Document:

Exhibit
4.2

     

    
      

      

    

    FIRST
SUPPLEMENTAL INDENTURE

     

    Dated
as of May 27, 2008

    

     

     

    

     

     

    between

     

    PARTNERRE
FINANCE A LLC,

    Issuer

     

     

     

     

    PARTNERRE
LTD.,

    Guarantor

     

     

     

    to

    

     

     

    THE
BANK OF NEW YORK

    Trustee

     

    
      

      
        

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
OF CONTENTS

     

    Page

    
      	
              ARTICLE
      1

            
	
              Definitions

            
	 	 
	
              Section
      1.01.  Definitions
      of Terms

            	
              1

            
	 	 
	
              ARTICLE
      2

            
	
              General Terms and
      Conditions of the Notes

            
	 	 
	
              Section
      2.01.  Designation
      and Principal Amount

            	
              4

            
	
              Section
      2.02.  Maturity

            	
              4

            
	
              Section
      2.03.  Form
      and Payment

            	
              4

            
	
              Section
      2.04.  Interest

            	
              5

            
	
              Section
      2.05.  No
      Payment of Additional Amounts

            	
              5

            
	 	 
	
              ARTICLE
      3

            
	
              Redemption of the
      Notes

            
	 	 
	
              Section
      3.01.  Redemption

            	
              6

            
	
              Section
      3.02.  Redemption
      Procedure for Notes

            	
              6

            
	
              Section
      3.03.  Payment
      of Securities Called for Redemption

            	
              6

            
	 	 
	
              ARTICLE
      4

            
	
              No Sinking
      Fund

            
	 	 
	
              Section
      4.01.  No
      Sinking Fund

            	
              7

            
	 	 
	
              ARTICLE
      5

            
	
              Form of
      Note

            
	 	 
	
              Section
      5.01.  Form
      of Note

            	
              7

            
	 	 
	
              ARTICLE
      6

            
	
              Original Issue of
      Notes

            
	 	 
	
              Section
      6.01.  Original
      Issue of Notes

            	
              11

            
	 	 
	
              ARTICLE
      7

            
	
              Covenants

            
	 	 
	
              Section
      7.01.  Activities
      of the Company

            	
              12

            
	
              Section
      7.02.  Use
      of Proceeds

            	
              12

            
	
              Section
      7.03.  Proper
      Records

            	
              12

            
	
              Section
      7.04.  Compliance
      with Laws

            	
              12

            
	
              Section
      7.05.  Liens

            	
              12

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
      8

            
	
              Ranking

            
	 	 
	
              Section
      8.01.  Ranking

            	
              13

            
	 	 
	
              ARTICLE
      9

            
	
              Miscellaneous

            
	 	 
	
              Section
      9.01.  Ratification
      of Indenture

            	
              13

            
	
              Section
      9.02.  Trustee
      Not Responsible for Recitals

            	
              13

            
	
              Section
      9.03.  Governing
      Law

            	
              13

            
	
              Section
      9.04.  Separability

            	
              14

            
	
              Section
      9.05.  Counterparts

            	
              14

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    FIRST
SUPPLEMENTAL INDENTURE, dated as of May 27, 2008 (the “First Supplemental
Indenture”), among PartnerRe Finance A LLC, a limited liability company
duly organized and existing under the laws of the State of Delaware (the “Company”), PartnerRe Ltd., a
company duly organized and existing under the Laws of Bermuda (the “Guarantor”), and The Bank of
New York, a New York banking corporation, as trustee (the “Trustee”), supplementing the Indenture among the Company, the Guarantor and
the Trustee, dated as of May 27, 2008 (the “Base Indenture”).

     

    WHEREAS,
the Company has executed and delivered the Base Indenture to the Trustee to
provide for the future issuance of the Company’s senior unsecured debentures,
notes or other evidence of indebtedness (the “Securities”), to be issued
from time to time in one or more series as might be determined by the Company
under the Base Indenture;

     

    WHEREAS,
pursuant to the terms of the Base Indenture and this First Supplemental
Indenture (together, the “Indenture”), the Company
desires to provide for the establishment of a new series of its Securities to be
known as its 6.875% Senior Notes due 2018 (the “Notes”), which shall be in the
form of senior unsecured notes, with specific terms and provisions, the form and
substance of such Notes and the terms, provisions and conditions thereof to be
set forth as provided in the Indenture; and

     

    WHEREAS,
the Company has requested that the Trustee execute and deliver this First
Supplemental Indenture, and all requirements necessary to make this First
Supplemental Indenture a valid instrument in accordance with its terms, and to
make the Notes, when executed by the Company and authenticated and delivered by
the Trustee, the valid obligations of the Company, have been done and performed,
and the execution and delivery of this First Supplemental Indenture has been
duly authorized in all respects:

     

    NOW
THEREFORE, in consideration of the purchase and acceptance of the Notes by the
Holders thereof, and for the purpose of setting forth, as provided in this
Indenture, the form and substance of the Notes and the terms, provisions and
conditions thereof, it is mutually covenanted and agreed as
follows:

     

     

    ARTICLE
1

    Definitions

     

    Section
1.01 .  Definitions of
Terms.  Unless the context otherwise requires:

     

    (a) a term not
defined herein that is defined in the Base Indenture has the same meaning when
used in this First Supplemental Indenture;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) the
definition of any term in this First Supplemental Indenture that is also defined
in the Base Indenture shall supersede the definition of such term in the Base
Indenture;

     

    (c) a term
defined anywhere in this First Supplemental Indenture has the same meaning
throughout;

     

    (d) the
singular includes the plural and vice versa;

     

    (e) headings
are for convenience of reference only and do not affect
interpretation;

     

    (f) the
following terms have the meanings given to them in this Section
1.01(f):

     

    “Business Day” means any day
that is not a Saturday, a Sunday, a legal holiday or a day on which banking
institutions or trust companies located in New York City are authorized or
obligated by law to close.

     

    “Company” shall have the
meaning set forth in the preamble of this First Supplemental
Indenture.

     

    “Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term (“Remaining Life”) of the Notes
to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of such
Notes.

     

    “Comparable Treasury Price”
means, with respect to any redemption date, (1) the average of four Reference
Treasury Dealer Quotations for such redemption date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent
obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such quotations.

     

    “Indenture” has the meaning set
forth in the preamble of this First Supplemental Indenture.

     

    “Interest Payment Date” means
each June 1 and December 1, commencing December 1, 2008.

     

    “Interest Payment Period” means
the semi-annual period, from and including an Interest Payment Date to but not
including the next succeeding Interest Payment Date, except for the first
Interest Payment Period which shall be determined from and including the date of
initial issuance of the Notes (subject to Section 2.01(b)) to but not including
December 1, 2008.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Make-Whole Redemption Amount”
means the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (exclusive of interest
accrued to the date of redemption) discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the then current Treasury Rate plus 50 basis points.

     

    “Maturity Date” means the date
on which the Notes mature as specified in Section 2.02 hereof and on which the
principal shall be due and payable together with all accrued and unpaid interest
thereon.

     

    “Notes” shall have the meaning
set forth in the recitals of this First Supplemental Indenture.

     

    “Quotation Agent” means one of
the Reference Treasury Dealers appointed by the Company.

     

    “Reference Treasury Dealer”
means (1) each of Credit Suisse Securities (USA) LLC and a primary U.S.
government securities dealer in New York City (“Primary Treasury Dealer”)
selected by Wachovia Capital Markets, LLC, and their respective successors,
unless any of them ceases to be a Primary Treasury Dealer, in which case the
Company shall substitute another Primary Treasury Dealer and (2) two other
Primary Treasury Dealers selected by the Company.

     

    “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Quotation Agent, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Quotation Agent by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
Business Day preceding such redemption date.

     

    “Regular Record Date” has the
meaning set forth in Section 2.04(c).

     

    “Securities” has the meaning
set forth in the recitals of this First Supplemental Indenture.

     

    “Securities Act” means the
Securities Act of 1933, as amended.

     

    “Special Record Date” has the
meaning set forth in Section 2.04(c).

     

    “Treasury Rate” means, with
respect to any redemption date, the rate per year equal to: (1) the yield, under
the heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated
“H.15(519)” or any successor publication which is published weekly by the Board
of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity corresponding
to the Comparable Treasury Issue; provided that, if no

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    maturity
is within three months before or after the Remaining Life of the Notes to be
redeemed, yields for the two published maturities most closely corresponding to
the Comparable Treasury Issue shall be determined and the Treasury Rate shall be
interpolated or extrapolated from those yields on a straight line basis,
rounding to the nearest month; or (2) if such release (or any successor release)
is not published during the week preceding the calculation date or does not
contain such yields, the rate per year equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date. The Treasury
Rate shall be calculated on the third Business Day preceding the redemption
date.

     

    “Trustee” shall have the
meaning set forth in the preamble of this First Supplemental
Indenture.

     

     

    ARTICLE
2

    General
Terms and Conditions of the Notes

     

    Section
2.01 .  Designation and
Principal Amount.  (a) There is hereby authorized a series of
Securities designated the 6.875% Senior Notes due 2018, which shall be in the
form of senior unsecured notes issued by the Company under this Indenture,
unlimited in aggregate principal amount.

     

    (b) The
Company may, from time to time, subject to compliance with any other applicable
provisions of this First Supplemental Indenture but without the consent of the
Holders, create and issue pursuant to this First Supplemental Indenture an
unlimited principal amount of additional Securities (in excess of any amounts
theretofore issued) having the same terms and conditions to those of the other
outstanding Securities, except that any such additional Securities (i) may have
a different issue date and issue price from other outstanding Securities and
(ii) may have a different amount of interest payable on the first Interest
Payment Date after issuance than is payable on other outstanding Securities.

     

    Section
2.02 .  Maturity.  The
Maturity Date will be June 1, 2018.

     

    Section
2.03 .  Form and
Payment.  Except as provided in Section 2.04, the Notes shall
be issued in fully registered certificated form without interest coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof,
bearing identical terms.  Principal and interest on the Notes issued
in certificated form will be payable, the transfer of such Notes will be
registrable and such Notes will be exchangeable for Notes bearing identical
terms and provisions at the office or agency of the Trustee; provided, however, that payment of
interest may be made, at the option of the Company, by check mailed to the
Holder at such address as shall appear in the Security Register.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Section
2.04 .  Interest.  (a)
The Notes will bear interest, accruing from the date of initial issuance, at the
per annum rate of 6.875%, payable semi-annually on each Interest Payment Date,
commencing on December 1, 2008.

     

    (b) Interest
payments will include accrued interest from and including the last date in
respect of which interest has been duly paid or provided for to, but not
including, the next succeeding Interest Payment Date or the date of redemption,
as the case may be.  The amount of interest payable for any full
Interest Payment Period will be computed on the basis of a 360 day year of
twelve thirty-day months, and the amount of interest payable for any period
shorter than a full Interest Payment Period for which interest is computed will
be computed on the basis of thirty-day months and, for periods of less than a
thirty-day month, the actual number of days elapsed per thirty-day
month.

     

    (c) The
interest installment so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Base Indenture, be paid to
the Person in whose name the Notes is registered at the close of business on the
day next preceding the Interest Payment Date; provided, that in the event the
Notes will not continue to remain in book-entry form or are not in the form of a
global certificate, the record date for each Interest Payment Date shall be the
fifteenth day of the month preceding the month in which such Interest Payment
Date occurs (the “Regular
Record Date”). Any such interest installment not punctually paid or duly
provided for within five Business Days of such Interest Payment Date shall
forthwith cease to be payable to the registered Holders on such Regular Record
Date, and may be paid to the Person in whose name the Notes is registered at the
close of business on a special record date to be fixed by the Company in
accordance with the terms of the Indenture (“Special Record Date”) for the
payment of such interest after the Company has deposited with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of
such interest, notice whereof shall be given by the Trustee to the registered
Holders of this series of Notes not less than ten days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes
may be listed, and upon such notice as may be required by such
exchange.

     

    Section
2.05 .  No Payment of
Additional Amounts.  Notwithstanding Section 10.04 of the Base
Indenture, the Company will not be required to pay any Additional Amounts with
respect to the Notes.

     

     

    ARTICLE
3

    Redemption
of the Notes

     

    The
Company shall have the right to redeem the Notes in accordance with Article 11
of the Base Indenture as amended and supplemented by the following
provisions.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
3.01 .  Redemption.  The
Company may redeem the Notes at its option, in whole or in part, at any time and
from time to time at a redemption price equal to the greater of:

     

    
      	
              ·  

            	
              100%
      of the principal amount of the Notes to be redeemed;
  or

            

    

    
      	
              ·  

            	
              the
      Make-Whole Redemption Amount.

            

    

     

    Section
3.02 .  Redemption Procedure
for Notes.  Notwithstanding the provisions of Section 11.04 of
the Base Indenture, the Company will mail, or cause the Trustee to mail, notice
of every redemption of Notes by first class mail, postage prepaid, and addressed
to the Holders of record of the Notes to be redeemed at such Holder’s respective
last address appearing on the Company’s books. Any redemption pursuant to this
Article 3 will be made upon not less than fifteen days nor more than sixty days
notice before the date fixed for redemption to the registered Holder of the
Notes. If the Notes are to be redeemed in part pursuant to Section 3.01, the
Notes will be redeemed pro rata or by lot or by any other method utilized by the
Trustee that the Trustee shall deem fair and appropriate. Any notice mailed as
provided in this Section 3.02 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 the Notes designated for redemption shall not affect the
redemption of any other Notes. Each such notice given to a Holder shall state:
(i) the date of redemption; (ii) the redemption price; (iii) that the Notes are
being redeemed pursuant to this Indenture or the terms of the Notes together
with the facts permitting such redemption; (iv) if less than all outstanding
Notes are to be redeemed, the identification (and, in the case of partial
redemption, the principal amounts) of the particular Notes to be redeemed; (v)
the place or places where the Notes are to be redeemed; and (vi) that interest
on the Notes to be redeemed will cease to accrue on the date of redemption.
Notwithstanding the foregoing or any provision of the Base Indenture, if the
Notes 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
Notes at such time and in any manner permitted by such facility. The redemption
price shall be paid prior to 10:00 a.m., New York City time, on the date of such
redemption or at such earlier time as the Company determines and specifies in
the notice of redemption. The Company shall deposit with the Trustee or with a
Paying Agent an amount of money sufficient to pay the redemption price of such
Notes or any portion thereof which are to be redeemed on that date.

     

    Section
3.03 .  Payment of Securities
Called for Redemption.  If any notice of redemption has been
given as provided in Section 3.02, the Notes or portion of the Notes with
respect to which such notice has been given shall become due and payable on the
date and at the place or places stated in such notice at the applicable
redemption price. From and after such date, the Notes to be redeemed shall cease
to bear interest. If any Notes called for redemption shall not be so paid upon
surrender thereof for redemption, the principal of and premium, if any,

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    on such
Notes shall, until paid, bear interest from the date of redemption. On
presentation and surrender of such Notes at a place of payment in said notice
specified, the said securities or the specified portions thereof shall be paid
and redeemed by the Company at the applicable redemption price. Upon
presentation of any Notes redeemed in part only, the Company shall execute and
the Trustee shall authenticate and deliver to the Holder thereof, at the expense
of the Company, new Notes of the same series, of authorized denominations, in
aggregate principal amount equal to the unredeemed portion of the Notes so
presented and having the same original issue date, Maturity Date and terms. If a
global security is so surrendered, such new Notes will also be a new global
security.

     

     

    ARTICLE
4

    No
Sinking Fund

     

    Article 12
of the Base Indenture shall be superseded by this Article 4 with respect to the
Notes.

     

    Section
4.01 .  No Sinking
Fund.  The Notes are not entitled to the benefit of any sinking
fund.

     

     

    ARTICLE
5

    Form
of Note

     

    Section
5.01 .  Form of
Note.  The Notes and the Trustee’s Certificate of
Authentication to be endorsed thereon are to be substantially in the following
forms:

     

    [FORM OF
FACE OF NOTE]

     

    [IF THE
NOTE IS TO BE A GLOBAL SECURITY, INSERT - THIS NOTE IS A GLOBAL SECURITY WITHIN
THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF THE CLEARING AGENCY OR A NOMINEE OF THE CLEARING AGENCY. THIS NOTE IS
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
CLEARING AGENCY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE
AS A WHOLE BY THE CLEARING AGENCY TO A NOMINEE OF THE CLEARING AGENCY OR BY A
NOMINEE OF THE CLEARING AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE OF THE
CLEARING AGENCY) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    [UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.]

     

    PARTNERRE
FINANCE A LLC

     

    6.875%
Senior Notes due 2018

        

    
      
        	 No.
    R-1	
                 $250,000,000

              
	 	
                 CUSIP
      No.  70212FAA1

              

      

       

    

    PARTNERRE
FINANCE A LLC, a limited liability company organized and existing under the laws
of Delaware (hereinafter called the “Company”, which term includes
any successor company under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., as nominee for The
Depository Trust Company, or registered assigns, the principal sum of TWO
HUNDRED FIFTY MILLION dollars ($250,000,000) on June 1, 2018.  The
Company further promises to pay interest on said principal sum from May 27, 2008
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on June 1 and December 1 in each year,
commencing on December 1, 2008, at the rate set forth above, until the principal
hereof is paid or duly provided for.  Interest will be computed on the
basis of a 360-day year consisting of twelve 30-day months unless the period for
which interest is to be paid consists of less than a thirty-day month, in which
case it will be computed on the basis of the actual number of days elapsed per
thirty-day month.

     

    The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date shall, as provided in the Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the May 15 or November 15 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date.  Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Company in accordance with the terms of the
Indenture, notice whereof shall be given by the Trustee to Holders of Securities
of this series not 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said
Indenture.

     

    Payment of
the principal of (and premium, if any), any interest on this Security will be
made at the office or agency of the company maintained for that purpose in The
City of New York, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts;
provided, however, that
at the option of the Company payment of interest may be made by check mailed to
the address of the Person entitled thereto as such address shall appear in the
Security Register.

     

    Reference
is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

     

    Unless the
certificate of authentication hereon has been executed by the Trustee referred
to on the reverse hereof by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any
purpose.

     

    IN WITNESS
WHEREOF, the Company has caused this instrument to be duly
executed.

     

    Dated:  May
27, 2008

     

    
      	
              PARTNERRE
      FINANCE A LLC

            	 
	 	 	 	 
	
              By:
      

            	 	 
	 	Name:	 	 
	 	Title:	 	 

    

     

     

     

    This is
one of the Notes referred to in the within mentioned Indenture.

     

    
      
        	
                
                  THE BANK OF NEW YORK,
      as
      Trustee

                

              	 
	 	 	 	 
	
                By:
      

              	 	 
	 	 
      Authorized
    Officer	 

      

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    [REVERSE
OF NOTE]

     

    This Note
is one of a duly authorized issue of securities of the Company (herein called
the “Notes”), issued and
to be issued in one or more series under an Indenture, dated as of May 27, 2008
(herein called the “Base
Indenture”), between the Company, the Guarantor, and The Bank of New
York, as trustee (herein called the “Trustee”), as supplemented by
a First Supplemental Indenture, dated as of May 27, 2008 (the “First Supplemental Indenture”
and the Base Indenture as so supplemented, the “Indenture”), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Trustee, the Company and the Holders of the Notes, and of the
terms upon which the Notes are, and are to be, authenticated and delivered. This
Note is one of the series designated on the face hereof, initially limited in
aggregate principal amount to $250,000,000.

     

    All terms
used in this Note that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     

    If an
Event of Default with respect to Notes of this series shall occur and be
continuing, the principal of the Notes of this series may be declared due and
payable in the manner, with the effect and subject to the conditions provided in
the Indenture.

     

    The
Indenture contains provisions for satisfaction, discharge and defeasance at any
time of the entire indebtedness of this Note upon compliance by the Company with
certain conditions set forth in the Indenture.

     

    The
Indenture permits, with certain exceptions as therein provided, the Company and
the Trustee at any time to enter into a supplemental indenture or indentures for
the purpose of modifying in any manner the rights and obligations of the Company
and of the Holders of the Securities, with the consent of the Holders of not
less than a majority in principal amount of the Outstanding Securities of each
series to be affected by such supplemental indenture. The Indenture also
contains provisions permitting Holders of specified percentages in principal
amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.

     

    As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note is registrable in the Securities Register, upon
surrender of this Note for registration of transfer at the office or agency of
the 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Company
maintained under Section 10.02 of the Base Indenture duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Securities Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Notes of this
series, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. No service charge
shall be made for any such registration of transfer or exchange, but the Company
or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     

    Prior to
due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes, whether
or not this Note be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

     

    The Notes
are issuable only in registered form without coupons in denominations of $2,000
and integral multiples of $1,000 in excess thereof. This Global Security is
exchangeable for Notes in definitive form only under certain limited
circumstances set forth in the Indenture. Notes so issued are issuable only in
registered form without coupons in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. As provided in the Base Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a
like aggregate principal amount of Notes of a different authorized denomination,
as requested by the Holder surrendering the same.

     

    No
recourse shall be had for the payment of the principal of or the interest on
this Note, or for any claim based hereon, or otherwise in respect hereof, or
based on or in respect of the Indenture, against any incorporator, shareholder,
officer or director, past, present or future, as such, of the Company or of any
predecessor or successor company, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issuance hereof, expressly waived and
released.

     

    THE
INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

     

     

    ARTICLE
6

    Original
Issue of Notes

     

    Section
6.01 .  Original Issue of
Notes.  Notes in the aggregate principal amount not to exceed
$250,000,000, except as provided in Section 2.01(b) hereof, may, upon execution
of this First Supplemental Indenture, be executed by the 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Company
and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Notes to or upon the written order of the Company,
signed by its Chief Executive Officer, President, any Executive Vice President,
Chief Financial Officer, General Counsel or Corporate Secretary, without any
further action by the Company.

     

    ARTICLE
7

    Covenants

     

    Article 10 of the Base Indenture shall
be supplemented by the following provisions.

     

    Until all the principal of and interest
on each Note have been paid in full, the Company covenants and agrees with the
Holders that:

     

    Section
7.01 . Activities of the
Company.  The Company’s activities shall be limited to issuing
senior or subordinated debt instruments and lending the proceeds from the sale
of any such senior or subordinated debt instruments to PartnerRe U.S.
Corporation on terms identical in all material respects to those of the issued
debt instruments, and any other activities necessary or incidental to these
activities.  For the avoidance of doubt, the Company shall have no
employees, shall acquire no real property and shall incur no material
obligations other than the senior or subordinated debt obligations referred to
in this Section 7.01.

     

    Section
7.02 .  Use of
Proceeds.  The Company shall use the proceeds of the Notes to
acquire debt instruments of PartnerRe U.S. Corporation on terms identical in all
material respects to those of these Notes and shall hold such debt instruments
for so long as any Note remains outstanding.  Any such debt instrument
of PartnerRe U.S. Corporation shall be evidenced at all times by a note or
agreement duly executed and delivered by PartnerRe U.S. Corporation.  The Company
shall modify or waive the terms of any such debt instrument of PartnerRe U.S.
Corporation only if and to the extent that the terms of the Notes have been
modified or waived in accordance with the terms of the
Indenture.

     

    Section
7.03 .  Proper
Records.  The Company will keep proper books of record and
account in which complete and correct entries are made of all transactions
relating to its business and activities.

     

    Section
7.04 .  Compliance with
Laws.  The Company will comply with all laws, rules,
regulations and orders of any government agency applicable to it or its
property, except where failures to do so could not, in the aggregate, result in
a material adverse effect on its ability to satisfy its obligations on the
Notes.

     

    Section
7.05 .  Liens.  The Company
shall not create, agree to create, incur, assume or suffer to exist any Lien
upon or with respect to any of its property or

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     assets,
whether now owned or hereafter acquired; provided
that nothing in this Section 7.05 shall prevent the creation, agreement to
create, incurrence, assumption or existence of the following Liens:

     

    (i) Liens in
respect of banker’s liens, rights of set-off or similar rights and remedies as
to deposit accounts or other funds maintained with a creditor depository or
other financial institution; provided,
however,
that (x) such deposit account is not a dedicated cash collateral account
and is not subject to restrictions against access by the Company, and
(y) such deposit account is not intended by the Company to provide
collateral to the depository institution;

     

    (ii) Liens for
taxes, assessments or governmental charges or levies not yet due, or Liens for
taxes, assessments or governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves have been
established in accordance with GAAP;

     

    (iii) judgment
liens in respect of judgments that do not constitute an Event of Default;
and

     

    (iv) any
extension, renewal or replacement of the foregoing Liens.

     

    ARTICLE
8

    Ranking

     

    Section
8.01 .  Ranking.  The
Notes shall be the Company’s senior unsecured indebtedness and shall rank
equally with all of its other senior unsecured indebtedness from time to time
outstanding.

     

    ARTICLE
9

    Miscellaneous

     

    Section
9.01 .  Ratification of
Indenture.  The Base Indenture as supplemented by this First
Supplemental Indenture, is in all respects ratified and confirmed, and this
First Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided.

     

    Section
9.02 .  Trustee Not Responsible
for Recitals.  The recitals herein contained are made by the
Company and not by the Trustee, and the Trustee assumes no responsibility for
the correctness thereof.

     

    Section
9.03 .  Governing
Law.  This First Supplemental Indenture and each Note shall be
deemed to be a contract made under the laws of the State of 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    New York,
and for all purposes shall be construed in accordance with the laws of said
State applicable to contracts made and to be performed entirely within said
State.

     

    Section
9.04 .  Separability.  In
case any one or more of the provisions contained in this First Supplemental
Indenture or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this First Supplemental Indenture or of
the Notes, but this First Supplemental Indenture and the Notes shall be
construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

     

    Section
9.05 .  Counterparts.  This
First Supplemental Indenture may be executed in any number of counterparts each
of which shall be an original; but such counterparts shall together constitute
but one and the same instrument.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    IN WITNESS
WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed by their respective officers thereunto duly authorized, on the
date or dates indicated in the acknowledgments and as of the day and year first
above written.

     

    
      
        	
                PARTNERRE
      FINANCE A LLC,

                as
      Company

              	 
	 	 	 	 
	
                By:
      

              	 /s/ John N.
      Adimari	 
	 	Name:	John
      N. Adimari	 
	 	Title:	Executive
      Vice President & CFO	 

      

       

       

      
        
          	
                  By:
      

                	 /s/ Thomas L.
      Forsyth	 
	 	Name:	Thomas L.
      Forsyth	 
	 	Title:	Executive
      Vice President, General Counsel & Secretary	 

        

      

    

     

     

    
      
        	
                PARTNERRE
      LTD., as
      Guarantor

              	 
	 	 	 	 
	
                By:
      

              	 /s/ Patrick A.
      Thiele	 
	 	Name:	Patrick
      A. Thiele	 
	 	Title:	President
      and Chief Executive Officer	 

      

       

       

      
        
          	
                  By:
      

                	 /s/ Albert A.
      Benchimol	 
	 	Name:	Albert
      A. Benchimol	 
	 	Title:	President
      and Chief Executive Officer	 

        

         

         

        
          
            	
                    THE
      BANK OF NEW YORK, as
      Trustee

                  	 
	 	 	 	 
	
                    By:
      

                  	 /s/ Gregg
      Weissman	 
	 	Name:	Gregg
      Weissman	 
	 	Title:	Assistant
      TreasurerExhibit
4.3

       

      DEBT
SECURITIES GUARANTEE AGREEMENT

       

      BETWEEN

       

      PARTNERRE
LTD.

       

      (AS
GUARANTOR)

       

      AND

       

      THE BANK
OF NEW YORK

       

      (AS
GUARANTEE TRUSTEE)

       

      DATED AS
OF

       

      May 27,
2008

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
OF CONTENTS

       

      
        	 
      	
                Page

              
	 
      
	
                ARTICLE
      1

              
	
                DEFINITIONS

              
	
                Section
      1.01.  Definitions

              	
                1

              
	 
	
                ARTICLE
      2

              
	
                TRUST
      INDENTURE ACT

              
	
                Section
      2.01.  Trust Indenture Act: Application

              	
                3

              
	
                Section
      2.02.  List of Holders

              	
                3

              
	
                Section
      2.03.  Reports by the Guarantee Trustee

              	
                4

              
	
                Section
      2.04.  Periodic Reports to the Guarantee Trustee

              	
                4

              
	
                Section
      2.05.  Evidence of Compliance with Conditions
      Precedent

              	
                4

              
	
                Section
      2.06.  Events of Default; Waiver

              	
                4

              
	
                Section
      2.07.  Event of Default; Notice

              	
                4

              
	
                Section
      2.08.  Conflicting Interests

              	
                5

              
	 
	
                ARTICLE
      3

              
	
                POWERS,
      DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

              
	
                Section
      3.01.  Powers, and Duties of the Guarantee
    Trustee

              	
                5

              
	
                Section
      3.02.  Certain Rights of the Guarantee Trustee

              	
                7

              
	
                Section
      3.03.  Indemnity

              	
                9

              
	 
	
                ARTICLE
      4

              
	
                GUARANTEE
      TRUSTEE

              
	
                Section
      4.01.  Guarantee Trustee; Eligibility

              	
                9

              
	
                Section
      4.02.  Appointment, Removal and Resignation of Guarantee
      Trustees 

              	
                10

              
	 
	
                ARTICLE
      5

              
	
                GUARANTEE

              
	
                Section
      5.01.  Guarantee

              	
                10

              
	
                Section
      5.02.  Waiver of Notice and Demand

              	
                11

              
	
                Section
      5.03.  Obligations Not Affected

              	
                11

              
	
                Section
      5.04.  Rights of Holders

              	
                12

              
	
                Section
      5.05.  Guarantee of Payment

              	
                12

              
	
                Section
      5.06.  Subrogation

              	
                12

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Section
      5.07.  Independent Obligations

              	
                12

              
	
                Section
      5.08.  Net Payments

              	
                13

              
	 
	
                ARTICLE
      6

              
	
                LIMITATION
      OF TRANSACTIONS; RANKING

              
	
                Section
      6.01.  Limitation of Transactions

              	
                14

              
	
                Section
      6.02.  Ranking

              	
                15

              
	
                Section
      6.03.  Pari Passu Guarantees

              	
                15

              
	 
	
                ARTICLE
      7

              
	
                TERMINATION

              
	
                Section
      7.01.  Termination

              	
                15

              
	 
	
                ARTICLE
      8

              
	
                MISCELLANEOUS

              
	
                Section
      8.01.  Successors and Assigns

              	
                16

              
	
                Section
      8.02.  Amendments

              	
                16

              
	
                Section
      8.03.  Notices

              	
                16

              
	
                Section
      8.04.  Benefit

              	
                17

              
	
                Section
      8.05.  Governing Law

              	
                18

              
	
                Section
      8.06.  Interpretation

              	
                18

              
	
                Section
      8.07.  Submission to Jurisdiction

              	
                18

              
	
                Section
      8.08.  Judgment Currency

              	
                19

              
	
                Section
      8.09.  Waiver Of Jury Trial

              	
                20

              
	
                Section
      8.10.  Force Majeure

              	
                20

              
	 
      	 
      

      

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

    

     

    GUARANTEE
AGREEMENT

     

    This
GUARANTEE AGREEMENT (this “Guarantee Agreement” or this
“Guarantee”), dated as
of May 27, 2008, is executed and delivered by PartnerRe Ltd., a Bermuda company
(“PartnerRe” or the
“Guarantor”), having its
principal executive offices at 90 Pitts Bay Road, Pembroke HM 08, Bermuda, and
The Bank of New York, a New York banking corporation, having a corporate trust
office located at 101 Barclay Street, Floor 8W, New York, New York 10286, as
trustee (the “Guarantee
Trustee”), for the benefit of the Holders (as defined herein) from time
to time of the Notes (as defined herein) issued by PartnerRe Finance A LLC, a
Delaware limited liability company (the “Issuer”).

     

    WHEREAS,
pursuant to an Indenture, dated as of May 27, 2008 (the “Indenture”), among the
Issuer, the Guarantor and the Guarantee Trustee, as trustee thereunder, the
Issuer may issue senior unsecured debt securities (the “Notes”).

     

    WHEREAS,
as incentive for the Holders (as defined in the Indenture) to purchase such
Notes, the Guarantor desires irrevocably and unconditionally, to guarantee the
obligations of the Issuer under the Indenture.

     

    NOW,
THEREFORE, in consideration of the purchase and acceptance of the Notes by the
Holders thereof, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the
benefit of the Holders.

     

     

    ARTICLE
1

    Definitions

     

    Section
1.01.  Definitions.  As
used in this Guarantee Agreement, the terms set forth below shall, unless the
context otherwise requires, have the following meanings. Capitalized or
otherwise defined terms used, but not otherwise defined herein shall have the
meanings assigned to such terms in the Indenture as in effect on the date
hereof.

     

    “Additional Amounts” means any
additional amounts which are required hereby or by the terms of the Notes, under
circumstances specified herein or therein, to be paid by the Guarantor in
respect of certain taxes, assessments or other governmental charges imposed on
Holders specified herein and therein and which are owing to such
Holders.

     

    “Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    with such
specified Person; provided,
however, that an Affiliate of the Guarantor shall not be deemed to
include the Issuer. For the purpose of this definition, “control” when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

     

    “Authorized Officer” means,
when used with respect to any Person, the Chairman of the Board of Directors, a
Vice Chairman, the President, a Vice President, the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Chief Investment Officer, the Chief
Accounting Officer, the Chief Legal Counsel, the Secretary or an Assistant
Secretary, of such Person.

     

    “Event of Default” means a
default by the Guarantor on any of its payment or other obligations under this
Guarantee Agreement; provided,
however, that, except with respect to a payment default, the Guarantor
shall have received notice of default and shall not have cured such default
within 60 days after receipt of such notice.

     

    “Guarantee Trustee” means The
Bank of New York, until a Successor Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Guarantee Agreement and
thereafter means each such Successor Guarantee Trustee.

     

    “Indenture” has the meaning set
forth in the preamble hereto.

     

    “List of Holders” has the
meaning specified in Section 2.02(a).

     

    “Notes” has the meaning set
forth in the preamble hereto.

     

    “Officers’ Certificate” means,
with respect to any Person, a certificate signed by two Authorized Officers, at
least one of which is a principal executive, principal financial or principal
accounting officer, and is delivered to the Guarantee Trustee. Any Officers’
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Guarantee shall include:

     

    (a) a
statement that each officer signing the Officers’ Certificate has read the
covenant or condition and the definitions relating thereto;

     

    (b) a
brief statement of the nature and scope of the examination or investigation
undertaken by such officer in rendering the Officers’ Certificate;

     

    (c) a
statement that such officer has made such examination or investigation as, in
such officer’s opinion, is necessary to enable such officer to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) a
statement as to whether, in the opinion of such officer, such condition or
covenant has been complied with.

     

    “Person” means a legal person,
including any individual, corporation, estate, partnership, joint venture,
association, joint stock company, limited liability company, trust,
unincorporated association or government or any agency or political subdivision
thereof, or any other entity of whatever nature.

     

    “Responsible Officer” means,
with respect to the Guarantee Trustee, any officer of the Guarantee Trustee with
direct responsibility for administration of this Guarantee Agreement and also
means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of that officer’s knowledge of and
familiarity with the particular subject.

     

    “Successor Guarantee Trustee”
means a successor Guarantee Trustee possessing the qualifications to act as
Guarantee Trustee under Section 4.01.

     

    “Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended.

     

     

    ARTICLE
2

    Trust
Indenture Act

     

    Section
2.01.  Trust
Indenture Act: Application.

     

    (a)  This
Guarantee Agreement is subject to the provisions of the Trust Indenture Act that
are required to be part of this Guarantee Agreement and shall, to the extent
applicable, be governed by such provisions.

     

    (b)  If
and to the extent that any provision of this Guarantee Agreement limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall
control.

     

    Section
2.02.  List of
Holders.

     

    (a)  Within
30 days after the receipt by the Guarantor of a request in writing from the
Guarantee Trustee, the Guarantor shall furnish or cause to be furnished to the
Guarantee Trustee a list, in such form as the Guarantee Trustee may reasonably
require, of the names and addresses of the Holders (“List of Holders”), such List
of Holders to be as of a date not more than 15 days prior to the time such List
of Holders is furnished, in each case to the extent such information is in the
possession or control of the Guarantor and is not identical to a previously
supplied list of Holders or has not otherwise been received by the 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Guarantee
Trustee in its capacity as such. The Guarantee Trustee may destroy any List of
Holders previously given to it on receipt of a new List of Holders.

     

    (b)  The
Guarantee Trustee shall comply with its obligations under Section 311(a),
Section 311(b) and Section 312(b) of the Trust Indenture Act.

     

    Section
2.03.  Reports by
the Guarantee Trustee.  Within 60 days after May 15 of each
year commencing with May 15, 2009, the Guarantee Trustee shall provide to the
Holders such reports as are required by Section 313 of the Trust Indenture Act,
if any, in the form and in the manner provided by Section 313 of the Trust
Indenture Act. The Guarantee Trustee shall also comply with the requirements of
Section 313(d) of the Trust Indenture Act.

     

    Section
2.04.  Periodic
Reports to the Guarantee Trustee.  The Guarantor shall provide
to the Guarantee Trustee, the Securities and Exchange Commission and the
Holders, such documents, reports and information, if any, as required by Section
314 of the Trust Indenture Act and the compliance certificate required by
Section 314 of the Trust Indenture Act, in the form, in the manner and at the
times required by Section 314 of the Trust Indenture Act.

     

    Section
2.05.  Evidence of
Compliance with Conditions Precedent.  The Guarantor shall
provide to the Guarantee Trustee such evidence of compliance with such
conditions precedent, if any, provided for in this Guarantee Agreement that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) may be given in the form of an Officers’
Certificate.

     

    Section
2.06.  Events of
Default; Waiver.  The holders of not less than a majority of
the outstanding principal amount of the Notes may, by vote, on behalf of all
Holders, waive any past Event of Default and its consequences. Upon such waiver,
any such Event of Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Guarantee Agreement, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

     

    Section
2.07.  Event of
Default; Notice.

     

    (a)  The
Guarantee Trustee shall, within 90 days after the occurrence of an Event of
Default known to the Guarantee Trustee, transmit by mail, first class postage
prepaid, to the Holders, notices of all such Events of Default, unless such
defaults have been cured or waived before the giving of such notice, provided,
except in the case of a default in the payment by the Guarantor of any amount
due under this Guarantee Agreement, the Guarantee Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    Guarantee
Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders.

     

    (b)  The
Guarantee Trustee shall not be deemed to have knowledge of any Event of Default
unless the Guarantee Trustee shall have received written notice, or a
Responsible Officer of the Guarantee Trustee shall have actual knowledge or
shall have obtained written notice, of such Event of Default.

     

    Section
2.08.  Conflicting
Interests.  The Indenture shall be deemed to be specifically
described in this Guarantee Agreement for the purposes of clause (i) of the
first proviso contained in Section 310(b) of the Trust Indenture
Act.

     

     

    ARTICLE
3

    Powers,
Duties and Rights of Guarantee Trustee

     

    Section
3.01.  Powers, and
Duties of the Guarantee Trustee.

     

    (a)  This
Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of
the Holders, and the Guarantee Trustee shall not transfer this Guarantee
Agreement to any Person except a Holder exercising his or her rights pursuant to
Section 5.04(d) or to a Successor Guarantee Trustee on acceptance by such
Successor Guarantee Trustee of its appointment to act as Successor Guarantee
Trustee. The right, title and interest of the Guarantee Trustee shall
automatically vest in any Successor Guarantee Trustee, upon acceptance by such
Successor Guarantee Trustee of its appointment hereunder, and such vesting and
cessation of title shall be effective whether or not conveyancing documents have
been executed and delivered pursuant to the appointment of such Successor
Guarantee Trustee.

     

    (b)  If
an Event of Default hereunder or under the Indenture has occurred and is
continuing, the Guarantee Trustee shall enforce this Guarantee Agreement for the
benefit of the Holders.

     

    (c)  The
Guarantee Trustee, before the occurrence of any Event of Default hereunder or
under the Indenture and after the curing or waiver of all Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee Agreement, and no implied covenants
shall be read into this Guarantee Agreement against the Guarantee Trustee. In
case an Event of Default has occurred hereunder or under the Indenture (that has
not been cured or waived pursuant to Section 2.06 of this Guarantee Agreement or
Section 5.13 of the
Indenture), the Guarantee Trustee shall exercise such of the rights and
powers vested in it by this Guarantee Agreement, and use the same degree of care
and skill in its exercise thereof, as a 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

     

    (d)  No
provision of this Guarantee shall be construed to relieve the Guarantee Trustee
from liability for its own negligent action, its negligent failure to act or its
own bad faith or willful misconduct, except that:

     

    (i)  prior
to the occurrence of any Event of Default hereunder or under the Indenture and
after the curing or waiving of any such Events of Default that may have
occurred:

     

    (A)  the
duties and obligations of the Guarantee Trustee shall be determined solely by
the express provisions of this Guarantee Agreement, and the Guarantee Trustee
shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Guarantee Agreement, and

     

    (B)  in
the absence of bad faith on the part of the Guarantee Trustee, the Guarantee
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Guarantee Trustee and conforming to the requirements of this
Guarantee Agreement; but in the case of any such certificates or opinions that
by any provision hereof are specifically required to be furnished to the
Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the
same to determine whether or not they conform to the requirements of this
Guarantee Agreement;

     

    (ii)  the
Guarantee Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer of the Guarantee Trustee, unless it shall be
proved that the Guarantee Trustee was negligent in ascertaining the pertinent
facts upon which such judgment was made;

     

    (iii)  the
Guarantee Trustee shall not be liable (including, without limitation, for
consequential damages) with respect to any action taken or omitted to be taken
by it in good faith in accordance with the direction of the holders of not less
than a majority of the outstanding principal amount of the Notes relating to the
time, method and place of conducting any proceeding for any remedy available to
the Guarantee Trustee, or exercising any trust or power conferred upon the
Guarantee Trustee under this Guarantee Agreement; and

     

    (iv)  no
provision of this Guarantee shall require the Guarantee Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise 

     

     

    
      
        
        

      

      
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    of any of
its rights or powers, if the Guarantee Trustee shall have reasonable grounds for
believing that the repayment of such funds or liability is not reasonably
assured to it under the terms of this Guarantee Agreement or adequate indemnity
against such risk or liability is not reasonably assured to it.

     

    Section
3.02.  Certain
Rights of the Guarantee Trustee.

     

    (a)  Subject
to the provisions of Section 3.01:

     

    (i)  The
Guarantee Trustee may rely upon, and shall be fully protected in acting or
refraining from acting upon, any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document believed by it
to be genuine and to have been signed, sent or presented by the proper party or
parties.

     

    (ii)  Any
direction or act of the Guarantor contemplated by this Guarantee Agreement shall
be sufficiently evidenced by an Officers’ Certificate unless otherwise
prescribed herein.

     

    (iii)  Whenever,
in the administration of this Guarantee Agreement, the Guarantee Trustee shall
deem it desirable that a matter be proved or established before taking,
suffering or omitting any action hereunder, the Guarantee Trustee (unless other
evidence is herein specifically prescribed) may, in the absence of bad faith on
its part, request and rely upon an Officers’ Certificate which, upon receipt of
such request, shall be promptly delivered by the Guarantor.

     

    (iv)  The
Guarantee Trustee may consult with competent legal counsel, and the written
advice or opinion of such counsel with respect to legal matters shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted to be taken by it hereunder in good faith and in accordance
with such advice or opinion. Such counsel may be counsel to the Guarantor or any
of its Affiliates and may include any of its employees. The Guarantee Trustee
shall have the right at any time to seek instructions concerning the
administration of this Guarantee Agreement from any court of competent
jurisdiction.

     

    (v)  The
Guarantee Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Guarantee Agreement at the request or direction of
any Holder, unless such Holder shall have provided to the Guarantee Trustee such
security and indemnity reasonably satisfactory to the Guarantee Trustee, against
the costs, expenses (including reasonable attorneys’ fees and expenses)
and

     

     

    
      
        
        

      

      
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     liabilities
that might be incurred by it in complying with such request or direction,
including such reasonable advances as may be requested by the Guarantee Trustee;
provided that, nothing
contained in this Section 3.02(a)(v) shall be taken to relieve the Guarantee
Trustee, upon the occurrence of an Event of Default hereunder or under the
Indenture, of its obligation to exercise the rights and powers vested in it by
this Guarantee Agreement.

     

    (vi)  The
Guarantee Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Guarantee Trustee,
in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit.

     

    (vii)   The
Guarantee Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents, attorneys,
custodians or nominees, and the Guarantee Trustee shall not be responsible for
any misconduct or negligence on the part of any such agent, attorney, custodian
or nominee appointed with due care by it hereunder.

     

    (viii)   Any
action taken by the Guarantee Trustee or its agents hereunder shall bind the
Holders, and the signature of the Guarantee Trustee or its agents alone shall be
sufficient and effective to perform any such action. No third party shall be
required to inquire as to the authority of the Guarantee Trustee to so act or as
to its compliance with any of the terms and provisions of this Guarantee
Agreement, both of which shall be conclusively evidenced by the Guarantee
Trustee’s or its agent’s taking such action.

     

    (ix)  Whenever
in the administration of this Guarantee Agreement the Guarantee Trustee shall
deem it desirable to receive instructions with respect to enforcing any remedy
or right or taking any other action hereunder, the Guarantee
Trustee

     

    (A)  may
request instructions from the holders of not less than a majority of the
outstanding principal amount of the Notes,

     

    (B)  may
refrain from enforcing such remedy or right or taking such other action until
such instructions are received, and

     

     

    
      
        
        

      

      
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    (C)  shall
be protected in acting in accordance with such instructions.

     

    (b)  No
provision of this Guarantee Agreement shall be deemed to impose any duty or
obligation on the Guarantee Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it in any jurisdiction
in which it shall be illegal, or in which the Guarantee Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Guarantee Trustee shall be
construed to be a duty to act in accordance with such power and
authority.

     

    Section
3.03.  Indemnity.  The
Guarantor agrees to indemnify the Guarantee Trustee and its officers, directors,
employees and agents for, and to hold them harmless against, any loss, liability
or expense incurred without negligence, bad faith or willful misconduct on the
part of the Guarantee Trustee, arising out of or in connection with the
acceptance or administration of this Guarantee Agreement, including the costs
and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder and
including the reasonable fees and expenses of its counsel. The Guarantee Trustee
will not claim or exact any lien or charge on any other guarantee that may be
granted under this Guarantee Agreement as a result of any amount due to it under
this Guarantee Agreement.

     

    The
provisions of this Section 3.03 shall survive the termination of this Guarantee
Agreement or the resignation or removal of the Guarantee Trustee.

     

     

    ARTICLE
4

    Guarantee
Trustee

     

    Section
4.01.  Guarantee
Trustee; Eligibility.

     

    (a)  There
shall at all times be a Guarantee Trustee which shall:

     

    (i)  not
be an Affiliate of the Guarantor or the Issuer; and

     

    (ii)  be
a Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital of at least 50 million U.S. dollars ($50,000,000), and
shall be a corporation meeting the requirements of Section 310(a) of the Trust
Indenture Act. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the supervising or examining
authority, then, for the purposes of this Section 4.01(a)(ii), the combined
capital and surplus of 

     

     

     

    
      
        
        

      

      
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    such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

     

    (b)  If
at any time the Guarantee Trustee shall cease to be eligible to so act under
Section 4.01(a), the Guarantee Trustee shall immediately resign in the manner
and with the effect set out in Section
4.02(c).

     

    (c)  If
the Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

     

    Section
4.02.  Appointment,
Removal and Resignation of Guarantee Trustees .

     

    (a)  Subject
to Section 4.02(b), the Guarantee Trustee may be appointed or removed without
cause at any time by the Guarantor.

     

    (b)  The
Guarantee Trustee shall not be removed in accordance with Section 4.02(a)
until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by written instrument executed by such Successor Guarantee Trustee
and delivered to the Guarantor.

     

    (c)  The
Guarantee Trustee appointed to office shall hold office until a Successor
Guarantee Trustee shall have been appointed or until its removal or resignation.
The Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Guarantee
Trustee and delivered to the Guarantor, which resignation shall not take effect
until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by instrument in writing executed by such Successor Guarantee
Trustee and delivered to the Guarantor and the resigning Guarantee
Trustee.

     

    (d)  If
no Successor Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 4.02 within
60 days after delivery to the Guarantor of an instrument of resignation, the
resigning Guarantee Trustee may petition any court of competent jurisdiction for
appointment of a Successor Guarantee Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Successor
Guarantee Trustee.

     

     

    ARTICLE
5

    Guarantee

     

    Section
5.01.  Guarantee.  The
Guarantor hereby irrevocably and unconditionally guarantees to each Holder the
due and punctual payment of the 

     

     

    
      
        
        

      

      
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    principal
of, any premium and interest on, and any Additional Amounts, if applicable, with
respect to any Note held by such Holder, when and as the same shall become due
and payable, whether at maturity, by acceleration, redemption, repayment or
otherwise, in accordance with the terms of such Note and of the Indenture, and
to the Trustee payment of all amounts due to the Trustee relating to the
performance of its duties under the Indenture. The Guarantor further agrees
that, as between the Guarantor, on the one hand, and the Holders and the
Guarantee Trustee, on the other hand, the maturity of the Notes guaranteed
hereby may be accelerated as provided in Article 5 of the Indenture for the
purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Notes guaranteed
hereby.

     

    Section
5.02.  Waiver of
Notice and Demand.  The Guarantor hereby waives notice of
acceptance of this Guarantee Agreement and of any liability to which it applies
or may apply, presentment, demand for payment, any right to require a proceeding
first against the Guarantee Trustee, the Issuer or any other Person before
proceeding against the Guarantor, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

     

    Section
5.03.  Obligations
Not Affected. The obligations,
covenants, agreements and duties of the Guarantor under this Guarantee shall be
as if it were a principal debtor, and not merely a surety, and shall in no way
be affected or impaired by reason of the happening from time to time of any of
the following:

     

    (a)  the
release or waiver, by operation of law or otherwise, of the performance or
observance by the Issuer of any express or implied agreement, covenant, term or
condition relating to the Notes to be performed or observed by the
Issuer;

     

    (b)  any
failure, omission, delay or lack of diligence on the part of the Holders to
enforce, assert or exercise any right, privilege, power or remedy conferred on
the Holders pursuant to the terms of the Notes, or any action on the part of the
Issuer granting indulgence or extension of any kind;

     

    (c)  the
voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other
similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

     

    (d)  any
invalidity or unenforceability of, or defect or deficiency in, the Notes;
or

     

    (e)  any
other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a guarantor, it being the intent of this

     

     

     

    
      
        
        

      

      
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    Section
5.03 that the obligations of the Guarantor hereunder shall be absolute and
unconditional under any and all circumstances.

     

    There
shall be no obligation of the Holders to give notice to, or obtain the consent
of, the Guarantor with respect to the happening of any of the
foregoing.

     

    Section
5.04.  Rights of
Holders.  The Guarantor expressly acknowledges that: (a) this
Guarantee Agreement will be deposited with the Guarantee Trustee to be held for
the benefit of the Holders; (b) the Guarantee Trustee has the right to enforce
this Guarantee Agreement on behalf of the Holders; (c) the holders of not less
than a majority of the principal amount of the outstanding Notes have the right
to direct the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee in respect of this Guarantee Agreement or to
direct the exercise of any trust or power conferred upon the Guarantee Trustee
under this Guarantee Agreement; and (d) any Holder may, to the extent permitted
by law, institute a legal proceeding directly against the Guarantor to enforce
its rights under this Guarantee Agreement, without first instituting a legal
proceeding against the Guarantee Trustee, the Issuer or any other Person. The
Guarantor waives any right or remedy to require that any action on this
Guarantee Agreement be brought first against the Issuer or any other Person or
entity before proceeding directly against the Guarantor.

     

    Section
5.05.  Guarantee of
Payment.  This Guarantee creates a guarantee of payment and not
of collection. This Guarantee Agreement will not be discharged except by payment
in full of all amounts (without duplication of amounts theretofore paid by the
Issuer) owed under the Notes.

     

    Section
5.06.  Subrogation.  The
Guarantor shall be subrogated to all rights, if any, of the Holders against the
Issuer in respect of any amounts paid to such Holders by the Guarantor under
this Guarantee Agreement; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of
applicable law) be entitled to enforce or exercise any right that it may acquire
by way of subrogation or any indemnity, reimbursement or other agreement, in all
cases as a result of payment under this Guarantee Agreement, if, at the time of
any such payment, any amounts are due and unpaid under this Guarantee Agreement.
If any amount shall be paid to the Guarantor in violation of the preceding
sentence, the Guarantor agrees to hold such amount in trust for the Holders and
to pay over such amount to the Holders.

     

    Section
5.07.  Independent
Obligations.  The Guarantor acknowledges that its obligations
hereunder are independent of the obligations of the Issuer with respect to the
Notes, and that the Guarantor shall be liable as principal and as debtor
hereunder to make all payments with respect to the Notes pursuant to the terms
of this Guarantee Agreement notwithstanding the occurrence of any event referred
to in subsections (a) through (e), inclusive, of Section 5.03
hereof.

     

     

    
      
        
        

      

      
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    Section
5.08.  Net
Payments. All payments required
to be made hereunder shall be made by the Guarantor 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 the Islands of Bermuda or such other jurisdiction in which
the Guarantor (or any of its successors under this Guarantee Agreement) may be
organized (each, 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 (i) the laws (or
any regulations or ruling promulgated thereunder) of a taxing jurisdiction or
any political subdivision or taxing authority thereof or therein or (ii) 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 Guarantor shall, subject to
certain limitations and exceptions set forth below, pay to the Holder of any
Note such Additional Amounts as may be necessary so that every guarantee payment
made to such Holder, after such withholding or deduction, shall not be less than
the amount provided for in the Indenture and this Guarantee Agreement to be then
due and payable; provided,
however, that the Guarantor shall not be required to make payment of such
Additional Amounts for or on account of:

     

    (1)  any
tax, fee, duty, assessment or governmental charge of whatever nature which would
not have been imposed but for the fact that such Holder: (A) 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 Note; (B) presented such Note for payment in the
relevant taxing jurisdiction or any political subdivision thereof, unless such
Note could not have been presented for payment elsewhere; or (C) presented such
Note more than thirty (30) days after the date on which the payment in respect
of such Note first became due and payable or provided for, whichever is later,
except to the extent that the Holder would have been entitled to such Additional
Amounts if it had presented such Note for payment on any day within such period
of thirty (30) days;

     

     

    
      
        
        

      

      
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    (2)  any
estate, inheritance, gift, sale, transfer, personal property or similar tax,
assessment or other governmental charge;

     

    (3)  any
tax, assessment or other governmental charge that is imposed or withheld by
reason of the failure by the Holder or the beneficial owner of such Note to
comply with any reasonable request by the Issuer addressed to the Holder within
90 days of such request (A) to provide information concerning the nationality,
residence or identity of the Holder or such beneficial owner or (B) to make any
declaration or other similar claim or satisfy any information or reporting
requirement, which, in the case of (A) or (B), 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, assessment or other governmental charge;
or

     

    (4)  any
combination of items (1), (2) and (3); nor shall Additional Amounts be paid with
respect to any Guarantee Payment to any Holder who is a fiduciary or partnership
or other than the sole beneficial owner of the related Note, but only to the
extent 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 or a beneficial owner who would not have been entitled to such
Additional Amounts had it been the Holder of such Note.

     

     

    ARTICLE
6

    Limitation
of Transactions; Ranking

     

    Section
6.01.  Limitation of
Transactions.  The Guarantor hereby covenants and agrees that,
so long as any Notes remain outstanding, it will not, and will not permit any of
its Subsidiaries to, (a) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of
the outstanding capital shares of the Guarantor or (b) make any payment of
principal of, interest or premium, if any, on or repay, repurchase or redeem any
debt security of the Guarantor that ranks equal to or junior in interest

     

     

    
      
        
        

      

      
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    to the
Notes or the guarantee in respect thereof, as the case may be, or make any
guarantee payments with respect to any guarantee by the Guarantor of the debt
securities of any Subsidiary of the Guarantor if such guarantee ranks equal to
or junior in interest to the Notes or the guarantee in respect thereof, as the
case may be (other than (i) dividends or distributions in shares of, or options,
warrants, rights to subscribe for or purchase shares of, common shares of the
Guarantor, (ii) any declaration of a dividend in connection with the
implementation of a stockholder’s rights plan, or the issuance of stock under
any such plan in the future, or the redemption or repurchase of any such rights
pursuant thereto, (iii) the purchase of fractional shares resulting from a
reclassification of the Guarantor’s capital stock, (iv) the exchange or
conversion of any class or series of the Guarantor’s (or any Subsidiary’s)
capital stock for another class or series of the Guarantor’s (or any
Subsidiary’s) capital stock or of any class or series of the Guarantor’s (or any
Subsidiary’s) indebtedness, (v) the purchase of fractional interests in shares
of the Guarantor’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged;
and (vi) repurchases, redemptions or other acquisitions of shares of capital
stock of the Guarantor or any subsidiary under any employment agreement or
benefit plan for the benefit of the Guarantor’s directors, officers, or
employees, or any dividend reinvestment or director, officer or employee stock
purchase plan of the Guarantor) if at such time (1) there shall have occurred
any event of which the Guarantor has actual knowledge that (A) with the giving
of notice or the lapse of time or both, would constitute an Event of Default
under the Indenture and (B) in respect of which the Guarantor shall not have
taken reasonable steps to cure, or (2) the Guarantor shall be in default with
respect to its payment of any obligations under this Guarantee
Agreement.

     

    Section
6.02.  Ranking.  This
Guarantee Agreement shall constitute a senior unsecured obligation of the
Guarantor and shall rank equally with all senior unsecured indebtedness of the
Guarantor from time to time outstanding.

     

    Section
6.03.  Pari Passu
Guarantees.  This Guarantee Agreement shall rank pari passu with any similar
guarantee agreements issued by the Guarantor on behalf of holders of senior
unsecured notes issued by any entity affiliated with the Guarantor which is a
financing vehicle of the Guarantor.

     

     

    ARTICLE
7

    Termination

     

    Section
7.01.  Termination. This Guarantee shall
terminate and be of no further force and effect upon (i) full payment of the
Redemption Price of all Notes and all other amounts then due and payable under
the Indenture, or (ii) the full payment of the amounts payable in accordance
with the Indenture. Notwithstanding the foregoing, this Guarantee Agreement will
continue to be 

     

     

    
      
        
        

      

      
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    effective
or will be reinstated, as the case may be, if at any time any Holder must
restore payment of any sums paid with respect to the Notes or under this
Guarantee Agreement.

     

     

    ARTICLE
8

    Miscellaneous

     

    Section
8.01.  Successors
and Assigns.  All guarantees and agreements contained in this
Guarantee Agreement shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Notes then outstanding. Except in connection with a consolidation,
merger, or sale involving the Guarantor that is permitted under Article 8 of the
Indenture and pursuant to which the assignee agrees in writing to perform the
Guarantor’s obligations hereunder, the Guarantor shall not assign its
obligations hereunder.

     

    Section
8.02.  Amendments.  Except
with respect to any changes that do not adversely affect the rights of Holders
in any material respect (in which case no consent of Holders will be required)
and any changes to Sections 5.01 and Section 6.01 hereof, which may only be
amended in writing with the prior approval of each Holder, this Guarantee
Agreement may only be amended in writing by the parties hereto with the prior
approval of the holders of not less than a majority of the outstanding principal
amount of the Notes. The provisions of Article 15 of the Indenture concerning
meetings of Holders apply to the giving of such approval.

     

    Section
8.03.  Notices.  Any
notice, request or other communication required or permitted to be given
hereunder shall be in writing, duly signed by the party giving such notice, and
shall be delivered, telecopied or mailed by first class mail, as
follows:

     

    (a)  If
given to the Guarantee Trustee, at the Guarantee Trustee’s mailing address set
forth below (or such other address as the Guarantee Trustee may give notice of
to the Guarantor and the Holders):

     

    The Bank
of New York

    101
Barclay Street

    Floor
8W

    New York,
New York 10286

    Attention:  Corporate
Trust Administration

     

    (b)  If
given to the Guarantor, at the Guarantor’s mailing address set forth below (or
such other address as the Guarantor may give notice of to the
Holders):

     

     

    
      
        
        

      

      
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    PartnerRe
Ltd.

    90 Pitts
Bay Road

    Pembroke
HM 08

    Bermuda

    Attention:
Chief Legal Counsel

     

    with a
copy to:

     

    Davis Polk
& Wardwell

    450
Lexington Avenue

    New York,
New York 10017

    Attention:
Ethan T. James, Esq.

     

    (c)  If
given to the Issuer, in care of the Guarantee Trustee, at the Issuer’s (and the
Guarantee Trustee’s) address set forth below or such other address as the
Guarantee Trustee on behalf of the Issuer may give notice to the
Holders:

     

    PartnerRe
Finance A LLC

    c/o
PartnerRe Ltd.

    90 Pitts
Bay Road

    Pembroke
HM 08

    Bermuda

    Attention:
Chief Legal Counsel

     

    with a
copy to:

     

    The Bank
of New York

    101
Barclay Street

    Floor
8W

    New York,
New York 10286

    Attention:  Corporate
Trust Administration

     

    (d)  If
given to any Holder, at the address set forth on the books and records of the
Issuer.

     

    All such
notices shall be deemed to have been given when received in person, telecopied
with receipt confirmed, or mailed by first class mail, postage prepaid except
that if a notice or other document is refused delivery or cannot be delivered
because of a changed address of which no notice was given, such notice or other
document shall be deemed to have been delivered on the date of such refusal or
inability to deliver.

     

    Section
8.04.  Benefit.  This
Guarantee is solely for the benefit of the Holders and is not separately
transferable from the Notes.

     

     

     

    
      
        
        

      

      
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    Section
8.05.  Governing
Law.  THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND PERFORMED IN THAT STATE.

     

    Section
8.06.  Interpretation.  In
this Guarantee, unless the context otherwise requires:

     

    (a)  capitalized
terms used in this Guarantee Agreement, but not defined in the preamble hereto
have the respective meanings assigned to them in Section 1.01 or in the
Indenture, as the case may be;

     

    (b)  a
term defined anywhere in this Guarantee Agreement has the same meaning
throughout;

     

    (c)  all
references to “the
Agreement” or “this
Guarantee Agreement” are to this Guarantee Agreement as modified,
supplemented or amended from time to time;

     

    (d)  all
references in this Guarantee Agreement to Articles and Sections are to Articles
and Sections of this Guarantee Agreement, unless otherwise
specified;

     

    (e)  a
term defined in the Trust Indenture Act has the same meaning when used in this
Guarantee Agreement, unless otherwise defined in this Guarantee Agreement or
unless the context otherwise requires;

     

    (f)  a
reference to the singular includes the plural and vice versa; and

     

    (g)  the
masculine, feminine, or neuter genders used herein shall include the masculine,
feminine and neuter genders.

     

    Section
8.07.  Submission to
Jurisdiction. The Guarantor agrees
that any judicial proceedings instituted in relation to any matter arising under
this Guarantee Agreement may be brought in any United States Federal or New York
State court sitting in the Borough of Manhattan, The City of New York, New York
to the extent that such court has subject matter jurisdiction over the
controversy, and, by execution and delivery of this Guarantee Agreement, the
Guarantor hereby irrevocably accepts, generally and unconditionally, the
jurisdiction of the aforesaid courts, acknowledges their competence and
irrevocably agrees to be bound by any judgment rendered in such proceeding. The
Guarantor also irrevocably and unconditionally waives for the benefit of the
Guarantee Trustee and the Holders any immunity from jurisdiction and any
immunity from legal process (whether through service or notice, attachment prior

     

     

    
      
        
        

      

      
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    to
judgment, attachment in the aid of execution, execution or otherwise) in respect
of this Guarantee Agreement. The Guarantor hereby irrevocably designates and
appoints, for the benefit of the Guarantee Trustee and the Holders for the term
of this Guarantee Agreement, PartnerRe U.S. Corporation, One Greenwich Plaza,
Greenwich, CT 06830-6352, as its agent to receive on its behalf service of all
process (with a copy of all such service of process to be delivered to Davis
Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, Attention:
Ethan T. James, Esq.) brought against it with respect to any such proceeding in
any such court in The City of New York, such service being hereby acknowledged
by the Guarantor to be effective and binding service on it in every respect
whether or not the Guarantor shall then be doing or shall have at any time done
business in New York. Such appointment shall be irrevocable so long as any of
the Securities or the obligations of the Guarantor hereunder remain outstanding,
or until the appointment of a successor located in New York or Connecticut by
the Guarantor and such successor’s acceptance of such appointment. Upon such
acceptance, the Guarantor shall notify the Guarantee Trustee in writing of the
name and address of such successor. The Guarantor further agrees for the benefit
of the Guarantee Trustee and the Holders to take any and all action, including
the execution and filing of any and all such documents and instruments, as may
be necessary to continue such designation and appointment of said PartnerRe U.S.
Corporation in full force and effect so long as any of the Notes or the
obligations of the Guarantor hereunder shall be outstanding. The Guarantee
Trustee shall not be obligated and shall have no responsibility with respect to
any failure by the Guarantor to take any such action. Nothing herein shall
affect the right to serve process in any other manner permitted by any law or
limit the right of the Guarantee Trustee or any Holder to institute proceedings
against the Guarantor in the courts of any other jurisdiction or
jurisdictions.

     

    Section
8.08.  Judgment
Currency.  The Guarantor agrees, to the fullest extent that it
may effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of any guarantee payment (the “Required Currency”) into a
currency in which a judgment will be rendered (the “Judgment Currency”), the rate
of exchange used shall be the rate at which in accordance with normal banking
procedures the Guarantee Trustee could purchase in The City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New
York Banking Day preceding the day on which a final unappealable judgment is
given and (b) its obligations under this Guarantee Agreement to make payments in
the Required Currency (i) shall not be discharged or satisfied by any tender, or
any recovery pursuant to any judgment (whether or not entered in accordance with
clause (a)), in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the actual receipt, by the
payee, of the full amount of the Required Currency expressed to be payable in
respect of such payments, (ii) shall be enforceable as an alternative or

     

     

    
      
        
        

      

      
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    additional
cause of action for the purpose of recovering in the Required Currency the
amount, if any, by which such actual receipt shall fall short of the full amount
of the Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Guarantee
Agreement.  For purposes of the foregoing, “New York Banking Day” means
any day except a Saturday, Sunday or a legal holiday in The City of New York or
a day on which banking institutions in The City of New York are authorized or
obligated by law, regulation or executive order to be closed.

     

    Section
8.09.  Waiver Of
Jury Trial.  EACH OF THE GUARANTOR AND THE GUARANTEE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS GUARANTEE.

     

    Section
8.10.  Force
Majeure.  In no event shall the Guarantee Trustee be
responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Guarantee Trustee shall use reasonable
efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

     

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    THIS
GUARANTEE AGREEMENT is executed as of the day and year first above
written.

     

     

    
      
        	
                PARTNERRE
      LTD.,

                as
      Guarantor

              	 
	 	 	 	 
	
                By:
      

              	 /s/ Albert
      Benchimol	 
	 	Name:	Albert
      Benchimol	 
	 	Title:	Executive
      Vice President and Chief Financial Officer	 

      

    

     

     

     

    
      	
              THE
      BANK OF NEW YORK,

              as
      Guarantee Trustee

            	 
	 	 	 	 
	
              By:
      

            	 /s/ Gregg
      Weissman	 
	 	Name:	Gregg
      Weissman	 
	 	Title:	Assistant
      Treasurer

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