in which the failure to so qualify, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. All such Equity Interests have been duly authorized and validly issued and are fully paid and non-assessable (to the extent applicable), and are owned by the Persons set forth opposite such Subsidiary's name on <u>Schedule C</u> free and clear of any Encumbrances (other than restrictions on transfer pursuant to their respective Governing Documents or applicable securities Laws). Except as set forth on <u>Schedule C</u>, neither the Company nor any of the Company Subsidiaries has any other Subsidiary.

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3D. <u>Authorization</u>. The Company has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each Transaction Document to which the Company is a party, the consummation of the Class C Preference Issuance hereunder and the consummation of all of the other transactions contemplated hereby and thereby have been duly authorized by the Company. This Agreement and each other Transaction Document to which the Company is a party constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3E. <u>Noncontravention</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby do not and will not, with or without the passage of time, giving of notice or both, result in (i) any violation, breach or default of any provision of the Company's Governing Documents, (ii) any material violation, breach or default of any provision of any instrument, judgment, order, writ or decree of any Governmental Entity, (iii) any material violation, breach or default of any provision of any Material Contract, (iv) any violation, breach or default of any material Law applicable to the Company or (v) an event which results in the creation of any material Encumbrance upon any assets of the Company or any of the Company Subsidiaries, or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company or any of the Company Subsidiaries.

3F. <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Purchasers in Section 4 of this Agreement, and except as would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of the Company or any of the Company Subsidiaries in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents. Assuming the accuracy of the representations and warranties in <u>Section</u> <u>4G</u> and <u>Section</u> <u>4I</u>, the Class C Preference Issuance will be exempt from registration under applicable securities Laws.

3G. <u>Financial Statements</u> <u>and</u> <u>Related Matters</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as the <u>Schedule G</u> are true, correct and complete copies of the following financial statements (the "<u>Financial Statements</u>"): (a) the audited balance sheet of the Company as of December 31, 2023 and the audited statements of income and cash flows for

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the annual period then ended and (b) the unaudited balance sheet (the "<u>Latest Balance Sheet</u>") of the Company as of September 30, 2024 (the "<u>Latest Balance Sheet Date</u>") and the unaudited statements of income and cash flows for the nine month period then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Financial Statements (including the notes thereto, if any) present fairly in all material respects the financial condition and results of operations and cash flows of the Company and the Company Subsidiaries as of the date thereof and for the periods covered thereby (subject to normal and recurring year-end audit adjustments, the effect of which would not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole), and have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby (subject to the absence of footnote disclosures and normal and recurring year-end audit adjustments, the effect of which will not, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole). The Financial Statements were prepared based on and are consistent with the books and records of the Company and the Company Subsidiaries, which are complete and accurate in all material respects.

3H. <u>Absence of Undisclosed Liabilities</u> <u>and Certain Changes</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has any obligation or liability (whether accrued, absolute, contingent or unliquidated, whether due or to become due and regardless of when asserted) that would be required to be set forth on a balance sheet compiled in accordance with GAAP, other than: (A) liabilities specifically reserved in the Latest Balance Sheet, (B) liabilities that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business (none of which is a liability resulting from any noncompliance with any applicable Laws, breach of Material Contract, or Proceeding), (C) obligations under executory contracts to which the Company or any Company Subsidiary is a party, and (D) liabilities and obligations that would not, individually or in the aggregate, reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as contemplated by this Agreement, since the Latest Balance Sheet Date, each of the Company and the Company Subsidiaries has conducted its business only in the Ordinary Course of Business, and, in respect of the Company and each Company Subsidiary, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any fact, event or circumstance, individually or in the aggregate, which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Indebtedness incurred or created, paid or repaid prior to its stated maturity, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any payment or distribution of cash or other property declared, set aside or made to any of its members, stockholders or partners with respect to such member's, stockholder's or partner's Equity Interests, or purchased, redeemed or otherwise acquired any of its Equity Interests (including any warrants, options or other rights to acquire its membership interests, capital stock or other equity securities);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any business or assets acquired in excess of $5 million, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any material damage, destruction, loss or casualty to tangible property or assets of the Company or any of the Material Subsidiaries, whether or not covered by insurance, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any sale, transfer, license, pledge, mortgage or other disposition of tangible or intangible assets in excess of $5 million by the Company or any of the Material Subsidiaries, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any rescission or change of any election with respect to income or other material Taxes of the Company or any of the Material Subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any agreement of the Company or any of the Material Subsidiaries to take any of the actions specified in this <u>Section</u> <u>3H(ii)</u>.

3I. <u>Assets</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the Material Subsidiaries have, in all material respects, good and valid title to, a valid leasehold interest in, or a valid license or other contractual right to use, the material tangible properties and material assets used by them, whether tangible or intangible (other than Investment Assets), reflected in the Latest Balance Sheet or acquired thereafter and would have been required to be reflected in the Latest Balance Sheet had it been owned as of the Latest Balance Sheet Date (the "<u>Assets</u>"), in each case free and clear of all Encumbrances, except for Permitted Liens. Such properties and assets comprise all of the properties and assets reasonably required for the conduct of the business of the Company and the Material Subsidiaries as presently conducted.

3J. <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerant Holdings (Cayman) and the Material Subsidiaries have duly and timely filed all federal, state, county, local and foreign income Tax Returns and all other material Tax Returns required to have been filed by them, and such Tax Returns have been prepared in compliance in all material respects with all applicable Laws and are accurate in all material respects. All material Taxes of the Company and the Material Subsidiaries due (whether or not shown as due on a Tax Return) have been timely paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are no Encumbrances for Taxes on any assets of Accelerant Holdings (Cayman) or the Material Subsidiaries, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has complied in all material respects with all applicable Laws relating to withholding of required amounts from payments to its employees, agents, contractors, nonresidents, partners, equity

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holders and lenders. Each of Accelerant Holdings (Cayman) and the Material Subsidiaries has timely remitted all material Taxes required to be withheld to the proper Governmental Entity in accordance with all applicable Laws in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are no actions, suits, examinations, audits or similar proceedings in progress with regard to any material Taxes or the material Tax Returns of or with respect to Accelerant Holdings (Cayman) or the Material Subsidiaries by any Governmental Entity, and no such action, suit, proceeding, examination, audits or similar proceeding has been threatened in writing.

3K. <u>Contracts and Commitments</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly contemplated by this Agreement, the Prior Purchase Agreements or as set forth on the attached <u>Schedule K</u>, neither the Company nor any of the Material Subsidiaries is a party to or bound by any executory contract, lease, license or other agreement (whether written or oral) that involves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) payments by the Company and/or any Material Subsidiary in excess of $3 million during the 12 month period ended on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prohibiting or materially limiting or restricting the Company or any Material Subsidiary from freely engaging in any business or competing anywhere in the world or providing for exclusivity in any business line, geographic area or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness involving liabilities in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) other than arising in the Ordinary Course of Business, any joint venture, partnership or other cooperative arrangement or similar arrangement involving a sharing of profits or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "most favored nations" provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) other than arising in the Ordinary Course of Business, material third-party administration or other insurance policy administration relating to the Insurance Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a capital maintenance contract, keepwell or similar agreement pursuant to which any Person has agreed to contribute capital or surplus to the Company or any Material Subsidiary or any capital maintenance contract or similar agreement pursuant to which the Company or any Material Subsidiary has agreed to contribute capital or surplus to any Person or guarantee the obligations of any Person under any insurance contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any material amendment, modification or supplement in respect of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the contracts, agreements, instruments and documents set forth on the attached <u>Schedule K</u> (each, a "<u>Material Contract</u>") are valid, binding and enforceable against the Company or the respective Material Subsidiary, as applicable, and, to the Knowledge of the

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Company, each other party thereto in accordance with their respective terms (except (A) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally, (B) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies or (C) as would not be material to the Company and the Company Subsidiaries, taken as a whole); <u>provided</u>, that, for the avoidance of doubt, "Material Contracts" shall not include any contract that will be fully performed or satisfied as of or prior to the Initial Closing, or, if this Agreement is being executed and delivered with respect to an Additional Closing, as of or prior to such Additional Closing. Neither the Company nor any of the Material Subsidiaries is in material default under or in material breach of, or in receipt of any written claim of such material default or material breach, under any Material Contract. No event has occurred which, with the passage of time or the giving of notice, or both, would result in a material default, breach or event of noncompliance, in each such case, by the Company or any of the Material Subsidiaries under any such Material Contract. There are no outstanding, pending, or to the Knowledge of the Company, threatened material disputes with respect to any such Material Contract. True, correct and complete copies of each Material Contract have been made available to the Purchasers.

3L. <u>Intellectual Property</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Registered Intellectual Property owned or purported to be owned by the Company or the Material Subsidiaries has been duly maintained (including the payment of required maintenance fees), is not expired, cancelled or abandoned and, to the Knowledge of the Company, is valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the Lookback Date, except as set forth on <u>Schedule L</u>, (A) the conduct of the business of the Company and the Material Subsidiaries, including any product or service marketed, sold or licensed (or proposed to be marketed, sold or licensed) by the Company and the Material Subsidiaries, to the Knowledge of the Company, has not infringed, misappropriated, diluted or otherwise violated any Intellectual Property of any non-affiliated third party in any material respect and (B) to the Knowledge of the Company, neither the Company nor any of the Material Subsidiaries has received any written notices, written offers to license, written requests for Intellectual Property indemnification or written threats from any Person related to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Company Subsidiaries own, lease, license or otherwise have the right to use all IT Systems, and the IT Systems are reasonably sufficient for the immediate needs of the Company and the Material Subsidiaries' business. The Company and the Company Subsidiaries maintain commercially reasonable security, disaster recovery and business continuity plans, procedures and facilities and, in the last 12 months, there has not been any failure with respect to any of the IT Systems that has not been remedied or replaced and that would reasonably be expected to have a Material Adverse Effect.

3M. <u>Litigation, Solvency, etc</u><u>.</u> Except as set forth on the attached <u>Schedule M</u> (which identifies the applicable entities to which each such exception is applicable), there are no actions, suits, proceedings, orders, investigations or written claims ("<u>Proceedings</u>") (A) pending or, to the Knowledge of the Company, threatened against the Company or any of the Material

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Subsidiaries or any business or assets thereof, or (B) pending or threatened in writing by the Company or any of the Material Subsidiaries against any Person, in either case, at law or in equity, or before or by any Governmental Entity (including any Proceedings with respect to the transactions contemplated by this Agreement or the other Transaction Documents) that would reasonably be expected to result in (i) Losses in excess of $5 million (excepting Losses incurred in the ordinary course under contracts of insurance) or (ii) an injunction or other similar remedy that would reasonably be expected to be material and adverse to the Company or any Material Subsidiary or the conduct of their respective businesses. None of the Company nor any of the Material Subsidiaries is subject to any arbitration proceedings or any governmental or regulatory investigations. None of the Company nor any Material Subsidiary is subject to any judgment, order or decree of any court or other Governmental Entity.

3N. <u>Insurance</u>. Each material insurance policy maintained by or for the benefit of the Company or any Material Subsidiary is, and as of immediately following the Initial Closing (or, if the execution and delivery related to an Additional Closing, immediately following such Additional Closing) will be, in full force and effect. All premiums payable under all such policies have been paid and neither the Company nor any Material Subsidiary has received any written notice of cancellation, termination or revocation or other written notice that any such insurance policy is in no longer in full force and effect. To the Knowledge of the Company, neither the Company nor any Material Subsidiary is in default of any provision under any such policy.

3O. <u>Employees</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of management of the Company or any Material Subsidiary has notified the Company or such Material Subsidiary in writing that such individual plans to terminate his or her employment with the Company or such Material Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each Material Subsidiary is, and since the Lookback Date, has been, in compliance in all material respects with all material Laws and contracts relating to the employment of labor (collectively, "<u>Employment Laws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There are no unfair labor practice charges or any other material charges, claims, actions, suits, complaints, proceedings, orders, audits, investigations or material claims pertaining to, or alleging violation of, any Employment Laws (A) pending or (B) threatened in writing, in each case, against or involving the Company or any of the Company Subsidiaries that would reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company and each Material Subsidiary (A) have paid in full to all employees, independent contractors and consultants all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, independent contractors and consultants, including all wages due for all regular and overtime hours worked according to the applicable wage and hour Laws of the jurisdictions in which the employees work and (B) have provided all employees with earned rest breaks and meal periods, if applicable, in all material respects in accordance with the Laws of the jurisdictions in which the employees work and any agreements with such employees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as would not result in a material liability to the Company or any Company Subsidiary, the Company and each Company Subsidiary have properly completed and maintained Form I-9s on all employees to the extent required by applicable Laws. There has not been, since the Lookback Date, any labor strike, lockout, picketing, work slowdown, work stoppage or material labor dispute actually pending or, to the Knowledge of the Company, threatened against or involving the Company or any of the Company Subsidiaries, as applicable. No labor organization represents any employees of the Company or any of the Company Subsidiaries or represents any consultants or contingent or leased workers of the Company or any of the Company Subsidiaries concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries, and there is no pending or, to the Knowledge of the Company, threatened labor organizing campaign, petition, demand for recognition, election proceeding or other effort to establish a labor organization as a collective bargaining representative for employees of the Company, any of the Company Subsidiaries or as a collective bargaining representative for consultants of the Company concerning terms and conditions of their engagement to provide services to the Company or any of the Company Subsidiaries.

3P. <u>Compliance with Laws</u>. Except as set forth on the attached <u>Schedule P</u> or as otherwise specifically addressed herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Company and each of the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with all applicable Laws. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any material judgment, decree or award of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and the Company Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with applicable anti-corruption Laws, including the U.S. Foreign Corrupt Practices Act and similar Laws of those countries in which the Company and each Material Subsidiary conduct business, and, to the Knowledge of the Company, there are no unresolved investigations or claims concerning any material liability of the Company or any Material Subsidiary with respect to such Laws. Each of the Company and the Material Subsidiaries is, and since the Lookback Date has been, in compliance in all material respects with the applicable provisions of the U.S. Bank Secrecy Act and USA PATRIOT Act of 2001 and other applicable foreign Laws relating to anti-money laundering and similar matters.

3Q. <u>Affiliated Transactions</u>. Except as set forth on the attached <u>Schedule Q</u> or as have been reviewed and approved by a Governmental Entity, and except for any employment agreements or similar compensation arrangements entered into in the Ordinary Course of Business, no officer, director, member, manager, stockholder, partner, consultant or Affiliate of or to the Company or any of the Material Subsidiaries, or, to the Knowledge of the Company, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than a 5% beneficial interest, is a party to any

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agreement, contract, commitment, or understanding with or relating to the Company or any of the Material Subsidiaries, or has any ownership interest in any property used by the Company or any Material Subsidiary.

3R. <u>Real Property</u>. Except as set forth on <u>Schedule R</u> attached hereto, and except for Investment Assets, neither the Company nor any Material Subsidiary owns any material real property or any interest therein, or is under contract to purchase any material real property or any interest therein. <u>Schedule R</u> attached hereto sets forth a true, correct and complete list of all of the material leases, subleases and occupancy agreements (the "<u>Leases</u>") of real property (the "<u>Leased Real Property</u>") in which the Company or any of the Material Subsidiaries has a leasehold or subleasehold interest. The Company or a Material Subsidiary holds a good and valid leasehold interest under each of the Leases, free and clear of any and all Encumbrances, except Permitted Liens, and each Lease is legal, valid, binding on and enforceable against the Company or applicable Material Subsidiary and in full force and effect, subject to proper authorization and execution of such Lease by the other party thereto and except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of the Material Subsidiaries, nor, to the Knowledge of the Company, any other party to any Lease, is in breach of or default under such Lease beyond applicable notice and cure periods, and no event has occurred that, with notice or lapse of time or both, will constitute a material breach or default by the Company or any Material Subsidiary or, to the Knowledge of the Company, any other party thereto, under such Lease. Neither the Company nor any Material Subsidiary has assigned, subleased, mortgaged or otherwise transferred or encumbered any Lease or any Leased Real Property or any interest therein. True, correct and complete copies of each Lease have been made available to the Purchasers.

3S. <u>Data Privacy</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each of the Material Subsidiaries are, and at all times since the Lookback Date have been, in material compliance with all applicable federal, state, local and foreign Laws and payment card industry data security standards, and material contracts pertaining to the collection, storage, use, disclosure, and transfer of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of the Material Subsidiaries, as applicable, maintain commercially reasonable administrative, technical and physical standards to protect the Personal Data in its possession or control against damage, loss, and unauthorized access, acquisition, use, modification, disclosure, or other misuse. To the Knowledge of the Company and except as set forth on <u>Schedule S</u>, (A) there has been no material unauthorized access, use, or disclosure of Personal Data in the possession or control of the Company or any Material Subsidiary with regard to any Personal Data obtained from or on behalf of the Company or any Material Subsidiary and (B) there has been no unauthorized intrusions or breaches of security into any Company or Material Subsidiary systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date hereof, there is no, nor, to the Knowledge of the Company, is there any threatened, Proceeding against the Company or any Material Subsidiary by any Person or Governmental Entity regarding the Company or any Material Subsidiary's collection, storage, use, disclosure, or transfer of Personal Data.

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3T. <u>Insurance Issued by the Insurance Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, all benefits due and payable, or required to be credited, by or on behalf of the Insurance Subsidiaries on Insurance Contracts in force on such dates have been in all material respects paid, credited or reserved, as the case may be, in accordance with the terms of the Insurance Contracts under which they arose, and such payments or credits were not materially delinquent and were paid or credited (or will be paid or credited) without material fines or penalties (excluding interest), except for such benefits or claims for which an Insurance Subsidiary believed there was a reasonable basis to contest payment and is currently contesting such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, all policy forms on which in-force Insurance Contracts were issued, and all amendments, applications, and certificates pertaining thereto, where required by applicable Law, have been approved by all applicable Governmental Entities or filed with and not objected to by such Governmental Entities within the time period provided by applicable Law for objection, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect, and all such policy forms and all amendments, applications and certificates pertaining thereto comply in all material respects with applicable Law. To the Knowledge of the Company, no material deficiencies have been asserted by any Governmental Entity with respect to any such filings which have not been cured or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any rates currently used for in-force Insurance Contracts, where required to be filed with or approved by any Governmental Entity, have been so filed or approved, and such rates conform thereto, subject to such exceptions that, individually or in the aggregate, have not had, and would not be reasonably expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the Knowledge of the Company, the Insurance Contracts in force have been marketed, sold, issued, maintained and administered in compliance, in all material respects, with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No provision in any Insurance Contract written by any Insurance Subsidiary gives the holder thereof or any other Person the right to receive policy dividends or otherwise participate in the revenue, earnings or profits of the Company or any Insurance Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the Knowledge of the Company, since the Lookback Date, the Insurance Subsidiaries have timely paid in all material respects all guaranty fund assessments that have been due, claimed or asserted by, or are the subject of any voluntary contribution commitment to, any insurance regulator in any jurisdiction in which any of the Insurance Subsidiaries sells Insurance Contracts. Except for regular periodic assessments in the Ordinary Course of Business or assessments based on developments that are publicly known within the insurance industry, no material claim or assessment is pending or, to the Knowledge of the

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Company, threatened against the Company or any Insurance Subsidiary with respect to any state insurance guaranty association (where applicable) in connection with such association's fund relating to insolvent insurers.

3U. <u>Permits and Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Insurance Subsidiaries and the Reinsurance Subsidiary holds all material permits or licenses from all insurance regulators and all other Governmental Entities that are necessary for the current operation and conduct of the businesses of each of the Insurance Subsidiaries and the Reinsurance Subsidiary and to own or use its assets and properties (collectively, the "<u>Operating Permits</u>"). All such Operating Permits are valid and in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as set forth on <u>Schedule U</u>, to the Knowledge of the Company, neither the Company nor any of the Insurance Subsidiaries or the Reinsurance Subsidiary have received any written notice, or, to the Knowledge of the Company, oral communication from any insurance regulator or Governmental Entity regarding any actual, alleged, or potential material violation of, or failure to comply with, the terms or requirements of any such insurance permit, insurance license, or Operating Permit. As of the date hereof, none of the Insurance Subsidiaries or the Reinsurance Subsidiary is the subject of any pending or, to the Knowledge of the Company, threatened Proceeding seeking the revocation, withdrawal, suspension, termination, cancellation, nonrenewal, modification or impairment of any such insurance permit, insurance license or Operating Permit.

3V. <u>Reinsurance</u>. Part one of <u>Schedule V</u> sets forth a true, complete and correct list of any and all reinsurance agreements and treaties with associated reserves, reinsurance recoverables or liabilities in excess of $5,000,000 to which any of the Insurance Subsidiaries or the Reinsurance Subsidiary is a party and has any existing material rights or material obligations as of the date hereof (each, a "<u>Reinsurance Agreement</u>"). The Company has made available to the Purchasers a true, complete and correct copy of each Reinsurance Agreement (including any amendments thereto) in effect as of the date hereof. Each Reinsurance Agreement is a legal, valid and binding obligation of the applicable Insurance Subsidiary or Reinsurance Subsidiary and, to the Knowledge of the Company, each other party thereto, and is enforceable against such Insurance Subsidiary or Reinsurance Subsidiary, as applicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms (except, in each case, as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Law now or hereafter in effect relating to or affecting creditors' rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). To the Knowledge of the Company, neither the Company nor the applicable Insurance Subsidiary or Reinsurance Subsidiary, nor any of the other parties to any Reinsurance Agreement, is in material default or material breach or has failed to perform any material obligation under any such Reinsurance Agreement or treaty, and, to the Knowledge of the Company, there does not exist any event, condition or omission that would constitute such a material breach or material default (with or without lapse of time or notice or both). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any

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Reinsurance Agreement that, if determined adversely with respect to the Company or any Insurance Subsidiary or Reinsurance Subsidiary, would be material to the Company and the Company Subsidiaries, taken as a whole. As of the date hereof, no party to any Reinsurance Agreement has given written notice in accordance with the terms thereof of termination (provisional or otherwise) or recapture in respect of any Reinsurance Agreement. Since the Lookback Date, (i) except as disclosed in part two of <u>Schedule V</u>, there has not been any written notice of dispute with respect to any material amounts recoverable or payable by the Company or any Insurance Subsidiary or the Reinsurance Subsidiary pursuant to any Reinsurance Agreement and (ii) no reinsurer party has sought in writing to deny or limit coverage or revoke, terminate, rescind or change, in accordance with the terms of any Reinsurance Agreement, any material reinsurance premiums or expense allowances.

3W. <u>Investment Assets</u>. The Company has made available to the Purchasers true and correct copies of the investment guidelines and policies of the Company and the Material Subsidiaries in effect as of the date hereof (the "<u>Investment Guidelines and Policies</u>"). No changes have been made to such Investment Guidelines and Policies from the date of the Latest Balance Sheet to the date hereof.

3X. <u>Reserves</u>. To the Knowledge of the Company, the Reserves of any Insurance Subsidiary contained in any statutory or other statements filed by it with any Governmental Entity as of and for the annual periods ended December 31, 2022 and 2023, except as otherwise noted in such statements: (A) were determined in all material respects in accordance with generally accepted actuarial standards consistently applied and were fairly stated, in all material respects, in accordance with sound actuarial principles in effect as of the date of such statements (except as otherwise noted in the such statements), (B) were based on actuarial assumptions which produced reserves at least as great as those called for in any contract provision as to reserve basis and method and (C) satisfied the requirements of all applicable Law and, as applicable, SAP in all material respects.

3Y. <u>Regulatory Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Company and each applicable Material Subsidiary has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Entity since the Lookback Date; (B) all such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed; and (C) no material deficiencies have been asserted by any such Governmental Entity with respect to such registrations, filings or submissions that have not been addressed or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of the date hereof, all material deficiencies or violations noted in the material reports of examination (including financial, market conduct and similar examinations) of any of the Insurance Subsidiaries or the Reinsurance Subsidiary issued by any insurance Governmental Entity since the Lookback Date have been resolved to the reasonable satisfaction of the insurance Governmental Entity that noted such deficiencies or violations. As of the date hereof, other than as set forth on <u>Schedule Y</u> or for routine regulatory examinations to which the Company and the Material Subsidiaries are subject in the Ordinary Course of Business, there are no examinations, investigations or material inquiries by any state insurance regulatory examiners in progress with respect to the Company or any Material Subsidiary.

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3Z. <u>Distributors and Brokers; Third-Party Administrators</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Knowledge of the Company, since the Lookback Date, each insurance agent, underwriter, wholesaler, broker, reinsurance intermediary and distributor that wrote, sold, or produced insurance business for any Insurance Subsidiary (each, a "<u>Distributor</u>"), at the time such Person wrote, sold or produced such business, was duly licensed or registered as required by Law (for the type of business written, sold or produced on behalf of the Company), was duly authorized and appointed (to the extent required by applicable Law) by the applicable Insurance Subsidiary, and to the Knowledge of the Company, no Distributor is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the writing, sale or production of insurance business for any Insurance Subsidiary, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect. To the Knowledge of the Company, since the Lookback Date, no Distributor has been enjoined, indicted, convicted or made the subject to any material consent decree or judgment on account of any violation of applicable Law in connection with such Distributor's actions in his, her or its capacity as Distributor for any Insurance Subsidiary or has been subject to any material enforcement or disciplinary proceeding alleging any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Knowledge of the Company, since the Lookback Date, (A) each third party administrator that managed or administered insurance business for any Insurance Subsidiary, at the time such Person managed or administered such business, was duly licensed or registered as required by Law (for the type of business managed or administered on behalf of such Insurance Subsidiary), and (B) no such third party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for any Insurance Subsidiary, except, in the case of (A) and (B), for such failures to be licensed or registered or such violations which have been cured, resolved or settled through agreements with applicable Governmental Entities or are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Each Insurance Subsidiary has paid all compensation owed to all of its Distributors and third party administrators relating to the sale of its Insurance Contracts and (B) no Distributor or third party administrator has any right to require the Company to reinsure or otherwise transfer the economic benefits of the Insurance Contracts (or any portion thereof) to any Person.

3AA. <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Section</u> <u>3</u>, the Company does not make any other express or implied representation or warranty with respect to the Company, any Company Subsidiary, any

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other information provided or made available to any Purchaser or its respective representatives or any other matter, and the Company disclaims any other representations or warranties, whether made by or on behalf of the Company or any other Person. Neither the Company nor any other Person will have or be subject to any liability to any Purchaser or any of their respective Affiliates resulting from the distribution to such Purchaser or any of its Affiliates or representatives, or such Purchaser's (or Affiliate's or representative's) use of, any such information, including any information, documents, projections, forecasts, estimates, plans, budget information or other material made available to such Purchaser or its Affiliates or representatives in any "data rooms," "virtual data rooms," management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever (electronic or otherwise) or otherwise in expectation of the transactions contemplated hereby.

Section 4. <u>Representations and Warranties of the Purchaser</u><u>s</u>. As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, each Purchaser (severally and not jointly) hereby represents and warrants to the Company as follows:

4A. <u>Organization</u>. Such Purchaser is duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, and possesses all requisite power and authority necessary to enter into and carry out the transactions contemplated by this Agreement.

4B. <u>Authorization</u>. Such Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the other Transaction Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by such Purchaser. This Agreement and each other Transaction Document to which such Purchaser is a party constitute valid and binding obligations of such Purchaser, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the enforcement of creditors' rights generally and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4C. <u>Noncontravention</u>. The execution, delivery and performance by such Purchaser of this Agreement and the other Transaction Documents to which such Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, including the subscription for the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares hereunder and the fulfillment of and compliance with the respective terms hereof and thereof by such Purchaser, do not and shall not, with or without the passage of time, giving of notice or both, result in any violation, breach or default (i) of any provision of such Purchaser's Governing Documents, (ii) or any instrument, judgment, order, writ or decree of any Governmental Entity or (iii) of any material Law currently in effect applicable to such Purchaser.

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4D. <u>Governmental</u> <u>Consents and Filings</u>. Assuming the accuracy of the representations and warranties made by the Company in <u>Section</u> <u>3</u> of this Agreement, no consent, approval, exemption, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Entity is required on the part of such Purchaser in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.

4E. <u>Brokerage</u>. There are and shall be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which such Purchaser is a party or to which such Purchaser is subject, other than any such fees to be borne solely by such Purchaser.

4F. <u>Funds</u>. Such Purchaser will have sufficient capital resources to consummate the transaction contemplated by this Agreement and to perform all of its obligations hereunder.

4G. <u>Investment Representations and Warranties</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Purchaser has determined that the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares are a suitable investment for such Purchaser. Such Purchaser is acquiring the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares, as applicable, pursuant to the Class C Preference Issuance for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities Laws or any applicable state securities Laws; <u>provided</u>, that nothing contained herein shall prevent such Purchaser and subsequent holders of the Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares from transferring such securities in compliance with the provisions of the A&R Memorandum and Articles of Association, the A&R Shareholders Agreement and applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser acknowledges and understands that the Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares are characterized as "restricted securities" under the federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and such securities may be resold without registration under the Securities Act only in certain limited circumstances exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent waivable by Law, such Purchaser is not a "benefit plan investor," as described below, as of the date hereof, and agrees to notify the Company immediately if such Purchaser becomes a "benefit plan investor." The term "benefit plan investor" refers to: (A) any "employee benefit plan," as defined in, and subject to the fiduciary responsibility provisions of, ERISA, (B) any "plan," as defined in and subject to Section 4975 of the Code, and (c) any entity (a "<u>Plan Assets Entity</u>") deemed for any purpose of ERISA or

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Section 4975 of the Code to hold assets of any such employee benefit plans or plans due to investments made in such entity by already described benefit plan investors. "Benefit plan investors" include corporate pension and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners), individual retirement accounts, medical benefit plans, life insurance plans, church plans that have elected to be subject to ERISA, bank commingled trust funds or insurance company separate accounts for such plans and accounts, and, under certain circumstances, all or a portion of the general account of an insurance company.

4H. <u>Investigation by the Purchaser</u>. Such Purchaser acknowledges and agrees that it has made its own inquiry of and investigation into such books, records, facilities, equipment, contracts, assets and management personnel of the Company and the Company Subsidiaries as it has desired or requested to review, and, based thereon, has formed an independent judgment concerning the Company and the Company Subsidiaries, their respective businesses, properties, prospects, financial conditions and operations, and the Class C Preference Issuance and other transactions contemplated hereby and by the other Transaction Documents.

4I. <u>Certain Agreements of the Purchaser</u>. Such Purchaser acknowledges and agrees that the only representations and warranties made by or on behalf of the Company with respect to the Company, any Company Subsidiary, any other information provided or made available to such Purchaser or its Affiliates or representatives or any other matter, including with respect to the businesses, assets, liabilities, operations or condition of the Company and the Company Subsidiaries, are specifically set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules), and that no other representation or warranty is or has been expressed or implied, at law or in equity, including with respect to merchantability or fitness of any assets for any particular purpose, the nature or extent of any liabilities, the prospects of the business of the Company and the Company Subsidiaries, the effectiveness or the success of any operations or the accuracy or completeness of any confidential information memoranda, documents, projections, materials or other information regarding the Company and the Company Subsidiaries made available or otherwise furnished to such Purchaser or its Affiliates or representatives or any other matter. Such Purchaser specifically disclaims that it is relying upon or has relied upon any representations or warranties purported to be made by any Person other than as set forth in <u>Section</u> <u>3</u> (as modified by the Disclosure Schedules) and acknowledges that the Company specifically disclaims any such other representation or warranty made by any Person.

4J. <u>AEOI</u>. Such Purchaser acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may be required to comply with the provisions of AEOI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Purchaser will provide, in a timely and accurate manner, such information regarding such Purchaser and its beneficial owners and such forms or documentation as may be reasonably requested from time to time by the Company or its agent to enable the Company to comply with any requirements and obligations imposed on it pursuant to AEOI, specifically, but not limited to, forms and documentation which the Company may require to determine whether or not such Purchaser's relevant investment is a "Reportable Account" (under any AEOI regime) and to comply with the relevant due diligence procedures in making such determination;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any such forms or documentation requested by the Company or its agents pursuant to clause (ii), or any financial or account information with respect to such Purchaser's investment in the Company, may be disclosed to the Cayman Islands Tax Information Authority (or any other Cayman Islands governmental body which collects information in accordance with AEOI) and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent waivable by Law, such Purchaser waives, and shall cooperate with the Company to obtain a waiver of, the provisions of Law which (a) prohibit the disclosure by the Company, or by any of its agents, of the information or documentation requested from such Purchaser pursuant to clause (ii) of this <u>Section</u> <u>4J</u>, (b) prohibit the reporting of financial or account information by the Company or its agents required pursuant to AEOI; or (c) otherwise prevent compliance by the Company with its obligations under AEOI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If such Purchaser provides information and documentation that is in anyway misleading, or it fails to timely and accurately provide the Company or its agents with the requested information and documentation necessary in either case to satisfy the Company's obligations under AEOI, then in addition to the indemnification rights set forth in <u>Section</u> <u>6B(ii)</u>, Company reserves the right (whether or not such action or inaction leads to compliance failures by the Company, or a risk of the Company or its owners being subject to withholding tax or other costs, debts, expenses, obligations or liabilities under AEOI ("<u>AEOI Expenses</u>")) to take any action and pursue all remedies at its disposal to cause such Purchaser to bear any or all AEOI Expenses and to hold back or deduct from any withdrawal or other proceeds due to such Purchaser any or all AEOI Expenses attributable to such Purchaser's noncompliance.

Section 5. <u>Definitions</u>. For the purposes of this Agreement, the following terms have the meanings set forth below:

"<u>A&R Memorandum and Articles of Association</u>" has the meaning set forth in the Preamble.

"<u>A&R Shareholders Agreement</u>" has the meaning set forth in <u>Section</u> <u>2B(ii)</u>.

"<u>Accelerant Holdings (Cayman)</u>" means Accelerant Holdings (Cayman) Ltd., a Cayman Islands exempted company.

"<u>Additional Purchasers</u>" has the meaning set forth in <u>Section</u> <u>1B</u>.

"<u>Additional Shares</u>" has the meaning set forth in <u>Section</u> <u>1B</u>.

"<u>AEOI</u>" means (i) FATCA as enacted in the United States and similar financial account information reporting and/or withholding tax regimes enacted in any other jurisdiction, (ii) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters – the Common Reporting Standard and any associated guidance; (iii) any

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intergovernmental agreement, treaty, regulation, guidance, standard or other agreement between the Cayman Islands (or any Cayman Islands government body) and any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations, guidance or standards described in the foregoing clauses (i) and (ii); and (iv) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the foregoing clauses (i) through (iv).

"<u>AEOI Expenses</u>" has the meaning set forth in <u>Section</u> <u>4K(v)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Assets</u>" has the meaning set forth in <u>Section</u> <u>3I(i)</u>.

"<u>Barings Purchasers</u>" means Barings BDC, Inc., Barings Capital Investment Corporation, Barings Private Credit Corporation, Barings Global Special Situations Credit Fund 4 (Delaware), L.P., Barings Capital Solutions Perpetual (DE) Series LLC, Barings Capital Solutions Perpetual (LUX) Series LLC, Barings Capital Solutions Perpetual Fund (CA), L.P., Barings Finance LLC, Barings SPDF 1 Series LLC - Series A and CELF SPV LLC.

"<u>Basket</u>" has the meaning set forth in <u>Section</u> <u>6C(i)</u>.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in New York, New York or the Cayman Islands.

"<u>Class</u> <u>C Preference Issuance</u>" has the meaning set forth in <u>Section</u> <u>1</u><u>A</u>.

"<u>Class</u> <u>C Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Class</u> <u>C-1 Convertible Preference Shares</u>" has the meaning set forth in the A&R Memorandum and Articles of Association.

"<u>Closing</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Closing Payment</u>" has the meaning set forth in <u>Section</u> <u>2C</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986.

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"<u>Common Shareholder</u>" means Accelerant Holdings LP, a Cayman Islands exempted limited partnership.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>Company Fundamental Representations</u>" means those representations and warranties set forth in <u>Sections</u> <u>3A</u>, <u>3B</u> (other than the seventh and eighth sentences thereof), <u>3C</u> (other than the second sentence thereof), <u>3D</u> and <u>3E(i)</u>.

"<u>Company Group</u>" means the Company and the Company Subsidiaries.

"<u>Company Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(ii)</u>.

"<u>Company Subsidiary</u>" means each Subsidiary of the Company.

"<u>Disclosure Schedules</u>" means the aggregate set of schedules qualifying various representations and warranties set forth in <u>Section</u> <u>3</u>.

"<u>Disqualification Event</u>" has the meaning set forth in <u>Section</u> <u>4G(iv)</u>.

"<u>Distributor</u>" has the meaning set forth in <u>Section</u> <u>3Z</u>.

"<u>Employment Laws</u>" has the meaning set forth in <u>Section</u> <u>3O(ii)</u>.

"<u>Encumbrance</u>" means any Lien, agreement (other than the applicable Governing Documents and any Transaction Document), voting trust, proxy or other arrangements or restrictions of any kind whatsoever.

"<u>Equity Interests</u>" means any membership interests, partnership interests, capital stock or other equity securities or ownership interests, or securities exercisable or exchange for or convertible into, or other rights to acquire, membership interests, partnership interests, capital stock or other equity securities or ownership interests.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974.

"<u>FATCA</u>" shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, any current or future regulations or official interpretations thereunder, any agreement entered into thereunder and any applicable Law implementing an intergovernmental agreement or approach thereto.

"<u>Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

"<u>Fraud</u>" shall be defined as actual and intentional fraud in accordance with the Laws of the State of New York, without giving effect to its choice of law provisions (but, for the avoidance of doubt, does not include negligent or reckless misrepresentation or omission).

"<u>GAAP</u>" means generally accepted accounting principles as in effect from time to time in the United States.

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"<u>General Partner</u>" means Accelerant Holdings GP, a Cayman Islands exempted company limited by shares.

"<u>Governing Documents</u>" means, with respect to any Person, its certificate of incorporation, registration or formation (as applicable) and limited liability company agreement, bylaws, memorandum and articles of association, partnership agreement or exempted limited partnership agreement (as applicable) or similar governing documents.

"<u>Governmental Entity</u>" means: (i) any federal, state, province, local, municipal, tribal, foreign or other government; (ii) any governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or regulatory organization and any court or other tribunal); (iii) any Person exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; and (iv) any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

"<u>Indebtedness</u>" means, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums payable as a result of the consummation of the transactions contemplated hereby) arising under, any obligations of the Company or the Material Subsidiaries consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (but excluding any trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (c) capital leases, (d) to the extent drawn upon, letters of credit, surety bonds and similar instruments issued for the account of the Company or the Material Subsidiaries, (e) interest rate swap contracts, swap contracts, foreign currency exchange contracts or other hedging or similar contracts (including any breakage or associated fees), (f) guarantees of the obligations described in clauses (a) through (e) above of any other Person, or (h) all obligations of the type referred to in clauses (a) through (f) secured by any Encumbrance on any property or asset of the Company or the Material Subsidiaries (whether or not such obligation is assumed by the Company or the Material Subsidiaries). Notwithstanding the foregoing, "Indebtedness" shall not include (i) any deferred franchise fees, (ii) any undrawn portion of any letters of credit, (iii) any inter-company obligations of the Company and the Material Subsidiaries or (iv) any obligations under operating leases.

"<u>Indemnification Notice</u>" has the meaning set forth in <u>Section</u> <u>6D(i)</u>.

"<u>Indemnified Person</u>" means (i) the applicable Company Indemnitee in the case of any indemnification obligation of a Purchaser or (ii) the applicable Purchaser Indemnitee in the case of any indemnification obligation of the Company.

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"<u>Indemnifying Party</u>" means (i) the Company, in the case of any indemnification obligation of the Company or (ii) the respective Purchaser, in the case of any indemnification obligation of such Purchaser.

"<u>Initial Closing Date</u>" has the meaning set forth in <u>Section</u> <u>2A</u>.

"<u>Insurance Contracts</u>" means the insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, renewed, entered into, reinsured, modified or sold by, or on behalf of, any Insurance Subsidiary prior to the Closing Date.

"<u>Insurance Subsidiaries</u>" means the Subsidiaries of the Company identified on the <u>Insurance Subsidiaries Schedule</u>.

"<u>Intellectual Property</u>" means all intellectual property rights recognized under the Laws of any jurisdiction throughout the world, including rights to: (i) patents and patent applications, including all provisionals, continuations, continuations-in-part, divisionals, reissues, reexaminations, renewals and extensions of any of the foregoing; (ii) trademarks, service marks, trade dress, trade names and other indicia of origin, all applications and registrations for any of the foregoing and all goodwill associated therewith; (iii) works of authorship, copyrights, software, databases, mask works, applications and registrations for any of the foregoing and moral rights in any of the foregoing; (iv) internet domain names; and (v) trade secrets, know-how, inventions (whether or not patentable), invention disclosures, algorithms, formulae, processes and confidential information and proprietary information.

"<u>Investment Assets</u>" means any interest in bonds, notes, debentures, mortgage loans, real estate, instruments of indebtedness, stocks, joint venture or partnership interests, and all other equity interests, certificates issued by or interests in trusts, derivatives or other assets acquired or held for investment purposes, including any assignment instruments relating thereto.

"<u>Investment Guidelines and Policies</u>" has the meaning set forth in <u>Section</u> <u>3</u><u>W</u>.

"<u>IT Systems</u>" means all software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals and computer systems, including any outsourced systems and processes, in each case, that are owned or used by or for the Company and the Company Subsidiaries in the conduct of their business.

"<u>Knowledge of the Company</u>" means the actual knowledge of Jeffrey Lee Radke, Christopher Lee-Smith or Francis James O'Neill, without any duty of inquiry.

"<u>Latest Balance Sheet</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

"<u>Latest Balance Sheet Date</u>" has the meaning set forth in <u>Section</u> <u>3G(i)</u>.

"<u>Laws</u>" means any federal, state, local, municipal, foreign or other statute, law, ordinance, regulation, rule, code or principle of common law.

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"<u>Lead Investor Closing Fee</u>" has the meaning set forth in <u>Section</u> <u>7B</u>.

"<u>Leased Real Property</u>" has the meaning set forth in <u>Section</u> <u>3T</u>.

"<u>Leases</u>" has the meaning set forth in <u>Section</u> <u>3T</u>.

"<u>Licenses</u>" means all licenses, permits, franchises and approvals from any Governmental Entity, whether foreign, federal, state or local, currently maintained or necessary for the Company or any of the Company Subsidiaries to operate their respective businesses as presently conducted in compliance with all applicable Laws.

"<u>Lien</u>" or "<u>Liens</u>" means any mortgage, pledge, security interest or lien, including any filing of a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased to the Company or any of the Company Subsidiaries under a lease which is not in the nature of a conditional sale or title retention agreement).

"<u>Lookback Date</u>" means January 1, 2023.

"<u>Losses</u>" means any losses, claims, damages, liabilities or expenses that are incurred in connection with any matter that is subject to indemnification under <u>Section</u> <u>6</u>.

"<u>Material Adverse Effect</u>" means (A) any event, development, circumstance, change or effect or series of events, developments, circumstances, effects or changes that, individually or in the aggregate is, or is reasonably foreseeable to be, materially adverse to the results of operations, condition (financial or otherwise), assets or liabilities of the Company and the Company Subsidiaries, taken as a whole; provided, however, that none of the following shall be considered when determining whether a Material Adverse Effect has occurred: (1) any general U.S. political or economic change or circumstance, (2) any circumstance, change or effect resulting from the announcement of the identity of the Purchasers or any action taken by the Purchasers or any of their respective Affiliates in breach of this Agreement or (3) any circumstance, change or effect resulting from any act of terrorism or war, unless, in the case of clauses (1) and (3) the impact on the Company or any Company Subsidiary is disproportionate relative to other similarly situated insurance businesses or (B) a material adverse change or effect on the ability of the Company or any of its Affiliates to perform timely its obligations under this Agreement or the other Transaction Documents.

"<u>Material Contract</u>" has the meaning set forth in <u>Section</u> <u>3K(ii)</u>.

"<u>Material Subsidiary</u>" means each of the Company Subsidiaries listed on <u>Appendix B</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in <u>Section</u> <u>7P</u>.

"<u>Operating Permit</u>" has the meaning set forth in <u>Section</u> <u>3</u><u>U(i)</u>.

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"<u>Ordinary Course of Business</u>" means the ordinary course of business of the Company or any Company Subsidiary, as applicable, consistent with past practice.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the Preamble.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes or other governmental charges and assessments not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which adequate accruals or reserves have been established by the Company or any of the Company Subsidiaries; (ii) mechanics', carriers', workers', repairers' and similar statutory Liens arising or incurred in the Ordinary Course of Business which are being contested in good faith and for which adequate accruals or reserves have been established; (iii) municipal bylaws, development agreements, restrictions or regulations, and zoning, entitlement, building, land use and planning restrictions and regulations imposed by Governmental Entities having jurisdiction over the Leased Real Property which are not violated by the current use of the Leased Real Property; (iv) in the case of Leased Real Property, any Liens to which the underlying fee or any other interest in the leased premises (or the land on which or the building in which the leased premises may be located) is subject, including rights of the landlord under the Lease and all superior, underlying and ground leases and renewals, extensions, amendments or substitutions thereof; (v) liens in respect of pledges or deposits under workers' compensation Laws or similar legislation, unemployment insurance or other types of social security, (vi) defects of title, easements, rights of way, covenants, restrictions and other similar Liens of record not materially affecting the use or enjoyment of the applicable property by the Company or applicable Company Subsidiary or otherwise materially interfering with the Ordinary Course of Business, (vii) liens incurred in the Ordinary Course of Business since the Latest Balance Sheet Date that are not material in amount and do not materially interfere with the present or reasonably contemplated use of the relevant asset, (viii) Liens created in connection with investment transactions, including broker liens, securities lending transactions and repurchase agreements executed in the Ordinary Course of Business and (ix) in the case of Intellectual Property, licenses granted in the Ordinary Course of Business.

"<u>Person</u>" means a natural person, an exempted company, an exempted limited partnership, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other type of entity, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Personal Data</u>" means all data relating to one or more individual(s) who can be reasonably identified, directly or indirectly, from such data or from such data together with other information which is in the possession of or reasonably accessible to the Company or any of the Company Subsidiaries.

"<u>Plan Assets Entity</u>" has the meaning set forth in <u>Section</u> <u>4G(v)</u>.

"<u>Prior Purchase Agreements</u>" means, collectively, that certain (i) Securities Purchase Agreement, dated as of December 28, 2021, by and among the Company and the purchasers party thereto; (ii) Securities Purchase Agreement, dated as of January 7, 2022, by and among the Company and the purchasers party thereto; (iii) Securities Purchase Agreement, dated

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as of January 31, 2022, by and among the Company and the purchasers party thereto; (iv) Securities Purchase Agreement, dated as of March 30, 2022, by and among the Company and the purchasers party thereto; and (v) Securities Purchase Agreement by and among the Company and the purchasers party thereto, dated December 28, 2022.

"<u>Proceedings</u>" has the meaning set forth in <u>Section</u> <u>3</u><u>M</u>.

"<u>Purchasers</u>" has the meaning set forth in the Preamble.

"<u>Purchaser Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>6B(i)</u>.

"<u>Registered Intellectual Property</u>" means all Intellectual Property that is registered (or the subject of an application for registration) with any Governmental Entity (or, in the case of internet domain names, any authorized private registrar).

"<u>Reinsurance Agreement</u>" has the meaning set forth in <u>Section</u> <u>3</u><u>V</u>.

"<u>Reinsurance Subsidiary</u>" means Accelerant Re Ltd., a Cayman Islands exempted company limited by shares.

"<u>Reserves</u>" means the aggregate statutory actuarial reserves and other actuarial amounts held in respect of the Insurance Contracts.

"<u>SAP</u>" means, to the extent applicable, the statutory accounting principles and practices prescribed by Governmental Entities with which certain members of the Company Group file annual statements.

"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager or managing member (in the case of a limited liability company) or general partner (in the case of a partnership).

"<u>Survival Date</u>" has the meaning set forth in <u>Section</u> <u>6A</u>.

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"<u>Tax</u>" (and, with correlative meaning, "<u>Taxes</u>") means any net income, capital gains, gross income, gross receipts, net receipts, sales, use, transfer, ad valorem, value added, franchise, profits, license, capital, withholding, payroll or other employment, estimated, goods and services, severance, excise, stamp, registration, recording, occupation, premium, personal property, real property, social security, alternative or add-on, windfall profits or other tax or customs duties or amount imposed by (or otherwise payable to) any Governmental Entity, together with any interest, penalties and other additions to tax assessed, imposed, or otherwise due under applicable Laws with respect to taxes.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and any amendments, in each case if required to be submitted to a Governmental Entity.

"<u>Transaction Documents</u>" means this Agreement, the A&R Memorandum and Articles of Association, the A&R Shareholders Agreement and any other agreement, document, instrument or certificate contemplated by this Agreement or to be executed in connection with the consummation of the transactions contemplated by this Agreement.

Section 6. <u>Indemnification</u><u>.</u><u> </u>

6A. <u>Survival of Representations and Warranties</u>. The representations and warranties of the Parties contained in <u>Section</u> <u>3</u> and <u>Section</u> <u>4</u> of this Agreement shall survive the Closing until the date that is 18 months after the Closing Date; provided that the Company Fundamental Representations shall survive the Closing until the date that is 60 days following the expiration of the relevant statute of limitations. The covenants and other agreements of the Parties contained in this Agreement that contemplate performance after the Closing shall survive the Closing until they are otherwise fully performed, waived or terminated, whether by their express terms or as a matter of applicable Law. The date upon which any representation, warranty, covenant or other agreement contained herein shall terminate is referred to as the "<u>Survival Date</u>." Notwithstanding the foregoing, if an Indemnified Person delivers to the Indemnifying Party an Indemnification Notice based upon a breach of any covenant, agreement, representation or warranty in accordance with <u>Section</u> <u>6D</u> before the applicable Survival Date, then such covenant, agreement, representation or warranty shall survive until, and only for purposes of, the resolution of the matter covered by such Indemnification Notice.

6B. <u>Indemnification Generally</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnification by the Company in Favor of the Purchasers</u>. The Company agrees to indemnify, defend and hold harmless each Purchaser, such Purchaser's Affiliates and each of its and their respective directors, partners, managers, officers, employees and agents (each, a "<u>Purchaser Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of the Company contained in <u>Section</u> <u>3</u> or (b) the breach or non-performance of any agreement or covenant of the Company contained in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnification by the Purchasers in Favor of the Company</u>. Each Purchaser (severally and not jointly) agrees to indemnify, defend and hold harmless the Company, the Company's Affiliates and each of its and their respective directors, managers, officers, employees and agents (each, a "<u>Company Indemnitee</u>") for any and all Losses they may suffer, sustain or incur arising from, in connection with or as a result of: (a) the inaccuracy or breach of any representation or warranty of such Purchaser contained in <u>Section</u> <u>4</u> or (b) the breach or non-performance of any agreement or covenant of such Purchaser contained in this Agreement.

6C. <u>Limitations on Indemnification</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Basket</u>. With respect to any Purchaser, the Purchaser Indemnitees associated with such Purchaser shall not have the right to be indemnified pursuant to <u>Section</u> <u>6B(i)</u><u>(a)</u> unless and until such Purchaser Indemnitees shall have incurred on a cumulative basis aggregate Losses of at least 1% of the portion of Closing Payment attributable to such Purchaser on <u>Appendix A</u> (the "<u>Basket</u>"), in which event the right to be indemnified shall apply only to the amount of Losses in excess of the Basket; <u>provided</u>, <u>however</u>, that the Basket shall not apply to claims based on Fraud or a breach of a Company Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Indemnity Caps</u>. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)</u><u>(a)</u> shall not exceed, in the aggregate, 10% of the Closing Payment and the sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B(i)</u><u>(a)</u> shall not exceed, with respect to the Purchaser Indemnitees associated with any Purchaser, in the aggregate, 10% of the portion of the Closing Payment attributable to such Purchaser on <u>Appendix A</u>; <u>provided</u>, <u>however</u>, that the limitations in this sentence shall not apply to any claim based on Fraud or breach of a Company Fundamental Representation. The sum of all Losses pursuant to which indemnification is payable by the Company pursuant to <u>Section</u> <u>6B</u> shall not exceed, in the aggregate, the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Knowledge Savings</u>. The representations, warranties and covenants of the Company, and Purchasers' rights to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of any Purchaser (including by any of its advisors, consultants or representatives) or by reason of the fact that any Purchaser or any of such advisors, consultants or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate. The Company acknowledges that, regardless of any investigation or due diligence inquiry conducted by or on behalf of any Purchaser, and regardless of the results of any such investigation or inquiry, the Purchasers have entered into this Agreement in express reliance upon the representations and warranties of the Company made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Damages Exclusions</u>. The Parties expressly acknowledge and agree that there shall be no indemnification by an Indemnifying Party for any (a) special, (b) punitive, (c) exemplary or (d) other damages that are not the natural, probable and reasonably foreseeable result of the act or event giving rise to the Loss, other than to the extent any damages referenced in the foregoing clauses (a) through (d) are paid or payable to a third party claimant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Duplication of Recovery</u>. Any Loss under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to the Loss constituting a breach of more than one representation, warranty, covenant or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of indemnification under this <u>Article 6</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or similar qualification, and without regard to any qualification or requirement that a matter be or not be "reasonably expected" to occur, contained in or otherwise applicable to such representation or warranty.

6D. <u>Indemnification Procedures</u><u>.</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Indemnified Person shall promptly (and, in any event, within 30 days of a third party claim) notify the applicable Indemnifying Party in writing of any pending or threatened claim or demand that the Indemnified Person has determined would reasonably be expected to give rise to such right of indemnification (including a pending or threatened claim or demand asserted by a third party against the Indemnified Person), specifying in reasonable detail the nature and basis of such claim and a reasonable estimate of the amount thereof, to the extent known (such notice, an "<u>Indemnification Notice</u>"); provided, however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this <u>Article 6</u> except to the extent the Indemnifying Party is materially prejudiced by such failure; provided further that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of the applicable Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon receipt of an Indemnification Notice, the Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle the matter described in the applicable Indemnification Notice, it shall promptly, and in no event later than 10 days after receipt of the Indemnification Notice, notify the Indemnified Person of its intention to do so, and the Indemnified Person shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Person's possession or control. Such cooperation of the Indemnified Person shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Person of its intent to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Person in connection with any defense or settlement of such asserted liability; <u>provided</u>, <u>however</u>, that the Indemnified Person shall be entitled (a) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (b) if (1) the Indemnifying Party has, within 10 Business Days of receipt of an Indemnification Notice involving a third party claim (other than a claim by a Governmental Entity with respect to Taxes) failed (x) to assume the defense or employ counsel or (y) to notify the Indemnified Person of such assumption or (2) if the defendants in any such action include both the Indemnified Person and the Indemnifying Party and counsel to the Indemnified Person shall have concluded that

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there may be reasonable defenses available to the Indemnified Person that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Person reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Person shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Person, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Person.

6E. <u>Tax Treatment</u>. Any payment in respect of indemnification pursuant to this <u>Section</u> <u>6</u> shall be treated as an adjustment to the Closing Payment for U.S. federal and applicable state, local and non-U.S. Tax purposes to the extent permitted by Law.

6F. <u>Exclusive Remedy</u>. The rights of the Purchaser Indemnitees under this <u>Section</u> <u>6</u> shall be the sole and exclusive remedies of the Purchasers and the other Purchaser Indemnitees with respect to claims under this Agreement or otherwise relating to the transactions that are the subject of this Agreement.

Section 7. <u>Covenants;</u><u> </u><u>Miscellaneous Provisions</u><u>.</u><u> </u>

7A. <u>Press Release and Announcements</u>. Unless required by Law (in which case the Company and any other applicable Purchaser agree to consult with each other prior to any such disclosure as to the form and content of such disclosure), no press releases or other releases of information related to this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby (i) will be issued or released without the prior written consent of the Company or (ii) will expressly identify any Party (or any of its Affiliates) by name without such Party's prior written consent; provided, that each Party shall be permitted to disclose information related to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (a) to such Party's (or to such Party's Affiliates') advisors, employees, insurers, officers, directors, limited partners, equity owners, prospective investors, financing sources, accountants and consultants so long as such Persons are apprised of the confidential nature thereof, and (b) in response to a routine request by a regulatory or self-regulatory authority, or in connection with a routine audit or examination by a bank examiner or auditor.

7B. <u>Fees and Expenses.</u> The Company shall pay, in accordance with instructions delivered in writing to the Company by the Barings Purchasers, the reasonable out-of-pocket expenses of Debevoise & Plimpton LLP, outside counsel retained by the Barings Purchasers, in an amount equal to $50,000 in the aggregate, in connection with the negotiation, documentation and consummation of the transactions contemplated by this Agreement. By offset against each of the Barings Purchasers' respective "purchase price" set forth opposite its name on <u>Appendix A</u>, at the Initial Closing, the Company shall pay each Barings Purchaser a non-refundable fee in an amount equal to such Barings Purchaser's respective "purchase price" set

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forth opposite its name on Appendix A *divided by* the aggregate "purchase price" set forth opposite of the names of the Barings Purchasers on <u>Appendix A</u> *multiplied by* $1,400,000 (the "<u>Lead Investor Closing Fee</u>") in consideration for making its investment hereunder. As a result of the foregoing, the Company and the Barings Purchasers agree that each of the Barings Purchasers will be treated as having paid to the Company the full "purchase price" set forth opposite its name on <u>Appendix A</u> notwithstanding that each of the Barings Purchasers will actually only pay the Company an amount equal to the full "purchase price" set forth opposite its name on Appendix A minus its applicable portion of the Lead Investor Closing Fee.

7C. <u>Issuance of Warrants</u>. On the second anniversary of the Initial Closing Date, if any of the Class C Convertible Preference Shares or Class C-1 Convertible Preference Shares remain outstanding, the Company shall issue warrants to each Purchaser in the form attached hereto as Exhibit C (the "<u>Warrants</u>") entitling each such Purchaser to purchase from the Company its pro rata portion (based on ownership of Class C Convertible Preference Shares and Class C-1 Convertible Preference Shares) of (i) 42,902 Common Shares with an exercise price based on a $3.0 billion equity valuation for the Company and (ii) 15,429 Common Shares with an exercise price based on a $6.0 billion equity valuation for the Company, and, in each case, subject to the other terms and conditions set forth in each such Warrant. In the event that, between the Initial Closing Date and the second anniversary of the Initial Closing Date, the outstanding Common Shares are subdivided (by share split, by payment of a share dividend, a bonus issue or otherwise) into a greater number of Common Shares, then the number of Common Shares purchasable pursuant to the Warrants shall be proportionately increased. In the event that, between the Initial Closing Date and the second anniversary of the Initial Closing Date, the outstanding Common Shares are consolidated (by reclassification or otherwise) into a lesser number of Common Shares, then the number of Common Shares purchasable pursuant to the Warrants shall be proportionately increased.

7D. <u>Consent to Amendments</u>. This Agreement shall not be amended, modified or supplemented except by an instrument in writing specifically designated as an amendment hereto and executed by each of the Parties hereto.

7E. <u>Successors and Assigns</u>. This Agreement and all of the covenants and agreements contained herein and all of the rights, interests and obligations hereunder, by or on behalf of any of the Parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties hereto whether so expressed or not. Notwithstanding the foregoing, neither this Agreement nor any of the covenants and agreements herein or rights, interests or obligations hereunder may be assigned or delegated by any Purchaser without the prior written consent of the Company.

7F. <u>Severability</u>. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable Law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement and such court will replace such

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illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

7G. <u>Counterparts</u>. This Agreement may be executed simultaneously in counterparts (and such counterparts may be delivered by means of facsimile or electronic transmission), any one of which need not contain the signatures of more than one Party, and each counterpart shall be deemed an original, but all such counterparts taken together shall constitute one and the same Agreement.

7H. <u>Descriptive Headings; Interpretation</u>. The headings and captions used in this Agreement and the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word "including" herein shall mean "including without limitation." The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. Any reference in this Agreement to a document or other item of information having been "made available" means such document or other item of information was provided or made available to each Purchaser or its representatives in the electronic data room to which such Purchaser and its representatives have been provided access in connection herewith. Any reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to time. Any reference to any statute includes reference to such statute as amended or modified from time to time and includes any effecting rules or regulations promulgated thereunder. To the extent that any threshold in <u>Section</u> <u>3</u> is stated in United States dollars but is used in reference to an asset that is denominated in another currency (*e.g.*, material contracts with payment obligations stated in Euros or Sterling), the Parties intend to apply the same exchange rate, with respect to any such currency, as used in the December 31, 2023 Financial Statements.

7I. <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules, and the other Transaction Documents contain the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way. A disclosure made in a Disclosure Schedule in respect of any representation is deemed disclosed and incorporated by reference in any other Disclosure Schedule as though fully set forth in such Disclosure Schedule for which applicability of such disclosure is reasonably apparent on its face.

7J. <u>No Third-Party Beneficiaries</u>. Except for <u>Section</u> <u>6</u> (with respect to the Purchaser Indemnitees and the Company Indemnitees) and <u>Section</u> <u>7P</u> (with respect to the Non-Recourse Parties), this Agreement is for the sole benefit of the Parties and their successors and

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permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and permitted assigns, any legal or equitable rights hereunder.

7K. <u>Governing Law</u>. All issues and questions concerning the construction, validity, negotiation, performance, enforcement and interpretation of this Agreement (whether in contract or tort or otherwise) and the Schedules and Exhibits hereto shall be governed by, and construed in accordance with, the Laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal Law of the State of New York shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

7L. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt.<u> </u>

All communications to any Purchaser shall be sent to the addresses set forth therefor on <u>Appendix A</u>.

All communications to the Company shall be sent to:

Accelerant Holdings

PO Box 309

Ugland House, Grand Cayman, KY1-1104

Cayman Islands

Attention: Nancy Hasley

Group General Counsel

With a copy (which shall not constitute notice) to:

Sidley Austin LLP

One South Dearborn

Chicago, IL 60603

Attention: Anthony J. Ribaudo

Facsimile: (312) 853-7036

Email: aribaudo@sidley.com

and

Sidley Austin LLP

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2021 McKinney Avenue

Dallas, TX 75201

Attention: Ryan M. Scofield

Facsimile: (214) 981-3400

Email: rscofield@sidley.com

7M. <u>No</u> <u>Strict</u> <u>Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or 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 of the provisions of this Agreement.

7N. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS <u>SECTION 7M</u>.

7O. <u>Submission to Jurisdiction</u>. The Parties agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal court located in New York, New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

7P. <u>Further Assurances</u>. Following the Closing, each Party shall deliver to the other Parties such further information and documents and shall execute and deliver to the other Parties such further instruments as any other Party shall reasonably request to confirm the transactions provided for in this Agreement or any other Transaction Document to accomplish the purpose of this Agreement or any other Transaction Document or to assure to the other Parties the benefits of this Agreement or any other Transaction Document.

7Q. <u>No Recourse</u>. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this

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Agreement or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Parties. To the fullest extent permitted by Law, no Person other than the Company or the Purchasers, including no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative thereof, nor any past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, Affiliate, vendor, service provider, agent, attorney or representative of any of the foregoing (the "<u>Non-Recourse Parties</u>") shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach, and, to the maximum extent permitted by Law, each of the Parties hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Non-Recourse Party.

7R. <u>Updates to Disclosure Schedules</u>. The Company may, prior to and in connection with any subsequent Closing occurring pursuant to <u>Section</u> <u>1B</u>, amend the Disclosure Schedules to reflect events that occur after the date of this Agreement and prior to such subsequent Closing; *provided*, that such updates to the Disclosure Schedules only be effective for purposes of any Closing occurring at or after such updates are made.

\* \* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement on the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **ACCELERANT HOLDINGS,** | **ACCELERANT HOLDINGS,** |
| a Cayman Islands Exempted Company | a Cayman Islands Exempted Company |
| By: | /s/ Jeff Radke |
|  | Name: Jeff Radke |
|  | Title: Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **<u>PURCHASERS</u>** | **<u>PURCHASERS</u>** |
| **BARINGS BDC, INC.** | **BARINGS BDC, INC.** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS CAPITAL INVESTMENT CORPORATION** | **BARINGS CAPITAL INVESTMENT CORPORATION** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS PRIVATE CREDIT CORPORATION** | **BARINGS PRIVATE CREDIT CORPORATION** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT FUND 4 (DELAWARE), L.P.** | **BARINGS GLOBAL SPECIAL SITUATIONS CREDIT FUND 4 (DELAWARE), L.P.** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **BARINGS CAPITAL SOLUTIONS PERPETUAL (LUX) SERIES LLC – SERIES A** | **BARINGS CAPITAL SOLUTIONS PERPETUAL (LUX) SERIES LLC – SERIES A** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS CAPITAL SOLUTIONS PERPETUAL FUND (CA), L.P.** | **BARINGS CAPITAL SOLUTIONS PERPETUAL FUND (CA), L.P.** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS FINANCE LLC.** | **BARINGS FINANCE LLC.** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |
| **BARINGS SPDF 1 SERIES LLC – SERIES A** | **BARINGS SPDF 1 SERIES LLC – SERIES A** |
| **By: Barings LLC, as Investment Manager** | **By: Barings LLC, as Investment Manager** |
| By: | /s/ Michael Searles |
|  | Name: Michael Searles |
|  | Title: Managing Director |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **HAWK TRAIL, LLC** | **HAWK TRAIL, LLC** |
| By: | /s/ Eddie Vonnahme |
|  | Name: Eddie Vonnahme |
|  | Title: Portfolio Manager, Alternative |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **CELF SPV LLC** | **CELF SPV LLC** |
| By: | /s/ Stephen Nesbitt |
|  | Name: Stephen Nesbitt |
|  | Title: President |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **ACP ACCELERANT CO-INVEST, LLC** | **ACP ACCELERANT CO-INVEST, LLC** |
| By: ACP Insurance Management, LLC Its:<br> Managing Member | By: ACP Insurance Management, LLC Its:<br> Managing Member |
| By: | /s/ Keoni Schwartz |
|  | Name: Keoni Schwartz |
|  | Title: Managing Member |

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[Signature Page to Securities Purchase Agreement]

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| | |
|:---|:---|
| **MW XO DIGITAL FINANCE FUND HOLDCO LTD.** | **MW XO DIGITAL FINANCE FUND HOLDCO LTD.** |
| By: | /s/ Claire Musgrave |
|  | Name: Claire Musgrave |
|  | Title: Authorized Signatory |
| By: | /s/ Des Anderson |
|  | Name: Des Anderson |
|  | Title: Authorized Signatory |

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[Signature Page to Securities Purchase Agreement]

------

---

| | |
|:---|:---|
| **STS MASTER FUND, LTD.** | **STS MASTER FUND, LTD.** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: Director |
| **DEER PARK 1850 FUND, LP** | **DEER PARK 1850 FUND, LP** |
| By: | /s/ Brad Craig |
|  | Name: Brad Craig |
|  | Title: Chief Operating Officer |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ Nancy Hasley |
| Nancy Hasley |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ Ryan Schiller |
| Ryan Schiller |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ Frank O'Neill |
| Frank O'Neill |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ Chris Lee-Smith |
| Chris Lee-Smith |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ David Gronski |
| David Gronski |

---

[Signature Page to Securities Purchase Agreement]

------

---

| |
|:---|
| /s/ Aaron Brinkman |
| Aaron Brinkman |

---

------

---

| |
|:---|
| /s/ Carlos Sierra |
| Carlos Sierra |

---

------

---

| |
|:---|
| /s/ Carolyn Johnson |
| Carolyn Johnson |

---

------

---

| |
|:---|
| /s/ Chelsea Perkins |
| Chelsea Perkins |

---

------

---

| |
|:---|
| /s/ Chris Hobbs |
| Chris Hobbs |

---

------

---

| |
|:---|
| /s/ Aaron Brinkman |
| Aaron Brinkman |

---

------

---

| | |
|:---|:---|
| **Dhiren P. Jhaveri 2021 Irrevocable Trust** | **Dhiren P. Jhaveri 2021 Irrevocable Trust** |
| By: | /s/ Thomas Majewski |
|  | Name: Thomas Majewski |
|  | Title: Authorized Signatory |

---

------

---

| |
|:---|
| /s/ Duncan Cottam |
| Duncan Cottam |

---

------

---

| |
|:---|
| /s/ Gary Brown |
| Gary Brown |

---

------

---

| |
|:---|
| /s/ Kevin Hovi |
| Kevin Hovi |

---

------

---

| |
|:---|
| /s/ Mike McAuliffe |
| Mike McAuliffe |

---

------

---

| |
|:---|
| /s/ Peter Blanc |
| Peter Blanc |

---

------

---

| | |
|:---|:---|
| **Thinking Operations Limited** | **Thinking Operations Limited** |
| By: | /s/ Michael Gould |
|  | Name: Michael Gould |
|  | Title: Director |

---

------

---

| |
|:---|
| /s/ William G. Johnson III |
| William G. Johnson III |

---

## Exhibit 10.22

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.22** 

***EXECUTION VERSION***

**DATED 20<sup>TH</sup> April 2021** 

**MERCER GLOBAL INVESTMENTS EUROPE LIMITED** 

**AND** 

**ACCELERANT ISURANCE EUROPE S.A.** 

**INVESTMENT** 

**MANAGEMENT** 

**AGREEMENT** 

*Investment Management Agreement Ireland — Aug 2020* 

------

**CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page No** |
| 1. | INTERPRETATION | 1 |
| 2. | REGULATORY AND CORPORATE STATUS | 4 |
| 3. | APPOINTMENT AND ACCEPTANCE OF MANAGER | 4 |
| 4. | DUTIES OF THE MANAGER | 5 |
| 5. | DELEGATION AND USE OF AGENTS | 6 |
| 6. | BANKING AND CUSTODY | 6 |
| 7. | STATEMENTS AND REPORTS | 7 |
| 8. | DEALING | 7 |
| 9. | MATERIAL INTERESTS AND DISCLOSURES | 8 |
| 10. | FEES AND CHARGES | 9 |
| 11. | LIABILITY AND INDEMNITY | 9 |
| 12. | CLIENT'S REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS | 11 |
| 13. | INSTRUCTIONS AND OTHER COMMUNICATIONS | 13 |
| 14. | AMENDMENTS | 15 |
| 15. | COMPLAINTS | 15 |
| 16. | TERMINATION OF AGREEMENT | 15 |
| 17. | CONFIDENTIALITY AND DISCLOSURE; DATA PROTECTION | 16 |
| 18. | ASSIGNMENT AND NOVATION | 17 |
| 19. | GOVERNING LAW AND DISPUTE RESOLUTION | 17 |
| 20. | FORCE MAJEURE | 18 |
| 21. | PROVISION OF THIRD PARTY INFORMATION | 18 |
| 22. | ADDITIONAL PROVISIONS | 18 |
| 23. | RISK WARNINGS AND NOTIFICATIONS | 19 |
| 24. | INSURANCE LEGISLATION | 19 |
|  APPENDIX A | APPENDIX A | 21 |
|  APPENDIX B | APPENDIX B | 24 |
|  APPENDIX C | APPENDIX C | 25 |
|  APPENDIX D | APPENDIX D | 29 |

---

i

------

**THIS AGREEMENT is made on the 20th day of April 2021** 

**BETWEEN** 

(1) **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** having its registered office at [\*\*\*] (hereafter called the
"Manager");

AND

(2) **ACCELERANT INSURANCE EUROPE S.A.** (the "Client"), having its registered office at Bastion
Tower, Level 20, Place du Champ de Mars 5, Brussels, 1050, Belgium.

WHEREAS, the Client is an insurance company within the meaning of the Belgian law of 13 March 2016 on the status and supervision of insurance and reinsurance companies and has authority to appoint managers to manage the assets and to provide certain services, as described herein;

WHEREAS, the Client has determined to appoint the Manager to manage such assets as are referred to in the Application Form and to provide certain services, in accordance with the provisions hereof;

WHEREAS, the Manager has agreed to accept such responsibility in accordance with the provisions hereof; and

WHEREAS, the Client will also execute the Application Form for shares or units in the Mercer Funds, as set out in Appendix A.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

**1.** **INTERPRETATION.** 

1.1 Definitions

In this Agreement, including the recitals above, except where the context otherwise requires, the following terms have the meaning assigned to them:

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| | |
|:---|:---|
| **"Account"** | such portfolio or portfolios of securities, and/or other assets managed by the Manager under this Agreement and invested in share classes of the Mercer Funds in accordance with the Application Form and the Investment Guidelines; |
| **"Affiliate"** | any direct or indirect subsidiary of the Manager or any direct or indirect subsidiary of any direct or indirect holding company of the Manager; |
| **"Application Form"** | the application form set forth in Appendix A hereto in respect of the Mercer Funds; |

---

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| | |
|:---|:---|
| **"Business Day"** | a day which is a bank business day in Ireland; |
| **"Central Bank"** | the Central Bank of Ireland or such other person or body appointed or nominated to perform the functions of a financial regulator from time to time; |
| **"Claim"** | any claim, action, proceeding, investigation, demand, judgment, or award which may be brought, made, threatened or alleged; |
| **"Effective Date"** | the later of the date on which (i) the Manager receives notification from the Mercer Funds of the satisfactory receipt and acceptane of the Client's subscription to the Mercer Funds; and (ii) the parties have executed this Agreement; |
| **"Ex-Ante Costs and Charges"** | means the MIFID costs and charges disclosure requirements, which the Manager will provide in good time before provision of the relevant service and also pursuant to Appendix C; |
| **"Information"** | any information supplied to the Manager by the Client (or on behalf of the Client) from time to time; |
| **"Investment Guidelines"** | the investment guidelines set forth in Appendix B hereto and any investment restrictions set forth therein, as may be amended from time to time in writing between the parties; |
| **"Losses"** | any losses, costs, charges, damages, fines, compensation or expenses (including legal fees properly incurred); |
| **"Mercer Funds"** | any collective investment scheme, including investment companies, common contractual funds, unit trusts and limited partnerships, for which Mercer Global Investments Europe Limited or any Affiliate serves as investment manager, including, without limitation, MGI Funds plc, Mercer UCITS Common Contractual Fund, Mercer QIF Fund plc, Mercer PIF Fund plc, Mercer QIF CCF and any sub-fund thereof; |
| **"MiFID"** | Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 and Commission Regulation (EU) No 600/2014 of 15 May 2014 and any applicable implementing EU legislation, delegated acts (directives or regulations), technical standards and including without limitation, and any and all Central Bank regulations, notices, guidance notes and codes of conduct issued thereunder. |

---

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| | |
|:---|:---|
| **"Prospectus"** | any prospectus issued by the Mercer Funds, any Supplement designed to be read and construed together with and to form part of a prospectus and the Mercer Funds' most recent annual report and accounts (if issued) or, if more recent, its interim report and accounts; |
| **"Supplement"** | any supplement issued by the Mercer Funds in relation to a sub-fund of a Mercer Fund; |
| **"Trading Venue"** | a regulated market, a multi-lateral trading facility or an organised trading facility (as those terms are defined under MiFlD); and |
| **"Warranties"** | the warranties as set forth in clause 12 hereof. |

---

1.2 Further Definitions

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any reference to the singular includes reference to the plural and vice versa and reference to the masculine
gender includes reference to the feminine and neuter genders and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unless otherwise expressly stated to the contrary herein, any reference to any clause, sub-clause, paragraph or sub-paragraph (as the case may be) shall be deemed to be a reference to the relevant clause, sub-clause, paragraph or sub¬paragraph (as the case may be) of or to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any reference to persons includes reference to any legal person and to any body corporate, unincorporated
association, partnership, limited partnership, trust, unit trust, mutual fund or other collective investment scheme and the manager or trustee of any such collective investment scheme;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except where otherwise indicated, words or phrases defined in MiFID shall have the same meanings in this
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the headings are inserted for convenience of reference only and shall not in any way form part of or affect or
be taken into account in the construction or interpretation of any provision of this Agreement or he Schedules hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) words such as "hereunder", "hereto", "hereof' and "herein" and other
words commencing with "here" shall, unless otherwise expressly stated to the contrary herein, refer to the particular clause, sub-clause, paragraph, sub-paragraph or Appendix of or to this Agreement or, as the context may require, to the whole of this Agreement.

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1.3 Unless the context otherwise requires, any reference to a statute or a statutory provision shall include such
statute or provision as from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of
applying to any transactions entered into hereunder. Any reference to a statute or a statutory provision shall also include any subordinate legislation made from time to time under that statute or provision.

**2.** **REGULATORY AND CORPORATE STATUS** 

2.1 The Manager is a private limited liability company incorporated in Ireland and authorised and regulated by the
Central Bank pursuant to MiFID. The Manager also serves as investment manager of the Mercer Funds.

2.2 For the purposes of MiFID and based on information obtained in respect of the Client, the Manager has
categorised the Client as a professional client (pursuant to MiFID) in relation to the services provided under this Agreement. The Client acknowledges that it is the Client's sole responsibility to keep the Manager informed about any change to
the Client's circumstances which could affect the Manager's categorisation of the Client as a professional client. The Manager acknowledges that the Client may request treatment as a retail client, however, the Manager retains the right
not to act as discretionary investment manager for the Client in the event the Client requests such categorisation.

2.3 In order to comply with these obligations, the Manager is required to obtain as much investment related
information from the Client as is necessary to enable it to act in the Client's best interests by making suitable investments on behalf of the Client. The information required will include details of the Client's investment objectives
including risk tolerance, ability to bear any related investment risks (including losses) and financial resources. As the Client is a professional client, the Manager is entitled to assume that the Client has the necessary level of investment
experience and knowledge in order to understand the risks involved in the management of the Account.

2.4 If the Client fails, in the opinion of the Manager, to provide adequate information, the Manager may decline to
provide the discretionary investment management services under this Agreement. The Client or its designated agent shall be responsible for ensuring that the information provided to the Manager is kept accurate, complete and up to date so as to
enable the Manager to assess suitability for the Client.

2.5 A copy of the Manager's corporate policies relating to the services provided in accordance with this
Agreement is available on https://www.investment-solutions.mercer.com/.

**3.** **APPOINTMENT AND ACCEPTANCE OF MANAGER** 

3.1 The Client hereby appoints the Manager, from the Effective Date, to manage on a discretionary basis the
investment of the assets of the Account according to the Investment Guidelines and to provide such services as described in this Agreement and the Manager hereby accepts such appointment and agrees to assume the obligations set forth and described
herein and to perform the said obligations with the skill, care, due diligence and judgment expected of a professional investment manager and always subject to its obligations under applicable law and regulations.

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3.2 The responsibilities and duties of the Manager under this Agreement are limited to the assets now or hereafter
contained in the Account. The Manager shall have no responsibility or authority with respect to any of the Client's assets that are not part of the Account. For the avoidance of doubt, unless agreed pursuant to a separate agreement, the Manager
will have no responsibility under this Agreement for transitioning the Client's assets prior to the Client's investment into the Mercer Funds.

3.3 Except as expressly provided in this Agreement or authorised by the Client in writing, the Manager is not
acting as an agent of the Client and has no authority to represent, or act for or on behalf of, the Client.

**4.** **DUTIES OF THE MANAGER** 

4.1 The Client acknowledges and agrees that the assets of the Account will be invested in any one or more Mercer
Funds and in accordance with the Investment Guidelines. The Client further acknowledges and agrees that the Manager will from time to time rebalance the holdings of shares or units in the Mercer Funds in accordance with the Investment Guidelines,
which may be amended from time to time by agreement in writing between the parties. Accordingly, to enable the Account to be invested in Mercer Funds, the Client shall execute the Application Form which, together with the terms of the Prospectus or
other offering memorandum of the relevant Mercer Funds and this agreement, sets out the terms upon which the Client agrees to be bound.

4.2 The Manager will manage the Account on a discretionary basis in accordance with the terms and conditions of
this Agreement including, without limitation, the Investment Guidelines and in accordance with all applicable laws, regulations and MiFID. Subject to the terms and conditions of this Agreement including, without limitation, the Investment
Guidelines, the Manager shall have full power and discretionary authority on behalf of and for the Client to buy, sell, retain, exchange or otherwise deal in shares or units of the Mercer Funds and otherwise act as the Manager judges appropriate in
relation to the management and investment of the Account. In particular the Client hereby expressly authorises the Manager to complete and sign on its behalf any subsequent dealing forms relating to subscriptions for, or redemptions in, Mercer
Funds.

4.3 The Manager may not procure the exercise of any voting rights attaching to the Account's holdings of
Mercer Funds except with the agreement or on the specific instructions of the Client but may count such holdings for the purpose of constituting a quorum at a general meeting of any Mercer Fund.

4.4 In addition to managing the Account, where requested by the Client, the Manager may provide other services
under this Agreement, to the Client, or as requested by the Client, to the Client's advisers for the benefit of the Client, in respect of the Account or in respect of the scheme or pool of investments of which the Account forms a part. The
Manager is entitled to levy charges, in addition to those specified in this Agreement, for such services. Any such charges will be agreed in advance in writing with the Client.

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**5.** **DELEGATION AND USE OF AGENTS** 

5.1 The Manager may delegate any of its functions or powers (including the powers to sub-delegate any such functions or powers) under this Agreement to an Affiliate and may provide information about the Client and the Account to any such Affiliate or the Affiliate's external third party
service provider(s). The Manager will give the Client prior written notice of any such delegation of a function to an Affiliate which involves the exercise of its discretionary investment management powers. The Manager will not, without the written
consent of the Client, delegate such powers to a third party which is not an Affiliate. The Manager's liability to the Client for all matters so delegated shall not be affected thereby.

5.2 The Manager (and any delegate under clause 5.1) may, where reasonable, employ agents (including Affiliates) to
perform any administrative, dealing or ancillary services required to enable the Manager to perform its services under this Agreement. The Manager will act in good faith and with reasonable skill and care in the selection, use and monitoring of such
agents. Unless otherwise agreed with the Client, the Manager will be responsible for the fees and charges of any agent which it employs under this clause 5.2.

**6.** **BANKING AND CUSTODY** 

6.1 The Manager will not hold client money under this Agreement (and accordingly the Central Bank's client
money rules will not apply) and the Client is responsible for all banking arrangements in respect of the Account. All payments due to the Client in respect of the Account's investments in Mercer Funds will only be made to the bank account held
in the name of the registered shareholder outlined in the Application Form. Requests for third party payments will be assessed on a case by case basis. Please see further information in the Application Form.

6.2 The Manager will not be responsible for safe custody matters or for the settlement of transactions and, in the
absence of notification to the contrary, shall be entitled to assume that all transactions are settled on the specified due dates.

6.3 The Client shall hold shares or units of the Mercer Funds directly and will be the shareholder on record and
will complete the Application Form. The Client or any third party on its behalf shall notify the Manager directly in advance of all cash flows into or out of the Account. Upon notice of such cash flows, the Manager shall instruct the Mercer
Funds' administrator, of all contributions and redemption amounts in respect of the Account's investments in the Mercer Funds. Instructions from the Manager relating to acquiring or disposing of investments in respect of the Account may
constitute the control of client assets under the Central Bank's rules and may therefore only be given in connection with the provision of services under this Agreement.

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**7.** **STATEMENTS AND REPORTS** 

7.1 Unless advised otherwise in writing by the Client, the Manager shall deliver to the Client quarterly
statements, in accordance with the requirements under MiFID, showing all investments of the Account, and such additional statements or reports, at such time or times, as the Client may reasonably request. Such written review may also include
performance reporting with respect to External Holdings, for which the Manager will provide such reporting on a best efforts basis and subject at all times to Clause 21 below. Such statement shall be provided not later than 25 business days
following the end of the period to which the statement relates. Such reports shall be reviewed by the Client and, if no written objections are received by the Manager within 90 days of the rendering thereof, the report shall be deemed approved by
the Client as to any matter reflected therein.

7.2 In addition to the statements and reports to be provided by the Manager to the Client pursuant to Clause 7.1
above, the Manager will provide a written review, at least quarterly, in accordance with the requirements under MiFID, of investment performance of the Account and the underlying asset classes versus appropriate benchmarks, peer portfolios and
indices. A representative of Manager will (where required by the Client) meet with the Client annually, and in addition and at no additional cost to Client, meet with the Client's Board of Directors or, as required by the Client, a subcommittee
thereof, quarterly , to provide a review, information and advice on developments in capital markets and other investment issues. Except as expressly set forth herein with regard to the management of the Account by the Manager, the Client retains all
discretionary authority and control with respect to the management and administration of the Client's assets, including the adoption of an appropriate investment strategy.

7.3 The Manager will inform the Client if the overall value of the Account, as evaluated at the beginning of each
reporting period, depreciates by 10% and thereafter at multiples of 10%, by the close of that Business Day or if such a depreciation occurs on a non-Business Day, the close of the next Business Day.

7.4 The Client agrees that the costs of any specific reports (except as provided in clause 7.2 above) prepared at
the request of the Client, be it for tax reporting reasons or otherwise, will incur an additional charge and will be borne by the Client.

**8.** **DEALING** 

8.1 The Client hereby confirms that it has read, understood and agrees to the Manager's best execution policy.
In particular, the Client agrees that the Manager may trade outside of a Trading Venue. In effecting transactions for the Account, the Manager will at all times comply with the obligations regarding best execution under MiFID and act in the best
interests of the Client. All transactions will be effected in accordance with the terms and conditions for dealing in shares or units of the Mercer Funds, and the Manager may take all such steps as may be required or permitted by such terms and
conditions. Specific instructions from the Client in relation to the execution of orders may prevent the Manager from following its best execution policy in relation to such orders in respect of the elements of execution covered by the instruction.

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8.2 Where the Client supplements the assets of the Account, the Manager shall only effect transactions in respect
of those assets after having been notified of the delivery date of those assets by the Client pursuant to clause 6.3 above.

**9.** **MATERIAL INTERESTS AND DISCLOSURES** 

9.1 The Manager or an Affiliate may without prior reference to the Client, effect transactions in which the Manager
or Affiliate has, directly or indirectly, a material interest or a relationship of any description with another party, which involves or may involve a potential conflict with the Manager's duty to the Client. Subject to compliance with
applicable law, neither the Manager nor any Affiliate shall be liable to account to the Client for any profit, commission or remuneration made or received from or by reason of such transactions or any connected transactions or to disclose the same
or the identity of any other client or counterparty involved in such transactions, nor will the Manager's fees, unless otherwise provided, be abated.

9.2 The Manager has and will maintain arrangements to prevent or manage any conflicts of interest that may be
identified within the Manager, between the Manager and the Client and between the Client and other clients of the Manager. The Manager has implemented a conflicts of interest policy in order to prevent or manage such situations and will abide by the
terms of that policy at all times. The Manager will disclose to the Client the general nature and/or source of conflicts of interest where there is a potential risk of damage to the Client's interest and where the Manager's arrangements to
prevent or manage effectively such conflicts of interest are not sufficient to prevent the Client from being disadvantaged. Mercer's Investments business is committed to ethical and transparent business practices. Mercer prevents and manages
its conflicts of interest in a manner that safeguards the interests of its clients. Mercer's conflict of interest disclosure statement for its Investments business, including examples of such conflicts of interest, can be found at https://www.
investment-solutions.mercer.com/. The Client is hereby aware of the potential conflicts that may arise in Mercer's Investments business and confirms that it has read and understood the conflicts of interest policy mentioned above.

9.3 None of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or
equitable duties which would prevent or hinder the Manager, or any Affiliate, in transactions with or for the Client, including dealing with other Affiliates and other customers, and generally effecting transactions as provided above, to which the
Client consents accordingly. The Client agrees that the Manager or an Affiliate may nevertheless deal with other Affiliates and other customers and generally effect transactions as above without prejudice to its duties to the Client under the
Agreement.

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**10.** **FEES AND CHARGES** 

10.1 The Manager's remuneration for its services shall be calculated and paid in accordance with Appendix C
(the "Fees"). The parties agree that in the event that the Client amends the Investment Guidelines or redeems its interests in the Mercer Funds, the parties may in good faith review the Fees to be paid to the Manager and may agree mutually
a new fee to be payable hereunder. The Fees payable to the Manager are exclusive of value added or any other similar tax. In the event that such tax becomes applicable to the Fees, the Client shall be responsible for the payment of such tax. The
Fees in respect of part of a period shall be pro-rated.

10.2 The Manager will be responsible for its expenses under this Agreement, including the fees and expenses of any
Affiliate to whom it may delegate its functions or powers hereunder.

10.3 The Client will be liable for any costs payable and properly incurred under this Agreement, including
reasonable transaction charges and levies, reasonable interest charges, transfer and registration fees and taxes or other fiscal liabilities that may be incurred in the purchase and sale of shares or units of the Mercer Funds. A description of such
charges and expenses is set forth in the Prospectus for the Mercer Funds.

10.4 Notwithstanding clause 10.3, there shall be no initial or conversion sales charges related to the
Account's investment in Mercer Funds under this Agreement. Mercer Funds usually pay their own annual management, custodian, and administrator fees and will generally bear their own expenses, as described in more detail in the Prospectus for the
Mercer Funds. Value Added Tax (or any foreign equivalent) is added to any such fees and expenses where applicable. Such fees (and other benefits) may be payable to the Manager or its Affiliates for services provided to the Mercer Funds.

10.5 The Manager may receive research material or services in return for direct payments by the Manager out of its
own resources.

**11.** **LIABILITY AND INDEMNITY** 

11.1 Neither the Manager nor its Affiliates or their respective directors, officers, employees or agents, will be
liable for any Losses incurred or suffered by the Client under this Agreement unless such Losses arise directly from the Manager's or an Affiliate's negligence, criminal act, fraud or willful default or that of its or their respective
directors, officers, employees, agents or delegates.

11.2 The Client shall hold harmless and indemnify the Manager and its Affiliates, and their respective directors,
officers, employees, and agents (each a "Mercer Indemnified Person"), fully and effectively against all Claims which are brought or established against such Mercer Indemnified Person and all Losses which such Mercer Indemnified Person
sustains or incurs, which arise as a result of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1 any person or entity claiming to be entitled to investments which form part of the Account at the time when the
Manager first assumed management of the Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2 the Client's own negligence, criminal act, fraud or willful default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3 any action properly taken by the Manager in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4 carrying out or relying on any instructions and any information provided or made available to the Manager by
the Client or any other agent of the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5 any material inaccuracy or material incompleteness of any of the Warranties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.6 any violation of applicable law by the Client.

11.3 None of the Manager, its Affiliates, nor any of their directors, officers, employees or agents shall be liable
for any special, indirect, incidental, punitive or consequential damages, direct or indirect loss of profits, opportunity goodwill or reputation, or any pure economic loss in connection with or arising out of this Agreement whether foreseeable,
known, foreseen or otherwise by the Manager.

11.4 None of the Client, Affiliates, nor any of their directors, officers, employees or agents shall be liable for
any special, indirect, punitive or consequential damages, direct or indirect loss of profits, opportunity goodwill or reputation, or any pure economic loss in connection with or arising out of this Agreement whether foreseeable, known, foreseen or
otherwise by the Client.

11.5 The Investment Guidelines shall not be breached as a result of any events or circumstances outside the
reasonable control of the Manager, including, but not limited to, changes in the price or value of assets in the Mercer Funds brought about solely through movements in the market, an inflow to or outflow from the Account or breaches arising during
an agreed transition period following an amendment of the Investment Guidelines or following an instruction of the Client. The Manager agrees to notify the Client where it identifies that any such events or circumstances have arisen as soon as
reasonably practicable in the circumstances (normally within 2 Business Days). Should such an event lead to a tolerance range being breached, the Manager will not notify the Client and instead will account for such in the next following review of
the Account in accordance with the Investment Guidelines.

11.6 Without limiting the generality of the foregoing, but subject to applicable law, the Manager shall not be
liable for any losses to the Account resulting from the disposition of any investment which shall have been made by a predecessor investment manager or by any other person authorised to invest assets of the Account, or for the retention thereof if
the Manager is unable to dispose of such investment or property because of any legal restrictions, or its unmarketable or illiquid nature, or if an orderly liquidation is impracticable under prevailing conditions.

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11.7 No representation warranty undertaking or assurance is given by the Manager as to the performance, returns,
increase in or retention of value or profitability of the Account (or any part of it) or the success of any investment strategy recommended or used by the Manager. Similarly, any benchmark or objective(s) specified in the Investment Guidelines are
intended as targets only and not as an assurance or guarantee of performance of the Account or any part of it.

11.8 Nothing in this Agreement shall exclude or restrict a party's liability for any criminal act, nor shall it
exclude or restrict a party's liability if such liability may not be excluded or restricted pursuant to applicable laws.

11.9 Nothing in this Agreement shall exclude or restrict any duty or liability which the Manager may have to the
Client under the regulatory system (as imposed by the Central Bank).

**12.** **CLIENT'S REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS** 

12.1 The Client represents and warrants to the Manager that all Information (including that set forth in the
Application Form) is true, correct and complete and the Client agrees to notify the Manager immediately it becomes aware that any such information is no longer accurate and complete in all respects.

12.2 The Client undertakes to the Manager that, during the term of this Agreement, it will forthwith disclose in
writing to the Manager any matter or thing which may arise or become known to the Client which is inconsistent in any respect with the Information or any of the Warranties given by the Client or which may render any of them misleading, inaccurate or
incomplete in any respect. The Client acknowledges that the Manager's responsibilities do not include independent verification of the Information or the Warranties.

12.3 The Client understands and agrees that the liquidation of the shares or units of a Mercer Fund comprised in the
Account by way of redemption may, in accordance with the terms of the Prospectus or other offering memorandum of the Mercer Fund, be subject to (a) the giving of a certain period of notice prior to a redemption day, (b) provisions which
restrict the percentage of shares or units in the Mercer Fund which may be redeemed on a particular redemption day and defer redemption requests received in excess of such percentage to the following redemption day and (c) the payment of a
redemption charge.

12.4 The Client has received a copy of the Prospectus, the Ex-Ante Costs and
Charges and the key investor information document ("KIID") (where applicable) of each of the Mercer Funds in existence at the date of this Agreement. Where the Client has given full discretion to the Manager to allocate assets of the
Account to any Mercer Fund, the Prospectus and KI ID (where applicable) for any new Mercer Fund invested in after the date of the Agreement will be available to the Client at https://investment-solutions.mercer.com/.

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12.5 The Client agrees that it will promptly, upon request, provide the Manager with such information or
documentation relating to it as the Manager may reasonably require, for disclosure to the Mercer Funds or its authorised agents.

12.6 The Client agrees that reports, analyses and other materials the Manager provides to the Client are solely for
the Client's internal use. They are not to be disclosed to any third party, including Affiliates, (other than the Client's legal advisers on a strictly need to know basis and who are bound by confidentiality obligations at least as
restrictive as those contained in this Agreement) without the Manager's prior written consent. If the Manager provides its consent to such disclosure, the Manager may stipulate terms regarding such provision or require the third party to enter
into a direct contractual relationship (such as a non-reliance letter) with the Manager. The Client will reimburse the Manager in respect of any Loss, of whatever kind and however incurred, as a result of the
Client's breach of this obligation. Any use of, or reliance upon, any reports, letters, information or advice the Manager provides to the Client by any third party, including Affiliates, will be at their exclusive risk. The Client agrees that
the Manager retains exclusive rights to the intellectual capital (such as methodologies, know how, models, tools, and any graphic or digitized representation of any of these) developed or possessed by the Manager prior to, or acquired during, the
performance of the services hereunder. The Client acknowledges that the investment adviser profiles, performance histories, and other information contained in the Manager's databases and reports are proprietary information of the Manager.

12.7 Notwithstanding Clause 12.6, upon request from the Client the Manager has agreed to provide certain reports
prepared on behalf of the Client directly to affiliates of the Client and Altamont Capital, in their capacity the Client's capital provider. The Client agrees that both the affiliates and Altamont Capital will be bound by confidentiality
obligations at least as restrictive as those contained in this Agreement. The Manager retains the right to require the Client's affiliates and/or Altamont Capital to enter into a direct contractual relationship with the Manager. Any use of, or
reliance upon such reports provided by the Manager to the affiliates and Altamont Capital shall be at their exclusive risk.

12.8 The Client agrees not to refer to the Manager in the press or for promotional purposes without the
Manager's prior written consent. The Manager agrees not to refer to the Client in the press or for promotional purposes without the Client's prior written consent. Notwithstanding the foregoing, the Manager shall be permitted to include
the Client in its representative client listing.

12.9 The Client undertakes not to deal, except through the Manager, with any of the assets of the Account, nor to
authorise anyone else to deal in any of them without first notifying the Manager of such intention or action.

12.10 The Client shall provide details of its tax position to the Manager in writing on the Effective Date, namely
whether it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10.1 non-lrish resident (and in such event will complete the information as
set out in Appendix A);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10.2 resident in the Republic of Ireland (and in such event will provide its tax identification number); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10.3 resident in the Republic of Ireland but tax exempt (and in such event will complete the information as set out
in Appendix B).

12.11 The Client shall remain responsible for the management of its affairs for tax and accounting purposes. The
Manager shall not provide the Client with tax advice or accounting advice or services.

12.12 The Client shall ensure that any restrictions to which it is subject relating to the Agreement or any
transaction contemplated by the Agreement and the level of risk to be reflected in the Manager's exercise of discretion (whether as a matter of legislation, (including the Belgian law of 13 March 2016 on the status and supervision of
insurance and reinsurance companies), its governing documentation, investment policies or otherwise), including its ability to bear losses and its risk tolerances, are contained in the Investment Guidelines and the Manager shall be entitled to
assume that no restrictions other than those contained in the Investment Guidelines apply.

12.13 The Client has read and understood the risk warnings set out at Appendix D to this Agreement and which provide
a description of the nature and risks of financial instruments including appropriate guidance on, and warnings of, the risks associated with investments in financial instruments or in respect of particular investment strategies.

12.14 The Client shall provide the Manager with such Information that is reasonably necessary for the Manager to
receive with a view to the proper discharge of its functions pursuant to this Agreement or which the Manager may reasonably request for such purpose or which is required by any competent authority.

12.15 The Client represents and warrants that it is duly incorporated / established and validly existing in
accordance with the laws of its jurisdiction of incorporation and registration.

12.16 The Client represents and warrants that it has full power and capacity to enter into this Agreement and to
perform all of its obligations hereunder.

**13.** **INSTRUCTIONS AND OTHER COMMUNICATIONS** 

13.1 Instructions in respect of this Agreement shall be given in accordance with the requirements set forth in this
clause 13. The Client may, from time to time, give instructions to the Manager directing the Manager to take, or refrain from taking, particular actions under this Agreement. The Manager shall acknowledge instructions by acting upon them unless the
Client is promptly advised that the Manager believes such action may not be practicable or might involve any party in a breach of any law, rule or regulation.

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13.2 The Manager and the Client may otherwise communicate in writing (by letter or by electronic means such as fax
or e-mail) or by telephone or website, except when it is required to communicate in writing by this Agreement. Any such notice or communication in writing may be delivered by hand, or sent by facsimile or by pre-paid first class post as appropriate to the registered office or principal place of business for the time being of the party to whom it is addressed or to such other address as may, from time to time be notified
in accordance with this clause 13. Notices given by hand or facsimile shall be deemed to have been given contemporaneously. Notices given by pre-paid first class post shall be deemed to have been given two
Business Days after posting. Evidence that the notice was properly addressed, stamped and put in the post shall be conclusive evidence of posting.

13.3 The Manager may rely and act on any instruction or communication which it reasonably believes it has received
from the authorised signatories of the Client as being authorised to instruct or communicate with the Manager in respect of the Account and, subject to this clause 13, by whatever means transmitted and, unless the Manager shall have received written
notice to the contrary, whether or not the authority of any such person shall have been terminated. The Manager and any delegates shall not be liable for any actions taken or omitted to be taken in good faith pursuant to any instruction or
communication (or any instruction or communication purporting to be such or believed to be such by any such entity or entities) received from the Client.

13.4 The Client acknowledges that instructions or communications conveyed by electronic methods such as facsimile or e-mail are not secure forms of communication and may accordingly give rise to higher risks of manipulation or attempted fraud. Facsimiles and e-mails may also be of poor
quality and be corrupted in transit and thus unclear, or indeed, may be lost in transit and not arrive at their destination. The Client agrees to indemnify the Manager and any delegates, from and against all losses, costs, actions, proceedings,
claims and demands which may be incurred by or brought or made against any such entity or entities, arising directly or indirectly from its or their having acted upon any such facsimile or e-mail communication(s) or (where so authorised by this clause 13) any such facsimile or e-mail instruction(s).

13.5 The Manager's and the Client's contact details are as stated in this Agreement or as separately
notified by the Client to the Manager for the purposes of this Agreement.

13.6 Telephone conversations and electronic communications between the Manager (including its Affiliates, delegates,
its duly appointed agents and any of their respective related or associated companies) and the Client may be recorded or monitored. The Client agrees that the Manager may deliver copies or transcripts of such recordings to any court or competent
authority. A copy of recordings relating to the handling of orders and transactions is available on request for a period of five (5) years (or, where requested by the Central Bank, for a period of up to seven (7) years) from the date when
the record is made.

13.7 In the interests of proper management and administration of the Account and in order to bring new products or
services of the Manager or its Affiliates to the attention of the Client, the Manager, its representatives or employees, may wish to call upon or communicate with the Client by telephone, email or personal visit or otherwise communicate with the
Client without express invitation. The Client consents to such communication.

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**14.** **AMENDMENTS** 

14.1 This Agreement, including the Appendices, may be amended at any time but only by the prior written agreement of
the parties, provided however that the Manager may amend this Agreement where it is required by applicable law or regulation by providing prior written notice to the Client (save where applicable law or regulation requires a more immediate
amendment).

**15.** **COMPLAINTS** 

15.1 All formal complaints should in the first instance be made in writing to the Manager at the address stated on
the first page of this Agreement and the complaint will then be dealt with in accordance with the Manager's complaints policy. A summary of the complaints policy is available on request.

**16.** **TERMINATION OF AGREEMENT** 

16.1 The Client may terminate this Agreement. by giving 30 days prior written notice to the Manager. The Manager may
terminate this Agreement on three months' written notice to the Client or may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority. Further, if the Client commits a material breach of
the terms of this Agreement, becomes insolvent or the subject of any winding up order, or if any liquidator or administrator is appointed or the Client otherwise becomes the subject of any equivalent procedures under similar law, the Manager
reserves the right to terminate this Agreement immediately and to take any such action in relation to the Account as it may consider necessary. This Agreement shall terminate upon the full redemption of the Account's assets invested in the
Mercer Funds.

16.2 Termination of this Agreement will be without prejudice to the completion of transactions already initiated
which will be completed expeditiously by the Manager. Further, termination of this Agreement shall have no effect on the Client's investments in the Mercer Funds, which may be redeemed by the Client in accordance with the terms and conditions
set forth in the Prospectus.

16.3 Termination of this Agreement shall not affect accrued rights, indemnities, existing commitments or any
contractual provision intended to survive termination and will be without penalty or other additional payment on termination. For the avoidance of doubt, the provisions of Clauses 11, 12, 17, 19 and 21 shall continue to apply notwithstanding the
termination of this Agreement. The Client shall pay: (i) the fees of the Manager pro rata to the date of termination; and (ii) any additional expenses necessarily incurred by the Manager in terminating this Agreement. The Client shall bear
any losses necessarily realised in settling or concluding outstanding obligations.

16.4 In circumstances where notice has been given by either party to terminate this Agreement, the Manager shall
continue to perform its obligations under this Agreement until the effective date of termination, and shall co-operate with the Client and take such steps as the Client may reasonably require in order to
effect the orderly termination of this Agreement, including transfer of the Account to an alternative manager at the direction of the Client where applicable.

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**17.** **CONFIDENTIALITY AND DISCLOSURE; DATA PROTECTION** 

17.1 Unless required by law, governmental or regulatory authority, the Manager undertakes to keep confidential, and
not to disclose, any confidential information (written or oral) concerning the Client's business which is provided to the Manager in connection with the Agreement. However, the Manager is entitled to disclose such confidential information to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1 any Affiliates or other third parties with the Client's written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2 the Manager's advisors, directors, officers, employees, representatives, delegates or Affiliates involved
in the provision of services under this Agreement, who in each case agree to keep such information confidential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3 the Manager's legal advisers, insurers and insurance brokers where it is necessary for the Manager to
notify them of a claim or circumstances that might lead to a claim.

17.2 Subject to the provisions of clause 17.7, the Manager undertakes to use the information provided to the Manager
in connection with the Agreement solely for the purposes of the provision of the services under the Agreement.

17.3 The provisions of clause 17.1 will not apply to information which is already lawfully in the Manager's
possession on the date of its disclosure and/or in the public domain other than as a **result of a breach of this clause.** 

17.4 Notwithstanding clause 17.1, the Manager may disclose information about client engagements including contact
information to our Affiliates, whether in the EEA or elsewhere, for routine management, accounting and marketing activities or in connection with services and products provided by such Affiliates.

17.5 The parties agree that they shall comply with the obligations arising from the applicable data protection and
privacy laws in force from time to time. The Client confirms that any data provided to the Manager in connection with the Agreement is provided in compliance with all relevant data protection and privacy laws. The Client consents to us holding and
processing data for legal, personnel, administrative and management purposes.

17.6 In order to provide the services under this Agreement in the most efficient manner, the Manager may sub-contract appropriate parts to a third party or parties who may be located in the EEA or elsewhere. In the event that any such third party processes personal data, the Manager will take reasonable steps in order
that such third party agrees in writing to act only on the Manager's instructions and provides appropriate guarantees in respect of the technical and

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organisational security measures governing the processing to be carried out. The Manager will take all reasonable steps to secure compliance with those measures. Where such third party is located outside the EEA, the Manager will take reasonable steps so that the processing of any personal data by the third party, including its transfer to the third party, complies with all relevant data protection and privacy laws.

17.7 The Client agrees that the Manager may use information provided by the Client, together with information from
our other clients, to build databases and surveys for internal use by our staff and for external distribution to our other clients. These databases are intended to benefit all clients by improving the quality of our service and products. The Manager
will not disclose any information to any third party in a manner which allows particular clients or individuals to be identified and will arrange that the relevant personal data is appropriately anonymised.

17.8 The Manager will take all reasonable steps to keep all personal information and all other information provided
by the Client secure at all times and that the Manager's data security procedures are adequate and sufficiently robust to prevent the risk of loss of any personal information and all other information and to prevent the risk of financial crime,
specifically in respect of the day to day working practices that affect data protection and data security.

**18.** **ASSIGNMENT AND NOVATION** 

18.1 This Agreement is personal to the Client and shall not be capable of assignment by the Client without the prior
written consent of the Manager. The appointment, replacement or removal of any one or more of the trustees being the Client shall not be regarded as an assignment of this Agreement.

18.2 The Manager may assign or novate this Agreement to an Affiliate of the Manager provided that the Client is
given prior written notice of the Affiliate of the Manager to which the Agreement will be assigned or novated.

**19.** **GOVERNING LAW AND DISPUTE RESOLUTION** 

19.1 This Agreement and any dispute or claim arising out of or in connection with it or its subject matter,
existence, negotiation, validity, termination or enforceability (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of Ireland.

19.2 The Manager and the Client hereby irrevocably submit to the exclusive jurisdiction of the Irish Courts in
relation to any dispute or claim arising out of or in connection with this Agreement or its subject matter, existence, negotiation, validity, termination or enforceability (including non-contractual disputes
or claims).

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**20.** **FORCE MAJEURE** 

20.1 No party to this Agreement shall be liable for any failure or delay in performing any of its obligations under
or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control and it shall be
entitled to a reasonable extension of the time for performing such obligations as a result of such cause. Events outside a party's reasonable control shall include without limitation: acts of God; any change to the law, order or regulation of a
governmental, supranational or regulatory body; currency restrictions, devaluations and fluctuations; any act of terrorism; market conditions affecting the execution or settlement of transactions or the value of assets; failure or breakdown in
communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and shall include any event or circumstances that the party is unable, using reasonable skill and care, to avoid. This clause
is without prejudice to the Client's liability to any counterparty or broker for any transaction effected by the Manager for the Account pursuant to this Agreement.

**21.** **PROVISION OF THIRD PARTY INFORMATION** 

21.1 The Client agrees that the Manager will be entitled to rely on the accuracy of the information supplied to the
Manager by the Client, by any administrator of, or adviser to, the Client or by any reputable third party data vendor or similar entity which the Manager is reasonably entitled to rely upon ("Third Party Information").

21.2 The Client acknowledges that the Manager's ability to provide the relevant reporting is dependent on the
Manager being provided with (and continuing to receive) complete, accurate, up-to-date and timely documentation and information in relation to holdings outside of the
Mercer Funds.

21.3 The Client agrees that if any documentation or information (including Third Party Information) supplied to the
Manager at any time is incomplete, inaccurate or not up-to-date, or its provision is unreasonably delayed, then the Manager will not be responsible for any delays or
liability arising therefrom.

21.4 Any reporting provided by the Manager under this Agreement in respect of External Holdings will be provided on
a best efforts basis and subject to this Clause 21.

**22.** **ADDITIONAL PROVISIONS** 

22.1 This Agreement, its appendices (as amended from time to time) and any current instructions constitute the
entire agreement of the parties with respect to the services related to the Account. The Agreement supersedes and extinguishes all previous letters (including purchase orders), agreements, promises, assurances, warranties, representations and
understandings, whether oral or written, in relation to those matters.

22.2 The Manager's authority under this Agreement is given by the Client on behalf of its successors in title
as well as of itself.

22.3 If any provision of the Agreement is prohibited or unenforceable or is found to be invalid, illegal or
unenforceable by a court or any other competent authority, that provision shall, to the extent required, be deemed deleted and the validity and enforceability of the other provisions of the Agreement shall not be affected.

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22.4 Nothing in this Agreement shall exclude or restrict any duty or liability to the Client which the Manager has
under MiF1D or, where relevant, the Pensions Act 1990 (the "Pensions Act")

22.5 This Agreement may be executed in counterpart copies, each of which shall be deemed an original, but all of
which together shall be considered the same instrument.

**23.** **RISK WARNINGS AND NOTIFICATIONS** 

23.1 The value of investments and the income from them may fall as well as rise and an investor may not get back the
amount originally invested. More information regarding the nature and risks associated with investing in shares or units of the Mercer Funds is provided in Appendix D hereto and in the relevant Prospectus.

23.2 To the extent permitted under MiFID, the services to be provided to the Client by the Manager may also include
advice on investments that are, or on executing transactions in, units in unregulated collective investment schemes.

23.3 Insofar as investments are made involving exposure to a currency other than the base currency of the Account,
changes in rates of exchange may cause the value of the investment to go up or down.

23.4 The terms and conditions in respect of which the Manager may provide the Client with investment advice will be
set out in the Manager's engagement letter with the associated terms and conditions.

**24.** **INSURANCE LEGISLATION** 

24.1 *ANY APPLICABLE BELGIAN LEGISLATIVE DISCLOSURES TO BE INSERTED* 

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**IN WITNESS WHEREOF,** authorised signatories of each party have signed this Agreement on the date(s) recorded below:

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| | |
|:---|:---|
| **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** | **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** |
| By: | /s/ Michael Dempsey |
|  | Name: Michael Dempsey |
|  | Title: Director |
| **ACCELERANT INSURANCE EUROPE S.A.** | **ACCELERANT INSURANCE EUROPE S.A.** |
| SIGNED for and on behalf of | SIGNED for and on behalf of |
| /s/ Patrick den Ouden | /s/ Patrick den Ouden |
| Patrick den Ouden | Patrick den Ouden |
| CFO | CFO |
| Date: April 20th 2021 | Date: April 20th 2021 |
| SIGNED for and on behalf of | SIGNED for and on behalf of |
| /s/ Roy Boukens | /s/ Roy Boukens |
| Roy Boukens | Roy Boukens |
| CRO | CRO |
| Date: April 20th 2021 | Date: April 20th 2021 |

---

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**<u>APPENDIX A - APPLICATION FORM FOR SHARES IN MERCER FUND1</u>**

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**APPENDIX A: - DECLARATIONS OF RESIDENCE WITHIN THE REPUBLIC OF** 

**IRELAND<sup>1</sup> DECLARATION REFERRED TO IN SECTION 739D(6) TAXES** 

**CONSOLIDATION ACT, 1997** 

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**APPENDIX A: DECLARATION OF RESIDENCE OUTSIDE THE REPUBLIC OF IRELAND** 

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**APPENDIX B: SELF-CERTIFICATION FOR COMMON REPORTING STANDARDS (CRS)** 

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**APPENDIX C: ANTI-MONEY LAUNDERING SCHEDULE AND ECONOMIC SANCTIONS** 

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**SCHEDULE TO APPLICATION FORM** 

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**<u>APPENDIX B</u>**

**INVESTMENT GUIDELINES** 

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**<u>APPENDIX C</u>**

**FEE PROVISIONS** 

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**<u>APPENDIX D</u>**

**RISK WARNINGS**

## Exhibit 10.23

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.23** 

***EXECUTION VERSION***

![LOGO](g543111dsp56.jpg)

welcome to brighter

**Strictly Private & Confidential** 

Accelerant Insurance Europe S.A

Bastion Tower Level 20

Place du Champ de Mars 5

Brussels 1050, Belgium

DATE: October 2022

**Subject: Side Letter to the Investment Management Agreement** 

Dear Client,

We refer to the investment management agreement between Accelerant Insurance Europe S.A (the "**Client**") (iFAST Number: 2343, 2353) and Mercer Global Investments Europe Limited (the "**Manager**") dated 20th April 2021 as amended from time to time (the "**Agreement**"). Capitalised terms in this letter shall have the same meaning given to them in the Agreement.

Pursuant to clause 14.1 of the Agreement, the Client and the Manager hereby agree that the current Appendix B of the Agreement shall be deleted and replaced by the Appendix B attached hereto.

For the avoidance of doubt, the Client confirms that the confirmations, representations, declarations and warranties made in the Application Form by the Client are continuous and shall apply to the subscription of shares by the Client.

Arising from this side letter the costs applicable to the Client's arrangements with the Manager may change and, if the Client so wishes, the Client may request a new costs and charges statement.

This letter is governed and interpreted in accordance with the relevant provisions set out in the Agreement.

Please would you countersign and date the enclosed copy of this letter to show the agreement of the Client to its terms which will form part of the Manager's contractual agreement with the Client.

Yours faithfully

For and on behalf of

**Mercer Global Investments Europe Limited** 

Mercer Global Investments Europe Limited, trading as Mercer, is regulated by the Central Bank of Ireland.

Registered Office: [\*\*\*].

Directors: [\*\*\*].

A business of Marsh McLennan

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On behalf of the **Accelerant Insurance Europe S.A**, we acknowledge and agree to the terms of this letter.

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| | |
|:---|:---|
| Signed: | /s/ Patrick den Ouden |
| Name: | Patrick den Ouden |
| Date: | 5th october 2022 |

---

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| | |
|:---|:---|
| Signed: | /s/ Craig <sub></sub>Nicholls |
| Name: | Craig <sub></sub>Nicholls |
| Date | 4th October 2022 |

---

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The number of signatories must be such number as is required by the trust deed and rules (or, in the case of a sole corporate trustee, its memorandum and articles of association).

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**APPENDIX B** 

**INVESTMENT GUIDELINES**

## Exhibit 10.24

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.24** 

***EXECUTION VERSION***

Investment Management Agreement (Germany)

This AGREEMENT dated as of the 2<sup>nd</sup> October 2023, is entered into by and between Accelerant Insurance Europe SA (the "Client"), a Societe Anonyme incorporated under the law of Belgium, having its registered office at Bastion Tower, Place du Champ de Mars 5, 1050 Brussels, and Wellington Management Europe GmbH ("WME"), a limited liability company organised under the laws of Germany, having its registered office at [\*\*\*].

1 APPOINTMENT

The Client hereby appoints WME as investment manager to manage, supervise and direct the investment and reinvestment of the assets in the Client's investment accounts (collectively, the "**Account**") under the terms and conditions set out in this Agreement. The Account will be maintained with a custodian or custodians that may be designated as such by the Client to WME in writing (the "**Custodian**"). By execution of this Agreement, WME accepts such appointment as investment manager and agrees to manage, supervise and direct the investment and reinvestment of such assets pursuant to the provisions of this Agreement.

WME's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Custodian and WME have reconciled to WME's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and WME's portfolio trading systems (the "**Effective Date**").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

WME, acting as agent of the Client, shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement in pursuit of the Client's investment objective, subject to and in accordance with the Client's Investment Guidelines attached as Attachment A hereto, as the same may be amended by the mutual agreement of the parties from time to time (the "**Investment Guidelines**"), and any instructions, whether written or oral, from any officer or employee of the Client listed on Attachment B hereto, as such list may be modified any time in the Client's sole discretion by notice to WME ("**Instructions**"). WME will keep the objectives and restrictions stated in the Attachment A under review and may, from time to time, suggest to the Client such amendments as, in WME's opinion, are appropriate. Subject to the terms of this Agreement, WME shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, subscription, conversion or other transactions in any and all stocks, bonds, other securities, cash or currencies, and other Account assets, including shares of a registered investment company for which WME or an affiliate of WME may act as investment adviser and, upon proper authorisation by the Client, interests in a collective trust maintained by a bank or trust company, including one maintained by an affiliate of WME. At no time shall WME be entitled to obtain ownership or possession of the Client's assets held in the Account.

Upon prior notice to the Client, WME may delegate the discretionary investment management of the Account to its affiliates, Wellington Management Company LLP ("**Wellington Management US**") and Wellington Management International Limited (and Wellington Management US may engage any of its affiliates), or may engage any of its other affiliates to assist it with providing its services under this Agreement, provided that no additional fees will be charged to the Client. WME's engagement of such affiliates shall not relieve WME of its obligations under the Agreement, and WME shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were WME's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WME's affiliates. For the avoidance of doubt, WME shall require all such affiliates to be bound (in writing or otherwise) by the confidentiality provisions of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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3 DISCRETIONARY AUTHORITY- BROKER SELECTION, TRADING AND CLEARING

Subject to the Investment Guidelines, any Instructions and any other provisions of this Agreement, WME shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("**Brokers**") that WME may select.

The Client authorises WME as its agent to enter into, supplement, amend and/or restate such documentation as WME considers appropriate for the purposes of establishing such accounts and executing such transactions. Such documentation may include, without limitation: master agreements for the trading of over-the-counter derivatives, clearing agreements (including addenda to existing master agreements), futures and options agreements, margin and collateral documentation (either through title transfer collateral arrangements or security collateral arrangements (which may in include a right of re-use of collateral)) and terms of business, in each case with such Brokers that WME considers appropriate and on terms generally accepted as market-standard. The Client acknowledges and agrees that such documentation may also grant the relevant Broker (and its affiliates or agents) a number of rights including, without limitation, a first priority security interest in, lien over or pledge over some or all of the assets held with such Broker. The authority contained in this paragraph is subject to the Investment Guidelines (including any counterparty restrictions), any Instructions and the terms of this Agreement.

WME will, when entering into clearing arrangements on behalf of the Client, have the discretion to select whichever clearing house and account structure as it deems appropriate for the clearing of the Client's trades.

Certain Brokers from time to time may furnish to WME or its affiliates statistical and investment research or execution services. WME's broker selection shall be conducted in accordance with its Policies and Procedures on Order Execution, as may be amended from time to time.

The Client acknowledges Brokers may request information about the Client from WME in connection with the Brokers' anti-money laundering or client identification obligations. WME is hereby authorised to furnish such information to such Broker based on information provided to WME by the Client. In certain circumstances, WME may request the Client to enter into trading or other agreements directly with a Broker, which requests the Client may accept or reject in its sole discretion.

WME will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care (as defined in Section 16 below) in the selection, use and monitoring of Brokers. Subject thereto, neither WME nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client.

WME shall take all sufficient steps to obtain the best possible result when executing orders on behalf of the Client and when placing orders relating to investments on behalf of the Client with Brokers for execution by those Brokers (except to the extent that it is following a specific instruction from the Client). Further information on the steps that WME takes to achieve best execution is set out in Wellington Management's Policies and Procedures on Order Execution and its Policies and Procedures on Allocation of Trades (as they may be amended from time to time).

The Client acknowledges and confirms that WME has separately provided to it a copy of Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on Allocation of Trades and the Client hereby consents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on
Allocation of Trades (as they may be amended from to time, subject to the Client receiving written notice of any material amendments); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the execution outside of a trading venue (within the meaning of Section 2 (22) of the German Securities
Trading Act - *Wertpapierhandelsgesetz* ()"**W pHG** ")) of the Client's orders.

Allowing orders to be executed outside a Regulated Market, Multilateral Trading Facility and Organised Trading Facility will enable WME to access a wider range of execution venues. There are other consequences of executing outside a trading venue, including counterparty risk. The Client may request additional information from WME about the consequences of transactions being executed outside a trading venue.

Unless otherwise instructed by the Client in writing, WME will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian. Where permitted in the Investment Guidelines, and subject to any restrictions therein, WME may effect transactions in derivatives (both exchange-traded and over the counter) and may settle or close out such transactions without further reference to the Client. WME may debit the Account with any sums required to pay or supplement any deposit or margin in support of any such transaction.

WME may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by WME on behalf of WME's other clients. Such aggregated orders (including associated expenses) will be allocated by WME in accordance with Wellington Management's Policies and Procedures on Allocation of Trades (as amended from time to time, subject to the Client receiving written notice of any material amendments). The Client acknowledges that each aggregation may operate to the advantage or disadvantage of the Client. WME will allocate aggregated transactions on a fair basis in accordance with applicable laws, rules and regulations.

In addition, subject to applicable laws, rules and regulation, WME may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of WME as set forth in WME's Policy and Procedures on Order Execution, as may be amended from time to time.

To the extent that WME places a limit order for the sale or purchase of equities on behalf of the Client with a Broker for execution by that Broker, the Client hereby expressly instructs WME not to make public (and to use reasonable endeavours to procure that the Broker does not make public) the details of that limit order unless WME considers, in its absolute discretion, that it is appropriate for such details to be made public (which shall, without limitation, be deemed to include where the relevant Broker makes the relevant details of that limit order public in circumstances where WME has given the Broker the discretion to do so).

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| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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WME makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that, to its knowledge, the Investment Guidelines are consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

WME will establish effective measures to ensure that its investment decisions and procedures as specified under this Agreement comply with the Investment Guidelines and Instructions. In the event of a discrepancy between an Instruction and the Investment Guidelines, the Instructions shall prevail.

The Investment Guidelines shall not be breached as a result of any events or circumstances outside the reasonable control of WME including, but not limited to, (i) changes in the price or value of the assets in the Account brought about solely through movements in the market,(ii) contributions to or withdrawals from the Account (iii) a change in the nature of any investment (whether through change in business activity or credit rating), or (iv) a force majeure event. In the

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event that the Investment Guidelines are breached or would have been breached but for the provisions immediately preceding, WME shall notify the Client of the relevant circumstances as soon as reasonably practicable and shall address such breach of the Investment Guidelines as instructed by Client as soon as reasonably practicable. If WME acts in accordance with this section, the non-compliance for reasons set out above in this paragraph will not constitute a breach of the Agreement nor will it give rise to any right or remedy in the Client.

Subject to any provision in the Investment Guidelines or any Instructions to the contrary, asset-based restrictions (e.g., exposure and concentration limits) in the Investment Guidelines shall be applied by WME at the time of acquisition based on the market value of the investments versus the total net assets of the Account. Ambiguities in the Investment Guidelines may be interpreted by WME in good faith and consistent with its fiduciary duty to the Client; provided, however, that WME shall notify the Client prior to taking, or committing or failing to take, any action on the basis of such interpretation and/or deviating from the Investment Guidelines under unusual circumstances, such as extreme market conditions and/or large cash flows into or out of the Account. In case of such interpretations or deviations WME shall give the Client the opportunity to provide Instructions clarifying such ambiguities and/or to authorise any deviation prior to WME taking action, in all cases, WME shall manage the Account in the best interests of the Client.

WME may, at its expense, utilise unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of WME nor Client for inaccuracies, omissions, failures to publish or other interruptions. Additionally, Environmental, Social, and Governance ("**ESG**") data may vary in quality, availability, estimations and methodologies being used.

The Client may give or modify Instructions to WME at any time and WME shall have a reasonable period to comply with such Instructions. The Client covenants that any Instructions shall be, to the Client's knowledge, consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

The Client acknowledges and confirms that WME has separately provided it with risk warnings related to the management of the Account.

5 TAX MATTERS

Subject to the provisions of this clause, WME will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by WME on behalf of the Account. Neither WME nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

WME shall conduct its activities under this Agreement in such a way that will not cause the Client to: (i) have a place of effective management outside its country of tax residence; or (ii) have a permanent establishment outside its country of tax residence, solely as a result of the provision of such services.

WME shall use reasonable efforts to assist the Client in obtaining documents and information required from investment and brokers for tax compliance purposes.

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6 APPRAISAL OF ACCOUNT, VALUATION AND DISCLOSURES

WME will provide the Client with a monthly report by email which sets out information on the activities undertaken by WME and of the performance of the Account during the previous monthly reporting period as required under the WpHG. WME endeavours to value all securities at fair market value as determined by WME in good faith and in accordance with Wellington Management's Pricing Policies and Procedures, as may be amended from time to time. WME is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

In addition, at the request of the Client, WME will promptly provide to the Client all pricing and other information needed by the Client for audit purposes and any other reports reasonably requested by the Client. Furthermore, upon the reasonable request of the Client, WME will (i) make its personnel available to participate in conference calls and meetings with the Client on issues that may arise in connection with the subject matter of this Agreement and/or market trends or conditions generally, which meetings may, upon the Client's request and subject to the reasonable discretion of WME, include representatives of WME's affiliated companies; and (ii) make its personnel available for conference calls and meetings with the Client's Board of Directors and Committees thereof.

7 REGULATORY REPORTING

As part of its regulatory obligations, WME is required to make certain reports to the German Federal Financial Supervisory Authority (*Bundesanstalt für Finanzdienstleidungsaufsicht* – "**BaFin**") regarding its trading activities to the BaFin, including for example, transaction reports. In addition, WME may need to undertake reporting of derivative trades to trade repositories on behalf of the Client. For this purpose WME requires certain information from the Client. If the below information is not provided on the terms below WME may not be able to execute or place relevant trades under this Agreement or carry out reporting to trade repositories on behalf of the Client.

The Client hereby agrees to provide to WME the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement, the Client's up to date legal entity identification code
(" **LEI Code** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Client's new or updated LEI Code promptly, in the event that the LEI Code provided under sub-paragraph (A) above changes or is updated.

In addition to the obligations set out above in this Section, if the Client is also a discretionary investment manager, the Client agrees to provide to WME the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement, the LEI Code for any underlying funds or manager account holders
to which trades arising from this Agreement are allocated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the relevant underlying fund's or managed account holder's new or updated LEI Code, in the event that
an LEI code provided under sub-paragraph (A) above changes or is updated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) promptly on request by WME, in relation to sales of EEA listed equities and sovereign debt carried out by WME,
details of whether any underlying funds or managed accounts to which trades arising from this Agreement are allocated were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) holding a short position or a long position in the relevant EEA listed equity or sovereign debt at the time of
the sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the size of that short position or long position at the time of the sale.

For the purpose of fulfilling its regulatory reporting obligations under this Section and its regulatory reporting obligations to the market under the WpHG, WME is required to disclose in those reports specified information about the Client and the relevant transactions. The Client acknowledges and consents to such disclosure of information by WME as required for regulatory purposes and that, to the extent that the confidentiality provisions in this Agreement are inconsistent with WME's regulatory disclosure obligations, such obligations shall be modified accordingly in relation to such disclosures.

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8 COMMODITY POSITION LIMITS

The Client hereby agrees to notify WME of any limits it wishes to impose on positions that may be held at any time by or on behalf of the Account in specified commodity derivatives and economically equivalent OTC contracts which are subject to Article 57 of the second Markets in Financial Instruments Directive ("**Relevant Commodity Contracts**"), and the duration of such imposed limits.

In the absence of, or expiry of, any specific notification given by the Client, WME shall be entitled to exercise its discretion over the Account on the basis that the positions in Relevant Commodity Contracts held by or on behalf of the Account at any time are permitted to reach the maximum limits published from time to time by the relevant EU regulator responsible for setting the position limits for that particular commodity derivative.

If the limits the Client wishes to impose would violate the limits set by BaFin, an agreement with the Client has to be reached which complies with such limits.

9 RECORDING OF TELEPHONE CALLS AND ELECTRONIC COMMUNICATIONS

WME hereby notifies the Client that it will record telephone conversations or electronic communications (in accordance with WpHG and applicable regulations) when it receives and transmits orders or executes orders on behalf of the Client; or when it deals on own account. The Client will use reasonable endeavours to notify its personnel that conversations with WME may be recorded.

WME will keep records for a period of five years from when the communication was recorded (or up to seven years if the BaFin requires WME to do so). WME shall provide the Client with such records upon request.

10 MANAGEMENT FEE

The Client will pay to WME for its services hereunder a management fee as set forth on Attachment C (the "M**anagement Fee**").

All amounts payable under or pursuant to this Agreement are exclusive of any value added tax chargeable under the German VAT Act (*Umsatzsteuergesetz*) and/or any similar replacement or additional tax and/or any equivalent tax in any jurisdiction ("**VAT**"), and any other taxes, charges or fees. The Client shall pay amounts in respect of VAT on receipt of a valid VAT invoice, if and to the extent WME is liable for collection and payment of such tax to the tax authority.

The Client will be liable for any out of pocket costs (plus any irrecoverable VAT or such) properly incurred by WME under or pursuant to this Agreement , including reasonable commissions, transfer and registration fees, taxes, stamp duties, transaction taxes and other fiscal liabilities.

The Client shall make all payments under this Agreement without withholding or deduction for, or on account of, any tax unless required by law or order by a tax authority.

The Client confirms that the services provided hereunder are not being supplied to a German-based authorised unit trust/open-ended investment company/authorised contractual fund or to any collective undertaking in securities which is open for retail investment in Germany. The Client will inform WME as soon as reasonably practicable if it is no longer able to give this confirmation.

If WME has charged an amount in respect of any VAT on supplies to the Client, and the appropriate tax authority subsequently publishes guidance which, in WME's reasonable opinion, indicates that such supplies were not wholly chargeable to VAT, then:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if WME has not accounted to the appropriate tax authority for such amount, WME shall, as soon as reasonably
practicable, repay to the Client such amount as has been incorrectly charged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if WME has accounted to the appropriate tax authority for such amount, WME shall, as soon as reasonably
practicable and at the Client's expense, take reasonable steps to obtain a refund (plus any interest arising) from the appropriate tax authority of the amount overpaid. If, when and to the extent that it receives such a refund, WME shall, as
soon as reasonably practicable, repay to the Client an amount equal to such refund received.

11 COSTS AND CHARGES

In addition to any costs and charges information contained in the monthly reporting under Section 6, WME will also provide information by email on the costs and charges incurred in connection with the investment management services that it provides under this Agreement on an annual basis. For these purposes, the reporting period shall be based on calendar years.

12 PROCEDURES

All transactions will be consummated by payment to, or delivery by, the Custodian of all cash and/or securities due to or from the Account according to local market settlement conventions. It is understood and agreed that WME is not authorised to receive or hold money from or on behalf of its clients in connection with the conduct of its regulated activities under this Agreement and shall not act as custodian for the Account, and no cash or securities due to or held for the Account shall be paid or delivered to WME, except in payment of the Management Fee. Instructions by WME to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of WME, orally and confirmed by such transmission method as soon as practicable thereafter.

WME shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian, and to the Client upon the Client's request, copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide WME with such periodic reports concerning the status of the Account as WME may reasonably request.

If any Broker or counterparty fails to deliver any necessary documents or to complete any transaction, WME shall take all reasonable steps on behalf of the Client to rectify such failure.

Neither WME nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, WME does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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| 13 | PROXIES  |

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The Client instructs WME to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorizes WME to instruct the Custodian to forward promptly to WME only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that WME will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

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14 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

WME will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other legal proceeding related to securities currently or previously held in the Account ("**Legal Proceedings**"), WME shall provide factual information in its possession as the Client may reasonably request. The Client shall pay or reimburse costs actually and reasonably incurred by WME or its affiliates in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of WME's or its affiliates' roles and responsibilities under this Agreement.

15 SERVICE TO OTHER CLIENTS; POTENTIAL CONFLICTS OF INTEREST

WME has in place a Conflicts of Interest Policy which specifies the procedures that it follows and the measures that it has adopted to identify, prevent or manage conflicts in a way that ensures fair treatment for the Client.

The Client acknowledges and confirms that WME has separately provided to it a copy of WME's Conflicts of Interest Policy. Further information on WME's Conflicts of Interest Policy is available on request. The Conflict of Interest Policy may be updated from time to time and the latest version is available on request.

It is understood that WME and its affiliates provide investment management and advisory services for other clients, including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that WME or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. If a purchase or sale of securities or other assets for multiple client accounts including the Account is deemed by WME to be advisable and is considered at or about the same time, and WME is unable to purchase or sell the amount of securities or other assets in the aggregate amount then contemplated by WME on behalf of such client accounts, the transactions in such securities or other assets will be allocated among the client accounts contemporaneously purchasing or selling as deemed equitable by WME.

WME or any of its affiliates may effect transactions in which it has, directly or indirectly, a material interest or relationship of any description with another party which may involve a potential conflict with WME's duty to the Client. WME will ensure that such transactions are (i) effected on terms which are not less favourable to the Client than if the potential conflict had not existed and (ii) in accordance with the Standard of Care.

In accordance with the applicable laws, but subject in each case to the Standard of Care, WME notifies the Client that such potential conflicting interests or duties may arise because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) WME or its affiliates undertake regulated activities for other clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a director or employee of WME, or of its affiliates, is a director of, holds or deals in securities of, or is
otherwise interested in any company whose securities are held or dealt in on behalf of the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a transaction is effected in securities in respect of which WME or its affiliates may benefit from a
commission, fee, mark-up or mark-down payable otherwise than by the Client, and/or WME or its affiliates may be remunerated by the counterparty to any such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) WME may act as agent for the Client in relation to transactions in which it is also acting as agent for the
account of other clients and/or affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon proper authorisation by the Client, a transaction is effected in units or shares of a collective trust or
other commingled pool vehicle or a company of which WME or any of its affiliates is the manager, operator or adviser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a transaction is effected in securities in respect of which WME or its affiliates, or a director or employee of
WME or its affiliates, is contemporaneously trading or has traded on its own account or has either a long or short position.

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WME will act as the agent of the Client, who will therefore be bound by its actions under this Agreement. Nevertheless, none of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or equitable duties which would prevent or hinder WME, or its affiliates, in transactions with or for the Client, from acting as both market-maker and broker, principal or agent, dealing with other affiliates and other clients, and generally effecting transactions as provided above, to which the Client consents accordingly, subject in each case to the Standard of Care.

16 STANDARD OF CARE; LIABILITY

WME shall discharge its duties and exercise its discretion under this Agreement with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investment professional acting in a similar capacity and familiar with such matters would use, in accordance with its authorisation and regulation by the BaFin and other applicable law (the "**Standard of Care**"). Unless WME has breached the Standard of Care, WME shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under this Agreement (including acts or omissions made in response to Instructions), except to the extent such act or omission constitutes a material breach of this Agreement, wilful misfeasance, bad faith or gross negligence on the part of WME, any of its affiliates or delegates.

In no event shall WME, any of its affiliates or delegates be liable hereunder to the Client or to any other person or entity for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

Except insofar as the same may result from the negligence, wilful default or fraud of WME, its affiliates or its delegates or its or their employees, the Client agrees to indemnify WME against all costs, losses, claims and expenses which may be incurred by it or made against it either (i) as a result of any party claiming to be entitled to investments which form part of the Account at the time when WME first assumes management of the Account; or (ii) in consequence of any breach by the Client of this Agreement; or (iii) arising out of any action properly taken by WME in accordance with this Agreement.

17 REPRESENTATIONS AND UNDERTAKINGS BY WME

By execution of this Agreement, WME represents that: (i) it is an investment firm according to the German Investment Firms Act (*Wertpapierinstitutsgesetz* – "**WpIG**") supervised and duly authorised by the BaFin to conduct investment management business in Germany and shall remain so authorised at all times during the terms of this Agreement, and, as an investment manager authorised and regulated by the BaFin, it acknowledges its fiduciary status with respect to the Account; (ii) the terms hereof do not violate any law or other obligation by which WME is bound, whether arising by contract, operation of law or otherwise; (iii) as to WME, this Agreement has been duly authorised by appropriate action and when so executed and delivered will be binding upon WME in accordance with its terms; (iv) as at the date of this Agreement, there is no litigation or governmental proceeding currently pending, against it or involving its investment management business which would materially and adversely affect its ability to carry out the services hereunder; (v) WME will provide the Client with any other relevant information in connection with the services being provided hereunder as the Client may reasonably requested from time to time; and (vi) all representations made by WME under this Agreement are true and accurate in all material respects. WME covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate in all material respects and that the Client may rely on the accuracy of such representations.

WME shall undertake to: (i) promptly advise the Client in the event of any change in control of WME or a change in the lead portfolio manager involved in managing the Account. ; and (ii) maintain appropriate liability and professional indemnity insurance and keep such insurance in place throughout the continuance of this Agreement and, if requested, shall provide the Client with such details of its insurance as may reasonably be requested from time to time.

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18 REPRESENTATIONS BY THE CLIENT

By execution of this Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) as to the Client, this Agreement is duly executed by individuals with the requisite authority to bind the Client, has been duly authorised by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Account is free of all liens and charges, and undertakes that no liens or charges will arise from the acts or omissions of the Client; (iv) during the term of this Agreement, the Client undertakes not to deal, except through WME, with any of the assets of the Account and not to authorise anyone else to deal in any of them; (v) the Client will provide WME with any other relevant information reasonably requested from time to time and (vi) all representations made by the Client under this Agreement are true and accurate in all material respects. The Client covenants that any future representations made to WME under or relating to this Agreement shall be true and accurate in all material respects and that WME may rely on the accuracy of such representations in the performance of its duties hereunder.

19 BENCHMARK REGULATIONS

The Client acknowledges that Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the "**Benchmark Regulation**" or "**BMR**") may apply to the Client in respect of the Account.

Where a Client is using a benchmark (as the term 'use' is defined in Article 3(7) of the Benchmark Regulations), the Client acknowledges and agrees that:

(i) it can only use a benchmark (as that term is defined in Article 3(3) of the BMR) provided by an appropriately authorised administrator (as that term is defined in Article 3(6) of the BMR); and

(ii) it is required to produce and maintain robust written plans setting out the actions that it would take in the event that a benchmark materially changes or ceases to be provided (in accordance with Article 28 of the BMR). WME agrees to provide the Client with reasonable assistance in order to assist the Client to produce, maintain and comply with those plans.

20 ANTI-BRIBERY AND CORRUPTION

Each party agrees that: (a) it will comply with all applicable laws, statutes, regulations, and codes relating to anti-bribery and anti-corruption applicable in the jurisdiction(s) in which it operates, including but not limited to the US Foreign Corrupt Practices Act 1977 and the UK Bribery Act 2010, each as may be amended from time to time ("**Anti-Bribery Requirements**"); (b) it has not directly or indirectly done or omitted to do, and will not directly or indirectly do or omit to do, any act which would be or could be construed as an unlawful act under the Anti-Bribery Requirements; (c) it shall have and maintain in place its own policies and procedures to ensure compliance with the Anti-Bribery Requirements and will enforce them where appropriate; and (d) it will give such assistance to the other party as may be reasonably requested to ensure compliance with the other party's internal policies and procedures in respect of anti-bribery.

21 USE OF THIRD PARTY DELEGATES

WME may employ reputable third party delegates to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding and reconciliation and corporate action processing, required to enable WME to perform the services under this Agreement. Upon the Client's written request, WME shall identify any such third party delegates to the Client in writing, with such details as the Client may reasonably request. The Client authorises WME to provide necessary information about the Client and the Client's investments to such third party delegates to perform such services, provided that such third party delegates are also bound by confidentiality and use obligations at least as protective as those herein , and when reasonably requested by the Client, WME shall enter into a

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separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. WME will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care in the selection, use and monitoring of delegates, and the Client shall not be responsible for any fees which any agent may charge in connection with such services. WME will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has delegated any functions to a delegate. WME's engagement of such delegates shall not relieve WME of its obligations under the Agreement, and WME shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were WME's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WME's delegates.

For the avoidance of doubt, Brokers and third-party data service providers shall not be considered as delegates under this Section.

22 ASSIGNMENT

Neither party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed.

23 TERM AND TERMINATION

The Client may terminate this Agreement at any time by written notice to WME. WME may terminate this Agreement (i) by giving three months' written notice to the Client or (ii) may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority.

This Agreement will continue until terminated by either Party upon at least 3 months' prior written notice to the other party, or such shorter time period as mutually agreed in writing by the parties.

Unless otherwise agreed between the parties, in circumstances where WME terminates this Agreement pursuant to this Section 24, WME shall continue to provide the services up until the termination date and shall cooperate with and take such steps as the Client may reasonably require in order to effect the orderly termination of this Agreement.

24 CONSEQUENCES OF TERMINATION

Termination will be without prejudice to the completion of transactions already initiated which will be completed expeditiously by WME. Termination will not affect accrued rights, indemnities, existing commitments or any contractual provision intended to survive termination and will be without penalty or other additional payment. The Client will pay (i) the Management Fees of WME pro rata to the date of termination and (ii) any additional expenses necessarily incurred by WME in terminating this Agreement and will bear any losses necessarily realised in settling or concluding outstanding obligations.

On termination, WME may, without prior notice to the Client, direct the Custodian to retain and/or realise any assets of the Account as may be required to settle transactions already initiated, and to pay, exclusive of any and all indemnification related obligations, any other outstanding liabilities of the Client. If there is a dispute as to the payment of Management Fees, or other costs and fees to WME the Client may require the disputed amount to be held in an escrow account pending resolution of the dispute.

25 CONFIDENTIALITY; USE OF NAME

WME and the Client acknowledge and agree that any and all information or materials communicated between the parties, including the terms of this Agreement is confidential information provided that confidential information shall exclude information or material which at the time of its disclosure is, or which thereafter becomes, (in each case otherwise than as a result of any act or default by the recipient), part of the public domain by publication or otherwise ("**Confidential Information**").

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For the purposes of this section, the party receiving the other party's Confidential Information shall be referred to as the **Receiving Party** and the party disclosing such Confidential Information shall be referred to as the Disclosing Party. At all times Confidential Information shall be handled with at least the same standard of confidentiality accorded to the most sensitive and confidential documents and information of the Receiving Party, but no less than a commercially reasonable standard of care. The Receiving Party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the Receiving Party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the Receiving Party (collectively, "**Representatives**") who have a need to know for purposes of this Agreement and the Receiving Party shall be responsible to the party disclosing such Confidential Information (the "**Disclosing Party**") for any breach of this Section by any of the Receiving Party's Representatives. The Receiving Party shall promptly notify the Disclosing Party in writing in the event it becomes aware of any loss or unauthorised disclosure of any Confidential Information by the Receiving Party or its Representatives.

Confidential Information shall not include any information that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is or becomes publicly available other than as a result of a breach of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is or becomes available on a non-confidential basis to the Receiving
Party from a source which is not known to the Receiving Party to be subject to a duty of confidentiality with respect to such information,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was legally in the Receiving Party's possession prior to disclosure by the Disclosing Party without any
obligation of confidentiality,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is developed by or for the Receiving Party independently of the Disclosing Party's Confidential
Information; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) is expressly approved for release by written authorization of the disclosing party.

In the event that the Receiving Party is requested or required by a legal or regulatory authority, law or legal process (a "**Demand**") to disclose any Confidential Information, the Receiving Party shall promptly notify the Disclosing Party of such Demand as reasonable under the circumstances, and only to the extent permitted by law. In the event a protective order or other remedy is not obtained, the Receiving Party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The Receiving Party will provide reasonable cooperation to the Disclosing Party and its legal counsel with respect to any Demand. Any expenses incurred by the Receiving Party in complying with this section shall be at the sole cost of the Disclosing Party.

Upon either party's written request , each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The Client agrees that the investment decisions and recommendations made by WME under this Agreement will not be used by the Client or its affiliates for any purpose other than with respect to the Account, without the written consent of WME.

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Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from such party's unauthorized use of the other party's name and logo in marketing materials.

The terms of this Section shall survive the expiration or termination of this Agreement, and the Disclosing Party shall be entitled to seek injunctive relief for any violation of this Section.

26 DATA PROTECTION

In this Section, "personal data" means data that relates to a living individual who can be identified from the data (either by itself or when it is combined with other data).

WME may process personal data in connection with this Agreement and the products and services that it provides under it. For the purposes of the Applicable Data Protection Laws, WME is a controller in respect of the processing of this personal data and is responsible for compliance with the Applicable Data Protection Laws in respect of such processing. Notwithstanding any other provision of this Agreement, under no circumstances shall WME be deemed to be a processor on behalf of, or a joint controller with, the Client. WME explains what personal data it will process, why and how it will process it, who it may share it with, and the rights that an individual has in respect of their personal data at the following location: https://www.wellington.com/en/privacy-notice/. In the remainder of this Section, WME refers to this as its "Privacy Notice". Each party is responsible for its own compliance with Applicable Data Protection Laws, and, except as explicitly set out in this Agreement, neither party relies on the other with respect to its own compliance with Applicable Data Protection Laws.

The Client undertakes, where it transfers personal data to WME, it does so in accordance with the Applicable Data Protection Laws. The Client must ensure that any personal data that it provides to WME is accurate and up to date, and that it promptly notifies WME if it becomes aware that such personal data is incorrect.

Where the Client provides personal data to WME, the Client must first have satisfied the obligations imposed by Applicable Data Protection Laws, including but not limited to the obligation to provide transparency information to affected individuals, and drawn the attention of those individuals to WME's Privacy Notice. In addition, the Client shall promptly notify those individuals of any material changes to the Privacy Notice when advised by WME.

In the event that either party becomes aware of an actual or suspected personal data breach affecting personal data disclosed under, or in connection with this Agreement, that party shall notify the other party without undue delay, and the parties shall use all reasonable endeavours to assist one another in satisfying the requirements of Applicable Data Protection Laws with respect to any such personal data breach.

Under this Section "Applicable Data Protection Laws" means any relevant legislation in force from time to time protecting the fundamental rights and freedoms of individuals and, in particular, their right to privacy with respect to the processing of personal data applicable to a controller in the country or territory in which the controller and/or processor is established, including, but not limited to, such laws as the German Data Protection Act (*Bundesdatenschutzgesetz*) and EU Regulation (EU) 2016/679 (GDPR).

27 GERMAN FREEDOM OF INFORMATION ACT

In relation to the German Freedom of Information Act (*Informationsfreiheitsgesetz*, the "**IFG**"), WME regards all information hereby provided by WME regarding any portfolio management activities conducted by WME on the Client's behalf ("**Information**"), as both confidential and commercially sensitive. Should this information be released into the public domain it could have an impact upon the Client's portfolio and would impact WME's commercial interests as it would be of benefit to WME's competitors and detrimental to WME's current and future business. WME therefore requests that the Client treat the information contained in this Agreement and all Information provided to the Client as both confidential and commercially sensitive.

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The Client shall therefore promptly notify WME in the event that it:

(a) receives a request for information under the IFG which covers information relating to the Agreement, to WME or the services provided by WME (a "**Relevant Request**");

(b) responds to a Relevant Request;

(c) receives a complaint in relation to the handling of a Relevant Request;

(d) becomes aware that an application has been made for a decision in relation to a Relevant Request;

(e) becomes aware that the Federal Commissioner for Data Protection and Freedom of Information ('BfDI') has served any notice on the Client in relation to a Relevant Request;

(f) becomes aware that an appeal has been made to the court in relation to a Relevant Request; or

(g) becomes aware that confidential information relating to WME or the services provided under the Agreement has been or is about to be disclosed to a third party without WME's express written permission;

and in each case shall provide WME with such details as may reasonably be requested by WME.

Responding to a Relevant Request

Upon receipt of a Relevant Request, the Client shall promptly notify to WME of the nature of the Relevant Request and give WME a reasonable opportunity to comment on whether an exemption from the requirement to disclose may be applicable so that the Client is able to take due regard of any such comments before making its response. WME agrees to respond in a timely manner.

28 REGULATION

WME is authorised and regulated by the BaFin and nothing in this Agreement shall exclude, waive or limit any liability of WME to the Client or any right of any person arising under the WpHG, any rules or regulations made under it.

The BaFin's address is Marie-Curie-Str. 24-28, 60439 Frankfurt, and Graurheindorfer Str. 108, 53117 Bonn.

WME is registered under HRB 115460 with the Commercial Register of the Municipal Court of Frankfurt am Main.

Any words or phrases used in this Agreement which are defined in the WpHG shall have the same meanings in this Agreement, notwithstanding anything to the contrary in this Agreement.

29 FORCE MAJEURE

Neither party shall be liable for any failure or delay in performing any of its obligations under or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement if such failure or delay is due to force majeure or other events beyond the control of the party which significantly affects the party's obligations and performance under this Agreement and which it could not have foreseen and avoided using reasonable efforts, including without limitation: acts of God; currency restrictions, devaluations and fluctuations; any act of terrorism; significant changes to the market conditions affecting the execution or settlement of transactions regarding the Account or the value of Account; failure or breakdown in communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and incorrect data feed from unaffiliated third- party data service providers including but not limited to, rating agencies, Bloomberg, WM Daten.

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30 CONSTRUCTION OF AGREEMENT

This Agreement will be construed and the rights and obligations of the parties under this Agreement enforced in accordance with the laws of Germany without consideration of its conflicts of laws rules. The parties agree that the German courts will have exclusive jurisdiction over the parties regarding any dispute arising under this Agreement, for which purpose the parties hereto agree to submit to such jurisdiction. Each party hereto hereby expressly and irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter may have to the laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum. To the extent that any party hereto has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, such party hereby irrevocably waives such immunity in respect of its obligations under this Agreement.

31 REPORTS AND NOTICE

Any notice required or permitted to be given by one party to the other party pursuant to this Agreement will be in writing and will be delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested), express mail or other overnight or express courier service, facsimile transmission or electronic mail transmission to the applicable address for such other party specified below:

To WME at:

Wellington Management Europe GmbH

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

Email: [\*\*\*]

with a copy to:

Wellington Management International Limited

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

Email: [\*\*\*]

and

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No.: [\*\*\*]

Email: [\*\*\*]

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To the Client at:

Accelerant Insurance Europe SA

Bastion Tower, Place du Champ de Mars 5, 1050 Brussels

Attention: [\*\*\*]

with a copy to:

[\*\*\*]

[\*\*\*]

Any notice given in accordance with this Section will be deemed to have been given and received on the date it is delivered or, in the case of any notice by facsimile or electronic mail transmission, the date that receipt of such transmission is confirmed. A party may change the names or addresses where notice is to be given to it by providing notice to the other party of such change in accordance with this Section.

The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by WME under this Agreement, or pursuant to applicable law, rule or regulation, and Client represents that it has the means to, and will access, such disclosures in electronic format. WME shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to WME.

32 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement, which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

33 AMENDMENTS

This Agreement may not be amended without the prior written agreement signed by a duly authorised representative of each party, save that WME may amend this Agreement without the prior written agreement of the Client in order to comply with, or to make this Agreement consistent with, any legal or regulatory requirements or changes to which WME may be subject, by providing written notice to the Client of such amendment.

34 RIGHTS OF THIRD PARTIES

A person who is not a party to this Agreement shall have no right to enforce any of its terms; provided, however, Wellington Management US shall be an express third-party beneficiary hereof, with the right to enforce the terms of this Agreement on behalf of itself.

35 COUNTERPARTS

This Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument. Such executed counterparts may be delivered by one party to the other by facsimile or other electronic transmission, and such counterparts shall be valid for all purposes. This Agreement shall be valid, binding and enforceable against a party hereto only when executed by an authorised individual on behalf of that party by means of (i) a DocuSign<sup>®</sup> or other electronic signature, (ii) an original, manual signature, or (iii) a faxed, scanned or photocopied manual signature. Each DocuSign<sup>®</sup> or other electronic, faxed,

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scanned or photocopied manual signature ("Electronic Signature") shall for all purposes have the same validity, legal effect and admissibility in evidence as an original manual signature and the parties hereto hereby waive any objection to the contrary. Each party executing this Agreement with an Electronic Signature hereby warrants that the type of Electronic Signature it has used is valid and enforceable under applicable law, the officer applying the Electronic Signature has the necessary authority to do so and its use has been duly authorised by appropriate action taken by the party.

[*Signature page follows*.]

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| | |
|:---|:---|
| Signatures | Signatures |
| For and on behalf of **Accelerant Insurance Europe SA** | For and on behalf of **Accelerant Insurance Europe SA** |
| By: | /s/ Jeff Radke |
| Name: Jeff Radke | Name: Jeff Radke |
| Title: Director | Title: Director |
| Agreed and Accepted: | Agreed and Accepted: |
| For and on behalf of Wellington Management Europe GmbH | For and on behalf of Wellington Management Europe GmbH |
| By: | /s/ Susanne Ballauff |
| Name: Susanne Ballauff | Name: Susanne Ballauff |
| Title: Director | Title: Director |

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ATTACHMENT A

INVESTMENT GUIDELINES

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ATTACHMENT B

CLIENT'S AUTHORISED SIGNATORY LIST

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ATTACHMENT C

FEE SCHEDULE

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ATTACHMENT D

REPORTS; COMMUNICATIONS AND OTHER OPERATIONAL MATTERS

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## Exhibit 10.25

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.25** 

***EXECUTION VERSION***

**Investment Management Agreement** 

This AGREEMENT dated as of the 14<sup>th</sup> day of August, 2023, is entered into by and between Accelerant Re (Cayman) Ltd (the "Client"), a Cayman reinsurance insurance carrier organized under the laws of Cayman Islands and Wellington Management Company LLP ("Wellington Management"), a limited liability partnership organized under the laws of the State of Delaware.

1 APPOINTMENT

The Client hereby appoints Wellington Management as investment manager to manage, supervise and direct the Client's investment account or accounts (collectively, the "Account") under the terms and conditions set out in this Agreement. By execution of this Agreement, Wellington Management accepts appointment as investment manager and agrees to manage, supervise and direct the investments of the Account pursuant to the provisions of this Agreement. The assets (including any interest accrued thereon) in the Account managed by Wellington Management pursuant to this Agreement shall remain vested in and owned exclusively by the Client.

Unless otherwise agreed in writing, Wellington Management's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Account custodian, as designated in writing by the Client (the "Custodian"), and Wellington Management have reconciled to Wellington Management's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and Wellington Management's portfolio trading systems (the "Effective Date").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

Wellington Management shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement, subject to the investment objectives and guidelines set out in Attachment A (the "Investment Guidelines") and any instructions from the Client ("Instructions"). Wellington Management shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, conversion or other transactions in any and all stocks, bonds, other securities cash or currencies, and other Account assets, including shares of a registered investment company for which Wellington Management may act as investment adviser and, upon proper authorization by the Client, interests in a collective trust maintained by a bank or trust company or a private fund, including one maintained by an affiliate of Wellington Management (collectively "Wellington Sponsored Funds"), provided there is no duplication of fees paid to Wellington Management on the one hand and any of the Wellington Sponsored Funds on the other hand. Wellington Management's authority to act on behalf of the Client with regard to the Wellington Sponsored Funds is limited to engaging in authorized trading on behalf of the Account and transferring capital for purposes of authorized trading within the Account only. To the extent that Wellington Management is authorized to invest in private funds under the guidelines, Wellington Management is authorized to enter into voting agreements in connection with the purchase or sale of an investment in private companies. Upon prior written notice to the Client, Wellington Management may engage any of its affiliates, to assist it with providing its services under this Agreement (including affiliates outside of the United States), provided that Wellington Management will remain responsible for the performance of its obligations under the Agreement. Wellington Management's engagement of such affiliates shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's affiliates, and such affiliates shall be subject to the same confidentiality provisions as Wellington Management under this Agreement.

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3 DISCRETIONARY AUTHORITY- BROKER SELECTION AND TRADING

Wellington Management shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("Brokers"). Wellington Management may select Brokers, including those which from time to time may furnish to Wellington Management or its affiliates statistical and investment research or execution services in accordance with Section 28(e) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). Wellington Management's Broker selection shall be conducted in accordance with its Policy and Procedures on Order Execution, as may be amended from time to time, and which is available upon request.

The Client acknowledges Brokers may request information about the Client from Wellington Management in connection with the Brokers' anti-money laundering or client identification obligations. Wellington Management is hereby authorized to furnish such information to such Broker based on information provided to Wellington Management by the Client. In addition, the Client agrees that, upon written request, the Client will promptly provide Wellington Management with such information about the Client or documentation relating to it as Wellington Management may reasonably request in order to respond to a Broker's request. Wellington Management shall maintain all such information and documentation as confidential, and will comply with all applicable data privacy laws and regulations, and implement appropriate technical and non-technical safeguards, with respect to such information and documentation. In certain circumstances, Wellington Management may require the Client to enter into trading or other agreements directly with a Broker.

Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of Brokers and shall seek "best execution" of Client trades, considering all relevant circumstances. Subject thereto, neither Wellington Management nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client where Wellington Management has acted in accordance with its standard of care regarding the selection of such Brokers. Unless otherwise instructed by the Client in writing, Wellington Management will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian.

Wellington Management may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by Wellington Management on behalf of Wellington Management's other clients. Such aggregated orders (including associated expenses) will be allocated by Wellington Management as set forth in Wellington Management's Policy and Procedures Regarding Allocation of Trades as may be amended from time to time. A copy of this policy is available upon request. In addition, subject to applicable laws. rules and regulation, Wellington Management may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of Wellington Management as set forth in Wellington Management's Policy and Procedures on Order Execution.

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|:---|:---|
| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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Wellington Management makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that the Investment Guidelines are and will remain consistent with and include the provisions of law, regulatory policies and organizational documents applicable to the Client.

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Subject to any provision in the Investment Guidelines to the contrary, Wellington Management shall apply Investment Guidelines as follows: (i) asset-based restrictions (e.g., exposure and concentration limits) shall be applied at the time of acquisition based on the market value of the investments versus the total net assets of the Account; and (ii) credit ratings for issuers and counterparties will be determined by reference to the ratings assigned by a Nationally Recognized Statistical Rating Organization, as defined in the Exchange Act (with Wellington Management determining the appropriate rating in the case of split ratings) and/or the credit rating assigned by Wellington Management. Ambiguities in the Investment Guidelines may be interpreted by Wellington Management in good faith and consistent with its fiduciary duty to the Client. In the case of such interpretations, Wellington Management shall manage the Account in the best interests of the Client, and Wellington Management shall provide notification of such interpretations to the Client as soon as reasonably practicable.

Wellington Management may, at its expense, utilize unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions.

The Client may give Instructions to Wellington Management or modify the Investment Guidelines at any time. Wellington Management shall have a reasonable period to comply with Instructions and/or bring the Account into compliance with any changes to the Investment Guidelines. The Client covenants that any Instructions or modifications to Investment Guidelines shall be consistent with the provisions of law, regulatory policies and organizational documents applicable to the Client, and the Client agrees to indemnify and hold harmless Wellington Management from any act or omission taken by Wellington Management in accordance with Client Instructions.

5 TAX MATTERS

Except as otherwise specified in the Investment Guidelines, Wellington Management will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by Wellington Management on behalf of the Account. Neither Wellington Management nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

6 APPRAISAL OF ACCOUNT AND VALUATION

Wellington Management will provide the Client with a monthly and quarterly appraisal of the Account as of the last day on which the New York Stock Exchange is open for each calendar month or quarter as applicable (the "Appraisal Date"). Such appraisal will be in the form of a written summary of assets of the Account on the Appraisal Date, based on Wellington Management's trading records and Pricing Policies and Procedures, and will be provided to the Client solely for informational purposes.

Wellington Management endeavors to value all securities at fair market value as determined by Wellington Management in good faith and in accordance with its Pricing Policies and Procedures, as may be amended from time to time. A copy of these policies and procedures are available upon request. Wellington Management is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

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7 MANAGEMENT FEE

The Client will pay to Wellington Management a management fee as set forth Attachment B (the "Management Fee").

The Management Fee is exclusive of any taxes payable by the Client (including value added taxes), and to the extent that any such taxes serve to reduce the amount received by Wellington Management for its services hereunder (not including taxes properly paid or to be paid by Wellington Management such as income taxes), the Client agrees to pay Wellington Management an additional amount such that Wellington Management receives the full Management Fee.

8 PROCEDURES

All transactions will be consummated by payment to, or delivery by the Custodian, of all cash and/or securities due to or from the Account according to local market settlement conventions. Wellington Management shall not act as custodian for the Account. Notwithstanding any other provision in this Agreement, Wellington Management shall not hold, directly or indirectly, funds or securities contained in the Account or have any authority to obtain possession of them. Instructions by Wellington Management to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of Wellington Management, orally and confirmed by such transmission method as soon as practicable thereafter.

Wellington Management shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide Wellington Management with such periodic reports concerning the status of the Account as Wellington Management may reasonably request.

Neither Wellington Management nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, Wellington Management does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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| 9 | PROXIES  |

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The Client instructs Wellington Management to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorizes Wellington Management to instruct the Custodian to forward promptly to Wellington Management only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that Wellington Management will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

10 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

Wellington Management will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other third-party legal proceeding related to securities currently or previously held in the Account ("Legal Proceedings"). Wellington Management shall provide factual information relating to Client's account in its possession as the Client may reasonably request. Client shall pay or reimburse costs actually and reasonably incurred by Wellington Management in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of Wellington Management's roles and responsibilities under this Agreement.

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11 SERVICE TO OTHER CLIENTS

It is understood that Wellington Management and its affiliates provide investment management and advisory services for other clients, including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that Wellington Management or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. Wellington Management shall not be precluded from any of the foregoing activities, *provided* such activities do not otherwise result in a breach of this Agreement including, without limitation, Section 18 (Confidentiality).

12 STANDARD OF CARE; LIABILITY

Wellington Management shall discharge its duties under this Agreement with the care, skill, prudence and diligence that a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), acting in a like capacity would use in the conduct of a like enterprise with like aims, taking into consideration the facts and circumstances then prevailing and consistent with the Investment Guidelines. Unless Wellington Management has breached the standard of care set forth in this Agreement or under applicable law, Wellington Management shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under the Agreement including acts or omissions made in response to Client Instructions, except to the extent such act or omission constitutes a material breach of this Agreement, wilful misfeasance, bad faith or gross negligence on the part of Wellington Management, or any of its affiliates or delegates. Nothing herein in any way constitutes a waiver or limitation of any right of any person under any applicable federal or state securities laws of the United States of America.

In no event shall either party or any of its affiliates be liable hereunder for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

13 REPRESENTATIONS BY WELLINGTON MANAGEMENT

By execution of the Agreement, Wellington Management represents that: (i) it is duly registered as an Investment Adviser with the Securities and Exchange Commission pursuant to the Advisers Act and that it provided the Client with Part 2 of its registration statement on Form ADV (the "Form ADV")<sup>1</sup> prior to signing the Agreement; (ii) it will notify the Client of any additions to or withdrawals of partners of Wellington Management within a reasonable time after such additions or withdrawals; (iii) it is in compliance with, and shall perform its obligations hereunder in compliance with, all applicable laws and regulations, including, without limitation, maintaining all necessary licenses and consents, (iv) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon Wellington Management in accordance with its terms; and (v) all representations made under this Agreement are true and accurate. Wellington Management covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate and that the Client may rely on the accuracy of such representations in its performance hereunder. Wellington Management agrees to notify the Client promptly of any changes to the representations made in this Section that would result in a representation becoming untrue.

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------

14 REPRESENTATIONS BY THE CLIENT

By execution of the Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Client has received a copy of Part 2 of Wellington Management's Form ADV; and (iv) all representations made under this Agreement are true and accurate. The Client covenants that any future representations made to Wellington Management under or relating to this Agreement shall be true and accurate and that Wellington Management may rely on the accuracy of such representations in the performance of its duties hereunder.

The Client further represents that (i) the Account is not comprised of "plan assets," as such term is defined under the Employee Retirement Income Security Act of 1974, as amended; (ii) the Client is not a "private fund" as defined under the Advisers Act. Client agrees to notify Wellington Management promptly of any changes to the representations made in the aforementioned paragraphs that would result in a representation becoming untrue.

The Client additionally agrees to each of the representations, warranties and agreements set forth in Attachment C, Master Agreement Representations.

15 USE OF SERVICE PROVIDERS

Wellington Management may employ third party agents to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding, and corporate action processing, required to enable Wellington Management to perform the services under this Agreement. Upon the Client's written request, Wellington Management shall identify any such third party agents to Client in writing, with such details as Client may reasonable request. Client authorizes Wellington Management to provide necessary information about the Client and the Client's investments to such third party agents to perform such services, *provided* that to the extent confidential information is shared with such third-party agents, any such third party agents is also bound by confidentiality and use obligations at least as protective as those herein, , and when reasonably requested by the Client, Wellington Management shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of agents, and the Client will not be responsible for any fees which any agent may charge in connection with such services. Wellington Management will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has employed third party agents to perform any administrative or ancillary services. Wellington Management's engagement of such agents shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's agents.

16 ASSIGNMENT

No assignment (as defined in the Advisers Act) of the Agreement shall be made by either party without prior written consent of the other party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

17 TERM AND TERMINATION

The Client may terminate this Agreement at any time by providing written notice to Wellington Management. Wellington Management may terminate this Agreement (i) by giving three (3) months' prior written notice to the Client, or (ii) with immediate effect by providing written notice to the Client if so required by an competent regulatory authority or law. The Agreement will continue until terminated by either party in accordance with the terms of this Section 17, or such shorter time period as mutually agreed by the parties. Additionally, the Agreement will automatically terminate upon withdrawal by Client of all assets held in the Account unless otherwise agreed to by the parties. Upon termination, Wellington Management will provide reasonable assistance to Client in transitioning the Account to a successor manager or in liquidating the Account; however, Wellington Management will retain no responsibility or authority over any account assets that cannot be liquidated at the time of termination.

18 CONFIDENTIALITY

Wellington Management and the Client acknowledge and agree that during the term of this Agreement the parties may have access to information that is proprietary or confidential to both parties or their respective affiliates ("Confidential Information"). For the purposes of this Section 18, the party receiving the other party's Confidential Information shall be referred to as the 'receiving party' and the party disclosing such Confidential Information shall be referred to as the 'disclosing party'.

At all times Confidential Information shall be handled at least with the same standard of confidentiality accorded the most sensitive and confidential documents and information of the receiving party, but no less than a commercially reasonable standard of care. The receiving party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the receiving party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the receiving party (collectively, "Representatives") who have a need to know for purposes of this Agreement; and the receiving party shall be responsible to the disclosing party for any breach of this Section by any of the receiving party's Representatives. The receiving party shall promptly notify the disclosing party in writing in the event it becomes aware of any loss or unauthorized disclosure of any Confidential Information by the receiving party or its Representatives. Confidential Information shall not include any information that (i) is or becomes publicly available other than as a result of a breach of this Agreement, (ii) is or becomes available on a non-confidential basis to the receiving party from a source which is not known to the receiving party to be subject to a duty of confidentiality with respect to such information, (iii) was legally in the receiving party's possession prior to disclosure by the disclosing party without any obligation of confidentiality, (iv) is developed by or for the receiving party independently of the disclosing party's Confidential Information; or (v) is expressly approved for release by written authorization of the disclosing party.

In the event that the receiving party is requested or required by legal or regulatory authority, law or legal process (including subpoenas) (such request or requirement, a "Demand") to disclose any Confidential Information, the receiving party shall promptly notify the disclosing party of such Demand as reasonable under the circumstances, and only to the extent permitted by law. In the event that a protective order or other remedy is not obtained, the receiving party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The receiving party will provide reasonable cooperation to the disclosing party and its legal counsel with respect to any Demand. Any expenses incurred by the receiving party in complying with this section shall be at the sole cost of the disclosing party.

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In addition, the Client acknowledges that Wellington Management may disclose information relating to its investment activities in the normal course of business, including information relating to the Account, provided that no information identifying the Client may be shared.

The Client agrees not to make use of the investment decisions or recommendations of Wellington Management, other than with respect to the Account, without the prior written consent of Wellington Management. In addition, each party shall use its best efforts to ensure that any of its agents or affiliates who may gain access to Confidential Information shall be made aware of its proprietary nature and shall likewise treat it as confidential.

Upon either party's written request each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The terms of this Section shall survive the expiration or termination of this Agreement, and the disclosing party shall be entitled to seek injunctive relief for any violation of this Section.

19 USE OF NAME AND LOGO

Wellington Management shall provide to the Client, upon reasonable request, information relating to Wellington Management and its services to the Account for inclusion in any promotional or disclosure materials relating to the Account. Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from the such party's unauthorized use of the other party's name and logo in marketing materials.

20 FORCE MAJEURE

No party to this Agreement will be liable for any failure or delay in performing any of its obligations under or pursuant to the Agreement, and any such failure or delay in performing its obligations will not constitute a breach of the Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control. Any such non-performing party will be entitled to a reasonable extension of the time for performing such obligations. Events outside a party's reasonable control include any event or circumstance that the party is unable to avoid using reasonable skill and care.

21 CONSTRUCTION OF AGREEMENT

The Agreement will be construed and the rights and obligations of the parties under the Agreement enforced in accordance with the laws of the State of Delaware (without regard to its conflict of laws provisions and interpretations) to the extent not pre-empted by applicable federal laws of the United States. The parties agree that the courts of the State of Delaware will have non-exclusive jurisdiction over the parties regarding any dispute arising under this Agreement.

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22 REPORTS AND NOTICE

Any notice to be given pursuant to the Agreement will be deemed to have been duly given or made as of the date delivered or transmitted, and will be effective upon receipt, if delivered personally, mailed by registered or certified mail (postage prepaid, return receipt requested) to the following addresses, or sent by electronic transmission to the fax number specified below:

To Wellington Management at:

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

To the Client at: Accelerant Re (Cayman) Ltd

Accelerant Re (Cayman) Ltd.

PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands

Attention: [\*\*\*]

With a copy to: [\*\*\*]

The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by Wellington Management under this Agreement, or pursuant to applicable law, rule or regulation, including delivery of Part 2 of Wellington Management's Form ADV and any updates thereto, and Client represents that it has the means to, and will access, such disclosures in electronic format. Wellington Management shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to Wellington Management.

23 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement. which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

24 AMENDMENTS

The Agreement may be amended only by means of a written document signed by a duly authorized representative of each party.

25 COUNTERPARTS

The Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.

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26 ELECTRONIC SIGNATURES

The parties agree that this Agreement and any documents related hereto may be electronically signed. The parties agree that any electronic signatures appearing on this Agreement and any related documents are the same as handwritten signatures for the purposes of validity, enforceability and admissibility.

---

| | |
|:---|:---|
| Signatures | Signatures |
| Accelerant Re (Cayman) Ltd | Accelerant Re (Cayman) Ltd |
| By: | /s/ Robin Bond |
| Name: | Robin Bond |
| Title: | Director |
| Agreed and Accepted: | Agreed and Accepted: |
| Wellington Management Company LLP | Wellington Management Company LLP |
| By: | /s/ Desmond Havlicek |
| <sub>Name: </sub> | Desmond Havlicek |
| <sup>Title:</sup> | Senior Managing Director |

---

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ATTACHMENT A

INVESTMENT OBJECTIVES AND GUIDELINES

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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ATTACHMENT B

FEE SCHEDULE

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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ATTACHMENT C

MASTER AGREEMENTS REPRESENTATIONS

------

## Exhibit 10.26

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.26** 

***EXECUTION VERSION***

---

| | |
|:---|:---|
| ![LOGO](g543111dsp56.jpg) | **Mark Sheahan, CFA** |
| ![LOGO](g543111dsp56.jpg) | [\*\*\*] |
| ![LOGO](g543111dsp56.jpg) | [\*\*\*]<br> [\*\*\*]<br> www.mercer.com |

---

**Private and Confidential** 

Accelerant Re (Cayman) Ltd

16th August 2022

**Engagement Letter – Investment Services** 

Dear Craig,

We refer to previous correspondence relating to the appointment of Mercer Global Investments Europe Limited ("**Mercer**") to provide services to Accelerant Re (Cayman) Ltd (the "**Client**"). We are delighted to work with the Client and have set out below the basis on which Mercer will provide the services to the Client.

This engagement letter (including all the schedules) (the "**Engagement Letter**") incorporates the attached Mercer terms and conditions (the "**Terms & Conditions**") (together the "**Agreement**").

---

| | |
|:---|:---|
| **1** | **Scope of Services**  |

---

1.1. The activities set out in Schedule 1 constitute the services provided by Mercer to the Client (the
" **Services** "). Any variation to the scope of the Services to be provided by Mercer must be agreed in writing between Mercer and the Client. It is further agreed that any variation to the scope of the Services shall be covered by the
Terms & Conditions.

1.2. If Mercer is to provide services or advice in addition to the Services listed in Schedule 1 then a separate
engagement letter setting out the scope and associated fees for those additional services will be issued by Mercer. For the avoidance of doubt, such additional services and/or advice will be subject to the Terms & Conditions.

1.3. Mercer is unable to provide insurance or reinsurance broking, risk consulting, claims or other services or
provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose Mercer or its affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions or under other trade
or economic sanctions, laws or regulations.

---

| | |
|:---|:---|
| Mercer Global Investments Europe Ltd, trading as Mercer, is regulated by the Central Bank of Ireland. |  |
| Registered Office: [\*\*\*] |  |
| Directors: [\*\*\*] |  |
|  | A business of Marsh McLennan |

---

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![LOGO](g543111dsp110.jpg)

Accelerant Re (Cayman) Ltd

---

| | |
|:---|:---|
| **2** | **Appointment**  |

---

2.1. The Client appoints Mercer to supply the Services to the Client in consideration of the Client paying, or
causing to be paid, the Fees (as defined in the Terms & Conditions). The appointment is on the terms set out in this Agreement and is with effect from the Effective Date (as defined in the Terms & Conditions). Mercer will provide
the Services as stated and accordingly, unless otherwise agreed in writing between Mercer and the Client, will not be responsible for keeping any aspect of the Client's affairs under review.

2.2. The persons who are the directors of the Client at the date of this Agreement will use their reasonable
endeavours in order that this Agreement operates for the benefit of and is binding upon their successors in this role.

---

| | |
|:---|:---|
| **3** | **Fees and Expenses**  |

---

3.1. Mercer's Fees for the provision of the Services are set out in Schedule 1 (the "**Fees** ").
Any changes to the Fees will be agreed in writing between Mercer and the Client.

---

| | |
|:---|:---|
| **4** | **Instructions and Reporting**  |

---

4.1. Mercer will accept instructions from any two authorised signatories (or any successor advised to Mercer by the
Client in writing) or any persons nominated by the Client in writing from time to time. Mercer will report to the Board of Directors (or any successor advised to Mercer by the Client in writing) or to the person who gave the instructions.
Instructions to and reports from Mercer may be provided either in writing or, where appropriate, orally.

---

| | |
|:---|:---|
| **5** | **Timescales**  |

---

5.1. Mercer will work with the Client to ensure that the Client complies with any applicable legislative or other
deadlines. Mercer's ability to meet any timetable set by law or agreed with the Client is dependent on the Client fulfilling its obligations in respect of this Agreement.

5.2. The Agreement may be terminated in accordance with the Terms & Conditions, as amended by Schedule 1
hereto.

---

| | |
|:---|:---|
| **6** | **Advice on Tax and Legal Matters**  |

---

6.1. Mercer has not been engaged to render advice on tax or legal issues and therefore any comments or advice given
by Mercer on tax or legal issues or draft documents that codify or create tax obligations or legal rights should not be construed as such tax or legal advice, which can only be provided by a tax adviser or law firm and for which the Client should
seek appropriate advice.

---

| | |
|:---|:---|
| **7** | **Limitation of Liability**  |

---

7.1. Paragraph 5 of the Terms & Conditions sets out the provisions limiting Mercer's liability in
respect of this Agreement.

---

| | |
|:---|:---|
| **8** | **Conflicts of Interest**  |

---

8.1. The Client acknowledges and agrees that Mercer may provide services to other clients including acting for them
on a transaction which may affect your interests, including, but not limited to, providing pension scheme related advice in relation to the sale or purchase of the sponsoring company or related corporate entities.

------

![LOGO](g543111dsp110.jpg)

Accelerant Re (Cayman) Ltd

8.2. If Mercer becomes aware of such appointments, we will address any conflicts that could arise, as appropriate.
In doing so, Mercer will maintain suitable measures, including security arrangements within electronic systems and appropriate physical separation of teams, intended to prevent inappropriate access to information by one of our advisory teams about
work relating to advice provided to a different client by another team. We will comply with our conflicts policies and information barrier protocols.

8.3. The Client acknowledges that, in these circumstances, in the event that the team advising you acquires material
information from any other client (or potential client), we are not under any obligation to disclose that information to you or use it for your benefit if the disclosure of such information would (or might) be a breach of duty of confidentiality
owed to any other client.

8.4. Mercer's Investments business is committed to ethical and transparent business practices. Notwithstanding
paragraph 7 of the Terms & Conditions, Mercer manages its conflicts of interest in a manner that safeguards the interests of its clients. Mercer is pleased to provide a conflict of interest disclosure statement for its Investments business
at <u>https://investment-solutions.mercer.com/</u> 

Should the Client wish to discuss any matter in this Agreement it should not hesitate to contact Mercer.

The Client should acknowledge its agreement to the terms of this Agreement by returning a signed copy of this Agreement to Mercer. If the Client has requested that Mercer begin work before receiving a signed copy of the Agreement, Mercer agrees to do so but will not provide any advice, deliverables or work product until Mercer has received the signed Agreement and the Client agrees that the Client will be responsible for any fees incurred during that period.

Yours sincerely

/s/ Mark Sheahan

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**For and on behalf of Mercer Global Investments Europe Limited** 

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![LOGO](g543111dsp110.jpg)

Accelerant Re (Cayman) Ltd

For and on behalf of **Accelerant Re (Cayman) Ltd,** we agree to the terms of this Agreement.

---

| | |
|:---|:---|
| Signed: | /s/ Robin Bond |
| Name: | Robin Bond |
| Date: | 09/08/2022 |
| Signed: | /s/ Craig Nicholls |
| Name: | Craig Nicholls |
| Date: | 01/08/2022 |

---

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![LOGO](g543111dsp110.jpg)

29 July 2022

**Schedule 1** 

**Services**

## Exhibit 10.27

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.27** 

***EXECUTION VERSION***

[\*\*\*]

![LOGO](g543111g0112232240489.jpg)

**Private and Confidential** 

Accelerant Re Ltd

Victoria Place,

31 Victoria Street,

Hamilton, Bermuda.

13 May 2022

**Engagement Letter — Investment Services** 

Dear Robin,

We refer to previous correspondence relating to the appointment of Mercer Global Investments Europe Limited **("Mercer")** to provide services to Accelerant Re Ltd (the **"Client").** We are delighted to work with the Client and have set out below the basis on which Mercer will provide the services to the Client.

This engagement letter (including all the schedules) (the **"Engagement Letter")** incorporates the attached Mercer terms and conditions (the **"Terms & Conditions")** (together the **"Agreement").**

---

| | |
|:---|:---|
| **1** | **Scope of Services**  |

---

1.1. The activities set out in Schedule 1 constitute the services provided by Mercer to the Client (the **"Services").** Any variation to the scope of the Services to be provided by Mercer must be agreed in writing between Mercer and the Client. It is further agreed that any variation to the scope of the Services shall be covered by the
Terms & Conditions.

1.2. If Mercer is to provide services or advice in addition to the Services listed in Schedule 1 then a separate
engagement letter setting out the scope and associated fees for those additional services will be issued by Mercer. For the avoidance of doubt, such additional services and/or advice will be subject to the Terms & Conditions.

1.3. Mercer is unable to provide insurance or reinsurance broking, risk consulting, claims or other services or
provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose Mercer or its affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions or under other trade
or economic sanctions, laws or regulations.

---

| | |
|:---|:---|
| **2** | **Appointment**  |

---

2.1. The Client appoints Mercer to supply the Services to the Client in consideration of the Client paying, or
causing to be paid, the Fees (as defined in the Terms & Conditions). The appointment is on the terms set out in this Agreement and is with effect from the Effective Date (as defined in the Terms & Conditions). Mercer will provide
the Services as stated and accordingly, unless otherwise agreed in writing between Mercer and the Client, will not be responsible for keeping any aspect of the Client's affairs under review.

Mercer Global Investments Europe Ltd, trading as Mercer, is regulated by the Central Bank of Ireland. Registered Office: [\*\*\*]. Directors: [\*\*\*]. A business of Marsh McLennan

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![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

---

| | |
|:---|:---|
| **3** | **Fees and Expenses**  |

---

3.1. Mercer's Fees for the provision of the Services are set out in Schedule 2. Any changes to the Fees will be
agreed in writing between Mercer and the Client.

---

| | |
|:---|:---|
| **4** | **Instructions and Reporting**  |

---

4.1. Mercer will accept instructions from a **n** y two authorised signatories (or any successor advised to Mercer
by the Client in writing) or any persons nominated by the Client in writing from time to time. Mercer will report to the Board of Directors (or any successor advised to Mercer by the Client in writing) or to the person who gave the instructions.
Instructions to and reports from Mercer may be provided either in writing or, where appropriate, orally.

---

| | |
|:---|:---|
| **5** | **Timescales**  |

---

5.1. Mercer will work with the Client to ensure that the Client complies with any applicable legislative or other
deadlines. Mercer's ability to meet any timetable set by law or agreed with the Client is dependent on the Client fulfilling its obligations in respect of this Agreement.

5.2. The Agreement may be terminated in accordance with the Terms & Conditions, as amended by Schedule **1** hereto.

---

| | |
|:---|:---|
| **6** | **Advice on Tax and Legal Matters**  |

---

6.1. Mercer has not been engaged to render advice on tax or legal issues and therefore any comments or advice given
by Mercer on tax or legal issues or draft documents that codify or create tax obligations or legal rights should not be construed as such tax or legal advice, which can only be provided by a tax adviser or law firm and for which the Client should
seek appropriate advice.

---

| | |
|:---|:---|
| **7** | **Limitation of Liability**  |

---

7.1. Paragraph 5 of the Terms & Conditions sets out the provisions limiting Mercer's liability in
respect of this Agreement.

---

| | |
|:---|:---|
| **8** | **Conflicts of Interest**  |

---

8.1. The Client acknowledges and agrees that Mercer may provide services to other clients including acting for them
on a transaction which may affect your interests, including, but not limited to, providing pension scheme related advice in relation to the sale or purchase of the sponsoring company or related corporate entities.

8.2. If Mercer becomes aware of such appointments, we will address any conflicts that could arise, as appropriate.
In doing so, Mercer will maintain suitable measures, including security arrangements within electronic systems and appropriate physical separation of teams, intended to prevent inappropriate access to information by one of our advisory teams about
work relating to advice provided to a different client by another team. We will comply with our conflicts policies and information barrier protocols.

8.3. The Client acknowledges that, in these circumstances, in the event that the team advising you acquires material
information from any other client (or potential client), we are not under any obligation to disclose that information to you or use it for your benefit if the disclosure of such information would (or might) be a breach of duty of confidentiality
owed to any other client.

------

![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

8.4. Mercer's Investments business is committed to ethical and transparent business practices. Notwithstanding
paragraph 7 of the Terms & Conditions, Mercer manages its conflicts of interest in a manner that safeguards the interests of its clients. Mercer is pleased to provide a conflict of interest disclosure statement for its Investments
business <u>atwww.mercer.ie/about-us/regulated-in-ireland.html.</u> Should the Client wish to discuss any matter in this
Agreement it should not hesitate to contact Mercer.

The Client should acknowledge its agreement to the terms of this Agreement by returning a signed copy of this Agreement to Mercer. If the Client has requested that Mercer begin work before receiving a signed copy of the Agreement, Mercer agrees to do so but will not provide any advice, deliverables or work product until Mercer has received the signed Agreement and the Client agrees that the Client will be responsible for any fees incurred during that period.

---

| |
|:---|
|  Yours sincerely |
| /s/ Milo Kerr |

---

**For and on behalf of Mercer Global Investments Europe Limited** 

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![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

**For and on behalf of Accelerant Re Ltd, we agree to the terms of this Agreement.** 

---

| | |
|:---|:---|
| Signed: | /s/ Robin Bond |
| Name: | Robin Bond |
| Date: | 13 May 2022 |
| Signed: | /s/ Craig Nicholls |
| Name: | Craig Nicholls |
| Date: | 13 May 2022 |

---

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![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

**Schedule 1** 

**Services** 

------

![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

**Schedule 2** 

**Fees** 

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![LOGO](g543111g0112232240489.jpg)

Accelerant Re Ltd

**MERCER GLOBAL INVESTMENTS EUROPE LIMITED** 

**TERMS AND CONDITIONS**

## Exhibit 10.28

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.28** 

***EXECUTION VERSION***

**DATED OF 20 July 2022** 

**MERCER GLOBAL INVESTMENTS EUROPE LIMITED** 

**AND** 

**ACCELERANT RE LTD** 

**INVESTMENT** 

**MANAGEMENT** 

**AGREEMENT** 

*Investment Management Agreement Bermuda*

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**CONTENTS** 

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|:---|:---|:---|
|  |  | **Page No** |
| 1. | **INTERPRETATION** | 1 |
| 2. | **REGULATORY AND CORPORATE STATUS** | 3 |
| 3. | **APPOINTMENT AND ACCEPTANCE OF MANAGER** | 3 |
| 4. | **DUTIES OF MANAGER** | 4 |
| 5. | **DELEGATION AND USE OF AGENTS** | 4 |
| 6. | **BANKING AND CUSTODY** | 5 |
| 7. | **STATEMENTS AND REPORTS** | 5 |
| 8. | **DEALING** | 6 |
| 9. | **MATERIAL INTERESTS AND DISCLOSURES** | 6 |
| 10. | **FEES AND CHARGES** | 6 |
| 11. | **LIABILITY AND INDEMNITY** | 7 |
| 12. | **CLIENT'S REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS** | 8 |
| 13. | **INSTRUCTIONS AND OTHER COMMUNICATIONS** | 10 |
| 14. | **AMENDMENTS** | 11 |
| 15. | **COMPLAINTS** | 11 |
| 16. | **TERMINATION OF AGREEMENT** | 11 |
| 17. | **CONFIDENTIALITY AND DISCLOSURE; DATA PROTECTION** | 11 |
| 18. | **ASSIGNMENT AND NOVATION** | 13 |
| 19. | **GOVERNING LAW AND DISPUTE RESOLUTION** | 13 |
| 20. | **FORCE MAJEURE** | 13 |
| 21. | **PROVISION OF THIRD PARTY INFORMATION** | 13 |
| 22. | **ADDITIONAL PROVISIONS** | 14 |
| 23. | **RISK WARNINGS AND NOTIFICATIONS** | 14 |
| 24. | **INSURANCE LEGISLATION** | 14 |
|  APPENDIX A - APPLICATION FORM FOR SHARES IN MERCER FUNDS | APPENDIX A - APPLICATION FORM FOR SHARES IN MERCER FUNDS | 16 |
|  APPENDIX B - INVESTMENT GUIDELINES | APPENDIX B - INVESTMENT GUIDELINES | 22 |
|  APPENDIX C - FEE PROVISIONS | APPENDIX C - FEE PROVISIONS | 23 |
|  APPENDIX D - RISK WARNINGS | APPENDIX D - RISK WARNINGS | 24 |

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ii

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**THIS AGREEMENT is made on 20th day of July 2022** 

**BETWEEN** 

(1) **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** having its registered office at [\*\*\*] (hereafter called the
"Manager");

AND

(2) **ACCELERANT RE LTD** (the "Client"), having its registered office at Victoria Place, 31 Victoria
Street, Hamilton, Bermuda.

WHEREAS, the Client has authority to appoint managers to manage its assets and to provide certain services, as described herein;

WHEREAS, the Client has determined to appoint the Manager to manage such assets as are referred to in the Application Form and to provide certain services, in accordance with the provisions hereof;

WHEREAS, the Manager has agreed to accept such responsibility in accordance with the provisions hereof; and

WHEREAS, the Client will also execute the Application Form for shares or units in the Mercer Funds, as set out in Appendix A.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

**1.** **INTERPRETATION.** 

1.1 Definitions

In this Agreement, including the recitals above, except where the context otherwise requires, the following terms have the meaning assigned to them:

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|:---|:---|
| **"Account"** | such portfolio or portfolios of securities, and/or other assets managed by the Manager under this Agreement and invested in share classes of the Mercer Funds in accordance with the Application Form and the Investment Guidelines; |
| **"Affiliate"** | any direct or indirect subsidiary of the Manager or any direct or indirect subsidiary of any direct or indirect holding company of the Manager; |
| **"Application Form"** | the application form set forth in Appendix A hereto in respect of the Mercer Funds; |
| **"Business Day"** | a day which is a bank business day in Ireland; |
| **"Central Bank"** | the Central Bank of Ireland or such other person or body appointed or nominated to perform the functions of a financial regulator from time to time; |
| **"Claim"** | any claim, action, proceeding, investigation, demand, judgment, or award which may be brought, made, threatened or alleged; |
| **"Effective Date"** | the later of the date on which (i) the Manager receives notification from the Mercer Funds of the satisfactory receipt and acceptance of the Client's subscription to the Mercer Funds; and (ii) the parties have executed this Agreement; |

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|:---|:---|
| **"Ex-Ante Costs and Charges"** | means the MIFID costs and charges disclosure requirements, which the Manager will provide in good time before provision of the relevant service and also pursuant to Appendix C; |
| **"Information"** | any information supplied to the Manager by the Client (or on behalf of the Client) from time to time; |
| **"Investment Guidelines"** | the investment guidelines set forth in Appendix B hereto and any investment restrictions set forth therein, as may be amended from time to time in writing between the parties; |
| **"Losses"** | any losses, costs, charges, damages, fines, compensation or expenses (including legal fees properly incurred); |
| **"Mercer Funds"** | any collective investment scheme, including investment companies, common contractual funds, unit trusts and limited partnerships, for which Mercer Global Investments Europe Limited or any Affiliate serves as investment manager, including, without limitation, MGI Funds plc, Mercer UCITS Common Contractual Fund, Mercer QIF Fund plc, Mercer PIF Fund plc, Mercer QIF CCF and any sub-fund thereof; |
| **"MiFID"** | Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 and Commission Regulation (EU) No 600/2014 of 15 May 2014 and any applicable implementing EU legislation, delegated acts (directives or regulations), technical standards and including without limitation, and any and all Central Bank regulations, notices, guidance notes and codes of conduct issued thereunder. |
| **"Prospectus"** | any prospectus issued by the Mercer Funds, any Supplement designed to be read and construed together with and to form part of a prospectus and the Mercer Funds' most recent annual report and accounts (if issued) or, if more recent, its interim report and accounts; |
| **"Supplement"** | any supplement issued by the Mercer Funds in relation to a sub-fund of a Mercer Fund; |
| **"Trading Venue"** | a regulated market, a multi-lateral trading facility or an organised trading facility (as those terms are defined under MiFID); and |
| **"Warranties"** | the warranties as set forth in clause 12 hereof. |

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1.2 Further Definitions

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any reference to the singular includes reference to the plural and vice versa and reference to the masculine
gender includes reference to the feminine and neuter genders and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unless otherwise expressly stated to the contrary herein, any reference to any clause, sub-clause, paragraph or
sub-paragraph (as the case may be) shall be deemed to be a reference to the relevant clause, sub-clause, paragraph or sub-paragraph (as the case may be) of or to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any reference to persons includes reference to any legal person and to any body corporate, unincorporated
association, partnership, limited partnership, trust, unit trust, mutual fund or other collective investment scheme and the manager or trustee of any such collective investment scheme;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except where otherwise indicated, words or phrases defined in MiFID shall have the same meanings in this
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the headings are inserted for convenience of reference only and shall not in any way form part of or affect or
be taken into account in the construction or interpretation of any provision of this Agreement or the Schedules hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) words such as "hereunder", "hereto", "hereof" and "herein" and other
words commencing with "here" shall, unless otherwise expressly stated to the contrary herein, refer to the particular clause, sub-clause, paragraph, sub-paragraph or Appendix of or to this Agreement or, as the context may require, to the
whole of this Agreement.

1.3 Unless the context otherwise requires, any reference to a statute or a statutory provision shall include such
statute or provision as from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder. Any reference to a statute or
a statutory provision shall also include any subordinate legislation made from time to time under that statute or provision.

**2.** **REGULATORY AND CORPORATE STATUS** 

2.1 The Manager is a private limited liability company incorporated in Ireland and authorised and regulated by the
Central Bank pursuant to MiFID. The Manager also serves as investment manager of the Mercer Funds. The Manager does not provide services under this Agreement in or from Bermuda.

2.2 For the purposes of MiFID and based on information obtained in respect of the Client, the Manager has
categorised the Client as a professional client (pursuant to MiFID) in relation to the services provided under this Agreement. The Client acknowledges that it is the Client's sole responsibility to keep the Manager informed about any change to
the Client's circumstances which could affect the Manager's categorisation of the Client as a professional client. The Manager acknowledges that the Client may request treatment as a retail client, however, the Manager retains the right
not to act as discretionary investment manager for the Client in the event the Client requests such categorisation.

2.3 In order to comply with these obligations, the Manager is required to obtain as much investment related
information from the Client as is necessary to enable it to act in the Client's best interests by making suitable investments on behalf of the Client. The information required will include details of the Client's investment objectives
including risk tolerance, ability to bear any related investment risks (including losses) and financial resources. As the Client is a professional client, the Manager is entitled to assume that the Client has the necessary level of investment
experience and knowledge in order to understand the risks involved in the management of the Account.

2.4 If the Client fails, in the opinion of the Manager, to provide adequate information, the Manager may decline to
provide the discretionary investment management services under this Agreement. The Client or its designated agent shall be responsible for ensuring that the information provided to the Manager is kept accurate, complete and up to date so as to
enable the Manager to assess suitability for the Client.

2.5 A copy of the Manager's corporate policies relating to the services provided in accordance with this
Agreement is available on <u>https://investment-solutions.mercer.com/</u>.

**3.** **APPOINTMENT AND ACCEPTANCE OF MANAGER** 

3.1 The Client hereby appoints the Manager, from the Effective Date, to manage on a discretionary basis the
investment of the assets of the Account according to the Investment Guidelines and to provide such services as described in this Agreement and the Manager hereby accepts such appointment and agrees to assume the obligations set forth and described
herein and to perform the said obligations with the skill, care, due diligence and judgment expected of a professional investment manager and always subject to its obligations under applicable law and regulations.

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3.2 The responsibilities and duties of the Manager under this Agreement are limited to the assets now or hereafter
contained in the Account. The Manager shall have no responsibility or authority with respect to any of the Client's assets that are not part of the Account. For the avoidance of doubt, unless agreed pursuant to a separate agreement, the Manager
will have no responsibility under this Agreement for transitioning the Client's assets prior to the Client's investment into the Mercer Funds.

3.3 Except as expressly provided in this Agreement or authorised by the Client in writing, the Manager is not
acting as an agent of the Client and has no authority to represent, or act for or on behalf of, the Client.

**4.** **DUTIES OF THE MANAGER** 

4.1 The Client acknowledges and agrees that the assets of the Account will be invested in any one or more Mercer
Funds and in accordance with the Investment Guidelines. The Client further acknowledges and agrees that the Manager will from time to time rebalance the holdings of shares or units in the Mercer Funds in accordance with the Investment Guidelines,
which may be amended from time to time by agreement in writing between the parties. Accordingly, to enable the Account to be invested in Mercer Funds, the Client shall execute the Application Form which, together with the terms of the Prospectus or
other offering memorandum of the relevant Mercer Funds and this agreement, sets out the terms upon which the Client agrees to be bound.

4.2 The Manager will manage the Account on a discretionary basis in accordance with the terms and conditions of
this Agreement including, without limitation, the Investment Guidelines and in accordance with all applicable laws, regulations and MiFID. Subject to the terms and conditions of this Agreement including, without limitation, the Investment
Guidelines, the Manager shall have full power and discretionary authority on behalf of and for the Client to buy, sell, retain, exchange or otherwise deal in shares or units of the Mercer Funds and otherwise act as the Manager judges appropriate in
relation to the management and investment of the Account. In particular the Client hereby expressly authorises the Manager to complete and sign on its behalf any subsequent dealing forms relating to subscriptions for, or redemptions in, Mercer
Funds.

4.3 The Manager may not procure the exercise of any voting rights attaching to the Account's holdings of
Mercer Funds except with the agreement or on the specific instructions of the Client but may count such holdings for the purpose of constituting a quorum at a general meeting of any Mercer Fund.

4.4 In addition to managing the Account, where requested by the Client, the Manager may provide other services
under this Agreement, to the Client, or as requested by the Client, to the Client's advisers for the benefit of the Client, in respect of the Account or in respect of the scheme or pool of investments of which the Account forms a part. The
Manager is entitled to levy charges, in addition to those specified in this Agreement, for such services. Any such charges will be agreed in advance in writing with the Client.

**5.** **DELEGATION AND USE OF AGENTS** 

5.1 The Manager may delegate any of its functions or powers (including the powers to sub-delegate any such
functions or powers) under this Agreement to an Affiliate and may provide information about the Client and the Account to any such Affiliate or the Affiliate's external third party service provider(s). The Manager will give the Client prior
written notice of any such delegation of a function to an Affiliate which involves the exercise of its discretionary investment management powers. The Manager will not, without the written consent of the Client, delegate such powers to a third party
which is not an Affiliate. The Manager's liability to the Client for all matters so delegated shall not be affected thereby.

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5.2 The Manager (and any delegate under clause 5.1) may, where reasonable, employ agents (including Affiliates) to
perform any administrative, dealing or ancillary services required to enable the Manager to perform its services under this Agreement. The Manager will act in good faith and with reasonable skill and care in the selection, use and monitoring of such
agents. Unless otherwise agreed with the Client, the Manager will be responsible for the fees and charges of any agent which it employs under this clause 5.2.

**6.** **BANKING AND CUSTODY** 

6.1 **The Manager will not hold client money under this Agreement (and accordingly the Central Bank's client money rules will not apply) and the Client is responsible for all banking arrangements in respect of the Account. All payments due to the Client in respect of the Account's investments in Mercer Funds will only be made to the bank account held in the name of the registered shareholder outlined in the Application Form. Requests for third party payments will be assessed on a case by case basis. Please see further information in the Application Form.** 

6.2 The Manager will not be responsible for safe custody matters or for the settlement of transactions and, in the
absence of notification to the contrary, shall be entitled to assume that all transactions are settled on the specified due dates.

6.3 The Client shall hold shares or units of the Mercer Funds directly and will be the shareholder on record and
will complete the Application Form. The Client or any third party on its behalf shall notify the Manager directly in advance of all cash flows into or out of the Account. Upon notice of such cash flows, the Manager shall instruct the Mercer
Funds' administrator, of all contributions and redemption amounts in respect of the Account's investments in the Mercer Funds. Instructions from the Manager relating to acquiring or disposing of investments in respect of the Account may
constitute the control of client assets under the Central Bank's rules and may therefore only be given in connection with the provision of services under this Agreement.

**7.** **STATEMENTS AND REPORTS** 

7.1 Unless advised otherwise in writing by the Client, the Manager shall deliver to the Client quarterly
statements, in accordance with the requirements under MiFID, showing all investments of the Account, and such additional statements or reports, at such time or times, as the Client may reasonably request. Such written review may also include
performance reporting with respect to External Holdings, for which the Manager will provide such reporting on a best efforts basis and subject at all times to Clause 21 below. Such statement shall be provided not later than 25 business days
following the end of the period to which the statement relates. Such reports shall be reviewed by the Client and, if no written objections are received by the Manager within 90 days of the rendering thereof, the report shall be deemed approved by
the Client as to any matter reflected therein.

7.2 In addition to the statements and reports to be provided by the Manager to the Client pursuant to Clause 7.1
above, the Manager will provide a written review, at least quarterly, in accordance with the requirements under MiFID, of investment performance of the Account and the underlying asset classes versus appropriate benchmarks, peer portfolios and
indices. A representative of Manager will (where required by the Client) meet with the Client annually, and in addition and at no additional cost to Client, meet with the Client's Board of Directors or, as required by the Client, a subcommittee
thereof, quarterly , to provide a review, information and advice on developments in capital markets and other investment issues. Except as expressly set forth herein with regard to the management of the Account by the Manager, the Client retains all
discretionary authority and control with respect to the management and administration of the Client's assets, including the adoption of an appropriate investment strategy.

7.3 The Manager will inform the Client if the overall value of the Account, as evaluated at the beginning of each
reporting period, depreciates by 10% and thereafter at multiples of 10%, by the close of that Business Day or if such a depreciation occurs on a non-Business Day, the close of the next Business Day.

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7.4 The Client agrees that the costs of any specific reports (except as provided in clause 7.2 above) prepared at
the request of the Client, be it for tax reporting reasons or otherwise, will incur an additional charge and will be borne by the Client.

**8.** **DEALING** 

8.1 The Client hereby confirms that it has read, understood and agrees to the Manager's best execution policy.
In particular, the Client agrees that the Manager may trade outside of a Trading Venue. In effecting transactions for the Account, the Manager will at all times comply with the obligations regarding best execution under MiFID and act in the best
interests of the Client. All transactions will be effected in accordance with the terms and conditions for dealing in shares or units of the Mercer Funds, and the Manager may take all such steps as may be required or permitted by such terms and
conditions. Specific instructions from the Client in relation to the execution of orders may prevent the Manager from following its best execution policy in relation to such orders in respect of the elements of execution covered by the instruction.

8.2 Where the Client supplements the assets of the Account, the Manager shall only effect transactions in respect
of those assets after having been notified of the delivery date of those assets by the Client pursuant to clause 6.3 above.

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|:---|:---|
| **9** | **MATERIAL INTERESTS AND DISCLOSURES**  |

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9.1 The Manager or an Affiliate may without prior reference to the Client, effect transactions in which the Manager
or Affiliate has, directly or indirectly, a material interest or a relationship of any description with another party, which involves or may involve a potential conflict with the Manager's duty to the Client. Subject to compliance with
applicable law, neither the Manager nor any Affiliate shall be liable to account to the Client for any profit, commission or remuneration made or received from or by reason of such transactions or any connected transactions or to disclose the same
or the identity of any other client or counterparty involved in such transactions, nor will the Manager's fees, unless otherwise provided, be abated.

9.2 The Manager has and will maintain arrangements to prevent or manage any conflicts of interest that may be
identified within the Manager, between the Manager and the Client and between the Client and other clients of the Manager. The Manager has implemented a conflicts of interest policy in order to prevent or manage such situations and will abide by the
terms of that policy at all times. The Manager will disclose to the Client the general nature and/or source of conflicts of interest where there is a potential risk of damage to the Client's interest and where the Manager's arrangements to
prevent or manage effectively such conflicts of interest are not sufficient to prevent the Client from being disadvantaged. Mercer's Investments business is committed to ethical and transparent business practices. Mercer prevents and manages
its conflicts of interest in a manner that safeguards the interests of its clients. Mercer's conflict of interest disclosure statement for its Investments business, including examples of such conflicts of interest, can be found at <u>https://.investment-solutions.mercer.com/</u>. The Client is hereby aware of the potential conflicts that may arise in Mercer's Investments business and confirms that it has read and understood the conflicts of interest policy mentioned
above.

9.3 None of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or
equitable duties which would prevent or hinder the Manager, or any Affiliate, in transactions with or for the Client, including dealing with other Affiliates and other customers, and generally effecting transactions as provided above, to which the
Client consents accordingly. The Client agrees that the Manager or an Affiliate may nevertheless deal with other Affiliates and other customers and generally effect transactions as above without prejudice to its duties to the Client under the
Agreement.

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|:---|:---|
| **10** | **FEES AND CHARGES**  |

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10.1 The Manager's remuneration for its services shall be calculated and paid in accordance with Appendix C
(the "Fees"). The parties agree that in the event that the Client amends the Investment Guidelines or redeems its interests in the Mercer Funds, the parties may in good faith review the Fees to be paid to the Manager and may agree mutually
a new fee to be payable hereunder. The Fees payable to the Manager are exclusive of value added or any other similar tax. In the event that such tax becomes applicable to the Fees, the Client shall be responsible for the payment of such tax. The
Fees in respect of part of a period shall be pro-rated.

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10.2 The Manager will be responsible for its expenses under this Agreement, including the fees and expenses of any
Affiliate to whom it may delegate its functions or powers hereunder.

10.3 The Client will be liable for any costs payable and properly incurred under this Agreement, including
reasonable transaction charges and levies, reasonable interest charges, transfer and registration fees and taxes or other fiscal liabilities that may be incurred in the purchase and sale of shares or units of the Mercer Funds. A description of such
charges and expenses is set forth in the Prospectus for the Mercer Funds.

10.4 Notwithstanding clause 10.3, there shall be no initial or conversion sales charges related to the
Account's investment in Mercer Funds under this Agreement. Mercer Funds usually pay their own annual management, custodian, and administrator fees and will generally bear their own expenses, as described in more detail in the Prospectus for the
Mercer Funds. Value Added Tax (or any foreign equivalent) is added to any such fees and expenses where applicable. Such fees (and other benefits) may be payable to the Manager or its Affiliates for services provided to the Mercer Funds.

10.5 The Manager may receive research material or services in return for direct payments by the Manager out of its
own resources.

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|:---|:---|
| **11** | **LIABILITY AND INDEMNITY**  |

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11.1 Neither the Manager nor its Affiliates or their respective directors, officers, employees or agents, will be
liable for any Losses incurred or suffered by the Client under this Agreement unless such Losses arise directly from the Manager's or an Affiliate's negligence, criminal act, fraud or willful default or that of its or their respective
directors, officers, employees, agents or delegates.

11.2 The Client shall hold harmless and indemnify the Manager and its Affiliates, and their respective directors,
officers, employees, and agents (each a "Mercer Indemnified Person"), fully and effectively against all Claims which are brought or established against such Mercer Indemnified Person and all Losses which such Mercer Indemnified Person
sustains or incurs, which arise as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1 any person or entity claiming to be entitled to investments which form part of the Account at the time when the
Manager first assumed management of the Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2 the Client's own negligence, criminal act, fraud or willful default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3 any action properly taken by the Manager in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4 carrying out or relying on any instructions and any information provided or made available to the Manager by
the Client or any other agent of the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5 any material inaccuracy or material incompleteness of any of the Warranties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.6 any violation of applicable law by the Client.

11.3 None of the Manager, its Affiliates, nor any of their directors, officers, employees or agents shall be liable
for any special, indirect, incidental, punitive or consequential damages, direct or indirect loss of profits, opportunity goodwill or reputation, or any pure economic loss in connection with or arising out of this Agreement whether foreseeable,
known, foreseen or otherwise by the Manager.

11.4 None of the Client, Affiliates, nor any of their directors, officers, employees or agents shall be liable for
any special, indirect, punitive or consequential damages, direct or indirect loss of profits, opportunity goodwill or reputation, or any pure economic loss in connection with or arising out of this Agreement whether foreseeable, known, foreseen or
otherwise by the Client.

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11.4 The Investment Guidelines shall not be breached as a result of any events or circumstances outside the
reasonable control of the Manager including, but not limited to, changes in the price or value of assets in the Mercer Funds brought about solely through movements in the market, an inflow to or outflow from the Account or breaches arising during an
agreed transition period following an amendment of the Investment Guidelines or following an instruction of the Client. The Manager agrees to notify the Client where it identifies that any such events or circumstances have arisen as soon as
reasonably practicable in the circumstances (normally within 2 Business Days). Should such an event lead to a tolerance range being breached, the Manager will not notify the Client and instead will account for such in the next following review of
the Account in accordance with the Investment Guidelines.

11.5 Without limiting the generality of the foregoing, but subject to applicable law, the Manager shall not be
liable for any losses to the Account resulting from the disposition of any investment which shall have been made by a predecessor investment manager or by any other person authorised to invest assets of the Account, or for the retention thereof if
the Manager is unable to dispose of such investment or property because of any legal restrictions, or its unmarketable or illiquid nature, or if an orderly liquidation is impracticable under prevailing conditions.

11.6 No representation, warranty, undertaking or assurance is given by the Manager as to the performance, returns,
increase in or retention of value or profitability of the Account (or any part of it) or the success of any investment strategy recommended or used by the Manager. Similarly, any benchmark or objective(s) specified in the Investment Guidelines are
intended as targets only and not as an assurance or guarantee of performance of the Account or any part of it.

11.7 Nothing in this Agreement shall exclude or restrict a party's liability for any criminal act, nor shall it
exclude or restrict a party's liability if such liability may not be excluded or restricted pursuant to applicable laws.

11.8 Nothing in this Agreement shall exclude or restrict any duty or liability which the Manager may have to the
Client under the regulatory system (as imposed by the Central Bank).

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| **12** | **CLIENT'S REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS**  |

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12.1 The Client represents and warrants to the Manager that all Information (including that set forth in the
Application Form) is true, correct and complete and the Client agrees to notify the Manager immediately it becomes aware that any such information is no longer accurate and complete in all respects.

12.2 The Client undertakes to the Manager that, during the term of this Agreement, it will forthwith disclose in
writing to the Manager any matter or thing which may arise or become known to the Client which is inconsistent in any respect with the Information or any of the Warranties given by the Client or which may render any of them misleading, inaccurate or
incomplete in any respect. The Client acknowledges that the Manager's responsibilities do not include independent verification of the Information or the Warranties.

12.3 The Client understands and agrees that the liquidation of the shares or units of a Mercer Fund comprised in the
Account by way of redemption may, in accordance with the terms of the Prospectus or other offering memorandum of the Mercer Fund, be subject to (a) the giving of a certain period of notice prior to a redemption day, (b) provisions which
restrict the percentage of shares or units in the Mercer Fund which may be redeemed on a particular redemption day and defer redemption requests received in excess of such percentage to the following redemption day and (c) the payment of a
redemption charge.

12.4 The Client has received a copy of the Prospectus, the Ex-Ante Costs and Charges and the key investor
information document ("KIID") (where applicable) of each of the Mercer Funds in existence at the date of this Agreement. Where the Client has given full discretion to the Manager to allocate assets of the Account to any Mercer Fund, the
Prospectus and KIID (where applicable) for any new Mercer Fund invested in after the date of the Agreement will be available to the Client at <u>https://investment-solutions.mercer.com/</u>.

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12.5 The Client agrees that it will promptly, upon request, provide the Manager with such information or
documentation relating to it as the Manager may reasonably require, for disclosure to the Mercer Funds or its authorised agents.

12.6 The Client agrees that reports, analyses and other materials the Manager provides to the Client are solely for
the Client's internal use. They are not to be disclosed to any third party, including Affiliates, (other than the Client's legal advisers on a strictly need to know basis and who are bound by confidentiality obligations at least as
restrictive as those contained in this Agreement) without the Manager's prior written consent. If the Manager provides its consent to such disclosure (which may include other professional advisors), the Manager may stipulate terms regarding
such provision or require the third party to enter into a direct contractual relationship (such as a non-reliance letter) with the Manager. The Client will reimburse the Manager in respect of any Loss, of whatever kind and however incurred, as a
result of the Client's breach of this obligation. Any use of, or reliance upon, any reports, letters, information or advice the Manager provides to the Client by any third party, including Affiliates, will be at their exclusive risk. The Client
agrees that the Manager retains exclusive rights to the intellectual capital (such as methodologies, know how, models, tools, and any graphic or digitized representation of any of these) developed or possessed by the Manager prior to, or acquired
during, the performance of the services hereunder. The Client acknowledges that the investment adviser profiles, performance histories, and other information contained in the Manager's databases and reports are proprietary information of the
Manager.

12.7 The Client agrees not to refer to the Manager in the press or for promotional purposes without the
Manager's prior written consent. The Manager agrees not to refer to the Client in the press or for promotional purposes without the Client's prior written consent. Notwithstanding the foregoing, the Manager shall be permitted to include
the Client in its representative client listing.

12.8 The Client undertakes not to deal, except through the Manager, with any of the assets of the Account, nor to
authorise anyone else to deal in any of them without first notifying the Manager of such intention or action.

12.9 The Client shall provide details of its tax position to the Manager in writing on the Effective Date, namely
whether it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9.1 non-Irish resident (and in such event will complete the information as set out in Appendix A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9.2 resident in the Republic of Ireland (and in such event will provide its tax identification number); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9.3 resident in the Republic of Ireland but tax exempt (and in such event will complete the information as set out
in Appendix B).

12.10 The Client shall remain responsible for the management of its affairs for tax and accounting purposes. The
Manager shall not provide the Client with tax advice or accounting advice or services

12.11 The Client shall ensure that any restrictions to which it is subject relating to the Agreement or any
transaction contemplated by the Agreement and the level of risk to be reflected in the Manager's exercise of discretion (whether as a matter of legislation, its governing documentation, investment policies or otherwise), including its ability
to bear losses and its risk tolerances, are contained in the Investment Guidelines and the Manager shall be entitled to assume that no restrictions other than those contained in the Investment Guidelines apply.

12.12 The Client has read and understood the risk warnings set out at Appendix D to this Agreement and which provide
a description of the nature and risks of financial instruments including appropriate guidance on, and warnings of, the risks associated with investments in financial instruments or in respect of particular investment strategies.

12.13 The Client shall provide the Manager with such Information that is reasonably necessary for the Manager to
receive with a view to the proper discharge of its functions pursuant to this Agreement or which the Manager may reasonably request for such purpose or which is required by any competent authority.

------

12.14 The Client represents and warrants that it is duly incorporated / established and validly existing in
accordance with the laws of its jurisdiction of incorporation and registration.

12.15 The Client represents and warrants that it has full power and capacity to enter into this Agreement and to
perform all of its obligations hereunder.

---

| | |
|:---|:---|
| **13** | **INSTRUCTIONS AND OTHER COMMUNICATIONS**  |

---

13.1 Instructions in respect of this Agreement shall be given in accordance with the requirements set forth in this
clause 13. The Client may, from time to time, give instructions to the Manager directing the Manager to take, or refrain from taking, particular actions under this Agreement. The Manager shall acknowledge instructions by acting upon them unless the
Client is promptly advised that the Manager believes such action may not be practicable or might involve any party in a breach of any law, rule or regulation.

13.2 The Manager and the Client may otherwise communicate in writing (by letter or by electronic means such as fax
or e-mail) or by telephone or website, except when it is required to communicate in writing by this Agreement. Any such notice or communication in writing may be delivered by hand, or sent by facsimile or by pre-paid first class post as appropriate
to the registered office or principal place of business for the time being of the party to whom it is addressed or to such other address as may, from time to time be notified in accordance with this clause 13. Notices given by hand or facsimile
shall be deemed to have been given contemporaneously. Notices given by pre-paid first class post shall be deemed to have been given two Business Days after posting. Evidence that the notice was properly addressed, stamped and put in the post shall
be conclusive evidence of posting.

13.3 The Manager may rely and act on any instruction or communication which it reasonably believes it has received
from the authorised signatories of the Client as being authorised to instruct or communicate with the Manager in respect of the Account and, subject to this clause 13, by whatever means transmitted and, unless the Manager shall have received written
notice to the contrary, whether or not the authority of any such person shall have been terminated. The Manager and any delegates shall not be liable for any actions taken or omitted to be taken in good faith pursuant to any instruction or
communication (or any instruction or communication purporting to be such or believed to be such by any such entity or entities) received from the Client.

13.4 The Client acknowledges that instructions or communications conveyed by electronic methods such as facsimile or
e-mail are not secure forms of communication and may accordingly give rise to higher risks of manipulation or attempted fraud. Facsimiles and e-mails may also be of poor quality and be corrupted in transit and thus unclear, or indeed, may be lost in
transit and not arrive at their destination. The Client agrees to indemnify the Manager and any delegates, from and against all losses, costs, actions, proceedings, claims and demands which may be incurred by or brought or made against any such
entity or entities, arising directly or indirectly from its or their having acted upon any such facsimile or e-mail communication(s) or (where so authorised by this clause 13) any such facsimile or e-mail instruction(s).

13.5 The Manager's and the Client's contact details are as stated in this Agreement or as separately
notified by the Client to the Manager for the purposes of this Agreement.

13.6 Telephone conversations and electronic communications between the Manager (including its Affiliates, delegates,
its duly appointed agents and any of their respective related or associated companies) and the Client may be recorded or monitored. The Client agrees that the Manager may deliver copies or transcripts of such recordings to any court or competent
authority. A copy of recordings relating to the handling of orders and transactions is available on request for a period of five (5) years (or, where requested by the Central Bank, for a period of up to seven (7) years) from the date when the
record is made.

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13.7 In the interests of proper management and administration of the Account and in order to bring new products or
services of the Manager or its Affiliates to the attention of the Client, the Manager, its representatives or employees, may wish to call upon or communicate with the Client by telephone, email or personal visit or otherwise communicate with the
Client without express invitation. The Client consents to such communication.

---

| | |
|:---|:---|
| **14** | **AMENDMENTS**  |

---

14.1 This Agreement, including the Appendices, may be amended at any time but only by the prior written agreement of
the parties, provided however that the Manager may amend this Agreement where it is required by applicable law or regulation by providing prior written notice to the Client (save where applicable law or regulation requires a more immediate
amendment).

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| | |
|:---|:---|
| **15** | **COMPLAINTS**  |

---

15.1 All formal complaints should in the first instance be made in writing to the Manager at the address stated on
the first page of this Agreement and the complaint will then be dealt with in accordance with the Manager's complaints policy. A summary of the complaints policy is available on request.

---

| | |
|:---|:---|
| **16** | **TERMINATION OF AGREEMENT**  |

---

16.1 The Client may terminate this Agreement by giving 30 days prior written notice to the Manager. The Manager may
terminate this Agreement on three months' written notice to the Client or may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority. Further, if the Client commits a material breach of
the terms of this Agreement, becomes insolvent or the subject of any winding up order, or if any liquidator or administrator is appointed or the Client otherwise becomes the subject of any equivalent procedures under similar law, the Manager
reserves the right to terminate this Agreement immediately and to take any such action in relation to the Account as it may consider necessary. This Agreement shall terminate upon the full redemption of the Account's assets invested in the
Mercer Funds.

16.2 Termination of this Agreement will be without prejudice to the completion of transactions already initiated
which will be completed expeditiously by the Manager. Further, termination of this Agreement shall have no effect on the Client's investments in the Mercer Funds, which may be redeemed by the Client in accordance with the terms and conditions
set forth in the Prospectus.

16.3 Termination of this Agreement shall not affect accrued rights, indemnities, existing commitments or any
contractual provision intended to survive termination and will be without penalty or other additional payment on termination. For the avoidance of doubt, the provisions of Clauses 11, 12, 17, 19 and 21 shall continue to apply notwithstanding the
termination of this Agreement. The Client shall pay: (i) the fees of the Manager pro rata to the date of termination; and (ii) any additional expenses necessarily incurred by the Manager in terminating this Agreement. The Client shall bear
any losses necessarily realised in settling or concluding outstanding obligations.

16.4 In circumstances where notice has been given by either party to terminate this Agreement, the Manager shall
continue to perform its obligations under this Agreement until the effective date of termination, and shall co-operate with the Client and take such steps as the Client may reasonably require in order to effect the orderly termination of this
Agreement, including transfer of the Account to an alternative manager at the direction of the Client where applicable.

**17.** **CONFIDENTIALITY AND DISCLOSURE; DATA PROTECTION** 

17.1 Unless required by law, governmental or regulatory authority, the Manager undertakes to keep confidential, and
not to disclose, any confidential information (written or oral) concerning the Client's business which is provided to the Manager in connection with the Agreement. However, the Manager is entitled to disclose such confidential information to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1 any Affiliates or other third parties with the Client's written consent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2 the Manager's advisors, directors, officers, employees, representatives, delegates or Affiliates involved
in the provision of services under this Agreement, who in each case agree to keep such information confidential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3 the Manager's legal advisers, insurers and insurance brokers where it is necessary for the Manager to
notify them of a claim or circumstances that might lead to a claim.

17.2 Subject to the provisions of clause 17.7, the Manager undertakes to use the information provided to the Manager
in connection with the Agreement solely for the purposes of the provision of the services under the Agreement.

17.3 The provisions of clause 17.1 will not apply to information which is already lawfully in the Manager's
possession on the date of its disclosure and/or in the public domain other than as a result of a breach of this clause.

17.4 Notwithstanding clause 17.1, the Manager may disclose information about client engagements including contact
information to our Affiliates, whether in the EEA or elsewhere, for routine management, accounting and marketing activities or in connection with services and products provided by such Affiliates.

17.5 The parties agree that they shall comply with the obligations arising from the applicable data protection and
privacy laws in force from time to time. The Client confirms that any data provided to the Manager in connection with the Agreement is provided in compliance with all relevant data protection and privacy laws. The Client consents to us holding and
processing data for legal, personnel, administrative and management purposes.

17.6 In order to provide the services under this Agreement in the most efficient manner, the Manager may
sub-contract appropriate parts to a third party or parties who may be located in the EEA or elsewhere. In the event that any such third party processes personal data, the Manager will take reasonable steps in order that such third party agrees in
writing to act only on the Manager's instructions and provides appropriate guarantees in respect of the technical and organisational security measures governing the processing to be carried out. The Manager will take all reasonable steps to
secure compliance with those measures. Where such third party is located outside the EEA, the Manager will take reasonable steps so that the processing of any personal data by the third party, including its transfer to the third party, complies with
all relevant data protection and privacy laws.

17.7 The Client agrees that the Manager may use information provided by the Client, together with information from
our other clients, to build databases and surveys for internal use by our staff and for external distribution to our other clients. These databases are intended to benefit all clients by improving the quality of our service and products. The Manager
will not disclose any information to any third party in a manner which allows particular clients or individuals to be identified and will arrange that the relevant personal data is appropriately anonymised.

17.8 The Manager will take all reasonable steps to keep all personal information and all other information provided
by the Client secure at all times and that the Manager's data security procedures are adequate and sufficiently robust to prevent the risk of loss of any personal information and all other information and to prevent the risk of financial crime,
specifically in respect of the day to day working practices that affect data protection and data security.

------

---

| | |
|:---|:---|
| **18** | **ASSIGNMENT AND NOVATION**  |

---

18.1 This Agreement is personal to the Client and shall not be capable of assignment by the Client without the prior
written consent of the Manager. The appointment, replacement or removal of any one or more of the trustees being the Client shall not be regarded as an assignment of this Agreement.

18.2 The Manager may assign or novate this Agreement to an Affiliate of the Manager provided that the Client is
given prior written notice of the Affiliate of the Manager to which the Agreement will be assigned or novated.

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| | |
|:---|:---|
| **19** | **GOVERNING LAW AND DISPUTE RESOLUTION**  |

---

19.1 This Agreement and any dispute or claim arising out of or in connection with it or its subject matter,
existence, negotiation, validity, termination or enforceability (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of Ireland.

19.2 The Manager and the Client hereby irrevocably submit to the exclusive jurisdiction of the Irish Courts in
relation to any dispute or claim arising out of or in connection with this Agreement or its subject matter, existence, negotiation, validity, termination or enforceability (including non-contractual disputes or claims).

---

| | |
|:---|:---|
| **20** | **FORCE MAJEURE**  |

---

20.1 No party to this Agreement shall be liable for any failure or delay in performing any of its obligations under
or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control and it shall be
entitled to a reasonable extension of the time for performing such obligations as a result of such cause. Events outside a party's reasonable control shall include without limitation: acts of God; any change to the law, order or regulation of a
governmental, supranational or regulatory body; currency restrictions, devaluations and fluctuations; any act of terrorism; market conditions affecting the execution or settlement of transactions or the value of assets; failure or breakdown in
communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and shall include any event or circumstances that the party is unable, using reasonable skill and care, to avoid. This clause
is without prejudice to the Client's liability to any counterparty or broker for any transaction effected by the Manager for the Account pursuant to this Agreement.

---

| | |
|:---|:---|
| **21** | **PROVISION OF THIRD PARTY INFORMATION**  |

---

21.1 The Client agrees that the Manager will be **entitled to rely on the** accuracy of the information supplied
to the Manager by the Client, by any administrator of, or adviser to, the Client or by any reputable third party data vendor or similar entity which the Manager is reasonably entitled to rely upon ("Third Party Information").

21.2 The Client acknowledges that the Manager's ability to provide the relevant reporting is dependent on the
Manager being provided with (and continuing to receive) complete, accurate, up-to-date and timely documentation and information in relation to holdings outside of the Mercer Funds.

21.3 The Client agrees that if any documentation or information (including Third Party Information) supplied to the
Manager at any time is incomplete, inaccurate or not up-to-date, or its provision is unreasonably delayed, then the Manager will not be responsible for any delays or liability arising therefrom.

22.4 Any reporting provided by the Manager under this Agreement in respect of External Holdings will be provided on
a best efforts basis and subject to this Clause 21.

------

---

| | |
|:---|:---|
| **22** | **ADDITIONAL PROVISIONS**  |

---

**22.1** **This Agreement, its appendices (as amended from time to time) and any current instructions constitute the entire agreement of the parties with respect to the services related to the Account. The Agreement supersedes and extinguishes all previous letters (including purchase orders), agreements, promises, assurances, warranties, representations and understandings, whether oral or written, in relation to those matters.** 22.2 The Manager's authority under this Agreement is given by the Client on behalf of its successors in title as well as of itself.

22.3 If any provision of the Agreement is prohibited or unenforceable or is found to be invalid, illegal or
unenforceable by a court or any other competent authority, that provision shall, to the extent required, be deemed deleted and the validity and enforceability of the other provisions of the Agreement shall not be affected.

22.4 Nothing in this Agreement shall exclude or restrict any duty or liability to the Client which the Manager has
under MiFID.

22.5 This Agreement may be executed in counterpart copies, each of which shall be deemed an original, but all of
which together shall be considered the same instrument.

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| | |
|:---|:---|
| **23** | **RISK WARNINGS AND NOTIFICATIONS**  |

---

23.1 The value of investments and the income from them may fall as well as rise and an investor may not get back the
amount originally invested. More information regarding the nature and risks associated with investing in shares or units of the Mercer Funds is provided in Appendix D hereto and in the relevant Prospectus.

23.2 To the extent permitted under MiFID, the services to be provided to the Client by the Manager may also include
advice on investments that are, or on executing transactions in, units in unregulated collective investment schemes.

23.3 Insofar as investments are made involving exposure to a currency other than the base currency of the Account,
changes in rates of exchange may cause the value of the investment to go up or down.

23.4 The terms and conditions in respect of which the Manager may provide the Client with investment advice will be
set out in the Manager's engagement letter with the associated terms and conditions.

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| | |
|:---|:---|
| **24** | **INSURANCE LEGISLATION**  |

---

24.1 The Client warrants that in entering into this Agreement with the Manager the Client is acting, and at all
times and will continue to act, in compliance with its obligations under applicable laws.

24.2 The Client warrants that the Investment Guidelines reflect the principles contained in the Client's
Investment Policy, a copy of which has been supplied to the Manager. The Client confirms that it will notify the Manager in advance of any relevant revisions to the Investment Policy and of any amendments to the Investment Guidelines which may be
required to reflect any such revisions.

24.3 The Manager shall in no way be responsible for ensuring that the investment of the assets of the Account is
treated in any particular manner for regulatory capital purposes under laws applicable to the Client.

24.4 The Manager confirms that by way of clause 9.2 above, it has notified the Client of, and the Client has
acknowledged awareness of, conflicts of interest to which it is or may be subject in relation to the Account.

------

**IN WITNESS WHEREOF**, authorised signatories of each party have signed this Agreement on the date(s) recorded below:

---

| | | |
|:---|:---|:---|
| **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** | **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** | **MERCER GLOBAL INVESTMENTS EUROPE LIMITED** |
| By: | /s/ Abhishek Krishan | /s/ Abhishek Krishan |
|  | Name: | Abhishek Krishan |
|  | Title: | Director |
| **ACCELERANT RE LTD** | **ACCELERANT RE LTD** | **ACCELERANT RE LTD** |
| SIGNED for and on behalf of | SIGNED for and on behalf of | SIGNED for and on behalf of |
|  |  | /s/ Craig Nicholls |
|  |  | 29 June 2022 |
| Date:<u> </u> | Date:<u> </u> | Date:<u> </u> |
| SIGNED for and on behalf of | SIGNED for and on behalf of | SIGNED for and on behalf of |
|  |  | /s/ Robin Bond |
|  |  | Robin Bond |

---

Date: 29 June 2022

------

**<u>APPENDIX A – APPLICATION FORM FOR SHARES IN MERCER FUNDS</u>**

------

**APPENDIX A: - DECLARATION OF RESIDENCE WITHIN THE REPUBLIC OF IRELAND<sup>1</sup>** 

**DECLARATION REFERRED TO IN SECTION 739D(6) TAXES CONSOLIDATION ACT, 1997** 

------

**APPENDIX A: DECLARATION OF RESIDENCE OUTSIDE THE REPUBLIC OF IRELAND** 

------

**APPENDIX B: SELF-CERTIFICATION FOR COMMON REPORTING STANDARDS (CRS)** 

------

**APPENDIX C: ANTI-MONEY LAUNDERING SCHEDULE AND ECONOMIC SANCTIONS** 

------

**SCHEDULE TO APPLICATION FORM** 

TERMS & CONDITIONS FOR PROVISION OF REPORTING SERVICES

------

**APPENDIX B** 

**INVESTMENT GUIDELINES** 

------

**APPENDIX C** 

**FEE PROVISIONS** 

------

**APPENDIX D** 

**RISK WARNINGS**

## Exhibit 10.29

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

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| | |
|:---|:---|
| ![LOGO](g543111snap204.jpg) | **Exhibit 10.29** |

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***EXECUTION VERSION***

**[\*\*\*]** 

**Private and Confidential** 

Guarantee Protection Insurance Limited

One, Fleet Place

London

EC4M 7WS

5 April 2022

**Engagement Letter — Investment Advice and other services** 

Dear Sirs,

We refer to previous correspondence relating to the appointment of Mercer Limited ("**Mercer**") to provide services to Guarantee Protection Insurance Limited (the "**Client**"). We are delighted to work with the Client and have set out below the basis on which Mercer will act as professional advisers to the Client.

This engagement letter (including all the schedules) (the "**Engagement Letter**"), incorporates the attached Mercer terms and conditions (the "**Terms & Conditions**") (together the "**Agreement**").

**1.** **Scope of Services** 

1.1. The activities set out in Schedule 1 constitute the services provided by Mercer to the Client (the
" **Services** "). Any variation to the scope of the Services to be provided by Mercer must be agreed in writing between Mercer and the Client. It is further agreed that any variation to the scope of the Services shall be covered by the
Terms & Conditions.

1.2. If Mercer is to provide services or advice in addition to the Services listed in Schedule 1 then a
separate engagement letter setting out the scope and associated fees for those additional services will be issued by Mercer. For the avoidance of doubt, such additional services and/or advice will be subject to the Terms & Conditions.

1.3. Mercer is unable to provide insurance or reinsurance broking, risk consulting, claims or other services or
provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose Mercer or its affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions or under other trade
or economic sanctions, laws or regulations.

Mercer Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: [\*\*\*]

---

| | |
|:---|:---|
|  A business of Marsh McLennan | ![LOGO](g543111snap203a.jpg) |

---

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![LOGO](g543111snap204.jpg)

Guarantee Protection Insurance Limited

**2.** **Appointment** 

2.1. The Client appoint Mercer to supply the Services to the Client in consideration of the Client paying, or
causing to be paid, the Fees (as defined below). The appointment is on the terms set out in this Agreement and is with effect from receipt of a fully signed Engagement Letter by Mercer. Mercer acknowledges and agrees to the appointment. Mercer will
provide the Services as stated and accordingly, unless otherwise agreed in writing between Mercer and the Client, will not be responsible for keeping any aspect of the Client's affairs under review.

2.2. The persons who are the directors of the Client at the date of this Agreement will use their reasonable
endeavours in order that this Agreement operates for the benefit of and is binding upon their successors in this role.

**3.** **Fees and Expenses** 

Mercer's fees for the provision of the Services are set out in Schedule 1 (the "**Fees**"). Any changes to the Fees will be agreed in writing between Mercer and the Client.

**4.** **Instructions and Reporting** 

Mercer will accept instructions from any two authorised signatories of the Client (or any successor advised to Mercer by the Client in writing) and will report to any such person who gave the instructions. Instructions to and reports from Mercer may be provided either in writing or, where appropriate, orally.

**5.** **Timescales** 

5.1. Mercer will work with the Client in order that the Client complies with any applicable legislative or other
deadlines. Mercer's ability to meet any timetable set by law or agreed with the Client is dependent on the Client fulfilling their obligations in respect of this Agreement.

5.2. The Agreement may be terminated in accordance with the Terms & Conditions, as amended by Schedule 1
hereto.

**6.** **Advice on Tax and Legal Matters** 

6.1. Mercer has not been engaged to render advice on tax or legal issues and therefore any comments or advice given
by Mercer on tax or legal issues or draft documents that codify or create tax obligations or legal rights should not be construed as such tax or legal advice, which can only be provided by a tax adviser or law firm and for which the Client should
seek appropriate advice.

**7.** **Limitation of Liability** 

7.1. Paragraph 5 of the Terms & Conditions sets out the provisions limiting Mercer's liability in
respect of this Agreement.

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![LOGO](g543111snap204.jpg)

Guarantee Protection Insurance Limited

**8.** **Conflicts of Interest** 

8.1. The Client acknowledge and agree that Mercer may provide services to other clients including acting for them on
a transaction which may affect your interests, including, but not limited to, providing pension scheme related advice in relation to the sale or purchase of the sponsoring company or related corporate entities.

8.2. If Mercer becomes aware of such appointments, we will address any conflicts that could arise, as appropriate.
In doing so, Mercer will maintain suitable measures, including security arrangements within electronic systems and appropriate physical separation of teams, intended to prevent inappropriate access to information by one of our advisory teams about
work relating to advice provided to a different client by another team. We will comply with our conflicts policies and information barrier protocols.

8.3. The Client acknowledge that, in these circumstances, in the event that the team advising you acquires material
information from any other client (or potential client) we are not under any obligation to disclose that information to you or use it for your benefit if the disclosure of such information would (or might) be a breach of duty of confidentiality owed
to any other client (save to the extent that the client in question is the sponsoring employer in which case — such disclosure will be covered by the conflicts of interest protocol agreed with the Trustees).

8.4. Mercer's Investments business is committed to ethical and transparent business practices. Notwithstanding
paragraph 7 of the Terms & Conditions, Mercer manages its conflicts of interest in a manner that safeguards the interests of its clients. Mercer is pleased to provide a conflict of interest disclosure statement for its Investments business
at <u> </u> https://investment-solutions.mercer.com/.

Should the Client wish to discuss any matter in this Agreement they should not hesitate to contact Mercer.

The Client should acknowledge their agreement to the terms of this Agreement by returning a signed copy of this Agreement to Mercer. If the Client has requested that Mercer begin work before receiving a signed copy of the Agreement, Mercer agrees to do so but will not provide any advice, deliverables or work product until Mercer has received the signed Agreement and the Client agrees that the Client will be responsible for any fees incurred during that period.

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![LOGO](g543111snap204.jpg)

Guarantee Protection Insurance Limited

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| |
|:---|
| Yours sincerely, |
| /s/ Milo Kerr |
| **Milo Kerr** |
| **For and on Behalf of** |
| **MERCER LIMITED** |

---

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![LOGO](g543111snap204.jpg)

Guarantee Protection Insurance Limited

On behalf of **Guarantee Protection Insurance Limited,** we agree to the terms of this Agreement.

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| | |
|:---|:---|
| Signed: | /s/ Andy Page |
| Name: | Andy Page |
| Date: | April 1, 2022 |
| Signed: | /s/ Steven Clark |
| Name: | Steven Clark |
| Date: | April 5, 2022 |

---

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*The number of signatories must be such number as is required by the trust deed and rules or, in the case of a corporate, its memorandum and articles of association.* 

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![LOGO](g543111snap204.jpg)

Guarantee Protection Insurance Limited

**Schedule 1** 

**Services**

## Exhibit 10.30

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.30** 

***EXECUTION VERSION***

![LOGO](g543111dsp110.jpg)

**DATED 31 May 2022** 

**GUARANTEE PROTECTION INSURANCE LIMITED** 

and

**MERCER LIMITED** 

**INVESTMENT MANAGEMENT AGREEMENT** 

*<u>UK-IMA July 2021 – Insurance Co client</u>*

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![LOGO](g543111dsp110.jpg)

CONTENTS

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| | | |
|:---|:---|:---|
|  |  | **Page No** |
| 1 | Interpretation | 3 |
| 2 | Regulatory and Corporate Status | 5 |
| 3 | Appointment and Acceptance of Manager | 6 |
| 4 | Duties of the Manager | 6 |
| 5 | Delegation and Use of Agents | 7 |
| 6 | Banking and Custody | 7 |
| 7 | Statements and Reports | 7 |
| 8 | Dealing | 8 |
| 9 | Material Interests and Disclosures | 8 |
| 10 | Fees and Charges | 9 |
| 11 | Liability and Indemnity | 9 |
| 12 | Client's Representations, Warranties and Undertakings | 10 |
| 13 | Instructions and Other Communications | 12 |
| 14 | Amendments | 13 |
| 15 | Complaints | 13 |
| 16 | Termination of Agreement | 13 |
| 17 | Confidentiality and Disclosure; Data Protection | 14 |
| 18 | Assignment and Novation | 15 |
| 19 | The Contracts (Rights of Third Parties) Act of 1999 | 15 |
| 20 | Arbitration and Governing Law | 15 |
| 21 | Business Continuity and Force Majeure | 15 |
| 22 | Provision of Third Party Information | 16 |
| 23 | Additional Provisions | 16 |
| 24 | Risk Warnings and Notifications | 16 |
| 25 | Insurance Legislation | 17 |
|  Appendix A - Application Form for Shares in Mercer Funds | Appendix A - Application Form for Shares in Mercer Funds | 19 |
|  Appendix B – Investment Guidelines | Appendix B – Investment Guidelines | 25 |
|  Appendix C – Fee Provisions | Appendix C – Fee Provisions | 26 |
|  Appendix D – Risk Warnings | Appendix D – Risk Warnings | 27 |

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**THIS AGREEMENT** is made the 31 day of May 20<u>22</u>

**BETWEEN** 

(1) **Guarantee Protection Insurance Limited** having its registered office at One, Fleet Place, London EC4M 7WS
(hereinafter called the "**Client** ")

**AND** 

(2) **MERCER LIMITED** (registered in England and Wales number 984275), having its registered office at [\*\*\*]
(hereinafter called the "**Manager** ").

WHEREAS, the Client has authority to appoint managers to manage its assets and to provide certain services, as described herein;

WHEREAS, the Client has determined to appoint the Manager to manage such assets as are referred to in the Application Form and to provide certain services in accordance with the provisions hereof;

WHEREAS, the Manager has agreed to accept such responsibility in accordance with the provisions hereof; and

WHEREAS, the Client will also execute the Application Form for shares or units in the Mercer Funds, as set out in Appendix A.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

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|:---|:---|
| **1** | **INTERPRETATION**  |

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1.1 Definitions

In this Agreement, including the recitals above, except where the context otherwise requires, the following terms have the meaning assigned to them:

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|:---|:---|
| **"Account"** | such portfolio or portfolios of securities, and/or other assets managed by the Manager under this Agreement and invested in share classes of the Mercer Funds in accordance with the Application Form and the Investment Guidelines; |
| **"Affiliate"** | any direct or indirect subsidiary of the Manager or any direct or indirect subsidiary of any direct or indirect holding company of the Manager; |
| **"Applicable Laws"** | any laws, regulatory rules, codes of conduct and guidelines applicable to the Client including (but not limited to) FSMA and Regulations and any rules, directions, instructions, guidelines, recommendations or codes of conduct issued by the FCA, the PRA or by any other competent regulatory authority; |
| **"Application Form"** | the application form set forth in Appendix A hereto in respect of the Mercer Funds; |
| **"Business Day"** | a day which is a bank business day in the United Kingdom; |
| **"Claim"** | any claim, action, proceeding, investigation, demand, judgment and award which may be brought, made, threatened or alleged; |
| **"Effective Date"** | the later of the date on which (i) the Manager receives notification from the Mercer Funds of the satisfactory receipt and acceptance of the Client's subscription to the Mercer Funds; and (ii) the parties have executed this Agreement; in both cases also taking account of |

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|  | the section of the Investment Guidelines headed "Effective Date of Investment Guidelines", as appropriate; |
| **"Ex-Ante Costs and Charges"** | means the MIFID costs and charges disclosure requirements, which the Manager will provide in good time before provision of the relevant service and also pursuant to Appendix C; |
| **"FCA"** | the Financial Conduct Authority (or any successor entity) set up pursuant to the FSMA to regulate the financial services industry in the United Kingdom; |
| **"FCA Rules"** | the rules established by the FCA which apply to those carrying on business regulated under the FSMA; |
| **"FSMA"** | the Financial Services and Markets Act 2000; |
| **"Information"** | any information supplied to the Manager by the Client (or on behalf of the Client) from time to time; |
| **"Investment Guidelines"** | the investment guidelines set forth in Appendix B hereto and any investment restrictions set forth therein, as may be amended from time to time in writing between the parties; |
| **"Losses"** | any losses, costs, charges, damages, fines, compensation or expenses (including legal fees properly incurred); |
| **"Mercer Funds"** | any collective investment scheme, including investment companies, common contractual funds, unit trusts and limited partnerships, for which Mercer Global Investments Europe Limited or any Affiliate serves as investment manager, including, without limitation, MGI Funds plc, Mercer UCITS Common Contractual Fund, Mercer QIF Fund plc, Mercer PIF Fund plc, Mercer QIF CCF and any sub-fund thereof; |
| **"Mercer Global Investments Europe Limited"** | an Irish domiciled Affiliate of the Manager, authorised under MiFID by the Central Bank of Ireland and the promoter and investment manager of the Mercer Funds; |
| **"MiFID"** | Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 and Commission Regulation (EU) No 600/2014 of 15 May 2014 and any applicable implementing EU legislation, delegated acts (directives or regulations), technical standards and including without limitation, and any and all FCA Rules, regulations, notices, guidance notes and codes of conduct issued thereunder. |
| **"PRA"** | the Prudential Regulation Conduct Authority (or any successor entity) set up pursuant to the FSMA to regulate those carrying on Solvency II insurance business in the United Kingdom |
| **"PRA Rules"** | the rules established by the PRA which apply to those carrying on Solvency II insurance business regulated under the FSMA |
| **"Prospectus"** | any prospectus issued by the Mercer Funds, any Supplement designed to be read and construed together with and to form part of a prospectus and the Mercer Funds' most recent annual report and accounts (if issued) or, if more recent, its interim report and accounts; |
| **"Solvency II"** | Directive (2009/138/EC) and relevant associated delegated acts, implementing acts, technical standards and guidelines as may be in force in the EU from time to time; |

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|:---|:---|
| **"Supplement"** | any supplement issued by the Mercer Funds in relation to a sub-fund of a Mercer Fund; |
| **"Trading Venue"** | a regulated market, a multi-lateral trading facility or an organised trading facility (as those terms are defined under MiFID); and |
| **"Warranties"** | the warranties as set forth in clause 12. |

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1.2 Further Definitions

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any reference to the singular includes reference to the plural and vice versa and reference to the masculine
gender includes reference to the feminine and neuter genders and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unless otherwise expressly stated to the contrary herein, any reference to any clause, sub-clause, paragraph or sub-paragraph (as the case may be) shall be deemed to be a reference to the relevant clause, sub-clause, paragraph or sub-paragraph (as the case may be) of or to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any reference to persons includes reference to any legal person and to any body corporate, unincorporated
association, partnership, limited partnership, trust, unit trust, mutual fund or other collective investment scheme and the manager or trustee of any such collective investment scheme;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except where otherwise indicated, words or phrases defined in the FCA Rules, PRA Rules, MiFID or in the FSMA
shall have the same meanings in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the headings are inserted for convenience of reference only and shall not in any way form part of or affect or
be taken into account in the construction or interpretation of any provision of this Agreement or the Schedules hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) words such as "hereunder", "hereto", "hereof" and "herein" and other
words commencing with "here" shall, unless otherwise expressly stated to the contrary herein, refer to the particular clause, sub-clause, paragraph, sub-paragraph or Appendix of or to this Agreement or, as the context may require, to the
whole of this Agreement.

1.3 Unless the context otherwise requires, any reference to a statute or a statutory provision shall include such
statute or provision as from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder. Any reference to a statute or
a statutory provision shall also include any subordinate legislation made from time to time under that statute or provision.

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|:---|:---|
| **2** | **REGULATORY AND CORPORATE STATUS**  |

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2.1 The Manager is a private limited liability company incorporated in England and authorised and regulated by the
FCA pursuant to MiFID.

2.2 For the purposes of the FCA Rules and based on information obtained in respect of the Client, the Manager has
categorised the Client as a professional client (pursuant to MiFID) in relation to the services provided under this Agreement. The Client acknowledges that it is the Client's sole responsibility to keep the Manager informed about any change to
the Client's circumstances which could affect the Manager's categorisation of the Client as a professional client. The Manager acknowledges that the Client may request treatment as a retail client, however, the Manager retains the right
not to act as discretionary investment manager for the Client in the event the Client requests such categorisation.

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2.3 In order to comply with these obligations, the Manager is required to obtain as much investment related
information from the Client as is necessary to enable it to act in the Client's best interests by making suitable investments on behalf of the Client. The information required will include details of the Client's investment objectives
including risk tolerance, ability to bear any related investment risks (including losses) and financial resources. As the Client is a professional client, the Manager is entitled to assume that the Client has the necessary level of investment
experience and knowledge in order to understand the risks involved in the management of the Account.

2.4 If the Client fails, in the opinion of the Manager, to provide adequate information, the Manager may decline to
provide the discretionary investment management services under this Agreement. The Client or its designated agent shall be responsible for ensuring that the information provided to the Manager is kept accurate, complete and up to date so as to
enable the Manager to assess suitability for the Client.

2.5 A copy of the Manager's corporate policies relating to the services provided in accordance with this
Agreement is available on <u>https://investment-solutions.mercer.com/</u>.

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|:---|:---|
| **3** | **APPOINTMENT AND ACCEPTANCE OF MANAGER**  |

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3.1 The Client hereby appoints the Manager from the Effective Date to manage on a discretionary basis the
investment of the assets of the Account according to the Investment Guidelines and to provide such services as described in this Agreement and the Manager hereby accepts such appointment and agrees to assume the obligations set forth and described
herein and to perform the said obligations with the skill, care, due diligence and judgment expected of a professional investment manager and always subject to its obligations under applicable law and regulations. For avoidance of doubt, prior to
the Effective Date, the Client acknowledges that the Manager may take appropriate actions in order to prepare the Account for implementation (which may include placing pre-trade instructions in shares/units of Mercer Funds in anticipation of
settlement by the Client) and for the timely commencement of the Manager's services under this Agreement.

3.2 The responsibilities and duties of the Manager under this Agreement are limited to the assets now or hereafter
contained in the Account. The Manager shall have no responsibility or authority with respect to any of the Client's assets that are not part of the Account. [For the avoidance of doubt, unless agreed pursuant to a separate agreement, the
Manager will have no responsibility under this Agreement for transitioning the Client's assets prior to the Client's investment into the Mercer Funds].

3.3 Except as expressly set forth herein with regard to the management of the Account by the Manager, the Client
retains all discretionary authority and control with respect to the management and administration of the Client's assets, including the adoption of an appropriate investment strategy.

3.4 Except as expressly provided in this Agreement or authorised by the Client in writing, the Manager is not
acting as an agent of the Client and has no authority to represent, or act for or on behalf of, the Client.

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|:---|:---|
| **4** | **DUTIES OF THE MANAGER**  |

---

4.1 The Client acknowledges and agrees that the assets of the Account will be invested in any one or more Mercer
Funds and in accordance with the Investment Guidelines. The Client further acknowledges and agrees that the Manager will from time to time rebalance the holdings of shares or units in the Mercer Funds in accordance with the Investment Guidelines,
which may be amended from time to time by agreement in writing between the parties. Accordingly, to enable the Account to be invested in Mercer Funds, the Client shall execute the Application Form which, together with the terms of the Prospectus or
other offering memorandum of the relevant Mercer Funds, sets out the terms upon which the Client agrees to be bound.

4.2 The Manager will manage the Account on a discretionary basis in accordance with the terms and conditions of
this Agreement including, without limitation, the Investment Guidelines and in accordance with all applicable laws, regulations and MiFID. Subject to the terms and conditions of this Agreement including, without limitation, the Investment
Guidelines, the Manager shall have full power and discretionary authority on behalf of and for the Client to buy, sell, retain, exchange or otherwise deal in shares or units of the Mercer Funds and otherwise act as the Manager judges appropriate in
relation to the management and investment of the Account. In particular, the Client hereby expressly authorises the Manager to complete and sign on its behalf any subsequent dealing forms relating to subscriptions for, or redemptions in, Mercer
Funds.

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4.3 The Manager may not procure the exercise of any voting rights attaching to the Account's holdings of
Mercer Funds except with the agreement or on the specific instructions of the Client but may count such holdings for the purpose of constituting a quorum at a general meeting of any Mercer Fund.

4.4 In addition to managing the Account, where requested by the Client, the Manager may provide other services
under this Agreement, to the Client, or as requested by the Client, to the Client's advisers for the benefit of the Client, in respect of the Account or in respect of the scheme or pool of investments of which the Account forms a part. The
Manager is entitled to levy charges, in addition to those specified in this Agreement, for such services. Any such charges will be agreed in advance in writing with the Client.

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|:---|:---|
| **5** | **DELEGATION AND USE OF AGENTS**  |

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5.1 The Manager may delegate any of its functions or powers (including the powers to sub-delegate any such
functions or powers) under this Agreement to an Affiliate, including but not limited to Mercer Global Investments Europe Limited, and may provide information about the Client and the Account to any such Affiliate or the Affiliate's external
third party service provider(s). The Manager will give the Client prior written notice of any such delegation of a function to an Affiliate which involves the exercise of its discretionary investment management powers. The Manager will not, without
the written consent of the Client, delegate such powers to a third party which is not an Affiliate. The Manager's liability to the Client for all matters so delegated shall not be affected thereby.

5.2 The Manager (and any delegate under clause 5.1) may, where reasonable, employ agents (including Affiliates) to
perform any administrative, dealing or ancillary services required to enable the Manager to perform its services under this Agreement. The Manager will act in good faith and with reasonable skill and care in the selection, use and monitoring of such
agents. Unless otherwise agreed with the Client, the Manager will be responsible for the fees and charges of any agent which it employs under this clause 5.2.

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|:---|:---|
| **6** | **BANKING AND CUSTODY**  |

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6.1 The Manager will not hold client money under this Agreement (and accordingly the FCA's client money rules
will not apply) and the Client is responsible for all banking arrangements in respect of the Account. All payments due to the Client in respect of the Account's investments in Mercer Funds will only be made to the bank account held in the name
of the registered shareholder outlined in the Application Form. Requests for third party payments will be assessed on a case by case basis. Please see further information in the Application Form.

6.2 The Manager will not be responsible for safe custody matters or for the settlement of transactions and, in the
absence of notification to the contrary, shall be entitled to assume that all transactions are settled on the specified due dates.

6.3 The Client shall hold shares or units of the Mercer Funds directly and will be the shareholder on record and
will complete the Application Form. The Client, or any third party on its behalf, shall notify the Manager directly in advance of all cash flows into or out of the Account. Upon notice of such cash flows, the Manager shall instruct the Mercer
Funds' administrator of all contributions and redemption amounts in respect of the Account's investments in the Mercer Funds. Instructions from the Manager relating to acquiring or disposing of investments in respect of the Account may
constitute the control of client assets under the FCA Rules and may therefore only be given in connection with the provision of services under this Agreement.

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|:---|:---|
| **7** | **STATEMENTS AND REPORTS**  |

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7.1 The Manager will provide a written review, at least quarterly, in accordance with the requirements under MiFID,
of investment performance of the Account and the underlying asset classes versus appropriate benchmarks. Such written review may also include performance reporting with respect to External Holdings, for which the Manager will provide such reporting
on a best efforts basis and subject at all times to Clause 22 below. A representative of the Manager will (where required by the

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Client) meet with the Client annually, and at such other times as may be agreed between the Manager and the Client from time to time, to provide a review, information and advice on developments in capital markets and other investment issues. Except as expressly set forth herein with regard to the management of the Account by the Manager, the Client retains all discretionary authority and control with respect to the management and administration of the Client's assets, including the adoption of an appropriate investment strategy.

7.2 The Manager will inform the Client if the overall value of the Account, as evaluated at the beginning of each
reporting period, depreciates by 10% and thereafter at multiples of 10%, by the close of that Business Day or if such a depreciation occurs on a non-Business Day, the close of the next Business Day.

7.3 The Manager will give the Client access to its (or to an Affiliate's) web-based reporting portal where the
Client can access information on the Account's asset allocation. In using this reporting portal, the Client will be subject to the terms and conditions of use as posted on this portal. The Client will communicate to the Manager, in accordance
with clause 13, those individuals who are authorised by the Client to access this reporting portal on behalf of the Client. Information about executed transactions on a transaction by transaction basis is available on the web-based reporting portal.

7.4 The Client agrees that the costs of any specific reports prepared at the request of the Client, be it for tax
reporting reasons or otherwise, will incur an additional charge and will be borne by the Client.

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|:---|:---|
| **8** | **DEALING**  |

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8.1 The Client hereby confirms that it has read, understood and agrees to the Manager's best execution policy.
In particular, the Client agrees that the Manager may trade outside of a Trading Venue. In effecting transactions for the Account, the Manager will at all times comply with the obligations regarding best execution under MiFID and act in the best
interests of the Client. All transactions will be effected in accordance with the terms and conditions for dealing in shares or units of the Mercer Funds, and the Manager may take all such steps as may be required or permitted by such terms and
conditions. Specific instructions from the Client in relation to the execution of orders may prevent the Manager from following its best execution policy in relation to such orders in respect of the elements of execution covered by the instruction.

8.2 Where the Client supplements the assets of the Account, the Manager shall only effect transactions in respect
of those assets after having been notified of the delivery date of those assets by the Client pursuant to clause 6.3 above.

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|:---|:---|
| **9** | **MATERIAL INTERESTS AND DISCLOSURES**  |

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9.1 The Manager or an Affiliate may without prior reference to the Client, effect transactions in which the Manager
or Affiliate has, directly or indirectly, a material interest or a relationship of any description with another party, which involves or may involve a potential conflict with the Manager's duty to the Client. Subject to compliance with
applicable law, neither the Manager nor any Affiliate shall be liable to account to the Client for any profit, commission or remuneration made or received from or by reason of such transactions or any connected transactions or to disclose the same
or the identity of any other client or counterparty involved in such transactions nor will the Manager's fees, unless otherwise provided, be abated.

9.2 The Manager has and will maintain arrangements to prevent or manage any conflicts of interest that may be
identified within the Manager, between the Manager and the Client and between the Client and other clients of the Manager. The Manager has implemented a conflicts of interest policy in order to prevent or manage such situations and will abide by the
terms of that policy at all times. The Manager will disclose to the Client the general nature and/or source of conflicts of interest where there is a potential risk of damage to the Client's interest and where the Manager's arrangements to
prevent or manage effectively such conflicts of interest are not sufficient to prevent the Client from being disadvantaged. Mercer's Investments business is committed to ethical and transparent business practices. Mercer prevents and manages
its conflicts of interest in a manner that safeguards the interests of its clients. Mercer's conflict of interest disclosure statement for its Investments business, including examples of such conflicts of interest, can be found at <u>https://investment-solutions.mercer.com/</u>. The Client is hereby aware of the potential conflicts that may arise in Mercer's Investments business and confirms that it has read and understood the conflicts of interest policy mentioned
above.

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9.3 None of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or
equitable duties which would prevent or hinder the Manager, or any Affiliate, in transactions with or for the Client, including dealing with other Affiliates and other customers, and generally effecting transactions as provided above, to which the
Client consents accordingly. The Client agrees that the Manager or an Affiliate may nevertheless deal with other Affiliates and other customers and generally effect transactions as above without prejudice to its duties to the Client under the
Agreement.

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|:---|:---|
| **10** | **FEES AND CHARGES**  |

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10.1 The Manager's remuneration for its services shall be calculated and paid in accordance with Appendix C
(the "Fees"). In addition, Mercer Global Investments Europe Limited, in its capacity as investment manager of the Mercer Funds in which the Account is invested, shall be remunerated as set out in, and in accordance with the provisions of,
the Supplement to the relevant Mercer Funds. The parties agree that in the event that the Client amends the Investment Guidelines or redeems its interests in the Mercer Funds, the parties may in good faith review the Fees to be paid to the Manager
and may agree mutually a new fee to be payable hereunder. The Fees in respect of part of a period shall be pro-rated.

10.2 The Manager will be responsible for its expenses under this Agreement, including the fees and expenses of any
Affiliate to whom it may delegate its functions or powers hereunder.

10.3 The Client will be liable for any costs payable and properly incurred under this Agreement, including
reasonable transaction charges and levies, reasonable interest charges, transfer and registration fees and taxes or other fiscal liabilities that may be incurred in the purchase and sale of shares or units of the Mercer Funds. A description of such
charges and expenses is set forth in the Prospectus for the Mercer Funds.

10.4 Notwithstanding clause 10.3, there shall be no initial or conversion sales charges related to the
Account's investment in Mercer Funds under this Agreement. Mercer Funds usually pay their own annual management, custodian, and administrator fees and will generally bear their own expenses, as described in more detail in the Prospectus for the
Mercer Funds. Value Added Tax (or any foreign equivalent) is added to any such fees and expenses where applicable. Such fees (and other benefits) may be payable to the Manager or its Affiliates for services provided to the Mercer Funds.

10.5 The Manager may receive research material or services in return for direct payments by the Manager out of its
own resources.

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|:---|:---|
| **11** | **LIABILITY AND INDEMNITY**  |

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11.1 Neither the Manager nor its Affiliates or their respective directors, officers, employees or agents, will be
liable for any Losses incurred or suffered by the Client under this Agreement, unless such Losses arise directly from the Manager's or an Affiliate's negligence, criminal act, fraud or willful default or that of its or their respective
directors, officers, employees, agents or delegates.

11.2 The Client shall hold harmless and indemnify the Manager and its Affiliates, and their respective directors,
officers, employees, and agents (each a "Mercer Indemnified Person"), fully and effectively against all Claims which are brought or established against such Mercer Indemnified Person and all Losses which such Mercer Indemnified Person
sustains or incurs, which arise as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1 any person or entity claiming to be entitled to investments which form part of the Account at the time when the
Manager first assumed management of the Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2 the Client's own negligence, criminal act, fraud or willful default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3 any action properly taken by the Manager in accordance with this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4 carrying out or relying on any instructions and any information provided or made available to the Manager by
the Client or any other agent of the Client

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5 any inaccuracy or incompleteness of any of the Warranties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.6 any violation of applicable law by the Client.

11.3 None of the Manager, its Affiliates, nor any of their directors, officers, employees or agents shall be liable
for any special, indirect, incidental, punitive or consequential damages, direct or indirect loss of profits, opportunity, goodwill or reputation, or any pure economic loss in connection with or arising out of this Agreement whether foreseeable,
known, foreseen or otherwise by the Manager.

11.4 The Investment Guidelines shall not be breached as a result of any events or circumstances outside the
reasonable control of the Manager including, but not limited to, changes in the price or value of assets in the Mercer Funds brought about solely through movements in the market, an inflow to or outflow from the Account or breaches arising during an
agreed transition period following an amendment of the Investment Guidelines or following an instruction of the Client. The Manager agrees to notify the Client where it identifies that any such events or circumstances have arisen as soon as
reasonably practicable in the circumstances (normally within 2 Business Days). Should such an event lead to a tolerance range being breached, the Manager will not notify the Client and instead will account for such in the next following review of
the Account in accordance with the Investment Guidelines.

11.5 Without limiting the generality of the foregoing, but subject to applicable law, the Manager shall not be
liable for any losses to the Account resulting from the disposition of any investment which shall have been made by a predecessor investment manager or by any other person authorised to invest assets of the Account, or for the retention thereof if
the Manager is unable to dispose of such investment or property because of any legal restrictions, or its unmarketable or illiquid nature, or if an orderly liquidation is impracticable under prevailing conditions.

11.6 No representation, warranty, undertaking or assurance is given by the Manager as to the performance, returns,
increase in or retention of value or profitability of the Account (or any part of it) or the success of any investment strategy recommended or used by the Manager. Similarly, any benchmark or objective(s) specified in the Investment Guidelines are
intended as targets only and not as an assurance or guarantee of performance of the Account (or any part of it).

11.7 Nothing in this Agreement shall exclude or restrict a party's liability for any criminal act, nor shall it
exclude or restrict a party's liability if such liability may not be excluded or restricted pursuant to applicable laws.

11.8 Nothing in this Agreement shall exclude or restrict any duty or liability which the Manager may have to the
Client under the regulatory system (as defined in the FCA Rules).

11.9 The maximum aggregate liability of the Manager, its Affiliates and any officer, director, employee or
subcontractor of the Manager (the "Mercer Parties") to the Client, its officers, directors, employees, affiliates and any third party (including any benefit plan, its fiduciaries or any plan sponsor) whatsoever or howsoever arising, and
whether in contract, tort (including, without limitation, negligence and breach of statutory duty) or otherwise, for any and all losses, damages, costs, expenses or any other payment, arising out of or relating to the provision of the services under
clause 4.3 of this Agreement by any of the Mercer Parties shall not exceed £5 million.

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|:---|:---|
| **12** | **CLIENT'S REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS**  |

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12.1 The Client represents and warrants to the Manager that all Information (including that set forth in the
Application Form) is true, correct and complete and the Client agrees to notify the Manager immediately it becomes aware that any such information is no longer accurate and complete in all respects.

12.2 The Client undertakes to the Manager that, during the term of this Agreement, it will forthwith disclose in
writing to the Manager any matter or thing which may arise or become known to the Client which is inconsistent in any respect with the Information or any of the Warranties given by the Client or which may render any of them misleading, inaccurate or
incomplete in any respect. The Client acknowledges that the Manager's responsibilities do not include independent verification of the Information or the Warranties.

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12.3 The Client understands and agrees that the liquidation of the shares or units of a Mercer Fund comprised in the
Account by way of redemption may, in accordance with the terms of the Prospectus or other offering memorandum of the Mercer Fund, be subject to (a) the giving of a certain period of notice prior to a redemption day, (b) provisions which
restrict the percentage of shares or units in the Mercer Fund which may be redeemed on a particular redemption day and defer redemption requests received in excess of such percentage to the following redemption day and (c) the payment of a
redemption charge.

12.4 The Client has received a copy of the Prospectus, the Ex-Ante Costs and Charges and the key investor
information document ("KIID") (where applicable) of each of the Mercer Funds in existence at the date of this Agreement. Where the Client has given full discretion to the Manager to allocate assets of the Account to any Mercer Fund, the
Prospectus and KIID (where applicable) for any new Mercer Fund invested in after the date of the Agreement will be available to the Client at <u>https://investment-solutions.mercer.com/</u>.

12.5 The Client agrees that it will promptly, upon request, provide the Manager with such information or
documentation relating to it as the Manager may reasonably require, for disclosure to the Mercer Funds or its authorised agents.

12.6 The Client agrees that reports, analyses and other materials the Manager provides to the Client are solely for
the Client's internal use. They are not to be disclosed to any third party, including Affiliates, (other than the FCA, PRA or the Client's legal advisers on a strictly need to know basis and who are bound by confidentiality obligations at
least as restrictive as those contained in this Agreement) without the Manager's prior written consent. If the Manager provides its consent to such disclosure, the Manager may stipulate terms regarding such provision or require the third party
to enter into a direct contractual relationship (such as a non-reliance letter) with the Manager. The Client will reimburse the Manager in respect of any Loss, of whatever kind and however incurred, as a result of the Client's breach of this
obligation. Any use of, or reliance upon, any reports, letters, information or advice the Manager provides to the Client by any third party, including Affiliates, will be at their exclusive risk. The Client agrees that the Manager retains exclusive
rights to the intellectual capital (such as methodologies, know how, models, tools, and any graphic or digitized representation of any of these) developed or possessed by the Manager prior to, or acquired during, the performance of the services
hereunder. The Client acknowledges that the investment adviser profiles, performance histories, and other information contained in the Manager's databases and reports are proprietary information of the Manager.

12.7 The Client agrees not to refer to the Manager in the press or for promotional purposes without the
Manager's prior written consent. The Manager agrees not to refer to the Client in the press or for promotional purposes without the Client's prior written consent. Notwithstanding the foregoing, the Manager shall be permitted to include
the Client in its representative client listing.

12.8 The Client undertakes not to deal, except through the Manager, with any of the assets of the Account, nor to
authorise anyone else to deal in any of them without first notifying the Manager of such intention or action.

12.9 The Client shall provide details of its tax position to the Manager in writing on the Effective Date,
confirming that it is a non-Irish resident (and in such event will complete the information as set out in the Application Form).

12.10 The Client shall remain responsible for the management of its affairs for tax and accounting purposes. The
Manager shall not provide the Client with tax advice or accounting advice or services.

12.11 The Client shall ensure that any restrictions to which it is subject relating to the Agreement or any
transaction contemplated by the Agreement and the level of risk to be reflected in the Manager's exercise of discretion (whether as a matter of legislation, its governing documentation, investment policies or otherwise), including its ability
to bear losses and its risk tolerances, are contained in the Investment Guidelines and the Manager shall be entitled to assume that no restrictions other than those contained in the Investment Guidelines apply.

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12.12 The Client has read and understood the risk warnings set out at Appendix D to this Agreement and which provide
a description of the nature and risks of financial instruments including appropriate guidance on, and warnings of, the risks associated with investments in financial instruments or in respect of particular investment strategies.

12.13 The Client shall provide the Manager with such Information that is reasonably necessary for the Manager to
receive with a view to the proper discharge of its functions pursuant to this Agreement or which the Manager may reasonably request for such purpose or which is required by any competent authority.

12.14 The Client represents and warrants that it is duly incorporated / established and validly existing in
accordance with the laws of its jurisdiction of incorporation and registration.

12.15 The Client represents and warrants that it has full power and capacity to enter into this Agreement and to
perform all of its obligations hereunder.

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|:---|:---|
| **13** | **INSTRUCTIONS AND OTHER COMMUNICATIONS**  |

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13.1 Instructions in respect of this Agreement shall be given in accordance with the requirements set forth in this
clause 13. The Client may, from time to time, give instructions to the Manager directing the Manager to take, or refrain from taking, particular actions under this Agreement. The Manager shall acknowledge instructions by acting upon them unless the
Client is promptly advised that the Manager believes such action may not be practicable or might involve any party in a breach of any law, rule or regulation.

13.2 The Manager and the Client may otherwise communicate in writing (by letter or by electronic means such as fax
or e-mail) or by telephone or website, except when it is required to communicate in writing by this Agreement. Any such notice or communication in writing may be delivered by hand, or sent by facsimile or by pre-paid first class post as appropriate
to the registered office or principal place of business for the time being of the party to whom it is addressed or to such other address as may, from time to time be notified in accordance with this clause 13. Notices given by hand or facsimile
shall be deemed to have been given contemporaneously. Notices given by pre-paid first class post shall be deemed to have been given two Business Days after posting. Evidence that the notice was properly addressed, stamped and put in the post shall
be conclusive evidence of posting.

13.3 The Manager may rely and act on any instruction or communication which it reasonably believes it has received
from the authorised signatories of the Client as being authorised to instruct or communicate with the Manager in respect of the Account and, subject to this clause 13, by whatever means transmitted and, unless the Manager shall have received written
notice to the contrary, whether or not the authority of any such person shall have been terminated. The Manager and any delegates shall not be liable for any actions taken or omitted to be taken in good faith pursuant to any instruction or
communication (or any instruction or communication purporting to be such or believed to be such by any such entity or entities) received from the Client.

13.4 The Client acknowledges that instructions or communications conveyed by electronic methods such as facsimile or
e-mail are not secure forms of communication and may accordingly give rise to higher risks of manipulation or attempted fraud. Facsimiles and e-mails may also be of poor quality and be corrupted in transit and thus unclear, or indeed, may be lost in
transit and not arrive at their destination. The Client agrees to indemnify the Manager and any delegates, from and against all losses, costs, actions, proceedings, claims and demands which may be incurred by or brought or made against any such
entity or entities, arising directly or indirectly from its or their having acted upon any such facsimile or e-mail communication(s) or (where so authorised by this clause 13) any such facsimile or e-mail instruction(s).

13.5 The Manager's and the Client's contact details are as stated in this Agreement or as separately
notified by the Client to the Manager for the purposes of this Agreement.

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13.6 Telephone conversations and electronic communications between the Manager (including its Affiliates, delegates,
its duly appointed agents and any of their respective related or associated companies) and the Client may be recorded or monitored. The Client agrees that the Manager may deliver copies or transcripts of such recordings to any court or competent
authority. A copy of recordings relating to the handling of orders and transactions is available on request for a period of five (5) years (or, where requested by the FCA, for a period of up to seven (7) years) from the date when the
record is made.

13.7 In the interests of proper management and administration of the Account and in order to bring new products or
services of the Manager or its Affiliates to the attention of the Client, the Manager, its representatives or employees, may wish to call upon or communicate with the Client by telephone, email or personal visit or otherwise communicate with the
Client without express invitation. The Client consents to such communication.

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|:---|:---|
| **14** | **AMENDMENTS**  |

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14.1 This Agreement, including the Appendices, may be amended at any time but only by the prior written agreement of
the parties, provided however that the Manager may amend this Agreement where it is required by applicable law or regulation by providing prior written notice to the Client (save where applicable law or regulation requires a more immediate
amendment).

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|:---|:---|
| **15** | **COMPLAINTS**  |

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15.1 If you wish to complain about our service, you may contact us by post at: Risk & Compliance, Mercer
Limited, 1 Tower Place West, Tower Place, London EC3R 5BU, by e-mail at P&CCompliance.uk@mercer.com or by telephone on 020 7178 3159. We will explain how your complaint will be addressed and the options which may be available to you. Our
complaints procedure management policy is available on request. We are covered by the Financial Ombudsman Service ("FOS"), you can get in touch with the FOS if you have any complaints which we cannot settle, provided your complaint falls
within its jurisdiction. You can also find more information about the FOS on its website: <u>www.financial-ombudsman.org.uk</u> A summary of the Manager's complaints management policy is available on request.

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|:---|:---|
| **16** | **TERMINATION OF AGREEMENT**  |

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16.1 The Client may terminate this Agreement by giving 30 days prior written notice to the Manager. The Manager may
terminate this Agreement on three months' written notice to the Client or may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority. Further, if the Client commits a material breach of
the terms of this Agreement, becomes insolvent or the subject of any winding up order, or if any liquidator or administrator is appointed or the Client otherwise becomes the subject of any equivalent procedures under similar law, the Manager
reserves the right to terminate this Agreement immediately and to take any such action in relation to the Account as it may consider necessary. This Agreement shall terminate upon the full redemption of the Account's assets invested in the
Mercer Funds.

16.2 Termination will be without prejudice to the completion of transactions already initiated which will be
completed expeditiously by the Manager. Further, termination of this Agreement shall have no effect on the Client's investments in the Mercer Funds, which may be redeemed by the Client in accordance with the terms and conditions set forth in
the Prospectus.

16.3 Termination of this Agreement shall not affect accrued rights, indemnities, existing commitments or any
contractual provision intended to survive termination and will be without penalty or other additional payment on termination. For the avoidance of doubt, the provisions of Clauses 11, 12, 17, 20, 22 and 23 shall continue to apply notwithstanding the
termination of this Agreement. The Client shall pay: (i) the fees of the Manager pro rata to the date of termination; and (ii) any additional expenses necessarily incurred by the Manager in terminating this Agreement. The Client shall bear
any losses necessarily realised in settling or concluding outstanding obligations.

16.4 In circumstances where notice has been given by either party to terminate this Agreement, the Manager shall
continue to perform its obligations under this Agreement until the effective date of termination, and shall co-operate with the Client and take such steps as the Client may reasonably require in order to effect the orderly termination of this
Agreement, including transfer of the Account to an alternative manager at the direction of the Client where applicable.

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| **17** | **CONFIDENTIALITY AND DISCLOSURE; DATA PROTECTION**  |

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17.1 Unless required by law, governmental or regulatory authority, the Manager undertakes to keep confidential, and
not to disclose, any confidential information (written or oral) concerning the Client's business which is provided to the Manager in connection with the Agreement. However, the Manager is entitled to disclose such confidential information to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1 any Affiliates or other third parties with the Client's written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2 the Manager's advisors, directors, officers, employees, representatives, delegates or Affiliates involved
in the provision of services under this Agreement, who in each case agree to keep such information confidential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3 the Manager's legal advisers, insurers and insurance brokers where it is necessary for the Manager to
notify them of a claim or circumstances that might lead to a claim.

17.2 Subject to the provisions of clause 17.11, the Manager undertakes to use the information provided to the
Manager in connection with the Agreement solely for the purposes of the provision of the services under the Agreement.

17.3 The provisions of clause 17.1 will not apply to information which is already lawfully in the Manager's
possession on the date of its disclosure and/or in the public domain other than as a result of a breach of this clause.

17.4 Notwithstanding clause 17.1, the Manager may disclose information about client engagements including contact
information to our Affiliates, whether in the EEA or elsewhere, for routine management, accounting and marketing activities or in connection with services and products provided by such Affiliates.

17.5 The parties acknowledge and agree that, to the extent applicable, they are obligated to observe applicable
national and European data protection laws and regulations relating to privacy and the protection and processing of Personal Data ()"**Data Protection Laws**") (if and to the extent such laws and regulations would be applicable on data
related to the Agreement). "Data Subject", "Personal Data" and "Process" (including any derivative thereof such as "processing" and "processed") shall have the same meaning as in the Data Protection
Laws.

17.6 Where the collection of Personal Data by a party disclosing the Personal Data ("Disclosing Party"),
and subsequent transfer of Personal Data to the party receiving the Personal Data, requires consent under Data Protection Laws, the Disclosing Party shall obtain all necessary consents from the Data Subjects and shall promptly notify the other party
in writing if a Data Subject subsequently withdraws such consent.

17.7 The parties shall direct the other to its data protection fair processing notice, which sets out the details of
such processing and all other information required by, and in compliance with, Data Protection Laws. The Manager's notice is available at: <u>https://investment- solutions.mercer.com/global/all/en/investment-solutions-home/corporate-policies.html</u>.

17.8 Each party shall notify the other when responding to any communication, complaint, notice or access, or upon
becoming aware of any Personal Data breach request relating to Personal Data processed pursuant to this Agreement.

17.9 The Client acknowledges that the Manager may transfer Personal Data to a country other than an authorised
jurisdiction in accordance with the EU Commission approved standard contractual clauses or other available data transfer solutions under the Data Protection Laws.

17.10 These data protection obligations will remain in place should the Agreement be terminated.

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17.11 The Client agrees that the Manager may use information provided by the Client, together with information from
our other clients, to build databases and surveys for internal use by our staff and for external distribution to our other clients. These databases are intended to benefit all clients by improving the quality of our service and products. The Manager
will not disclose any information to any third party in a manner which allows particular clients or individuals to be identified and will arrange that the relevant personal data is appropriately anonymised.

17.12 The Manager will take all reasonable steps to keep all personal information and all other information provided
by the Client secure at all times and that the Manager's data security procedures are adequate and sufficiently robust to prevent the risk of loss of any personal information and all other information and to prevent the risk of financial crime,
specifically in respect of the day to day working practices that affect data protection and data security.

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|:---|:---|
| **18** | **ASSIGNMENT AND NOVATION**  |

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18.1 This Agreement is personal to the Client and shall not be capable of assignment by the Client without the prior
written consent of the Manager. The appointment, replacement or removal of any one or more of the trustees being the Client shall not be regarded as an assignment of this Agreement.

18.2 The Manager may assign or novate this Agreement to an Affiliate of the Manager provided that the Client is
given prior written notice of the Affiliate of the Manager to which the Agreement will be assigned or novated.

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|:---|:---|
| **19** | **THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT OF 1999**  |

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19.1 A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act
1999 to enforce any term of this Agreement but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

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|:---|:---|
| **20** | **ARBITRATION AND GOVERNING LAW**  |

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20.1 Any dispute arising out of or in connection with this Agreement, including any question regarding its
existence, validity or termination, shall be referred to and finally resolved by arbitration under the London Court of International Arbitration Rules (the "Rules"), which Rules are deemed to be incorporated by reference into this clause.
The number of arbitrators shall, unless agreed by the parties in writing, be three. The seat, or legal place, of arbitration shall be London. The language to be used in the arbitral proceedings shall be English. The governing law of the Agreement
shall be English law.

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|:---|:---|
| **21** | **BUSINESS CONTINUITY AND FORCE MAJEURE**  |

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21.1 The Manager has and will continue to have in place a suitable business continuity plan that is in accordance
with industry practice (a "Continuity Plan") which makes provision for the prompt and efficient handling of any incident (including a force majeure event (as discussed below) that may impair its ability to perform any of its obligations
under this Agreement and which minimises the adverse effect on the Client. The Manager will periodically test and review its Continuity Plan.

21.2 No party to this Agreement shall be liable for any failure or delay in performing any of its obligations under
or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control and it shall be
entitled to a reasonable extension of the time for performing such obligations as a result of such cause. Events outside a party's reasonable control shall include without limitation: acts of God; any change to the law, order or regulation of a
governmental, supranational or regulatory body; industrial action and industrial disputes; currency restrictions, devaluations and fluctuations; any act of terrorism; market conditions affecting the execution or settlement of transactions or the
value of assets; failure or breakdown in communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and shall include any event or circumstances that the party is unable, using
reasonable skill and care, to avoid. This clause is without prejudice to the Client's liability to any counterparty or broker for any transaction effected by the Manager for the Account pursuant to this Agreement.

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|:---|:---|
| **22** | **PROVISION OF THIRD PARTY INFORMATION**  |

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22.1 The Client agrees that the Manager will be entitled to rely on the accuracy of the information supplied to the
Manager by the Client, by any administrator of, or adviser to, the Client or by any reputable third party data vendor or similar entity which the Manager is reasonably entitled to rely upon ("Third Party Information").

22.2 The Client acknowledges that the Manager's ability to provide the relevant reporting is dependent on the
Manager being provided with (and continuing to receive) complete, accurate, up-to-date and timely documentation and information in relation to holdings outside of the Mercer Funds.

22.3 The Client agrees that if any documentation or information (including Third Party Information) supplied to the
Manager at any time is incomplete, inaccurate or not up-to-date, or its provision is unreasonably delayed, then the Manager will not be responsible for any delays or liability arising therefrom.

22.4 Any reporting provided by the Manager under this Agreement in respect of External Holdings will be provided on
a best efforts basis and subject to this Clause 22.

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|:---|:---|
| **23** | **ADDITIONAL PROVISIONS**  |

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23.1 This Agreement, its appendices (as amended from time to time) and any current instructions constitute the
entire agreement of the parties with respect to the services related to the Account. The Agreement supersedes and extinguishes all previous letters (including purchase orders), agreements, promises, assurances, warranties, representations and
understandings, whether oral or written, in relation to those matters.

23.2 The Manager's authority under this Agreement is given by the Client on behalf of its successors in title
as well as of itself.

23.3 If any provision of the Agreement is prohibited or unenforceable or is found to be invalid, illegal or
unenforceable by a court or any other competent authority, that provision shall, to the extent required, be deemed deleted and the validity and enforceability of the other provisions of the Agreement shall not be affected.

23.4 Nothing in this Agreement shall exclude or restrict any duty or liability to the Client which the Manager has
under MiFID.

23.5 This Agreement may be executed in counterpart copies, each of which shall be deemed an original, but all of
which together shall be considered the same instrument.

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|:---|:---|
| **24** | **RISK WARNINGS AND NOTIFICATIONS**  |

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24.1 The value of investments and the income from them may fall as well as rise and an investor may not get back the
amount originally invested. More information regarding the nature and risks associated with investing in shares or units of the Mercer Funds is provided in Appendix D hereto and in the relevant Prospectus.

24.2 To the extent permitted under MiFID, the services to be provided to the Client by the Manager may also include
advice on investments that are, or on executing transactions in, units in unregulated collective investment schemes.

24.3 Insofar as investments are made involving exposure to a currency other than the base currency of the Account,
changes in rates of exchange may cause the value of the investment to go up or down.

24.4 The terms and conditions in respect of which the Manager may provide the Client with investment advice will be
set out either herein or in the Manager's engagement letter with the associated terms and conditions and will be accompanied by the Terms of Business for Professional Clients for the provision of investment services.

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|:---|:---|
| **25** | **INSURANCE LEGISLATION**  |

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25.1 The Client warrants that in entering into this Agreement with the Manager the Client is acting, and at all
times and will continue to act, in compliance with its obligations under Applicable Laws.

25.2 The Client warrants that the Investment Guidelines reflect the principles contained in the Client's
Investment Policy, a copy of which has been supplied to the Manager. The Client confirms that it will notify the Manager in advance of any relevant revisions to the Investment Policy and of any amendments to the Investment Guidelines which may be
required to reflect any such revisions.

25.3.1 The Manager shall in no way be responsible for ensuring that the investment of the assets of the Account is
treated in any particular manner for regulatory capital purposes under Applicable Laws.

25.4 The Manager confirms that by way of Clause 9.2 above, it has notified the Client of, and the Client has
acknowledged awareness of, conflicts of interest to which it is or may be subject in relation to the Account.

\* \* \* \* \* \*

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**IN WITNESS WHEREOF**, authorised signatories of each party have signed this Agreement on the date(s) recorded below:

**Signed on behalf of Mercer Limited:** 

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|:---|:---|
| Signed:<u>/s/ Milo Kerr</u> | Date:<u>31 May 2022</u> |
| Print name:<u>Milo Kerr</u> |  |

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**Signed on behalf of Guarantee Protection Insurance Limited:** 

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|:---|:---|
| Signed: /s/ Steven Clark | Date: May 28, 2022 |
| Print name: Steven Clark |  |

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|:---|:---|
| Signed: /s/ Andy Page | Date: May 31, 2022 |
| Print name: Andy Page |  |

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**<u>APPENDIX A – APPLICATION FORM FOR SHARES IN MERCER FUNDS</u>**

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**APPENDIX A: - DECLARATION OF RESIDENCE WITHIN THE REPUBLIC OF IRELAND1 DECLARATION REFERRED TO IN SECTION 739D(6) TAXES CONSOLIDATION ACT, 1997** 

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**APPENDIX A: DECLARATION OF RESIDENCE OUTSIDE THE REPUBLIC OF IRELAND** 

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**APPENDIX B: SELF-CERTIFICATION FOR COMMON REPORTING STANDARDS (CRS)** 

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**APPENDIX C: ANTI-MONEY LAUNDERING SCHEDULE AND ECONOMIC SANCTIONS** 

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**SCHEDULE TO APPLICATION FORM** 

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**APPENDIX B - INVESTMENT GUIDELINES** 

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**APPENDIX C** 

**FEE PROVISIONS** 

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**APPENDIX D - RISK WARNINGS**

## Exhibit 10.31

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.31** 

***EXECUTION VERSION***

**Investment Management Agreement (UK)** 

This AGREEMENT dated as of the 2<sup>nd</sup> October 2023, is entered into by and between Accelerant Insurance UK Limited (the "Client"), a limited liability company organised under the laws of United Kingdom, having its registered office at One Fleet Place, London EC4M 7WS, and Wellington Management International Limited ("WMIL"), a limited liability company organised under the laws of England, having its registered office at [\*\*\*].

1 APPOINTMENT

The Client hereby appoints WMIL as investment manager to manage, supervise and direct the investment and reinvestment of the assets in the Client's investment accounts (collectively, the "**Account**") under the terms and conditions set out in this Agreement. The Account will be maintained with a custodian or custodians that may be designated as such by the Client to WMIL in writing (the "**Custodian**"). By execution of this Agreement, WMIL accepts such appointment as investment manager and agrees to manage, supervise and direct the investment and reinvestment of such assets pursuant to the provisions of this Agreement.

WMIL's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Custodian and WMIL have reconciled to WM IL's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and WMIL's portfolio trading systems (the "**Effective Date**").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

WMIL, acting as agent of the Client, shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement in pursuit of the Client's investment objective. subject to and in accordance with the Client's Investment Guidelines attached as Attachment A hereto, as the same may be amended by the mutual agreement of the parties from time to time (the "**Investment Guidelines**"), and any instructions, whether written or oral, from any officer or employee of the Client listed in Attachment 8 hereto. as such list may be modified at any time in the Client's sole discretion by notice to WMIL ("**Instructions**"). WMIL will keep the objectives and restrictions stated in Attachment A under review and may, from time to time, and in its sole discretion, suggest to the Client such amendments as, in WMIL's opinion, are appropriate. Subject to the terms of this Agreement. WMIL shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, subscription, conversion or other transactions in any and all stocks, bonds, other securities, cash or currencies. and other Account assets. including shares of a registered investment company for which WMIL or an affiliate of WMIL may act as investment adviser and, upon proper authorisation by the Client. interests in a collective trust maintained by a bank or trust company, including one maintained by an affiliate of WMIL. At no time shall WMIL be entitled to obtain ownership or possession of the Client's assets held in the Account.

Upon prior notice to the Client. WMIL may engage its affiliate, Wellington Management Company LLP ("**Wellington Management US**") (and Wellington Management US may engage any of its affiliates). or any of its other affiliates to assist it with providing its services under this Agreement. provided that no additional fees will be charged to the Client. WMIL's engagement of such affiliates shall not relieve WMIL of its obligations under the Agreement, and WMIL shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were WMI L's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WMIL's affiliates. For the avoidance of doubt, WMIL shall require all such affiliates to be bound (in writing or otherwise) by the confidentiality provisions of this Agreement.

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WMIL shall provide reasonable cooperation to the Client's regulators in the course of their lawful supervisory activity (and shall procure the cooperation of sub-delegates for these purposes)

3 DISCRETIONARY AUTHORITY- BROKER SELECTION, TRADING AND CLEARING

Subject to the Investment Guidelines. any Instructions and any other provisions of this Agreement. WMIL shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers. financial intermediaries and trading counterparties ("**Brokers**") that WMIL may select.

The Client authorises WMIL as its agent to enter into, supplement. amend and/or restate such documentation as WMIL considers appropriate for the purposes of establishing such accounts and executing such transactions. Such documentation may include, without limitation: master agreements for the trading of over-the-counter derivatives, clearing agreements (including addenda to existing master agreements), futures and options agreements, margin and collateral documentation (either through title transfer collateral arrangements or security collateral arrangements (which may in include a right of re-use of collateral)) and terms of business. in each case with such Brokers that WMIL considers appropriate and on terms generally accepted as market-standard. The Client acknowledges and agrees that such documentation may also grant the relevant Broker (and its affiliates or agents) a number of rights including, without limitation, a first priority security interest in, lien over or pledge over some or all of the assets held with such Broker. The authority contained in this paragraph is subject to the Investment Guidelines (including any counterparty restrictions), any Instructions and the terms of this Agreement.

WMIL will, when entering into clearing arrangements on behalf of the Client. have the discretion to select whichever clearing house and account structure as it deems appropriate for the clearing of the Client's trades.

Certain Brokers from time to time may furnish to WMIL or its affiliates statistical and investment research or execution services. WMIL's broker selection shall be conducted in accordance with its Policies and Procedures on Order Execution, as may be amended from time to time.

The Client acknowledges Brokers may request information about the Client from WMIL in connection with the Brokers' anti-money laundering or client identification obligations. WMIL is hereby authorised to furnish such information to such Broker based on information provided to WMIL by the Client. In certain circumstances, WMIL may request the Client to enter into trading or other agreements directly with a Broker, which requests the Client may accept or reject in its sole discretion.

WMIL will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care (as defined in Section 16 below) in the selection. use and monitoring of Brokers. Subject thereto. neither WMIL nor any of its affiliates will be liable for the performance of the obligations. or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client.

WMIL shall take all sufficient steps to obtain the best possible result when executing orders on behalf of the Client and when placing orders relating to investments on behalf of the Client with Brokers for execution by those Brokers (except to the extent that it is following a specific instruction from the Client). Further information on the steps that WM IL takes to achieve best execution is set out in Wellington Management's Policies and Procedures on Order Execution and its Policies and Procedures on Allocation of Trades (as they may be amended from time to time).

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The Client acknowledges and confirms that WMIL has separately provided to it a copy of Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on Allocation of Trades and the Client hereby consents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on
Allocation of Trades (as they may be amended from to time, subject to the Client receiving written notice of any material amendments); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the execution outside of a trading venue (which means a Regulated Market, Multilateral Trading Facility and an
Organised Trading Facility (as each of those terms is respectively defined in the UK Financial Conduct Authority's ()"**FCA**") handbook of rules and guidance, as amended and updated from time to time (such rules being the **"FCA Rules** ")) of the Client's orders.

Allowing orders to be executed outside a Regulated Market, Multilateral Trading Facility and Organised Trading Facility will enable WMIL to access a wider range of execution venues. There are other consequences of executing outside a trading venue, including counterparty risk. The Client may request additional information from WMIL about the consequences of transactions being executed outside a trading venue.

Unless otherwise instructed by the Client in writing, WMIL will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian. Where permitted in the Investment Guidelines, and subject to any restrictions therein, WMIL may effect transactions in derivatives (both exchange-traded and over-the-counter) and may settle or close out such transactions without further reference to the Client. WM IL may debit the Account with any sums required to pay or supplement any deposit or margin in support of any such transaction.

WM IL may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by WMIL on behalf of WMIL's other clients. Such aggregated orders (including associated expenses) will be allocated by WMIL in accordance with Wellington Management's Policies and Procedures on Allocation of Trades (as may be amended from time to time, subject to the Client receiving written notice of any material amendments). The Client acknowledges that each aggregation may operate to the advantage or disadvantage of the Client.

In addition, subject to applicable laws, rules and regulation, WMIL may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of WMIL as set forth in WMIL's Policy and Procedures on Order Execution, as may be amended from time to time.

To the extent that WMIL places a limit order for the sale or purchase of equities on behalf of the Client with a Broker for execution by that Broker, the Client hereby expressly instructs WMIL not to make public (and to use reasonable endeavours to procure that the Broker does not make public) the details of that limit order unless WMIL considers. in its absolute discretion. that it is appropriate for such details to be made public (which shall. without limitation. be deemed to include where the relevant Broker makes the relevant details of that limit order public in circumstances where WMIL has given the Broker the discretion to do so).

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| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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WMIL makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that. to its knowledge, the Investment Guidelines are consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

WMIL will establish effective measures to ensure that its investment decisions and procedures as specified under this Agreement comply with the Investment Guidelines and Instructions. In the event of a discrepancy between an Instruction and the Investment Guidelines, the Instruction shall prevail.

The Investment Guidelines shall not be breached as a result of any events or circumstances outside the reasonable control of WMI L including, but not limited to, (i) changes in the price or value of the assets in the Account brought about solely through movements in the market (ii) contributions to or withdrawals from the Account (iii) a change in the nature of any investment (whether through change in business activity or credit rating), or (iv) a force majeure event. In the event that the Investment Guidelines are breached or would have been breached but for the provisions immediately preceding, WMIL shall notify the Client of the relevant circumstances as soon as reasonably practicable and shall address such breach of the Investment Guidelines as instructed by Client as soon as reasonably practicable. If WMIL acts in accordance with this section, the non-compliance for reasons set out above in this paragraph will not constitute a breach of the Agreement nor will it give rise to any right or remedy in the Client.

Subject to any provision in the Investment Guidelines or any Instructions to the contrary, asset-based restrictions (e.g., exposure and concentration limits) in the Investment Guidelines shall be applied by WMIL at the time of acquisition based on the market value of the investments versus the total net assets of the Account. Ambiguities in the Investment Guidelines may be interpreted by WMIL in good faith and consistent with its fiduciary duty to the Client; provided, however, that WMIL shall notify the Client prior to taking, or committing or failing to take, any action on the basis of such interpretation and/or deviating from the Investment Guidelines under unusual circumstances, such as extreme market conditions and/or large cash flows into or out of the Account. In case of such interpretations or deviations WMIL shall give the Client the opportunity to provide Instructions clarifying such ambiguities and/or to authorise any deviation prior to WMIL taking action, in all cases, WMIL shall manage the Account in the best interests of the Client.

WMIL may, at its expense, utilise unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions. Additionally Environmental, Social, and Governance (" ESG") data may vary in quality, availability, estimations and methodologies being used.

The Client may give or modify Instructions to WMIL at anytime and WMIL shall have a reasonable period to comply with such Instructions. The Client covenants that any Instructions shall be, to the Client's knowledge, consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

The Client acknowledges and confirms that WMIL has separately provided it with risk warnings related to the management of the Account.

5 TAX MATTERS

Subject to the provisions of this clause, WMIL will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by WMIL on behalf of the Account.

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Neither WMIL nor any of its affiliates provide tax advice in connection with investment of the Account's assets. and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

WMIL shall conduct its activities under this agreement in such a way that will not cause the Client to: (i) have a place of effective management outside its country of tax residence; or (ii) have a permanent establishment outside its country of tax residence, solely as a result of the provision of such services. In particular, WMIL shall, where relevant, use reasonable efforts to operate in such a way that. with respect to any services provided from the United Kingdom, the conditions of the UK investment management exemption (as provided for in Chapter 2 of Part 24 of the Corporation Tax Act 2010 and Chapter 2B Part 14 Income Tax Act 2007) are satisfied.

WMIL shall not appoint a Broker which WMIL is reasonably aware would fail to satisfy the conditions of the UK independent broker exemption (as provided for in section 1145 Corporation Tax Act 2010 and section 835L Income Tax Act2007).

6 APPRAISAL OF ACCOUNT, VALUATION AND DISCLOSURES

WMIL will provide the Client with a monthly report by email which sets out information on the activities undertaken by WMIL and of the performance of the Account during the previous monthly reporting period as required under the FCA Rules.

WMIL endeavours to value all securities at fair market value as determined by WMIL in good faith and in accordance with Wellington Management's Pricing Policies and Procedures, as may be amended from time to time. WMIL is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

In addition. at the request of Client. WMIL will promptly provide to the Client all pricing and other information needed by the Client for audit purposes and any other reports reasonably requested by the Client. Furthermore. upon the reasonable request of the Client. WMIL will (i) make its personnel available to participate in conference calls and meetings with the Client on issues that may arise in connection with the subject matter of this Agreement and/or market trends or conditions generally, which meetings may, upon the Client's request and subject to the reasonable discretion of WMIL, include representatives of WMIL's affiliated companies; and (ii) make its personnel available for conference calls and meetings with the Client's Board of Directors and Committees thereof.

7 REGULATORY REPORTING

As part of its regulatory obligations under the FCA Rules, WIML is required to make certain reports to the FCA regarding its trading activities to the FCA. including for example, transaction reports. In addition, WMIL may need to undertake reporting of derivative trades to trade repositories on behalf of the Client. For this purpose WMIL requires certain information from the Client. If the below information is not provided on the terms below WMIL may not be able to execute or place relevant trades under this Agreement or carry out reporting to trade repositories on behalf of the Client.

The Client hereby agrees to provide to WMIL the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement. the Client's up to date legal entity identification code
(" **LEI Code** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Client's new or updated LEI Code promptly, in the event that the LEI Code provided under sub-paragraph (A) above changes or is updated.

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In addition to the obligations set out above in this Section, if the Client is also a discretionary investment manager, the Client agrees to provide to WMIL the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement, the LEI Code for any underlying funds or manager account holders
to which trades arising from this Agreement are allocated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the relevant underlying fund's or managed account holder's new or updated LEI Code, in the event that
an LEI code provided under sub-paragraph (A) above changes or is updated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) promptly on request by WMIL, in relation to sales of UK listed equities and sovereign debt carried out by WMIL,
details of whether any underlying funds or managed accounts to which trades arising from this Agreement are allocated were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) holding a short position or a long position in the relevant EEA listed equity or sovereign debt at the time of
the sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the size of that short position or long position at the time of the sale.

For the purpose of fulfilling its regulatory reporting obligations under this Section and its regulatory reporting obligations to the market under the FCA Rules, WMIL is required to disclose in those reports specified information about the Client and the relevant transactions. The Client acknowledges and consents to such disclosure of information by WMIL as required for regulatory purposes and that, to the extent that the confidentiality provisions in this Agreement are inconsistent with WMIL's regulatory disclosure obligations, such obligations shall be modified accordingly in relation to such disclosures.

8 COMMODITY POSITION LIMITS

The Client hereby agrees to notify WMIL of any limits it wishes to impose on positions that may be held at any time by or on behalf of the Account in specified commodity derivatives and economically equivalent OTC contracts which are subject to Article 57 of the second Markets in Financial Instruments Directive ("**Relevant Commodity Contracts**"), and the duration of such imposed limits.

In the absence of, or expiry of, any specific notification given by the Client, WMIL shall be entitled to exercise its discretion over the Account on the basis that the positions in Relevant Commodity Contracts held by or on behalf of the Account at any time are permitted to reach the maximum limits published from time to time by the relevant EU regulator responsible for setting the position limits for that particular commodity derivative.

If the limits the Client wishes to impose would violate the limits set by the FCA, an agreement with the Client has to be reached which complies with such limits.

9 RECORDING OF TELEPHONE CALLS AND ELECTRONIC COMMUNICATIONS

WMIL hereby notifies the Client that it will record telephone conversations or electronic communications (in accordance with FCA Rules) when it receives and transmits orders or executes orders on behalf of the Client: or when it deals on own account. The Client will use reasonable endeavours to notify its personnel that conversations with WMIL may be recorded.

WMIL will keep records for a period of five years from when the communication was recorded (or up to seven years if the FCA requires WMIL to do so). WMIL shall provide the Client with such records upon request.

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10 MANAGEMENT FEE

The Client will pay to WMIL for its services hereunder a management fee as set forth in Attachment C (the "**Management Fee**").

All amounts payable under or pursuant to this Agreement are exclusive of any value added tax chargeable under the Value Added Tax Act 1994 and/or any similar replacement or additional tax and/or any equivalent tax in any jurisdiction ("**VAT**"), and any other taxes, charges or fees. The Client shall pay amounts in respect of VAT on receipt of a valid VAT invoice.

The Client will be liable for any out of pocket costs (plus any irrecoverable VAT) properly incurred by WMIL under or pursuant to this Agreement, including reasonable commissions, transfer and registration fees, taxes, stamp duties, transaction taxes and other fiscal liabilities.

The Client shall make all payments under this Agreement without withholding or deduction for, or on account of, any tax unless required by law.

The Client confirms that the services provided hereunder are not being supplied to a UK-based authorised unit trust/open-ended investment company/authorised contractual fund or to any collective undertaking in securities which is open for retail investment in the UK. The Client will inform WMIL as soon as reasonably practicable if it is no longer able to give this confirmation.

If WMIL has charged an amount in respect of any VAT on supplies to the Client, and the appropriate tax authority subsequently publishes guidance which, in WMIL's reasonable opinion, indicates that such supplies were not wholly chargeable to VAT, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if WMIL has not accounted to the appropriate tax authority for such amount, WMIL shall, as soon as reasonably
practicable, repay to the Client such amount as has been incorrectly charged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if WMIL has accounted to the appropriate tax authority for such amount, WMIL shall, as soon as reasonably
practicable and at the Client's expense, take reasonable steps to obtain a refund (plus any interest arising) from the appropriate tax authority of the amount overpaid. If, when and to the extent that it receives such a refund, WMIL shall, as
soon as reasonably practicable, repay to the Client an amount equal to such refund received.

11 COSTS AND CHARGES

In addition to any costs and charges information contained in the monthly reporting under Section 6, WMIL will also provide information by email on the costs and charges incurred in connection with the investment management services that it provides under this Agreement on an annual basis. For these purposes, the reporting period shall be based on calendar years.

12 PROCEDURES

All transactions will be consummated by payment to, or delivery by, the Custodian of all cash and/or securities due to or from the Account according to local market settlement conventions. It is understood and agreed that WMIL is not authorised by the FCA to receive or hold money from or on behalf of its clients in connection with the conduct of its Regulated Activities (as defined in the Financial Services and Markets Act (Regulated Activities) Order 2001) and shall not act as custodian for the Account, and no cash or securities due to or held for the Account shall be paid or delivered to WMIL, except in payment of the Management Fee. Instructions by WMIL to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of WMIL, orally and confirmed by such transmission method as soon as practicable thereafter.

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WMIL shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian, and to the Client upon the Client's request, copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide WMIL with such periodic reports concerning the status of the Account as WMIL may reasonably request.

If any Broker or counterparty fails to deliver any necessary documents or to complete any transaction, WMIL shall take all reasonable steps on behalf of the Client to rectify such failure.

Neither WMIL nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, WMIL does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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| 13 | PROXIES  |

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The Client instructs WMIL to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorises WMIL to instruct the Custodian to forward promptly to WMIL only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that WMIL will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

14 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

WMIL will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other legal proceeding related to securities currently or previously held in the Account ('Legal Proceedings'), WMIL shall provide factual information in its possession as the Client may reasonably request. The Client shall pay or reimburse costs actually and reasonably incurred by WMIL or its affiliates in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of WMIL's or its affiliates' roles and responsibilities under this Agreement.

15 SERVICE TO OTHER CLIENTS; POTENTIAL CONFLICTS OF INTEREST

WMIL has in place a Conflicts of Interest Policy which specifies the procedures that it follows and the measures that it has adopted to identify, prevent or manage conflicts in a way that ensures fair treatment for the Client.

The Client acknowledges and confirms that WMIL has separately provided to it a copy of WMIL's Conflicts of Interest Policy. Further information on WMIL's Conflicts of Interest Policy is available on request. The Conflict of Interest Policy may be updated from time to time and the latest version is available on request.

It is understood that WMIL and its affiliates provide investment management and advisory services for other clients. including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that WMIL or its affiliates may take investment action or give advice on behalf of such other clients that

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differs from investment action taken on behalf of the Account. If a purchase or sale of securities or other assets for multiple client accounts including the Account is deemed by WMIL to be advisable and is considered at or about the same time, and WMIL is unable to purchase or sell the amount of securities or other assets in the aggregate amount then contemplated by WMIL on behalf of such client accounts, the transactions in such securities or other assets will be allocated among the client accounts contemporaneously purchasing or selling as deemed equitable by WMIL.

WMIL or any of its affiliates may effect transactions in which it has, directly or indirectly, a material interest or relationship of any description with another party which may involve a potential conflict with WMIL's duty to the Client. WMIL will ensure that such transactions are (i) effected on terms which are not less favourable to the Client than if the potential conflict had not existed and (ii) in accordance with the Standard of Care.

In accordance with FCA Rules, but subject in each case to the Standard of Care, WMIL notifies the Client that such potential conflicting interests or duties may arise because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) WMIL or its affiliates undertake Regulated Activities for other clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a director or employee of WMIL, or of its affiliates, is a director of, holds or deals in securities of, or is
otherwise interested in any company whose securities are held or dealt in on behalf of the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a transaction is effected in securities in respect of which WMIL or its affiliates may benefit from a
commission, fee, mark-up or mark-down payable otherwise than by the Client, and/or WMIL or its affiliates may be remunerated by the counterparty to any such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) WMIL may act as agent for the Client in relation to transactions in which it is also acting as agent for the
account of other clients and/or affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon proper authorisation by the Client, a transaction is effected in units or shares of a collective trust or
other commingled pool vehicle or a company of which WMIL or any of its affiliates is the manager, operator or adviser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a transaction is effected in securities in respect of which WMIL or its affiliates, or a director or employee
of WMIL or its affiliates, is contemporaneously trading or has traded on its own account or has either a long or short position.

WMIL will act as the agent of the Client, who will therefore be bound by its actions under this Agreement, Nevertheless, none of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or equitable duties which would prevent or hinder WMIL, or its affiliates, in transactions with or for the Client. from acting as both market-maker and broker, principal or agent, dealing with other affiliates and other clients, and generally effecting transactions as provided above, to which the Client consents accordingly, subject in each case to the Standard of Care.

16 STANDARD OF CARE; LIABILITY

WMIL shall discharge its duties and exercise its discretion under this Agreement with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investment professional acting in a similar capacity and familiar with such matters would use, in accordance with its authorisation and regulation by the FCA and otherwise in accordance with the FCA Rules, the Financial Services and Markets Act 2000 (the "**FSMA**") and other applicable law (the "**Standard of Care**"). Unless WMIL has breached the Standard of Care, WMIL shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under this Agreement (including acts or omissions made in response to Instructions), except to the extent such act or omission constitutes a material breach of this Agreement, willful misfeasance, bad faith or gross negligence on the part of WMIL, any of its affiliates or delegates.

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In no event shall WMIL, any of its affiliates or delegates be liable hereunder to the Client or to any other person or entity for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

Except insofar as the same may result from the negligence, wilful default or fraud of WMIL, its affiliates or its delegates or its or their employees, the Client agrees to indemnify WMIL against all costs, losses, claims and expenses which may be incurred by it or made against it either (i) as a result of any party claiming to be entitled to investments which form part of the Account at the time when WMIL first assumes management of the Account: or (ii) in consequence of any breach by the Client of this Agreement; or (iii) arising out of any action properly taken by WMIL in accordance with this Agreement.

17 REPRESENTATIONS AND UNDERTAKINGS BY WMIL

By execution of this Agreement, WMIL represents that: (i) it is duly authorised by the FCA to conduct investment management business in the UK and shall remain so authorised at all times during the terms of this Agreement, and, as an investment manager authorised and regulated by the FCA, it acknowledges its fiduciary status with respect to the Account; (ii) the terms hereof do not violate any law or other obligation by which WMIL is bound, whether arising by contract, operation of law or otherwise; (iii) as to WMIL, this Agreement has been duly authorised by appropriate action and when so executed and delivered will be binding upon WMIL in accordance with its terms; (iv) as at the date of this Agreement, there is no litigation or governmental proceeding currently pending against it or involving its investment management business which would materially and adversely affect its ability to carry out the services hereunder; (v) WMIL will provide the Client with any other relevant information in connection with the services being provided hereunder as the Client may reasonably requested from time to time; and (vi) all representations made by WMIL under this Agreement are true and accurate in all material respects. WMIL covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate in all material respects and that the Client may rely on the accuracy of such representations.

WMIL shall undertake to: (i) promptly advise the Client in the event of any change in control of WMIL or a change in the lead portfolio manager involved in managing the Account.; and (ii) maintain appropriate liability and professional indemnity insurance and keep such insurance in place throughout the continuance of this Agreement and, if requested, shall provide the Client with such details of its insurance as may reasonably be requested from time to time.

WMIL shall undertake to maintain business contingency planning activity in accordance with its obligations and prevailing best practice. Moreover, WMIL undertakes to reasonably cooperate with the Client in the Client's testing of its own business contingency planning activity.

18 REPRESENTATIONS BY THE CLIENT

By execution of this Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) as to the Client, this Agreement is duly executed by individuals with the requisite authority to bind the Client, has been duly authorised by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Account is free of all liens and charges, and undertakes that no liens or charges will arise from the acts or omissions of the Client; (iv) during the term of this Agreement, the Client undertakes not to deal, except through WMIL, with any of the assets of the Account and not to authorise anyone else to deal in any of them; (v) the Client will provide WMI L with any other relevant information reasonably requested from time to time and (vi) all representations made by the Client under this Agreement are true and accurate in all material respects. The Client covenants that any future representations made to WMIL under or relating to this Agreement shall be true and accurate in all material respects and that WMIL may rely on the accuracy of such representations in the performance of its duties hereunder.

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19 BENCHMARK REGULATIONS

The Client acknowledges that Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the "**Benchmark Regulation**" or "**BMR**") may apply to the Client in respect of the Account.

Where a Client is using a benchmark (as the term 'use' is defined in Article 3(7) of the Benchmark Regulations), the Client acknowledges and agrees that:

(i) it can only use a benchmark (as that term is defined in Article 3(3) of the BMR) provided by an appropriately authorised administrator (as that term is defined in Article 3(6) of the BMR); and

(ii) it is required to produce and maintain robust written plans setting out the actions that it would take in the event that a benchmark materially changes or ceases to be provided (in accordance with Article 28 of the BMR). WMIL agrees to provide the Client with reasonable assistance in order to assist the Client to produce, maintain and comply with those plans.

20 ANTI-BRIBERY AND CORRUPTION

Each party agrees that: (a) it will comply with all applicable laws, statutes, regulations, and codes relating to anti-bribery and anti-corruption applicable in the jurisdiction(s) in which it operates, including but not limited to the US Foreign Corrupt Practices Act 1977 and the UK Bribery Act 2010, each as may be amended from time to time ("**Anti-Bribery Requirements**"); (b) it has not directly or indirectly done or omitted to do, and will not directly or indirectly do or omit to do, any act which would be or could be construed as an unlawful act under the Anti-Bribery Requirements; (c) it shall have and maintain in place its own policies and procedures to ensure compliance with the Anti-Bribery Requirements and will enforce them where appropriate; and (d) it will give such assistance to the other party as may be reasonably requested to ensure compliance with the other party's internal policies and procedures in respect of anti-bribery.

WMIL undertakes that during the term of this Agreement it shall: (a) not engage in any activity, practice or conduct which would constitute either: (i) a UK tax evasion facilitation offence under section 45(5) of the Criminal Finances Act 2017; or (ii) a foreign tax evasion facilitation offence under section 46(6) of the Criminal Finances Act 2017; and (b) establish, maintain and enforce its own policies and procedures as are both reasonable to prevent the facilitation of tax evasion by another person and to ensure compliance with <u>(a)</u> above.

21 USE OF THIRD PARTY DELEGATES

WMIL may employ reputable third party delegates to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding and reconciliation and corporate action processing, required to enable WMIL to perform the services under this Agreement. Upon the Client's written request, WMIL shall identify any such third party delegates to the Client in writing, with such details as the Client may reasonably request. The Client authorises WMIL to provide necessary information about the Client and the Client's investments to such third party delegates to perform such services, provided that any such third party delegates is also bound by confidentiality and use obligations at least as protective as those herein, and when reasonably requested by the Client, WMIL shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. WMIL will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care in the selection, use and monitoring of delegates, and the Client shall not be responsible for any fees which any agent may charge in connection

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with such services. WMIL will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has delegated any functions to a delegate. WMIL's engagement of such delegates shall not relieve WMIL of its obligations under the Agreement, and WMIL shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were WMIL's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WM IL's delegates.

For the avoidance of doubt, Brokers and third-party data service providers shall not be considered as delegates under this Section.

22 ASSIGNMENT

Neither party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed.

23 TERM AND TERMINATION

The Client may terminate this Agreement at any time by written notice to WMIL. WMIL may terminate this Agreement (i) by giving three months' written notice to the Client or (ii) may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority.

This Agreement will continue until terminated by either party upon at least 3 months' prior written notice to the other party, or such shorter time period as mutually agreed in writing by the parties.

Unless otherwise agreed between the parties, in circumstances where WMIL terminates this Agreement pursuant to this section 23, WMIL shall continue to provide the services up until the termination date and shall cooperate with and take such steps as the Client may reasonably require in order to effect the orderly termination of this Agreement.

24 CONSEQUENCES OF TERMINATION

Termination will be without prejudice to the completion of transactions already initiated which will be completed expeditiously by WMIL.

Termination will not affect accrued rights, indemnities, existing commitments or any contractual provision intended to survive termination and will be without penalty or other additional payment. The Client will pay (i) the Management Fees of WMIL *pro rata* to the date of termination and (ii) any additional expenses necessarily incurred by WMIL in terminating this Agreement and will bear any losses necessarily realised in settling or concluding outstanding obligations.

On termination, WMIL may, without prior notice to the Client, direct the Custodian to retain and/or realise any assets of the Account as may be required to settle transactions already initiated, and to pay, exclusive of any and all indemnification related obligations, any other outstanding liabilities of the Client. If there is a dispute as to the payment of Management Fees, or other costs and fees to WMIL the Client may require the disputed amount to be held in an escrow account pending resolution of the dispute.

25 CONFIDENTIALITY; USE OF NAME

WMIL and the Client acknowledge and agree that any and all information or materials communicated between the parties, including the terms of this Agreement, is confidential information provided that confidential information shall exclude information or material which at the time of its disclosure is, or which thereafter becomes, (in each case otherwise than as a result of any act or default by the recipient). part of the public domain by publication or otherwise ("**Confidential Information**").

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For the purposes of this section, the party receiving the other party's Confidential Information shall be referred to as the "**Receiving Party**", and the party disclosing such Confidential Information shall be referred to as the "**Disclosing Party**". At all times Confidential Information shall be handled with at least the same standard of confidentiality accorded to the most sensitive and confidential documents and information of the Receiving Party, but no less than a commercially reasonable standard of care. The Receiving Party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable. the Receiving Party agrees that dissemination of the Confidential Information will be limited to only those employees. affiliates or agents of the Receiving Party (collectively, "**Representatives**") who have a need to know for purposes of this Agreement and the Receiving Party shall be responsible to the party disclosing such Confidential Information (the "**Disclosing Party**") for any breach of this Section by any of the Receiving Party's Representatives. The Receiving Party shall promptly notify the Disclosing Party in writing in the event it becomes aware of any loss or unauthorised disclosure of any Confidential Information by the Receiving Party or its Representatives.

Confidential Information shall not include any information that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is or becomes publicly available other than as a result of a breach of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is or becomes available on a non-confidential basis to the Receiving
Party from a source which is not known to the Receiving Party to be subject to a duty of confidentiality with respect to such information,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was legally in the Receiving Party's possession prior to disclosure by the Disclosing Party without any
obligation of confidentiality,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is developed by or for the Receiving Party independently of the Disclosing Party's Confidential
Information; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) is expressly approved for release by written authorization of the disclosing party.

In the event that the Receiving Party is requested or required by a legal or regulatory authority, law or legal process (a "**Demand**") to disclose any Confidential Information, the Receiving Party shall promptly, notify the Disclosing Party of such Demand as reasonable under the circumstances, and only to the extent permitted by law. In the event a protective order or other remedy is not obtained, the Receiving Party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The Receiving Party will provide reasonable cooperation to the Disclosing Party and its legal counsel with respect to any Demand. Any expenses incurred by the Receiving Party in complying with this section shall be at the sole cost of the Disclosing Party.

Upon either party's written request, each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The Client agrees that the investment decisions and recommendations made by WMIL under this Agreement will not be used by the Client or its affiliates for any purpose other than with respect to the Account, without the written consent of WMIL.

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Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from such party's unauthorized use of the other party's name and logo in marketing materials.

The terms of this Section shall survive the expiration or termination of this Agreement, and the Disclosing Party shall be entitled to seek injunctive relief for any violation of this Section.

26 DATA PROTECTION

In this Section, "personal data" means data that relates to a living individual who can be identified from the data (either by itself or when it is combined with other data).

WMIL may process personal data in connection with this Agreement and the products and services that it provides under it. For the purposes of the Applicable Data Protection Laws, WMIL is a controller in respect of the processing of this personal data and is responsible for compliance with the Applicable Data Protection Laws in respect of such processing. Notwithstanding any other provision of this Agreement, under no circumstances shall WMIL be deemed to be a processor on behalf of, or a joint controller with, the Client. WMIL explains what personal data it will process, why and how it will process it, who it may share it with, and the rights that an individual has in respect of their personal data at the following location: https://www.wellington.com/en/privacy-notice/. In the remainder of this Section, WMIL refers to this as its "Privacy Notice". Each party is responsible for its own compliance with Applicable Data Protection Laws and, except as explicitly set out in this Agreement, neither party relies on the other with respect to its own compliance with Applicable Data Protection Laws.

The Client undertakes, where it transfers personal data to WMIL, it does so in accordance with the Applicable Data Protection Laws. The Client must ensure that any personal data that it provides to WMIL is accurate and up to date, and that it promptly notifies WMIL if it becomes aware that such personal data is incorrect.

Where the Client provides personal data to WMIL, the Client must first have satisfied the obligations imposed by Applicable Data Protection Laws, including but not limited to the obligation to provide transparency information to affected individuals, and drawn the attention of those individuals to WMIL's Privacy Notice. In addition, the Client shall promptly notify those individuals of any material changes to the Privacy Notice when advised by WMIL.

Where, in connection with this Agreement and the products and services that it provides under it, it becomes necessary for WMIL to transfer personal data to the Client, or its appointed representatives or assigns, in any jurisdiction outside the UK that has not been deemed adequate for the purposes of Article 47 of the UK GDPR, the parties shall use all reasonable efforts to enter into such data transfer arrangements as may be necessary to satisfy the requirements of Applicable Data Protection Laws with respect to that transfer.

In the event that either party becomes aware of an actual or suspected personal data breach affecting personal data disclosed under, or in connection with. this Agreement, that party shall notify the other party without undue delay, and the parties shall use all reasonable endeavours to assist one another in satisfying the requirements of Applicable Data Protection Laws with respect to any such personal data breach.

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Under this Section "Applicable Data Protection Laws" means any relevant legislation in force from time to time protecting the fundamental rights and freedoms of individuals and, in particular, their right to privacy with respect to the processing of personal data applicable to a data controller in the country or territory in which the controller and/or processor is established, including, but not limited to, such laws as the Data Protection Act 2018 EU Directive 95/46/EC and EU Regulation (EU) 2016/679 (GDPR) and the retained EU version of GDPR (UK GDPR)

27 UK FREEDOM OF INFORMATION ACT

In relation to the UK Freedom of Information Act (the "**FOI**"), WMIL regards all information hereby provided by WMIL regarding any portfolio management activities conducted by WMIL on the Client's behalf ("**Information**"), as both confidential and commercially sensitive. Should this information be released into the public domain it could have an impact upon the Client's portfolio and would impact WMIL's commercial interests as it would be of benefit to WMIL's competitors and detrimental to WMIL's current and future business. WMIL therefore requests that the Client treat the information contained in this Agreement and all Information provided to the Client as both confidential and commercially sensitive.

The Client shall therefore promptly notify WMIL in the event that it:

(a) receives a request for information under section 8 of the FOI which covers information relating to the Agreement. to WM IL or the services provided by WMIL (a "**Relevant Request**");

(b) responds to a Relevant Request;

(c) receives a complaint in relation to the handling of a Relevant Request;

(d) becomes aware that an application has been made to the Information Commissioner for a decision in relation to a Relevant Request;

(e) becomes aware that the Information Commissioner has served any notice on the Client under part IV of the FOI in relation to a Relevant Request;

(f) becomes aware that an appeal has been made to the Information Tribunal or the Court in relation to a Relevant Request; or

(g) becomes aware that confidential information relating to WMIL or the services provided under the Agreement has been or is about to be disclosed to a third party without WMIL's express written permission;

and in each case shall provide WMIL with such details as may reasonably be requested by WMIL.

Responding to a Relevant Request

Upon receipt of a Relevant Request, the Client shall promptly notify WMI L of the nature of the Relevant Request and give WMIL a reasonable opportunity to comment on whether an exemption from the requirement to disclose may be applicable so that the Client is able to take due regard of any such comments before making its response. WMIL agrees to respond in a timely manner.

28 REGULATION

WMIL is authorised and regulated by the FCA and the Securities and Exchange Commission (the "**SEC**") and nothing in this Agreement shall exclude, waive or limit any liability of WMIL to the Client or any right of any person arising under the FSMA, any rules or regulations made under it, or the FCA Rules.

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The FCA's address is 12 Endeavour Square, London E20 lJN.

Any words or phrases used in this Agreement which are defined in the FCA Rules shall have the same meanings in this Agreement, notwithstanding anything to the contrary in this Agreement.

29 FORCE MAJEURE

Neither party shall be liable for any failure or delay in performing any of its obligations under or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement if such failure or delay is due to force majeure or other events beyond the control of the party which significantly affects the party's obligations and performance under this Agreement and which it could not have foreseen and avoided using reasonable efforts, including without limitation: acts of God; currency restrictions, devaluations and fluctuations; any act of terrorism; significant changes to the market conditions affecting the execution or settlement of transactions regarding the Account or the value of Account; failure or breakdown in communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and incorrect data feed from unaffiliated third-party data service providers including but not limited to, rating agencies, Bloomberg, WM Daten.

30 CONSTRUCTION OF AGREEMENT

This Agreement will be construed and the rights and obligations of the parties under this Agreement enforced in accordance with the laws of England and Wales without consideration of its conflicts of laws rules. The parties agree that the English courts will have exclusive jurisdiction over the parties regarding any dispute arising under this Agreement, for which purpose the parties hereto agree to submit to such jurisdiction. Each party hereto hereby expressly and irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter may have to the laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum. To the extent that any party hereto has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, such party hereby irrevocably waives such immunity in respect of its obligations under this Agreement.

31 REPORTS AND NOTICE

Any notice required or permitted to be given by one party to the other party pursuant to this Agreement will be in writing and will be delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested), express mail or other overnight or express courier service, facsimile transmission or electronic mail transmission to the applicable address for such other party specified below:

To WMIL at:

Wellington Management International Limited

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

Email: [\*\*\*]

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With a copy to:

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No.: [\*\*\*]

Email: [\*\*\*]

To the Client at:

**Accelerant Insurance UK Limited**

One Fleet Place, London EC4M 7WS

Attention: [\*\*\*]

With a copy to:

[\*\*\*]

[\*\*\*]

Any notice given in accordance with this Section will be deemed to have been given and received on the date it is delivered or, in the case of any notice by facsimile or electronic mail transmission, the date that receipt of such transmission is confirmed. A party may change the names or addresses where notice is to be given to it by providing notice to the other party of such change in accordance with this Section. The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by WMIL under this Agreement, or pursuant to applicable law, rule or regulation, and Client represents that it has the means to, and will access, such disclosures in electronic format. WMIL shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to WMIL.

32 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement, which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

33 AMENDMENTS

This Agreement may not be amended without the prior written agreement signed by a duly authorised representative of each party, save that WMIL may amend this Agreement without the prior written agreement of the Client in order to comply with, or to make this Agreement consistent with, any legal or regulatory requirements or changes to which WMIL may be subject, by providing written notice to the Client of such amendment.

34 THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms; provided, however, Wellington Management US shall be an express third-party beneficiary hereof, with the right to enforce the terms of this Agreement on behalf of itself.

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35 COUNTERPARTS

This Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument. Such executed counterparts may be delivered by one party to the other by facsimile or other electronic transmission, and such counterparts shall be valid for all purposes. This Agreement shall be valid, binding and enforceable against a party hereto only when executed by an authorised individual on behalf of that party by means of (i) a DocuSign<sup>®</sup> or other electronic signature, (ii) an original, manual signature. or (iii) a faxed, scanned or photocopied manual signature, Each DocuSign<sup>®</sup> or other electronic, faxed, scanned or photocopied manual signature ("**Electronic Signature**") shall for all purposes have the same validity, legal effect and admissibility in evidence as an original manual signature and the parties hereto hereby waive any objection to the contrary. Each party executing this Agreement with an Electronic Signature hereby warrants that the type of Electronic Signature it has used is valid and enforceable under applicable law, the officer applying the Electronic Signature has the necessary authority to do so and its use has been duly authorised by appropriate action taken by the party.

[*Signature page follows*.]

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| | |
|:---|:---|
| For and on behalf of **Accelerant Insurance UK Limited** | For and on behalf of **Accelerant Insurance UK Limited** |
| By: | /s/ Frank O'Neill |
| Name: | Frank O'Neill |
| Title: | Director |

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| | |
|:---|:---|
|  Agreed and Accepted: | Agreed and Accepted: |
|  For and on behalf of Wellington Management International Limited | For and on behalf of Wellington Management International Limited |
|  By: | /s/ Andrew Pakulis |
|  Name: | Andrew Pakulis |
|  Title: | Director |

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ATTACHMENT A

INVESTMENT GUIDELINES

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ATTACHMENT B

CLIENT'S AUTHORISED SIGNATORY LIST

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ATTACHMENT C

FEE SCHEDULE

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ATTACHMENT D

REPORTS; COMMUNICATIONS AND OTHER OPERATIONAL MATTERS

## Exhibit 10.32

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.32** 

***EXECUTION VERSION***

**INVESTMENT SERVICES AGREEMENT** 

This Investment Services Agreement (this "Agreement") is executed as of 3rd day of February 2021 (the "Effective Date") between Mercer Investments LLC, a Delaware limited liability company (the "Manager"), and Accelerant Specialty Insurance Company, an Arkansas domestic surplus lines carrier (the "Client").

WHEREAS, the Client has the authority to appoint third parties to make investment and other fiduciary decisions with respect to the assets of the Client's investment portfolio set forth on Appendix A hereto (each individually or collectively, as the context requires, the "Portfolio");

WHEREAS, the Client has determined to appoint the Manager to provide investment consulting and discretionary investment management services with respect to all or a portion of the assets of the Portfolio designated in writing to the Manager, as discretionary investment manager, by the Client pursuant to Section 1(a) below, subject to the remaining terms and conditions of this Agreement; and

WHEREAS, the Manager has agreed to accept such responsibility in accordance with the provisions hereof;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

**1. APPOINTMENT OF AND ACCEPTANCE BY MANAGER; DUTIES OF MANAGER.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Client hereby appoints the Manager to provide the discretionary investment management services (the "Investment Management Services") with respect to the assets of the Portfolio from time to time designated in writing to the Manager by the Client in its sole discretion (the "Discretionary Account" or the "Account"), solely for the purposes and with the power, authority and limitations set forth herein including on the Services Schedule attached hereto as Appendix B (the "Services Schedule"). The Manager hereby accepts its appointment as discretionary investment manager with respect to the Discretionary Account upon the terms, and subject to the conditions, set forth herein. The discretionary investment management responsibilities and duties of the Manager are limited to the assets now or hereafter contained in the Discretionary Account. Any assets designated on Exhibit I to the Services Schedule as "Held-Away Assets" shall not be part of the Account.

The Client hereby further appoints the Manager to provide non-discretionary, investment consulting services ("Investment Consulting Services") from time to time with respect to the Account solely for the purposes and with the power, authority and limitations set forth on the Services Schedule. The Client further authorizes the Manager to perform the non-discretionary investment implementation services (the "Implementation Services" and together with the Investment Management Services and Investment Consulting Services, the "Services") with respect to the Account. The Manager hereby accepts such appointment with respect to the Account upon the terms, and subject to the conditions, set forth herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the terms and conditions of this Agreement including, without limitation, any investment restrictions set forth herein, the Client hereby grants the Manager complete and unlimited investment discretion and trading authority with respect to the Discretionary Account, including, without limitation, the power and authority to appoint , either directly or through investment in Pooled Funds (as defined below), and appoints the Manager as the Client's agent and attorney-in-fact with respect to the same. Without in any way limiting the preceding sentence and without obtaining the consent of, or consulting with, the Client or any other person, the Manager is hereby authorized for and on behalf of the Client, with respect to the Discretionary Account, in the Manager's discretion to perform the Investment Management Services set forth on the Services Schedule, attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From time-to-time as agreed between the parties, the Manager shall provide strategic asset allocation and risk mitigation analyses and related educational information (collectively "Asset Allocation Information") regarding various asset allocation scenarios with respect to the Portfolio, including sample combinations of asset classes and expected returns of each scenario based upon capital market assumptions developed by the Manager, its affiliates or third parties. Client acknowledges that it shall not use any Asset Allocation Information provided by the Manager as the sole basis for its asset allocation decisions for the Portfolio, and will consider its own needs and expected returns in making asset allocation decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Manager will advise and assist the Client in drafting and/or revising an investment policy statement ("IPS") for the Portfolio that sets forth all pertinent details with respect to the strategic asset allocation established by the Client. Such IPS will be reviewed for formal approval and adoption by the Client. This document will also delineate roles and responsibilities, fiduciary practices and investment guidelines, in each case relating to the Portfolio. Any changes to the Manager's policies with regard to portfolio structure of the Discretionary Account or with regard to the identity of Subadvisers retained to manage any portion of the Discretionary Account, shall be communicated in writing when formalized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Client authorizes the assets of the Discretionary Account to be invested by the Manager in one or more series of the Mercer Funds, an open-end investment company registered under the 1940 Act (the "Mercer Mutual Funds", or the "Mercer Pooled Funds"), and/or in any third party common trust fund, mutual fund, or other commingled fund (together with the Mercer Pooled Funds, the "Pooled Funds"), or separate account managed by a third-party investment manager (each such third party investment manager to a separate account or Pooled Fund, a "Subadviser"), in each case as permitted by applicable law, including but not limited to US securities laws, and the Client's IPS. The Client acknowledges that the Manager may rely upon the agreements, representations, warranties and covenants made in this Agreement in connection with any investment of some or all of the Discretionary Account in any Mercer Mutual Fund or third party Pooled Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Client will engage and appoint a custodian bank, which may be the Client's directed broker/dealer, to hold the Account's assets and provide services to the Account (the "Custodian") and the Manager shall not be deemed a trustee or custodian hereunder of any of the Account's assets. To the extent the Client's Custodian serves as Client's directed broker/dealer, the Client expressly directs the Manager to exercise the trading authority granted herein solely through such Custodian and the Manager shall have no obligation to make best execution

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determinations with respect to the same. Upon request, and as agreed by Client and the Manager from time to time, the Manager shall have access to accounting information provided by the Custodian with respect to the Account, including management and compliance reporting, in an industry-standard format. The Manager shall have no responsibility for valuation matters with respect to the Portfolio. All information and data supplied by or on behalf of Client shall be used by the Manager without independently verifying the accuracy, completeness or timeliness of it. The Manager's ability to provide services pursuant to this Agreement may be limited by the content or frequency of information provided by the Custodian, and the Manager will not be responsible for any losses or liability to the Portfolio arising from missing, delayed, incomplete, inaccurate or outdated information or data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subadvisers may effect transactions through or with any broker or dealer. In selecting a broker or dealer, a Subadviser may consider the full range and quality of a broker's or dealer's services including, among other things, execution capability, commission rate, and financial responsibility, responsiveness to the Subadviser and the value of research and/or brokerage services provided to the Subadviser. The Subadviser may select broker-dealers that provide research or other brokerage services and may cause the Portfolio, or a Pooled Fund in which it invests, to pay such broker-dealers commissions for affecting transactions in excess of commissions other broker-dealers may have charged as permitted by applicable law. Such research and other brokerage services may be used for the benefit of the Subadviser and other client accounts to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Except as expressly set forth herein with regard to the investment management of the Discretionary Account by the Manager, the Client retains all discretionary authority and control with respect to the management and administration of the Portfolio, including the adoption of an investment policy for the Portfolio and compliance with applicable insurance laws. Without limiting the foregoing, the Manager shall have no responsibility of liability for any regulatory reporting or filing requirements applicable to the Client or Portfolio.

**2. MANAGER REPRESENTATIONS, WARRANTIES AND COVENANTS.** 

The Manager represents, warrants and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Manager has full power and authority to execute, deliver and perform this Agreement and does not violate applicable law or any agreement or contract to which the Manager is a party.

**3. CLIENT REPRESENTATIONS, WARRANTIES AND COVENANTS.** 

The Client hereby represents, warrants and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Client has the authority to (i) execute this Agreement; and (ii) appoint the Manager to provide the Investment Management Services with respect to the Discretionary Account and the Investment Consulting Services and Implementation Services with respect to the Account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The information set forth in Appendix A hereto is true, correct and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Client has full power and authority to execute, deliver and perform this Agreement, and the transactions contemplated by this Agreement, including investment in Pooled Funds, for the Portfolio are consistent with and permissible for the Portfolio, and do not violate applicable law or any agreement or contract to which the Client is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Portfolio is not subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Portfolio is not an investment company, as defined in Section 3 of the 1940 Act, or an entity excluded from the definition of investment company under the 1940 Act by reason of Section 3(c)(1) or Section 3(c)(7) thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Portfolio is intended to fund casualty insurance policies issued by the Client. The Client acknowledges and agrees that the Client is solely responsible, and, provided the Manager has acted in accordance with the authority granted hereunder, including the investment guidelines and restrictions approved by the Client's Board of Directors, the Manager shall have no responsibility or liability whatsoever, for: (i) Client's and/or the Portfolio's compliance with the insurance laws or regulations of any country, state, territory or locality, or (ii) the Portfolio's ability to satisfy liabilities from claims on such insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The assets of the Portfolio are not directly or, to the knowledge of the Client, indirectly, derived from activities that contravene the laws and regulations of the United States or the laws and regulations of other applicable jurisdictions, including but not limited to laws and regulations related to terrorist financing or economic sanctions. To the extent necessary under applicable law, the Client has established and applies anti-money laundering practices and procedures that comply with all applicable laws, rules and regulations and are designed to detect and report any activity that raises suspicion of money laundering activities, and to the best of Client's knowledge, none of (i) the Client or Portfolio or (ii) any person controlling or controlled by the Client or Portfolio, or (iii) any person having a beneficial interest in the Client or Portfolio, is (A) ordinarily resident in or organized under the laws of a country subject to comprehensive economic sanctions administered by the Office of Foreign Assets Control ("OFAC") within the U.S. Department of Treasury, including but not limited to Cuba, Iran, North Korea, Sudan, Syria, and the Crimea Region of Ukraine or (B) currently the subject of any sanctions administered or enforced by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In connection with the Client's selection of the Manager as investment adviser (i) it has performed its own due diligence and analysis; (ii) it has read and understood the disclosures contained in the Manager's Form ADV Part 2, which discloses the Manager's actual and potential conflicts of interest; and (iii) it has not relied upon any advice or recommendation from any affiliate of the Manager to make such selection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Client is an "accredited investor" as defined in Rule 501(a) of Securities and Exchange Commission Regulation D, a "qualified client" as defined in Rule 205-3 of the Advisers Act, and a "qualified purchaser" as defined in Section 2(a)(51) of the 1940 Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Client is an institutional investor who meets the definition of a "qualified institutional buyer" as defined in rule 144A under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Client is an eligible contract participant within the meaning of Section 1(a)(18) of the Commodity Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Client (or its representative) is a sophisticated person who has the resources and experience to understand all of the terms of this agreement, the Client has the bargaining power to negotiate the terms of this agreement on an arm's length basis that the Client has received all information the Client considers necessary to evaluate the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Client acknowledges that it has reviewed the fee information provided in Appendix C hereto, and has concluded that such fees provide reasonable compensation to the Manager for the Services provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Client acknowledges that the Manager has provided the Client with the offering materials for the various Mercer Pooled Funds in which the Account may invest. The Client also acknowledges that the Client has had a reasonable opportunity to review such materials, including any related fee, expense, and liquidity information regarding such investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Client understands and acknowledges that the Manager shall periodically seek to rebalance the assets of the Account consistent with the Portfolio's "Permitted Ranges" as set forth in the IPS to the extent reasonably practicable given the liquidity constraints of the Portfolio's investments. Accordingly, the Client agrees that if a Portfolio is outside of the "Permitted Range" for an asset class as a result of the fluctuation in values after the date of an investment as a result of the liquidity terms of an investment, the Manager shall not be deemed to have violated the terms of the Agreement or the IPS or be liable for any losses related to such asset allocation being outside of a "Permitted Range" unless the Manager has violated its standard of care as described in Section 8 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Client acknowledges that the Manager has made no warranties or representations as to the ability of the Manager to achieve the investment objectives of the Account, or as to future performance of the Account, and that there can be no assurance that the Account will avoid losses or experience positive returns.

**4. OTHER AGREEMENTS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Client hereby agrees to notify the Manager promptly of the Client becoming aware of (i) any changes with respect to the representations, warranties and covenants set forth in Section 3 above or the information set forth in Appendix A hereto, or any circumstances that may reasonably be expected to result in any such changes, and (ii) any notifications or determinations by any applicable Federal or state agency, with respect to, or affecting, the Client or Portfolio, including without limitation the material adverse results of any audit of the Client or Portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Client agrees to promptly provide such information and to execute and deliver such documents as the Manager may reasonably request, including to comply with any and all laws and ordinances to which the Manager, the Pooled Funds, or Subadvisers may be subject, or to verify that the Portfolio qualifies as an eligible investor in a Pooled Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Client shall indemnify and hold harmless the Manager and its affiliates, and their respective officers, directors, agents, contractors and employees ("Indemnified Persons"), from and against any and all claims, losses, liabilities or damages (including reasonable attorneys' fees and other related expenses) (collectively, "Losses") arising from or in connection with this Agreement, including without limitation (i) any breach of this Agreement by the Client, (ii) any inaccuracy or incompleteness of the representations and warranties made by Client in this Agreement, and (iii) any violation of applicable law by the Client; provided, however, that the Client shall not be required to indemnify and hold harmless the Indemnified Persons to the extent that such Losses result from the Manager's negligence, bad faith, willful misconduct, breach of this Agreement or violation of applicable law. This provision will survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Manager is authorized to rely on the information supplied by the Client (or on behalf of the Client) as being accurate and complete. The Manager's responsibilities (and any associated compensation) do not include independent verification of such information. Client shall promptly advise the Manager if Client has concerns about information availability or quality. Without limiting the foregoing, Client agrees that it is responsible for informing the Manager of any applicable restrictions or limitations on the Portfolio's investments imposed by any insurance law or regulation, or by any insurance regulator having jurisdiction over the Client and/or the Portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Reports, analyses and other materials the Manager provides to Client are solely for Client's internal use. Except for Client and Client's advisors who have a need to know and except as required by applicable law, such reports, analyses and other materials may not be given to or shared with anyone else, or used for any purpose other than as the Manager contemplated when the Manager originally provided them, without the Manager's prior written consent. Client agrees not to refer to the Manager in the press or for promotional purposes without the Manager's prior written consent. The Manager agrees not to refer to the Client or the Portfolio in the press or for promotional purposes without Client's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Manager retains exclusive rights to the intellectual capital (such as methodologies, know how, models, tools, and any graphic or digitized representation of any of these) developed or possessed by the Manager prior to, or acquired during, the performance of the Services hereunder. The Client acknowledges that the investment advisor profiles, performance histories, and other information contained in the Manager's databases and reports are proprietary information of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Manager may utilize the administrative and support functions of its global affiliates, which may require the transfer of information provided by Client to the Manager hereunder to a non-U.S. affiliate of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the extent the Manager provides commodity trading advice to Client:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Manager hereby acknowledges that it is a commodity trading advisor ("CTA") with respect to Client.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Manager represents and warrants to Client that Manager is registered as a CTA under the Commodity Exchange Act ("CEA") and is a member of the National Futures Association ("NFA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Client acknowledges and agrees that Manager, as a registered CTA, intends to treat the Client as an "exempt account" under Commodity Futures Trading Commission ("CFTC") Regulation 4.7(c) and, accordingly, Manager needs to verify certain information in order for Manager to claim relief from the disclosure and certain recordkeeping provisions of the CEA. Accordingly, Client represents and warrants to Manager that Client is a "qualified eligible person" under CFTC Regulation 4.7. Client agrees to furnish Manager with such financial and other information as Manager may reasonably request to confirm Client's status (or continuing status) as a qualified eligible person and to inform Manager promptly if Client loses status as a qualified eligible person. Client consents to the Account being treated as an "exempt account" within the meaning of CFTC Regulation 4.7(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Client represents and warrants to Manger that Client is currently, and will continue to be an "eligible contract participant" within the meaning of Section la(18) of the CEA.

**5. COMPENSATION TO BE PAID TO THE MANAGER.** 

The Client will cause to be paid to the Manager as compensation for the Manager's services rendered and for the expenses borne by the Manager pursuant to this Agreement, a quarterly fee in accordance with Appendix C to this Agreement. Such compensation shall be paid within 30 days following the rendering of the invoice with respect to the quarter to which it relates. The Manager shall be entitled to payment for the performance of any additional services not set forth herein, as reasonably agreed in writing in advance between the Manager and the Client. In the event of the termination of this Agreement, the Manager shall be entitled to payment for its agreed upon services up to and including the date of termination.

**6. ASSIGNMENT; AMENDMENTS OF THIS AGREEMENT.** 

This Agreement may not be assigned (as defined under the Advisers Act and the rules adopted pursuant thereto) without consent of the parties hereto. This Agreement may be amended only by a written instrument signed by the Manager and the Client.

**7. EFFECTIVE PERIOD AND TERMINATION OF THIS AGREEMENT.** 

This Agreement shall become effective upon the Effective Date, and shall remain in full force and effect continuously thereafter until terminated, without the payment of any penalty by the Client or the Manager, on 60 days' prior written notice.

**8. STANDARD OF CARE; LIMITATION OF LIABILITY.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Manager will exercise its duties, responsibilities and powers with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Manager shall perform the Services in good faith and in accordance with applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Manager shall not be liable for any Losses sustained by the Account, the Portfolio, or the Client in connection with the Services provided under this Agreement unless such Losses have been finally determined to have resulted from the negligence, fraud, willful misconduct, or bad faith conduct by the Manager or any officer, director or employee of the Manager or its affiliates in the performance of its Services hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the foregoing, the Manager will not be liable for any Losses incurred as a result of: (i) any action or omission by any other fiduciaries or service providers to the Client or Portfolio, including the Custodian, or any other third party, except to the extent the Manager selected such third party for the Discretionary Account and was negligent in the selection and supervision of such third party; (ii) any inaccuracy or incompleteness of the data provided by the Client or its agents and representatives, including any investment managers, Custodian, or other service providers; (iii) any act taken or omitted at the direction of the Client; (iv) any act taken, or omission or recommendation made, or for any error in judgment, in the absence of negligence, bad faith or willful misconduct; (v) the purchase, retention, sale or exchange of any investments in good faith and in accordance with the provisions of this Agreement and of any applicable Federal law; or (vi) the disposition of any investment made by a predecessor investment manager or by any other person authorized to invest assets of the Portfolio, or for the retention thereof if the Manager is unable to dispose of such investment or property because of any Federal or state securities laws restrictions, or because of its unmarketable or illiquid nature, or because an orderly liquidation is impracticable in the opinion of the Manager (or of any third party appointed by the Manager) under prevailing conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Under no circumstances shall the Manager be liable to the Client or any third party for special, punitive or consequential damages, arising under or in connection with this Agreement, even if previously informed of the possibility of such damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS SECTION OR ELSEWHERE IN THIS AGREEMENT SHALL CONSTITUTE A WAIVER BY THE CLIENT OF ANY OF ITS LEGAL RIGHTS THAT MAY NOT BE WAIVED UNDER ANY APPLICABLE LAW, INCLUDING U.S. FEDERAL AND STATE SECURITIES LAWS, OR ANY OTHER LAW. CLIENT MAY PURSUE ANY COURSE OF LEGAL REMEDY PERMITTED UNDER APPLICABLE LAW.**

**9. AUTHORIZED PERSONS.** 

The Client will from time to time certify to the Manager the name of the person or persons authorized to act or give instructions on its behalf and will give the Manager a specimen of his or her or their signatures. Any person so certified will be an authorized representative of the Client for purposes of this Agreement and his authority to act on behalf of the Client will continue until notice to the contrary is given by the Client and received by the Manager.

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**10. NON-EXCLUSIVITY OF SERVICES.** 

The Client understands that the Manager, each Subadviser, and their respective affiliates may furnish and may continue to furnish investment management and advisory services to others, and that the Manager, each Subadviser, and their respective affiliates shall be at all times free, in their discretion, to make recommendations to, and investments for, others which may not correspond to investments made for the Discretionary Account (or Pooled Fund in which it invests). The Client further understands that the Manager, each Subadviser, and their respective affiliates, officers, directors, members, employees or any member of their families may or may not have an interest in the securities the purchase and sale of which the Manager or a Subadviser effects for the Discretionary Account (or Pooled Fund in which it invests). Actions taken by the Manager or a Subadviser on behalf of the Discretionary Account (or Pooled Fund in which it invests) may be the same as, or different from (i) actions taken by the Manager or the Subadviser on its own behalf or for others, and (ii) actions taken by the respective affiliates, officers, directors, members, or employees, of the Manager or any Subadviser, the family members of such persons or other investors.

**11. APPLICABLE LAW.** 

This Agreement shall be construed in accordance with applicable federal law and the laws of the State of New York, to the extent not preempted by federal law, and not giving effect to the conflicts of laws provisions thereof.

**12. DISPUTE RESOLUTION.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any dispute arising out of or relating to this Agreement, including the breach, termination or validity thereof, shall be finally resolved by arbitration conducted on a confidential basis in accordance with the International Institute for Conflict Prevention and Resolution ("CPR") Rules for Non-Administered Arbitration, by three arbitrators, of whom each party shall designate one, with the third arbitrator to be designated by the two Party-appointed arbitrators. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1 et seq. and judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof. The place of the arbitration shall be New York, New York, USA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The tribunal shall have the power to rule on any challenge to its own jurisdiction or the validity or enforceability of any portion of the agreement to arbitrate. The parties agree to arbitrate solely on an individual basis, and that this agreement does not permit class arbitration or any claims brought as a plaintiff or class member in any class or representative arbitration proceeding. The arbitral tribunal may not consolidate more than one person's claims, and may not otherwise preside over any form of a representative or class proceedings. In the event the prohibition on class arbitration is deemed invalid or unenforceable, then the entire agreement to arbitrate will be null and void.

**13. NOTICES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise specified in this Agreement, notice will be in writing and be deemed to have been given (i) when received, if delivered in person, (ii) when delivered by a nationally, or internationally, as the case may be, recognized overnight courier service, (iii) when delivered electronically as described in paragraph (b) below, or (iv) five Business Days after being deposited in the mail, first class (or air mail if the recipient is in another country), postage prepaid, addressed as follows:

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If to the Client:

Accelerant Specialty Insurance Company

[\*\*\*]

Attn: [\*\*\*]

With a copy (which shall not constitute notice) to:

Accelerant Specialty Insurance Company

[\*\*\*]

Attn: [\*\*\*]

Email: [\*\*\*]

If to the Manager:

Mercer Investments LLC

[\*\*\*]

Attention: [\*\*\*]

Email: [\*\*\*]

or to such other address as any of the above will hereafter furnish in writing to the other in accordance with this Agreement, provided that notice of such other address will be effective only upon receipt thereof. All oral communications shall be confirmed in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Client hereby consents to electronic delivery of all documents from the Manager via e-mail in PDF format, which will require the use of Adobe Acrobat to view. A free copy of Adobe Acrobat can be downloaded at Adobe's website [www.adobe.com]. E-mails shall be sent to the following Client e-mail address(es):

[\*\*\*]

or to such other e-mail address as may be furnished in writing to the Manager in accordance with this Agreement, provided that notice of such other e-mail address will be effective only upon receipt thereof. The Client may, at any time, request to receive a paper copy of a document delivered electronically at no additional charge, by contacting the Manager. Such consent to electronic delivery will remain in effect until the Manager has received written notice of Client's revocation of consent. To revoke consent, the Manager must receive written notice, signed by the Client. Revocation of consent may be sent in person or via courier or first class mail as described in paragraph (a) above.

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**14. SEVERABILITY OF PROVISIONS** 

If any provision or portion of any provision of this Agreement, or the application of any such provision or portion to any person or circumstance, is held to be invalid or unenforceable, such provision or portion of any provision of this Agreement shall be modified, deleted or interpreted in such a manner so as to afford the party for whose benefit it was intended the fullest benefit commensurate with making this Agreement as modified, enforceable, and the remaining provisions of this Agreement or the remaining portion of such provision, and the application of such provision or portion to persons or circumstances other than those as to which it is held invalid or unenforceable, will not be affected thereby.

**15. FORM ADV, PART 2** 

The Client acknowledges receipt of the Manager's Form ADV Parts 2A and 2B.

**16. MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement (including any schedules or exhibits attached hereunder) merges and supersedes all prior or contemporaneous understandings, agreements, negotiations and discussions, whether oral or written, between the parties concerning the Services and constitutes the entire agreement between the parties with regard to such Services. The parties have not relied upon any promises, representations, warranties, agreements, covenants or undertakings, other than those expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement may be executed in counterpart copies, each of which shall be deemed an original, but all of which shall be considered the same instrument.

PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS AGREEMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS AGREEMENT.

\* \* \* \* \* \*

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IN WITNESS WHEREOF, Client and the Manager have caused this instrument to be signed in duplicate on its behalf by its duly authorized representative, as of the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| ACCELERANT SPECIALTY INSURANCE COMPANY | ACCELERANT SPECIALTY INSURANCE COMPANY | MERCER INVESTMENTS LLC | MERCER INVESTMENTS LLC |
| By: | /s/ Joseph W. Zuk | By: | /s/ Steve Gouthro |
|  Name: | Joseph W. Zuk | Name: | Steve Gouthro |
|  Title: | President | Title: | Chief Operations Officer |

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<u>APPENDICES</u> 

Appendix A — Account Information

Exhibit I — Incumbency Certificate

Exhibit II — Client Authorized Signers

Exhibit III — Form W-9

Appendix B — Services Schedule, including Investment Consulting Services, Implementation Services, and Investment Management Services

Exhibit I — Advisory Only Account and Held-Away Assets (if any)

Appendix C — Fees

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**APPENDIX A** 

**ACCOUNT INFORMATION** 

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EXHIBIT III TO APPENDIX A

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**APPENDIX B** 

**SERVICES SCHEDULE** 

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**EXHIBIT 1 TO APPENDIX B** 

**<u>HELD-AWAY ASSETS</u>**

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APPENDIX C

**FEES**

## Exhibit 10.33

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.33** 

***EXECUTION VERSION***

**SECOND AMENDMENT** 

**TO INVESTMENT SERVICES AGREEMENT** 

THIS SECOND AMENDMENT ("Second Amendment") to the Investment Services Agreement ("Agreement") dated January 21, 2022, as previously amended, by and between Mercer Investments LLC, a Delaware limited liability company (the "Manager"), Accelerant Specialty Insurance Company, an Arkansas domestic surplus lines carrier, and Accelerant National Insurance Company, a Delaware domiciled property casualty insurance carrier (each a "Client", collectively "Clients"), is made effective as of the 27th day of March, 2023.

**<u>RECITALS</u>** 

WHEREAS, pursuant to Section 6 of the Agreement, Client and Mercer desire to amend the Agreement as provided herein.

NOW THEREFORE, in consideration of the promises and mutual agreements set forth herein, the parties hereby agree to amend the Agreement, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Appendix A of the Agreement is hereby amended by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Including the "ASIC/ANIC Reinsurance Collateral Pool" as an additional "Portfolio" under
the Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Deleting Exhibit II to Appendix A of the Agreement in its entirety and replacing it with Exhibit II of Appendix
A attached to this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Effective October 1, 2022, Appendix C of the Agreement is hereby deleted in its entirety and replaced with
the Appendix C attached to this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. All other terms and provisions of the Agreement shall remain in full force and effect, except as stated herein.

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

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| | |
|:---|:---|
| **MERCER INVESTMENTS LLC** | **MERCER INVESTMENTS LLC** |
| By: | /s/ Stephen Gouthro |
| Name: | Stephen Gouthro |
| Title: | Chief Operating Officer |
| Date: | 3/27/2023 |

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| | |
|:---|:---|
|  **ACCELERANT SPECIALTY INSURANCE COMPANY** | **ACCELERANT SPECIALTY INSURANCE COMPANY** |
| By: | /s/ Joseph Zuk |
| Name: | Joseph Zuk |
| Title: | President |
| Date: | 3/27/2023 |

---

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| | |
|:---|:---|
|  **ACCELERANT NATIONAL INSURANCE COMPANY** | **ACCELERANT NATIONAL INSURANCE COMPANY** |
| By: | /s/ Joseph Zuk |
| Name: | Joseph Zuk |
| Title: | President |
| Date: | 3/27/2023 |

---

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![LOGO](g543111snap305.jpg)

**EXHIBIT II TO APPENDIX A** 

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**APPENDIX C** 

**FEES**

## Exhibit 10.34

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.34** 

***EXECUTION VERSION***

**Investment Management Agreement** 

This AGREEMENT dated as of the 8<sup>th</sup> day of August, 2023, is entered into by and between Accelerant Specialty Insurance Company (the "Client"), a US non-admitted insurance company carrier organized under the laws of Arkansas, United States and Wellington Management Company LLP ("Wellington Management"), a limited liability partnership organized under the laws of the State of Delaware.

1 APPOINTMENT

The Client hereby appoints Wellington Management as investment manager to manage, supervise and direct the Client's investment account or accounts (collectively, the "Account") under the terms and conditions set out in this Agreement. By execution of this Agreement, Wellington Management accepts appointment as investment manager and agrees to manage, supervise and direct the investments of the Account pursuant to the provisions of this Agreement. The assets (including any interest accrued thereon) in the Account managed by Wellington Management pursuant to this Agreement shall remain vested in and owned exclusively by the Client.

Unless otherwise agreed in writing, Wellington Management's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Account custodian, as designated in writing by the Client (the "Custodian"), and Wellington Management have reconciled to Wellington Management's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and Wellington Management's portfolio trading systems (the "Effective Date").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

Wellington Management shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement, subject to the investment objectives and guidelines set out in Attachment A (the "Investment Guidelines") and any instructions from the Client ("Instructions"). Wellington Management shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, conversion or other transactions in any and all stocks, bonds, other securities cash or currencies, and other Account assets, including shares of a registered investment company for which Wellington Management may act as investment adviser and, upon proper authorization by the Client, interests in a collective trust maintained by a bank or trust company or a private fund, including one maintained by an affiliate of Wellington Management (collectively "Wellington Sponsored Funds"), provided there is no duplication of fees paid to Wellington Management on the one hand and any of the Wellington Sponsored Funds on the other hand. Wellington Management's authority to act on behalf of the Client with regard to the Wellington Sponsored Funds is limited to engaging in authorized trading on behalf of the Account and transferring capital for purposes of authorized trading within the Account only. To the extent that Wellington Management is authorized to invest in private funds under the guidelines, Wellington Management is authorized to enter into voting agreements in connection with the purchase or sale of an investment in private companies. Upon prior written notice to the Client, Wellington Management may engage any of its affiliates, to assist it with providing its services under this Agreement (including affiliates outside of the United States), provided that Wellington Management will remain responsible for the performance of its obligations under the Agreement. Wellington Management's engagement of such affiliates shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's affiliates, and such affiliates shall be subject to the same confidentiality provisions as Wellington Management under this Agreement.

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3 DISCRETIONARY AUTHORITY- BROKER SELECTION AND TRADING

Wellington Management shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("Brokers"). Wellington Management may select Brokers, including those which from time to time may furnish to Wellington Management or its affiliates statistical and investment research or execution services in accordance with Section 28(e) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). Wellington Management's Broker selection shall be conducted in accordance with its Policy and Procedures on Order Execution, as may be amended from time to time, and which is available upon request.

The Client acknowledges Brokers may request information about the Client from Wellington Management in connection with the Brokers' anti-money laundering or client identification obligations. Wellington Management is hereby authorized to furnish such information to such Broker based on information provided to Wellington Management by the Client. In addition, the Client agrees that, upon written request, the Client will promptly provide Wellington Management with such information about the Client or documentation relating to it as Wellington Management may reasonably request in order to respond to a Broker's request. Wellington Management shall maintain all such information and documentation as confidential, and will comply with all applicable data privacy laws and regulations, and implement appropriate technical and non-technical safeguards, with respect to such information and documentation. In certain circumstances, Wellington Management may require the Client to enter into trading or other agreements directly with a Broker.

Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of Brokers and shall seek "best execution" of Client trades, considering all relevant circumstances. Subject thereto, neither Wellington Management nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client where Wellington Management has acted in accordance with its standard of care regarding the selection of such Brokers. Unless otherwise instructed by the Client in writing, Wellington Management will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian.

Wellington Management may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by Wellington Management on behalf of Wellington Management's other clients. Such aggregated orders (including associated expenses) will be allocated by Wellington Management as set forth in Wellington Management's Policy and Procedures Regarding Allocation of Trades as may be amended from time to time. A copy of this policy is available upon request. In addition, subject to applicable laws. rules and regulation, Wellington Management may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of Wellington Management as set forth in Wellington Management's Policy and Procedures on Order Execution.

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| | |
|:---|:---|
| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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Wellington Management makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that the Investment Guidelines are and will remain consistent with and include the provisions of law, regulatory policies and organizational documents applicable to the Client.

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Subject to any provision in the Investment Guidelines to the contrary, Wellington Management shall apply Investment Guidelines as follows: (i) asset-based restrictions (e.g., exposure and concentration limits) shall be applied at the time of acquisition based on the market value of the investments versus the total net assets of the Account; and (ii) credit ratings for issuers and counterparties will be determined by reference to the ratings assigned by a Nationally Recognized Statistical Rating Organization, as defined in the Exchange Act (with Wellington Management determining the appropriate rating in the case of split ratings) and/or the credit rating assigned by Wellington Management. Ambiguities in the Investment Guidelines may be interpreted by Wellington Management in good faith and consistent with its fiduciary duty to the Client. In the case of such interpretations, Wellington Management shall manage the Account in the best interests of the Client, and Wellington Management shall provide notification of such interpretations to the Client as soon as reasonably practicable.

Wellington Management may, at its expense, utilize unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions.

The Client may give Instructions to Wellington Management or modify the Investment Guidelines at any time. Wellington Management shall have a reasonable period to comply with Instructions and/or bring the Account into compliance with any changes to the Investment Guidelines. The Client covenants that any Instructions or modifications to Investment Guidelines shall be consistent with the provisions of law, regulatory policies and organizational documents applicable to the Client, and the Client agrees to indemnify and hold harmless Wellington Management from any act or omission taken by Wellington Management in accordance with Client Instructions.

5 TAX MATTERS

Except as otherwise specified in the Investment Guidelines, Wellington Management will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by Wellington Management on behalf of the Account. Neither Wellington Management nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

6 APPRAISAL OF ACCOUNT AND VALUATION

Wellington Management will provide the Client with a monthly and quarterly appraisal of the Account as of the last day on which the New York Stock Exchange is open for each calendar month or quarter as applicable (the "Appraisal Date"). Such appraisal will be in the form of a written summary of assets of the Account on the Appraisal Date, based on Wellington Management's trading records and Pricing Policies and Procedures, and will be provided to the Client solely for informational purposes.

Wellington Management endeavors to value all securities at fair market value as determined by Wellington Management in good faith and in accordance with its Pricing Policies and Procedures, as may be amended from time to time. A copy of these policies and procedures are available upon request. Wellington Management is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

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7 MANAGEMENT FEE

The Client will pay to Wellington Management a management fee as set forth Attachment B (the "Management Fee").

The Management Fee is exclusive of any taxes payable by the Client (including value added taxes), and to the extent that any such taxes serve to reduce the amount received by Wellington Management for its services hereunder (not including taxes properly paid or to be paid by Wellington Management such as income taxes), the Client agrees to pay Wellington Management an additional amount such that Wellington Management receives the full Management Fee.

8 PROCEDURES

All transactions will be consummated by payment to, or delivery by the Custodian, of all cash and/or securities due to or from the Account according to local market settlement conventions. Wellington Management shall not act as custodian for the Account. Notwithstanding any other provision in this Agreement, Wellington Management shall not hold, directly or indirectly, funds or securities contained in the Account or have any authority to obtain possession of them. Instructions by Wellington Management to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of Wellington Management, orally and confirmed by such transmission method as soon as practicable thereafter.

Wellington Management shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide Wellington Management with such periodic reports concerning the status of the Account as Wellington Management may reasonably request.

Neither Wellington Management nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, Wellington Management does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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| | |
|:---|:---|
| 9 | PROXIES  |

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The Client instructs Wellington Management to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorizes Wellington Management to instruct the Custodian to forward promptly to Wellington Management only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that Wellington Management will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

10 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

Wellington Management will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other third-party legal proceeding related to securities currently or previously held in the Account ("Legal Proceedings"). Wellington Management shall provide factual information relating to Client's account in its possession as the Client may reasonably request. Client shall pay or reimburse costs actually and reasonably incurred by Wellington Management in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of Wellington Management's roles and responsibilities under this Agreement.

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11 SERVICE TO OTHER CLIENTS

It is understood that Wellington Management and its affiliates provide investment management and advisory services for other clients, including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that Wellington Management or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. Wellington Management shall not be precluded from any of the foregoing activities, provided such activities do not otherwise result in a breach of this Agreement including, without limitation, Section 18 (Confidentiality).

12 STANDARD OF CARE; LIABILITY

Wellington Management shall discharge its duties under this Agreement with the care, skill, prudence and diligence that a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), acting in a like capacity would use in the conduct of a like enterprise with like aims, taking into consideration the facts and circumstances then prevailing and consistent with the Investment Guidelines. Unless Wellington Management has breached the standard of care set forth in this Agreement or under applicable law, Wellington Management shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under the Agreement including acts or omissions made in response to Client Instructions, except to the extent such act or omission constitutes a material breach of this Agreement, wilful misfeasance, bad faith or gross negligence on the part of Wellington Management, or any of its affiliates or delegates. Nothing herein in any way constitutes a waiver or limitation of any right of any person under any applicable federal or state securities laws of the United States of America.

In no event shall either party or any of its affiliates be liable hereunder for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

13 REPRESENTATIONS BY WELLINGTON MANAGEMENT

By execution of the Agreement, Wellington Management represents that: (i) it is duly registered as an Investment Adviser with the Securities and Exchange Commission pursuant to the **Advisers Act** and that it provided the Client with Part 2 of its registration statement on Form ADV (the "Form ADV")<sup>1</sup> prior to signing the Agreement; (ii) it will notify the Client of any additions to or withdrawals of partners of Wellington Management within a reasonable time after such additions or withdrawals; (iii) it is in compliance with, and shall perform its obligations hereunder in compliance with, all applicable laws and regulations, including, without limitation, maintaining all necessary licenses and consents, (iv) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon Wellington Management in accordance with its terms; and (v) all representations made under this Agreement are true and accurate. Wellington Management covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate and that the Client may rely on the accuracy of such representations in its performance hereunder. Wellington Management agrees to notify the Client promptly of any changes to the representations made in this Section that would result in a representation becoming untrue.

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14 REPRESENTATIONS BY THE CLIENT

By execution of the Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Client has received a copy of Part 2 of Wellington Management's Form ADV; and (iv) all representations made under this Agreement are true and accurate. The Client covenants that any future representations made to Wellington Management under or relating to this Agreement shall be true and accurate and that Wellington Management may rely on the accuracy of such representations in the performance of its duties hereunder.

The Client further represents that (i) the Account is not comprised of "plan assets," as such term is defined under the Employee Retirement Income Security Act of 1974, as amended; (ii) the Client is not a "private fund" as defined under the Advisers Act. Client agrees to notify Wellington Management promptly of any changes to the representations made in the aforementioned paragraphs that would result in a representation becoming untrue.

The Client additionally agrees to each of the representations, warranties and agreements set forth in Attachment C, Master Agreement Representations.

15 USE OF SERVICE PROVIDERS

Wellington Management may employ third party agents to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding, and corporate action processing, required to enable Wellington Management to perform the services under this Agreement. Upon the Client's written request, Wellington Management shall identify any such third party agents to Client in writing, with such details as Client may reasonable request. Client authorizes Wellington Management to provide necessary information about the Client and the Client's investments to such third party agents to perform such services, provided that to the extent confidential information is shared with such third-party agents, any such third party agents is also bound by confidentiality and use obligations at least as protective as those herein, , and when reasonably requested by the Client, Wellington Management shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of agents, and the Client will not be responsible for any fees which any agent may charge in connection with such services. Wellington Management will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has employed third party agents to perform any administrative or ancillary services. Wellington Management's engagement of such agents shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's agents.

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16 ASSIGNMENT

No assignment (as defined in the Advisers Act) of the Agreement shall be made by either party without prior written consent of the other party.

17 TERM AND TERMINATION

The Client may terminate this Agreement at any time by providing written notice to Wellington Management. Wellington Management may terminate this Agreement (i) by giving three (3) months' prior written notice to the Client, or (ii) with immediate effect by providing written notice to the Client if so required by an competent regulatory authority or law. The Agreement will continue until terminated by either party in accordance with the terms of this Section 17, or such shorter time period as mutually agreed by the parties. Additionally, the Agreement will automatically terminate upon withdrawal by Client of all assets held in the Account unless otherwise agreed to by the parties. Upon termination, Wellington Management will provide reasonable assistance to Client in transitioning the Account to a successor manager or in liquidating the Account; however, Wellington Management will retain no responsibility or authority over any account assets that cannot be liquidated at the time of termination.

18 CONFIDENTIALITY

Wellington Management and the Client acknowledge and agree that during the term of this Agreement the parties may have access to information that is proprietary or confidential to both parties or their respective affiliates ("Confidential Information"). For the purposes of this Section 18, the party receiving the other party's Confidential Information shall be referred to as the 'receiving party' and the party disclosing such Confidential Information shall be referred to as the 'disclosing party'.

At all times Confidential Information shall be handled at least with the same standard of confidentiality accorded the most sensitive and confidential documents and information of the receiving party, but no less than a commercially reasonable standard of care. The receiving party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the receiving party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the receiving party (collectively, "Representatives") who have a need to know for purposes of this Agreement; and the receiving party shall be responsible to the disclosing party for any breach of this Section by any of the receiving party's Representatives. The receiving party shall promptly notify the disclosing party in writing in the event it becomes aware of any loss or unauthorized disclosure of any Confidential Information by the receiving party or its Representatives. Confidential Information shall not include any information that (i) is or becomes publicly available other than as a result of a breach of this Agreement, (ii) is or becomes available on a non-confidential basis to the receiving party from a source which is not known to the receiving party to be subject to a duty of confidentiality with respect to such information, (iii) was legally in the receiving party's possession prior to disclosure by the disclosing party without any obligation of confidentiality, (iv) is developed by or for the receiving party independently of the disclosing party's Confidential Information; or (v) is expressly approved for release by written authorization of the disclosing party.

In the event that the receiving party is requested or required by legal or regulatory authority, law or legal process (including subpoenas) (such request or requirement, a "Demand") to disclose any Confidential Information, the receiving party shall promptly notify the disclosing party of such Demand as reasonable under the circumstances, and only to the extent permitted by law, . In the event that a protective order or other remedy is not obtained, the receiving party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to

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obtain assurance that confidential treatment will be accorded such Confidential Information. The receiving party will provide reasonable cooperation to the disclosing party and its legal counsel with respect to any Demand. Any expenses incurred by the receiving party in complying with this section shall be at the sole cost of the disclosing party.

In addition, the Client acknowledges that Wellington Management may disclose information relating to its investment activities in the normal course of business, including information relating to the Account, provided that no information identifying the Client may be shared.

The Client agrees not to make use of the investment decisions or recommendations of Wellington Management, other than with respect to the Account, without the prior written consent of Wellington Management. In addition, each party shall use its best efforts to ensure that any of its agents or affiliates who may gain access to Confidential Information shall be made aware of its proprietary nature and shall likewise treat it as confidential.

Upon either party's written request each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The terms of this Section shall survive the expiration or termination of this Agreement, and the disclosing party shall be entitled to seek injunctive relief for any violation of this Section.

19 USE OF NAME AND LOGO

Wellington Management shall provide to the Client, upon reasonable request, information relating to Wellington Management and its services to the Account for inclusion in any promotional or disclosure materials relating to the Account. Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from the such party's unauthorized use of the other party's name and logo in marketing materials.

20 FORCE MAJEURE

No party to this Agreement will be liable for any failure or delay in performing any of its obligations under or pursuant to the Agreement, and any such failure or delay in performing its obligations will not constitute a breach of the Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control. Any such non- performing party will be entitled to a reasonable extension of the time for performing such obligations. Events outside a party's reasonable control include any event or circumstance that the party is unable to avoid using reasonable skill and care.

21 CONSTRUCTION OF AGREEMENT

The Agreement will be construed and the rights and obligations of the parties under the Agreement enforced in accordance with the laws of the State of Delaware (without regard to its conflict of laws provisions and

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interpretations) to the extent not pre-empted by applicable federal laws of the United States. The parties agree that the courts of the State of Delaware will have non-exclusive jurisdiction over the parties regarding any dispute arising under this Agreement.

22 REPORTS AND NOTICE

Any notice to be given pursuant to the Agreement will be deemed to have been duly given or made as of the date delivered or transmitted, and will be effective upon receipt, if delivered personally, mailed by registered or certified mail (postage prepaid, return receipt requested) to the following addresses, or sent by electronic transmission to the fax number specified below:

To Wellington Management at:

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

To the Client at: Accelerant Specialty Insurance Company

Accelerant Specialty Insurance Company

[\*\*\*]

Attention: [\*\*\*]

With a copy to: [\*\*\*]

With a copy to (which shall not constitute notice): [\*\*\*]

The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by Wellington Management under this Agreement, or pursuant to applicable law, rule or regulation, including delivery of Part 2 of Wellington Management's Form ADV and any updates thereto, and Client represents that it has the means to, and will access, such disclosures in electronic format. Wellington Management shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to Wellington Management.

23 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement. which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

24 AMENDMENTS

The Agreement may be amended only by means of a written document signed by a duly authorized representative of each party.

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25 COUNTERPARTS

The Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.

26 ELECTRONIC SIGNATURES

The parties agree that this Agreement and any documents related hereto may be electronically signed. The parties agree that any electronic signatures appearing on this Agreement and any related documents are the same as handwritten signatures for the purposes of validity, enforceability and admissibility.

Signatures

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| | |
|:---|:---|
| Accelerant Specialty Insurance Company | Accelerant Specialty Insurance Company |
| By: | /s/ Christopher Reid |
| Name: | Christopher Reid |
| Title: | US CFO |
| Agreed and Accepted: | Agreed and Accepted: |
| Wellington Management Company LLP | Wellington Management Company LLP |
| By: | /s/ Charles Mulhern |
| Name: | Charles Mulhern |
| Title: | Senior Managing Director |

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ATTACHMENT A

INVESTMENT OBJECTIVES AND GUIDELINES

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ATTACHMENT B

FEE SCHEDULE

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ATTACHMENT C

MASTER AGREEMENTS REPRESENTATIONS

## Exhibit 10.35

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.35** 

***EXECUTION VERSION***

**Investment Management Agreement** 

This AGREEMENT dated as of the 8th day of August, 2023, is entered into by and between Accelerant National Insurance Company (the "Client"), a US admitted insurance company carrier organized under the laws of Delaware, United States and Wellington Management Company LLP ("Wellington Management"), a limited liability partnership organized under the laws of the State of Delaware.

1 APPOINTMENT

The Client hereby appoints Wellington Management as investment manager to manage, supervise and direct the Client's investment account or accounts (collectively, the "Account") under the terms and conditions set out in this Agreement. By execution of this Agreement, Wellington Management accepts appointment as investment manager and agrees to manage, supervise and direct the investments of the Account pursuant to the provisions of this Agreement. The assets (including any interest accrued thereon) in the Account managed by Wellington Management pursuant to this Agreement shall remain vested in and owned exclusively by the Client.

Unless otherwise agreed in writing, Wellington Management's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Account custodian, as designated in writing by the Client (the "Custodian"), and Wellington Management have reconciled to Wellington Management's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and Wellington Management's portfolio trading systems (the "Effective Date").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

Wellington Management shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement, subject to the investment objectives and guidelines set out in Attachment A (the "Investment Guidelines") and any instructions from the Client ("Instructions"). Wellington Management shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, conversion or other transactions in any and all stocks, bonds, other securities cash or currencies, and other Account assets, including shares of a registered investment company for which Wellington Management may act as investment adviser and, upon proper authorization by the Client, interests in a collective trust maintained by a bank or trust company or a private fund, including one maintained by an affiliate of Wellington Management (collectively "Wellington Sponsored Funds"), provided there is no duplication of fees paid to Wellington Management on the one hand and any of the Wellington Sponsored Funds on the other hand. Wellington Management's authority to act on behalf of the Client with regard to the Wellington Sponsored Funds is limited to engaging in authorized trading on behalf of the Account and transferring capital for purposes of authorized trading within the Account only. To the extent that Wellington Management is authorized to invest in private funds under the guidelines, Wellington Management is authorized to enter into voting agreements in connection with the purchase or sale of an investment in private companies. Upon prior written notice to the Client, Wellington Management may engage any of its affiliates, to assist it with providing its services under this Agreement (including affiliates outside of the United States), provided that Wellington Management will remain responsible for the performance of its obligations under the Agreement. Wellington Management's engagement of such affiliates shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management' affiliates, and such affiliates shall be subject to the same confidentiality provisions as Wellington Management under this Agreement.

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3 DISCRETIONARY AUTHORITY- BROKER SELECTION AND TRADING

Wellington Management shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("Brokers"). Wellington Management may select Brokers, including those which from time to time may furnish to Wellington Management or its affiliates statistical and investment research or execution services in accordance with Section 28(e) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). Wellington Management's Broker selection shall be conducted in accordance with its Policy and Procedures on Order Execution, as may be amended from time to time, and which is available upon request.

The Client acknowledges Brokers may request information about the Client from Wellington Management in connection with the Brokers' anti-money laundering or client identification obligations. Wellington Management is hereby authorized to furnish such information to such Broker based on information provided to Wellington Management by the Client. In addition, the Client agrees that, upon written request, the Client will promptly provide Wellington Management with such information about the Client or documentation relating to it as Wellington Management may reasonably request in order to respond to a Broker's request. Wellington Management shall maintain all such information and documentation as confidential, and will comply with all applicable data privacy laws and regulations, and implement appropriate technical and non-technical safeguards, with respect to such information and documentation. In certain circumstances, Wellington Management may require the Client to enter into trading or other agreements directly with a Broker.

Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of Brokers and shall seek "best execution" of Client trades, considering all relevant circumstances. Subject thereto, neither Wellington Management nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client where Wellington Management has acted in accordance with its standard of care regarding the selection of such Brokers. Unless otherwise instructed by the Client in writing, Wellington Management will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian.

Wellington Management may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by Wellington Management on behalf of Wellington Management's other clients. Such aggregated orders (including associated expenses) will be allocated by Wellington Management as set forth in Wellington Management's Policy and Procedures Regarding Allocation of Trades as may be amended from time to time. A copy of this policy is available upon request. In addition, subject to applicable laws. rules and regulation, Wellington Management may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of Wellington Management as set forth in Wellington Management's Policy and Procedures on Order Execution.

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|:---|:---|
| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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Wellington Management makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that the Investment Guidelines are and will remain consistent with and include the provisions of law, regulatory policies and organizational documents applicable to the Client.

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Subject to any provision in the Investment Guidelines to the contrary, Wellington Management shall apply Investment Guidelines as follows: (i) asset-based restrictions (e.g., exposure and concentration limits) shall be applied at the time of acquisition based on the market value of the investments versus the total net assets of the Account; and (ii) credit ratings for issuers and counterparties will be determined by reference to the ratings assigned by a Nationally Recognized Statistical Rating Organization, as defined in the Exchange Act (with Wellington Management determining the appropriate rating in the case of split ratings) and/or the credit rating assigned by Wellington Management. Ambiguities in the Investment Guidelines may be interpreted by Wellington Management in good faith and consistent with its fiduciary duty to the Client. In the case of such interpretations, Wellington Management shall manage the Account in the best interests of the Client, and Wellington Management shall provide notification of such interpretations to the Client as soon as reasonably practicable.

Wellington Management may, at its expense, utilize unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions.

The Client may give Instructions to Wellington Management or modify the Investment Guidelines at any time. Wellington Management shall have a reasonable period to comply with Instructions and/or bring the Account into compliance with any changes to the Investment Guidelines. The Client covenants that any Instructions or modifications to Investment Guidelines shall be consistent with the provisions of law, regulatory policies and organizational documents applicable to the Client, and the Client agrees to indemnify and hold harmless Wellington Management from any act or omission taken by Wellington Management in accordance with Client Instructions.

5 TAX MATTERS

Except as otherwise specified in the Investment Guidelines, Wellington Management will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by Wellington Management on behalf of the Account. Neither Wellington Management nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

6 APPRAISAL OF ACCOUNT AND VALUATION

Wellington Management will provide the Client with a monthly and quarterly appraisal of the Account as of the last day on which the New York Stock Exchange is open for each calendar month or quarter as applicable (the "Appraisal Date"). Such appraisal will be in the form of a written summary of assets of the Account on the Appraisal Date, based on Wellington Management's trading records and Pricing Policies and Procedures, and will be provided to the Client solely for informational purposes.

Wellington Management endeavors to value all securities at fair market value as determined by Wellington Management in good faith and in accordance with its Pricing Policies and Procedures, as may be amended from time to time. A copy of these policies and procedures are available upon request. Wellington Management is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

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7 MANAGEMENT FEE

The Client will pay to Wellington Management a management fee as set forth Attachment B (the "Management Fee").

The Management Fee is exclusive of any taxes payable by the Client (including value added taxes), and to the extent that any such taxes serve to reduce the amount received by Wellington Management for its services hereunder (not including taxes properly paid or to be paid by Wellington Management such as income taxes), the Client agrees to pay Wellington Management an additional amount such that Wellington Management receives the full Management Fee.

8 PROCEDURES

All transactions will be consummated by payment to, or delivery by the Custodian, of all cash and/or securities due to or from the Account according to local market settlement conventions. Wellington Management shall not act as custodian for the Account. Notwithstanding any other provision in this Agreement, Wellington Management shall not hold, directly or indirectly, funds or securities contained in the Account or have any authority to obtain possession of them. Instructions by Wellington Management to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of Wellington Management, orally and confirmed by such transmission method as soon as practicable thereafter.

Wellington Management shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide Wellington Management with such periodic reports concerning the status of the Account as Wellington Management may reasonably request.

Neither Wellington Management nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, Wellington Management does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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| | |
|:---|:---|
| 9 | PROXIES  |

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The Client instructs Wellington Management to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorizes Wellington Management to instruct the Custodian to forward promptly to Wellington Management only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that Wellington Management will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

10 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

Wellington Management will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other third-party legal proceeding related to securities currently or previously held in the Account ("Legal Proceedings"). Wellington Management shall provide factual information relating to Client's account in its possession as the Client may reasonably request. Client shall pay or reimburse costs actually and reasonably incurred by Wellington Management in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of Wellington Management's roles and responsibilities under this Agreement.

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11 SERVICE TO OTHER CLIENTS

It is understood that Wellington Management and its affiliates provide investment management and advisory services for other clients, including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that Wellington Management or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. Wellington Management shall not be precluded from any of the foregoing activities, *provided* such activities do not otherwise result in a breach of this Agreement including, without limitation, Section 18 (Confidentiality).

12 STANDARD OF CARE; LIABILITY

Wellington Management shall discharge its duties under this Agreement with the care, skill, prudence and diligence that a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), acting in a like capacity would use in the conduct of a like enterprise with like aims, taking into consideration the facts and circumstances then prevailing and consistent with the Investment Guidelines. Unless Wellington Management has breached the standard of care set forth in this Agreement or under applicable law, Wellington Management shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under the Agreement including acts or omissions made in response to Client Instructions, except to the extent such act or omission constitutes a material breach of this Agreement, wilful misfeasance, bad faith or gross negligence on the part of Wellington Management, or any of its affiliates or delegates. Nothing herein in any way constitutes a waiver or limitation of any right of any person under any applicable federal or state securities laws of the United States of America.

In no event shall either party or any of its affiliates be liable hereunder for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

13 REPRESENTATIONS BY WELLINGTON MANAGEMENT

By execution of the Agreement, Wellington Management represents that: (i) it is duly registered as an Investment Adviser with the Securities and Exchange Commission pursuant to the Advisers Act and that it provided the Client with Part 2 of its registration statement on Form ADV (the "Form ADV")<sup>1</sup> prior to signing the Agreement; (ii) it will notify the Client of any additions to or withdrawals of partners of Wellington Management within a reasonable time after such additions or withdrawals; (iii) it is in compliance with, and shall perform its obligations hereunder in compliance with, all applicable laws and regulations, including, without limitation, maintaining all necessary licenses and consents, (iv) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon Wellington Management in accordance with its terms; and (v) all representations made under this Agreement are true and accurate. Wellington Management covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate and that the Client may rely on the accuracy of such representations in its performance hereunder. Wellington Management agrees to notify the Client promptly of any changes to the representations made in this Section that would result in a representation becoming untrue.

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14 REPRESENTATIONS BY THE CLIENT

By execution of the Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) the Agreement has been duly authorized by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Client has received a copy of Part 2 of Wellington Management's Form ADV; and (iv) all representations made under this Agreement are true and accurate. The Client covenants that any future representations made to Wellington Management under or relating to this Agreement shall be true and accurate and that Wellington Management may rely on the accuracy of such representations in the performance of its duties hereunder.

The Client further represents that (i) the Account is not comprised of "plan assets," as such term is defined under the Employee Retirement Income Security Act of 1974, as amended; (ii) the Client is not a "private fund" as defined under the Advisers Act. Client agrees to notify Wellington Management promptly of any changes to the representations made in the aforementioned paragraphs that would result in a representation becoming untrue. The Client additionally agrees to each of the representations, warranties and agreements set forth in Attachment C, Master Agreement Representations.

15 USE OF SERVICE PROVIDERS

Wellington Management may employ third party agents to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding, and corporate action processing, required to enable Wellington Management to perform the services under this Agreement. Upon the Client's written request, Wellington Management shall identify any such third party agents to Client in writing, with such details as Client may reasonable request. Client authorizes Wellington Management to provide necessary information about the Client and the Client's investments to such third party agents to perform such services, *provided* that to the extent confidential information is shared with such third-party agents, any such third party agents is also bound by confidentiality and use obligations at least as protective as those herein, , and when reasonably requested by the Client, Wellington Management shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of agents, and the Client will not be responsible for any fees which any agent may charge in connection with such services. Wellington Management will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has employed third party agents to perform any administrative or ancillary services. Wellington Management's engagement of such agents shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's agents.

16 ASSIGNMENT

No assignment (as defined in the Advisers Act) of the Agreement shall be made by either party without prior written consent of the other party.

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17 TERM AND TERMINATION

The Client may terminate this Agreement at any time by providing written notice to Wellington Management. Wellington Management may terminate this Agreement (i) by giving three (3) months' prior written notice to the Client, or (ii) with immediate effect by providing written notice to the Client if so required by an competent regulatory authority or law. The Agreement will continue until terminated by either party in accordance with the terms of this Section 17, or such shorter time period as mutually agreed by the parties. Additionally, the Agreement will automatically terminate upon withdrawal by Client of all assets held in the Account unless otherwise agreed to by the parties. Upon termination, Wellington Management will provide reasonable assistance to Client in transitioning the Account to a successor manager or in liquidating the Account; however, Wellington Management will retain no responsibility or authority over any account assets that cannot be liquidated at the time of termination.

18 CONFIDENTIALITY

Wellington Management and the Client acknowledge and agree that during the term of this Agreement the parties may have access to information that is proprietary or confidential to both parties or their respective affiliates ("Confidential Information"). For the purposes of this Section 18, the party receiving the other party's Confidential Information shall be referred to as the 'receiving party' and the party disclosing such Confidential Information shall be referred to as the 'disclosing party'.

At all times Confidential Information shall be handled at least with the same standard of confidentiality accorded the most sensitive and confidential documents and information of the receiving party, but no less than a commercially reasonable standard of care. The receiving party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the receiving party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the receiving party (collectively, "Representatives") who have a need to know for purposes of this Agreement; and the receiving party shall be responsible to the disclosing party for any breach of this Section by any of the receiving party's Representatives. The receiving party shall promptly notify the disclosing party in writing in the event it becomes aware of any loss or unauthorized disclosure of any Confidential Information by the receiving party or its Representatives. Confidential Information shall not include any information that (i) is or becomes publicly available other than as a result of a breach of this Agreement, (ii) is or becomes available on a non-confidential basis to the receiving party from a source which is not known to the receiving party to be subject to a duty of confidentiality with respect to such information, (iii) was legally in the receiving party's possession prior to disclosure by the disclosing party without any obligation of confidentiality, (iv) is developed by or for the receiving party independently of the disclosing party's Confidential Information; or (v) is expressly approved for release by written authorization of the disclosing party.

In the event that the receiving party is requested or required by legal or regulatory authority, law or legal process (including subpoenas) (such request or requirement, a "Demand") to disclose any Confidential Information, the receiving party shall promptly notify the disclosing party of such Demand as reasonable under the circumstances, and only to the extent permitted by law, . In the event that a protective order or other remedy is not obtained, the receiving party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The receiving party will provide reasonable cooperation to the disclosing party and its legal counsel with respect to any Demand. Any expenses incurred by the receiving party in complying with this section shall be at the sole cost of the disclosing party.

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In addition, the Client acknowledges that Wellington Management may disclose information relating to its investment activities in the normal course of business, including information relating to the Account, provided that no information identifying the Client may be shared.

The Client agrees not to make use of the investment decisions or recommendations of Wellington Management, other than with respect to the Account, without the prior written consent of Wellington Management. In addition, each party shall use its best efforts to ensure that any of its agents or affiliates who may gain access to Confidential Information shall be made aware of its proprietary nature and shall likewise treat it as confidential.

Upon either party's written request each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The terms of this Section shall survive the expiration or termination of this Agreement, and the disclosing party shall be entitled to seek injunctive relief for any violation of this Section.

19 USE OF NAME AND LOGO

Wellington Management shall provide to the Client, upon reasonable request, information relating to Wellington Management and its services to the Account for inclusion in any promotional or disclosure materials relating to the Account. Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from the such party's unauthorized use of the other party's name and logo in marketing materials.

20 FORCE MAJEURE

No party to this Agreement will be liable for any failure or delay in performing any of its obligations under or pursuant to the Agreement, and any such failure or delay in performing its obligations will not constitute a breach of the Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control. Any such non-performing party will be entitled to a reasonable extension of the time for performing such obligations. Events outside a party's reasonable control include any event or circumstance that the party is unable to avoid using reasonable skill and care.

21 CONSTRUCTION OF AGREEMENT

The Agreement will be construed and the rights and obligations of the parties under the Agreement enforced in accordance with the laws of the State of Delaware (without regard to its conflict of laws provisions and interpretations) to the extent not pre-empted by applicable federal laws of the United States. The parties agree that the courts of the State of Delaware will have non-exclusive jurisdiction over the parties regarding any dispute arising under this Agreement.

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22 REPORTS AND NOTICE

Any notice to be given pursuant to the Agreement will be deemed to have been duly given or made as of the date delivered or transmitted, and will be effective upon receipt, if delivered personally, mailed by registered or certified mail (postage prepaid, return receipt requested) to the following addresses, or sent by electronic transmission to the fax number specified below:

To Wellington Management at:

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

To the Client at: Accelerant National Insurance Company

Accelerant National Insurance Company

1209 Orange Street

Wilmington, Delaware 19801

Attention: [\*\*\*]

With a copy to: [\*\*\*]

With a copy to (which shall not constitute notice): [\*\*\*]

The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by Wellington Management under this Agreement, or pursuant to applicable law, rule or regulation, including delivery of Part 2 of Wellington Management's Form ADV and any updates thereto, and Client represents that it has the means to, and will access, such disclosures in electronic format. Wellington Management shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to Wellington Management.

23 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement. which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

24 AMENDMENTS

The Agreement may be amended only by means of a written document signed by a duly authorized representative of each party.

25 COUNTERPARTS

The Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.

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26 ELECTRONIC SIGNATURES

The parties agree that this Agreement and any documents related hereto may be electronically signed. The parties agree that any electronic signatures appearing on this Agreement and any related documents are the same as handwritten signatures for the purposes of validity, enforceability and admissibility.

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| | |
|:---|:---|
| Signatures | Signatures |
| Accelerant National Insurance Company | Accelerant National Insurance Company |
| By: | /s/ Christopher Reid |
| Name: | Christopher Reid |
| Title: | US CFO |
| Agreed and Accepted: | Agreed and Accepted: |
| Wellington Management Company LLP | Wellington Management Company LLP |
| By: | /s/ Charles Mulhern |
| Name: | Charles Mulhern |
| Title: | Senior Managing Director |

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ATTACHMENT A

INVESTMENT OBJECTIVES AND GUIDELINES

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ATTACHMENT B

FEE SCHEDULE

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ATTACHMENT C

MASTER AGREEMENTS REPRESENTATIONS

## Exhibit 10.36

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.36** 

***EXECUTION VERSION***

**Investment Management Agreement (UK)** 

This AGREEMENT dated as of the 2<sup>nd</sup> October 2023, is entered into by and between Accelerant Insurance Europe SA/NV UK Branch (the "Client"), a United Kingdom Branch (UK Branch Registration Number: FC040633) of Accelerant Insurance Europe SA. a Societe Anonyme incorporated under the laws of Belgium (Belgian Company Registration Number: 0758.632.842), having its registered office at 1 Tollgate Business Park, Colchester, Tollgate West. CO3 8AB, and Wellington Management International Limited ("WMIL"), a limited liability company organised under the laws of England, having its registered office at [\*\*\*].

1 APPOINTMENT

The Client hereby appoints WMIL as investment manager to manage, supervise and direct the investment and reinvestment of the assets in the Client's investment accounts (collectively, the "**Account**") under the terms and conditions set out in this Agreement. The Account will be maintained with a custodian or custodians that may be designated as such by the Client to WMIL in writing (the "**Custodian**"). By execution of this Agreement. WMIL accepts such appointment as investment manager and agrees to manage, supervise and direct the investment and reinvestment of such assets pursuant to the provisions of this Agreement.

WMIL's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Custodian and WMIL have reconciled to WMIL's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and WMIL's portfolio trading systems (the "**Effective Date**").

2 DISCRETIONARY AUTHORITY- INVESTMENTS

WMIL, acting as agent of the Client. shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement in pursuit of the Client's investment objective, subject to and in accordance with the Client's Investment Guidelines attached as Attachment A hereto, as the same may be amended by the mutual agreement of the parties from time to time (the "**Investment Guidelines**"), and any instructions, whether written or oral, from any officer or employee of the Client listed in Attachment B hereto, as such list may be modified at any time in the Client's sole discretion by notice to WMIL ("**Instructions**"). WMIL will keep the objectives and restrictions stated in Attachment A under review and may, from time to time, and in its sole discretion, suggest to the Client such amendments as, in WMIL's opinion, are appropriate. Subject to the terms of this Agreement. WMIL shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, subscription, conversion or other transactions in any and all stocks, bonds, other securities, cash or currencies, and other Account assets, including shares of a registered investment company for which WMIL or an affiliate of WMIL may act as investment adviser and, upon proper authorisation by the Client. interests in a collective trust maintained by a bank or trust company, including one maintained by an affiliate of WMIL. At no time shall WMIL be entitled to obtain ownership or possession of the Client's assets held in the Account.

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Upon prior notice to the Client, WMIL may engage its affiliate, Wellington Management Company LLP ("**Wellington Management US**") (and Wellington Management US may engage any of its affiliates), or any of its other affiliates to assist it with providing its services under this Agreement, provided that no additional fees will be charged to the Client. WMIL's engagement of such affiliates shall not relieve WMIL of its obligations under the Agreement. and WMIL shall remain fully responsible for the performance of each such affiliate and for its compliance with all of the terms and conditions of this Agreement as if they were WMIL's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WMIL's affiliates. For the avoidance of doubt, WMIL shall require all such affiliates to be bound (in writing or otherwise) by the confidentiality provisions of this Agreement.

WMIL shall provide reasonable cooperation to the Client's regulators in the course of their lawful supervisory activity (and shall procure the cooperation of sub-delegates for these purposes)

3 DISCRETIONARY AUTHORITY- BROKER SELECTION, TRADING AND CLEARING

Subject to the Investment Guidelines, any Instructions and any other provisions of this Agreement, WMIL shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("**Brokers**") that WMIL may select.

The Client authorises WMIL as its agent to enter into, supplement. amend and/or restate such documentation as WMIL considers appropriate for the purposes of establishing such accounts and executing such transactions. Such documentation may include, without limitation: master agreements for the trading of over-the-counter derivatives, clearing agreements (including addenda to existing master agreements), futures and options agreements, margin and collateral documentation (either through title transfer collateral arrangements or security collateral arrangements (which may in include a right of re-use of collateral)) and terms of business, in each case with such Brokers that WMIL considers appropriate and on terms generally accepted as market-standard. The Client acknowledges and agrees that such documentation may also grant the relevant Broker (and its affiliates or agents) a number of rights including, without limitation, a first priority security interest in, lien over or pledge over some or all of the assets held with such Broker. The authority contained in this paragraph is subject to the Investment Guidelines (including any counterparty restrictions), any Instructions and the terms of this Agreement.

WMIL will, when entering into clearing arrangements on behalf of the Client. have the discretion to select whichever clearing house and account structure as it deems appropriate for the clearing of the Client's trades.

Certain Brokers from time to time may furnish to WMIL or its affiliates statistical and investment research or execution services. WMIL's broker selection shall be conducted in accordance with its Policies and Procedures on Order Execution, as may be amended from time to time.

The Client acknowledges Brokers may request information about the Client from WMIL in connection with the Brokers' anti-money laundering or client identification obligations. WMIL is hereby authorised to furnish such information to such Broker based on information provided to WMIL by the Client. In certain circumstances, WMIL may request the Client to enter into trading or other agreements directly with a Broker, which requests the Client may accept or reject in its sole discretion.

WMIL will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care (as defined in Section 16 below) in the selection, use and monitoring of Brokers. Subject thereto, neither WMIL nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client.

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WMIL shall take all sufficient steps to obtain the best possible result when executing orders on behalf of the Client and when placing orders relating to investments on behalf of the Client with Brokers for execution by those Brokers (except to the extent that it is following a specific instruction from the Client). Further information on the steps that WMIL takes to achieve best execution is set out in Wellington Management's Policies and Procedures on Order Execution and its Policies and Procedures on Allocation of Trades (as they may be amended from time to time).

The Client acknowledges and confirms that WMIL has separately provided to it a copy of Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on Allocation of Trades and the Client hereby consents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Wellington Management's Policies and Procedures on Order Execution and Policies and Procedures on
Allocation of Trades (as they may be amended from to time, subject to the Client receiving written notice of any material amendments); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the execution outside of a trading venue (which means a Regulated Market, Multilateral Trading Facility and an
Organised Trading Facility (as each of those terms is respectively defined in the UK Financial Conduct Authority's ()"**FCA**") handbook of rules and guidance, as amended and updated from time to time (such rules being the
" **FCA Rules** ")) of the Client's orders.

Allowing orders to be executed outside a Regulated Market, Multilateral Trading Facility and Organised Trading Facility will enable WMIL to access a wider range of execution venues. There are other consequences of executing outside a trading venue, including counterparty risk. The Client may request additional information from WMIL about the consequences of transactions being executed outside a trading venue.

Unless otherwise instructed by the Client in writing, WMIL will effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian. Where permitted in the Investment Guidelines, and subject to any restrictions therein, WMIL may effect transactions in derivatives (both exchange-traded and over the counter) and may settle or close out such transactions without further reference to the Client. WMIL may debit the Account with any sums required to pay or supplement any deposit or margin in support of any such transaction.

WMIL may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by WMIL on behalf of WMIL's other clients. Such aggregated orders (including associated expenses) will be allocated by WMIL in accordance with Wellington Management's Policies and Procedures on Allocation of Trades (as may be amended from time to time, subject to the Client receiving written notice of any material amendments). The Client acknowledges that each aggregation may operate to the advantage or disadvantage of the Client.

In addition, subject to applicable laws, rules and regulation, WMIL may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of WMIL as set forth in WMIL's Policy and Procedures on Order Execution, as may be amended from time to time.

To the extent that WMIL places a limit order for the sale or purchase of equities on behalf of the Client with a Broker for execution by that Broker, the Client hereby expressly instructs WMIL not to make public (and to use reasonable endeavours to procure that the Broker does not make public) the details of that limit order unless WMIL considers, in its absolute discretion, that it is appropriate for such details to be made public (which shall, without limitation, be deemed to include where the relevant Broker makes the relevant details of that limit order public in circumstances where WMIL has given the Broker the discretion to do so).

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| | |
|:---|:---|
| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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WMIL makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that. to its knowledge, the Investment Guidelines are consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

WMIL will establish effective measures to ensure that its investment decisions and procedures as specified under this Agreement comply with the Investment Guidelines and Instructions. In the event of a discrepancy between an Instruction and the Investment Guidelines, the Instruction shall prevail.

The Investment Guidelines shall not be breached as a result of any events or circumstances outside the reasonable control of WMIL including, but not limited to, (i) changes in the price or value of the assets in the Account brought about solely through movements in the market (ii) contributions to or withdrawals from the Account (iii) a change in the nature of any investment (whether through change in business activity or credit rating), or (iv) a force majeure event. In the event that the Investment Guidelines are breached or would have been breached but for the provisions immediately preceding, WMIL shall notify the Client of the relevant circumstances as soon as reasonably practicable and shall address such breach of the Investment Guidelines as instructed by Client as soon as reasonably practicable. If WMIL acts in accordance with this section, the non-compliance for reasons set out above in this paragraph will not constitute a breach of the Agreement nor will it give rise to any right or remedy in the Client.

Subject to any provision in the Investment Guidelines or any Instructions to the contrary, asset-based restrictions (e.g., exposure and concentration limits) in the Investment Guidelines shall be applied by WMIL at the time of acquisition based on the market value of the investments versus the total net assets of the Account. Ambiguities in the Investment Guidelines may be interpreted by WMIL in good faith and consistent with its fiduciary duty to the Client; provided, however, that WMIL shall notify the Client prior to taking, or committing or failing to take, any action on the basis of such interpretation and/or deviating from the Investment Guidelines under unusual circumstances, such as extreme market conditions and/or large cash flows into or out of the Account. In case of such interpretations or deviations WMIL shall give the Client the opportunity to provide Instructions clarifying such ambiguities and/or to authorise any deviation prior to WMIL taking action, in all cases, WMIL shall manage the Account in the best interests of the Client.

WMIL may, at its expense, utilise unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions. Additionally Environmental, Social, and Governance ("ESG") data may vary in quality, availability, estimations and methodologies being used.

The Client may give or modify Instructions to WMIL at any time and WMIL shall have a reasonable period to comply with such Instructions. The Client covenants that any Instructions shall be, to the Client's knowledge, consistent with the provisions of law, regulatory policies and organisational documents applicable to the Client.

The Client acknowledges and confirms that WMIL has separately provided it with risk warnings related to the management of the Account.

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5 TAX MATTERS

Subject to the provisions of this clause, WMIL will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by WMIL on behalf of the Account.

Neither WMIL nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

WMIL shall conduct its activities under this agreement in such a way that will not cause the Client to: (i) have a place of effective management outside its country of tax residence; or (ii) have a permanent establishment outside its country of tax residence, solely as a result of the provision of such services. In particular, WMIL shall, where relevant, use reasonable efforts to operate in such a way that. with respect to any services provided from the United Kingdom, the conditions of the UK investment management exemption (as provided for in Chapter 2 of Part 24 of the Corporation Tax Act 2010 and Chapter 2B Part 14 Income Tax Act 2007) are satisfied.

WMIL shall not appoint a Broker which WMIL is reasonably aware would fail to satisfy the conditions of the UK independent broker exemption (as provided for in section 1145 Corporation Tax Act 2010 and section 835L Income Tax Act 2007).

6 APPRAISAL OF ACCOUNT, VALUATION AND DISCLOSURES

WMIL will provide the Client with a monthly report by email which sets out information on the activities undertaken by WMIL and of the performance of the Account during the previous monthly reporting period as required under the FCA Rules.

WMIL endeavours to value all securities at fair market value as determined by WMIL in good faith and in accordance with Wellington Management's Pricing Policies and Procedures, as may be amended from time to time. WMIL is not the official pricing agent with respect to the Account. but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

In addition, at the request of Client. WMIL will promptly provide to the Client all pricing and other information needed by the Client for audit purposes and any other reports reasonably requested by the Client. Furthermore, upon the reasonable request of the Client, WMIL will (i) make its personnel available to participate in conference calls and meetings with the Client on issues that may arise in connection with the subject matter of this Agreement and/or market trends or conditions generally, which meetings may, upon the Client's request and subject to the reasonable discretion of WMIL, include representatives of WMIL's affiliated companies; and (ii) make its personnel available for conference calls and meetings with the Client's Board of Directors and Committees thereof.

7 REGULATORY REPORTING

As part of its regulatory obligations under the FCA Rules, WIML is required to make certain reports to the FCA regarding its trading activities to the FCA. including for example, transaction reports. In addition, WMIL may need to undertake reporting of derivative trades to trade repositories on behalf of the Client. For this purpose WMIL requires certain information from the Client. If the below information is not provided on the terms below WMIL may not be able to execute or place relevant trades under this Agreement or carry out reporting to trade repositories on behalf of the Client.

The Client hereby agrees to provide to WMIL the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement. the Client's up to date legal entity identification code
(" **LEI Code** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Client's new or updated LEI Code promptly, in the event that the LEI Code provided under sub-paragraph (A) above changes or is updated.

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In addition to the obligations set out above in this Section, if the Client is also a discretionary investment manager, the Client agrees to provide to WMIL the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) prior to the commencement of this Agreement, the LEI Code for any underlying funds or manager account holders
to which trades arising from this Agreement are allocated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the relevant underlying fund's or managed account holder's new or updated LEI Code, in the event that
an LEI code provided under sub-paragraph (A) above changes or is updated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) promptly on request by WMIL, in relation to sales of UK listed equities and sovereign debt carried out by WMIL,
details of whether any underlying funds or managed accounts to which trades arising from this Agreement are allocated were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) holding a short position or a long position in the relevant EEA listed equity or sovereign debt at the time of
the sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the size of that short position or long position at the time of the sale.

For the purpose of fulfilling its regulatory reporting obligations under this Section and its regulatory reporting obligations to the market under the FCA Rules, WMIL is required to disclose in those reports specified information about the Client and the relevant transactions. The Client acknowledges and consents to such disclosure of information by WMIL as required for regulatory purposes and that, to the extent that the confidentiality provisions in this Agreement are inconsistent with WMIL's regulatory disclosure obligations, such obligations shall be modified accordingly in relation to such disclosures.

8 COMMODITY POSITION LIMITS

The Client hereby agrees to notify WMIL of any limits it wishes to impose on positions that may be held at any time by or on behalf of the Account in specified commodity derivatives and economically equivalent OTC contracts which are subject to Article 57 of the second Markets in Financial Instruments Directive ("**Relevant Commodity Contracts**"), and the duration of such imposed limits.

In the absence of, or expiry of, any specific notification given by the Client, WMIL shall be entitled to exercise its discretion over the Account on the basis that the positions in Relevant Commodity Contracts held by or on behalf of the Account at any time are permitted to reach the maximum limits published from time to time by the relevant EU regulator responsible for setting the position limits for that particular commodity derivative.

If the limits the Client wishes to impose would violate the limits set by the FCA, an agreement with the Client has to be reached which complies with such limits.

9 RECORDING OF TELEPHONE CALLS AND ELECTRONIC COMMUNICATIONS

WMIL hereby notifies the Client that it will record telephone conversations or electronic communications (in accordance with FCA Rules) when it receives and transmits orders or executes orders on behalf of the Client; or when it deals onown account. The Client will use reasonable endeavours to notify its personnel that conversations with WMIL may be recorded.

WMIL will keep records for a period of five years from when the communication was recorded (or up to seven years ifthe FCA requires WMIL to do so). WMIL shall provide the Client with such records upon request.

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10 MANAGEMENT FEE

The Client will pay to WMIL for its services hereunder a management fee as set forth in Attachment C (the "**Management Fee**").

All amounts payable under or pursuant to this Agreement are exclusive of any value added tax chargeable under the Value Added Tax Act 1994 and/or any similar replacement or additional tax and/or any equivalent tax in any jurisdiction ("**VAT**"), and any other taxes, charges or fees. The Client shall pay amounts in respect of VAT on receipt of a valid VAT invoice.

The Client will be liable for any out of pocket costs (plus any irrecoverable VAT) properly incurred by WMIL under or pursuant to this Agreement, including reasonable commissions, transfer and registration fees, taxes, stamp duties, transaction taxes and other fiscal liabilities.

The Client shall make all payments under this Agreement without withholding or deduction for, or on account of, any tax unless required by law.

The Client confirms that the services provided hereunder are not being supplied to a UK-based authorised unit trust/open-ended investment company/authorised contractual fund or to any collective undertaking in securities which is open for retail investment in the UK. The Client will inform WMIL as soon as reasonably practicable if it is no longer able to give this confirmation.

If WMIL has charged an amount in respect of any VAT on supplies to the Client, and the appropriate tax authority subsequently publishes guidance which, in WMIL's reasonable opinion, indicates that such supplies were not wholly chargeable to VAT, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if WMIL has not accounted to the appropriate tax authority for such amount. WMIL shall, as soon as reasonably
practicable, repay to the Client such amount as has been incorrectly charged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if WMIL has accounted to the appropriate tax authority for such amount. WMIL shall, as soon as reasonably
practicable and at the Client's expense, take reasonable steps to obtain a refund (plus any interest arising) from the appropriate tax authority of the amount overpaid. If, when and to the extent that it receives such a refund, WMIL shall, as
soon as reasonably practicable, repay to the Client an amount equal to such refund received.

11 COSTS AND CHARGES

In addition to any costs and charges information contained in the monthly reporting under Section 6, WMIL will also provide information by email on the costs and charges incurred in connection with the investment management services that it provides under this Agreement on an annual basis. For these purposes, the reporting period shall be based on calendar years.

12 PROCEDURES

All transactions will be consummated by payment to, or delivery by, the Custodian of all cash and/or securities due to or from the Account according to local market settlement conventions. It is understood and agreed that WMIL is not authorised by the FCA to receive or hold money from or on behalf of its clients in connection with the conduct of its Regulated Activities (as defined in the Financial Services and Markets Act (Regulated Activities) Order 2001) and shall not act as custodian for the Account, and no cash or securities due to or held for the Account shall be paid or delivered to WMIL, except in payment of the Management Fee. Instructions by WMIL to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of WMIL, orally and confirmed by such transmission method as soon as practicable thereafter.

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WMIL shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian, and to the Client upon the Client's request, copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide WMIL with such periodic reports concerning the status of the Account as WMIL may reasonably request.

If any Broker or counterparty fails to deliver any necessary documents or to complete any transaction, WMIL shall take all reasonable steps on behalf of the Client to rectify such failure.

Neither WMIL nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, WMIL does not assume responsibility for the accuracy of information furnished to it by the Client. Custodian, or by any person on whom it reasonably relies.

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|:---|:---|
| 13 | PROXIES  |

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The Client instructs WMIL to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorises WMIL to instruct the Custodian to forward promptly to WMIL only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that WMIL will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

14 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

WMIL will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other legal proceeding related to securities currently or previously held in the Account ('Legal Proceedings'), WMIL shall provide factual information in its possession as the Client may reasonably request. The Client shall pay or reimburse costs actually and reasonably incurred by WMIL or its affiliates in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of WMIL's or its affiliates· roles and responsibilities under this Agreement.

15 SERVICE TO OTHER CLIENTS; POTENTIAL CONFLICTS OF INTEREST

WMIL has in place a Conflicts of Interest Policy which specifies the procedures that it follows and the measures that it has adopted to identify, prevent or manage conflicts in a way that ensures fair treatment for the Client.

The Client acknowledges and confirms that WMIL has separately provided to it a copy of WMIL's Conflicts of Interest Policy. Further information on WMIL's Conflicts of Interest Policy is available on request. The Conflict of Interest Policy may be updated from time to time and the latest version is available on request.

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It is understood that WMIL and its affiliates provide investment management and advisory services for other clients. including other separate accounts, registered investment companies and other pooled investment vehicles. It is further understood that WMIL or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. If a purchase or sale of securities or other assets for multiple client accounts including the Account is deemed by WMIL to be advisable and is considered at or about the same time, and WMIL is unable to purchase or sell the amount of securities or other assets in the aggregate amount then contemplated by WMIL on behalf of such client accounts, the transactions in such securities or other assets will be allocated among the client accounts contemporaneously purchasing or selling as deemed equitable by WMIL.

WMIL or any of its affiliates may effect transactions in which it has, directly or indirectly, a material interest or relationship of any description with another party which may involve a potential conflict with WMIL's duty to the Client. WMIL will ensure that such transactions are (i) effected on terms which are not less favourable to the Client than if the potential conflict had not existed and (ii) in accordance with the Standard of Care.

In accordance with FCA Rules, but subject in each case to the Standard of Care, WMIL notifies the Client that such potential conflicting interests or duties may arise because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) WMIL or its affiliates undertake Regulated Activities for other clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a director or employee of WMIL, or of its affiliates, is a director of, holds or deals in securities of, or is
otherwise interested in any company whose securities are held or dealt in on behalf of the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a transaction is effected in securities in respect of which WMIL or its affiliates may benefit from a
commission, fee, mark-up or mark-down payable otherwise than by the Client, and/or WMIL or its affiliates may be remunerated by the counterparty to any such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) WMIL may act as agent for the Client in relation to transactions in which it is also acting as agent for the
account of other clients and/or affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon proper authorisation by the Client. a transaction is effected in units or shares of a collective trust or
other commingled pool vehicle or a company of which WMIL or any of its affiliates is the manager, operator or adviser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a transaction is effected in securities in respect of which WMIL or its affiliates, or a director or employee
of WMIL or its affiliates, is contemporaneously trading or has traded on its own account or has either a long or short position.

WMIL will act as the agent of the Client. who will therefore be bound by its actions under this Agreement. Nevertheless, none of the services to be provided hereunder nor any other matter shall give rise to any fiduciary or equitable duties which would prevent or hinder WMIL, or its affiliates, in transactions with or for the Client. from acting as both market -maker and broker, principal or agent. dealing with other affiliates and other clients, and generally effecting transactions as provided above, to which the Client consents accordingly, subject in each case to the Standard of Care.

16 STANDARD OF CARE; LIABILITY

WMIL shall discharge its duties and exercise its discretion under this Agreement with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investment professional acting in a similar capacity and familiar with such matters would use, in accordance with its authorisation and regulation by the FCA and otherwise in accordance with the FCA Rules, the Financial Services and Markets Act 2000 (the "**FSMA**") and other applicable law (the "**Standard of Care**"). Unless WMIL has breached the Standard of Care, WMIL shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under this Agreement (including acts or omissions made in response to Instructions), except to the extent such act or omission constitutes a material breach of this Agreement, willful misfeasance, bad faith or gross negligence on the part of WMIL, any of its affiliates or delegates.

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In no event shall WMIL, any of its affiliates or delegates be liable hereunder to the Client or to any other person or entity for any indirect. incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

Except insofar as the same may result from the negligence, wilful default or fraud of WMIL, its affiliates or its delegates or its or their employees, the Client agrees to indemnify WMIL against all costs, losses, claims and expenses which may be incurred by it or made against it either (i) as a result of any party claiming to be entitled to investments which form part of the Account at the time when WMIL first assumes management of the Account; or (ii) in consequence of any breach by the Client of this Agreement; or (iii) arising out of any action properly taken by WMIL in accordance with this Agreement.

17 REPRESENTATIONS AND UNDERTAKINGS BY WMIL

By execution of this Agreement. WMIL represents that: (i) it is duly authorised by the FCA to conduct investment management business in the UK and shall remain so authorised at all times during the terms of this Agreement, and, as an investment manager authorised and regulated by the FCA, it acknowledges its fiduciary status with respect to the Account; (ii) the terms hereof do not violate any law or other obligation by which WMIL is bound, whether arising by contract. operation of law or otherwise; (iii) as to WMIL, this Agreement has been duly authorised by appropriate action and when so executed and delivered will be binding upon WMIL in accordance with its terms; (iv) as at the date of this Agreement. there is no litigation or governmental proceeding currently pending against it or involving its investment management business which would materially and adversely affect its ability to carry out the services hereunder; (v) WMIL will provide the Client with any other relevant information in connection with the services being provided hereunder as the Client may reasonably requested from time to time; and (vi) all representations made by WMIL under this Agreement are true and accurate in all material respects. WMIL covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate in all material respects and that the Client may rely on the accuracy of such representations.

WMIL shall undertake to: (i) promptly advise the Client in the event of any change in control of WMIL or a change in the lead portfolio manager involved in managing the Account.; and (ii) maintain appropriate liability and professional indemnity insurance and keep such insurance in place throughout the continuance of this Agreement and, if requested, shall provide the Client with such details of its insurance as may reasonably be requested from time to time.

WMIL shall undertake to maintain business contingency planning activity in accordance with its obligations and prevailing best practice. Moreover, WMIL undertakes to reasonably cooperate with the Client in the Client's testing of its own business contingency planning activity.

18 REPRESENTATIONS BY THE CLIENT

By execution of this Agreement. the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) as to the Client. this Agreement is duly executed by individuals with the requisite authority to bind the Client. has been duly authorised by appropriate action and when so executed and delivered will be binding upon the Client in accordance with its terms; (iii) the Account is free of all liens and charges, and undertakes that no liens or charges will arise from the acts or omissions of the Client; (iv) during the term of this Agreement, the Client undertakes not to deal, except through WMIL, with any of the assets of the Account and not to authorise anyone else to deal in any of them; (v) the Client will provide WMIL with any other relevant information reasonably requested from time to time and (vi) all representations made by the Client under this Agreement are true and accurate in all material respects. The Client covenants that any future representations made to WMIL under or relating to this Agreement shall be true and accurate in all material respects and that WMIL may rely on the accuracy of such representations in the performance of its duties hereunder.

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19 BENCHMARK REGULATIONS

The Client acknowledges that Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the "**Benchmark Regulation**" **or** "**BMR**") may apply to the Client in respect of the Account.

Where a Client is using a benchmark (as the term 'use' is defined in Article 3(7) of the Benchmark Regulations), the Client acknowledges and agrees that:

(i) it can only use a benchmark (as that term is defined in Article 3(3) of the BMR) provided by an appropriately authorised administrator (as that term is defined in Article 3(6) of the BMR); and

(ii) it is required to produce and maintain robust written plans setting out the actions that it would take in the event that a benchmark materially changes or ceases to be provided (in accordance with Article 28 of the BMR). WMIL agrees to provide the Client with reasonable assistance in order to assist the Client to produce, maintain and comply with those plans.

20 ANTI-BRIBERY AND CORRUPTION

Each party agrees that: (a) it will comply with all applicable laws, statutes, regulations, and codes relating to anti -bribery and anti-corruption applicable in the jurisdiction(s) in which it operates, including but not limited to the US Foreign Corrupt Practices Act 1977 and the UK Bribery Act 2010, each as may be amended from time to time ("**Anti-Bribery Requirements**")**;**(b) it has not directly or indirectly done or omitted to do, and will not directly or indirectly do or omit to do, any act which would be or could be construed as an unlawful act under the Anti-Bribery Requirements; (c) it shall have and maintain in place its own policies and procedures to ensure compliance with the Anti-Bribery Requirements and will enforce them where appropriate; and (d) it will give such assistance to the other party as may be reasonably requested to ensure compliance with the other party's internal policies and procedures in respect of anti-bribery.

WMIL undertakes that during the term of this Agreement it shall: (a) not engage in any activity, practice or conduct which would constitute either: (i) a UK tax evasion facilitation offence under section 45(5) of the Criminal Finances Act 2017; or (ii) a foreign tax evasion facilitation offence under section 46(6) of the Criminal Finances Act 2017; and (b) establish, maintain and enforce its own policies and procedures as are both reasonable to prevent the facilitation of tax evasion by another person and to ensure compliance with (a) above.

21 USE OF THIRD PARTY DELEGATES

WMIL may employ reputable third party delegates to perform any administrative or ancillary services, including security and cash reconciliation, portfolio pricing, guideline coding and reconciliation and corporate action processing, required to enable WMIL to perform the services under this Agreement. Upon the Client's written request. WMIL shall identify any such third party delegates to the Client in writing, with such details as the Client may reasonably request. The Client authorises WMIL to provide necessary information about the Client and the Client's investments to such third party delegates to perform such services, provided that any such third party delegates is also bound by confidentiality and use obligations at least as protective as those herein, , and when reasonably requested by the Client. WMIL shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. WMIL will act in good faith, with reasonable skill and care and otherwise in accordance with the Standard of Care in the selection, use and monitoring of delegates, and the Client shall not be responsible for any fees which any agent may charge in connection

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with such services. WMIL will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has delegated any functions to a delegate. WMIL's engagement of such delegates shall not relieve WMIL of its obligations under the Agreement, and WMIL shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were WMIL's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of WMIL's delegates.

For the avoidance of doubt, Brokers and third-party data service providers shall not be considered as delegates under this Section.

22 ASSIGNMENT

Neither party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed.

23 TERM AND TERMINATION

The Client may terminate this Agreement at any time by written notice to WMIL. WMIL may terminate this Agreement (i) by giving three months' written notice to the Client or (ii) may do so with immediate effect by written notice to the Client if so required by any competent regulatory authority.

This Agreement will continue until terminated by either party upon at least 3 months' prior written notice to the other party, or such shorter time period as mutually agreed in writing by the parties.

Unless otherwise agreed between the parties, in circumstances where WMIL terminates this Agreement pursuant tothis section 23, WMIL shall continue to provide the services up until the termination date and shall cooperate with and take such steps as the Client may reasonably require in order to effect the orderly termination of this Agreement.

24 CONSEQUENCES OF TERMINATION

Termination will be without prejudice to the completion of transactions already initiated which will be completed expeditiously by WMIL.

Termination will not affect accrued rights, indemnities, existing commitments or any contractual provision intended to survive termination and will be without penalty or other additional payment. The Client will pay (i) the Management Fees of WMIL *pro rata* to the date of termination and (ii) any additional expenses necessarily incurred by WMIL in terminating this Agreement and will bear any losses necessarily realised in settling or concluding outstanding obligations.

On termination, WMIL may, without prior notice to the Client, direct the Custodian to retain and/or realise any assets of the Account as may be required to settle transactions already initiated, and to pay, exclusive of any and all indemnification related obligations, any other outstanding liabilities of the Client. If there is a dispute as to the payment of Management Fees, or other costs and fees to WMIL the Client may require the disputed amount to be held in an escrow account pending resolution of the dispute.

25 CONFIDENTIALITY; USE OF NAME

WMIL and the Client acknowledge and agree that any and all information or materials communicated between the parties, including the terms of this Agreement, is confidential information provided that confidential information shall exclude information or material which at the time of its disclosure is, or which thereafter becomes, (in each case otherwise than as a result of any act or default by the recipient), part of the public domain by publication or otherwise ("**Confidential Information**").

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For the purposes of this section, the party receiving the other party's Confidential Information shall be referred to as the "**Receiving Party**", and the party disclosing such Confidential Information shall be referred to as the "**Disclosing Party**". At all times Confidential Information shall be handled with at least the same standard of confidentiality accorded to the most sensitive and confidential documents and information of the Receiving Party, but no less than a commercially reasonable standard of care. The Receiving Party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the Receiving Party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the Receiving Party (collectively, "**Representatives**") who have a need to know for purposes of this Agreement and the Receiving Party shall be responsible to the party disclosing such Confidential Information (the "**Disclosing Party**") for any breach of this Section by any of the Receiving Party's Representatives. The Receiving Party shall promptly notify the Disclosing Party in writing in the event it becomes aware of any loss or unauthorised disclosure of any Confidential Information by the Receiving Party or its Representatives.

Confidential Information shall not include any information that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is or becomes publicly available other than as a result of a breach of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is or becomes available on a non-confidential basis to the Receiving
Party from a source which is not known to the Receiving Party to be subject to a duty of confidentiality with respect to such information,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was legally in the Receiving Party's possession prior to disclosure by the Disclosing Party without any
obligation of confidentiality,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is developed by or for the Receiving Party independently of the Disclosing Party's Confidential
Information; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) is expressly approved for release by written authorization of the disclosing party.

In the event that the Receiving Party is requested or required by a legal or regulatory authority, law or legal process (a "**Demand**") to disclose any Confidential Information, the Receiving Party shall promptly, , notify the Disclosing Party of such Demand as reasonable under the circumstances, and only to the extent permitted by law. In the event a protective order or other remedy is not obtained, the Receiving Party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel, is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The Receiving Party will provide reasonable cooperation to the Disclosing Party and its legal counsel with respect to any Demand. Any expenses incurred by the Receiving Party in complying with this section shall be at the sole cost of the Disclosing Party.

Upon either party's written request , each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The Client agrees that the investment decisions and recommendations made by WMIL under this Agreement will not be used by the Client or its affiliates for any purpose other than with respect to the Account, without the written consent of WMIL.

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Neither party will use the other party's name, logo or make any statements relating to such party or its affiliates in any promotional or disclosure materials unless and until such party has reviewed and approved the materials prior to their first use, which approval will not be unreasonably withheld or delayed. Each party shall indemnify and hold harmless the other party from any losses or costs arising from such party's unauthorized use of the other party's name and logo in marketing materials.

The terms of this Section shall survive the expiration or termination of this Agreement, and the Disclosing Party shall be entitled to seek injunctive relief for any violation of this Section.

26 DATA PROTECTION

In this Section, "personal data" means data that relates to a living individual who can be identified from the data (either by itself or when it is combined with other data).

WMIL may process personal data in connection with this Agreement and the products and services that it providesunder it. For the purposes of the Applicable Data Protection Laws, WMIL is a controller in respect of the processing of this personal data and is responsible for compliance with the Applicable Data Protection Laws in respect of such processing. Notwithstanding any other provision of this Agreement, under no circumstances shall WMIL be deemed to be a processor on behalf of, or a joint controller with, the Client. WMIL explains what personal data it will process, why and how it will process it, who it may share it with, and the rights that an individual has in respect of their personal data at the following location: https://www.wellington.com/en/privacy-notice/. In the remainder of this Section, WMILrefers to this as its "Privacy Notice". Each party is responsible for its own compliance with Applicable Data Protection Laws and, except as explicitly set out in this Agreement, neither party relies on the other with respect to its own compliance with Applicable Data Protection Laws.

The Client undertakes, where it transfers personal data to WMIL, it does so in accordance with the Applicable Data Protection Laws. The Client must ensure that any personal data that it provides to WMIL is accurate and up to date, and that it promptly notifies WMIL if it becomes aware that such personal data is incorrect.

Where the Client provides personal data to WMIL, the Client must first have satisfied the obligations imposed by Applicable Data Protection Laws, including but not limited to the obligation to provide transparency information to affected individuals, and drawn the attention of those individuals to WMIL's Privacy Notice. In addition, the Client shall promptly notify those individuals of any material changes to the Privacy Notice when advised by WMIL.

Where, in connection with this Agreement and the products and services that it provides under it, it becomes necessary for WMIL to transfer personal data to the Client, or its appointed representatives or assigns, in any jurisdiction outside the UK that has not been deemed adequate for the purposes of Article 47 of the UK GDPR, the parties shall use all reasonable efforts to enter into such data transfer arrangements as may be necessary to satisfy the requirements of Applicable Data Protection Laws with respect to that transfer.

In the event that either party becomes aware of an actual or suspected personal data breach affecting personal data disclosed under, or in connection with, this Agreement, that party shall notify the other party without undue delay, and the parties shall use all reasonable endeavours to assist one another in satisfying the requirements of Applicable Data Protection Laws with respect to any such personal data breach.

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Under this Section "Applicable Data Protection Laws" means any relevant legislation in force from time to time protecting the fundamental rights and freedoms of individuals and, in particular, their right to privacy with respect tothe processing of personal data applicable to a data controller in the country or territory in which the controller and/or processor is established, including, but not limited to, such laws as the Data Protection Act 2018 EU Directive 95/46/EC and EU Regulation (EU) 2016/679 (GDPR) and the retained EU version of GDPR (UK GDPR)

27 UK FREEDOM OF INFORMATION ACT

In relation to the UK Freedom of Information Act (the "**FOI**"), WMIL regards all information hereby provided by WMIL regarding any portfolio management activities conducted by WMIL on the Client's behalf ("**Information**"), as both confidential and commercially sensitive. Should this information be released into the public domain it could have an impact upon the Client's portfolio and would impact WMIL's commercial interests as it would be of benefit to WMIL's competitors and detrimental to WMIL's current and future business. WMIL therefore requests that the Client treat the information contained in this Agreement and all Information provided to the Client as both confidential andcommercially sensitive.

The Client shall therefore promptly notify WMIL in the event that it:

(a) receives a request for information under section 8 of the FOI which covers information relating to the Agreement, to WMIL or the services provided by WMIL (a "**Relevant Request**");

(b) responds to a Relevant Request;

(c) receives a complaint in relation to the handling of a Relevant Request;

(d) becomes aware that an application has been made to the Information Commissioner for a decision in relation to a Relevant Request;

(e) becomes aware that the Information Commissioner has served any notice on the Client under part IV of the FOI in relation to a Relevant Request;

(f) becomes aware that an appeal has been made to the Information Tribunal or the Court in relation to a Relevant Request; or

(g) becomes aware that confidential information relating to WMIL or the services provided under the Agreement has been or is about to be disclosed to a third party without WMIL's express written permission;

and in each case shall provide WMIL with such details as may reasonably be requested by WMIL.

Responding to a Relevant Request

Upon receipt of a Relevant Request, the Client shall promptly notify WMIL of the nature of the Relevant Request and give WMIL a reasonable opportunity to comment on whether an exemption from the requirement to disclose may be applicable so that the Client is able to take due regard of any such comments before making its response. WMIL agrees to respond in a timely manner.

28 REGULATION

WMIL is authorised and regulated by the FCA and the Securities and Exchange Commission (the "**SEC**") and nothing in this Agreement shall exclude, waive or limit any liability of WMIL to the Client or any right of any person arising underthe FSMA, any rules or regulations made under it, or the FCA Rules.

The FCA's address is 12 Endeavour Square, London E20 lJN.

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Any words or phrases used in this Agreement which are defined in the FCA Rules shall have the same meanings in this Agreement, notwithstanding anything to the contrary in this Agreement.

29 FORCE MAJEURE

Neither party shall be liable for any failure or delay in performing any of its obligations under or pursuant to this Agreement, and any such failure or delay in performing its obligations will not constitute a breach of this Agreement if such failure or delay is due to force majeure or other events beyond the control of the party which significantly affects the party's obligations and performance under this Agreement and which it could not have foreseen and avoided using reasonable efforts, including without limitation: acts of God; currency restrictions, devaluations and fluctuations; any act of terrorism; significant changes to the market conditions affecting the execution or settlement of transactions regarding the Account or the value of Account; failure or breakdown in communications not reasonably within the party's control; and the failure of any relevant exchange or clearing house and incorrect data feed from unaffiliated third -party data service providers including but not limited to, rating agencies, Bloomberg, WM Oaten.

30 CONSTRUCTION OF AGREEMENT

This Agreement will be construed and the rights and obligations of the parties under this Agreement enforced in accordance with the laws of England and Wales without consideration of its conflicts of laws rules. The parties agree that the English courts will have exclusive jurisdiction over the parties regarding any dispute arising under this Agreement. for which purpose the parties hereto agree to submit to such jurisdiction. Each party hereto hereby expressly and irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter may have to the laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum. To the extent that any party hereto has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, such party hereby irrevocably waives such immunity in respect of its obligations under this Agreement.

31 REPORTS AND NOTICE

Any notice required or permitted to be given by one party to the other party pursuant to this Agreement will be in writing and will be delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested), express mail or other overnight or express courier service, facsimile transmission or electronic mail transmission to the applicable address for such other party specified below:

To WMIL at:

Wellington Management International Limited

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

Email: [\*\*\*]

With a copy to:

Wellington Management Company **LLP**

[\*\*\*]

Attention: [\*\*\*]

Fax No.: [\*\*\*]

Email: [\*\*\*]

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To the Client at:

Accelerant Insurance Europe SA/NV UK Branch, a United Kingdom Branch (UK Branch Registration Number:

FC040633) of Accelerant Insurance Europe SA

1 Tollgate Business Park, Colchester, Tollgate West, CO3 8AB

Attention: [\*\*\*]

With a copy to:

[\*\*\*]

[\*\*\*]

Any notice given in accordance with this Section will be deemed to have been given and received on the date it is delivered or, in the case of any notice by facsimile or electronic mail transmission, the date that receipt of such transmission is confirmed. A party may change the names or addresses where notice is to be given to it by providing notice to the other party of such change in accordance with this Section. The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by WMIL under this Agreement, or pursuant to applicable law, rule or regulation, and Client represents that it has the means to, and will access, such disclosures in electronic format. WMIL shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to WMIL.

32 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement, which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

33 AMENDMENTS

This Agreement may not be amended without the prior written agreement signed by a duly authorised representativeof each party, save that WMIL may amend this Agreement without the prior written agreement of the Client in order to comply with, or to make this Agreement consistent with, any legal or regulatory requirements or changes to which WMIL may be subject, by providing written notice to the Client of such amendment.

34 THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms; provided, however, Wellington Management US shall be an express third-party beneficiary hereof, with the right to enforce the terms of this Agreement on behalf of itself.

35 COUNTERPARTS

This Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument. Such executed counterparts may be delivered by one party to the other by facsimile or other electronic transmission, and such counterparts shall be valid for all purposes. This Agreement shall be valid, binding and enforceable against a party hereto only when executed by an

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authorised individual on behalf of that party by means of (i) a DocuSign<sup>®</sup> or other electronic signature, (ii) an original, manual signature, or (iii) a faxed, scanned or photocopied manual signature. Each DocuSign<sup>®</sup> or other electronic, faxed, scanned or photocopied manual signature ("**Electronic Signature**") shall for all purposes have the same validity, legal effect and admissibility in evidence as an original manual signature and the parties hereto hereby waive any objection to the contrary. Each party executing this Agreement with an Electronic Signature hereby warrants that the type of Electronic Signature it has used is valid and enforceable under applicable law, the officer applying the Electronic Signature has the necessary authority to do so and its use has been duly authorised by appropriate action taken by the party.

[*Signature page follows.*]

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For and on behalf of Accelerant Insurance Europe SA/NV UK Branch

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| | |
|:---|:---|
| By: | /s/ Jeff Radke |
| Name: | Jeff Radke |
| Title: | Director |

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Agreed and Accepted:

For and on behalf of Wellington Management International Limited

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| | |
|:---|:---|
| By: | /s/ Andrew Pakulis |
| Name: | Andrew Pakulis |
| Title: | Director |

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ATTACHMENT A

INVESTMENT GUIDELINES

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ATTACHMENT B

CLIENT'S AUTHORISED SIGNATORY LIST

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ATTACHMENT C

FEE SCHEDULE

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ATTACHMENT D

REPORTS; COMMUNICATIONS AND OTHER OPERATIONAL MATTERS

## Exhibit 10.37

[WM CANADA]

**CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [\*\*\*], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**Exhibit 10.37** 

***EXECUTION VERSION***

**Investment Management Agreement** 

This AGREEMENT dated as of the 1st day of December, 2023, is entered into by and between Omega General Insurance Company (the "**Client**"), an insurance company organized under the laws of Canada, and Wellington Management Canada ULC ("**Wellington Management**"), a British Columbia unlimited liability company.

1 APPOINTMENT

The Client hereby appoints Wellington Management as investment manager to manage, supervise and direct the Client's investment account or accounts (collectively, the "**Account**") under the terms and conditions set out in this Agreement. By execution of this Agreement, Wellington Management accepts appointment as investment manager and agrees to manage, supervise and direct the investments of the Account pursuant to the provisions of this Agreement. The assets (including any interest accrued thereon) in the Account managed by Wellington Management pursuant to this Agreement shall remain vested in and owned exclusively by the Client.

Unless otherwise agreed in writing, Wellington Management's discretionary authority and responsibilities as investment manager under this Agreement will begin as of the date that the Account custodian, as designated in writing by the Client (the "**Custodian**"), and Wellington Management have reconciled to Wellington Management's satisfaction the relevant data on securities, cash and other assets available for trading in the Account between the Custodian's records and Wellington Management's portfolio trading systems (the "**Effective Date**").

2 DISCRETIONARY AUTHORITY – INVESTMENTS

Wellington Management shall have full and complete discretion to manage, supervise and direct the investment and reinvestment of assets in the Account and any additions thereto as set forth in this Agreement, subject to applicable laws in Canada, including guidelines issued by the Office of the Superintendent of Financial Institutions ("OSFI"), the investment objectives and guidelines set out in Attachment A (the "Investment Guidelines"), the Client's Investment Policy dated December 2022 and any amendments thereto (the "Investment Policy"), and any instructions in writing from the Client ("Instructions"). Client covenants that Investment Guidelines, Investment Policy, and Instructions will include relevant OSFI restrictions. Wellington Management shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, conversion or other transactions in any and all stocks, bonds, other securities cash or currencies, and other Account assets, including shares of a registered investment company for which Wellington Management may act as investment adviser upon receipt of consent from the Client in writing to proceed with a transaction involving a company for which Wellington Management acts as investment adviser and, upon proper authorization by the Client. interests in a collective trust maintained by a bank or trust company, including one maintained by an affiliate of Wellington Management (collectively "Wellington Sponsored Funds"), *provided* there is no duplication of fees paid to Wellington Management in respect of Wellington Sponsored Funds. Wellington Management's authority to act on behalf of the Client with regard to the Wellington Sponsored Funds is limited to engaging in authorized trading on behalf of the Account and transferring capital for purposes of authorized trading within the Account only. Upon the Client's prior written consent, Wellington Management may engage its affiliates, including Wellington Management Company LLP, to assist it with providing its services under this Agreement only to the extent that is permissible under applicable laws and regulatory authorities, including but not limited to OSFI, and each affiliate shall be registered and authorized with the required securities regulatory authorities to the extent required under applicable laws to permit the performance of the services contemplated in this Agreement. Notwithstanding the foregoing, no such engagement shall relieve Wellington Management from any of its obligations or liabilities hereunder, and Wellington Management shall remain responsible for all obligations or liabilities of such affiliate with regards to providing such services.

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Investment Management Agreement

Omega General Insurance Company

3 DISCRETIONARY AUTHORITY—BROKER SELECTION AND TRADING

Wellington Management shall have full and complete discretion to establish accounts and execute securities and other transactions with one or more brokers, financial intermediaries and trading counterparties ("**Brokers**") Wellington Management may select. including those which from time to time may furnish to Wellington Management or its affiliates statistical and investment research or execution services. Wellington Management's broker selection shall be conducted in accordance with its Policies and Procedures on Order Execution provided to the Client in writing, as may be amended from time to time, and which is available upon request.

The Client acknowledges Brokers may request information about the Client from Wellington Management in connection with the Brokers' anti-money laundering or client identification obligations. Wellington Management is hereby authorized to furnish such information to such Broker based on information provided to Wellington Management by the Client. In addition, the Client agrees that. upon written request, the Client will promptly provide Wellington Management with such information about the Client or documentation relating to it as Wellington Management may reasonably request in order to respond to a Broker's request. Wellington Management shall maintain all such information and documentation as confidential, and will comply with all applicable data privacy laws and regulations, and implement appropriate technical and non-technical safeguards, with respect to such information and documentation. In certain circumstances, Wellington Management may require the Client to enter into trading or other agreements directly with a Broker.

Wellington Management will act in good faith and with reasonable skill and care in the selection, use and monitoring of Brokers and shall seek "best execution" of Client trades, considering all relevant circumstances. Subject thereto, neither Wellington Management nor any of its affiliates will be liable for the performance of the obligations, or acts or omissions of Brokers with respect to any transaction placed on behalf of the Client where Wellington Management has acted in accordance with its standard of care regarding the selection of such Brokers. Unless otherwise instructed by the Client in writing, Wellington Management will, upon prior written notice to Client. effect foreign exchange transactions through the Custodian for income repatriation and when country-specific regulations and/or local market practice call for such execution. These transactions will be subject to the terms and conditions of the Client's agreement with its Custodian.

Wellington Management may, but shall be under no obligation to, aggregate the securities or other investments to be purchased or sold on behalf of the Client with similar transactions executed by Wellington Management on behalf of Wellington Management's other clients. Such aggregated orders (including associated expenses) will be allocated by Wellington Management as set forth in Wellington Management's Policy and Procedures Regarding Allocation of Trades provided to the Client in writing, as may be amended from time to time. A copy of this policy is available upon request. In addition, subject to applicable laws, rules and regulation, Wellington Management may, but shall be under no obligation to, execute purchases and sales of the same securities or other instruments on behalf of the Client directly with other clients of Wellington Management as set forth in Wellington Management's Policy and Procedures on Order Execution.

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|:---|:---|
| 4 | INVESTMENT OBJECTIVES AND GUIDELINES; CLIENT INSTRUCTIONS  |

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Wellington Management makes no assurance or guarantee that any investment objective will be met or that any particular investment result or return will be achieved. The Client represents that the Investment Guidelines are and will remain consistent with and includes the provisions of law, regulatory policies and organizational documents applicable to the Client.

Subject to any provision in the Investment Guidelines, Investment Policy and applicable laws to the contrary, Wellington Management shall apply Investment Guidelines and Investment Policy as follows: (i) asset-based restrictions (e.g., exposure and concentration limits) shall be applied at the time of acquisition based on the market value of the investments versus the total net assets of the Account; and (ii) credit ratings for issuers and counterparties will be determined by reference to the ratings assigned by a Designated Rating Organization, as defined in National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations (with Wellington Management determining the appropriate rating in the case of split ratings) and/or the credit rating assigned by Wellington Management. Ambiguities in the Investment Guidelines may be interpreted by Wellington Management in good faith and consistent with its fiduciary duty to the Client and applicable laws. In the case of such interpretations, Wellington Management shall manage the Account in the best interests of the Client. and Wellington Management shall provide notification of such interpretations to the Client as soon as reasonably practicable.

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Investment Management Agreement

Omega General Insurance Company

Wellington Management may, at its expense, utilize unaffiliated, reputable third-party data service providers in effecting compliance with the Investment Guidelines, Investment Policy, and/or Instructions. The Client acknowledges that third party data service providers provide data on a no-liability basis with no recourse on the part of Wellington Management nor Client for inaccuracies, omissions, failures to publish or other interruptions.

The Client may give Instructions to Wellington Management or modify the Investment Guidelines or Investment Policy at any time in accordance with this Agreement. Wellington Management shall have a reasonable period to comply with Instructions and/or bring the Account into compliance with any changes to the Investment Guidelines The Client covenants that any Instructions or modifications to Investment Guidelines or Investment Policy provided by the Client shall be consistent with the applicable laws, regulatory policies and organizational documents applicable to the Client. and the Client agrees to indemnify and hold harmless Wellington Management from any act or omission taken by Wellington Management in accordance with Client Instructions.

Wellington Management shall conduct its business in such a way and shall provide to the Client such information as is reasonably required to enable the Client to comply with all requirements imposed by any governmental or regulatory authority, including, without limitation, OSFI. and all applicable legislative and regulatory requirements, including, but not limited to, the location of records, the privacy of client information (as applicable), and the reporting of technology and cyber security incidents. Wellington Management shall notify the Client as soon as practicable of it becoming aware of, a breach in information or other technology or cyber security incident (including with respect to any affiliate or third party agent (as defined below)) if is determined that the Client's data has been or potentially could be impacted.

5 TAX MATTERS

Except as otherwise specified in the Investment Guidelines or Investment Policy, Wellington Management will provide investment management services for the Account without regard to any tax consequences that may result from any action taken or omitted by Wellington Management on behalf of the Account. Neither Wellington Management nor any of its affiliates provide tax advice in connection with investment of the Account's assets, and the Client is responsible for determining and paying any taxes owed with respect to the activities of the Account.

6 APPRAISAL OF ACCOUNT AND VALUATION

Wellington Management will provide the Client with a monthly and quarterly appraisal of the Account as of the last day on which the Toronto Stock Exchange is open for each calendar month or quarter as applicable (the "**Appraisal Date**"). Such appraisal will be in the form of a written summary of assets of the Account on the Appraisal Date, based on Wellington Management's trading records and Pricing Policies and Procedures, and will be provided to the Client solely for informational purposes.

Wellington Management endeavors to value all securities at fair market value as determined by Wellington Management in good faith and in accordance with its Pricing Policies and Procedures provided to the Client in writing, as may be amended from time to time. A copy of these policies and procedures are available upon request. Wellington Management is not the official pricing agent with respect to the Account, but will provide reasonable assistance to the Client in valuing the securities held in the Account upon request (e.g., fair value recommendations).

7 MANAGEMENT FEE

The Client will pay to Wellington Management a management fee as set forth **<u>Attachment</u> <u>B</u>** (the "**Management Fee**").

The Management Fee is exclusive of any taxes payable by the Client (including GST, HST and/or QST, as applicable, or any other value added taxes), and to the extent that any such taxes serve to reduce the amount received by Wellington Management for its services hereunder (not including taxes properly paid or to be paid by Wellington Management such as income taxes), the Client agrees to pay Wellington Management an additional amount such that Wellington Management receives the full Management Fee.

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Investment Management Agreement

Omega General Insurance Company

8 PROCEDURES

All transactions will be consummated by payment to, or delivery by the Custodian, of all cash and/or securities due to or from the Account according to local market settlement conventions. Wellington Management shall not act as custodian for the Account. Notwithstanding any other provision in this Agreement, Wellington Management shall not hold, directly, funds or securities contained in the Account or have any authority to obtain possession of them. Instructions by Wellington Management to the Custodian shall be made in writing through a mutually agreed upon method of electronic or other transmission, or, at the option of Wellington Management orally and confirmed by such transmission method as soon as practicable thereafter.

Wellington Management shall instruct all Brokers executing orders on behalf of the Account to forward to the Custodian copies of all transaction confirmations promptly after execution of transactions. The Client will instruct the Custodian to provide Wellington Management with such periodic reports concerning the status of the Account as Wellington Management may reasonably request.

Neither Wellington Management nor any affiliate shall have any liability for the acts or omissions of any custodian or sub-custodian hired by the Client or the Custodian, or the acts or omissions of any depository or clearing entity that must be used or is customarily used as a matter of market practice in any market. Without limiting the foregoing, Wellington Management does not assume responsibility for the accuracy of information furnished to it by the Client, Custodian, or by any person on whom it reasonably relies.

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|:---|:---|
| 9 | PROXIES  |

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The Client instructs Wellington Management to vote proxies for securities held in the Account in accordance with Wellington Management's Global Proxy Voting Policies and Procedures, as they may be amended from time to time. A current copy of this document is available upon request. The Client authorizes Wellington Management to instruct the Custodian to forward promptly to Wellington Management only copies of all proxies and shareholder communications relating to proxy votes involving securities held in the Account (other than materials relating to legal proceedings). The Client agrees that Wellington Management will not be responsible or liable for failing to vote any proxies where it has not received the proxies or related shareholder communications in a timely manner.

10 CLASS ACTIONS AND OTHER LEGAL PROCEEDINGS

Wellington Management will not compile or file claims or take any related actions on behalf of the Client in any class action, bankruptcy or other third-party legal proceeding related to securities currently or previously held in the Account ("Legal Proceedings"). Wellington Management shall provide factual information relating to Client's account in its possession as the Client may reasonably request. Client shall pay or reimburse costs actually and reasonably incurred by Wellington Management in connection with such Legal Proceedings, such as costs associated with complying with subpoenas or appearing as a witness by reason of Wellington Management's roles and responsibilities under this Agreement.

11 SERVICE TO OTHER CLIENTS

It is understood that Wellington Management and its affiliates provide investment management and advisory services for other clients, including other separate accounts, retail mutual funds and other pooled investment vehicles. It is further understood that Wellington Management or its affiliates may take investment action or give advice on behalf of such other clients that differs from investment action taken on behalf of the Account. Wellington Management shall not be precluded from any of the foregoing activities, *provided* such activities do not otherwise result in a breach of this Agreement and Wellington Management shall at all times comply with the terms of this Agreement, including, without limitation, Section 18 (Confidentiality).

12 STANDARD OF CARE; LIABILITY

Wellington Management shall discharge its duties under this Agreement with the care, skill, prudence and diligence that a prudent investment professional acting in a similar capacity, would use in the conduct of a similar enterprise with similar aims, taking into consideration the facts and circumstances in accordance with the Investment Guidelines and Investment Policy. Unless Wellington Management has breached the standard of care set forth in this Agreement or under applicable

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Investment Management Agreement

Omega General Insurance Company

laws, Wellington Management shall not be subject to any liability to the Client or to any other person or entity, for any act or omission of itself or of any other person or entity, in the course of, or connected with, performing its obligations under the Agreement including acts or omissions made in response to Client Instructions, except to the extent such act or omission constitutes a material breach of this Agreement, wilful misfeasance, bad faith or gross negligence on the part of Wellington Management, or any of its affiliates or delegates. Nothing herein in any way constitutes a waiver or limitation of any right of any person under any applicable federal or provincial or territorial securities laws of Canada.

With respect to Wellington Management's delegation of services performed under this Agreement to its affiliates or third party agents, Wellington Management shall remain responsible for any loss that arises out of the failure of such affiliate or third party agents to (i) exercise the powers and discharge the duties of its office honestly, in good faith and in the best interests of the Client or (ii) to comply with the same standard of skill or care set forth above.

In no event shall Wellington Management or any of its affiliates be liable hereunder for any indirect, incidental, consequential, special, speculative or punitive losses, damages, costs or expenses of any kind, including loss of opportunity, loss of anticipated profits or savings and loss of goodwill or reputation.

13 REPRESENTATIONS BY WELLINGTON MANAGEMENT

By execution of the Agreement, Wellington Management represents that: (i) it is duly qualified as an adviser and in good standing under securities legislation – whether in the form of registration or an exemption from such registration – in each Canadian jurisdiction where such registration or exemption, as the case may be, is required in order for Wellington Management to perform its duties under this Agreement; (ii) it is in compliance with, and shall perform its obligations hereunder in compliance with, all applicable laws and regulations, including, without limitation, maintaining all necessary licenses and consents. (iii) the Agreement has been duly authorized by appropriate action and when executed and delivered will be binding upon Wellington Management in accordance with its terms; and (iv) all representations made under this Agreement are true and accurate. Wellington Management covenants that any future representations made to the Client under or relating to this Agreement shall be true and accurate and that the Client may rely on the accuracy of such representations in its performance hereunder. Wellington Management agrees to notify the Client promptly of any changes to the representations made in this Section 13 that would result in a representation becoming untrue.

14 REPRESENTATIONS BY THE CLIENT

By execution of the Agreement, the Client represents that: (i) the terms hereof do not violate any law or other obligation by which the Client is bound, whether arising by contract, operation of law or otherwise; (ii) the Agreement has been duly authorized by appropriate action and when executed and delivered will be binding upon the Client in accordance with its terms; and (iii) all representations made under this Agreement are true and accurate at the time of execution and will remain so during the term of this Agreement. The Client covenants that any future representations made to Wellington Management under or relating to this Agreement shall be true and accurate and that Wellington Management may rely on the accuracy of such representations in the performance of its duties hereunder. Client agrees to notify Wellington Management promptly of any changes to the representations made in the aforementioned paragraphs that would result in a representation becoming untrue.

The Client additionally agrees to each of the representations, warranties and agreements set forth in <u>Attachment C</u>, Master Agreement Representations.

15 USE OF SERVICE PROVIDERS

Wellington Management may employ third party agents to perform any administrative or ancillary services. including security and cash reconciliation, portfolio pricing, guideline coding, and corporate action processing, required to enable Wellington Management to perform the services under this Agreement. Upon the Client's written request, Wellington Management shall identify any such third party agents to Client in writing, with such details as Client may reasonable request. Client authorizes Wellington Management to provide necessary information about the Client and the Client's investments to such third party agents to perform such services, *provided* that to the extent confidential information is shared with such third-party agents, any such third party agents is also bound by confidentiality and use obligations at least as protective as those herein, , and when reasonably requested by the Client, Wellington Management shall enter into a separate non-disclosure agreement in a form that is reasonably satisfactory to the Client. Wellington Management will act in good faith and with reasonable skill

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Investment Management Agreement

Omega General Insurance Company

and care in the selection, use and monitoring of agents. and the Client will not be responsible for any fees which any agent may charge in connection with such services. Wellington Management will remain responsible for the performance of its obligations under this Agreement and its liability will not be affected by the fact that it has employed third party agents to perform any administrative or ancillary services. Wellington Management's engagement of such agents shall not relieve Wellington Management of its obligations under the Agreement, and Wellington Management shall remain fully responsible for the performance of each such agent and its employees and for their compliance with all of the terms and conditions of this Agreement as if they were Wellington Management's own employees. Nothing contained in this Agreement shall create any contractual relationship between the Client and any of Wellington Management's agents.

16 ASSIGNMENT

No assignment of the Agreement shall be made by either party without prior written consent of the other party.

17 TERM AND TERMINATION

The Client may terminate this Agreement at any time by providing written notice to Wellington Management. Wellington Management may terminate this Agreement (i) by giving three (3) months' prior written notice to the Client. or (ii) with immediate effect by providing written notice to the Client if so required by an competent regulatory authority or law. The Agreement will continue until terminated by either party in accordance with the terms of this Section 17, or such shorter time period as mutually agreed by the parties. Additionally, the Agreement will automatically terminate upon withdrawal by Client of all assets held in the Account unless otherwise agreed to by the parties. Upon termination, Wellington Management will provide reasonable assistance to Client in transitioning the Account to a successor manager or in liquidating the Account; however, Wellington Management will retain no responsibility or authority over any account assets that cannot be liquidated at the time of termination.

18 CONFIDENTIALITY

Wellington Management and the Client acknowledge and agree that during the term of this Agreement the parties may have access to information that is proprietary or confidential to both parties or their respective affiliates ("Confidential Information"). For the purposes of this Section 18, the party receiving the other party's Confidential Information shall be referred to as the 'receiving party' and the party disclosing such Confidential Information shall be referred to as the 'disclosing party'.

At all times Confidential Information shall be handled at least with the same standard of confidentiality accorded the most sensitive and confidential documents and information of the receiving party, but no less than a commercially reasonable standard of care. The receiving party shall not use the Confidential Information for any purpose other than in connection with the exercise of its responsibilities under this Agreement. As applicable, the receiving party agrees that dissemination of the Confidential Information will be limited to only those employees, affiliates or agents of the receiving party (collectively, "Representatives") who have a need to know for purposes of this Agreement; and the receiving party shall be responsible to the disclosing party for any breach of this Section by any of the receiving party's Representatives. The receiving party shall promptly notify the disclosing party in writing in the event it becomes aware of any loss or unauthorized disclosure of any Confidential Information by the receiving party or its Representatives. Confidential Information shall not include any information that (i) is or becomes publicly available other than as a result of a breach of this Agreement. (ii) is or becomes available on a non-confidential basis to the receiving party from a source which is not known to the receiving party to be subject to a duty of confidentiality with respect to such information, (iii) was legally in the receiving party's possession prior to disclosure by the disclosing party without any obligation of confidentiality, (iv) is developed by or for the receiving party independently of the disclosing party's Confidential Information: or (v) is expressly approved for release by written authorization of the disclosing party.

In the event that the receiving party is requested or required by legal or regulatory authority, law or legal process (including subpoenas) (such request or requirement. a "Demand") to disclose any Confidential Information, the receiving party shall promptly notify the disclosing party of such Demand as reasonable under the circumstances, and only to the extent permitted by law, . In the event that a protective order or other remedy is not obtained, the receiving party agrees to furnish only that portion of the Confidential Information that it reasonably determines, in consultation with its counsel. is consistent with the scope of the Demand, and to exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. The receiving party will provide reasonable cooperation to the disclosing party and its legal counsel with respect to any Demand. Any expenses incurred by the receiving party in complying with this section shall be at the sole cost of the disclosing party.

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Investment Management Agreement

Omega General Insurance Company

In addition, the Client acknowledges that Wellington Management may disclose information relating to its investment activities in the normal course of business, including information relating to the Account. provided that no information identifying the Client may be shared.

The Client agrees not to make use of the investment decisions or recommendations of Wellington Management. other than with respect to the Account, without the prior written consent of Wellington Management. In addition, each party shall use its best efforts to ensure that any of its agents or affiliates who may gain access to Confidential Information shall be made aware of its proprietary nature and shall likewise treat it as confidential.

Upon either party's written request each party shall (i) return to the other party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other party's Confidential Information, (ii) permanently delete all of the other party's Confidential Information from its computer systems, and (iii) certify in writing to the other party that it has complied with this Section. Notwithstanding the foregoing, either party may retain Confidential Information to the extent required to be retained by law or routine and automatic back-up archiving systems.

The terms of this Section shall survive the expiration or termination of this Agreement. and the disclosing party shall be entitled to seek injunctive relief for any violation of this Section.

19 BUSINESS CONTINUITY

Wellington Management shall maintain and implement an adequate business continuity and disaster recovery plan. The plan shall set out how Wellington Management will continue to perform its obligations under the Agreement in any event which may result in business interruption, and which shall include all necessary steps relating to the storage and/or protection of the records, shall include requirements to monitor and manage technology and cyber security risks, and shall ensure Wellington Management's ability to continue to provide the services and perform its obligations under the Agreement. Wellington Management shall segregate personal information and records from those of its other clients at all times. Wellington Management shall carry out regular testing and updating of the plan and notify the Client of the results of such testing.

Wellington Management shall notify the Client of: (i) any material deficiencies identified in the plan; or (ii) any significant changes Wellington Management makes to the plan: that may have a serious impact on Wellington Management's ability to perform its duties under the Agreement.

20 DISPUTE RESOLUTION

In the event a dispute arises between Wellington Management and the Client. in-person or virtual negotiations shall be conducted between the parties' respective representatives to attempt to resolve the dispute. The parties shall ensure that each of its representatives use commercially reasonable efforts and work together in good faith to resolve any disagreements or disputes between the parties as quickly and efficiently as possible. If Wellington Management and the Client's representatives are unable to resolve the dispute within five business days after the parties have commenced in-person or virtual negotiations, then any party may request that in-person or virtual negotiations shall be conducted by an executive officer/senior member of management of each the parties' holding a title of vice president (or substantially equivalent title) or higher. If such executive officers/senior members of management are unable to resolve the dispute within five (5) business days after the parties have commenced such negotiations, any unresolved dispute arising out of the interpretation, performance or breach of this Agreement. including the formation or validity thereof, shall be resolved pursuant to Section 23. Wellington Management shall continue to provide the services pursuant to the Agreement during any disagreement or dispute between the parties, including and until such dispute is resolved by the parties.

21 RECORDS AND AUDIT

The Client, external auditors or other representatives appointed by the Client, including OSFI, shall reasonably have the right during normal business hours, to inspect and audit any records, information, systems and processes (including electronic systems and processes) of Wellington Management relating to the Agreement and shall have the right to make

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Investment Management Agreement

Omega General Insurance Company

copies or extracts of any such Client records. Wellington Management undertakes to reasonably deal openly and co-operatively with any applicable regulator or supervisory body, including OSFI, in relation to the operation of the Agreement. Wellington Management shall permit any regulatory body with jurisdiction over the Client to have reasonable access to any of its business premises where Wellington Management carries on business to inspect and audit the records, information, accounts and business processes relating to the Agreement. Wellington Management shall, unless prohibited by law, inform the Client promptly if any regulatory or supervisory body, including OSFI, exercises or seeks to exercise any right to inspect or audit the records held by Wellington Management in relation to the Agreement.

Wellington Management shall retain all records, including electronic, relating to the Accounts or other documentation arising from this Agreement for a minimum period of seven (7) years or for such longer period as may be required by applicable laws. Wellington Management shall provide the Client with any information and provide access to the premises, responsible persons and systems as the Client may reasonably require from time to time relating to the Account and the operation of the Agreement. Wellington Management shall cause any affiliate or third party agent to adhere to the audit and inspection rights provided in this Agreement.

22 FORCE MAJEURE

No party to this Agreement will be liable for any failure or delay in performing any of its obligations under or pursuant to the Agreement, and any such failure or delay in performing its obligations will not constitute a breach of the Agreement, if such failure or delay is due to any cause whatsoever outside its reasonable control. Any such non-performing party will be entitled to a reasonable extension of the time for performing such obligations. Events outside a party's reasonable control include any event or circumstance that the party is unable to avoid using reasonable skill and care.

23 CONSTRUCTION OF AGREEMENT

The Agreement will be construed and the rights and obligations of the parties under the Agreement enforced in accordance with the laws of the Province of Ontario (without regard to its conflict of laws provisions and interpretations) and the laws of Canada applicable therein. The parties agree that the courts of the Province of Ontario will have non -exclusive jurisdiction over the parties regarding any dispute arising under this Agreement.

24 REPORTS AND NOTICE

Any notice to be given pursuant to the Agreement will be deemed to have been duly given or made as of the date delivered or transmitted, and will be effective upon receipt, if delivered personally, mailed by registered or certified mail (postage prepaid, return receipt requested) to the following addresses, or sent by electronic transmission to the fax number specified below:

To Wellington Management at:

Wellington Management Canada ULC

[\*\*\*]

With a copy to:

Wellington Management Company LLP

[\*\*\*]

Attention: [\*\*\*]

Fax No: [\*\*\*]

To the Client at: Omega General Insurance Company

[\*\*\*]

Attention: [\*\*\*]

With a copy to: [\*\*\*]

The Client consents to electronic delivery of any reports or other information that may be requested by the Client or required to be delivered by Wellington Management under this Agreement, or pursuant to applicable law, rule or regulation, including

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Investment Management Agreement

Omega General Insurance Company

delivery of Part 2 of Wellington Management's Form ADV and any updates thereto, and Client represents that it has the means to, and will access, such disclosures in electronic format. Wellington Management shall provide Client with hard copies of any such disclosures upon request. The Client may revoke this consent upon written notice to Wellington Management.

☐ By checking the box, Client expressly agrees to receive commercial electronic messages from Wellington Management, which may include periodic market updates, information on other strategies or investment products offered by Wellington Management (or its affiliates).

25 SEVERABILITY

If any court of competent jurisdiction at any time holds that any provision in this Agreement is invalid or unenforceable in whole or in part, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement. which will remain in full force and effect. The parties shall use their reasonable efforts to agree on a new provision which will, as far as possible, achieve the same purpose as the provision that is held invalid or unenforceable.

26 AMENDMENTS

The Agreement may be amended only by means of a written document signed by a duly authorized representative of each party.

27 COUNTERPARTS

The Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.

28 ELECTRONIC SIGNATURES

The parties agree that this Agreement and any documents related hereto may be electronically signed. The parties agree that any electronic signatures appearing on this Agreement and any related documents are the same as handwritten signatures for the purposes of validity, enforceability and admissibility.

Signatures

Omega General Insurance Company

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|:---|:---|
| By: | /s/ Bruno Primerano |
| Name: | Bruno Primerano |
| Title: | Chief Financial Officer |
| Agreed and Accepted: | Agreed and Accepted: |
| Wellington Management Canada ULC | Wellington Management Canada ULC |
| By: | /s/ Alan Matijas |
| Name: | Alan Matijas |
| Title: | Director |

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Investment Management Agreement

Omega General Insurance Company

**ATTACHMENT A** 

**INVESTMENT OBJECTIVES AND GUIDELINES** 

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Investment Management Agreement

Omega General Insurance Company

**ATTACHMENT B** 

**FEE SCHEDULE** 

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Investment Management Agreement

Omega General Insurance Company

**ATTACHMENT C** 

**MASTER AGREEMENTS REPRESENTATIONS**

## Exhibit 21.1

**Exhibit 21.1** 

**<u>Subsidiaries of Accelerant Holdings</u>**

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|:---|:---|
| **Name of Subsidiary** | **Jurisdiction** |
| 2WJ, LLC | US |
| Abacus Assurances SAS | France |
| Accelerant Agency (UK) Limited | UK |
| Accelerant Agency Canada Ltd. | Canada |
| Accelerant Agency Limited | Ireland |
| Accelerant Canada Services, Inc. | Canada |
| Accelerant Canada Holdings, Inc. | Canada |
| Accelerant Distribution Holdings Limited | Malta |
| Accelerant Holdings (Cayman) Ltd. | Cayman Islands |
| Accelerant Holdings UK Ltd. | UK |
| Accelerant Insurance Company of Canada | Canada |
| Accelerant Insurance Europe SA | Belgium |
| Accelerant Insurance UK Limited | UK |
| Accelerant International Holdings Corp. | US |
| Accelerant Malta Holdings Limited | Malta |
| Accelerant National Insurance Company | US |
| Accelerant Re (Cayman) Ltd. | Cayman Islands |
| Accelerant Re I.I. | US |
| Accelerant Risk Exchange, LLC | US |
| Accelerant Services Bermuda Ltd. | Bermuda |
| Accelerant Services (Malta) Limited | Malta |
| Accelerant Services UK Limited | UK |
| Accelerant Specialty Insurance Company | US |
| Accelerant Underwriting Holdings Limited | Bermuda |
| Accelerant Underwriting Holdings UK Limited | UK |
| Accelerant Underwriting Managers, Inc. | US |
| Accelerant US Distribution Holdings, LLC | US |
| Accelerant US Holdings, LLC | US |
| Accelerant US Services Company Holdings, LLC | US |
| Accelerant US Services Company, LLC | US |
| Agri Acquisition Co., LLC | US |
| Agribusiness Risk Services, LLC | US |
| American Eagle Underwriting Managers, LLC | US |
| ARB Acquisition Co. Ltd. | Malta |
| Assurely Acquisition Co., LLC | US |
| Ayax (UK) Acquisition Co. Ltd | UK |
| Ayax Specialty S.L. | Spain |
| Capital Markets Underwriting Limited | UK |
| Certass Limited | UK |
| Certass TA Limited | UK |
| Colibrì Italia S.R.L. | Italy |
| Corniche Acquisition Co. Ltd. | UK |
| Corniche Underwriting (EU) Limited | Ireland |

---

------

---

| | |
|:---|:---|
| Corniche Underwriting Ltd | UK |
| Euna Acquisition Co. Ltd. | UK |
| Euna Underwriting Ltd | UK |
| Everest RM Acquisition Co. Ltd. | Malta |
| Gaia Acquisition Co., LLC | US |
| IECD (SAC) Ltd. Segregated Account SA037 | Bermuda |
| InRev Acquisition Co., LLC | US |
| InRev, Inc. | US |
| Ionios New Agency A.E. | Greece |
| Leap Acquisition Co., LLC | US |
| Leap Holdings, Inc. | US |
| LRMS Acquisition Co. Ltd. | Malta |
| LRMS Europe Ltd. | Ireland |
| LRMS Insurance Services Limited | UK |
| M2 Acquisition Co. Ltd. | Malta |
| M2 Insurance Agents SA | Greece |
| Matrix Acquisition Co. Ltd. | Malta |
| Mission Holdings Europe Ltd. | Malta |
| Mission Services Ireland Limited | Ireland |
| Mission Specialty Risk Managers, LLC | US |
| Mission Underwriting Holdings, LLC | US |
| Mission Underwriting Ireland Limited | Ireland |
| Mission Underwriting Managers, LLC | US |
| Mission Underwriting Services Limited | UK |
| Mission Underwriting Services, LLC | US |
| Mission Underwriting UK Limited | UK |
| Mission US Holdings, LLC | US |
| Mission Worldwide Holdings | Cayman Islands |
| N.B.S. UK Holdings Limited | UK |
| NBS Commercial Limited | Ireland |
| NBS Underwriting Limited | UK |
| Now Agents Insurance Agents Société Anonyme | Greece |
| Omega Acquisition Co Ltd. | Canada |
| Rev Risk Management (Europe) Limited | Ireland |
| RiskAlliance Acquisition Co. Ltd. | UK |
| Servicios Profesionales de Suscripción de Riesgos Iberia S.L | Spain |
| S.E. Consultants Limited | UK |
| Sproutr Acquisition Co., LLC | US |
| Sproutr, LLC | US |
| SSR Acquisition Co. Ltd. | Malta |
| The Underwriting Specialist Limited | UK |
| Triad Insurance Acquisition Co., LLC | US |
| Triad Insurance Management & Services Agency, Inc. | US |
| UBI Acquisition Co. Ltd. | UK |
| UBI Courtage Limited | Ireland |
| United Brokers International Limited | UK |
| Warranty Services Limited | UK |
| Woodstar Holdings, LLC | US |
| Woodstar Reciprocal Exchange Holding Company, LLC | US |
| Woodstar Risk Management, Inc. | US |
| Woodstar Specialty Insurance Company | US |

---

## Exhibit 23.1

**Exhibit 23.1** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form S-1 of Accelerant Holdings of our report dated March 27, 2025, relating to the financial statements and financial statement schedules of Accelerant Holdings, which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

June 30, 2025

## Exhibit 23.2

**Exhibit 23.2** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form S-1 of Accelerant Holdings of our report dated March 27, 2025, relating to the financial statements and financial statement schedules of Accelerant Holdings LP, which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

June 30, 2025

## Ex-Filing

**Exhibit 107** 

**Calculation of Filing Fee Tables** 

**Form S-1** 

(Form Type)

**Accelerant Holdings** 

(Exact Name of Registrant as Specified in its Memorandum and Articles of Association)

<u>Table 1: Newly Registered and Carry Forward Securities</u> 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Security<br>Type | Security<br>Class<br>Title | Fee<br>Calculation<br>or Carry<br>Forward<br>Rule | Amount<br>Registered | Proposed<br>Maximum<br>Offering<br>Price Per<br>Unit | Maximum<br>Aggregate<br>Offering<br> Price<sup>(1)(2)</sup> | Fee<br>Rate | Amount of<br>Registration<br>Fee | Carry<br>Forward<br>Form<br>Type | Carry<br>Forward<br>File<br>Number | Carry<br>Forward<br>Initial<br>Effective<br>Date | Filing Fee<br>Previously<br>Paid in<br>Connection<br>with<br>Unsold<br>Securities<br>to be<br>Carried<br>Forward |
| &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities |
| &nbsp;&nbsp;&nbsp;Fees to be Paid | Equity | Class A common shares,<br> par value $0.0001 per share | 457(o) | N/A | N/A | $100000000 | 0.00015310 | $15310.00 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fees Previously Paid | N/A | N/A | N/A | N/A | N/A | N/A |  | N/A |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities |
| &nbsp;&nbsp;&nbsp;Carry Forward Securities | N/A | N/A | N/A | N/A |  | N/A |  |  | N/A | N/A | N/A | N/A |
|  | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts |  | $100000000 |  | $15310.00 |  |  |  |  |
|  | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid |  |  |  | $0 |  |  |  |  |
|  | Total Fee Offsets | Total Fee Offsets | Total Fee Offsets | Total Fee Offsets |  |  |  | $0 |  |  |  |  |
|  | Net Fee Due | Net Fee Due | Net Fee Due | Net Fee Due |  |  |  | $15310.00 |  |  |  |  |

---

(1) Includes offering price of additional Class A common shares that the underwriters have the option to
purchase.

(2) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the
Securities Act of 1933, as amended.