Document:

exv4w1

Exhibit 4.1

IRREVOCABLE UNDERTAKING AGREEMENT

in relation to

THE ACCEPTANCE OF A TENDER OFFER FOR THE SHARES OF 

TELVENT GIT, S.A

between

SCHNEIDER ELECTRIC, S.A. and SCHNEIDER ELECTRIC ESPAÑA, S.A.U.

and

ABENGOA, S.A., SIEMA, A.G., and TELVENT CORPORATION, S.L.

31 May 2011

 

 

Index

	 	 	 	 	 

	I. PARTIES
	 	 	1	 
	II. RECITALS
	 	 	2	 
	III. CLAUSES
	 	 	4	 
	1. Agreement to Tender
	 	 	4	 
	2. Agreement to Vote
	 	 	4	 
	3. Undertakings of the Selling Stockholders
	 	 	6	 
	4. Undertakings of the Bidder Parties
	 	 	9	 
	5. Representations and Warranties of the Bidder Parties
	 	 	10	 
	6. Representations and Warranties of the Selling Stockholders
	 	 	11	 
	7. Indemnity undertaking
	 	 	14	 
	8. No Managing Interest
	 	 	15	 
	9. Term
	 	 	15	 
	10. Termination of the Agreement
	 	 	15	 
	11. Confidentiality; Public Announcements
	 	 	16	 
	12. Specific Performance
	 	 	17	 
	13. Assignment; Third-Party Beneficiaries
	 	 	17	 
	14. Costs and taxes
	 	 	18	 
	15. Interpretation Standards
	 	 	18	 
	16. Notices
	 	 	19	 
	17. Governing law
	 	 	22	 
	18. Arbitration
	 	 	22	 
	SCHEDULE
	 	 	25	 

 

 

31 May 2011

I. PARTIES

Of the one part,

SCHNEIDER ELECTRIC, S.A., a French société anonyme with its registered office at 35, rue Joseph
Monier, 92500 Rueil-Malmaison, France, registered in the Commercial and Companies Registry of
Nanterre under number 542 048 574 (hereinafter, “SE” or the “Bidder”), duly represented herein by
Emmanuel Babeau; and

SCHNEIDER ELECTRIC ESPAÑA, S.A.U., a company organized under the laws of the Kingdom of Spain and
an indirect wholly owned subsidiary of the Bidder, with its corporate domicile in Barcelona, C/Bac
de Roda, n° 52, edificio A, registered with the Companies’ registry of Barcelona in Tomo 23.584,
Folio 124, Sección 8a, Hojo B-57.594, and having C.I.F. A-08008450 (hereinafter,
“BIDCO”), duly represented herein by Elena González-Anta;

(the Bidder and BIDCO together referred to as the “Bidder Parties”)

and of the other part,

ABENGOA, S.A. a company organized under the laws of the Kingdom of Spain with corporate domicile in
Sevilla, Campus Palmos Atlas, C/Energia Salas 1, registered with the Commercial Registry of Sevilla
under Tomo 47, Folio 107, Hoja 2.921, and having C.I.F. A-41002288 (hereinafter, “ABENGOA”), duly
represented herein by Miguel Angel Jimenez de Velasco Mozario;

SIEMA, A.G., a company organized under the laws of Switzerland and a wholly owned subsidiary of
ABENGOA, with its address at Poststrasse 30, 6300 Zug, Switzerland, registered under number
CH-170.3.023.234-4 (hereinafter, “SIEMA”), duly represented herein by Amando Sanchez Falcón;

TELVENT CORPORATION, S.L., a company organized under the laws of the Kingdom of Spain and a wholly
owned subsidiary of ABENGOA, with its corporate domicile in Alcobendas (Madrid), C/Valgrande 6,
registered with the Commercial Registry of Madrid under Tomo 20.168, Folio 31, Sección
8a, Hoja M-

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356.116, and having C.I.F. B-84023340 (hereinafter, “TELVENT Corporation”) duly represented herein
by Amando Sanchez Falcón;

(SIEMA and TELVENT Corporation together referred to as the “Company Stockholders”, and ABENGOA and
the Company Stockholders collectively referred to as the “Selling Stockholders”);

The expression the “Parties” shall refer to the Bidder, BIDCO, ABENGOA, SIEMA and TELVENT
Corporation.

II. RECITALS

	I.	 	Whereas TELVENT GIT, S.A. is a company organized under the laws of the Kingdom of
Spain, with corporate domicile in Alcobendas (Madrid), Valgrande 6, registered with the
Commercial Registry of Madrid, under Tomo 15.370, Folio 164, Hoja M-257879, and having C.I.F.
A-82631623 (hereinafter, “TELVENT” or the “Company”).
	 
	II.	 	Whereas the share capital of TELVENT currently amounts to €
102,454,652.50, represented by 34,094,159 ordinary shares with a
nominal value of € 3.00505 per share, which are listed on and traded
through the Nasdaq Global Select Market in the United States
(hereinafter, the “TELVENT Shares”).
	 
	III.	 	Whereas the Bidder Parties intend to launch a tender offer
(hereinafter, the “Offer”) for the TELVENT Shares promptly following
the execution hereof, pursuant to a transaction agreement (the
“Transaction Agreement”) that the Bidder and TELVENT have entered
into on the date hereof, such Offer to be made at a price of US $40
per share (such amount or, if the Offer is amended in accordance with
the terms of the Transaction Agreement and a higher amount per
TELVENT Share is paid pursuant to the Offer, such higher amount, the
“Acquisition Price”), subject to the terms and conditions set forth
in the Transaction Agreement and the related Offer materials (the
“Tender Offer Materials”), otherwise in accordance with the Exchange
Act), including Regulation 14D promulgated thereunder (hereinafter
the “US tender offer rules”).
	 
	IV.	 	Whereas on the date of execution of this Agreement ABENGOA is the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act)
of an aggregate number of 13,637,664 TELVENT Shares, of which
11,403,064

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	 	 	shares are held by TELVENT Corporation and 2,234,600 shares are held by SIEMA (all such
beneficially owned TELVENT Shares which are outstanding as of the date hereof and which
may hereafter be issued to or otherwise acquired or owned by ABENGOA prior to the
termination of this Agreement (including pursuant to any exercise of acquisition by
purchase, or stock dividend, distribution, split-up, recapitalization, combination or
similar transaction), being referred to herein as the “Subject Shares”).
	 
	V.	 	Whereas as a condition to their willingness to enter into the Transaction Agreement, the
Bidder Parties have requested that the Selling Shareholders, and in order to induce the Bidder
Parties to enter into the Transaction Agreement, the Selling Shareholders have (and for
ABENGOA only in its capacity as a shareholder of TELVENT) agreed to, enter into this
Agreement.
	 
	VI.	 	Whereas pursuant to the Transaction Agreement, (a) TELVENT shall,
using its available cash balances that the management of the Company
reasonably determines are not necessary or useful to maintain for
purposes of the Company’s working capital needs and using funds to
be provided by the Bidder Parties, repay in full all indebtedness
for borrowed money existing as of immediately prior to the Offer
Closing, between TELVENT or any of its Subsidiaries, on the one
hand, and ABENGOA or its Affiliates (other than TELVENT) or any of
its Subsidiaries, on the other hand and TELVENT and the Bidder
Parties shall cause ABENGOA or its Affiliates (other than TELVENT)
to be released from guarantees and other credit support provided to
TELVENT and its Subsidiaries, which indebtedness, guaranties and
credit support are set forth on Schedule VI, and (b) ABENGOA shall
repay in full any indebtedness for borrowed money, if any, owed to
TELVENT existing as of immediately prior to the Offer Closing.
	 
	VII.	 	Whereas in light of the above, the Selling Shareholders desire to
sell the Subject Shares to the Bidder Parties at the Acquisition
Price and the Bidder Parties desire to acquire the Subject Shares at
such price subject to the terms and conditions set forth in this
Agreement.
	 
	VIII.	 	Whereas capitalized terms used but not otherwise defined herein
shall have the respective meanings ascribed to such terms in the
Transaction Agreement, and the other definitional and interpretative
provisions set

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	 	 	forth in Section 6.13 of the Transaction Agreement shall apply hereto as if such
provisions were set forth herein.
	 
	IX.	 	Whereas, in light of the above and the respective representations, warranties, covenants and
agreements set forth below, the Parties hereto agree as follows.

III. CLAUSES

1. Agreement to Tender

1.1 Each Selling Stockholder agrees that each Company Stockholder shall duly tender, or cause
to be tendered, in the Offer, all of the Subject Shares pursuant to and in accordance with
the terms of the Offer. Promptly, but in any event no later than ten Business Days after
the commencement of the Offer, each Company Stockholder shall (i) deliver to the depositary
designated for the Offer (the “Depositary”) (A) a letter of transmittal with respect to such
Subject Shares complying with the terms of the Offer, (B) a certificate or certificates
representing such Subject Shares or an “agent’s message” (or such other evidence, if any, of
transfer as the Depositary may reasonably request) in the case of a book-entry transfer of
any uncertificated Subject Shares and (C) all other documents or instruments required to be
delivered pursuant to the terms of the Offer, and (ii) instruct its broker or such other
person that is the holder of record of any Subject Shares to irrevocably tender into the
Offer all of the Subject Shares pursuant to and in accordance with the terms of the Offer.
Each Selling Stockholder agrees that once the Subject Shares are tendered, the Selling
Stockholders shall not withdraw, nor cause or permit the withdrawal of, any tender of such
Subject Shares, unless and until (i) the Offer shall have been terminated in accordance with
the terms of the Transaction Agreement, or (ii) this Agreement shall have been terminated in
accordance with clause 10.

2. Agreement to Vote

2.1 Except to the extent waived in writing by the Bidder in its discretion, at any meeting of
the stockholders of TELVENT, however called, or at any adjournment thereof, or in any other
circumstances upon which a vote, consent or other approval of all or some of the
stockholders of TELVENT is sought, each Selling Stockholder shall vote (and shall cause each
of its Affiliates to vote) all of the Subject Shares owned by such

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Selling Stockholder or Affiliate (to the extent the Subject Shares are not purchased in
the Offer): (i) against any action, transaction or agreement that would result
in a breach of any covenant, representation or warranty or any other obligation or
agreement of TELVENT under the Transaction Agreement or of any of the parties hereto
under this Agreement; and (ii) against the following actions (other than the
transactions contemplated or permitted by the Transaction Agreement): (A) any
extraordinary corporate transaction, such as a merger, consolidation or other business
combination involving TELVENT or any of its subsidiaries; (B) any sale, lease or
transfer of a material amount of assets of TELVENT or any of its subsidiaries;
(C) any reorganization, recapitalization, dissolution, liquidation or winding up
of TELVENT or any of its subsidiaries; (D) any change in the majority of the
Company Board; (E) any change in the present capitalization of TELVENT or any
amendment of the articles of association of TELVENT; (F) any other material
change in the corporate structure or business of TELVENT; and (G) any other
action, transaction or proposal involving TELVENT or any of its subsidiaries that is
intended or would reasonably be expected to (x) prevent, nullify, impede,
interfere with, frustrate, delay, postpone, discourage or otherwise materially adversely
affect the Offer, the Transaction Agreement, any of the transactions contemplated by the
Transaction Agreement or this Agreement or the contemplated economic benefits of any of
the foregoing or (y) change in any manner the voting rights of any Subject
Shares, provided that none of the foregoing shall prohibit any employee of a
Selling Stockholder who is a director of TELVENT from fulfilling its duties as a
director of TELVENT under provisions of Spanish law and in particular those related to
the independence of directors and the fiduciary duties and duty of care of directors
under Spanish Stock Corporation Law (Ley de Sociedades de Capital).

2.2 Except as set forth in Section 2.1, each Selling Stockholder shall retain at all times
the right to vote such Selling Stockholder’s Subject Shares in such Selling Stockholder’s
sole discretion and without any other limitation on those matters other than those set forth
in this Agreement that are at any time or from time to time presented for consideration to
the Company’s stockholders to the extent that the Company is entitled to do so or not
prohibited from doing so under the Transaction Agreement.

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3. Undertakings of the Selling Stockholders

3.1 Until the earlier of the date of settlement of the Offer, the date of withdrawal of the
Offer or the date of termination of this Agreement, as applicable, and in accordance with
the terms and conditions of this Agreement, each Selling Stockholder, acting directly or
indirectly through any affiliate or any entity within its Group (for the purposes of this
Agreement the term “Group” shall be understood in accordance with section 42 of the Spanish
Commercial Code, and for the avoidance of doubt, as used in this Agreement, the term “Group”
shall not apply with respect to TELVENT or any of its affiliates or any entity within its
Group), jointly and severally, undertakes to take any and all necessary or convenient
actions to facilitate the successful completion of the Offer, and in particular (except as
otherwise permitted by this Agreement):

	 	(i)	 	(x) to maintain record and/or beneficial ownership (as “beneficial owner”
is defined in Rule 13d-3 under the Exchange Act), as the case may be, of the Subject
Shares until their transfer to BIDCO, except as such beneficial ownership may be
deemed transferred to the Bidder Parties pursuant to this Agreement; (y) not to,
directly or indirectly, (i) transfer (which term shall include any sale, offer for
sale, transfer, tender, assignment, gift, pledge, hypothecation or other
disposition), or consent to or permit any such transfer of, any or all of the Subject
Shares or any interest therein, or create or permit to exist any Lien on any Subject
Shares, other than any restrictions imposed by Applicable Law or pursuant to this
Agreement, (ii) enter into any Contract with respect to any transfer of such Subject
Shares or any interest therein, (iii) grant or permit the grant of any proxy, power
of attorney or other authorization in or with respect to such Subject Shares, (iv)
deposit or permit the deposit of such Subject Shares into a voting trust or enter
into a voting agreement or arrangement with respect to such Subject Shares, or (v)
take or permit any other action that would in any way restrict, limit or interfere
with the performance of its obligations hereunder or the transactions contemplated
hereby or otherwise make any representation or warranty of each Shareholder herein
untrue or incorrect; and (z) use its reasonable commercial efforts, in its capacity
and consistent with its role as a stockholder, to take all actions reasonably
required as a stockholder to (A) cause TELVENT to perform its obligations

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	 	 	 	under the Transaction Agreement in all material respects and (B) not to cause
TELVENT to take any action that would be in violation of the Transaction
Agreement in any material respect; and
	 
	 	(ii)	 	to tender all the Subject Shares in the Offer as promptly as practicable
after commencement of the Offer, but in any event no later than ten Business Days
following commencement of the Offer.

If for any reason, any Selling Stockholder or any of its Affiliates, or any other entity
within its Group acquires or receives additional TELVENT Shares during such period, such
Selling Stockholder hereby irrevocably commits to sell, or cause to be sold, such
additional TELVENT Shares to the Bidder on the terms and conditions of this Agreement.
Each Selling Stockholder undertakes that any additional shares which might be acquired or
received by such Selling Stockholder, any affiliate or any other entity within the Group
according to this clause will be free from any lien, pledge, hypothecation, proxy, power
of attorney, encumbrance, option, pre-emptive right, contract or other agreement or
understanding with respect to any transfer of the Subject Shares or of any interest
therein and any restriction to their free transferability, and that they will carry all
full voting and economic rights in favor of such Selling Stockholder. Any TELVENT Shares
acquired or received by any Selling Stockholder, an Affiliate or any other entity within
its Group after the date of this Agreement shall be considered “Subject Shares” for all
purposes of this Agreement.

3.2 Prior to the expiration of the Offer, the Selling Stockholders shall take all actions
reasonably required to cause each director of the Company Board nominated by ABENGOA (which,
for purposes of this Agreement, shall also include any director nominated by TELVENT
Corporation (such directors, “Abengoa Nominees”)) to provide to TELVENT (with copies to the
Bidder) irrevocable letters of resignation, the effectiveness of which shall be conditioned
solely upon the occurrence of the Offer Closing and payment for all TELVENT Shares validly
tendered and not withdrawn as of the Offer Closing. The Selling Stockholders shall take all
actions reasonably required to cause the persons designated by the Bidder (each a “Bidder
Designee”) to be

 Page 7 

 

elected or appointed to the Company Board promptly upon the effectiveness of such
resignations.

3.3 No Selling Stockholder shall, nor shall it authorize or permit any of its Affiliates or
any of its respective directors, officers, employees, agents, investment bankers, financial
advisors, attorneys, accountants or other advisors or representatives (collectively
“Representatives”) to, directly or indirectly (i) initiate, solicit, knowingly facilitate or
knowingly encourage any inquiry or the making of any proposal that constitutes or could
reasonably be expected to lead to an Alternative Proposal, (ii) enter into any letter of
intent, memorandum of understanding or other agreement, arrangement or understanding
relating to, or that could reasonably be expected to lead to, an Alternative Proposal, or
(iii) continue or otherwise participate in any discussions or negotiations regarding,
furnish to any Person any information or data with respect to, or otherwise cooperate with
or take any other action to knowingly facilitate any proposal that (A) constitutes, or could
reasonably be expected to lead to, an Alternative Proposal or (B) requires that TELVENT
abandon, terminate or fail to consummate the Offer or any other transactions contemplated by
the Transaction Agreement or this Agreement. Each Selling Stockholder and each of its
Affiliates and Representatives shall (i) immediately cease and cause to be terminated any
existing activities, discussions or negotiations with any Persons or their Representatives
(other than SE) conducted prior to the date of this Agreement with respect to an Alternative
Proposal and (ii) use its reasonable best efforts promptly to inform its Representatives of
the obligations undertaken in this Section 3.3 Without limiting the foregoing, any
violation of the restrictions set forth in this Section 3.3 by any Representative of a
Selling Stockholder or any of its Affiliates, whether or not such Person is purporting to
act on behalf of such Selling Stockholder or any of its Affiliates, shall be deemed to be a
breach of this Section 3.3 by such Selling Stockholder.

3.4 Following the Offer Closing until the first anniversary of the Offer Closing, ABENGOA
will, and will cause its Affiliates (other than TELVENT) to, continue to provide services
to TELVENT and its Subsidiaries of the same type, at the same levels of service, for the
same level of fees and on the same terms as of the date hereof; provided that (a)
ABENGOA shall agree to amend the relevant agreements to allow TELVENT and its Subsidiaries
to discontinue any service at any time

 Page 8 

 

upon 30 days prior written notice (at which time there would be a corresponding
reduction in the fees payable to ABENGOA and its Affiliates),  and (b) upon the
written request of SE no later than 30 days prior to the first anniversary of the Offer
Closing, ABENGOA shall provide any services requested by SE for an additional six-month
period (or such shorter period as may be specified by SE in its notice).

3.5 From the date of this Agreement until the second anniversary of the Offer Closing,
without the prior written consent of the Bidder, ABENGOA will not, and will procure that
none of its Affiliates (other than TELVENT) will not, directly or indirectly, (i) employ any
person who is an officer or senior manager of TELVENT or any of its Subsidiaries, or (ii)
solicit or encourage any person who is an officer or senior manager of TELVENT or any of its
Subsidiaries to leave his or her current employment or to breach the terms of his or her
employment with TELVENT or its Subsidiaries.

The restrictions of this clause 3.5 shall not apply to (i) the employment of any person
whose employment was terminated by TELVENT or any of its Subsidiaries, other than for
“cause” (as such term is generally understood in the jurisdiction of such person’s
employment), or (ii) the solicitation of employees of TELVENT or any of its Subsidiaries
who have been contacted through general solicitations of employment (including
advertisements or public agencies for selection and placement personnel).

4. Undertakings of the Bidder Parties

4.1 The Bidder Parties hereby, jointly and severally (solidariamente), undertake:

 Page 9 

 

	 	(i)	 	To launch the Offer as promptly as practicable following the date hereof in
accordance with the Transaction Agreement.
	 
	 	(ii)	 	Subject to the satisfaction or waiver of all conditions to the Offer set
forth in the Transaction Agreement, to acquire the Subject Shares tendered into the
Offer and to pay to the Selling Stockholders the Acquisition Price for each Subject
Share pursuant to and in accordance with the terms of the Offer promptly following
the expiration of the Offer in accordance with the Exchange Act.
	 
	 	(iii)	 	To provide the Selling Stockholders with all such information as it shall
reasonably request in relation to the conduct of the Offer.
	 
	 	(iv)	 	To perform in full, and to cause the Company and its Subsidiaries to
perform in full, all their obligations under or pursuant to Section 4.9 of the
Transaction Agreement.

5. Representations and Warranties of the Bidder Parties

5.1 The Bidder Parties, jointly and severally (solidariamente), state that the
representations and warranties set forth in clause 5.2 (hereinafter, “Representations and
Warranties of the Bidder Parties”) are true, accurate and complete, and do not omit any fact
or circumstance that might alter, limit or condition their content and scope.

5.2 The Bidder Parties hereby, jointly and severally, represent and warrant to the Selling
Stockholders that:

	 	(i)	 	Valid/Binding agreement. Assuming the due authorization, execution
and delivery of this Agreement by the Selling Stockholders, this Agreement, when duly
executed, will constitute valid and binding agreement of the Bidder Parties,
enforceable against each Bidder Party in accordance with its terms, subject only to
the Bankruptcy and Equity Exception.
	 
	 	(ii)	 	Valid existence. Each Bidder Party is a duly incorporated company,
validly existing and in good standing under the laws of the jurisdiction in which
such party is organized, and each Bidder

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	 	 	 	Party has full corporate power and authority to enter into this Agreement and to
perform its obligations hereunder.
	 
	 	(iii)	 	Authorization / enforceability. The execution, delivery and
performance by the Bidder Parties of this Agreement and all of the documents and
instruments required hereby from the Bidder Parties and the consummation of the Offer
and other transactions contemplated hereby and thereby are within the corporate power
of each Bidder Party and have been duly authorized by all necessary corporate action
of such Bidder Party. Therefore, this Agreement and any other documents or
instruments entered into pursuant to this Agreement shall be enforceable against each
Bidder Party in accordance with their terms, subject only to the Bankruptcy and
Equity Exception.
	 
	 	(iv)	 	Non contravention. The execution, delivery and performance by the
Bidder Parties of this Agreement and all of the documents and instruments required
hereby from the Bidder Parties and the consummation of the Offer and other
transactions contemplated hereby and thereby do not and will not (i) violate any
certificate of incorporation, bylaws or other organizational documents of either
Bidder Party, (ii) violate any applicable Law or order applicable to the Bidder
Parties, or (iii) result in the imposition of any encumbrance on any asset of either
Bidder Party. No governmental authorization is required in connection with the
execution and delivery of this Agreement by the Bidder Parties or the consummation by
the Bidder Parties of the transactions contemplated hereby, except for applicable
requirements, if any, under the Exchange Act and any other applicable U.S. state or
federal securities laws.

5.3 The Representations and Warranties of the Bidder Parties will remain in force and will be
deemed as true, complete and accurate at the time of transfer of the Subject Shares to BIDCO
and at the time of settlement of the Offer. For avoidance of doubt, notwithstanding
anything in this Agreement to the contrary, the Representations and Warranties of the Bidder
Parties shall not survive the Offer Closing.

6. Representations and Warranties of the Selling Stockholders

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	 	6.1	 	The Selling Stockholders, jointly and severally, state that the representations and
warranties set forth in clause 6.2 (hereinafter, “Representations and Warranties of the
Selling Stockholders” and, along with the “Representations and Warranties of the Bidder”,
the “Representations and Warranties”) are true, accurate and complete, and do not omit any
fact or circumstance that might alter, limit or condition their content and scope.

	 
	 	6.2	 	The Selling Stockholders hereby, jointly and severally, represent and warrant to the
Bidder Parties that:

	 	(i)	 	Valid/Binding agreement. Assuming the due authorization, execution and
delivery of this Agreement by the Bidder Parties, this Agreement, when duly executed,
will constitute valid and binding agreement of each Selling Stockholder enforceable
against such Selling Stockholder in accordance with its terms, subject only to the
Bankruptcy and Equity Exception.
	 
	 	(ii)	 	Valid existence. Each Selling Stockholder is a duly incorporated company,
validly existing and in good standing under the laws of the jurisdiction under which
such Selling Stockholder is organized, and has full corporate power and authority to
enter into this Agreement and to perform its obligations hereunder.
	 
	 	(iii)	 	Authorization / enforceability. The execution, delivery and performance
by each Selling Stockholder of this Agreement, and all of the documents and instruments
required hereby from each Selling Stockholder and the consummation of the transactions
contemplated hereby and thereby are within the corporate power of such Selling
Stockholder and have been duly authorized by all necessary corporate action of such
Selling Stockholder. Therefore, this Agreement and any other documents or instruments
entered into pursuant to this Agreement shall be enforceable against each Selling
Stockholder in accordance with their terms, subject only to the Bankruptcy and Equity
Exception.
	 
	 	(iv)	 	Non contravention. Except as otherwise disclosed in the Transaction
Agreement and the Company SEC Documents, the execution, delivery and performance by each
Selling Stockholder of this Agreement and the consummation of the transactions

 Page 12

 

	 	 	 	contemplated hereby and thereby do not and will not (i) violate the memorandum and
articles of association (Estatutos) or other organizational documents of such Selling
Stockholder, (ii) violate any applicable law or order applicable to such Selling
Stockholder, or (iii) result in the imposition of any encumbrance on any asset of such
Selling Stockholder. No governmental authorization is required in connection with the
execution and delivery of this Agreement by each Selling Stockholder or the consummation
by such Selling Stockholder of the transactions contemplated hereby, except for
applicable requirements, if any, under the Exchange Act and any other applicable U.S.
state or federal securities laws.

	 	(v)	 	Legal title to and beneficial ownership of the Subject Shares. Each
Company Stockholder is the record or “beneficial owner” of the Subject Shares, free and
clear of any encumbrance and any other limitation or restriction (including any
restriction on the right to vote or
otherwise transfer such Subject Shares), except as provided hereunder, or any
applicable restrictions on transfer under the Securities Act. As of the date hereof,
no Selling Stockholder owns, beneficially or otherwise, any TELVENT Shares other than
the Subject Shares.

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	 	(vi)	 	Absence of Charges or Encumbrances on the Subject Shares. The Subject
Shares are, and shall remain until their transfer to BIDCO, free from any type of
Charges or Encumbrances. For these purposes, “Charges and Encumbrances” shall encompass
any restriction, obligation or defect having a real or personal nature which encumbers:
(i) the title to the Subject Shares, their peaceful enjoyment and full possession; (ii)
the capacity of the Selling Stockholders to freely dispose of the Subject Shares; or
(iii) any other right inherent to their ownership or title. Such term includes without
limitation pledges, usufructs, retention rights, pre-emptive entries in any public
registries, and other charges, restrictions and encumbrances of a real nature, as well
as preferential acquisition rights, rights of first refusal, obligations to offer,
buy-back rights, option rights, limitations on use, disposition or enjoyment, or any
other limitations of rights inherent in the title to the Subject Shares, whether of a
voluntary, legal or contractual nature, or other charges, restrictions or encumbrances
of a personal nature.
	 
	 	(vii)	 	No Knowledge. To the knowledge of the Selling Shareholders, except as
disclosed in the electronic data room made available to the Bidder, none of the Company
SEC Documents, as of their respective filing dates, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.
	 
	 	(viii)	 	Finder’s Fees. No investment banker, broker, finder or other intermediary is
entitled to a fee or commission in connection with the transactions contemplated by this
Agreement based upon any arrangement or agreement made by or on behalf of the Selling
Stockholders other than as disclosed in the Transaction Agreement.

	 	6.3	 	For the purposes of evidencing its record ownership of the Subject Shares, the Selling
Stockholders shall provide the Bidder, no later than ten Business Days from the date of this
Agreement, with a certificate of the Transfer Agent setting forth the number of TELVENT
Shares held of

 Page 14

 

	 	 	 	record by each Company Stockholder as reflected on the shareholder registered
maintained by the Transfer Agent.

	 
	 	6.4	 	The Representations and Warranties of the Selling Stockholders will remain in force and
will be deemed as true, complete and accurate at the time of transfer of the Subject Shares
to BIDCO and at the time of settlement of the Offer. For avoidance of doubt,
notwithstanding anything in this Agreement to the contrary, the Representations and
Warranties of the Selling Stockholders shall not survive the Offer Closing.

7. Indemnity undertaking

	 	7.1	 	The Bidder Parties and the Selling Stockholders shall indemnify each other for any
damages (as defined in clause 7.2) caused to the other Party as a consequence of any
inaccuracy, omission or falsity in the Representations and Warranties above.

	 
	 	7.2	 	For the purposes of this Agreement, “damages” will mean any direct and demonstrable:
loss, damage (expressly excluding consequential damage and loss of probable profit),
detriment, charge, liability, capital loss, fine, surcharge, interest or expense (including
expenses and fees for attorneys, solicitors, notaries public, auditors, accountants, experts
or other professionals).

	 
	 	7.3	 	Indemnity for damages will be calculated on a dollar-for-dollar basis.

8. No Managing Interest.

	 	8.1	 	Until such time as the Bidder Parties shall have acquired the Subject Shares pursuant to
the offer, all rights, ownership and economic benefits of and relating to the Subject Shares
shall remain vested in and belong to the Selling Stockholders, and the Bidder Parties shall
not have any authority to manage, direct, superintend, restrict, regulate, govern, or
administer any of the policies or operations of TELVENT.

9. Term

	 	9.1	 	This Agreement shall enter into force on the date of its execution and shall remain in
force up to the earliest of:

 Page 15

 

	 	(i)	 	the mutual written consent of the Parties;
	 
	 	(ii)	 	the date of settlement of the Offer (if the Subject Shares are acquired in the
Offer as contemplated herein); or
	 
	 	(iii)	 	the termination or expiration of the Offer, without any TELVENT Shares being
accepted for payment thereunder due to the failure of the Offer Conditions to be
satisfied.

10. Termination of the Agreement

10.1
This Agreement will terminate in any of the following circumstances; provided, however
that no such termination shall relieve any party from liability for any breach hereof prior
to such termination:

				
	 	(i)	 	Expiry of the term of the Agreement as set out in clause 9.
	 
	 	(ii)	 	At the choice of the non-defaulting Party where any Party gives the other Parties
written notice of termination of this Agreement due to a serious or repeated breach of
any material obligation or covenant assumed under this agreement (hereinafter, a
“Material Breach”), if
such Material Breach remains uncured or unsolved after thirty (30) calendar days from
the date of delivery of written notice to the breaching Party.

10.2
All the provisions contained in this Agreement which, due to their nature, are called to
remain in force after expiry of the term or termination shall remain in force. In
particular, this provision refers to this clause and to clauses 9 (“Term”), 10 (“Termination
of the Agreement”), 11 (“Confidentiality; Public Announcements”), 13 (“Assignment”), 14
(“Costs and Taxes”), 16 (“Notices”), 17 (“Governing law”) and 18 (“Arbitration”).

11. Confidentiality; Public Announcements

11.1
The terms of this Agreement are strictly private and confidential and should not be
disclosed without the Bidder Parties and the Selling Stockholder’s prior written consent to
any Person other than the Parties’ professional advisors, unless any of the Parties is
otherwise required to

 Page 16

 

	 	 	 	disclose such information in compliance with their legal or regulatory
obligations and subject to clause 11.3 below.

11.2
The Parties will co-ordinate among themselves and with the Company the timing and
contents of (i) any filing with applicable securities regulators (including “hechos
relevantes” and filing with the SEC of a Schedule 13D amendment) in relation to this
Agreement, in compliance with the duties and obligations provided by applicable law, and
(ii) any press release or public announcement with respect to the transactions contemplated
by this Agreement, and shall not issue any such press release or make any such public
statement prior to such consultation, except (A) announcements in connection with the Offer,
(B) as contemplated by the Transaction Agreement, or (C) as may be required by applicable
law, court process or by obligations pursuant to any listing agreement with any national
securities exchange or national securities quotation system (including any rules or
regulations promulgated under the Exchange Act, the Securities Act or the Spanish Securities
Exchange Act).

11.3
The Parties acknowledge and accept that if the Offer is launched, a description of this
Agreement will be provided in the Tender Offer Materials, and that a copy of the Agreement
will be attached as an exhibit to the Schedule TO filed by the Bidder with the SEC.

11.4
The Selling Stockholders agree to keep confidential any non-public information regarding
TELVENT that it has received as a result of its commercial relationships with, or ownership
of, TELVENT for a period of 5 years from the date hereof.

12. Specific Performance

12.1
The Parties hereto acknowledge and agree that (a) the covenants, obligations and
agreements of the Parties pursuant to this Agreement relate to special, unique and
extraordinary matters, (b) the Bidder Parties are and will be relying on such covenants,
obligations and agreements in connection with entering into the Transaction Agreement and
the performance of their obligations under the Transaction Agreement, and (c) a violation of
any of the covenants, obligations or
agreements contained in this Agreement by either party will cause the non-defaulting party
irreparable injury for which adequate remedies

 Page 17

 

	 	 	 	are not available at law. Therefore, the
Parties shall be entitled to an injunction, restraining order or such other equitable
relief (without the requirement to post bond) as a court of competent jurisdiction may deem
necessary or appropriate to restrain the breaching party from committing any violation of
such covenants, obligations or agreements and to specifically enforce the terms of this
Agreement. These injunctive remedies are cumulative and in addition to any other rights
and remedies the Parties may have under applicable law. Notwithstanding the above, and in
application of the relevant provisions of Spanish law it is expressly agreed by the Parties
that: (i) specific performance can only take place when, at the time it is to be granted,
such specific performance is feasible and is being requested in good faith by the Parties
seeking to enforce it (buena fe de exigir); (ii) specific performance will not be granted
when it entails an imposition of a sanction against individual freedom (hacer personal);
and (iii) specific performance will not be granted when its application implies the breach
of an obligation of a third party (e.g. an obligation imposed by the Sellers on the
directors nominated by them to vote in a given sense at a Board meeting which would go
against the duties of directors under the Spanish Corporation Act).

13. Assignment; Third-Party Beneficiaries

	 	13.1	 	No Party shall have the right to assign the rights and obligations arising under this
Agreement without the prior written consent of the other Parties.

	 
	 	13.2	 	No provision of this Agreement is intended to confer any rights, benefits, remedies,
obligations or liabilities hereunder upon any Person, other than the Company with respect to
the provisions of clause 3.4.

14. Costs and taxes

	 	14.1	 	The Parties will bear the costs and taxes derived from negotiating, formalizing and
executing this Agreement, as follows:

	 	(i)	 	All the expenses and costs incurred and directly related to the Offer shall be
borne by the Bidder Parties.

 Page 18

 

	 	(ii)	 	Other fees for advisors, auditors and other professionals will be borne by the
Party that contracted the services in each case.
	 
	 	(iii)	 	Taxes resulting from formalizing and executing this Agreement, if any, will be
borne, in each case, in accordance with applicable Law.

15. Interpretation Standards

	 	15.1	 	Headings. The headings and index used in this Agreement are for reference
purposes only, and will not be deemed to affect its interpretation.

	 
	 	15.2	 	Prevalence. If conflict arises between the clauses of this Agreement and the
content of its Schedules or a supplementary document, the content of the clauses of this
Agreement will prevail.

	 
	 	15.3	 	Severability. The illegality, invalidity or nullity of any clause in this
Agreement will not affect the validity of its other clauses, provided the rights and
obligations of the Parties are not affected in an essential manner. ‘Essential’ is
understood as any situation that seriously prejudices the interests of any of the Parties,
or affects the object of this Agreement as provided in clause 1. Such clauses are to be
replaced or integrated into others that, in accordance with law, correspond to the
objectives of the substituted clause(s).

	 
	 	15.4	 	Entire Agreement. This Agreement constitutes the entire agreement of the Parties
on the date it is entered into, regarding the matters set out in it, and it substitutes and
derogates all other previous agreements relating to its object. All the schedules form an
integral part of this Agreement and have the same validity and effect as if they were
incorporated into the text of this Agreement. Changes to this Agreement are to be made in
writing and signed by the Parties.

	 
	 	15.5	 	Waiver. No waiver by the Parties of any of the rights under this Agreement or
derived from its breach will be deemed to exist, unless the waiver is made expressly in
writing. If any Party waives any of its rights under this Agreement or any breach of this
Agreement by the other Party pursuant to the previous paragraph, this waiver will not be
understood as a waiver of any other right under this Agreement or any

 Page 19

 

	 		 	other breach by the
other Party, even though it may be similar to the waived event.

	 	15.6	 	Amendment of Transaction Agreement. The Bidder Parties agree that they shall not
amend or modify the Transaction Agreement, nor any of the terms thereof, without the prior
written consent of ABENGOA.

16. Notices

	 	16.1	 	Form. All communications and notices made by the Parties pursuant to or relating
to this Agreement must be in writing, using any of the following methods:

	 	(i)	 	personal delivery with written confirmation of receipt by the other Party;
	 
	 	(ii)	 	notarial service;
	 
	 	(iii)	 	registered fax (bureau fax); or
	 
	 	(iv)	 	mail, commercial delivery service, or electronic mail, or by any other means, as
long as, at all times, there is evidence of receipt by the addressee(s).

	 	16.2	 	Designated Addresses for Notices. Communications and notices between the Parties
are to be delivered to the following addresses or fax numbers and to the attention of the
persons indicated:

To SE or BIDCO:

Schneider Electric SA

Address: 35 rue Joseph Monier

92500 Rueil Malmaison

France

Telephone: +33 141 393 062

Fax: +1 401 788 2766

E-mail: peter.wexler@schneider-electric.com

Care of: Peter Wexler, General Counsel

With a copy to:

Debevoise & Plimpton LLP

 Page 20

 

919 Third Avenue

New York, NY 10022

U.S.A.

Telephone: +1 212 909 6000

Fax: +1 212 909 6836

Email : psbird@debevoise.com

   rbetmansour@debevoise.com

Care of: Paul S. Bird

   E. Raman Bet-Mansour

and:

Uria Menendez

Prinicipe de Vergara, 187

Plaza de Rodrigo Uria

28002 — Madrid

Spain

Telephone: +34 915 860 096

Fax: +34 915 860 403

Email: che@uria.com

Care of: Christian Hoedl

To ABENGOA or the Company Stockholders:

Address: calle Energía Solar 1

Campus Palmas Altas

41014 Sevilla, SPAIN

Telephone: +34 954 937 111

Fax: +34 955 641 705

E-mail: majimenez@abengoa.com

Care of: Miguel Angel Jiménez-Velasco Mazarío, Secretary General

With a copy to:

DLA Piper Spain, S.L.

Address: Paseo de la Castellana, 35

28046 Madrid, SPAIN

Telephone: +34 91 319 12 12

Fax: +34 91 319 19 40

E-mail: juan.picon@dlapiper.com

Care of: Juan Picón García de Leániz

 Page 21

 

and:

DLA Piper LLP (US)

Address: 1251 Avenue of the Americas

New York, NY 10020-1104

U.S.A.

Telephone: +1-212-335-4500

Fax: +1-212-335-4501

Care of: Jonathan Klein

   Christopher Paci

	 	16.3	 	Changes. Under this clause, any changes to the addresses or contact persons
indicated to receive notices under this Agreement are to be notified immediately to the
other Parties. If a Party has not received notice of changes, any notice this Party makes in
accordance with these rules to the addresses and persons indicated in this Agreement will be
deemed valid.

17. Governing law

	 	17.1	 	This Agreement will be governed by the laws of Spain.

18. Arbitration

	 	18.1	 	All disputes arising out of or in connection with this Agreement between the Bidder
Parties, on the one hand, and the Selling Stockholders, on the other hand, shall be finally
settled under the Rules of Arbitration of the International Chamber of Commerce by three (3)
arbitrators appointed in accordance with the said Rules. For purposes of appointing
arbitrators in accordance with the said Rules, the Bidder Parties shall be considered one
party and the Selling Stockholders shall be considered the other party. The seat of the
arbitration shall be Madrid (Spain), the language of the arbitration shall be English and in
Spanish the arbitration shall be arbitration in law. For the avoidance of doubt, the
arbitrators shall have authority to grant specific performance in accordance with clause 12
of this Agreement, subject to the limitations therein. The parties submit to jurisdiction in
the Courts of Madrid for the limited purpose of enforcing this agreement to arbitrate.

 Page 22

 

	 	18.2	 	Judgment upon the award may be entered by any court having jurisdiction thereof or having
jurisdiction over the relevant party or its assets.

[Signatures follow]

 Page 23

 

IN WITNESS WHEREOF, the Parties, duly represented, execute and sign this Agreement in five (5)
original copies.

	 	 	 	 	 
	 	SCHNEIDER ELECTRIC, S.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SCHNEIDER ELECTRIC ESPAÑA, S.A.U.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ABENGOA, S.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SIEMA, A.G.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TELVENT CORPORATION, S.L.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 Page 24

 

	 	 	 	 	 

SCHEDULE

	 	 	 

	- Schedule VI

	 	Certain Indebtedness.

 Page 25exv4w1

CERTIFICATE OF DESIGNATIONS

CERTIFICATE OF DESIGNATIONS

OF

7.50% NON-CUMULATIVE PREFERRED SHARES, SERIES B

OF

ENDURANCE SPECIALTY HOLDINGS LTD.

Endurance Specialty Holdings Ltd., a Bermuda exempted company (the “Company”), HEREBY
CERTIFIES that pursuant to resolutions of the board of directors of the Company (the “Board of
Directors”) adopted on May 11, 2011, the creation of the series of 7.50% Non-Cumulative Preferred
Shares, Series B, US$1.00 par value per share, US$25.00 liquidation preference per share (the
“Series B Preferred Shares”), was authorized and the designation, preferences and privileges,
voting rights, relative, participating, optional and other special rights, and qualifications,
limitations and restrictions of the Series B Preferred Shares, in addition to those set forth in
the Memorandum of Association (“Memorandum of Association”) and amended and restated Bye-Laws (as
amended and restated from time to time, the “Bye-Laws”) of the Company, were fixed as follows:

SECTION 1. DESIGNATION. The distinctive serial designation of the Series B Preferred Shares
is “7.50% Non-Cumulative Preferred Shares, Series B.” Each share of the Series B Preferred Shares
shall be identical in all respects to every other share of Series B Preferred Shares, except as to
the respective dates from which dividends thereon shall accrue, to the extent such dates may differ
as permitted pursuant to Section 4(a) below.

SECTION 2. NUMBER OF SHARES. The authorized number of shares of Series B Preferred Shares
shall be 9,200,000. Shares of Series B Preferred Shares that are redeemed, purchased or otherwise
acquired by the Company shall be cancelled.

SECTION 3. DEFINITIONS. As used herein with respect to Series B Preferred Shares:

(a) “Business Day” means a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is
not a day on which banking institutions in New York City generally are authorized or obligated by
law or executive order to close.

(b) “Certificate of Designations” means this Certificate of Designations relating to the
Series B Preferred Shares, as it may be amended from time to time.

(c) “Class A Shares” means the Class A Shares, par value US$1.00 per share, of the Company.

 

 

 

(d) “Commission” means the U.S. Securities and Exchange Commission.

(e) “Companies Act” means the Companies Act 1981 of Bermuda, as amended.

(f) “Dividend Payment Date” has the meaning specified in Section 4(a).

(g) “Dividend Period” has the meaning specified in Section 4(a).

(h) “Dividend Record Date” has the meaning specified in Section 4(a).

(i) “Junior Shares” means the Ordinary Shares, the Class A Shares and any other class or
series of shares of the Company that ranks junior to the Series B Preferred Shares either as to the
payment of dividends (whether such dividends are cumulative or non-cumulative) or as to the
distribution of assets upon any liquidation, dissolution or winding-up of the Company.

(j) “Liquidation Preference” has the meaning specified in Section 6(b).

(k) “Nonpayment Event” has the meaning specified in Section 8(b).

(l) “Ordinary Shares” means the Ordinary Shares, par value $1.00 per share, of the Company.

(m) “Parity Shares” means any other class or series of shares of the Company that ranks
equally with the Series B Preferred Shares in both the payment of dividends (whether such dividends
are cumulative or non-cumulative) and in the distribution of assets on any liquidation, dissolution
or winding-up of the Company. As of the date hereof, the Company’s 7.75% Non-Cumulative Preferred
Shares, Series A, US$1.00 par value per share, US$25.00 liquidation preference per share, comprise
the only class of the Company’s shares that constitute Parity Shares.

(n) “Preferred Shares” means any and all series of preference shares of the Company, including
the Series B Preferred Shares.

(o) “Preferred Shares Directors” has the meaning specified in Section 8(b).

(p) “Taxing Jurisdiction” has the meaning specified in Section 5(a).

(q) “Voting Preferred Shares” means, with regard to any election or removal of a Preferred
Shares Director or any other matter as to which the holders of Series B Preferred Shares are
entitled to vote as specified in Section 8 of this Certificate of Designations, any and all series
of Parity Shares upon which like voting rights have been conferred and are exercisable with respect
to such matter.

 

2

 

SECTION 4. DIVIDENDS.

(a) RATE. Holders of Series B Preferred Shares shall be entitled to receive, only when, as
and if declared by the Board of Directors or a duly authorized committee of the
Board of Directors, out of lawfully available funds for the payment of dividends under Bermuda
law, non-cumulative cash dividends at the annual rate of 7.50% applied to the liquidation
preference amount of US$25.00 per share of Series B Preferred Shares. Such dividends shall be
payable quarterly in arrears (as provided below in this Section 4(a)), but only when, as and if
declared by the Board of Directors or a duly authorized committee of the Board of Directors, on
March 15, June 15, September 15 and December 15 of each year (each, a “Dividend Payment Date”),
commencing on September 15, 2011; provided that if any such Dividend Payment Date would otherwise
occur on a day that is not a Business Day, such Dividend Payment Date shall instead be (and any
dividend payable on the Series B Preferred Shares on such Dividend Payment Date shall instead be
payable on) the immediately succeeding Business Day.

Dividends, if so declared, that are payable on Series B Preferred Shares on any Dividend
Payment Date will be payable to holders of record of Series B Preferred Shares as they appear on
the share register of the Company on the applicable record date, which shall be the 15th calendar
day before such Dividend Payment Date or such other record date fixed by the Board of Directors or
a duly authorized committee of the Board of Directors that is not more than 60 nor less than 10
days prior to such Dividend Payment Date (each, a “Dividend Record Date”). Any such day that is a
Dividend Record Date shall be a Dividend Record Date whether or not such day is a Business Day.

Each dividend period (a “Dividend Period”) shall commence on and include a Dividend Payment
Date (other than the initial Dividend Period, which shall commence on and include the date of
original issue of the Series B Preferred Shares, provided that, for any share of Series B Preferred
Shares issued after such original issue date, the initial Dividend Period for such shares may
commence on and include such other date as the Board of Directors or a duly authorized committee of
the Board of Directors shall determine and publicly disclose at the time such additional shares are
issued) and shall end on and include the calendar day preceding the next Dividend Payment Date.
Dividends payable on the Series B Preferred Shares in respect of any Dividend Period shall be
computed on the basis of a 360-day year consisting of twelve 30-day months, except that dividends
for the initial Dividend Period will be calculated based upon the actual number of calendar days
from the original issue date to the calendar day preceding the first Dividend Payment Date, divided
by a 360 day year. Dividends payable in respect of a Dividend Period shall be payable in arrears
(i.e., on the first Dividend Payment Date after such Dividend Period).

Dividends on the Series B Preferred Shares shall be non-cumulative. Accordingly, if the Board
of Directors or a duly authorized committee of the Board of Directors does not declare a dividend
on the Series B Preferred Shares payable in respect of any Dividend Period before the related
Dividend Payment Date, in full or otherwise, then such undeclared dividends shall not cumulate and
will not accrue and will not be payable and the Company shall have no obligation to pay such
undeclared dividends for the applicable Dividend Period on the related Dividend Payment Date or at
any future time or to pay interest with respect to such dividends, whether or not dividends are
declared on Series B Preferred Shares or any other preference shares the Company may issue in the
future.

 

3

 

Holders of Series B Preferred Shares shall not be entitled to any dividends or other
distributions, whether payable in cash, securities or other property, other than dividends (if
any) declared and payable on the Series B Preferred Shares as specified in this Section 4
(subject to the other provisions of this Certificate of Designations).

(b) PRIORITY OF DIVIDENDS. So long as any Series B Preferred Shares remain outstanding for
any Dividend Period, unless the full dividends for the latest completed Dividend Period on all
outstanding Series B Preferred Shares and any Parity Shares have been declared and paid (or
declared and a sum sufficient for the payment thereof has been set aside), (1) no dividend shall be
declared or paid on the Ordinary Shares, Class A Shares or any other Junior Shares (other than a
dividend payable solely in Junior Shares), and (2) no Ordinary Shares, Class A Shares or other
Junior Shares shall be purchased, redeemed or otherwise acquired for consideration by the Company,
directly or indirectly (other than (i) as a result of a reclassification of Junior Shares for or
into other Junior Shares, or the exchange or conversion of one Junior Share for or into another
Junior Share, (ii) through the use of the proceeds of a substantially contemporaneous sale of
Junior Shares and (iii) as permitted by the Bye-Laws in effect on the date of issuance of the
Series B Preferred Shares).

When dividends are not paid (or declared and a sum sufficient for payment thereof set aside)
in full on any Dividend Payment Date (or, in the case of Parity Shares having dividend payment
dates different from the Dividend Payment Dates, on a dividend payment date falling within a
Dividend Period) upon the Series B Preferred Shares and any Parity Shares, all dividends declared
by the Board of Directors or a duly authorized committee thereof on the Series B Preferred Shares
and all such Parity Shares and payable on such Dividend Payment Date (or, in the case of Parity
Shares having dividend payment dates different from the Dividend Payment Dates, on a dividend
payment date falling within the Dividend Period related to such Dividend Payment Date) shall be
declared by the Board of Directors or such committee of the Board of Directors pro rata so that the
respective amounts of such dividends shall bear the same ratio to each other as all declared but
unpaid dividends per share on the Series B Preferred Shares and all Parity Shares payable on such
Dividend Payment Date (or, in the case of Parity Shares having dividend payment dates different
from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period
related to such Dividend Payment Date) bear to each other.

(c) RESTRICTIONS ON PAYMENT OF DIVIDENDS. Pursuant to and subject to the Companies Act, the
Company may not lawfully declare or pay a dividend if the Company has reasonable grounds for
believing that the Company is, and would after payment of the dividend be, unable to pay its
liabilities as they become due, or that the realizable value of the Company’s assets would, after
payment of the dividend, be less than the aggregate value of the Company’s liabilities, issued
share capital and share premium accounts.

 

4

 

SECTION 5. PAYMENT OF ADDITIONAL AMOUNTS.

(a) The Company will make all payments on the Series B Preferred Shares free and clear of and
without withholding or deduction at source for, or on account of, any present or future taxes,
fees, duties, assessments or governmental charges of whatever nature imposed or levied by or on
behalf of Bermuda or any other jurisdiction in which the Company is organized (a “Taxing
Jurisdiction”) or any political subdivision or taxing authority thereof or therein, unless such
taxes, fees, duties, assessments or governmental charges are required to be
withheld or deducted by (x) the laws (or any regulations or rulings promulgated thereunder) of
a Taxing Jurisdiction or any political subdivision or taxing authority thereof or therein or (y) an
official position regarding the application, administration, interpretation or enforcement of any
such laws, regulations or rulings (including, without limitation, a holding by a court of competent
jurisdiction or by a taxing authority in a Taxing Jurisdiction or any political subdivision
thereof). If a withholding or deduction at source is required, the Company will, subject to
certain limitations and exceptions described below, pay to the holders of the Series B Preferred
Shares such additional amounts as dividends as may be necessary so that every net payment made to
such holders, after the withholding or deduction, will not be less than the amount provided for in
Section 4(a) to be then due and payable.

(b) The Company will not be required to pay any additional amounts for or on account of:

(i) any tax, fee, duty, assessment or governmental charge of whatever nature that would
not have been imposed but for the fact that such holder was a resident, domiciliary or
national of, or engaged in business or maintained a permanent establishment or was
physically present in, the relevant taxing jurisdiction or any political subdivision thereof
or otherwise had some connection with the relevant taxing jurisdiction other than by reason
of the mere ownership of, or receipt of payment under, such Series B Preferred Shares or any
Series B Preferred Shares presented for payment more than 30 days after the Relevant Date.
The “Relevant Date” means, in respect of any payment, the date on which such payment first
becomes due and payable, but if the full amount of the moneys payable has not been received
by the dividend disbursing agent on or prior to such due date, it means the first date on
which, the full amount of such moneys having been so received and being available for
payment to holders, notice to that effect shall have been duly given to the holders of the
Series B Preferred Shares;

(ii) any estate, inheritance, gift, sale, transfer, personal property or similar tax,
assessment or other governmental charge or any tax, assessment or other governmental charge
that is payable otherwise than by withholding or deduction from payment of the liquidation
preference;

(iii) any tax, fee, duty, assessment or other governmental charge that is imposed or
withheld by reason of the failure by the holder of such Series B Preferred Shares to comply
with any reasonable request by the Company addressed to the holder within 90 days of such
request (a) to provide information concerning the nationality, residence or identity of the
holder or (b) to make any declaration or other similar claim or satisfy any information or
reporting requirement, which is required or imposed by statute, treaty, regulation or
administrative practice of the relevant Taxing Jurisdiction or any political subdivision
thereof as a precondition to exemption from all or part of such tax, fee, duty, assessment
or other governmental charge;

(iv) any withholding or deduction required to be made pursuant to any EU Directive on
the taxation of savings implementing the conclusions of the ECOFIN Council meetings of 26-27
November 2000, 3 June 2003 or any law implementing or complying with, or introduced in order
to conform to, such EU Directive; or

(v) any combination of items (i), (ii), (iii) and (iv).

 

5

 

(c) In addition, the Company will not pay additional amounts with respect to any payment on
any such Series B Preferred Shares to any holder who is a fiduciary, partnership, limited liability
company or other pass-through entity other than the sole beneficial owner of such Series B
Preferred Shares if such payment would be required by the laws of the relevant taxing jurisdiction
(or any political subdivision or relevant taxing authority thereof or therein) to be included in
the income for tax purposes of a beneficiary or partner or settlor with respect to such fiduciary
or a member of such partnership, limited liability company or other pass-through entity or a
beneficial owner to the extent such beneficiary, partner or settlor would not have been entitled to
such additional amounts had it been the holder of the Series B Preferred Shares.

SECTION 6. LIQUIDATION RIGHTS.

(a) VOLUNTARY OR INVOLUNTARY LIQUIDATION. In the event of any liquidation, dissolution or
winding-up of the affairs of the Company, whether voluntary or involuntary, holders of Series B
Preferred Shares and any Parity Shares shall be entitled to receive, out of the assets of the
Company or proceeds thereof (whether capital or surplus) available for distribution to shareholders
of the Company, after satisfaction of all liabilities and obligations to creditors of the Company,
if any, but before any distribution of such assets or proceeds is made to or set aside for the
holders of Ordinary Shares, Class A Shares and any other Junior Shares, in full an amount equal to
US$25.00 per Series B Preferred Share, plus any declared and unpaid dividends.

(b) PARTIAL PAYMENT. If in any distribution described in Section 6(a) above, the assets of
the Company or proceeds thereof are not sufficient to pay the Liquidation Preferences (as defined
below) in full to all holders of Series B Preferred Shares and all holders of any Parity Shares,
the amounts paid to the holders of Series B Preferred Shares and to the holders of all such other
Parity Shares shall be paid pro rata in accordance with the respective aggregate Liquidation
Preferences of the holders of Series B Preferred Shares and the holders of all such other Parity
Shares but only to the extent the Company has assets or proceeds thereof available after
satisfaction of all liabilities to creditors. In any such distribution, the “Liquidation
Preference” of any holder of Preferred Shares of the Company shall mean the amount otherwise
payable to such holder in such distribution (assuming no limitation on the assets of the Company
available for such distribution), including any declared and unpaid dividends (and, in the case of
any holder of shares other than Series B Preferred Shares and on which dividends accrue on a
cumulative basis, an amount equal to any unpaid, accrued cumulative dividends, whether or not
declared, as applicable).

(c) RESIDUAL DISTRIBUTIONS. If the Liquidation Preference has been paid in full to all
holders of Series B Preferred Shares and any holders of Parity Shares, the holders of other shares
of the Company shall be entitled to receive all remaining assets of the Company (or proceeds
thereof) according to their respective rights and preferences.

(d) MERGER, CONSOLIDATION AND SALE OF ASSETS NOT LIQUIDATION. For purposes of this Section 6,
the consolidation, amalgamation, merger, arrangement, reincorporation, de-registration or
reconstruction involving the Company or the
sale or transfer of all or substantially all of the shares or the property or business of the
Company shall not constitute a liquidation, dissolution or winding-up.

 

6

 

SECTION 7. REDEMPTION.

(a) OPTIONAL REDEMPTION.

(1) The Series B Preferred Shares may not be redeemed by the Company prior to June 1, 2016,
subject to the exceptions set forth in Section 7(a)(2) and Section 7(f). On or after June 1, 2016,
the Company, at its option, may redeem, in whole at any time or in part from time to time, the
shares of Series B Preferred Shares at the time outstanding, upon notice given as provided in
Section 7(c) below, at a redemption price equal to US$25.00 per share, together (except as
otherwise provided herein below) with an amount equal to any dividends that have been declared but
not paid prior to the redemption date (but with no amount in respect of any dividends that have not
been declared prior to such date). The redemption price for any shares of Series B Preferred
Shares shall be payable on the redemption date to the holder of such shares against book entry
transfer or surrender of the certificate(s) evidencing such shares to the Company or its agent.
Any declared but unpaid dividends payable on a redemption date that occurs subsequent to the
Dividend Record Date for a Dividend Period shall not be paid to the holder entitled to receive the
redemption price on the redemption date, but rather shall be paid to the holder of record of the
redeemed shares on such Dividend Record Date relating to the Dividend Payment Date as provided in
Section 4 above.

Prior to delivering notice of redemption as provided below, the Company will file with its
corporate records a certificate signed by one of the Company’s officers affirming the Company’s
compliance with the redemption provisions under the Companies Act relating to the Series B
Preferred Shares, and stating that there are reasonable grounds for believing that the Company is,
and after the redemption will be, able to pay its liabilities as they become due and that the
redemption will not render the Company insolvent or cause it to breach any provision of applicable
Bermuda law or regulation. The Company will mail a copy of this certificate with the notice of any
redemption.

(2) At any time prior to June 1, 2016, if the Company shall have submitted to the holders of
Ordinary Shares a proposal for an amalgamation, consolidation, merger, arrangement, reconstruction,
reincorporation, deregistration or any other similar transaction involving the Company that
requires, or the Company shall have submitted any proposal for any other matter that, as a result
of any change in Bermuda law after such Series B Preferred Shares are issued (whether by enactment
or official interpretation), that requires, in either case, a vote of the holders of the Series B
Preferred Shares at the time outstanding, voting separately as a single class (alone or with one
or more other classes or series of preference shares), the Company shall have the option, by not
less than 30 days nor more than 60 days prior written notice, to the relevant holders, in such form
and given in such manner as to be in accordance with paragraph (c) below, to redeem all and not
less than all of the outstanding Series B Preferred Shares pursuant to this clause for cash at a
redemption price of US$26.00 per share being redeemed, plus all declared and unpaid dividends, if
any, to the date of redemption, without interest on such unpaid dividends.

 

7

 

(b) NO SINKING FUND. The Series B Preferred Shares will not be subject to any mandatory
redemption, sinking fund, retirement fund or purchase fund or other similar provisions. Holders of
Series B Preferred Shares will have no right to require redemption, repurchase or retirement of any
shares of Series B Preferred Shares.

(c) NOTICE OF REDEMPTION. Notice of every redemption of Series B Preferred Shares shall be
given by first class mail, postage prepaid, addressed to the holders of record of the shares to be
redeemed at their respective last addresses appearing on the share register of the Company. Such
mailing shall be at least 30 days and not more than 60 days before the date fixed for redemption.
Any notice mailed as provided in this subsection shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice, but failure duly to give such notice by
mail, or any defect in such notice or in the mailing thereof, to any holder of Series B Preferred
Shares designated for redemption shall not affect the validity of the proceedings for the
redemption of any other Series B Preferred Shares. Notwithstanding the foregoing, if the Series B
Preferred Shares or any depositary shares representing interests in the Series B Preferred Shares
are issued in book-entry form through The Depository Trust Company or any other similar facility,
notice of redemption may be given to the holders of Series B Preferred Shares at such time and in
any manner permitted by such facility. Each such notice given to a holder shall state: (1) the
redemption date; (2) the number of Series B Preferred Shares to be redeemed and, if less than all
the Series B Preferred Shares held by such holder are to be redeemed, the number of such Series B
Preferred Shares to be redeemed from such holder; (3) the redemption price; and (4) that the Series
B Preferred Shares should be delivered via book entry transfer or the place or places where
certificates for such Series B Preferred Shares are to be surrendered for payment of the redemption
price.

(d) PARTIAL REDEMPTION. In case of any redemption of only part of the Series B Preferred
Shares at the time outstanding, the shares to be redeemed shall be selected either pro rata or in
such other manner as the Company may determine to be fair and equitable. Subject to the provisions
hereof, the Company shall have full power and authority to prescribe the terms and conditions upon
which Series B Preferred Shares shall be redeemed from time to time. If fewer than all the shares
represented by any certificate are redeemed, a new certificate shall be issued representing the
unredeemed shares without charge to the holder thereof.

(e) EFFECTIVENESS OF REDEMPTION. If notice of redemption has been duly given and if on or
before the redemption date specified in the notice all funds necessary for the redemption have been
set aside by the Company, separate and apart from its other funds, in trust for the pro rata
benefit of the holders of the Series B Preferred Shares called for redemption, so as to be and
continue to be available therefor, then, notwithstanding that any certificate for any share so
called for redemption has not been surrendered for cancellation or transferred via book entry, on
and after the redemption date, no further dividends will be declared on all shares so called for
redemption, all shares so called for redemption shall no longer be deemed outstanding and all
rights with respect to such shares shall forthwith on such redemption date cease and terminate,
except only the right of the holders thereof to receive the amount payable on such redemption,
without interest.

 

8

 

(f) TAX REDEMPTION. (1) If as a result of a “change in tax law” there is a substantial
probability that the Company or any successor company would be required to pay
additional amounts with respect to the Series B Preferred Shares on the next succeeding
Dividend Payment Date, and the payment of those additional amounts cannot be avoided by the use of
any reasonable measures available to the Company or any successor company, the Company shall be
entitled at any time thereafter, by not less than 30 days nor more than 60 days prior written
notice to the relevant holders of the Series B Preferred Shares, to redeem any or all Series B
Preferred Shares pursuant to this clause for cash at a redemption price of US$25.00 per share being
redeemed, plus all declared and unpaid dividends, if any, to the date of redemption, without
interest on such unpaid dividends. For the purposes of this provision, a “change in tax law” shall
be (a) a change in or amendment to laws, regulations or rulings of any jurisdiction, political
subdivision or taxing authority described in the next sentence, (b) a change in the official
application or interpretation of those laws, regulations or rulings, (c) any execution of or
amendment to any treaty affecting taxation to which any jurisdiction, political subdivision or
taxing authority described in the next sentence is party or (d) a decision rendered by a court of
competent jurisdiction in Bermuda or any taxing jurisdiction or any political subdivision, whether
or not such decision was rendered with respect to the Company, in each case described in clauses
(a) – (d) above, occurring after May 24, 2011. The jurisdictions, political subdivisions and
taxing authorities referred to in the previous sentence are (a) Bermuda or any political
subdivision or governmental authority of or in Bermuda with the power to tax, (b) any jurisdiction
from or through which the Company or its dividend disbursing agent is making payments on the Series
B Preferred Shares or any political subdivision or governmental authority of or in that
jurisdiction with the power to tax, or (c) any other jurisdiction in which the Company or its
successor company is organized or generally subject to taxation or any political subdivision or
governmental authority of or in that jurisdiction with the power to tax.

(2) If there is a substantial probability that the entity formed by a consolidation, merger or
amalgamation involving the Company or the entity to which the Company conveys, transfers or leases
substantially all of its properties and assets will be required to pay additional amounts in
respect of any tax, assessment or governmental charge imposed on any holder of Series B Preferred
Shares as a result of a change in tax law that occurred after the date of the consolidation,
merger, amalgamation, conveyance, transfer or lease, and the payment of those additional amounts
cannot be avoided by the use of any reasonable measures available to the Company or any successor
company, the Company shall be entitled at any time thereafter by not less than 30 days nor more
than 60 days prior written notice to the relevant holders of Series B Preferred Shares, in such
form and given in such manner as in accordance with paragraph (c) above, to redeem any or all
Series B Preferred Shares pursuant to this clause for cash at a redemption price of US$25.00 per
share being redeemed, plus all declared and unpaid dividends, if any, to the date of redemption,
without interest on such unpaid dividends.

 

9

 

SECTION 8. VOTING RIGHTS.

(a) GENERAL. The holders of Series B Preferred Shares shall not have any voting rights except
as set forth below or as otherwise from time to time required by law.

(b) RIGHT TO ELECT TWO DIRECTORS UPON NONPAYMENT EVENTS. If and whenever dividends on any
Series B Preferred Shares shall not have been declared and paid for the equivalent of at least six
Dividend Periods, whether or not consecutive
(a “Nonpayment Event”), the holders of Series B Preferred Shares, together with the holders of
any outstanding shares of Voting Preferred Shares, voting together as a single class, shall be
entitled to elect two additional directors to the board of directors of the Company (the “Preferred
Shares Directors”), provided that it shall be a qualification for election for any such Preferred
Shares Director that the election of such director shall not cause the Company to violate the
corporate governance requirements of the U.S. Securities and Exchange Commission or the New York
Stock Exchange (or any other securities exchange or other trading facility on which securities of
the Company may then be listed or traded) that listed or traded companies must have a majority of
independent directors. Each Preferred Shares Director will be added to an already existing class
of directors. The number of Preferred Shares Directors on the Board of Directors shall never be
more than two at any one time.

In the event that the holders of the Series B Preferred Shares, and any such other holders of
Voting Preferred Shares, shall be entitled to vote for the election of the Preferred Shares
Directors following a Nonpayment Event, such directors shall be initially elected following such
Nonpayment Event only at a special meeting called at the request of the holders of record of at
least 20% of the aggregate voting power of the Series B Preferred Shares or of any other such
series of Voting Preferred Shares then outstanding (unless such request for a special meeting is
received less than 90 days before the date fixed for the next annual or special meeting of the
shareholders of the Company, in which event such election shall be held only at such next annual or
special general meeting of shareholders), and at each subsequent annual general meeting of
shareholders of the Company, so long as the rights related to a Nonpayment Event remain in effect.
Such request to call a special general meeting for the initial election of the Preferred Shares
Directors after a Nonpayment Event shall be made by written notice, signed by the requisite holders
of Series B Preferred Shares or Voting Preferred Shares, and delivered to the Secretary of the
Company in person, by first class mail, by any manner as permitted in the Bye-laws or by any other
manner as permitted by Bermuda law. Each Preferred Shares Director will be added to an already
existing class of directors. The number of Preferred Share Directors shall never be more than two
at any one time.

When dividends have been paid (or declared and a sum sufficient for payment thereof set aside)
in full on the Series B Preferred Shares for at least four Dividend Periods (whether or not
consecutive) after a Nonpayment Event, then the right of the holders of Series B Preferred Shares
to elect the Preferred Shares Directors shall cease (but subject always to revesting of such voting
rights in the case of any future Nonpayment Event pursuant to this Section 8) and the number of
Dividend Periods in which dividends have not been declared and paid shall be reset to zero, and, if
and when any rights of holders of Series B Preferred Shares and Voting Preferred Shares to elect
the Preferred Shares Directors shall have ceased, the terms of office of all the Preferred Shares
Directors shall forthwith terminate and the number of directors constituting the Board of Directors
shall automatically be reduced accordingly. In determining whether dividends have been paid for
four Dividend Periods following a Nonpayment Event, the Company may take account of any dividends
it elects to pay for such a Dividend Period after the regular Dividend Payment Date for that period
has passed.

 

10

 

Any Preferred Shares Director may be removed at any time without cause by the holders of
record of a majority of the aggregate voting power, as determined by the Bye-laws of the Company,
of Series B Preferred Shares and Voting Preferred Shares then outstanding (voting
together as a single class), when they have the voting rights described above. Until the
right of the holders of Series B Preferred Shares and any Voting Preferred Shares to elect the
Preferred Shares Directors shall cease, any vacancy in the office of a Preferred Shares Director
(other than prior to the initial election of Preferred Shares Directors after a Nonpayment Event)
may be filled by the written consent of the Preferred Shares Director remaining in office, or if
none remains in office, by a vote of the holders of record of a majority of the outstanding shares
of the Series B Preferred Shares and any Voting Preferred Shares (voting together as a single
class), when they have the voting rights described above. Any such vote of holders of Series B
Preferred Shares and Voting Preferred Shares to remove, or to fill a vacancy in the office of, a
Preferred Shares Director may be taken only at a special meeting of such shareholders, called as
provided above for an initial election of Preferred Shares Directors after a Nonpayment Event
(unless such request is received less than 90 days before the date fixed for the next annual or
special general meeting of the shareholders of the Company, in which event such election shall be
held at such next annual or special general meeting of shareholders). The Preferred Shares
Directors shall each be entitled to one vote per director on any matter that shall come before the
Board of Directors for a vote, unless otherwise adjusted pursuant to the Bye-Laws. Each Preferred
Shares Director elected at any special general meeting of shareholders of the Company or by written
consent of the other Preferred Shares Director shall hold office until the next annual general
meeting of the shareholders of the Company if such office shall not have previously terminated as
above provided.

(c) VARIATION OF RIGHTS. Any or all of the special rights of the Series B Preferred Shares
may be altered or abrogated with the consent in writing of the holders of not less than
seventy-five percent (75%) of the issued shares of that class or with the sanction of a resolution
passed at a separate general meeting of the holders of such shares voting in person or proxy. The
necessary quorum requirements for the separate general meeting shall be two or more persons holding
or representing by proxy more than fifty percent (50%) of the aggregate voting power of the shares
of the relevant class. The rights attaching to or the terms of issue of such shares or class of
shares, as the case may be, shall not be deemed to be altered by (i) the creation or issue of
further shares ranking pari passu therewith; (ii) the creation or issue for full value (as
determined by the Board of Directors) of further shares ranking as regards participation in profits
or assets of the Company or otherwise in priority to them; or (iii) the purchase or redemption by
the Company of any of its own shares.

(d) CHANGES FOR CLARIFICATION. Without the consent of the holders of the Series B Preferred
Shares, so long as such action does not affect the special rights, preferences, privileges and
voting powers, and limitations and restrictions, of the Series B Preferred Shares taken as a whole,
the Company may amend, alter, supplement or repeal any terms of the Series B Preferred Shares:

(i) to cure any ambiguity, or to cure, correct or supplement any provision contained in
this Certificate of Designations that may be defective or inconsistent; or

(ii) to make any provision with respect to matters or questions arising with respect to
the Series B Preferred Shares that is not inconsistent with the provisions of this
Certificate of Designations.

 

11

 

(e) CHANGES AFTER PROVISION FOR REDEMPTION. No vote or consent of the holders of Series B
Preferred Shares shall be required pursuant to Section 8(b), (c) or (d) above if, at or prior to
the time when the act with respect to which such vote or consent would otherwise be required
pursuant to such Section shall be effected, all outstanding Series B Preferred Shares shall have
been redeemed, or shall have been called for redemption upon proper notice and sufficient funds
shall have been set aside by the Company for such redemption, in each case pursuant to Section 7
above.

(f) PROCEDURES FOR VOTING AND CONSENTS. The rules and procedures for calling and conducting
any meeting of the holders of Series B Preferred Shares (including, without limitation, the fixing
of a record date in connection therewith), the solicitation and use of proxies at such a meeting,
the obtaining of written consents and any other aspect or matter with regard to such a meeting or
such consents shall be governed by any rules the Board of Directors or a duly authorized committee
of the Board of Directors, in its discretion, may adopt from time to time, which rules and
procedures shall conform to the requirements of the Memorandum of Association, the Bye-Laws,
applicable law and any national securities exchange or other trading facility on which the Series B
Preferred Shares is listed or traded at the time. Whether the vote or consent of the holders of a
plurality, majority or other portion of the shares of Series B Preferred Shares and any Voting
Preferred Shares has been cast or given on any matter on which the holders of shares of Series B
Preferred Shares are entitled to vote shall be determined by the Company by reference to the
aggregate voting power, as determined by the Bye-laws of the Company, of the shares voted or
covered by the consent.

 

12

 

SECTION 9. RANKING. The Series B Preferred Shares will, with respect to the payment of
dividends and distributions of assets upon liquidation, dissolution and winding-up, rank senior to
Junior Shares and pari passu with any Parity Shares of the Company, including other series of
Preferred Shares of the Company that the Company may issue from time to time in the future.

SECTION 10. RECORD HOLDERS. To the fullest extent permitted by applicable law, the Company
and the transfer agent for the Series B Preferred Shares may deem and treat the record holder of
any share of Series B Preferred Shares as the true and lawful owner thereof for all purposes, and
neither the Company nor such transfer agent shall be affected by any notice to the contrary.

SECTION 11. NOTICES. All notices or communications in respect of Series B Preferred Shares
shall be sufficiently given if given in writing and delivered in person or by first class mail,
postage prepaid, or if given in such other manner as may be permitted in this Certificate of
Designations, Bye-Laws or by applicable law.

SECTION 12. NO PREEMPTIVE RIGHTS. No share of Series B Preferred Shares shall have any rights
of preemption whatsoever as to any securities of the Company, or any warrants, rights or options
issued or granted with respect thereto, regardless of how such securities, or such warrants, rights
or options, may be designated, issued or granted.

SECTION 13. OTHER RIGHTS. The shares of Series B Preferred Shares shall not have any voting
powers, preferences or relative, participating, optional or other special rights, or
qualifications, limitations or restrictions thereof, other than as set forth herein or in the
Memorandum of Association, Bye-laws or as provided by applicable law.

 

13

 

IN WITNESS WHEREOF, ENDURANCE SPECIALTY HOLDINGS LTD. has caused this certificate to be signed
by John V. Del Col, its General Counsel and Secretary, this 1st day of June, 2011.

	 	 	 	 	 
	 	ENDURANCE SPECIALTY HOLDINGS LTD

 	 
	 	By:  	/s/ John V. Del Col
 	 
	 	 	Name:  	John V. Del Col 	 
	 	 	Title:  	General Counsel and Secretary 	 

 

14

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