Document:

Exhibit 4.3

SECOND SUPPLEMENTAL INDENTURE

          THIS SECOND
SUPPLEMENTAL INDENTURE (this “Second Supplemental
Indenture”) is dated as of November 30, 2012, among FLAGSTONE REINSURANCE HOLDINGS (BERMUDA)
LIMITED, a Bermuda exempted company (the “Successor Company”), FLAGSTONE
REINSURANCE HOLDINGS, S.A., a Luxembourg société anonyme, as successor in interest
to Flagstone Reinsurance Holdings Limited (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY,
NATIONAL ASSOCIATION, as successor in
interest to JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as trustee under
the Indenture referred to below (the “Trustee”).

W I T N E S S E T H :

          WHEREAS,
the Company has executed and delivered to the Trustee a Junior Subordinated
Indenture, dated as of August 23, 2006, between the Company and the Trustee, as supplemented by the First Supplemental
Indenture, dated as of May 17, 2010 (together, the “Indenture”), providing for the
issuance of its floating rate, unsecured junior subordinated deferrable
interest notes (the “Securities”);

          WHEREAS,
the Trustee has heretofore authenticated, and the Company has heretofore issued
$120,000,000 aggregate principal amount of Floating Rate Deferrable Interest
Subordinated Notes due 2036 under the Indenture; 

          WHEREAS, on
the date hereof, the Company will merge with and into the Successor Company,
with the Successor Company as the survivor (the “Merger”) pursuant to
that certain Agreement and Plan of Merger, dated as of August 30, 2012, among the
Company, the Successor Company, Validus Holdings, Ltd., a Bermuda exempted
company, and Validus UPS, Ltd., a Bermuda exempted company (the “Merger
Agreement”);

          WHEREAS, in
connection with the consummation of the transactions contemplated by the Merger
Agreement, the Successor Company will assume all of the obligations of the
Company under the Indenture and the Securities; 

          WHEREAS,
Section 8.1 of the Indenture provides, in part, that the Company may merge into any other Person or transfer
all or substantially all of its properties and assets as an entirety to another
Person provided that (a) (i) the Successor Company is an entity organized and
existing under the laws of the United States of America or any State or
Territory thereof, the District of Columbia, Bermuda, the Cayman Islands or any
country, which is a member state of the Organization for Economic Cooperation
and Development and (ii) the Successor Company expressly assumes, by an
indenture supplement executed and delivered to the Trustee, the due and
punctual payment of the principal of and any premium and interest (including
any Additional Interest) on all the Securities and the performance of every
covenant of the Indenture on the part of the Company to be performed or
observed; (b) immediately after giving effect to such transaction, no Event of

Default, and no event that, after notice or lapse of time, or both,
would constitute an Event of Default, shall have happened and be continuing;
and (c) an Officers’ Certificate and an Opinion of Counsel have been delivered
to the Trustee, each stating that such transfer and the supplemental indenture
comply with Article VIII of the Indenture and that all conditions precedent
provided for in the Indenture relating to such transfer have been complied
with;

          WHEREAS,
Section 9.1(a) of the Indenture provides that the Company and the Trustee may
amend the Indenture without notice or consent of any Holder to evidence the
succession of another Person to the Company and the assumption by such
successor of the covenants of the Company in the Indenture and in the
Securities;

          WHEREAS,
the Successor Company, pursuant to Section 8.1(c) and Section 9.3 of the
Indenture and in accordance with Section 1.2 of the Indenture, has delivered to
the Trustee, or caused to be delivered to the Trustee on its behalf, an Opinion
of Counsel and an Officers’ Certificate, dated as of the date hereof, stating
(a) that the Merger and this Second Supplemental Indenture each complies with
Article VIII of the Indenture, (b) that all conditions and covenants provided
for in the Indenture relating to the Merger have been complied with and (c)
that the execution of this Second Supplemental Indenture is authorized or
permitted by the Indenture and all conditions and covenants provided for in the
Indenture relating thereto have been complied with; and

          WHEREAS,
all things necessary (a) to authorize the assumption by the Successor Company
of the Company’s obligations under the Indenture and (b) to make this Second
Supplemental Indenture when executed by the parties hereto a valid and binding
amendment of and supplement to the Indenture have been done and performed.

          NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
mutually covenant and agree as follows:

1. Definitions. Capitalized terms used herein and not defined
herein have the meanings ascribed to such terms in the Indenture.

2. Assumption of Obligations. The Successor Company hereby
expressly assumes, from and after the date hereof, the due and punctual payment of the principal
of and any premium and interest (including any Additional Interest) on all the
Securities and the performance of every covenant of the Indenture on the part
of the Company to be performed or observed.

3. Succession and Substitution. The Successor Company, from and
after the date hereof, by virtue of the aforesaid assumption and the delivery
of this Second Supplemental Indenture, shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under the Indenture, and the Company
shall be discharged from all obligations and covenants under the Indenture and
the Securities.

4. Representation and Warranties. The Successor Company hereby represents and
warrants that (i) it has all necessary power and authority to execute and
deliver this Second Supplemental Indenture and to perform the covenants and
obligations of the Company under the Indenture and the Securities, (ii) it is
the successor of the Company pursuant to the Merger, (iii) it is a Bermuda 

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exempted company organized and existing under
the laws of Bermuda, (iv) both immediately before and after giving effect
to this Second Supplemental Indenture, no Event of Default, and no event that,
after notice or lapse of time or both, would consitute an Event of Default,
shall have happened and be continuing and (v) this Second Supplemental
Indenture is executed and delivered pursuant to Section 9.1(a) of the Indenture
and does not require consent of any Holders.

5. Effectiveness and Operativeness. This Second Supplemental
Indenture shall be deemed to have become effective, and the provisions provided
for in this Second Supplemental Indenture shall be deemed to have become
operative, immediately upon consummation of the Merger, provided, that:

          (a)
the Trustee shall have executed a counterpart of this Second Supplemental
Indenture and shall have received one or more counterparts of this Second
Supplemental Indenture executed by the Successor Company and the Company; 

          (b)
the Trustee shall have received the Officers’ Certificate and Opinion of
Counsel described in the recitals of this Second Supplemental Indenture; and

          (c)
the Trustee shall have received a copy of a Board Resolution of the Company
authorizing this Second Supplemental Indenture.

6. Ratification of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect.
This Second Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Securities heretofore or hereafter authenticated
and delivered shall be bound hereby.

7. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

8. Trustee Makes No Representations. The Trustee makes no
representation as to the validity or sufficiency of this Second Supplemental
Indenture. The recitals contained herein shall be taken as the statements of
the Successor Company and the Trustee assumes no responsibility for their
correctness.

9. Counterparts. The parties hereto may sign any number of
copies of this Second Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

10. Effect of Headings. The Section headings herein are for
convenience only and shall not effect the construction thereof.

* * * * *

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          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE REINSURANCE HOLDINGS 

 (BERMUDA) LIMITED

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ David A. Brown

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: David A. Brown

 
	
  

 	
  

 	
 Title:   Director

 

[Signature Page to Second Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE REINSURANCE HOLDINGS, S.A.

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ David A. Brown

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: David A. Brown

 
	
  

 	
  

 	
 Title:   Director

 

[Signature Page to
Second Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL
 ASSOCIATION, not in its individual capacity but solely as Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Kenneth Helbig

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Kenneth Helbig

 
	
  

 	
  

 	
 Title:   Vice President

 

[Signature Page to
Second Supplemental Indenture]Exhibit 4.4

THIRD SUPPLEMENTAL INDENTURE

          THIS THIRD
SUPPLEMENTAL INDENTURE (this “Third Supplemental
Indenture”) is dated as of November 30, 2012, among VALIDUS UPS,
LTD., a Bermuda exempted company (the “Successor Company”), VALIDUS
HOLDINGS, LTD., a Bermuda exempted company (the “Guarantor”), and THE
BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, as successor in
interest to JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as trustee under the
Indenture referred to below (the “Trustee”).

W I T N E S S E T H :

          WHEREAS,
Flagstone Reinsurance Holdings (Bermuda) Limited, a Bermuda exempted company
(the “Company”) (as
successor in interest to Flagstone Reinsurance Holdings, S.A., as successor in
interest to Flagstone Reinsurance Holdings Limited) has executed and delivered
to the Trustee a Junior Subordinated Indenture, dated as of August 23, 2006,
between the Company and the Trustee, as supplemented by the First Supplemental
Indenture, dated as of May 17, 2010, and the Second Supplemental Indenture,
dated as of November 30, 2012 (collectively, the “Indenture”), providing for the issuance of its floating rate,
unsecured junior subordinated deferrable interest notes (the “Securities”);

          WHEREAS,
the Trustee has heretofore authenticated, and the Company has heretofore issued
$120,000,000 aggregate principal amount of Floating Rate Deferrable Interest
Subordinated Notes due 2036 under the Indenture (the “Outstanding Notes”);

          WHEREAS, on
the date hereof, the Company will merge with and into the Successor Company, a
wholly-owned subsidiary of the Guarantor, with the Successor Company as the
survivor (the “Merger”) pursuant to that certain Agreement and Plan of
Merger, dated as of August 30, 2012, among Flagstone Reinsurance Holdings,
S.A., a Luxembourg société anonyme, the Company, the
Guarantor and the Successor Company (the “Merger Agreement”);

          WHEREAS, in
connection with the consummation of the transactions contemplated by the Merger
Agreement, the Successor Company will assume all of the obligations of the
Company under the Indenture and the Securities, and the Guarantor will provide
full and unconditional guarantees (the “Guarantees”) of the obligations
of the Successor Company under the Indenture and the Securities on the terms
and conditions set forth herein and therein; 

          WHEREAS,
Section 8.1 of the Indenture provides, in part, that the Company may merge into any other Person or transfer
all or substantially all of its properties and assets as an entirety to another
Person provided that (a) (i) the Successor Company is an entity organized and
existing under the laws of the United States of America or any State or
Territory thereof, the District of Columbia, Bermuda, the Cayman Islands or any
country, which is a member state of the Organization for Economic Cooperation
and Development and (ii) the Successor Company expressly assumes, by an
indenture supplement executed and delivered to the Trustee, the due and
punctual payment of 

the principal of and any premium and interest (including any Additional
Interest) on all the Securities and the performance of every covenant of the
Indenture on the part of the Company to be performed or observed; (b)
immediately after giving effect to such transaction, no Event of Default, and
no event that, after notice or lapse of time, or both, would constitute an
Event of Default, shall have happened and be continuing; and (c) an Officers’
Certificate and an Opinion of Counsel have been delivered to the Trustee, each
stating that such transfer and the supplemental indenture comply with
Article VIII of the Indenture and that all conditions precedent provided
for in the Indenture relating to such transfer have been complied with;

          WHEREAS,
Section 9.1 of the Indenture provides, in part, that the Company and the
Trustee may amend the Indenture without notice or consent of any Holder (a) to
evidence the succession of another Person to the Company and the assumption by
such successor of the covenants of the Company in the Indenture and in the
Securities and (b) to make or amend any provisions with respect to matters
or questions arising under the Indenture, which shall not be inconsistent with
the other provisions of the Indenture, provided, that such action shall not
adversely affect in any material respect the interests of any Holders;

          WHEREAS,
the Successor Company, pursuant to Section 8.1(c) and Section 9.3 of the
Indenture and in accordance with Section 1.2 of the Indenture, has delivered to
the Trustee, or caused to be delivered to the Trustee on its behalf, an Opinion
of Counsel and an Officers’ Certificate, dated as of the date hereof, stating
(a) that the Merger and this Third Supplemental Indenture each complies with
Article VIII of the Indenture, (b) that all conditions and covenants provided
for in the Indenture relating to the Merger have been complied with and (c)
that the execution of this Third Supplemental Indenture is authorized or
permitted by the Indenture and all conditions and covenants provided for in the
Indenture relating thereto have been complied with; and

          WHEREAS,
all things necessary (a) to authorize the assumption by the Successor Company
of the Company’s obligations under the Indenture, (b) to authorize the
Guarantor’s Guarantees of the obligations of the Successor Company under the
Indenture and the Securities and (c) to make this Third Supplemental Indenture
when executed by the parties hereto a valid and binding amendment of and
supplement to the Indenture have been done and performed.

          NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
mutually covenant and agree as follows:

1. Definitions. Capitalized terms used herein and not defined
herein have the meanings ascribed to such terms in the Indenture.

2. Assumption of Obligations. The Successor Company hereby
expressly assumes, from and after the date hereof, the due and punctual payment
of the principal of and any premium and interest (including any Additional
Interest) on all the Securities and the performance of every covenant of the
Indenture on the part of the Company to be performed or observed.

3. Succession and Substitution. The Successor Company, from and
after the date hereof, by virtue of the aforesaid assumption and the delivery
of this Third Supplemental Indenture, shall 

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succeed to, and be substituted for, and may exercise every right and
power of, the Company under the Indenture, and the Company shall be discharged
from all obligations and covenants under the Indenture and the Securities.

4. Guarantee.

          The
following Sections 13.1 through and including Section 13.8 shall be added as a
new Article XIII of the Indenture, and shall hereinafter be deemed a part of
the Indenture and applicable to the Outstanding Notes. The following definition
shall apply to Article XIII of the Indenture, as amended hereby: “Guarantor”
shall mean Validus Holdings, Ltd., a Bermuda exempted company.

          Section
13.1. Guarantees.

          (a) With
respect to each series of Securities to which this Article XIII is
expressly made applicable, the Guarantor hereby unconditionally and irrevocably
guarantees to each Holder and to the Trustee and its successors and assigns
(i)(a) the full and punctual payment of principal and interest (including any
Additional Interest) on the Securities of such Holder when due, whether at
maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Company to the Holders and the Trustee under this Indenture
and the Securities and (b) the full and punctual performance within applicable
grace periods of all other obligations of the Company under this Indenture and
the Securities and (ii) in the case of any extension of time of payment or
renewal of any Securities or any of such other obligations, that the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal (all of the foregoing being hereinafter collectively
called the “Guarantees”).

          (b) The
Guarantor waives presentation to, demand of, payment from and protest to the
Company of any of the Guarantees and also waives notice of protest for
nonpayment. The Guarantor waives notice of any default under the Securities or
the Guarantees. The Guarantees hereunder shall not be affected by (i) the
failure of any Holder or the Trustee to assert any claim or demand or to
enforce any right or remedy against the Company or any other Person under this
Indenture, the Securities or any other agreement or otherwise; (ii) any
extension or renewal of any thereof; (iii) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Indenture, the
Securities or any other agreement; (iv) the release of any security held by any
Holder or the Trustee for the Guarantees or any of them; (v) the failure of any
Holder or Trustee to exercise any right or remedy against any other guarantor
of the Guarantees or (vi) any change in the ownership of the Guarantor.

          (c) The
Guarantor further agrees that its Guarantees hereunder constitute a guarantee
of payment, performance and compliance when due (and not a guarantee of
collection).

          (d) The
Guarantor hereby agrees that its obligations hereunder shall be as principal
and not merely as surety, and shall be absolute and unconditional, irrespective
of, and shall be unaffected by, any invalidity, irregularity or failure to
enforce the provisions of any Security or this Indenture, or any waiver,
modification, consent or indulgence granted to the Company with respect thereto
(unless the same shall also be provided the Guarantor), by the Holder of any
Security or the Trustee, the recovery of any judgment against the Company or
any action to 

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enforce the same, or any other circumstances which may otherwise
constitute a legal or equitable discharge of a surety or guarantor; provided
that, notwithstanding the foregoing, no such waiver, modification, indulgence
or circumstance shall, without the consent of the Guarantor, increase the
principal amount of a Security or the interest rate thereon or increase any
premium payable upon redemption thereof. The Guarantees shall not be subject to
any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall
not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantees or otherwise. Without limiting the
generality of the foregoing, the Guarantor covenants that the Guarantees shall
not be discharged or impaired or otherwise affected by the failure of any
Holder or the Trustee to assert any claim or demand or to enforce any remedy under
this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the obligations, or by any other act or thing
or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of the Guarantor or would otherwise
operate as a discharge of the Guarantor as a matter of law or equity.

          (e) The
Guarantor further agrees that the Guarantees shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof,
of principal, premium, if any, or interest on any Security is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or
reorganization of the Company or otherwise.

          (f) In
furtherance of the foregoing and not in limitation of any other right which any
Holder or the Trustee has at law or in equity against the Guarantor by virtue
hereof, upon the failure of the Company to pay the principal of, premium on, if
any, or interest on any Security when and as the same shall become due, whether
at maturity, by acceleration, by redemption or otherwise, or to perform or
comply with any other obligation under the Securities, the Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Holders or the Trustee an amount
equal to the sum of (i) the unpaid amount of such obligations under such
Securities, (ii) accrued and unpaid interest on such obligations under such
Securities (but only to the extent not prohibited by law) and (iii) all other
monetary obligations with respect to such Securities and under the Indenture of
the Company to the Holders and the Trustee.

          (g) The Guarantor will be subrogated to all rights of the Holders
against the Company in respect of any amount paid by the Guarantor pursuant to
the provisions of the Guarantees; provided, however, that the Guarantor shall
not be entitled to enforce, or to receive any payments arising out of or based
upon, such right of subrogation until the principal of, premium on, if any, and
interest on such Securities shall have been paid in full. The Guarantor further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of the obligations with respect to the
Securities hereby may be accelerated as provided herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations with respect to such Securities, and (y) in the event of any
declaration of acceleration of such obligations as provided herein, the
Guarantees (whether or not due and payable) shall forthwith become due and payable
by the Guarantor for the purposes of this Article XIII.

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          (h) The
Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Trustee or any Holder
in enforcing any rights under this Article XIII.

          Section
13.2. Successors and Assigns.

          This Article
XIII shall be binding upon the Guarantor and its successors and assigns and
shall inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

          Section
13.3. No Waiver.

          Neither a
failure nor a delay on the part of either the Trustee or the Holders in
exercising any right, power or privilege under this Article XIII shall
operate as a waiver thereof, nor shall a single or partial exercise thereof
preclude any other or further exercise of any right, power or privilege. The
rights, remedies and benefits of the Trustee and the Holders herein expressly
specified are cumulative and not exclusive of any other rights, remedies or
benefits which either may have under this Article XIII at law, in
equity, by statute or otherwise.

          Section
13.4. Modification.

          No
modification, amendment or waiver of any provision of this Article XIII,
nor the consent to any departure by the Guarantor therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Trustee, and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. No notice to or demand on the Guarantor in
any case shall entitle the Guarantor to any other or further notice or demand
in the same, similar or other circumstances.

          Section
13.5. Notation of Guarantees Not Required.

          The
Guarantor hereby agrees that the Guarantees set forth in this Article XIII
shall remain in full force and effect notwithstanding the absence on any
Security of a notation relating to the Guarantees.

          Section
13.6. Benefits Acknowledged.

          The
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the
guarantees and waivers made by it pursuant to its Guarantees are knowingly made
in contemplation of such benefits. 

          Section
13.7. Release of Guarantees.

          Provided
that no notice that an Event of Default has occurred and is continuing has been
delivered to the Holders, the Guarantees shall be automatically and unconditionally
released and discharged, and no further action by the Guarantor, the Company or
the Trustee is required for 

5

the release of the Guarantees, upon the Company delivering to the
Trustee an Officers’ Certificate stating that the Guarantees are released in
full.

          Section
13.8 Limitation on Guarantor Liability.

          The
Guarantor, and by its acceptance of Securities, each Holder, hereby confirms
that it is the intention of all such parties that the Guarantees of the
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Title 11, U.S. Code or any similar federal, state or foreign law for the relief
of debtors, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal, state or foreign law to the extent
applicable to the Guarantees. To effectuate the foregoing intention, the
Trustee, the Holders and the Guarantor hereby irrevocably agree that the
obligations of the Guarantor shall be limited to the maximum amount as will, after
giving effect to such maximum amount and all other contingent and fixed
liabilities of the Guarantor that are relevant under such laws and after giving
effect to any collections from, result in the obligations of the Guarantor
under its Guarantees not constituting a fraudulent conveyance or fraudulent
transfer under applicable law.

5. Subordination of Guarantees.

          The
following Sections 14.1 through and including Section 14.12 shall be added as a
new Article XIV of the Indenture, and shall hereinafter be deemed a part of the
Indenture and applicable to the Outstanding Notes.

          Section
14.1. Securities Subordinate to Senior Debt of the Guarantor.

          The
Guarantor covenants and agrees, and each Holder of a Security, by its acceptance
thereof, likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article XIV, the payment of the principal
of and any premium and interest (including any Additional Interest) on each and
all of the Securities pursuant to the Guarantees are hereby expressly made
subordinate and subject in right of payment to the prior payment in full of all
Senior Debt of the Guarantor.

          Section
14.2. No Payment When Senior Debt of the Guarantor in Default; Payment Over
of Proceeds Upon Dissolution, Etc.

          In the
event and during the continuation of any default by the Guarantor in the
payment of any principal of or any premium or interest on any Senior Debt of
the Guarantor (following any grace period, if applicable) when the same becomes
due and payable, whether at maturity or at a date fixed for redemption or by
declaration of acceleration or otherwise, then, upon written notice of such
default to the Guarantor by the holders of such Senior Debt of the Guarantor or
any trustee therefor, unless and until such default shall have been cured or
waived or shall have ceased to exist, no direct or indirect payment (in cash,
property, securities, by set-off or otherwise) shall be made or agreed to be
made pursuant to the Guarantees on account of the principal of or any premium
or interest (including any Additional Interest) on any of the Securities, or in
respect of any redemption, repayment, retirement, purchase or other acquisition
of any of the Securities.

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          In the
event of a bankruptcy, insolvency or other proceeding involving the Guarantor
described in clause (d) or (e) of the definition of Event of Default (each such
event, if any, herein sometimes referred to as a “Proceeding”), all Senior
Debt of the Guarantor (including any interest thereon accruing after the
commencement of any such proceedings) shall first be paid in full before any
payment or distribution, whether in cash, securities or other property, shall
be made to any Holder of any of the Securities on account thereof pursuant to
the Guarantees. Any payment or distribution, whether in cash, securities or
other property (other than securities of the Guarantor or any other entity
provided for by a plan of reorganization or readjustment the payment of which
is subordinate, at least to the extent provided in these subordination
provisions with respect to the indebtedness evidenced by the Guarantees, to the
payment of all Senior Debt of the Guarantor at the time outstanding and to any
securities issued in respect thereof under any such plan of reorganization or
readjustment), which would otherwise (but for these subordination provisions)
be payable or deliverable in respect of the Securities pursuant to the
Guarantees shall be paid or delivered directly to the holders of Senior Debt of
the Guarantor in accordance with the priorities then existing among such
holders until all Senior Debt of the Guarantor (including any interest thereon
accruing after the commencement of any Proceeding) shall have been paid in
full.

          Section
14.3. Payment Permitted If No Default.

          Nothing
contained in this Article XIV or elsewhere in this Indenture or in any
of the Securities shall prevent (a) the Guarantor, at any time, except during
the pendency of the conditions described in paragraph (a) of Section 14.2
or of any Proceeding referred to in Section 14.2, from making
payments at any time of principal of and any premium or interest (including any
Additional Interest) on the Securities pursuant to the Guarantees or (b) the
application by the Trustee of any moneys deposited with it hereunder to the
payment of or on account of the principal of and any premium or interest
(including any Additional Interest) on the Securities pursuant to the
Guarantees or the retention of such payment by the Holders, if, at the time of
such application by the Trustee, it did not have knowledge (in accordance with Section 14.8)
that such payment would have been prohibited by the provisions of this Article XIV,
except as provided in Section 14.8.

          Section
14.4. Subrogation to Rights of Holders of Senior Debt of the Guarantor.

          Subject to
the payment in full of all amounts due or to become due on all Senior Debt of
the Guarantor, or the provision for such payment in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of Senior Debt of the
Guarantor, the Holders of the Securities shall be subrogated to the extent of
the payments or distributions made to the holders of such Senior Debt of the Guarantor
pursuant to the provisions of this Article XIV (equally and ratably with
the holders of all indebtedness of the Guarantor that by its express terms is
subordinated to Senior Debt of the Guarantor to substantially the same extent
as the Guarantees are subordinated to the Senior Debt of the Guarantor and are
entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt of the Guarantor) to the
rights of the holders of such Senior Debt of the Guarantor to receive payments and distributions of cash,
property and securities applicable to the Senior Debt of the Guarantor until
the principal of and any premium and interest (including any Additional
Interest) on the Securities shall be paid in full. For purposes of such
subrogation, no payments or distributions to the holders of the Senior

7

Debt of the Guarantor of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled under the Guarantees except for the
provisions of this Article XIV, and no payments made pursuant to
the provisions of this Article XIV to the holders of Senior Debt of the
Guarantor by Holders of the Securities or the Trustee, shall, as among the
Guarantor, its creditors other than holders of Senior Debt of the Guarantor,
and the Holders of the Securities, be deemed to be a payment or distribution by
the Guarantor to or on account of the Senior Debt of the Guarantor.

          Section
14.5. Provisions Solely to Define Relative Rights.

          The
provisions of this Article XIV are and are intended solely for the
purpose of defining the relative rights of the Holders of the Securities under
the Guarantees on the one hand and the holders of Senior Debt of the Guarantor
on the other hand. Nothing contained in this Article XIV or
elsewhere in this Indenture or in the Securities is intended to or shall (a)
impair, as between the Guarantor and the Holders of the Securities, the
obligations of the Guarantor under the Guarantees, which are absolute and
unconditional, to pay to the Holders of the Securities the principal of and any
premium and interest (including any Additional Interest) on the Securities as
and when the same shall become due and payable in accordance with their terms,
(b) affect the relative rights against the Guarantor of the Holders of the
Securities under the Guarantees and creditors of the Guarantor other than their
rights in relation to the holders of Senior Debt of the Guarantor or (c)
prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
including filing and voting claims in any Proceeding, subject to the rights, if
any, under this Article XIV of the holders of Senior Debt of the
Guarantor to receive cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder. In addition, nothing contained in
this Article XIV is intended to or shall apply to or affect any amounts
payable or paid to the Trustee (including in its individual capacity) pursuant
to Sections 1.15 or 6.6.

          Section
14.6. Trustee to Effectuate Subordination.

          Each Holder
of a Security by such Holder’s acceptance thereof authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination provided in this Article
XIV and appoints the Trustee such Holder’s attorney-in-fact for any and all
such purposes.

          Section
14.7. No Waiver of Subordination Provisions.

          No
right of any present or future holder of any Senior Debt of the Guarantor to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the
Guarantor or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Guarantor with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof that any such
holder may have or be otherwise charged with.

          Without
in any way limiting the generality of paragraph (a) of this Section 14.7,
the holders of Senior Debt of the Guarantor may, at any time and from to time,
without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to 

8

such Holders of the Securities and without
impairing or releasing the subordination provided in this Article XIV or
the obligations hereunder of such Holders of the Securities to the holders of
Senior Debt of the Guarantor, do any one or more of the following: (i) change
the manner, place or terms of payment or extend the time of payment of, or
renew or alter, Senior Debt of the Guarantor, or otherwise amend or supplement
in any manner Senior Debt of the Guarantor or any instrument evidencing the
same or any agreement under which Senior Debt of the Guarantor is outstanding,
(ii) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Senior Debt of the Guarantor, (iii) release any
Person liable in any manner for the payment of Senior Debt of the Guarantor and
(iv) exercise or refrain from exercising any rights against the Guarantor and
any other Person.

          Section
14.8. Notice to Trustee.

          The
Guarantor shall give prompt written notice to a Responsible Officer of the
Trustee of any fact known to the Guarantor that would prohibit the making of
any payment to or by the Trustee in respect of the Securities pursuant to the
Guarantees. Notwithstanding the provisions of this Article XIV or any
other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment to or by the Trustee in respect of the Securities pursuant to the
Guarantees, unless and until a Responsible Officer of the Trustee shall have
received written notice thereof from the Guarantor or a holder of Senior Debt
of the Guarantor or from any trustee, agent or representative therefor; provided, that if the Trustee shall not
have received the notice provided for in this Section 14.8 at least two
Business Days prior to the date upon which by the terms hereof any monies may
become payable for any purpose (including, the payment of the principal of and
any premium on or interest (including any Additional Interest) on any Security
pursuant to the Guarantees), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such monies and to apply the same to the purpose for which they were received
and shall not be affected by any notice to the contrary that may be received by
it within two Business Days prior to such date.

          The
Trustee shall be entitled to rely on the delivery to it of a written notice by
a Person representing himself or herself to be a holder of Senior Debt of the
Guarantor (or a trustee, agent, representative or attorney-in-fact therefor) to
establish that such notice has been given by a holder of Senior Debt of the
Guarantor (or a trustee, agent, representative or attorney-in-fact therefor).
In the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior Debt of
the Guarantor to participate in any payment or distribution pursuant to this Article
XIV, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt of the
Guarantor held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article XIV, and if such evidence
is not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

          Section
14.9. Reliance on Judicial Order or Certificate of Liquidating Agent.

          Upon any
payment or distribution of assets of the Guarantor referred to in this Article XIV,
the Trustee and the Holders of the Securities shall be entitled to conclusively
rely 

9

upon any order or decree entered by any court of competent jurisdiction
in which such Proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of
creditors, agent or other Person making such payment or distribution, delivered
to the Trustee or to the Holders of Securities, for the purpose of ascertaining
the Persons entitled to participate in such payment or distribution, the
holders of the Senior Debt of the Guarantor and other indebtedness of the
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
XIV.

          Section
14.10. Trustee Not Fiduciary for Holders of Senior Debt of the Guarantor.

          The
Trustee, in its capacity as trustee under this Indenture, shall not be deemed
to owe any fiduciary duty to the holders of Senior Debt of the Guarantor and
shall not be liable to any such holders if it shall in good faith mistakenly
pay over or distribute to Holders of Securities or to the Guarantor or to any
other Person cash, property or securities to which any holders of Senior Debt
of the Guarantor shall be entitled by virtue of this Article XIV or
otherwise.

          Section
14.11. Rights of Trustee as Holder of Senior Debt of the Guarantor;
Preservation of Trustee’s Rights.

          The Trustee
in its individual capacity shall be entitled to all the rights set forth in
this Article XIV with respect to any Senior Debt of the Guarantor that
may at any time be held by it, to the same extent as any other holder of Senior
Debt of the Guarantor, and nothing in this Indenture shall deprive the Trustee
of any of its rights as such holder. 

          Section
14.12. Article Applicable to Paying Agents.

          If at any
time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article XIV shall in such
case (unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article XIV in
addition to or in place of the Trustee; provided,
that Sections 14.8 and 14.11 shall not apply to the
Guarantor or any Affiliate of the Guarantor if the Company or such Affiliate
acts as Paying Agent.

6. Representations and Warranties.

          (a) The
Successor Company hereby represents and warrants that (i) it has all necessary
power and authority to execute and deliver this Third Supplemental Indenture
and to perform the covenants and obligations of the Company under the Indenture
and the Securities, (ii) it is the successor of the Company pursuant to the
Merger, (iii) it is a Bermuda exempted company organized and existing under the
laws of Bermuda, (iv) both immediately before and after giving effect to
this Third Supplemental Indenture, no Event of Default, and no event that,
after notice or lapse of time or both, would consitute an Event of Default,
shall have happened and be continuing and (v) this Third Supplemental Indenture
is executed and delivered pursuant to Section 9.1(a) of the Indenture and does
not require consent of any Holders.

10

          (b) The
Guarantor hereby represents and warrants that (i) it has all necessary power
and authority to execute and deliver this Third Supplemental Indenture and to
perform its obligations under the terms of the Guarantees contemplated hereby,
(ii) it is a corporation organized and existing under the laws of Bermuda and
(iii) this Third Supplemental Indenture is executed and delivered pursuant to
Section 9.1(b) of the Indenture and does not require the consent of any
Holders.

7. Submission to Jurisdiction.

          (a) The
Successor Company agrees that any judicial proceedings instituted in relation
to any matter arising under the Indenture, this Third Supplemental Indenture or
the Securities 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 Third Supplemental
Indenture, the Successor Company 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.

          (b) The
Guarantor agrees that any judicial proceedings instituted in relation to any
matter arising under the Guarantees 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 Third Supplemental
Indenture, 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.

8. Effectiveness and Operativeness. This Third Supplemental
Indenture shall be deemed to have become effective, and the provisions provided
for in this Third Supplemental Indenture shall be deemed to have become
operative, immediately upon consummation of the Merger, provided, that:

          (a) the
Trustee shall have executed a counterpart of this Third Supplemental Indenture
and shall have received one or more counterparts of this Third Supplemental
Indenture executed by the Successor Company and the Guarantor; 

          (b) the
Trustee shall have received the Officers’ Certificate and Opinion of Counsel
described in the recitals of this Third Supplemental Indenture; and

          (c) the
Trustee shall have received a copy of a Board Resolution of the Company
authorizing this Third Supplemental Indenture.

9. Ratification of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect.
This Third Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Securities heretofore or hereafter authenticated
and delivered shall be bound hereby.

11

10. Governing Law. THIS THIRD SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

11. Trustee Makes No Representations. The Trustee makes no
representation as to the validity or sufficiency of this Third Supplemental
Indenture. The recitals contained herein shall be taken as the statements of
the Successor Company and the Guarantor and the Trustee assumes no
responsibility for their correctness.

12. Counterparts. The parties hereto may sign any number of
copies of this Third Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

13. Effect of Headings. The Section headings herein are for
convenience only and shall not effect the construction thereof.

14. Addresses for Notices. All notices or other communications
to be addressed to the Company as contemplated by Section 1.5 of the Indenture
shall be addressed as follows:

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 if to the
 Successor Company:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Validus UPS,
 Ltd.

 
	
  

 	
  

 	
 29 Richmond
 Road

 
	
  

 	
  

 	
 Pembroke HM
 08, Bermuda

 
	
  

 	
  

 	
 Attention:
 Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 with a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Validus UPS,
 Ltd.

 
	
  

 	
  

 	
 29 Richmond Road

 
	
  

 	
  

 	
 Pembroke HM
 08, Bermuda

 
	
  

 	
  

 	
 Attention:
 General Counsel

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if to the
 Guarantor:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Validus
 Holdings, Ltd.

 
	
  

 	
  

 	
 29 Richmond
 Road

 
	
  

 	
  

 	
 Pembroke HM
 08, Bermuda

 
	
  

 	
  

 	
 Attention:
 Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 with a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Validus
 Holdings, Ltd.

 
	
  

 	
  

 	
 29 Richmond
 Road

 
	
  

 	
  

 	
 Pembroke HM
 08, Bermuda

 
	
  

 	
  

 	
 Attention:
 General Counsel

 

*   *   *   *   *

12

          IN WITNESS
WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VALIDUS UPS,
 LTD

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/
 Jeffrey D. Sangster

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:
 Jeffrey D. Sangster

 
	
  

 	
  

 	
 Title:   Chief Financial Officer

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VALIDUS
 HOLDINGS, LTD.

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/
 Joseph E. Consolino

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Joseph
 E. Consolino

 
	
  

 	
  

 	
 Title:   President and Chief Financial Officer

 

[Signature Page to Third Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual
 capacity but solely as Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Kenneth Helbig

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Kenneth Helbig

 
	
  

 	
  

 	
 Title:   Vice President

 

[Signature Page to Third Supplemental Indenture]

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