Document:

NEWS CORPORATION

NEWS CORPORATION 

2005 LONG-TERM INCENTIVE PLAN 

ARTICLE I

GENERAL

Section 1.1 Purpose. 

The purpose of the News Corporation 2005 Long-Term Incentive Plan (the "Plan") is to benefit and advance the interests of News Corporation, a Delaware corporation (the "Company"), and its subsidiaries by making awards to certain employees, directors and other service providers of the Company and its subsidiaries as an additional incentive for them to make contributions to the financial success of the Company. 

Section 1.2 Definitions. 

As used in the Plan, the following terms shall have the following meanings:  

(a) "Administrator" shall mean the individual or individuals to whom the Committee delegates authority under the Plan in accordance with Section 1.3(c). 

(b) "Affiliate" shall mean, with respect to the Company, any company or other trade or business that controls, is controlled by or is under common control with the Company, including, without limitation, any subsidiary; provided, that solely for the purposes of the Plan there shall be a presumption of control by the Company if the Company owns more than 20% of the value, or more than 20% of the combined voting power, of the other trade or business. 

(c) "Agreement" shall mean the written agreement or certificate or other documentation governing an Award under the Plan, which shall contain terms and conditions not inconsistent with the Plan and which shall incorporate the Plan by reference. 

(d) "Awards" shall mean any Stock Options, Stock Appreciation Rights, Restricted Shares, Restricted Share Units, unrestricted shares of Common Stock, Dividend Equivalents, Performance Awards or Other Awards or a combination of any of the above. 

(e) "Board" shall mean the Board of Directors of the Company. 

(f) "Code" shall mean the Internal Revenue Code of 1986, as amended, including any successor law thereto, and the rules and regulations promulgated thereunder. 

(g) "Committee" shall mean the Compensation Committee of the Board (or such other Committee(s) as may be appointed or designated by the Board) to administer the Plan in accordance with Section 1.3 of the Plan. 

(h) "Common Stock" shall mean shares of Class A Common Stock, par value $0.01 per share, of the Company. 

(i) "Date of Grant" shall mean the effective date of the grant of an Award as set forth in the applicable Agreement. 

(j) "Dividend Equivalent" shall mean a right to receive a payment based upon the value of the regular cash dividend paid on a specified number of shares of Common Stock as set forth in Section 6.1 hereof. Payments in respect of Dividend Equivalents may be in cash, or, in the discretion of the Committee, in shares of Common Stock or in a combination of cash or shares of Common Stock. 

(k) "Effective Date" shall mean May 17, 2005. 

(l) "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, including any successor law thereto. 

(m) "Expiration Date" shall mean the earlier to occur of (A) the expiration of the option period or Stock Appreciation Right period set forth in the applicable Agreement or (B) the tenth anniversary of the Date of Grant of the Stock Option or SAR. 

(n) "Fair Market Value" of a share of Common Stock on a given date shall mean, unless otherwise determined by the Committee, the 4:00 p.m. (New York time) closing price on such date (or if no closing price was reported on that date, as applicable, on the preceding business day) on the New York Stock Exchange or other principal stock exchange on which the Common Stock is then listed, as reported by The Wall Street Journal (Northeast edition) or any other authoritative source selected by the Company. If the Common Stock is not listed on such an exchange, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Common Stock as determined by the Board in good faith. 

(o) "GAAP" shall mean generally accepted accounting principles in the United States. 

(p) "Other Awards" shall mean any form of award authorized under Section 6.2 of the Plan, other than a Stock Option, Stock Appreciation Right, Restricted Share, Restricted Share Unit, unrestricted share of Common Stock, Performance Award or Dividend Equivalent. 

(q) "Outstanding Stock Option" shall mean a Stock Option granted to a Participant which has not yet been exercised and which has not yet expired or been terminated in accordance with its terms. 

(r) "Outstanding Stock Appreciation Right" shall mean a Stock Appreciation Right granted to a Participant which has not yet been exercised and which has not yet expired or been terminated in accordance with its terms. 

(s) "Participant" shall mean any employee, director or other Service Provider of the Company or any Affiliate who has met the eligibility requirements set forth in Section 1.4 hereof and to whom an Award has been made under the Plan. 

(t) "Performance Award" shall mean any award of Performance Shares or Performance Units pursuant to Article V hereof. 

(u) "Performance Goals" shall have the meaning set forth in Section 5.2 hereof. 

(v) "Performance Period" shall mean a period of time of at least one year over which performance is measured as determined by the Committee in its sole discretion. 

(w) "Performance Share" shall mean an award granted pursuant to Article V hereof of a share of Common Stock subject to the terms and conditions set forth in the applicable Agreement. 

(x) "Performance Units" shall mean an award granted pursuant to Article V hereof, payable in cash, or, in the discretion of the Committee, in shares of Common Stock or in a combination of cash or shares of Common Stock, subject to the terms and conditions set forth in the Plan and in the applicable Agreement. 

(y) "Permanent Disability" shall have the same meaning as such term or a similar term has in the long-term disability policy maintained by the Company or an Affiliate thereof for the Participant and that is in effect on the date of the onset of the Participant's Permanent Disability, unless the Committee determines otherwise, in its discretion; provided, however, with respect to grants of Incentive Stock Options, permanent disability shall have the meaning given it under the rules governing Incentive Stock Options under the Code. 

(z) "Restricted Share" shall mean a share of Common Stock granted to a Participant pursuant to Article III, which is subject to the restrictions set forth in Section 3.3 hereof and to such other terms, conditions and restrictions as are set forth in the Plan and the applicable Agreement. 

(aa) "Restricted Share Unit" shall mean a contractual right granted to a Participant pursuant to Article IV to receive, in the discretion of the Committee, shares of Common Stock, a cash payment equal to the Fair Market Value of Common Stock or a combination of cash or shares of Common Stock, subject to the terms and conditions set forth in the Plan and in the applicable Agreement. 

(bb) "Retirement" shall mean the resignation or termination of employment after attainment of age 60 with ten years of service with the Company or any of its Affiliates. 

(cc) "Section 162(m)" shall mean Section 162(m) of the Code and the rules and regulations promulgated thereunder from time to time. 

(dd) "Section 162(m) Exception" shall mean the exception under Section 162(m) and the regulations thereunder for "qualified performance-based compensation." 

(ee) "Section 162(m) Performance Goals" shall have the meaning set forth in Section 5.2 hereof. 

(ff) "Service" shall mean service as a Service Provider to the Company or any of its Affiliates. A change in position or duties shall not result in interrupted or terminated Service, so long as the Participant continues to be a Service Provider. Whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Committee, whose determination shall be final, binding and conclusive. 

(gg) "Service Provider" shall mean an employee, officer or director of the Company or an Affiliate, or a consultant or adviser currently providing services to the Company or an Affiliate. 

(hh) "Stock Appreciation Right" shall mean a contractual right granted to a Participant pursuant to Article II to receive an amount determined in accordance with Section 2.6 of the Plan, subject to such other terms and conditions as are set forth in the Plan and the applicable Agreement. 

(ii) "Stock Option" shall mean a contractual right granted to a Participant pursuant to Article II to purchase shares of Common Stock at such time and price, and subject to such other terms and conditions as are set forth in the Plan and the applicable Agreement. Stock Options may be "Incentive Stock Options" within the meaning of Section 422 of the Code or "Non-Qualified Stock Options" which do not meet the requirements of such Code section. 

(jj) "Substitute Awards" shall mean Awards granted upon assumption of, or in substitution for, outstanding awards previously granted by a company or other entity acquired by the Company or with which the Company combines. 

(kk) "Termination for Cause" shall mean a termination of Service with the Company or any of its Affiliates which, as determined by the Committee, is by reason of (i) "cause" as such term or a similar term is defined in any employment agreement that is in effect and applicable to the Participant, (ii) if there is no such employment agreement or if such employment agreement contains no such term, unless the Committee determines otherwise, the Participant's: (A) conviction of embezzlement, fraud or other conduct which would constitute a felony; (B) willful unauthorized disclosure of confidential information; (C) failure, neglect of or refusal to substantially perform the duties of the Participant's employment; or (D) any other act or omission which is a material breach of the Company's policies regarding employment practices including, without limitation, the Company's Standards of Business Conduct or the applicable federal, state and local laws prohibiting discrimination or which is materially injurious to the financial condition or business reputation of the Company or any Affiliate thereof, or (iii) in the case of a Service Provider who is not an employee of the Company or any Affiliate, actions by the Service Provider that would justify a Termination for Cause if the Service Provider was an employee. 

Section 1.3 Administration of the Plan. 

(a) Board or Committee to Administer. The Plan shall be administered by the Board or by a Committee appointed by the Board, consisting of at least two members of the Board; provided that, with respect to any Award that is intended to satisfy the requirements of the Section 162(m) Exception, such Committee shall consist of at least such number of directors as is required from time to time to satisfy the Section 162(m) Exception, and each such Committee member shall satisfy the qualification requirements of such exception; provided, however, that, if any such Committee member is found not to have met the qualification requirements of the Section 162(m) Exception, any actions taken or Awards granted by the Committee shall not be invalidated by such failure to so qualify. 

(b) Powers of the Committee. 
 

(i) The Committee shall adopt such rules as it may deem appropriate in order to carry out the purpose of the Plan. All questions of interpretation, administration and application of the Plan shall be determined by a majority of the members of the Committee then in office, except that the Committee may authorize any one or more of its members, any officer or other designee of the Company, to execute and deliver documents on behalf of the Committee. The determination of such majority shall be final and binding as to all matters relating to the Plan. 

(ii) The Committee shall have authority to select Participants from among the class of eligible persons specified in Section 1.4 below, to determine the type of Award to be granted, to determine the number of shares of Common Stock subject to an Award or the cash amount payable in connection with an Award, and to determine the terms and conditions of each Award in accordance with the terms of the Plan. Except as provided in Section 2.5, 2.6(d) and Section 5.4, the Committee shall also have the authority to amend the terms of any outstanding Award or waive any conditions or restrictions applicable to any Award; provided, however, that no amendment shall materially impair the rights of the holder thereof without the holder's consent. With respect to any restrictions in the Plan or in any Agreement that are based on the requirements of Section 422 of the Code, the Section 162(m) Exception, the rules of any exchange upon which the Company's securities are listed, or any other applicable law, rule or restriction to the extent that any such restrictions are no longer required, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such restrictions and/or to waive any such restrictions with respect to outstanding Awards. 

 

(c) Delegation by the Committee. The Committee may, but need not, from time to time delegate, to the extent permitted by law, some or all of its authority under the Plan to an Administrator consisting of one or more members of the Committee or of one or more officers of the Company; provided, however, that the Committee may not delegate its authority (i) to make Awards to employees (A) who are subject on the date of the Award to the reporting rules under Section 16(a) of the Exchange Act, (B) whose compensation for such fiscal year may be subject to the limit on deductible compensation pursuant to Section 162(m) or (C) who are officers of the Company who are delegated authority by the Committee hereunder, or (ii) to interpret the Plan or any Award, or (iii) under Article IX of the Plan. Any delegation hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation or thereafter. Nothing in the Plan shall be construed as obligating the Committee to delegate authority to an Administrator, and the Committee may at any time rescind the authority delegated to an Administrator appointed hereunder or appoint a new Administrator. At all times, the Administrator appointed under this Section 1.3(c) shall serve in such capacity at the pleasure of the Committee. Any action undertaken by the Administrator in accordance with the Committee's delegation of authority shall have the same force and effect as if undertaken directly by the Committee, and any reference in the Plan to the Committee shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to the Administrator. 

Section 1.4 Eligible Persons. 

Awards may be granted to any employee, director or other Service Provider of the Company or any of its Affiliates. 

Section 1.5 Common Stock Subject to the Plan. 

(a) Plan Limit. The shares of Common Stock subject to Awards under the Plan shall be made available from authorized but unissued Common Stock or from Common Stock issued and held in the treasury of the Company. Subject to adjustment under Article VII hereof, the total number of shares of Common Stock that may be distributed under the Plan (the "Section 1.5 Limit") shall not exceed, in the aggregate, 165,000,000 shares of Common Stock. 

(b) Plan Sub Limits. Subject to adjustment Under Article VII hereof, the maximum aggregate number of shares of Common Stock that may be issued in conjunction with awards of (i) Restricted Shares, Restricted Shares Units, unrestricted shares of Common Stock, Performance Shares and Dividend Equivalents, and (ii) Performance Units and Other Awards, but only if the Performance Units or Other Awards are paid or settled in shares of Common Stock, is 82,500,000 shares. 

(c) Rules Applicable to Determining Shares Available for Issuance. For purposes of determining the number of shares of Common Stock that remain available for issuance, the following rules apply:
(i) In connection with the granting of an Award (other than an Award denominated in dollars), the number of shares of Common Stock in respect of which the Award is granted or denominated shall be counted against the Section 1.5 Limit. Stock Appreciation Rights granted under the Plan shall reduce the Section 1.5 Limit on a one-for-one basis based on the number of shares of Common Stock for which the Stock Appreciation Rights are denominated, not based on the number of shares of Common Stock actually delivered pursuant to the Stock Appreciation Rights. 

(ii) To the extent permitted by law or the rules and regulations of any stock exchange on which the Common Stock is listed, the number of shares of Common Stock that shall be added back to the Section 1.5 Limit and shall again be available for Awards, shall be the corresponding number of shares of Common Stock that are (A) subject to an Award which for any reason expires or is cancelled, forfeited, or terminated without having been exercised or paid and (B) subject to Awards that are instead settled in cash. 

(iii) Any shares of Common Stock underlying Substitute Awards shall not be counted against the Section 1.5 Limit. 

Notwithstanding anything in this Section 1.5 to the contrary, in no event shall more than 165,000,000 shares of Common Stock, subject to adjustment pursuant to Article VII hereof, be granted pursuant to incentive stock options under the Plan. 

Section 1.6 Section 162(m) Limits on Awards to Participants. 

(a) Limits on Certain Stock Options and Stock Appreciation Rights. The maximum aggregate number of shares of Common Stock that may be granted to any Participant during any single calendar year with respect to Stock Options or Stock Appreciation Rights that are granted at no less than 100% of Fair Market Value on the Date of Grant is 3,000,000 (regardless of whether Stock Appreciation Rights are settled in cash, Common Stock, other Company securities or a combination thereof) unless the grant is made in the Participant's year of hire, in which case the limit is 5,000,000, subject to adjustment pursuant to Article VII hereof. 

(b) Limits on other Awards. The maximum amount of Awards (other than those Awards set forth in Section 1.6(a)) intended to qualify for the Section 162(m) Exception that may be awarded to any Participant in respect of any Performance Period is $25 million (with respect to Awards denominated in cash) and 3.0 million shares of Common Stock (with respect to Awards denominated in shares of Common Stock), subject to adjustment pursuant to Article VII hereof. 

Section 1.7 Agreements. 

The Committee shall determine and set forth in an Agreement the terms and conditions of each Award (other than an Award of unrestricted Common Stock). Each Agreement (i) shall state the Date of Grant and the name of the Participant, (ii) shall specify the terms of the Award, (iii) shall be signed (including by electronic signature) by a person designated by the Committee and, if so required by the Committee, by the Participant, (iv) shall incorporate the Plan by reference and (v) shall be delivered or otherwise made available to the Participant. The Agreement shall contain such other terms and conditions as are required by the Plan and, in addition, such other terms not inconsistent with the Plan as the Committee may deem advisable. The Committee shall have the authority to adjust the terms of the Agreements relating to an Award in a jurisdiction outside of the United States, and/or to adopt a schedule to the Plan regarding the terms of Awards to be granted in any such jurisdiction, (i) to comply with the laws of such jurisdiction or (ii) to obtain more favorable tax treatment for the Company and/or any Affiliate, as applicable, and/or for the Participants in such jurisdiction. Such authority shall be notwithstanding the fact that the requirements of the local jurisdiction may be more restrictive than the terms set forth in the Plan. 

ARTICLE II

PROVISIONS APPLICABLE TO STOCK OPTIONS AND

STOCK APPRECIATION RIGHTS

 Section 2.1 Grants of Stock Options.

The Committee may from time to time grant to eligible employees, directors or other Service Providers of the Company or any of its Affiliates Stock Options on the terms and conditions set forth in the Plan and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its discretion, may from time to time determine. Each Agreement covering a grant of Stock Options shall specify the number of Stock Options granted, the Date of Grant, the exercise price of such Stock Options, whether such Stock Options are Incentive Stock Options or Non-Qualified Stock Options, the period during which such Stock Options may be exercised, any vesting schedule, any Performance Goals and any other terms that the Committee deems appropriate. 

Section 2.2 Exercise Price. 

The Committee shall establish the per share exercise price of a Stock Option on the Date of Grant in such amount as the Committee shall determine; provided that such exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant. In addition, notwithstanding the foregoing, the per share exercise price of a Stock Option that is a Substitute Award may be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant, provided that the excess of: 
 

(i) the aggregate Fair Market Value (as of the Date of Grant of such Substitute Award) of the shares of Common Stock subject to the Substitute Award, over 

(ii) the aggregate exercise price thereof, does not exceed the excess of: 

(iii) the aggregate fair market value (as of the time immediately preceding the transaction pursuant to which the Substitute Award was granted, such fair market value to be determined by the Committee) of the shares of the predecessor entity that were subject to the award assumed or substituted for by the Company, over 

(iv) the aggregate exercise price of such shares. 

 

The exercise price of any Stock Option will be subject to adjustment in accordance with the provisions of Article VII of the Plan. 

Section 2.3 Exercise of Stock Options. 

(a) Exercisability. Stock Options shall be exercisable only to the extent the Participant is vested therein, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement (or any employment agreement applicable to the Participant). The Committee shall establish the vesting schedule applicable to the Stock Options granted hereunder, which vesting schedule shall specify the period of time, the increments in which a Participant shall vest in the Stock Options and/or any applicable Performance Goal requirements, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement (or any employment agreement applicable to the Participant). Unless the Committee specifies otherwise in the applicable Agreement (or an employment agreement applicable to the Participant provides otherwise), the vesting schedule for Stock Options granted hereunder shall be twenty five percent (25%) of the shares of Common Stock subject to the Stock Options per year, subject to the Participant's continued Service. 

(b) Option Period. For each Stock Option granted, the Committee shall specify the period during which the Stock Option may be exercised. 

(c) Exercise in the Event of Termination of Service, Retirement, Death or Permanent Disability. 
 

(i) Termination other than for Cause, or due to Retirement, Death or Permanent Disability. Except as otherwise provided in this Section 2.3 or as otherwise determined by the Committee, in the event that (A) the Participant ceases to be a Service Provider of the Company or any of its Affiliates by reason of the voluntary termination by the Participant or the termination by the Company or any of its Affiliates other than for Cause, his Outstanding Stock Options may be exercised to the extent then exercisable until the earlier of three months after the date of such termination or the Expiration Date, (B) the Participant ceases to be an employee of the Company or any of its Affiliates by reason of the Participant's Retirement, the Participant's Outstanding Stock Options shall continue to vest for an additional three year period following Retirement, and the Participant may exercise his vested Outstanding Stock Options until the earlier of the third anniversary of his Retirement or the Expiration Date; (C) the Permanent Disability of the Participant occurs, his Outstanding Stock Options may be exercised to the extent exercisable upon the date of the onset of such Permanent Disability until the earlier of the first anniversary of such date or the Expiration Date; and (D) a Participant dies during a period during which his Stock Options could have been exercised by him, his Outstanding Stock Options may be exercised to the extent exercisable at the date of death by the person who acquired the right to exercise such Stock Options by will or the laws of descent and distribution or permitted transfer until the earlier of the first anniversary of the date of death or the Expiration Date. Except as otherwise provided in this Section 2.3 or as otherwise determined by the Committee, upon the occurrence of an event described in clauses (A), (B), (C) or (D) of this Section 2.3(c)(i), all rights with respect to Stock Options that are not vested as of such event will be relinquished. 

(ii) Termination for Cause. If a Participant's Service with the Company or any of its Affiliates ends due to a Termination for Cause then, unless the Committee in its discretion determines otherwise, all Outstanding Stock Options, whether or not then vested, shall terminate effective as of the date of such termination. 

(iii) Maximum Exercise Period. Anything in this Section 2.3(c) to the contrary notwithstanding and unless the Committee determines otherwise, no Stock Option shall be exercisable after the Expiration Date. If the Expiration Date determined in accordance with the preceding sentence is not a business day, the Stock Options may be exercised up to and including the last business day before such date. 

 

(d) Adjustment with Respect to Stock Options. Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its discretion, at any time accelerate the date or dates on which Stock Options vest. 

Section 2.4 Payment of Purchase Price Upon Exercise. 

Every share purchased through the exercise of a Stock Option shall be paid for in full on or before the settlement date for the shares of Common Stock issued pursuant to the exercise of the Stock Options in cash or, in the discretion of the Committee, in shares of Common Stock, in a combination of cash or shares or in any other form of valid consideration that is acceptable to the Committee in its sole discretion. If the Agreement so provides, such exercise price may also be paid in whole or in part using a net share settlement procedure or through the withholding of shares subject to the Stock Option with a value equal to the exercise price. In accordance with the rules and procedures established by the Committee for this purpose, a Stock Option may also be exercised through a "cashless exercise" procedure, approved by the Committee, involving a broker or dealer, that affords Participants the opportunity to sell immediately some or all of the shares underlying the exercised portion of the Stock Option in order to generate sufficient cash to pay the exercise price of the Option. 

Section 2.5 No Repricing of Stock Options. 

The Committee may not "reprice" any Stock Option without approval of the Company's stockholders. "Reprice" means any of the following or any other action that has the same effect: (i) amending a Stock Option to reduce its exercise price, (ii) canceling a Stock Option at a time when its exercise price exceeds the Fair Market Value of a share of Common Stock in exchange for a Stock Option, Restricted Share or other equity award unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction, or (iii) taking any other action that is treated as a repricing under GAAP, provided that nothing in this Section 2.5 shall prevent the Committee from making adjustments pursuant to Article VII. 

Section 2.6 Stock Appreciation Rights. 

(a) Generally. The Committee may grant Stock Appreciation Rights alone or in tandem with other Awards.

(b) Stock Appreciation Rights Granted In Tandem with Stock Options. If the Stock Appreciation Right is granted in tandem with a Stock Option, such Stock Appreciation Right may be granted either at the time of the grant of the Stock Option or by amendment at any time prior to the exercise, expiration or termination of such Stock Option. The Stock Appreciation Right shall be subject to the same terms and conditions as the related Stock Option and shall be exercisable only at such times and to such extent as the related Stock Option is exercisable. A Stock Appreciation Right shall entitle the holder to surrender to the Company the related Stock Option unexercised and receive from the Company in exchange therefor an amount equal to the excess of the Fair Market Value of the shares of Common Stock subject to such Stock Option, determined as of the day preceding the surrender of such Stock Option, over the Stock Option aggregate exercise price. Such amount shall be paid in cash, or in the discretion of the Committee, in shares of Common Stock or in a combination of cash or shares of Common Stock. 

(c) Stock Appreciation Rights Granted Alone or In Tandem with Awards Other Than Stock Options. Subject to the next sentence and Section 2.6(d), Stock Appreciation Rights granted alone or in tandem with Awards other than Stock Options shall be subject to such terms and conditions as the Committee shall establish at or after the time of grant and set forth in the applicable Agreement. The Committee shall establish the per share exercise price of a Stock Appreciation Right granted alone on the Date of Grant in such amount as the Committee shall determine; provided that such exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant. In addition, notwithstanding the foregoing, the per share exercise price of a Stock Appreciation Right that is a Substitute Award may be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant; provided that the excess of: 
 

(i) the aggregate Fair Market Value (as of the Date of Grant of such Substitute Award) of the shares of Common Stock subject to the Substitute Award, over 

(ii) the aggregate exercise price thereof, does not exceed the excess of: 

(iii) the aggregate fair market value (as of the time immediately preceding the transaction pursuant to which the Substitute Award was granted, such fair market value to be determined by the Committee) of the shares of the predecessor entity that were subject to the award assumed or substituted for by the Company, over 

(iv) the aggregate exercise price of such shares. 

The exercise price of any Stock Appreciation Right will be subject to adjustment in accordance with the provisions of Article VII of the Plan. Unless the Committee specifies otherwise in the applicable Agreement (or an employment agreement applicable to the Participant provides otherwise), the vesting schedule for Stock Appreciation Rights granted alone or in tandem with Awards other than Stock Options shall be twenty five percent (25%) of the shares of Common Stock subject to the Stock Appreciation Rights per year, subject to the Participant's continued Service. The period specified by the Committee during which the Stock Appreciation Right may be exercised is the SAR period. 

(d) Exercise of Stock Appreciation Rights Granted Alone or in Tandem With Awards Other Than Stock Options in the Event of Termination of Service, Retirement, Death or Permanent Disability. 
 

(i) Termination other than for Cause, or due to Retirement, Death or Permanent Disability for Stock Appreciation Rights Granted Alone or In Tandem with Awards Other Than Stock Options. Except as otherwise provided in this Section 2.6 or as otherwise determined by the Committee, in the event that (A) the Participant ceases to be a Service Provider of the Company or any of its Affiliates by reason of the voluntary termination by the Participant or the termination by the Company or any of its Affiliates other than for Cause, his Outstanding Stock Appreciation Rights may be exercised to the extent then exercisable until the earlier of three months after the date of such termination or the Expiration Date, (B) the Participant ceases to be an employee of the Company or any of its Affiliates by reason of the Participant's Retirement, the Participant's Outstanding Stock Appreciation Rights shall continue to vest for an additional three year period following Retirement, and the Participant may exercise the Participant's vested Outstanding Stock Appreciation Rights until the earlier of the third anniversary of the Participant's Retirement or the Expiration Date; (C) the Permanent Disability of the Participant occurs, his Outstanding Stock Appreciation Rights may be exercised to the extent exercisable upon the date of the onset of such Permanent Disability until the earlier of the first anniversary of such date or the Expiration Date; and (D) a Participant dies during a period during which his Stock Appreciation Rights could have been exercised by him, his Outstanding Stock Appreciation Rights may be exercised to the extent exercisable at the date of death by the person who acquired the right to exercise such Stock Appreciation Rights by will or the laws of descent and distribution or permitted transfer until the earlier of the first anniversary of the date of death or the Expiration Date. Except as otherwise provided in this Section 2.6 or as otherwise determined by the Committee, upon the occurrence of an event described in clauses (A), (B), (C) or (D) of this Section 2.6(d)(i), all rights with respect to Stock Appreciation Rights that are not vested as of such event will be relinquished. 

 

(ii) Termination for Cause. If a Participant's Service with the Company or any of its Affiliates ends due to a Termination for Cause then, unless the Committee in its discretion determines otherwise, all Outstanding Stock Appreciation Rights, whether or not then vested, shall terminate effective as of the date of such termination. 

 

(iii) Maximum Exercise Period. Anything in this Section 2.6(d) to the contrary notwithstanding and unless the Committee determines otherwise, no Stock Appreciation Rights shall be exercisable after the Expiration Date. If the Expiration Date determined in accordance with the preceding sentence is not a business day, the Stock Appreciation Rights may be exercised up to and including the last business day before such date. 

 

(e) Adjustment with Respect to Stock Appreciation Rights. Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its discretion, at any time accelerate the date or dates on which Stock Appreciation Rights vest. 

(f) No Repricing of Stock Appreciation Rights. The Committee may not "reprice" Stock Appreciation Rights without approval of the Company's stockholders. "Reprice" means any of the following or any other action that has the same effect: (i) amending Stock Appreciation Rights to reduce its exercise price, (ii) canceling Stock Appreciation Rights at a time when its exercise price exceeds the Fair Market Value of a share of Common Stock in exchange for Stock Appreciation Rights, Restricted Share or other equity award unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction, or (iii) taking any other action that is treated as a repricing under GAAP, provided that nothing in this Section 2.6(f) shall prevent the Committee from making adjustments pursuant to Article VII. 

ARTICLE III

PROVISIONS APPLICABLE TO RESTRICTED SHARES

 

Section 3.1 Grants of Restricted Shares. 

The Committee may from time to time grant to eligible employees or other Service Providers Restricted Shares on the terms and conditions set forth in the Plan and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its discretion, may from time to time determine. Each Agreement covering a grant of Restricted Shares shall specify the number of Restricted Shares granted, the Date of Grant, the price, if any, to be paid by the Participant for such Restricted Shares, the vesting schedule (as provided for in Section 3.2 hereof) and any Performance Goals for such Restricted Shares and any other terms that the Committee deems appropriate. 

Section 3.2 Vesting. 

The Committee shall establish the vesting schedule applicable to Restricted Shares granted hereunder, which vesting schedule shall specify the period of time, the increments in which a Participant shall vest in the Restricted Shares and/or any applicable Performance Goal requirements, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement, provided that time-based vesting schedules (other than time based vesting schedules following the achievement of specific performance goals) shall remain in effect (in whole or in part) at least until the third anniversary of the Date of Grant, except as provided in the applicable Agreement in the event of death, Permanent Disability, Retirement, change in control of the Company, constructive termination of Service, or termination by the Company other than Termination for Cause. In the case of Restricted Shares to be earned based on performance, the vesting period for the Restricted Shares will be no less than one year. Unless the Committee specifies otherwise in the applicable Agreement (or an employment agreement applicable to the Participant provides otherwise), the vesting schedule for Restricted Shares granted hereunder shall be twenty five percent (25%) of the Restricted Shares per year, subject to the Participant's continued Service. 

Section 3.3 Rights and Restrictions Governing Restricted Shares. 

The Participant shall have all rights of a holder as to such shares of Common Stock (including, to the extent applicable, the right to receive dividends and to vote), subject to the following restrictions: (a) none of the Restricted Shares may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of until such shares have vested; and (b) except as otherwise provided in Section 3.6 below, all unvested Restricted Shares shall be immediately forfeited upon a Participant's termination of Service with the Company or any Affiliate for any reason or the Participant's death, Retirement or Permanent Disability. 

Section 3.4 Adjustment with Respect to Restricted Shares. 

Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its discretion, at any time accelerate the date or dates on which Restricted Shares vest. The Committee may, in its sole discretion, remove any and all restrictions on such Restricted Shares whenever it may determine that, by reason of changes in applicable law, the rules of any stock exchange on which the Common Stock is listed or other changes in circumstances arising after the Date of Grant, such action is appropriate. 

Section 3.5 Delivery of Restricted Shares. 

On the date on which Restricted Shares vest, all restrictions contained in the Agreement covering such Restricted Shares and in the Plan shall lapse as to such Restricted Shares. Restricted Share Awards issued hereunder may be evidenced in such manner as the Committee in its discretion shall deem appropriate, including, without limitation, book-entry registration or issuance of one or more stock certificates. If stock certificates are issued, such certificates shall be delivered to the Participant or such certificates shall be credited to a brokerage account if the Participant so directs; provided, however, that such certificates shall bear such legends as the Committee, in its sole discretion, may determine to be necessary or advisable in order to comply with applicable federal or state securities laws. 

Section 3.6 Termination of Service. 

In the event that the Participant's Service with the Company or any of its Affiliates ends for any reason other than Retirement prior to the date or dates on which Restricted Shares vest, the Participant shall forfeit all unvested Restricted Shares as of the date of such event, unless the Committee determines otherwise. In the event that the Participant's Service with the Company or any of its Affiliates ends by reason of Retirement prior to the date or dates on which Restricted Shares vest, the Participant shall continue to vest in the unvested Restricted Shares for a period of three years following the Participant's Retirement. At the end of such three year period, all remaining unvested Restricted Shares shall be forfeited, unless the Committee determines otherwise. 

Section 3.7 Grants of Unrestricted Shares. 

Subject to the limit set forth in the proviso in Section 1.5(b) (as such limit may be adjusted under Article VII hereof), the Committee may, in its sole discretion, make awards of unrestricted Common Stock to eligible Service Providers in recognition of outstanding achievements and performance; provided, that, such awards of unrestricted Common Stock shall be in lieu of salary or cash bonuses otherwise payable to the Service Providers. 

ARTICLE IV

PROVISIONS APPLICABLE TO RESTRICTED SHARE UNITS

 

Section 4.1 Grants of Restricted Share Units. 

The Committee may from time to time grant Restricted Share Units on the terms and conditions set forth in the Plan and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan as the Committee, in its discretion, may from time to time determine. Each Restricted Share Unit awarded to a Participant shall correspond to one share of Common Stock. Each Agreement covering a grant of Restricted Share Units shall specify the number of Restricted Share Units granted, the vesting schedule (as provided for in Section 4.2 hereof) for such Restricted Share Units and any Performance Goals and any other terms that the Committee deems appropriate. 

Section 4.2 Vesting. 

The Committee shall establish the vesting schedule applicable to Restricted Share Units granted hereunder, which vesting schedule shall specify the period of time, the increments in which a Participant shall vest in the Restricted Share Units and/or any applicable Performance Goal requirements, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement, provided that time-based vesting schedules (other than time based vesting schedules following the achievement of specific performance goals) shall remain in effect (in whole or in part) at least until the third anniversary of the Date of Grant, except as provided in the applicable Agreement in the event of death, Permanent Disability, Retirement, change in control of the Company, constructive termination of Service, or termination by the Company other than Termination for Cause. In the case of Restricted Share Units to be earned based on performance, the vesting period for the Restricted Share Units will be no less than one year. Unless the Committee specifies otherwise in the applicable Agreement (or an employment agreement applicable to the Participant provides otherwise), the vesting schedule for Restricted Share Units granted hereunder shall be twenty five percent (25%) of the Restricted Share Units per year, subject to the Participant's continued Service. 

Section 4.3 Adjustment with Respect to Restricted Share Units. 

Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its discretion, at any time accelerate the date or dates on which Restricted Share Units vest. 

Section 4.4 Settlement of Restricted Share Units. 

On the date on which Restricted Share Units vest (unless another date is specified by the Committee in the Agreement), all restrictions contained in the Agreement covering such Restricted Share Units and in the Plan shall lapse as to such Restricted Share Units and the Restricted Share Units will be payable in cash equal to the Fair Market Value of the shares subject to such Restricted Share Units or in shares of Common Stock or in a combination of cash or shares of Common Stock. Restricted Share Units paid in Common Stock may be evidenced in such manner as the Committee in its discretion shall deem appropriate, including, without limitation, book-entry registration or issuance of one or more stock certificates. If stock certificates are issued, such certificates shall be delivered to the Participant or such certificates shall be credited to a brokerage account if the Participant so directs; provided, however, that such certificates shall bear such legends as the Committee, in its sole discretion, may determine to be necessary or advisable in order to comply with applicable federal or state securities laws. 

Section 4.5 Termination of Service. 

In the event that the Participant's Service with the Company or any of its Affiliates ends for any reason other than Retirement prior to the date or dates on which Restricted Share Units vest, the Participant shall forfeit all unvested Restricted Share Units as of the date of such event, unless the Committee determines otherwise and provides that some or all of such Participant's unvested Restricted Share Units shall vest as of the date of such event, in which case, in the discretion of the Committee, either certificates representing shares of Common Stock or a cash payment equal to the Fair Market Value of the shares of Common Stock, shall be delivered in accordance with Section 4.4 above, to the Participant or in the case of the Participant's death, to the person or persons who acquired the right to receive such certificates by will or the laws of descent and distribution. In the event that the Participant's Service with the Company or any of its Affiliates ends by reason of Retirement, the Participant shall continue to vest in the Participant's unvested Restricted Share Units for a period of three years following Retirement. At the end of such three year period, all remaining unvested Restricted Share Units shall be forfeited, unless the Committee determines otherwise. 

ARTICLE V

 PERFORMANCE AWARDS

 

Section 5.1 Grants of Performance Awards. 

The Committee may from time to time grant to eligible employees or other Service Providers Performance Awards consisting of Performance Shares or Performance Units on the terms and conditions set forth in the Plan and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its discretion, may from time to time determine. Performance Awards may be granted either alone or in addition to other Awards made under the Plan. 

Section 5.2 Performance Goals. 

Unless otherwise determined by the Committee, the grant, vesting and/or exercisability of Performance Awards shall be conditioned, in whole or in part, on the attainment of performance targets, in whole or in part, related to one or more performance goals over a Performance Period. For any such Performance Awards that are intended to qualify for the Section 162(m) Exception, the performance targets on which the grant, vesting and/or exercisability are conditioned shall be selected by the Committee from among the following goals, on a GAAP or non-GAAP basis (the "Section 162(m) Performance Goals"): Net income, adjusted net income, EBITDA, adjusted EBITDA, OIBDA, adjusted OIBDA, operating income, adjusted operating income, free cash flow, net earnings, net earnings from continuing operations, earnings per share, adjusted earnings per share, revenue, net revenue, operating revenue, total stockholder return, share price, return on equity, return in excess of cost of capital, profit in excess of cost of capital, return on assets, return on invested capital, net operating profit after tax, operating margin, profit margin or any combination thereof. A Section 162(m) Performance Goal may be stated as a combination of one or more goals (e.g., free cash flow return on invested capital), and on an absolute or relative basis. 

In addition, for any Awards not intended to qualify for the Section 162(m) Exception, the Committee may establish performance targets based on other performance goals as it deems appropriate (together with the Section 162(m) Performance Goals, the "Performance Goals"). The Performance Goals may be described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a Affiliate, division, department, region, function or business unit and may be measured on an absolute or cumulative basis or on the basis of percentage of improvement over time, and may be measured in terms of Company performance (or performance of the applicable Affiliate, division, department, region, function or business unit) or measured relative to selected peer companies or a market index. 

Section 5.3 Performance Goals on Awards other than Performance Awards. 

The Committee, in its sole discretion, may also require that the grant, vesting and/or exercisability of Awards other than Performance Awards be conditioned, in whole or in part, on the attainment of performance targets, in whole or in part, related to Performance Goals over a Performance Period, as described in Section 5.2. 

Section 5.4 Discretion to Reduce Awards. 

The Committee retains the right to reduce any Award below the maximum amount that could be paid based on the degree to which the Performance Goals related to such Award were attained. The Committee may not increase any Award intended to qualify for the Section 162(m) Exception in any manner that would adversely affect the treatment of the Award under the Section 162(m) Exception. 

Section 5.5 Adjustment of Calculation of Performance Goals. 

In the event that, during any Performance Period, any recapitalization, reorganization, merger, acquisition, divestiture, consolidation, spin-off, combination, liquidation, dissolution, sale of assets or other similar corporate transaction or event, or any other extraordinary event or circumstance occurs which has the effect, as determined by the Committee, in its sole and absolute discretion, of distorting the applicable performance criteria involving the Company, including, without limitation, changes in accounting standards, the Committee may adjust or modify, as determined by the Committee, in its sole and absolute discretion, the calculation of the Performance Goals, to the extent necessary to prevent reduction or enlargement of the Participants' Awards under the Plan for such Performance Period attributable to such transaction, circumstance or event. All determinations that the Committee makes pursuant to this Section 5.5 shall be conclusive and binding on all persons for all purposes. 

ARTICLE VI

DIVIDEND EQUIVALENTS AND OTHER AWARDS

Section 6.1 Dividend Equivalents. 

Subject to the provisions of this Plan and any Agreement, the recipient of an Award (including, without limitation, any Award deferred pursuant to Section 8.9) may, if so determined by the Committee, be entitled to receive, currently or on a deferred basis, interest or dividends or Dividend Equivalents, with respect to the number of shares of Common Stock covered by the Award, as determined by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional shares of Common Stock or otherwise reinvested and/or shall be subject to the same terms and conditions (including vesting and forfeiture provisions) as the related Award. 

Section 6.2 Other Awards. 

The Committee shall have the authority to specify the terms and provisions of other forms of equity-based or equity-related awards not described above that the Committee determines to be consistent with the purpose of the Plan and the interests of the Company. Other Awards may also include cash payments under the Plan which may be based on one or more criteria determined by the Committee that are unrelated to the value of Common Stock and that may be granted in tandem with, or independent of, Awards granted under the Plan. 

ARTICLE VII

 EFFECT OF CERTAIN CORPORATE CHANGES

 In the event of a merger, consolidation, stock-split, reverse stock-split, dividend, distribution, combination, reclassification, reorganization, consolidation, split-up, spin-off or recapitalization that changes the character or amount of the Common Stock, an extraordinary cash dividend or any other changes in the corporate structure, equity securities or capital structure of the Company ("Corporate Transactions"), the Committee shall make such adjustments, if any, to (i) the number and kind of securities subject to any outstanding Award, (ii) the exercise price or purchase price, if any, of any outstanding Award, and (iii) the maximum number and kind of securities referred to in Sections 1.5(a) and (b) and Sections 1.6(a) and (b) of the Plan, in each case, as it deems appropriate. The Committee may, in its sole discretion, also make such other adjustments as it deems appropriate in order to preserve the benefits or potential benefits intended to be made available hereunder, including (i) providing for full vesting of Awards for those Participants whose Service is terminated by the Company in connection with the Corporate Transaction, (ii) providing for the termination of Awards upon the consummation of the Corporation Transaction, in which case vesting and payout of such Awards shall be accelerated for Participants who are Service Providers at the time of the Corporate Transaction and/or (iii) providing for the cashout of Awards, in which case the amount to be paid out in the case of Restricted Shares or Restricted Share Units shall be equal to the formula or fixed price per share paid to holders of shares of Common Stock and, in the case of Stock Options or Stock Appreciation Rights, equal to the product of the number of shares of Common Stock subject to the Stock Option or Stock Appreciation Right (the "Award Shares") multiplied by the amount, if any, by which (X) the formula or fixed price per share paid to holders of shares of Common Stock pursuant to such transaction exceeds (Y) the exercise price applicable to such Award Shares. All determinations that the Committee makes pursuant to this Article VII shall be conclusive and binding on all persons for all purposes. The Committee need not treat all types of Awards, or all Awards within the same type of Award, in the same manner under this Article VII. 

ARTICLE VIII

MISCELLANEOUS

Section 8.1 No Rights to Awards or Continued Employment or other Service. 

 

Nothing in the Plan or in any Agreement, nor the grant of any Award under the Plan, shall confer upon any individual any right to be employed by or to continue in the employment or other Service of the Company or any Affiliate thereof, nor to be entitled to any remuneration or benefits not set forth in the Plan or such Agreement, including the right to receive any future Awards under the Plan or any other plan of the Company or any Affiliate thereof or interfere with or limit the right of the Company or any Affiliate thereof to modify the terms of or terminate such individual's employment or other Service at any time for any reason. 

Section 8.2 Restriction on Transfer. 

The rights of a Participant with respect to any Award shall be exercisable during the Participant's lifetime only by the Participant and shall not be transferable by the Participant to whom such Award is granted, except by will or the laws of descent and distribution, provided that the Committee may permit other transferability, subject to any conditions and limitations that it may, in its sole discretion, impose. 

Section 8.3 Taxes. 

The Company or an Affiliate thereof, as appropriate, shall have the right to deduct from all payments made under the Plan to a Participant or to a Participant's estate any federal, state, local or other taxes required by law to be withheld with respect to such payments. The Committee, in its discretion, may require, as a condition to the exercise or settlement of any Award or delivery of any certificate(s) for shares of Common Stock, that an additional amount be paid in cash equal to the amount of any federal, state, local or other taxes required to be withheld as a result of such exercise or settlement. In addition, the Committee may establish procedures to allow Participants to satisfy such withholding obligations through a net share settlement procedure or the withholding of shares subject to the applicable Award, or through a "cashless exercise" procedure as described in Section 2.4. Any Participant who makes an election under Section 83(b) of the Code to have his Award taxed in accordance with such election must give notice to the Company of such election immediately upon making a valid election in accordance with the rules and regulations of the Code. Any such election must be made in accordance with the rules and regulations of the Code. 

 

Section 8.4 Stockholder Rights. 

No Award under the Plan shall entitle a Participant or a Participant's estate or permitted transferee to any rights of a holder of shares of Common Stock of the Company, except as provided in Article III with respect to Restricted Shares or when and until the Participant, the Participant's estate or the permitted transferee is registered on the books and records of the Company as a stockholder with respect to the exercise or settlement of such Award. 

Section 8.5 No Restriction on Right of Company to Effect Corporate Changes. 

The Plan shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company's capital structure or its business, or any merger or consolidation of the Company, or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stock whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

Section 8.6 Source of Payments. 

The general funds of the Company shall be the sole source of cash settlements of Awards under the Plan and payments of Appreciation Value and the Company shall not have any obligation to establish any separate fund or trust or other segregation of assets to provide for payments under the Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and a Participant or any other person. To the extent a person acquires any rights to receive payments hereunder from the Company, such rights shall be no greater than those of an unsecured creditor. 

Section 8.7 Exercise Periods Following Termination of Service. 

For the purposes of determining the dates on which Awards may be exercised following a termination of Service or following the Retirement, death or Permanent Disability of a Participant, the day following the date of such event shall be the first day of the exercise period and the Award may be exercised up to and including the last business day falling within the exercise period. Thus, if the last day of the exercise period is not a business day, then the last date an Award may be exercised is the last business day preceding the end of the exercise period. 

Section 8.8 Breach of Agreements. 

The Committee may include in any Agreement a provision requiring the Participant to return gains (as defined by the Committee) realized on Awards made under the Plan in the event the Committee determines that a material breach of specified obligations under one or more written agreements between a Participant and the Company has occurred during the one year period after termination of the Participant's Service with the Company or an Affiliate. 

Section 8.9 Deferral of Awards. 

The Committee may establish procedures pursuant to which the payment of any Award may be deferred.

Section 8.10 Employment of Participant by Affiliate. 

Unless the Committee determines otherwise, the Service of a Participant who works for an Affiliate shall terminate, for Plan purposes, on the date on which the Participant's employing company ceases to be an Affiliate. 

Section 8.11 Registration Restrictions. 

A Stock Option or Stock Appreciation Right shall not be exercisable, no transfer of shares of Common Stock shall be made to any Participant, and any attempt to exercise a Stock Option or Stock Appreciation Right or to transfer any such shares shall be void and of no effect, unless and until (i) a registration statement under the Securities Act of 1933, as amended, has been duly filed and declared effective pertaining to the shares of Common Stock subject to such Stock Option or Stock Appreciation Right, and the shares of Common Stock subject to such Stock Option or Stock Appreciation Right have been duly qualified under applicable federal or state securities or blue sky laws or (ii) the Committee, in its sole discretion, determines, or the Participant, upon the request of the Committee, provides an opinion of counsel satisfactory to the Committee, that such registration or qualification is not required as a result of the availability of an exemption from registration or qualification under such laws. Without limiting the foregoing, if at any time the Committee shall determine, in its sole discretion, that the listing, registration or qualification of the shares of Common Stock subject to a Stock Option, Stock Appreciation Right or other Award is required under any federal or state law or on any securities exchange or the consent or approval of any U.S. or foreign governmental regulatory body is necessary or desirable as a condition of, or in connection with, delivery or purchase of such shares under a Stock Option, Stock Appreciation Right or other Award, such Stock Option or Stock Appreciation Right shall not be exercised in whole or in part, and shares of Common Stock shall not be delivered pursuant to the Award, unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. 

ARTICLE IX

AMENDMENT AND TERMINATION

 The Plan may be terminated and may be altered, amended, suspended or terminated at any time, in whole or in part, by the Board; provided, however, that no alteration or amendment will be effective without stockholder approval if such approval is required by law or under the rules of the New York Stock Exchange or other principal stock exchange on which the Common Stock is listed. No termination or amendment of the Plan may, without the consent of the Participant to whom an Award has been made, materially adversely affect the rights of such Participant in such Award. Unless previously terminated pursuant to this Article IX, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date, and no further Awards may be granted hereunder after such date. 

ARTICLE X

INTERPRETATION

 Section 10.1 Governmental Regulations. 

The Plan, and all Awards hereunder, shall be subject to all applicable rules and regulations of governmental or other authorities. 

Section 10.2 Headings. 

The headings of articles and sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 

Section 10.3 Governing Law. 

The validity and construction of this Plan and the instruments evidencing the Awards hereunder shall be governed by the laws of the State of New York, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 

Section 10.4 Parachute Taxes. 

Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Participant with the Company or any Affiliate, except an agreement, contract, or understanding that modifies or excludes application of this paragraph (an "Other Agreement"), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Participant (including groups or classes of Participants or beneficiaries of which the Participant is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Participant (a "Benefit Arrangement"), if the Participant is a "disqualified individual," as defined in Section 280G(c) of the Code, any Award held by that Participant and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Participant under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Participant under this Plan to be considered a "parachute payment" within the meaning of Section 280G(b)(2) of the Code as then in effect (a "Parachute Payment") and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Participant from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Participant without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Participant under any Other Agreement or any Benefit Arrangement would cause the Participant to be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Participant as described in clause (ii) of the preceding sentence, then the Participant shall have the right, in the Participant's sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Participant under this Plan be deemed to be a Parachute Payment. 

Section 10.5 Section 409A of the Code. 

To the extent that the Committee determines that a Participant would be subject to the additional 20% tax imposed on certain deferred compensation arrangements pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), as a result of any provision of any Award granted under this Plan, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee. 

ARTICLE XI

EFFECTIVE DATE AND STOCKHOLDER APPROVAL

 The Plan shall be effective as of the Effective Date, subject to approval of the Plan by the Company's stockholders within one year of the Effective Date. Upon approval of the Plan by the stockholders of the Company as set forth above, all Awards made under the Plan on or after the Effective Date shall be fully effective as if the stockholders of the Company had approved the Plan on the Effective Date. If the stockholders fail to approve the Plan within one year after the Effective Date, any Awards made hereunder shall be null and void and of no effect.Unsecured Letter of Credit Facility

 Exhibit 10.1 
  
 Execution Copy 
  

  
 AMENDED AND RESTATED 
 REIMBURSEMENT AGREEMENT 
  
 among 
  
 ACE LIMITED 
 ACE BERMUDA INSURANCE LTD. 
 ACE TEMPEST LIFE REINSURANCE LTD. 
 ACE TEMPEST
REINSURANCE LTD., 
 as Account Parties, 
  
 THE BANKS NAMED HEREIN, 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as an
Issuing Bank and as Administrative Agent 
  
 and 
  
 BANK OF AMERICA, N.A., 
 as Syndication Agent 
  
 $1,000,000,000 Unsecured Letter of Credit Facility 
  
 WACHOVIA CAPITAL MARKETS, LLC 
 BANC OF AMERICA SECURITIES LLC 
 as Joint Book Runners and Joint Lead Arrangers 
  
 Dated as of July 1, 2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE I
	  	 
		
	 DEFINITIONS AND ACCOUNTING TERMS
	  	 
			
	 1.01
	  	Certain Defined Terms	  	2
	 1.02
	  	Computation of Time Periods; Other Definitional Provisions	  	17
	 1.03
	  	Accounting Terms and Determinations	  	17
		
	 ARTICLE II
	  	 
		
	 AMOUNTS AND TERMS OF THE LETTERS OF CREDIT
	  	 
			
	 2.01
	  	The Letters of Credit	  	18
	 2.02
	  	Issuance and Renewals and Drawings, Participations and Reimbursement with Respect to Letters of Credit	  	19
	 2.03
	  	Repayment of Advances	  	22
	 2.04
	  	Termination or Reduction of the LC Commitment Amounts	  	24
	 2.05
	  	Fees	  	24
	 2.06
	  	Increased Costs, Etc.	  	25
	 2.07
	  	Payments and Computations	  	26
	 2.08
	  	Taxes	  	27
	 2.09
	  	Sharing of Payments, Etc.	  	29
	 2.10
	  	Use of Letters of Credit	  	30
	 2.11
	  	Defaulting Banks	  	30
	 2.12
	  	Replacement of Affected Bank	  	32
	 2.13
	  	Certain Provisions Relating to the Issuing Banks and Letters of Credit	  	32
	 2.14
	  	Downgrade Event with Respect to a Bank	  	34
	 2.15
	  	Non-Dollar Letters of Credit	  	35
	 2.16
	  	Increase of LC Commitment Amounts	  	37
		
	 ARTICLE III
	  	 
		
	 CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT
	  	 
			
	 3.01
	  	Conditions Precedent to Effective Date	  	38
	 3.02
	  	Conditions Precedent to Each Issuance, Extension or Increase of a Letter of Credit	  	39
	 3.03
	  	Determinations Under Section 3.01	  	40
		
	 ARTICLE IV
	  	 
		
	 REPRESENTATIONS AND WARRANTIES
	  	 
			
	 4.01
	  	Representations and Warranties of the Account Parties	  	40

  

 i 

					
		
	 ARTICLE V
	  	 
		
	 COVENANTS OF THE ACCOUNT PARTIES
	  	 
			
	 5.01
	  	Affirmative Covenants	  	44
	 5.02
	  	Negative Covenants	  	46
	 5.03
	  	Reporting Requirements	  	50
	 5.04
	  	Financial Covenants	  	53
		
	 ARTICLE VI
	  	 
		
	 EVENTS OF DEFAULT
	  	 
			
	 6.01
	  	Events of Default	  	53
	 6.02
	  	Actions in Respect of the Letters of Credit upon Default	  	56
		
	 ARTICLE VII
	  	 
		
	 THE GUARANTY
	  	 
			
	 7.01
	  	The Guaranty	  	56
	 7.02
	  	Guaranty Unconditional	  	57
	 7.03
	  	Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances	  	58
	 7.04
	  	Waiver by the Account Parties	  	58
	 7.05
	  	Subrogation	  	58
	 7.06
	  	Stay of Acceleration	  	59
	 7.07
	  	Continuing Guaranty; Assignments	  	59
		
	 ARTICLE VIII
	  	 
		
	 THE AGENTS
	  	 
			
	 8.01
	  	Authorization and Action	  	59
	 8.02
	  	Agents’ Reliance, Etc.	  	60
	 8.03
	  	Agents and Affiliates	  	60
	 8.04
	  	Bank Credit Decision	  	60
	 8.05
	  	Indemnification	  	60
	 8.06
	  	Successor Administrative Agent	  	61
		
	 ARTICLE IX
	  	 
		
	 MISCELLANEOUS
	  	 
			
	 9.01
	  	Amendments, Etc.	  	62
	 9.02
	  	Notices, Etc.	  	62
	 9.03
	  	No Waiver; Remedies	  	63
	 9.04
	  	Costs and Expenses	  	63

  

 ii 

					
	 9.05
	  	Right of Set-off	  	64
	 9.06
	  	Binding Effect	  	65
	 9.07
	  	Assignments and Participations	  	65
	 9.08
	  	Execution in Counterparts	  	68
	 9.09
	  	No Liability of the Issuing Banks	  	68
	 9.10
	  	Confidentiality	  	68
	 9.11
	  	Jurisdiction, Etc.	  	69
	 9.12
	  	Governing Law	  	69
	 9.13
	  	Waiver of Jury Trial	  	70
	 9.14
	  	Disclosure of Information	  	70
	 9.15
	  	Certain Effective Date Matters	  	70
	 9.16
	  	No Novation	  	70

  

			
	 Schedule I
	  	LC Commitment Amounts
	 Schedule II
	  	Existing Letters of Credit
	 Schedule 4.01(b)
	  	Subsidiaries
	 Schedule 5.02(a)
	  	Liens
	  
 Exhibit A
	  	Form of Assignment and Acceptance
	 Exhibit B-1
	  	Form of Opinion of Maples and Calder
	 Exhibit B-2
	  	Form of Opinion of Mayer, Brown, Rowe & Maw LLP
	 Exhibit B-3
	  	Form of Opinion of Conyers, Dill & Pearman

  

 iii 

 AMENDED AND RESTATED REIMBURSEMENT AGREEMENT 
  
 AMENDED AND RESTATED REIMBURSEMENT AGREEMENT dated as of July
1, 2005, among ACE Limited, a Cayman Islands company (the “Parent”), ACE Bermuda Insurance Ltd., a Bermuda company (“ACE Bermuda”), ACE Tempest Life Reinsurance Ltd., a Bermuda company (“Tempest
Life”), and ACE Tempest Reinsurance Ltd., a Bermuda company (“Tempest”) (ACE Bermuda, Tempest Life and Tempest, together with the Parent, the “Account Parties” and individually an “Account
Party”), the banks, financial institutions and other institutional lenders listed on the signature pages hereof as the Initial Banks (the “Initial Banks”), Wachovia Bank, National Association (“Wachovia”),
as an Issuing Bank (as hereinafter defined), Bank of America, N.A. (“Bank of America”), as syndication agent, (the “Syndication Agent”), Barclays Bank PLC (“Barclays”), as co-documentation agent,
CitiBank, N.A. (“CitiBank”), as co-documentation agent, JPMorgan Chase Bank, N.A., as co-documentation agent (“Chase” and, together with Barclays and CitiBank, the “Documentation Agents”), and
Wachovia, as administrative agent (together with any successor administrative agent appointed pursuant to Article VIII, the “Administrative Agent” and, together with the Syndication Agent and Documentation Agents, the
“Agents”) for the Banks. 
  
 PRELIMINARY
STATEMENTS 
  
 A. The Account Parties entered into a
Reimbursement Agreement, dated as of September 22, 2004 (the “Existing Reimbursement Agreement”), among the Account Parties, the banks and other lenders named therein, Wachovia, as an Issuing Bank and as Administrative Agent, and
Bank of America, as Syndication Agent, providing for a $850,000,000 unsecured letter of credit facility for the benefit of the Account Parties. The Account Parties have requested that the parties hereto amend and restate the Existing Reimbursement
Agreement so that the credit facility thereunder is increased to provide for the issuance of letters of credit for the account of one or more of the Account Parties in an amount up to $1,000,000,000 and to make certain other amendments. 

 
 B. The Issuing Banks and the Banks are willing to amend and restate the
Existing Reimbursement Agreement on the terms and conditions set forth in this Agreement. It is the intent of the parties hereto that this Agreement not constitute a novation of the obligations and liabilities existing under the Existing
Reimbursement Agreement or evidence repayment of any of such obligations and liabilities and that this Agreement amend and restate in its entirety the Existing Reimbursement Agreement and re-evidence the obligations of the Account Parties
outstanding thereunder. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as follows: 
  

 1 

 ARTICLE I 
  

DEFINITIONS AND ACCOUNTING TERMS 
  
 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined): 
  
 “Account Parties” has the meaning specified in the recital of parties to this Agreement. 
  
 “ACE Bermuda” has the meaning specified in the recital of parties to this Agreement. 
  
 “ACE INA” means ACE INA Holdings Inc., a Delaware
corporation. 
  
 “Additional Bank” has the
meaning specified in Section 2.16(a). 
  
 “Adjusted
Consolidated Debt” means, at any time, an amount equal to (i) the then outstanding Consolidated Debt of the Parent and its Subsidiaries plus (ii) to the extent exceeding an amount equal to 15% of Total Capitalization, the then issued and
outstanding amount of Preferred Securities (other than any Mandatorily Convertible Preferred Securities). 
  
 “Administrative Agent” has the meaning specified in the recital of parties to this Agreement. 
  
 “Administrative Agent’s Account” means the account of
the Administrative Agent maintained by the Administrative Agent at Wachovia Bank, National Association, Charlotte Plaza Building, 201 South College Street, 8th Floor NC0680, Charlotte, North Carolina 28288, Account No. 5000000027444, Re: ACE Ltd., Attn: Syndication Agency Services, or such other account as the Administrative Agent shall specify in writing to
the Banks. 
  
 “Administrative Questionnaire”
means, with respect to each Bank, the administrative questionnaire in the form submitted to such Bank by the Administrative Agent and returned to the Administrative Agent duly completed by such Bank. 
  
 “Advance” means a Letter of Credit Advance. 
  
 “Affected Bank” means any Bank that (i) has made, or
notified any Account Party that an event or circumstance has occurred which may give rise to, a demand for compensation under Section 2.06(a) or (b) or Section 2.08 (but only so long as the event or circumstance giving rise to
such demand or notice is continuing) or (ii) is a Downgraded Bank. 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person. For purposes of this
definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to vote 5% or more of the
Voting Interests of such Person or to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Interests, by contract or otherwise. 
  

 2 

 “Agents” has the meaning specified in the recital of parties to this Agreement.

  
 “Agreement Currency” has the meaning
specified in Section 2.15(g). 
  
 “Applicable
Account Party” with respect to any outstanding or proposed Letter of Credit means the Account Party for the account of which such Letter of Credit was or is proposed to be issued. 
  
 “Applicable Commitment Fee Percentage” means, as of any
date, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below: 
  

				
	 Public Debt Rating
 S&P/Moody’s

	  	 Applicable Commitment Fee
 Percentage

	 
	 Level 1
 A+/A1 and above
	  	0.060	%
	 Level 2
 A/A2
	  	0.070	%
	 Level 3
 A-/A3
	  	0.080	%
	 Level 4
 BBB+/Baa1
	  	0.100	%
	 Level 5
 Lower than Level 4
	  	0.125	%

  
 “Applicable
Lending Office” means, with respect to each Bank, such Bank’s Domestic Lending Office. 
  

 3 

 “Applicable Margin” means, as of any date, with respect to either Type of Letter of
Credit, a percentage per annum determined by reference to such Type and the Public Debt Rating in effect on such date as set forth below: 
  

							
	 Public Debt Rating S&P/Moody’s

	  	Applicable Margin
for Intercompany
Letters of Credit

	 	 	Applicable Margin
for Third Party
Letters of Credit

	 
	 Level 1
 A+/A1 and above
	  	0.200	%	 	0.250	%
	 Level 2
 A/A2
	  	0.275	%	 	0.300	%
	 Level 3
 A-/A3
	  	0.350	%	 	0.375	%
	 Level 4
 BBB+/Baa1
	  	0.400	%	 	0.425	%
	 Level 5
 Lower than Level 4
	  	0.500	%	 	0.525	%

  
 provided, however, that
at all times during which the Available Amount with respect to Intercompany Letters of Credit exceeds $400,000,000, then for purposes of Section 2.05(c)(i) the Applicable Margin for the portion of the Available Amount of such Intercompany
Letters of Credit in excess of $400,000,000 shall be determined as if such Letters of Credit were Third Party Letters of Credit. 
  
 “Approved Investment” means any Investment that was made by the Parent or any of its Subsidiaries pursuant to investment guidelines set
forth by the board of directors of the Parent which are consistent with past practices. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Bank and an Eligible Assignee, and accepted by the Administrative Agent, in accordance with Section 9.07 and in
substantially the form of Exhibit A hereto. 
  
 “Available Amount” of any Letter of Credit means, at any time, the maximum amount available to be drawn under such Letter of Credit at such time or at any future time (assuming compliance at such time or such future time
with all conditions to drawing) (including without limitation amounts which have been the subject of drawings by the applicable beneficiary but which have not yet been paid by an Issuing Bank). 
  
 “Bank of America” has the meaning specified in the recital
of parties to this Agreement. 
  
 “Bankruptcy
Law” means Title 11, U.S. Code, or any similar foreign, federal or state law for the relief of debtors. 
  
 “Banks” means the Initial Banks and each Person that shall become a Bank hereunder pursuant to Section 2.16(a) or Section
9.07(a), (b) and (c) for so long as such Initial Bank or Person, as the case may be, shall be a party to this Agreement. 
  
 “Barclays” has the meaning specified in the recital of parties to this Agreement. 
  

 4 

 “Base Amount” has the meaning set forth in Section 5.04(b). 
  
 “Base Rate” means a fluctuating interest rate per annum in
effect from time to time, which rate per annum shall at all times be equal to the rate of interest announced publicly by Wachovia in Charlotte, North Carolina from time to time, as Wachovia’s prime rate (which may not be its best lending rate)
or, if higher on the day in question, 1⁄2 of 1% above the Federal Funds Rate. 
  
 “Business Day” means a day of the year on which banks are not required or authorized by law to close in Charlotte, North Carolina, New York, New York, London, England or Bermuda. 
  
 “Capitalized Leases” means all leases that have been or
should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Change of Control” means the occurrence of any of the following: (a) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934), directly or indirectly, of Voting Interests of the Parent (or other securities convertible into such Voting Interests) representing 30% or more of the combined voting power of all
Voting Interests of the Parent or (b) a majority of the board of directors of the Parent shall not be Continuing Members. 
  
 “CitiBank” has the meaning specified in the recital of parties to this Agreement. 
  
 “Committed Facility” means, at any time, the aggregate
amount of the Banks’ LC Commitment Amounts at such time. 
  
 “Confidential Information” means information that any Loan Party furnishes to any Agent or any Bank, but does not include any such information that is or becomes generally available to the public other than as a result of a
breach by any Agent or any Bank of its obligations hereunder or that is or becomes available to such Agent or such Bank from a source other than the Loan Parties that is not, to the best of such Agent’s or such Bank’s knowledge, acting in
violation of a confidentiality agreement with a Loan Party. 
  
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
  
 “Consolidated Net Income” means, for any period, the net income of the Parent and its Consolidated Subsidiaries, determined on a
Consolidated basis for such period. 
  
 “Consolidated Net
Worth” means at any date the Consolidated stockholders’ equity of the Parent and its Consolidated Subsidiaries determined as of such date, provided that such determination for purposes of Section 5.04 shall be made
without giving effect to adjustments pursuant to Statement No. 115 of the Financial Accounting Standards Board of the United States of America. 
  
 “Contingent Obligation” means, with respect to any Person, any obligation or arrangement of such Person to guarantee or intended to
guarantee any Debt, leases, dividends or other payment obligations (“primary obligations”) of any other Person (the “primary obligor”) in 

  

 5 

 
any manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, endorsement (other than for collection or
deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of a primary obligor, (b) the obligation to make take-or-pay or similar payments, if required, regardless of
nonperformance by any other party or parties to an agreement or (c) any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the holder of such primary obligation against loss in respect thereof; provided, however, that Contingent Obligations shall not include any obligations of any such Person arising under insurance contracts entered into in the
ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the
maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
  
 “Continuing Member” means a member of the Board of Directors of the Parent who either (i) was a member of the Parent’s Board of
Directors on the date of execution and delivery of this Agreement by the Parent and has been such continuously thereafter or (ii) became a member of such Board of Directors after such date and whose election or nomination for election was approved
by a vote of the majority of the Continuing Members then members of the Parent’s Board of Directors. 
  
 “Debenture” means debt securities issued by ACE INA or the Parent to a Special Purpose Trust in exchange for proceeds of Preferred
Securities and common securities of such Special Purpose Trust. 
  
 “Debt” of any Person means, without duplication for purposes of calculating financial ratios, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of
property or services (other than trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all obligations of such
Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all obligations of such Person as lessee under Capitalized Leases (excluding imputed interest), (f) all obligations of such Person under acceptance, letter of credit or similar facilities, (g)
all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests (except for obligations to pay for Equity Interests within customary settlement periods) in such Person or any other
Person or any warrants, rights or options to acquire such capital stock (excluding payments under a contract for the forward sale 

  

 6 

 
of ordinary shares of such Person issued in a public offering), valued, in the case of Redeemable Preferred Interests, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends, (h) all Contingent Obligations of such Person in respect of Debt (of the types described above) of any other Person and (i) all indebtedness and other payment obligations
referred to in clauses (a) through (h) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness or other payment obligations; provided, however, that the amount of Debt of such Person under clause
(i) above shall, if such Person has not assumed or otherwise become liable for any such Debt, be limited to the lesser of the principal amount of such Debt or the fair market value of all property of such Person securing such Debt; provided
further that “Debt” shall not include obligations in respect of insurance or reinsurance contracts entered into in the ordinary course of business or any obligations of such Person (1) to purchase securities (or other property)
which arise out of or in connection with the sale of the same or substantially similar securities (or other property) or (2) to return collateral consisting of securities arising out of or in connection with the loan of the same or substantially
similar securities; provided further that, solely for purposes of Section 5.04 and the definitions of “Adjusted Consolidated Debt” and “Total Capitalization”, “Debt” shall not include (x) any
contingent obligations of any Person under or in connection with acceptance, letter of credit or similar facilities or (y) obligations of the Parent or ACE INA under any Debentures or under any subordinated guaranty of any Preferred Securities or
obligations of a Special Purpose Trust under any Preferred Securities. 
  
 “Default” means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  
 “Defaulted Amount” means, with respect to any Bank at any time, any amount required to be paid by such Bank
to any Agent or any other Bank hereunder or under any other Loan Document at or prior to such time that has not been so paid as of such time, including, without limitation, any amount required to be paid by such Bank to (a) an Issuing Bank pursuant
to Section 2.02(f) to purchase a portion of a Letter of Credit Advance made by such Issuing Bank and (b) any Agent or any Issuing Bank pursuant to Section 8.05 to reimburse such Agent or such Issuing Bank for such Bank’s
ratable share of any amount required to be paid by the Banks to such Agent or such Issuing Bank as provided therein. 
  
 “Defaulting Bank” means, at any time, any Bank that, at such time, (a) owes a Defaulted Amount or (b) shall take any action or be the
subject of any action or proceeding of a type described in Section 6.01(g). 
  
 “Documentation Agents” has the meaning specified in the recital of parties to this Agreement. 
  
 “Dollar Equivalent” has the meaning specified in Section 2.15(h). 
  
 “Domestic Lending Office” means, with respect to any Bank,
the office of such Bank specified as its “Domestic Lending Office” opposite in its Administrative Questionnaire or in the Assignment and Acceptance pursuant to which it became a Bank, as the case may be, or such 

  

 7 

 
other office of such Bank as such Bank may from time to time specify to any Account Party and the Administrative Agent. 
  
 “Downgrade Account” has the meaning specified in
Section 2.14(a). 
  
 “Downgrade
Event” means, with respect to any Bank, a reduction of the credit rating for the senior unsecured unsupported long-term debt of such Bank (or, if no such rating exists, then a reduction of the long-term issuer credit rating of such Bank) by
S&P or Moody’s. 
  
 “Downgrade Notice”
has the meaning specified in Section 2.14(a). 
  
 “Downgraded Bank” means any Bank which has a credit rating of less than A- (in the case of S&P) or A3 (in the case of Moody’s) for its senior unsecured unsupported long-term debt or which does not have any credit
rating on such debt from one of S&P or Moody’s; provided, that if at any time such Bank has no such senior unsecured unsupported long-term debt rating from either rating service but does have a long-term issuer credit rating from either or
both services, then such Bank shall not be considered a Downgraded Bank so long as such long-term issuer credit rating remains at or above A- (in the case of S&P) or A3 (in the case of Moody’s). 
  
 “Effective Date” means the first date on which the
conditions set forth in Article III shall have been satisfied. 
  
 “Eligible Assignee” means (i) a Bank, (ii) an Affiliate of a Bank, or (iii) a commercial bank, a savings bank or other financial institution that is approved by the Administrative Agent and, unless an Event of Default has
occurred and is continuing at the time any assignment is effected pursuant to Section 9.07, the Parent (such approvals not to be unreasonably withheld or delayed); provided, however, that neither any Loan Party nor any
Affiliate of a Loan Party shall qualify as an Eligible Assignee under this definition. 
  
 “Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order
or consent agreement relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental
or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or
injunctive relief. 
  
 “Environmental Law” means
any federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health,
safety or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 
  
 “Environmental Permit” means any permit, approval, identification number, license or other authorization
required under any Environmental Law. 
  

 8 

 “Equity Interests” means, with respect to any Person, shares of capital stock of (or
other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, securities
convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other interests),
and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
authorized or otherwise existing on any date of determination. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of the controlled
group of any Loan Party, or under common control with any Loan Party, within the meaning of Section 414 of the Internal Revenue Code or Section 4001 of ERISA. 
  

“Events of Default” has the meaning specified in Section 6.01. 
  
 “Existing Letters of Credit” means, collectively, the
letters of credit outstanding on the Effective Date issued by Wachovia, CitiBank and Barclays pursuant to the Existing Reimbursement Agreement, which letters of credit are listed on Schedule II hereto. 
  
 “Existing Reimbursement Agreement” has the meaning specified
in the Preliminary Statement hereof. 
  
 “Existing Secured
Reimbursement Agreement” means the Reimbursement Agreement, dated as of September 22, 2004, among the Account Parties, the banks and other lenders named therein, Wachovia, as an Issuing Bank and as Administrative Agent, Bank of America, as
Syndication Agent, as amended, providing for a $500,000,000 secured letter of credit facility for the benefit of the Account Parties. 
  
 “Expiration Date” shall mean July 1, 2010. 
  
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it. 
  
 “Fee
Letter” means the fee letter dated June 1, 2005 among the Parent, Wachovia and Wachovia Capital Markets, LLC, as amended. 
  

 9 

 “Fiscal Year” means the fiscal year of the Parent and its Consolidated Subsidiaries
ending on December 31 in any calendar year. 
  
 “Foreign
Government Scheme or Arrangement” has the meaning specified in Section 4.01(l)(ii). 
  
 “Foreign Plan” has the meaning specified in Section 4.01(l)(ii). 
  
 “GAAP” has the meaning specified in Section
1.03. 
  
 “Guaranty” means the undertaking
by each of the Account Parties under Article VII. 
  
 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals,
materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law. 
  
 “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contracts and other hedging agreements. 
  
 “Indemnified Party” has the meaning specified in Section 9.04(b). 
  
 “Initial Banks” has the meaning specified in the recital of parties to this Agreement. 
  
 “Intercompany Letter of Credit” means a Letter of Credit
issued for the account of any Account Party (whether alone or jointly with any one or more other wholly owned Subsidiaries of the Parent) in favor of one or more beneficiaries each of which is a wholly owned Subsidiary of the Parent (whether or not
any such beneficiary is an Account Party hereunder). 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “Investment” in any Person means any loan or advance to such Person, any purchase or other acquisition of
any Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital contribution to such Person or any other direct or indirect investment in such Person,
including, without limitation, any acquisition by way of a merger or consolidation and any arrangement pursuant to which the investor incurs Debt of the types referred to in clause (h) or (i) of the definition of “Debt” in respect of such
Person; provided, however, that any purchase by any Loan Party or any Subsidiary of any catastrophe-linked instruments which are (x) issued for the purpose of transferring traditional reinsurance risk to the capital markets and (y)
purchased by such Loan Party or Subsidiary in accordance with its customary reinsurance underwriting procedures, or the entry by any Loan Party or any Subsidiary into swap instruments relating to such instruments in accordance with such procedures,
shall be deemed to be the entry by such Person into a reinsurance contract and shall not be deemed to be an Investment by such Person. 
  

 10 

 “Issuing Banks” means Wachovia, CitiBank, Barclays and any other Bank that has been
appointed by the Parent, has accepted such appointment and has been approved in writing by the Administrative Agent (which approval shall not be unreasonably withheld). 
  
 “Joint Lead Arrangers” means Wachovia Capital Markets, LLC and Banc of America Securities, LLC,
collectively. 
  
 “JPMorgan Credit Agreement” has
the meaning specified in Section 5.02(a)(xvii). 
  
 “Judgment Currency” has the meaning specified in Section 2.15(g). 
  
 “LC Commitment Amount” means, with respect to any Bank at any time, the amount set forth opposite such Bank’s name on Schedule
I hereto under the caption “LC Commitment Amount” or, if such Bank has entered into one or more Assignment and Acceptances or has become a Bank, or has increased its LC Commitment pursuant to Section 2.16, the amount set forth
for such Bank in the Register maintained by the Administrative Agent pursuant to Section 9.07(d) as such Bank’s “LC Commitment Amount”, as such amount may be reduced at or prior to such time pursuant to Section
2.04. 
  
 “LC Participation Obligations” has
the meaning specified in Section 2.14(a). 
  
 “L/C Related Documents” has the meaning specified in Section 2.03(a)(ii). 
  
 “Letter of Credit Advance” has the meaning specified in Section 2.02(g). 
  
 “Letter of Credit Agreement” has the meaning specified in
Section 2.02(a). 
  
 “Letter of Credit
Exposure” at any time means the sum at such time of (a) the aggregate outstanding amount of Letter of Credit Advances, (b) the aggregate Available Amounts of all outstanding Letters of Credit (including, without limitation, all outstanding
Existing Letters of Credit) and (c) the aggregate Available Amounts of all Letters of Credit which have been requested by an Account Party to be issued hereunder but have not yet been so issued. 
  
 “Letter of Credit Participating Interest” has the meaning
specified in Section 2.02(e). 
  
 “Letter of
Credit Participating Interest Commitment” has the meaning specified in Section 2.02(e). 
  
 “Letter of Credit Participating Interest Percentage” means, for any Bank, a fraction, expressed as a percentage, the numerator of which
is such Bank’s LC Commitment Amount and the denominator of which is the aggregate LC Commitment Amounts of all the Banks. 
  
 “Letters of Credit” has the meaning specified in Section 2.01. 
  
 “Lien” means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property.

  

 11 

 “Loan Documents” means (i) this Agreement, (ii) the Fee Letter and (iii) each Letter of
Credit Agreement, in each case as amended from time to time. 
  
 “Loan Parties” means the Account Parties. 
  
 “Mandatorily Convertible Preferred Securities” means units comprised of (i) Preferred Securities or preferred shares of Parent and (ii) a contract for the sale of ordinary shares of the Parent. 
  
 “Margin Stock” has the meaning specified in Regulation U.

  
 “Material Adverse Change” means any material
adverse change in the business, financial condition, operations or properties of the Parent and its Subsidiaries, taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, condition, operations or properties of the Parent and its
Subsidiaries, taken as a whole, (b) the rights and remedies of the Administrative Agent, any Issuing Bank or any Bank under any Loan Document or (c) the ability of the Loan Parties, taken as a whole, to perform their obligations under the Loan
Documents. 
  
 “Material Financial Obligation”
means a principal amount of Debt and/or payment obligations in respect of any Hedge Agreement of the Parent and/or one or more of its Subsidiaries arising in one or more related or unrelated transactions exceeding in the aggregate $50,000,000.

  
 “Material Subsidiary” means (i) any
Subsidiary of the Parent that has more than $10,000,000 in assets or that had more than $10,000,000 of revenue during the most recent period of four fiscal quarters for which financial statements are available, and (ii) any Subsidiary that is the
direct or indirect parent company of any Subsidiary that qualified as a “Material Subsidiary” under clause (i) above. 
  
 “Minimum Amount” has the meaning set forth in Section 5.04(b). 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Multiemployer Plan” means a multiemployer plan, as defined
in Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions.

  
 “Net Proceeds” means, with respect to any
issuance of Equity Interests by any Person, the amount of cash received by such Person in connection with such transaction after deducting therefrom the aggregate, without duplication, of the following amounts to the extent properly attributable to
such transaction: (a) reasonable brokerage commissions, attorneys’ fees, finder’s fees, financial advisory fees, accounting fees, underwriting fees, investment banking fees, and other similar commissions, and fees and expenses and
disbursements of any of the foregoing, in each case to the extent paid or payable by such Person; (b) printing and related expenses of filing and recording or registration fees or charges or similar fees or charges paid by such Person; and 

  

 12 

 
(c) taxes paid or payable by such Person to any governmental authority or regulatory body as a result of such transaction. 
  
 “Non-Dollar Letters of Credit” has the meaning specified in
Section 2.15(a). 
  
 “OFAC” means
the U.S. Department of the Treasury’s Office of Foreign Assets Control, and any successor thereto. 
  
 “Other Taxes” has the meaning specified in Section 2.08(b). 
  
 “Overnight Rate” has the meaning specified in Section 2.15(h). 
  
 “Parent” has the meaning specified in the recital of parties
to this Agreement. 
  
 “Patriot Act” means the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended from time to time, and any successor statute,
and all rules and regulations from time to time promulgated thereunder. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
  
 “Pension Plan” means a “pension plan”, as such term is defined in section 3(2) of ERISA, which is subject to title IV of ERISA
(other than any “multiemployer plan” as such term is defined in section 4001(a)(3) of ERISA), and to which any Loan Party or any ERISA Affiliate may have any liability, including any liability by reason of having been a substantial
employer within the meaning of section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing sponsor under section 4069 of ERISA. 
  
 “Permitted Liens” means such of the following as to which no enforcement, collection, execution, levy or
foreclosure proceeding shall have been commenced or which are being contested in good faith by appropriate proceedings: (a) Liens for taxes, assessments and governmental charges or levies not yet due and payable; (b) Liens imposed by law, such as
materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than 90 days; (c)
pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; and (d) easements, rights of way and other encumbrances on title to real property that do not render
title to the property encumbered thereby unmarketable or materially adversely affect the use of such property for its present purposes. 
  
 “Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company,
trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
  
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are entitled to a preference or
priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
  

 13 

 “Preferred Securities” means (i) preferred securities issued by a Special Purpose Trust
which shall provide, among other things, that dividends shall be payable only out of proceeds of interest payments on the Debentures, or (ii) other instruments that may be treated in whole or in part as equity for rating agency purposes while being
treated as debt for tax purposes. 
  
 “Pro Rata”
means from and to the Banks in accordance with their respective Letter of Credit Participating Interest Percentages. 
  
 “Pro Rata Share” means, for any Bank, its share determined Pro Rata, in accordance with the definition of the term “Pro Rata.”

  
 “Public Debt Rating” means, as of any date,
the higher rating that has been most recently announced by either S&P or Moody’s, as the case may be, for any class of non-credit enhanced long-term senior unsecured debt issued by the Parent; provided that if at any time the
difference between the ratings of such type most recently announced by S&P and Moody’s is more than one rating grade, the Public Debt Rating shall be the rating that is one grade below the higher of such two ratings. For purposes of the
foregoing, (a) if only one of S&P and Moody’s shall have in effect a rating for any class of non-credit enhanced long-term senior unsecured debt issued by the Parent, the Public Debt Rating shall be the available rating; (b) if neither
S&P nor Moody’s shall have in effect a rating for any class of non-credit enhanced long-term senior unsecured debt issued by the Parent, the Public Debt Rating shall be the rating which is three rating levels below the Parent’s S&P
financial strength rating at such time, provided that, in the event that the Parent’s S&P financial strength rating is affirmed at (i) A+, the applicable Level will be Level 2 and (ii) A+ and on credit watch/review with negative
implications, the applicable Level will be Level 3; (c) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making
such change; and (d) if S&P or Moody’s shall change the basis on which ratings are established, each reference herein to ratings announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P
or Moody’s, as the case may be. 
  
 “Redeemable” means, with respect to any Equity Interest, any Debt or any other right or obligation, any such Equity Interest, Debt, right or obligation that (a) the issuer has undertaken to redeem at a fixed or determinable
date or dates, whether by operation of a sinking fund or otherwise, or upon the occurrence of a condition not solely within the control of the issuer or (b) is redeemable at the option of the holder. 
  
 “Register” has the meaning specified in Section
9.07(d). 
  
 “Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Required Banks” means, at any time, Banks owed or holding at least a majority in interest of the sum of (a) aggregate principal amount
of the Letter of Credit Advances outstanding at such time and (b) the aggregate Available Amount of all Letters of Credit outstanding at such time, or, if no such principal amount and no Letters of Credit are outstanding at such time, Banks having
LC Commitment Amounts constituting at least a majority in interest of the aggregate of the LC Commitment Amounts; provided, however, that if any Bank shall be a 

  

 14 

 
Defaulting Bank at such time, there shall be excluded from the determination of Required Banks at such time (A) the aggregate principal amount of the
interest of such Bank in Letter of Credit Advances and outstanding at such time, (B) such Bank’s Pro Rata Share of the aggregate Available Amount of all Letters of Credit outstanding at such time and (C) the Unused LC Commitment Amount of such
Bank at such time. 
  
 “Responsible Officer”
means the Chairman, Chief Executive Officer, President, Chief Financial Officer, Chief Accounting Officer, Treasurer or General Counsel of the Parent. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  
 “Sanctioned Country” means a country subject to a sanctions
program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as otherwise published by OFAC from time to time. 
  
 “Sanctioned Person” means (i) a Person named on the list of Specially Designated Nationals or Blocked
Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf, or as otherwise published by OFAC from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, or (B) a Person resident in a
Sanctioned Country, to the extent subject to a sanctions program administered by OFAC. 
  
 “Secured Letter of Credit Facility” means the $500,000,000 secured letter of credit facility for the benefit of the Account Parties evidenced by the Reimbursement Agreement, dated as of even date
herewith, among the Account Parties, the banks and other lenders named therein, Bank of America, as Syndication Agent, Barclays and CitiBank, as Issuing Banks, and Wachovia, as an Issuing Bank and as Administrative Agent (as amended or otherwise
modified from time to time). 
  
 “Securitization
Transaction” means any sale, assignment or other transfer by Parent or any Subsidiary of any accounts receivable, premium finance loan receivables, lease receivables or other payment obligations owing to Parent or such Subsidiary or any
interest in any of the foregoing, together in each case with any collections and other proceeds thereof, any collection or deposit accounts related thereto, and any collateral, guaranties or other property or claims in favor of Parent or such
Subsidiary supporting or securing payment by the obligor thereon of, or otherwise related to, any such receivables. 
  
 “Significant Subsidiary” means a Subsidiary of Parent that is a “significant subsidiary” of the Parent under Regulation S-X
promulgated by the Securities and Exchange Commission. 
  
 “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities,
including, without limitation, contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as
they become absolute and matured, (c) such 

  

 15 

 
Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities
as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Special Purpose Trust” means a special purpose business
trust established by the Parent or ACE INA of which the Parent or ACE INA will hold all the common securities, which will be the issuer of the Preferred Securities, and which will loan to the Parent or ACE INA (such loan being evidenced by the
Debentures) the net proceeds of the issuance and sale of the Preferred Securities and common securities of such Special Purpose Trust. 
  
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in
which) more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of
such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) the beneficial interest in such trust or
estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 
  
 “Subsidiary Guarantors” means the Account Parties (other
than the Parent). 
  
 “Syndication Agent” has the
meaning specified in the recital of parties to this Agreement. 
  
 “Taxes” has the meaning specified in Section 2.08(a). 
  
 “Tempest” has the meaning specified in the recital of parties to this Agreement. 
  
 “Tempest Life” has the meaning specified in the recital of parties to this Agreement. 
  
 “Third Party Letter of Credit” means a Letter of Credit
other than an Intercompany Letter of Credit. 
  
 “Total
Capitalization” means, at any time, an amount (without duplication) equal to (i) the then outstanding Consolidated Debt of the Parent and its Subsidiaries plus (ii) Consolidated stockholders equity of the Parent and its Subsidiaries plus
(without duplication) (iii) the then issued and outstanding amount of Preferred Securities (including Mandatorily Convertible Preferred Securities) and (without duplication) Debentures. 
  
 “Type”, with respect to any Letter of Credit, means and refers to whether such Letter of Credit is an
Intercompany Letter of Credit or a Third Party Letter of Credit. 
  
 “Unused LC Commitment Amount” means, with respect to any Bank at any time, (a) such Bank’s LC Commitment Amount at such time minus (b) such Bank’s Pro Rata Share of 

  

 16 

 
(i) the aggregate Available Amount of all Letters of Credit hereunder (including, without limitation, all Existing Letters of Credit) and (ii) the aggregate
principal amount of all Letter of Credit Advances made by the Issuing Banks pursuant to Section 2.02(g) and outstanding at such time (whether held by the Issuing Banks or the Banks). 
  
 “U.S. Person” means any Person (i) organized under the laws
of the United States or any jurisdiction within the United States (including foreign branches thereof) or (ii) located in the United States. 
  
 “Voting Interests” means shares of capital stock issued by a corporation, or equivalent Equity Interests in any other Person, the holders
of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a
contingency. 
  
 “Wachovia” has the meaning
specified in the recital of parties to this Agreement. 
  
 “Welfare Plan” means a welfare plan, as defined in Section 3(1) of ERISA, that is maintained for employees of any Loan Party or in respect of which any Loan Party could have liability. 
  
 “Withdrawal Liability” has the meaning specified in Part I
of Subtitle E of Title IV of ERISA. 
  
 1.02 Computation of
Time Periods; Other Definitional Provisions. In this Agreement and the other Loan Documents in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”. References in the Loan Documents to any agreement or contract “as amended” shall mean and be a reference to such agreement or
contract as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its terms. 
  
 1.03 Accounting Terms and Determinations. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with generally accepted accounting principles as in effect from time to time in the United States of
America (“GAAP”), applied on a basis consistent (except for changes concurred in by the Parent’s independent public accountants) with the most recent audited consolidated financial statements of the Parent and its Subsidiaries
delivered to the Banks; provided that, if the Parent notifies the Administrative Agent that the Parent wishes to amend any covenant in Article V to eliminate the effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies the Parent that the Required Banks wish to amend Article V for such purpose), then the Parent’s compliance with such covenant shall be determined on the basis of
generally accepted accounting principles in effect immediately before the relevant change in generally accepted accounting principles became effective (and, concurrently with the delivery of any financial statements required to be delivered
hereunder, the Parent shall provide a statement of reconciliation conforming such financial information to such generally accepted accounting principles as previously in effect), until either 

  

 17 

 
such notice is withdrawn or such covenant is amended in a manner satisfactory to the Parent and the Required Banks. 
  
 ARTICLE II 
  
 AMOUNTS AND TERMS OF 
 THE LETTERS OF CREDIT 
  
 2.01 The Letters of Credit. Each Issuing Bank agrees, on the terms and subject to the conditions herein set forth, to issue standby letters
of credit (the “Letters of Credit”) for the account of any Account Party on any Business Day from time to time during the period from the Effective Date to the Expiration Date. From and after the Effective Date, the Existing Letters
of Credit shall be Letters of Credit hereunder. Letters of Credit may be issued as Intercompany Letters of Credit or Third Party Letters of Credit, subject to the terms and conditions of this Agreement. No Issuing Bank shall have any obligation to
issue, and no Account Party will request the issuance of, any Letter of Credit hereunder if either (a) the aggregate Available Amounts of all Letters of Credit issued by such Issuing Bank would exceed, after giving effect to such issuance, the
maximum amount set forth in a letter agreement between such Issuing Bank and the Parent, on behalf of the Account Parties, or (b) any Bank’s Pro Rata Share of the Available Amount of such Letter of Credit exceeds, immediately before the time of
such issuance, an amount equal to such Bank’s Pro Rata Share of the total Unused LC Commitment Amounts of the Banks at such time (as such amount shall be advised by the Administrative Agent to the respective Issuing Bank as contemplated by
Section 2.02). Unless all the Banks consent otherwise in writing, no Issuing Bank shall have any obligation to issue, and no Account Party shall request the issuance of, any Letter of Credit hereunder if the Available Amount of such Letter of
Credit exceeds, immediately before the time of such issuance, an amount equal to the total Unused LC Commitment Amounts of the Banks at such time (as such amount shall be advised by the Administrative Agent to the respective Issuing Bank as
contemplated by Section 2.02). No Issuing Bank shall have any obligation to issue, and no Account Party shall request the issuance of, any Letter of Credit except within the following limitations: (i) subject to the provisions of
Section 2.15, each Letter of Credit shall be denominated in U.S. dollars, (ii) each Letter of Credit shall be payable only against sight drafts (and not time drafts) and (iii) no Letter of Credit shall have an expiration date
(including all rights of the Applicable Account Party or the beneficiary to require renewal) later than one year after the date of issuance thereof, but a Letter of Credit may by its terms be automatically renewable annually unless the respective
Issuing Bank notifies the beneficiary thereof of its election not to renew such Letter of Credit (which such Issuing Bank agrees to do on and subject to the terms of Section 2.02(d)). No Issuing Bank shall have any obligation to issue
any Letter of Credit which is unsatisfactory in form, substance or beneficiary to such Issuing Bank in the exercise of its reasonable judgment consistent with its customary practice. No Issuing Bank shall have any obligation to issue a Letter of
Credit in favor of a beneficiary that is a Sanctioned Person or that is organized under the laws of a Sanctioned Country. Letters of Credit may be issued for the account of any Subsidiary of the Parent that is not an Account Party hereunder,
provided that the Parent shall be a joint applicant and account party with respect to any such Letter of Credit. 
  

 18 

 2.02 Issuance and Renewals and Drawings, Participations and Reimbursement with Respect to Letters of
Credit. 
  
 (a) Request for Issuance. An Account Party
may from time to time request, upon at least three Business Days’ notice (given not later than 11:00 A.M. Charlotte, North Carolina time on the last day permitted therefor), an Issuing Bank issue or renew (other than any automatic renewal
thereof) a Letter of Credit by: 
  
 (i)
delivering to such Issuing Bank, with a copy to the Administrative Agent, either (x) a written request to such effect or (y) a request made in electronic form through such Issuing Bank’s remote access system and in accordance with the terms and
conditions (including any written agreements between such Issuing Bank and any Account Party) applicable thereto, in each case specifying the date on which such Letter of Credit is to be issued (which shall be a Business Day), the expiration date
thereof, the Available Amount thereof, the name and address of the beneficiary thereof and the form thereof, and in each case with a copy of such request (or, in the case of clause (y) above, a written or electronic summary thereof) to the
Administrative Agent; and 
  
 (ii) in the case of
the issuance of a Letter of Credit, delivering to such Issuing Bank, with a copy to the Administrative Agent, a completed agreement and application with respect to such Letter of Credit as such Issuing Bank may specify for use in connection with
such requested Letter of Credit (a “Letter of Credit Agreement”), together with such other certificates, documents and other papers or information as are specified in such Letter of Credit Agreement or as may be required pursuant to
such Issuing Bank’s customary practices for the issuance of letters of credit (including requirements relating to requests made through such Issuing Bank’s remote access system). 
  
 If the limitation set forth in Section 2.01(b) is satisfied and if the Required Banks
have not given notice to the Administrative Agent to cease issuing or renewing Letters of Credit as contemplated by this Agreement, the Administrative Agent shall promptly notify the respective Issuing Bank (in writing or by telephone immediately
confirmed in writing) that such Issuing Bank is authorized to issue or renew, as the case may be, such Letter of Credit. An Issuing Bank shall not issue or renew, as the case may be, any Letter of Credit (other than by the automatic renewal thereof)
unless it shall have received notice from the Administrative Agent that it is authorized to do so as described in the preceding sentence. If such Issuing Bank issues or renews a Letter of Credit, it shall deliver the original of such Letter of
Credit to the beneficiary thereof or as the Applicable Account Party shall otherwise direct, and shall promptly notify the Administrative Agent thereof and furnish a copy thereof to the Administrative Agent. Each Issuing Bank may issue Letters of
Credit through any of its branches or Affiliates (whether domestic or foreign) that issue letters of credit, and each Account Party authorizes and directs each Issuing Bank to select the branch or Affiliate that will issue or process any Letter of
Credit. 
  
 (b) Request for Extension or Increase. An
Account Party may from time to time request an Issuing Bank extend the expiration date of an outstanding Letter of Credit issued for its account or increase (or, with the consent of the beneficiary, decrease) the Available Amount 

  

 19 

 
of or the amount available to be drawn on such Letter of Credit by delivering to such Issuing Bank, with a copy to the Administrative Agent, either (i) a
written request to such effect or (ii) a request made in electronic form through such Issuing Bank’s remote access system. Such extension or increase shall for all purposes hereunder (including for purposes of Section 2.02(a)) be treated
as though such Account Party had requested issuance of a replacement Letter of Credit (except only that such Issuing Bank may, if it elects, issue a notice of extension or increase in lieu of issuing a new Letter of Credit in substitution for the
outstanding Letter of Credit). 
  
 (c) Automatic Renewals.
If any Letter of Credit shall provide for the automatic renewal of the expiry date thereof unless the respective Issuing Bank gives notice that such expiry date shall not be renewed, then the respective Issuing Bank shall allow such Letter of Credit
to be renewed unless it shall have received, at least five days prior to the date on which such notice of nonrenewal must be delivered under such Letter of Credit (or such shorter period acceptable to the respective Issuing Bank) (i) notice from the
Administrative Agent that such Issuing Bank is not authorized to renew such Letter of Credit (or Letters of Credit generally), or (ii) notice from any Account Party that it does not want the Issuing Bank to renew such Letter of Credit. An Issuing
Bank shall not allow any Letter of Credit to be automatically renewed if it has received notice from the Administrative Agent, as described in the preceding sentence, that it is not authorized to do so anytime prior to the date five days prior to
the date on which the notice of nonrenewal must be delivered under such Letter of Credit. 
  
 (d) Limitations on Issuance, Extension, Renewal and Amendment. As between each Issuing Bank, on the one hand, and the Agents and the Banks, on the other hand, each Issuing Bank shall be justified and fully
protected (i) in issuing or renewing a proposed Letter of Credit (other than by the automatic renewal thereof) if such Issuing Bank has received notice from the Administrative Agent that such Issuing Bank is authorized to issue or renew such Letter
of Credit, and (ii) in allowing a Letter of Credit to be automatically renewed if such Issuing Bank has not received notice from the Administrative Agent as provided in Section 2.02(c) hereof that it is not authorized to do so at any time
prior to the date five days prior to the date on which the notice of nonrenewal must be delivered under such Letter of Credit, in either case, notwithstanding any subsequent notices to such Issuing Bank, any knowledge of a Default, any knowledge of
failure of any condition specified in Article III hereof to be satisfied, any other knowledge of such Issuing Bank, or any other event, condition or circumstance whatsoever. Each Issuing Bank may amend, modify or supplement Letters of Credit
or Letter of Credit Agreements, or waive compliance with any condition of issuance, renewal or payment, without the consent of, and without liability to, any Agent or any Bank, provided that any such amendment, modification or supplement that
extends the expiration date or increases the Available Amount of or the amount available to be drawn on an outstanding Letter of Credit shall be subject to Section 2.01. With respect to each Letter of Credit that remains outstanding at any
time after the Expiration Date and that provides by its terms for automatic renewal, the respective Issuing Bank shall notify the beneficiary thereof, in accordance with the terms specified for such notice in such Letter of Credit, of such Issuing
Bank’s election not to renew such Letter of Credit. 
  
 (e)
Letter of Credit Participating Interests. Concurrently with the issuance of each Letter of Credit (and upon the Effective Date, with respect to each Existing Letter of Credit, and without any further action by any party to this Agreement),
the respective Issuing Bank 

  

 20 

 
automatically shall be deemed, irrevocably and unconditionally, to have sold, assigned, transferred and conveyed to each other Bank, and each other Bank
automatically shall be deemed, irrevocably and unconditionally, severally to have purchased, acquired, accepted and assumed from such Issuing Bank, without recourse to, or representation or warranty by, such Issuing Bank, an undivided interest, in a
proportion equal to such Bank’s Pro Rata Share, in all of such Issuing Bank’s rights and obligations in, to or under such Letter of Credit, the related Letter of Credit Agreement, all reimbursement obligations with respect to such Letter
of Credit, and all collateral, guarantees and other rights from time to time directly or indirectly securing the foregoing (such interest of each Bank being referred to herein as a “Letter of Credit Participating Interest”, it being
understood that the Letter of Credit Participating Interest of such Issuing Bank is the interest not otherwise attributable to the Letter of Credit Participating Interests of the other Banks). Each Bank irrevocably and unconditionally agrees to the
immediately preceding sentence, such agreement being herein referred to as such Bank’s “Letter of Credit Participating Interest Commitment”. Amounts, other than Letter of Credit Advances made by a Bank other than the Issuing
Banks and other than Letter of Credit commissions under Section 2.05(c)(i), payable from time to time under or in connection with a Letter of Credit or Letter of Credit Agreement shall be for the sole account of the Issuing Banks. On the date
that any assignee becomes a party to this Agreement in accordance with Section 9.07 hereof, Letter of Credit Participating Interests in all outstanding Letters of Credit held by the Bank from which such assignee acquired its interest
hereunder shall be proportionately reallocated between such assignee and such assignor Bank (and, to the extent such assignor Bank is an Issuing Bank, the assignee Bank shall be deemed to have acquired a Letter of Credit Participating Interest from
such Issuing Bank to such extent). Notwithstanding any other provision hereof, each Bank hereby agrees that its obligation to participate in each Letter of Credit, its obligation to make the payments specified in Section 2.02(f), and
the right of each Issuing Bank to receive such payments in the manner specified therein, are each absolute, irrevocable and unconditional and shall not be affected by any event, condition or circumstance whatever. The failure of any Bank to make any
such payment shall not relieve any other Bank of its funding obligation hereunder on the date due, but no Bank shall be responsible for the failure of any other Bank to meet its funding obligations hereunder. 
  
 (f) Payment by Banks on Account of Unreimbursed Draws. If an Issuing
Bank makes a payment under any Letter of Credit and is not reimbursed in full therefor in accordance with Section 2.03(a), such Issuing Bank may notify the Administrative Agent thereof (which notice may be by telephone), and the
Administrative Agent shall forthwith notify each Bank (which notice may be by telephone promptly confirmed in writing) thereof. No later than the Administrative Agent’s close of business on the date such notice is given (if notice is given by
2:00 P.M. Charlotte, North Carolina time) or 10:00 A.M. Charlotte, North Carolina time the following day (if notice is given after 2:00 P.M. Charlotte, North Carolina time or in the case of any Bank whose Applicable Lending Office is located in
Europe), each Bank will pay to the Administrative Agent, for the account of such Issuing Bank, in immediately available funds, an amount equal to such Bank’s Pro Rata Share of the unreimbursed portion of such payment by such Issuing Bank.
Amounts received by the Administrative Agent for the account of such Issuing Bank shall be forthwith transferred, in immediately available funds, to such Issuing Bank. If and to the extent that any Bank fails to make such payment to the
Administrative Agent for the account of such Issuing Bank on such date, such Bank shall pay such amount on demand, together with interest, for such Issuing Bank’s own account, for each day from and including the 

  

 21 

 
date such payment is due from such Bank to such Issuing Bank to but not including the date of repayment to such Issuing Bank (before and after judgment) at a
rate per annum for each day (i) from and including the date such payment is due from such Bank to such Issuing Bank to and including the second Business Day thereafter equal to the Federal Funds Rate and (ii) thereafter equal to the Base Rate. For
avoidance of doubt, it is understood and agreed by the Banks that Letters of Credit issued prior to the Expiration Date may, by their terms, remain outstanding after the Expiration Date and that the obligations of the Banks to make payments under
this Section 2.02(f) shall continue from and after the Expiration Date until the expiration or termination of all Letters of Credit, subject to and in accordance with the terms hereof. 
  
 (g) Letter of Credit Advances. The term “Letter of Credit
Advance” is used in this Agreement in accordance with the meanings set forth in this Section2.02(g). The making of any payment by an Issuing Bank under a Letter of Credit is sometimes referred to herein as the making of a
Letter of Credit Advance by such Issuing Bank in the amount of such payment. The making of any payment by a Bank for the account of an Issuing Bank under Section 2.02(f) on account of an unreimbursed drawing on a Letter of Credit is sometimes
referred to herein as the making of a Letter of Credit Advance to the Applicable Account Party by such Bank. The making of such a Letter of Credit Advance by a Bank with respect to an unreimbursed drawing on a Letter of Credit shall reduce, by a
like amount, the outstanding Letter of Credit Advance of the Issuing Bank with respect to such unreimbursed drawing. 
  
 (h) Letter of Credit Reports. Each Issuing Bank will furnish to the Administrative Agent prompt written notice of each issuance or renewal of a
Letter of Credit (including the Available Amount and expiration date thereof), amendment to a Letter of Credit, cancellation of a Letter of Credit and payment on a Letter of Credit. The Administrative Agent will furnish (A) to each Bank prior to the
fifteenth Business Day of each calendar quarter a written report summarizing issuance, renewal and expiration dates of Letters of Credit issued or renewed during the preceding calendar quarter and payments and reductions in Available Amount during
such calendar quarter on all Letters of Credit and (B) to each Bank prior to the fifteenth Business Day of each calendar quarter a written report setting forth the average daily aggregate Available Amount during the preceding calendar quarter of all
Letters of Credit. 
  
 2.03 Repayment of Advances.

  
 (a) Account Parties’ Reimbursement Obligation.

  
 (i) Each Account Party hereby agrees to
reimburse each Issuing Bank (by making payment to the Administrative Agent for the account of each Issuing Bank in accordance with Section 2.07) in the amount of each payment made by each Issuing Bank under any Letter of Credit issued
for such Account Party’s account, such reimbursement to be made on the date such payment under such Letter of Credit is made by the Issuing Bank (but not earlier than one Business Day after notice of the drawing giving rise to such payment
under such Letter of Credit is given to such Account Party). Such reimbursement obligation shall be payable without further notice, protest or demand, all of which are hereby waived, and an action therefor shall immediately accrue. To the extent
such payment by such Account Party is not timely made as provided in the first sentence of this 

  

 22 

 
clause (i), such Account Party hereby agrees to pay to the Administrative Agent, for the respective accounts of each Issuing Bank and the Banks which have
funded their respective shares of such amount remaining unpaid by such Account Party, on demand, interest at a rate per annum equal to the Base Rate plus 2%, for each day from and including the date on which the Applicable Account Party is to
reimburse such Issuing Bank to, but excluding, the date such obligation is paid in full. 
  
 (ii) The obligation of each Account Party to reimburse each Issuing Bank for any payment made by each Issuing Bank under any Letter of
Credit, and the obligation of each Bank under Section 2.02(f) with respect thereto, shall be unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement, the applicable Letter of Credit Agreement
and any other applicable agreement or instrument under all circumstances, including, without limitation, the following circumstances: 
  
 (A) any lack of validity or enforceability of any Loan Document, any Letter of Credit Agreement, any Letter of Credit or any other
agreement or instrument relating thereto (all of the foregoing being, collectively, the “L/C Related Documents”); 
  
 (B) any change in the time, manner or place of payment of, or in any other term of, all or any of the obligations of any Account Party or
any other Person in respect of any L/C Related Document or any other amendment or waiver of or any consent to departure from all or any of the L/C Related Documents; 
  
 (C) the existence of any claim, set-off, defense or other right that any Account Party or any other Person
may have at any time against any beneficiary or any transferee of a Letter of Credit (or any Persons for which any such beneficiary or any such transferee may be acting), any Issuing Bank or any other Person, whether in connection with the
transactions contemplated by the L/C Related Documents or any unrelated transaction; 
  
 (D) any statement or any other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (E) payment by any Issuing Bank under a Letter of Credit against presentation of a draft or certificate that does not strictly comply with
the terms of such Letter of Credit; 
  
 (F) any
exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from the Guaranty or any other guarantee, for all or any of the obligations of any 

  

 23 

 
Account Party or any other Person in respect of the L/C Related Documents; or 
  
 (G) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing,
including, without limitation, any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Account Party or a guarantor. 
  
 (b) Rescission. If any amount received by an Issuing Bank on account of any Letter of Credit Advance shall be
avoided, rescinded or otherwise returned or paid over by such Issuing Bank for any reason at any time, whether before or after the termination of this Agreement (or such Issuing Bank believes in good faith that such avoidance, rescission, return or
payment is required, whether or not such matter has been adjudicated), each Bank will (except to the extent a corresponding amount received by such Bank on account of its Letter of Credit Advance relating to the same payment on a Letter of Credit
has been avoided, rescinded or otherwise returned or paid over by such Bank), promptly upon notice from the Administrative Agent or such Issuing Bank, pay over to the Administrative Agent for the account of such Issuing Bank its Pro Rata Share of
such amount, together with its Pro Rata Share of any interest or penalties payable with respect thereto. 
  
 2.04 Termination or Reduction of the LC Commitment Amounts. The Parent may, upon at least three Business Days’ notice to the
Administrative Agent, terminate in whole or reduce in part the unused portion of the LC Commitment Amounts; provided, however, that each partial reduction (i) shall be in an aggregate amount of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof and (ii) shall be made ratably among the Banks in accordance with their LC Commitment Amounts. 
  
 2.05 Fees. 
  
 (a) Commitment Fee. The Account Parties jointly and severally agree to pay to the Administrative Agent for the account of the Banks a commitment
fee, from the Effective Date in the case of each Initial Bank and from the effective date specified in the Assignment and Acceptance pursuant to which it became a Bank in the case of each other Bank until the Expiration Date, payable in arrears
quarterly on the last Business Day of each March, June, September and December commencing September 30, 2005 and on the Expiration Date, at the rate of the Applicable Commitment Fee Percentage on the average daily Unused LC Commitment Amount of each
Bank during such quarter (or shorter period); provided, however, that no commitment fee shall accrue on the LC Commitment Amount of a Defaulting Bank so long as such Bank shall be a Defaulting Bank. 
  
 (b) Administrative Agent’s Fees. The Account Parties jointly and
severally agree to pay to the Administrative Agent for its own account such fees as may from time to time be agreed between the Parent and the Administrative Agent. 
  
 (c) Letter of Credit Fees, Etc. 
  
 (i) The Account Parties jointly and severally agree to pay to the Administrative Agent for the account of
each Bank a commission, payable in 

  

 24 

 
arrears quarterly on the last Business Day of each March, June, September and December commencing September 30, 2005, and on the Expiration Date, on such
Bank’s Pro Rata Share of the average daily aggregate Available Amount during such quarter (or shorter period) of all Letters of Credit of each Type outstanding from time to time at the rate equal to the then Applicable Margin with respect to
such Type of Letters of Credit. 
  
 (ii) The
Account Parties jointly and severally agree to pay (x) to Wachovia, in its capacity as an Issuing Bank and for its own account, the facing fee referred to the Fee Letter, on the terms set forth therein, and (y) each Issuing Bank’s customary
issuance, presentation, amendment and other processing fees, and other standard costs and charges, relating to letters of credit as are from time to time in effect. With respect to each Existing Letters of Credit, the respective Issuing Bank shall
be entitled to receive the fees and other amounts provided for under this Section 2.05(c)(ii) (to the extent not previously paid to such Issuing Bank pursuant to the Existing Reimbursement Agreement) as if the Existing Letters of Credit were
issued hereunder on the Effective Date. 
  
 2.06 Increased
Costs, Etc. 
  
 (a) If, due to either (i) the introduction of
or any change in or in the interpretation of, in each case after the date hereof, any law or regulation or (ii) the compliance with any guideline or request issued after the date hereof from any central bank or other governmental authority (whether
or not having the force of law), there shall be any increase in the cost to any Bank of agreeing to issue or of issuing or maintaining or participating in Letters of Credit or the making of Letter of Credit Advances (excluding, for purposes of this
Section 2.06, any such increased costs resulting from (x) Taxes or Other Taxes (as to which Section 2.08 shall govern) and (y) changes in the basis of taxation of overall net income or overall gross income by the United States or by
the foreign jurisdiction or state under the laws of which such Bank is organized or has its Applicable Lending Office or any political subdivision thereof), then the Account Parties jointly and severally agree to pay, from time to time, within five
days after demand by such Bank (with a copy of such demand to the Administrative Agent), which demand shall include a statement of the basis for such demand and a calculation in reasonable detail of the amount demanded, to the Administrative Agent
for the account of such Bank additional amounts sufficient to compensate such Bank for such increased cost. A certificate as to the amount of such increased cost, submitted to the Account Parties by such Bank, shall be conclusive and binding for all
purposes, absent manifest error. 
  
 (b) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or regulation, in each case after the date hereof, or (ii) the compliance with any guideline or request issued after the date hereof from any central bank or other governmental
authority (whether or not having the force of law), there shall be any increase in the amount of capital required or expected to be maintained by any Bank or any corporation controlling such Bank as a result of or based upon the existence of such
Bank’s commitment to lend hereunder and other commitments of such type, then, within five days after demand by such Bank or such corporation (with a copy of such demand to the Administrative Agent), which demand shall include a statement of the
basis for such demand and a calculation in reasonable detail of the amount 

  

 25 

 
demanded, the Account Parties jointly and severally agree to pay to the Administrative Agent for the account of such Bank, from time to time as specified by
such Bank, additional amounts sufficient to compensate such Bank in the light of such circumstances, to the extent that such Bank reasonably determines such increase in capital to be allocable to the existence of such Bank’s commitment to issue
or participate in Letters of Credit hereunder or to the issuance or maintenance of or participation in any Letters of Credit. A certificate as to such amounts submitted to the Account Parties by such Bank shall be conclusive and binding for all
purposes, absent manifest error. 
  
 (c) Each Bank shall promptly
notify the Account Parties and the Administrative Agent of any event of which it has actual knowledge which will result in, and will use reasonable commercial efforts available to it (and not, in such Bank’s good faith judgment, otherwise
disadvantageous to such Bank) to mitigate or avoid any obligation by the Account Parties to pay any amount pursuant to Section 2.06(a) or 2.06(b) above or pursuant to Section 2.08 (and, if any Bank has given notice of any such
event and thereafter such event ceases to exist, such Bank shall promptly so notify the Account Parties and the Administrative Agent). Without limiting the foregoing, each Bank will designate a different Applicable Lending Office if such designation
will avoid (or reduce the cost to the Account Parties of) any event described in the preceding sentence and such designation will not, in such Bank’s good faith judgment, be otherwise disadvantageous to such Bank. 
  
 (d) Notwithstanding the provisions of Section 2.06(a), 2.06(b)
or 2.08 (and without limiting Section 2.06(c) above), if any Bank fails to notify the Account Parties of any event or circumstance that will entitle such Bank to compensation pursuant to Section 2.06(a), 2.06(b) or
2.08 within 120 days after such Bank obtains actual knowledge of such event or circumstance, then such Bank shall not be entitled to compensation from the Account Parties for any amount arising prior to the date which is 120 days before the
date on which such Bank notifies the Account Parties of such event or circumstance. For avoidance of doubt, it is noted that the term “Bank” as used in this Section 2.06 and in other Sections of this Agreement includes the Issuing
Banks in its capacity as such. 
  
 2.07 Payments and
Computations. 
  
 (a) The Account Parties shall make each
payment hereunder irrespective of any right of counterclaim or set-off (except as otherwise provided in Section 2.11), not later than 11:00 A.M. (Charlotte, North Carolina time) on the day when due, in U.S. dollars, to the Administrative
Agent at the Administrative Agent’s Account in same day funds, with payments being received by the Administrative Agent after such time being deemed to have been received on the next succeeding Business Day. The Administrative Agent will
promptly thereafter cause like funds to be distributed (i) if such payment by such Account Party is in respect of principal, interest, commitment fees or any other amount then payable hereunder to more than one Bank, to such Banks for the account of
their respective Applicable Lending Offices ratably in accordance with the amounts of such respective amount then payable to such Banks and (ii) if such payment by such Account Party is in respect of any amount then payable hereunder to one Bank, to
such Bank for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained therein in the
Register pursuant to Section 9.07(d), from 

  

 26 

 
and after the effective date of such Assignment and Acceptance, the Administrative Agent shall make all payments hereunder in respect of the interest
assigned thereby to the Bank assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 
  
 (b) Each Account Party hereby authorizes each Bank, if an Event of Default
under Section 6.01(a) has occurred and is continuing, to charge from time to time against any or all of such Account Party’s accounts with such Bank any amount that resulted in such Event of Default. 
  
 (c) All computations of interest on Letter of Credit Advances (and any other
amount payable by reference to the Base Rate) when the Base Rate is determined by reference to Wachovia’s prime rate shall be made by the Administrative Agent on the basis of a year of 365 days or, if applicable, 366 days; all other
computations of interest, fees and Letter of Credit commissions shall be made by the Administrative Agent on the basis of a year of 360 days. All such computations shall be made for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest, fees or commissions are payable. Each determination by the Administrative Agent of an interest rate, fee or commission hereunder shall be conclusive and binding for all purposes, absent
manifest error. 
  
 (d) Whenever any payment hereunder shall be
stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fee, as the case may be.

  
 2.08 Taxes. 
  
 (a) Any and all payments by any Loan Party hereunder shall be made, in
accordance with Section 2.07, free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Bank
and each Agent, taxes that are imposed on its overall net income by the United States and taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which
such Bank or such Agent, as the case may be, is organized or any political subdivision thereof and, in the case of each Bank, taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign
jurisdiction of such Bank’s Applicable Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder being herein referred
to as “Taxes”). If any Loan Party shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or to any Bank or any Agent, (i) the sum payable by such Loan Party shall be increased as may be
necessary so that after such Loan Party and the Administrative Agent have made all required deductions (including deductions applicable to additional sums payable under this Section 2.08) such Bank or such Agent, as the case may be, receives
an amount equal to the sum it would have received had no such deductions been made, (ii) such Loan Party shall make all such deductions and (iii) such Loan Party shall pay the full 

  

 27 

 
amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 
  
 (b) In addition, each Loan Party shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise from any payment made hereunder or from the execution, delivery or registration of, performance under, or otherwise with respect to, this Agreement or any other Loan
Document (herein referred to as “Other Taxes”). 
  
 (c) Each Loan Party shall indemnify each Bank and each Agent for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this
Section 2.08, imposed on or paid by such Bank or such Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification payment shall be
made within 30 days from the date such Bank or such Agent (as the case may be) makes written demand therefor. 
  
 (d) Within 30 days after the date of any payment of Taxes, each Loan Party shall furnish to the Administrative Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such payment. In the case of any payment hereunder by or on behalf of a Loan Party through an account or branch outside the United States or by or on behalf of a
Loan Party by a payor that is not a United States person, if such Loan Party determines that no Taxes are payable in respect thereof, such Loan Party shall furnish, or shall cause such payor to furnish, to the Administrative Agent, at such address,
an opinion of counsel acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For purposes of this Section 2.08(d) or Section 2.08(e), the terms “United States” and “United States
person” shall have the meanings specified in Section 7701(a)(9) and 7701(a)(10) of the Internal Revenue Code, respectively. 
  
 (e) Each Bank organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Bank or each Issuing Bank, as the case may be, and on the date of the Assignment and Acceptance pursuant to which it becomes a Bank in the case of each other Bank, and from time to time thereafter as requested
in writing by the Parent (but only so long thereafter as such Bank remains lawfully able to do so), provide each of the Administrative Agent and the Parent with two original Internal Revenue Service forms W-8BEN or W-8ECI or (in the case of a Bank
that has certified in writing to the Administrative Agent that it is not a “bank” as defined in Section 881(c)(3)(A) of the Internal Revenue Code) form W-8 (and, if such Bank delivers a form W-8, a certificate representing that such Bank
is not a “bank” for purposes of Section 881(c)(3)(A) of the Internal Revenue Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the Parent and is not a controlled foreign
corporation related to the Parent (within the meaning of Section 864(d)(4) of the Internal Revenue Code)), as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Bank is exempt from or
entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or, in the case of a Bank providing a form W-8, certifying that such Bank is a foreign corporation, partnership, estate or trust. If the forms
provided by a Bank at the time such Bank first becomes a party to this Agreement indicate a United States interest withholding tax rate in excess of zero, withholding 

  

 28 

 
tax at such rate shall be considered excluded from Taxes unless and until such Bank provides the appropriate forms certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance pursuant to which a Bank
becomes a party to this Agreement, the Bank assignor was entitled to payments under Section 2.08(a) in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes shall include (in
addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable with respect to the Bank assignee on such date. If any form or document referred to in
this Section 2.08(e) requires the disclosure of information, other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service form W-8BEN, W-8ECI or W-8 (and the related
certificate described above), that the Bank reasonably considers to be confidential, the Bank shall give notice thereof to the Parent and shall not be obligated to include in such form or document such confidential information. 
  
 (f) For any period with respect to which a Bank which may lawfully do so has
failed to provide the Parent with the appropriate form described in Section 2.08(e) above (other than if such failure is due to a change in law occurring after the date on which a form originally was required to be provided or if such
form otherwise is not required under Section 2.08(e) above), such Bank shall not be entitled to indemnification under Sections 2.08(a) or 2.08(c) with respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Bank become subject to Taxes because of its failure to deliver a form required hereunder, the Parent shall take such steps as such Bank shall reasonably request to assist such Bank to recover such
Taxes. 
  
 (g) Each Bank represents and warrants to the Account
Parties that, as of the date such Bank becomes a party to this Agreement, such Bank is entitled to receive payments hereunder from the Account Parties without deduction or withholding for or on account of any Taxes. 
  
 2.09 Sharing of Payments, Etc. If any Bank shall obtain at any
time any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise, other than as a result of an assignment pursuant to Section 9.07) (a) on account of obligations due and payable to such Bank
hereunder at such time in excess of its ratable share (according to the proportion of (i) the amount of such obligations due and payable to such Bank at such time to (ii) the aggregate amount of the obligations due and payable to all Banks hereunder
at such time) of payments on account of the obligations due and payable to all Banks hereunder at such time obtained by all the Banks at such time or (b) on account of obligations owing (but not due and payable) to such Bank hereunder at such time
in excess of its ratable share (according to the proportion of (i) the amount of such obligations owing to such Bank at such time to (ii) the aggregate amount of the obligations owing (but not due and payable) to all Banks hereunder at such time) of
payments on account of the obligations owing (but not due and payable) to all Banks hereunder at such time obtained by all of the Banks at such time, such Bank shall forthwith purchase from the other Banks such interests or participating interests
in the obligations due and payable or owing to them, as the case may be, as shall be necessary to cause such purchasing Bank to share the excess payment ratably with each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing 

  

 29 

 
Bank, such purchase from each other Bank shall be rescinded and such other Bank shall repay to the purchasing Bank the purchase price to the extent of such
Bank’s ratable share (according to the proportion of (i) the purchase price paid to such Bank to (ii) the aggregate purchase price paid to all Banks) of such recovery together with an amount equal to such Bank’s ratable share (according to
the proportion of (i) the amount of such other Bank’s required repayment to (ii) the total amount so recovered from the purchasing Bank) of any interest or other amount paid or payable by the purchasing Bank in respect of the total amount so
recovered. Each Account Party agrees that any Bank so purchasing an interest or participating interest from another Bank pursuant to this Section 2.09 may, to the fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off) with respect to such interest or participating interest, as the case may be, as fully as if such Bank were the direct creditor of such Account Party in the amount of such interest or participating interest, as the case may be.

  
 2.10 Use of Letters of Credit. The Letters of
Credit shall be used for the general corporate purposes of the Account Parties and their respective Subsidiaries. 
  
 2.11 Defaulting Banks. 
  
 (a) In the event that, at any one time, (i) any Bank shall be a Defaulting Bank, (ii) such Defaulting Bank shall owe a Defaulted Amount to any Agent or
any of the other Banks and (iii) any Account Party shall make any payment hereunder or under any other Loan Document to the Administrative Agent for the account of such Defaulting Bank, then the Administrative Agent may, on its behalf or on behalf
of such other Banks and to the fullest extent permitted by applicable law, apply at such time the amount so paid by such Account Party to or for the account of such Defaulting Bank to the payment of each such Defaulted Amount to the extent required
to pay such Defaulted Amount. In the event that the Administrative Agent shall so apply any such amount to the payment of any such Defaulted Amount on any date, the amount so applied by the Administrative Agent shall constitute for all purposes of
this Agreement and the other Loan Documents payment, to such extent, of such Defaulted Amount on such date. Any such amount so applied by the Administrative Agent shall be retained by the Administrative Agent or distributed by the Administrative
Agent to such other Banks, ratably in accordance with the respective portions of such Defaulted Amounts payable at such time to the Administrative Agent and such other Banks and, if the amount of such payment made by such Account Party shall at such
time be insufficient to pay all Defaulted Amounts owing at such time to the Administrative Agent, such other Agents and such other Banks, in the following order of priority: 
  
 (i) first, to the Agents for any Defaulted Amounts then owing to the Agents; 
  
 (ii) second, to the Issuing Banks for any amount then
due and payable to them, in their capacity as such, by such Defaulting Bank, ratably in accordance with such amounts then due and payable to the Issuing Banks; and 
  
 (iii) third, to any other Banks for any Defaulted Amounts then owing to such other Banks, ratably in
accordance with such respective Defaulted Amounts then owing to such other Banks. 
  

 30 

 Any portion of such amount paid by such Account Party for the account of such Defaulting Bank remaining, after giving
effect to the amount applied by the Administrative Agent pursuant to this Section 2.11(a), shall be applied by the Administrative Agent as specified in Section 2.11(b). 
  
 (b) In the event that, at any one time, (i) any Bank shall be a Defaulting Bank, (ii) such Defaulting Bank shall not owe a
Defaulted Amount and (iii) any Account Party, any Agent or other Bank shall be required to pay or distribute any amount hereunder or under any other Loan Document to or for the account of such Defaulting Bank, then such Account Party or such Agent
or such other Bank shall pay such amount to the Administrative Agent to be held by the Administrative Agent, to the fullest extent permitted by applicable law, in escrow and the Administrative Agent shall, to the fullest extent permitted by
applicable law, hold in escrow such amount otherwise held by it. Any funds held by the Administrative Agent in escrow under this Section 2.11(b) shall be deposited by the Administrative Agent in an account with Wachovia in the name and under
the control of the Administrative Agent, but subject to the provisions of this Section 2.11(b). The terms applicable to such account, including the rate of interest payable with respect to the credit balance of such account from time to time,
shall be Wachovia’s standard terms applicable to escrow accounts maintained with it. Any interest credited to such account from time to time shall be held by the Administrative Agent in escrow under, and applied by the Administrative Agent from
time to time in accordance with the provisions of, this Section 2.11(b). The Administrative Agent shall, to the fullest extent permitted by applicable law, apply all funds so held in escrow from time to time to the extent necessary to make
any Advances required to be made by such Defaulting Bank and to pay any amount payable by such Defaulting Bank hereunder and under the other Loan Documents to the Administrative Agent or any other Bank, as and when such Advances or amounts are
required to be made or paid and, if the amount so held in escrow shall at any time be insufficient to make and pay all such Advances and amounts required to be made or paid at such time, in the following order of priority: 
  
 (i) first, to the Agents for any amounts then due and
payable by such Defaulting Bank to the Agents hereunder; 
  
 (ii) second, to the Issuing Banks for any amount then due and payable to them, in their capacity as such, by such Defaulting Bank, ratably in accordance with such amounts then due and payable to such Issuing
Banks; and 
  
 (iii) third, to any other
Banks for any amount then due and payable by such Defaulting Bank to such other Banks hereunder, ratably in accordance with such respective amounts then due and payable to such other Banks. 
  
 In the event that any Bank that is a Defaulting Bank shall, at any time, cease to be a
Defaulting Bank, any funds held by the Administrative Agent in escrow at such time with respect to such Bank shall be distributed by the Administrative Agent to such Bank and applied by such Bank to the obligations owing to such Bank at such time
under this Agreement and the other Loan Documents ratably in accordance with the respective amounts of such obligations outstanding at such time. 
  

 31 

 (c) The rights and remedies against a Defaulting Bank under this Section 2.11 are in addition to
other rights and remedies that any Agent or any Bank may have against such Defaulting Bank with respect to any Defaulted Amount. 
  
 2.12 Replacement of Affected Bank. At any time any Bank is an Affected Bank, the Account Parties may replace such Affected Bank as a party to this
Agreement with one or more other Banks and/or Eligible Assignees, and upon notice from the Account Parties such Affected Bank shall assign pursuant to an Assignment and Acceptance, and without recourse or warranty, its LC Commitment Amount, its
Letter of Credit Advances, its obligations to fund Letter of Credit payments, its participation in, and its rights and obligations with respect to, Letters of Credit, and all of its other rights and obligations hereunder to such other Banks and/or
Eligible Assignees for a purchase price equal to the sum of the principal amount of the Letter of Credit Advances so assigned, all accrued and unpaid interest thereon, such Affected Bank’s ratable share of all accrued and unpaid fees payable
pursuant to Section 2.05 and all other obligations owed to such Affected Bank hereunder. 
  
 2.13 Certain Provisions Relating to the Issuing Banks and Letters of Credit. 
  
 (a) Letter of Credit Agreements. The representations, warranties and covenants by the Account Parties under, and the
rights and remedies of each Issuing Bank under, any Letter of Credit Agreement relating to any Letter of Credit are in addition to, and not in limitation or derogation of, representations, warranties and covenants by the Account Parties under, and
rights and remedies of each Issuing Bank and the Banks under, this Agreement and applicable law. Each Account Party acknowledges and agrees that all rights of each Issuing Bank under any Letter of Credit Agreement shall inure to the benefit of each
Bank to the extent of its Letter of Credit Participating Interest Commitment and Letter of Credit Advances as fully as if such Bank was a party to such Letter of Credit Agreement. In the event of any inconsistency between the terms of this Agreement
and any Letter of Credit Agreement, this Agreement shall prevail. 
  
 (b) Certain Provisions. The Issuing Banks shall have no duties or responsibilities to any Agent or any Bank except those expressly set forth in this Agreement, and no implied duties or responsibilities on the part of the Issuing
Banks shall be read into this Agreement or shall otherwise exist. The duties and responsibilities of the Issuing Banks to the Banks and the Agents under this Agreement and the other Loan Documents shall be mechanical and administrative in nature,
and the Issuing Banks shall not have a fiduciary relationship in respect of any Agent, any Bank or any other Person. No Issuing Bank shall be liable for any action taken or omitted to be taken by it under or in connection with this Agreement or any
Loan Document or Letter of Credit, except to the extent resulting from its gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction. The Issuing Banks shall not be under any obligation to ascertain, inquire
or give any notice to any Agent or any Bank relating to (i) the performance or observance of any of the terms or conditions of this Agreement or any other Loan Document on the part of any Account Party, (ii) the business, operations, condition
(financial or otherwise) or prospects of the Account Parties or any other Person, or (iii) the existence of any Default. The Issuing Banks shall not be under any obligation, either initially or on a continuing basis, to provide any Agent or any Bank
with any notices, reports or information of any nature, whether in its possession presently or hereafter, except for such notices, reports and other information expressly required by this Agreement to be so furnished. The Issuing 

  

 32 

 
Banks shall not be responsible for the execution, delivery, effectiveness, enforceability, genuineness, validity or adequacy of this Agreement or any Loan
Document. 
  
 (c) Administration. Each Issuing Bank may
rely upon any notice or other communication of any nature (written, electronic or oral, including but not limited to telephone conversations and transmissions through each Issuing Bank’s remote access system, whether or not such notice or other
communication is made in a manner permitted or required by this Agreement or any other Loan Document) purportedly made by or on behalf of the proper party or parties, and each Issuing Bank shall not have any duty to verify the identity or authority
of any Person giving such notice or other communication. Each Issuing Bank may consult with legal counsel (including, without limitation, its in-house counsel or in-house or other counsel for the Account Parties), independent public accountants and
any other experts selected by it from time to time, and each Issuing Bank shall not be liable for any action taken or omitted to be taken in good faith in accordance with the advice of such counsel, accountants or experts. Whenever an Issuing Bank
shall deem it necessary or desirable that a matter be proved or established with respect to any Account Party, any Agent or any Bank, such matter may be established by a certificate of such Account Party, such Agent or such Bank, as the case may be,
and such Issuing Bank may conclusively rely upon such certificate. An Issuing Bank shall not be deemed to have any knowledge or notice of the occurrence of any Default unless such Issuing Bank has received notice from a Bank, an Agent or an Account
Party referring to this Agreement, describing such Default, and stating that such notice is a “notice of default”. 
  
 (d) Indemnification of Issuing Banks by Banks. Each Bank hereby agrees to reimburse and indemnify each Issuing Bank and each of its directors,
officers, employees and agents (to the extent not reimbursed by the Account Parties and without limitation of the obligations of the Account Parties to do so), in accordance with its Pro Rata Share, from and against any and all amounts, losses,
liabilities, claims, damages, expenses, obligations, penalties, actions, judgments, suits, costs or disbursements of any kind or nature (including, without limitation, the reasonable fees and disbursements of counsel (other than in-house counsel)
for each Issuing Bank or such other Person in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not each Issuing Bank or such other Person shall be designated a party thereto) that may at
any time be imposed on, incurred by or asserted against each Issuing Bank, in its capacity as such, or such other Person, as a result of, or arising out of, or in any way related to or by reason of, this Agreement, any other Loan Document or any
Letter of Credit, any transaction from time to time contemplated hereby or thereby, or any transaction financed in whole or in part or directly or indirectly with the proceeds of any Letter of Credit, provided, that no Bank shall be liable
for any portion of such amounts, losses, liabilities, claims, damages, expenses, obligations, penalties, actions, judgments, suits, costs or disbursements to the extent resulting from the gross negligence or willful misconduct of an Issuing Bank or
such other Person, as finally determined by a court of competent jurisdiction. 
  
 (e) Issuing Banks in their Individual Capacity. With respect to its commitments and the obligations owing to it, each Issuing Bank shall have the same rights and powers under this Agreement and each other Loan
Document as any other Bank and may exercise the same as though it were not an Issuing Bank, and the term “Banks” and like terms shall include each Issuing Bank in its individual capacity as such. Each Issuing Bank and its affiliates may,
without liability to account to any Person, make loans to, accept deposits from, acquire debt or equity 

  

 33 

 
interests in, act as trustee under indentures of, act as agent under other credit facilities for, and engage in any other business with, any Account Party
and any stockholder, subsidiary or affiliate of any Account Party, as though such Issuing Bank were not an Issuing Bank hereunder. 
  
 2.14 Downgrade Event with Respect to a Bank. 
  
 (a) If a Downgrade Event shall occur with respect to (i) any Downgraded Bank or (ii) any other Bank and, as a result thereof, such other Bank becomes a
Downgraded Bank, then the Administrative Agent may, by notice to such Downgraded Bank and the Parent within 45 days after such Downgrade Event (any such notice, a “Downgrade Notice”), request that the Account Parties use reasonable
efforts to replace such Bank as a party to this Agreement pursuant to Section 2.12. If such Bank is not so replaced within 45 days after receipt by the Account Parties of such Downgrade Notice, then (x) if no Default exists and such
Downgraded Bank has not exercised its right to remain a Bank hereunder pursuant to clause (y) below, the following shall occur concurrently: 
  
 (i) the Committed Facility shall be reduced by the amount of the LC Commitment Amount of such Downgraded Bank, 
  
 (ii) the Account Parties shall prepay all amounts owed to
such Downgraded Bank hereunder or in connection herewith, 
  
 (iii) if, upon the reduction of the Committed Facility under clause (i) above and the payment under clause (ii) above, the sum of the principal amount of all Advances plus the Available Amount of all Letters of Credit
(valuing the Available Amount of, and Letter of Credit Advances of the Issuing Banks in respect of, any Non-Dollar Letter of Credit at the Dollar Equivalent thereof as of the time of such calculation) would exceed the amount of the Committed
Facility, then the Account Parties will immediately eliminate such excess by paying Advances and/or causing the Available Amount of one or more Letters of Credit to be reduced, and 
  
 (iv) upon completion of the events described in clauses (i), (ii) and (iii) above, such Downgraded Bank
shall cease to be a party to this Agreement; 
  
 or (y) if a Default exists or,
not later than 30 days after receipt of such Downgrade Notice, such Downgraded Bank notifies the Account Parties, the Issuing Banks and the Administrative Agent that such Downgraded Bank elects to provide (in a manner reasonably satisfactory to
Administrative Agent) cash collateral to the Administrative Agent for (or if such Downgraded Bank is unable, without regulatory approval, to provide cash collateral, a letter of credit reasonably satisfactory to Administrative Agent covering) its
contingent obligations to reimburse each Issuing Bank for any payment under any Letter of Credit as provided in Section 2.02(f) (its “LC Participation Obligations”), such Downgraded Bank shall be obligated to (and each
Bank agrees that in such circumstances it will) deliver to the Administrative Agent (I) immediately, cash collateral (or, as aforesaid, a letter of credit) in an amount equal to its LC Participation Obligations and (II) from time to time thereafter
(so long as it is a Downgraded Bank), cash collateral (or, as aforesaid, a letter of credit) sufficient to cover any increase in its LC 

  

 34 

 
Participation Obligations as a result of any proposed issuance of or increase in a Letter of Credit. Any funds provided by a Downgraded Bank for such purpose
shall be maintained in segregated deposit accounts in the name of the Issuing Banks at the Administrative Agent’s principal offices in the United States (each a “Downgrade Account”). The funds so deposited in any Downgrade
Account (or any drawing under such a letter of credit) shall be used only in accordance with the following provisions of this Section 2.14. 
  
 (b) If any Downgraded Bank shall be required to fund its participation in a payment under a Letter of Credit pursuant to Section 2.02(f),
then the Administrative Agent shall apply the funds deposited in the applicable Downgrade Account by such Downgraded Bank (or any drawing under such a letter of credit) to fund such participation. The deposit of funds in a Downgrade Account by any
Downgraded Bank (or any drawing under such a letter of credit) shall not constitute a Letter of Credit Advance (and the Downgraded Bank shall not be entitled to interest on such funds except as provided in Section 2.14(c) below) unless and
until (and then only to the extent that) such funds (or any drawing under such a letter of credit) are used by the Administrative Agent to fund the participation of such Downgraded Bank pursuant to the first sentence of this Section 2.14(b).

  
 (c) Funds in a Downgrade Account shall be invested in such
investments as may be agreed between the Administrative Agent and the applicable Downgraded Bank, and the income from such investments shall be distributed to such Downgraded Bank from time to time (but not less often than monthly) as agreed between
the Administrative Agent and such Downgraded Bank. The Administrative Agent will (i) from time to time, upon request by a Downgraded Bank, release to such Downgraded Bank any amount on deposit in the applicable Downgrade Account in excess of the LC
Participation Obligations of such Downgraded Bank (or, if applicable, not draw under any such letter of credit in excess of the L/C Participation Obligations of such Downgraded Bank) and (ii) upon the earliest to occur of (A) the effective date of
any replacement of such Downgraded Bank as a party hereto pursuant to an Assignment and Acceptance, (B) the termination of such Downgraded Bank’s LC Commitment Amount pursuant to Section 2.14(a) or (C) the first Business Day after
receipt by the Administrative Agent of evidence (reasonably satisfactory to the Administrative Agent) that such Bank is no longer a Downgraded Bank, release to such Bank all amounts on deposit in the applicable Downgrade Account (or, if applicable,
return such letter of credit to such Bank for cancellation). 
  
 (d) At any time any Downgraded Bank is required to maintain cash collateral with the Administrative Agent pursuant to this Section 2.14, the Issuing Banks shall have no obligation to issue or increase any Letter of Credit unless such
Downgraded Bank has provided sufficient funds as cash collateral to the Administrative Agent to cover all LC Participation Obligations of such Downgraded Bank (including in respect of the Letter of Credit to be issued or increased). 
  
 2.15 Non-Dollar Letters of Credit. 
  
 (a) The Account Parties, the Administrative Agent, the Issuing Banks and the
Banks (i) agree that an Issuing Bank may (in its sole discretion), with the prior approval of the Administrative Agent, issue Letters of Credit (“Non-Dollar Letters of Credit”) in currencies other than U.S. dollars and (ii) further
agree as set forth in the following subsections of this Section 2.15 with respect to such Non-Dollar Letters of Credit. 
  

 35 

 (b) The Account Parties agree that their reimbursement obligations under Section 2.03(a) and any
resulting Letter of Credit Advance, in each case in respect of a drawing under any Non-Dollar Letter of Credit, (i) shall be payable in Dollars at the Dollar Equivalent of such obligation in the currency in which such Non-Dollar Letter of Credit was
issued (determined on the date of payment by the Account Parties or, in the event of payment by the Banks pursuant to Section 2.02(f), on the date of such payment by the Banks), and (ii) shall bear interest at a rate per annum equal to the
Base Rate plus 2%, for each day from and including the date on which the Applicable Account Party is to reimburse an Issuing Bank pursuant to Section 2.03(a) to but excluding the date such obligation is paid in full. 
  
 (c) Each Bank agrees that its obligation to pay an Issuing Bank such
Bank’s Pro Rata Share of the unreimbursed portion of any payment by such Issuing Bank under Section 2.02(f) in respect of a drawing under any Non-Dollar Letter of Credit shall be payable in Dollars at the Dollar Equivalent of such
obligation in the currency in which such Non-Dollar Letter of Credit was issued (calculated on the date of payment), and any such amount which is not paid when due shall bear interest at a rate per annum equal to the Overnight Rate plus,
beginning on the third Business Day after such amount was due, 2%. 
  
 (d) For purposes of determining whether there is availability for the Account Parties to request any Advance or to request the issuance or extension of, or any increase in, any Letter of Credit, the Dollar Equivalent amount of the Available
Amount of each Non-Dollar Letter of Credit shall be calculated as of the date such Advance is to be made or such Letter of Credit is to be issued, extended or increased. 
  
 (e) For purposes of determining the letter of credit fee under Section 2.05(c), the Dollar Equivalent amount of the
Available Amount of any Non-Dollar Letter of Credit shall be determined on each of (i) the date of an issuance, extension or change in the Available Amount of such Non-Dollar Letter of Credit, (ii) the date of any payment by an Issuing Bank in
respect of a drawing under such Non-Dollar Letter of Credit, (iii) the last Business Day of each March, June, September and December and (iv) each day on which the LC Commitment Amounts are to be reduced pursuant to Section 2.04 (it being
understood that no requested reduction shall be permitted to the extent that, after making a calculation pursuant to this Section 2.15(e), such reduction would be greater than the unused portion of the LC Commitment Amounts). 
  
 (f) If, on the last Business Day of each March, June, September and December,
the sum of the principal amount of all Advances plus the Available Amount of all Letters of Credit (valuing the Available Amount of, and Letter of Credit Advances in respect of, any Non-Dollar Letter of Credit at the Dollar Equivalent thereof as of
such day) would exceed the amount of the Committed Facility, then the Account Parties will immediately eliminate such excess by paying Advances and/or causing the Available Amount of one or more Letters of Credit to be reduced. 
  
 (g) If, for the purposes of obtaining judgment in any court, it is necessary
to convert a sum due in respect of any Non-Dollar Letter of Credit in one currency into another currency, the rate of exchange used shall be that at which, in accordance with its normal banking procedures, Wachovia in its capacity as an Issuing Bank
could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of any Account Party in respect of any such sum due from it to any Issuing Bank or any Bank 

  

 36 

 
hereunder shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in
accordance with the applicable provisions of this Agreement and the applicable Non-Dollar Letter of Credit (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by such Issuing Bank
or such Bank of any sum adjudged to be so due in the Judgment Currency, such Issuing Bank or such Bank may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement
Currency so purchased is less than the sum originally due to such Issuing Bank or such Bank in the Agreement Currency, the Applicable Account Party agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Issuing
Bank or such Bank, as applicable, against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to such Issuing Bank or such Bank in such currency, each Issuing Bank and each Bank agrees to return the
amount of any excess to the Applicable Account Party (or to any other Person who may be entitled thereto under applicable law). 
  
 (h) For purposes of this Section 2.15, “Dollar Equivalent” means, in relation to an amount denominated in a currency other than
U.S. dollars, the amount of U.S. dollars which could be purchased with such amount by Wachovia in its capacity as an Issuing Bank in accordance with its customary procedures (and giving effect to any transaction costs) at the quoted foreign exchange
spot rate of Wachovia in its capacity as an Issuing Bank at the time of determination; and “Overnight Rate” means, for any day, the rate of interest per annum at which overnight deposits in the applicable currency, in an amount
approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by Wachovia in its capacity as an Issuing Bank to major banks in the London or other applicable offshore interbank market. The
Overnight Rate for any day which is not a Business Day (or on which dealings are not carried on in the applicable offshore interbank market) shall be the Overnight Rate for the immediately preceding Business Day. 
  
 2.16 Increase of LC Commitment Amounts. 
  
 (a) From time to time subsequent to the Effective Date, the Account Parties
jointly may, upon at least five days’ notice to the Administrative Agent (which shall promptly provide a copy of such notice to the Banks), propose to increase the aggregate amount of the LC Commitment Amounts by an amount which (i) is not less
than $25,000,000, or an integral multiple of $5,000,000 in excess thereof, with respect to any such request nor (ii) when aggregated with all prior increases in (A) the LC Commitment Amounts pursuant to this Section 2.16 and (B) the
commitments under the Secured Letter of Credit Facility pursuant to Section 2.16 of such agreement, is not in excess of $500,000,000. The Borrowers may increase the aggregate LC Commitment Amounts by (i) agreeing with any Bank to increase its LC
Commitment Amount hereunder, (ii) having another bank or other banks reasonably satisfactory to the Administrative Agent (each, an “Additional Bank”) become party to this Agreement or (iii) a combination of the procedures described
in clauses (i) and (ii) of this sentence. 
  
 (b) An increase in
the aggregate amount of the LC Commitment Amounts pursuant to this Section 2.16 shall become effective upon the receipt by the Administrative Agent of an agreement in form and substance satisfactory to the Administrative Agent signed by the
Account Parties, by each Additional Bank and by each other Bank whose LC Commitment Amount is to 

  

 37 

 
be increased, setting forth the new LC Commitment Amounts of such Banks and setting forth the agreement of each Additional Bank to become a party to this
Agreement and to be bound by all the terms and provisions hereof, together with such evidence of appropriate corporate authorization on the part of the Account Parties with respect thereto and such opinions of counsel for the Account Parties with
respect thereto as the Administrative Agent may reasonably request. At the time of any increase in the aggregate LC Commitment Amount pursuant to this Section 2.16, the Account Parties shall represent (i) that, immediately before and after
such increase is made, no Default under this Agreement or the Secured Letter of Credit Facility has occurred and is continuing and (ii) that the representations and warranties of the Account Parties contained in the Loan Documents and the Secured
Letter of Credit Facility are true in all material respects on and as of the date such increase is made, except for such representations or warranties which by their terms are made as of a specified date, which shall be true and correct as of such
specified date. 
  
 ARTICLE III 
  
 CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT 
  
 3.01 Conditions Precedent to Effective Date. The occurrence of the
Effective Date, and the obligation of the Issuing Banks to issue any Letter of Credit on the Effective Date, is subject to the satisfaction of the following conditions precedent: 
  
 (a) The Administrative Agent shall have received the following, each dated the Effective Date (unless otherwise specified),
in form and substance reasonably satisfactory to the Administrative Agent (unless otherwise specified) and in sufficient copies for each Bank: 
  
 (i) Certified copies of the resolutions of the Board of Directors of each Loan Party approving the transactions contemplated by the Loan
Documents and each Loan Document to which it is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and other third party approvals and consents, if any, with transactions contemplated by the Loan
Documents and each Loan Document to which it is or is to be a party. 
  
 (ii) A copy of a certificate of the Secretary of State or other appropriate official of the jurisdiction of incorporation of each Loan Party, dated reasonably near the Effective Date, certifying as to the good
standing (or existence) of such Loan Party. 
  
 (iii) A certificate of each Loan Party, signed on behalf of such Loan Party by its President or a Vice President (or equivalent officer if such Loan Party has no Vice President) and its Secretary or any Assistant Secretary (the statements
made in which certificate shall be true on and as of the Effective Date), certifying as to (1) a true and correct copy of the constitutional documents of such Loan Party as in effect on the date on which the resolutions referred to in Section
3.01(a)(i) were adopted and on the Effective Date, (2) the due incorporation and good standing or valid existence of such Loan Party as a corporation organized under the laws of the jurisdiction of its incorporation, and 

  

 38 

 
the absence of any proceeding for the dissolution or liquidation of such Loan Party, (3) the truth of the representations and warranties contained in the
Loan Documents as though made on and as of the Effective Date and (4) the absence of any event occurring and continuing, or resulting from the Effective Date, that constitutes a Default. 
  
 (iv) A certificate of the Secretary or an Assistant Secretary of each Loan Party certifying the names and
true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder. 
  
 (v) Favorable opinions of (1) Maples and Calder, Cayman
Islands counsel for the Parent, in substantially the form of Exhibit B-1 hereto and as to such other matters as any Bank through the Administrative Agent may reasonably request, (2) Mayer, Brown, Rowe & Maw LLP, New York counsel for the
Loan Parties, in substantially the form of Exhibit B-2 hereto and as to such other matters as any Bank through the Administrative Agent may reasonably request, and (3) Conyers Dill & Pearman, Bermuda counsel for ACE Bermuda, Tempest Life
and Tempest, in substantially the form of Exhibit B-3 hereto and as to such other matters as any Bank through the Administrative Agent may reasonably request. 
  
 (b) There shall exist no action, suit, investigation, litigation or proceeding affecting any Loan Party or any of its
Subsidiaries pending or threatened before any court, governmental agency or arbitrator that (x) would be reasonably expected to have a Material Adverse Effect or (y) would reasonably be expected to materially adversely affect the legality, validity
or enforceability of any Loan Document or the other transactions contemplated by the Loan Documents. 
  
 (c) No development or change shall have occurred after December 31, 2004, and no information shall have become known after such date, that has had or
would reasonably be expected to have a Material Adverse Effect. 
  
 (d) The Account Parties shall have paid all accrued fees of the Administrative Agent and the Banks and all accrued expenses of the Administrative Agent (including the accrued fees and expenses of counsel to the Administrative Agent and
local counsel on behalf of all of the Banks), in each case to the extent then due and payable. 
  
 (e) The Administrative Agent shall have received evidence satisfactory to it that all obligations of any Account Party outstanding under the Existing Reimbursement Agreement and Existing Secured Reimbursement
Agreement (other than fees and expenses of Wachovia’s counsel) have been repaid and satisfied in full. 
  
 3.02 Conditions Precedent to Each Issuance, Extension or Increase of a Letter of Credit. The obligation of the Issuing Banks to issue, extend or
increase a Letter of Credit (including any issuance on the Effective Date) shall be subject to the further conditions precedent that on the date of such issuance, extension or increase (a) the following statements shall be true 

  

 39 

 
(and each request for issuance, extension, or increase, and the acceptance by the Account Party that requested such issuance, extension or increase shall
constitute a representation and warranty by such Account Party that both on the date of such notice and on the date of such issuance, extension or increase such statements are true): 
  
 (i) the representations and warranties contained in each Loan Document are correct in all material respects
on and as of such date, before and after giving effect to such issuance, extension or increase, as though made on and as of such date, other than any such representations or warranties that, by their terms, refer to a specific date other the date of
such issuance, extension or increase, in which case as of such specific date (provided, however, that the representation and warranty contained in the last sentence of Section 4.01(g) shall be excluded from this clause (i) at
all times after (but shall be included on and as of) the Effective Date); and 
  
 (ii) no Default has occurred and is continuing, or would result from such issuance, extension or increase; 
  
 and (b) the Administrative Agent shall have received such other approvals, opinions or documents as any Bank or any Issuing Bank through the Administrative Agent may
reasonably request. 
  
 3.03 Determinations Under Section
3.01. For purposes of determining compliance with the conditions specified in Section 3.01, each Bank shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Banks unless an officer of the Administrative Agent responsible for the transactions contemplated by the Loan Documents shall have received notice from such Bank prior
to the Effective Date specifying its objection thereto, provided that such Bank has been given at least one Business Day’s notice that the final form of such document or matter is available for its review. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 4.01 Representations and Warranties of the Account Parties. Each
Account Party represents and warrants as follows: 
  
 (a) Each
Loan Party and each of its Material Subsidiaries (i) is duly organized or formed, validly existing and, to the extent such concept applies, in good standing under the laws of the jurisdiction of its incorporation or formation, (ii) is duly qualified
and in good standing as a foreign corporation or other entity in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or
be licensed would not be reasonably likely to have a Material Adverse Effect and (iii) has all requisite power and authority (including, without limitation, all governmental licenses, permits and other approvals) to own or lease and operate its
properties and to carry on its business as now conducted and as proposed to be conducted, except where the failure to have any license, permit or other approval would not be reasonably likely to have a 

  

 40 

 
Material Adverse Effect. All of the outstanding Equity Interests in each Account Party (other than the Parent) have been validly issued, are fully paid and
non-assessable and (except for any Preferred Securities issued after the date of this Agreement) are owned, directly or indirectly, by the Parent free and clear of all Liens. 
  
 (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of each Loan Party as of
the Effective Date. 
  
 (c) The execution, delivery and
performance by each Loan Party of each Loan Document to which it is or is to be a party and the consummation of the transactions contemplated by the Loan Documents, are within such Loan Party’s corporate powers, have been duly authorized by all
necessary corporate action, and do not (i) contravene such Loan Party’s constitutional documents, (ii) violate any law, rule, regulation (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System),
order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on
or affecting any Loan Party, any of its Subsidiaries or any of their properties or (iv) except for the Liens created under the Loan Documents, result in or require the creation or imposition of any Lien upon or with respect to any of the properties
of any Loan Party or any of its Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any such contract, loan
agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which would be reasonably likely to have a Material Adverse Effect. 
  
 (d) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or
regulatory body or any other third party is required for (i) the due execution, delivery, recordation, filing or performance by any Loan Party of any Loan Document to which it is or is to be a party or the other transactions contemplated by the Loan
Documents, or (ii) the exercise by the Administrative Agent or any Bank of its rights under the Loan Documents, except for the authorizations, approvals, actions, notices and filings which have been duly obtained, taken, given or made and are in
full force and effect, subject to bankruptcy, insolvency and similar laws of general application relating to creditors’ rights and to general principles of equity. 
  
 (e) This Agreement has been, and each other Loan Document when delivered hereunder will have been, duly executed and
delivered by each Loan Party party thereto. This Agreement is, and each other Loan Document when delivered hereunder will be, the legal, valid and binding obligation of each Loan Party party thereto, enforceable against such Loan Party in accordance
with its terms. 
  
 (f) There is no action, suit, investigation,
litigation or proceeding affecting any Loan Party or any of its Subsidiaries, including any Environmental Action, pending or, to such Loan Party’s knowledge, threatened before any court, governmental agency or arbitrator that (i) would be
reasonably likely to have a Material Adverse Effect or (ii) would reasonably be expected to affect the legality, validity or enforceability of any Loan Document or the transactions contemplated by the Loan Documents. 
  

 41 

 (g) The Consolidated balance sheet of the Parent and its Subsidiaries as at December 31, 2004, and the
related Consolidated statements of income and of cash flows of the Parent and its Subsidiaries for the fiscal year then ended, accompanied by an unqualified opinion of PricewaterhouseCoopers LLP, independent public accountants, and the Consolidated
balance sheet of the Parent and its Subsidiaries as at March 31, 2005, and the related Consolidated statements of income and cash flows of the Parent and its Subsidiaries for the three months then ended, duly certified by the Chief Financial Officer
of the Parent, copies of which have been furnished to each Bank, fairly present, subject, in the case of said balance sheet as at March 31, 2005, and said statements of income and cash flows for the three months then ended, to year-end audit
adjustments, the Consolidated financial condition of the Parent and its Subsidiaries as at such dates and the Consolidated results of operations of the Parent and its Subsidiaries for the periods ended on such dates, all in accordance with GAAP
applied on a consistent basis (subject, in the case of the March 31, 2005 balance sheet and statements of income and cash flows, to the absence of footnotes). Since December 31, 2004, there has been no Material Adverse Change. 
  
 (h) No written information, exhibit or report furnished by or on behalf of
any Loan Party to any Agent or any Bank in connection with the negotiation and syndication of the Loan Documents or pursuant to the terms of the Loan Documents contained any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements made therein not misleading as at the date it was dated (or if not dated, so delivered). 
  
 (i) Margin Stock constitutes less than 25% of the value of those assets of any Account Party which are subject to any limitation on sale, pledge or other
disposition hereunder. 
  
 (j) Neither any Loan Party nor any of
its Subsidiaries is an “investment company”, or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”, as such terms are defined in the Investment Company
Act of 1940, as amended. Neither the making of any Advances, nor the issuance of any Letters of Credit, nor the application of the proceeds or repayment thereof by any Account Party, nor the consummation of the other transactions contemplated by the
Loan Documents, will violate any provision of such Act or any rule, regulation or order of the Securities and Exchange Commission thereunder. 
  
 (k) Each Loan Party is, individually and together with its Subsidiaries, Solvent. 
  
 (l) Except to the extent that any and all events and conditions under clauses (i) through (v) below of this Section
4.01(l) in the aggregate are not reasonably expected to have a Material Adverse Effect: 
  
 (i) Neither any Loan Party nor any ERISA Affiliate has incurred or is reasonably expected to incur any Withdrawal Liability to any
Multiemployer Plan. 
  
 (ii) With respect to each
scheme or arrangement mandated by a government other than the United States (a “Foreign Government Scheme or Arrangement”) and with respect to each employee benefit plan that is not subject to United States law maintained or
contributed to by any Loan Party or with 

  

 42 

 
respect to which any Subsidiary of any Loan Party may have liability under applicable local law (a “Foreign Plan”): 
  
 (A) Any employer and employee contributions required by law
or by the terms of any Foreign Government Scheme or Arrangement or any Foreign Plan have been made, or, if applicable, accrued, in accordance with normal accounting practices. 
  
 (B) The fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any
Foreign Plan funded through insurance or the book reserve established for any Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations, as of the date hereof, with respect to all
current and former participants in such Foreign Plan according to the actuarial assumptions and valuations most recently used to account for such obligations in accordance with applicable generally accepted accounting principles. 
  
 (C) Each Foreign Plan required to be registered has been
registered and has been maintained in good standing with applicable regulatory authorities. 
  
 (iii) During the twelve-consecutive-month period to the date of the execution and delivery of this Agreement and prior to the request for
any Letter of Credit to be issued hereunder, no steps have been taken to terminate any Pension Plan, no contribution failure has occurred with respect to any Pension Plan sufficient to give rise to a lien under section 302(f) of ERISA and no minimum
funding waiver has been applied for or is in effect with respect to any Pension Plan. No condition exists or event or transaction has occurred or is reasonably expected to occur with respect to any Pension Plan which could result in any Loan Party
or any ERISA Affiliate incurring any material liability, fine or penalty. 
  
 (iv) Each Pension Plan is in compliance in all respects with the applicable provisions of ERISA, the Internal Revenue Code and other federal or state laws. 
  
 (v) No assets of any Loan Party are or are deemed under
applicable law to be “plan assets” within the meaning of Department of Labor Regulation §2510.3-101. 
  
 (m) In the ordinary course of its business, each Account Party reviews the effect of Environmental Laws on the operations and properties of such Account
Party and its Subsidiaries, in the course of which it identifies and evaluates associated liabilities and costs (including, without limitation, any capital or operating expenditures required for clean-up or closure of properties presently or
previously owned, any capital or operating expenditures required to achieve or maintain compliance with environmental protection standards imposed by law or as a condition of any license, permit or contract, any related constraints on operating
activities, 

  

 43 

 
including any periodic or permanent shutdown of any facility or reduction in the level of or change in the nature of operations conducted thereat, and any
actual or potential liabilities to third parties and any related costs and expenses). On the basis of this review, each Account Party has reasonably concluded that such associated liabilities and costs, including the costs of compliance with
Environmental Laws, are unlikely to have a Material Adverse Effect. The operations and properties of each Loan Party and each of its Subsidiaries comply in all material respects with all applicable Environmental Laws and Environmental Permits,
except for non-compliances which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned
or operated by any Loan Party or any of its Subsidiaries that would reasonably be expected to have a Material Adverse Effect; and there are no Environmental Actions pending or threatened against any Loan Party or its Subsidiaries, and no
circumstances exist that could be reasonably likely to form the basis of any such Environmental Action, which (in either case), individually or in the aggregate with all other such pending or threatened actions and circumstances, would reasonably be
expected to have a Material Adverse Effect. 
  
 (n) Each Loan
Party and each of its Subsidiaries has filed, has caused to be filed or has been included in all material federal tax returns and all other material tax returns required to be filed and has paid all taxes shown thereon to be due, together with
applicable interest and penalties, except to the extent contested in good faith and by appropriate proceedings (in which case adequate reserves have been established therefor in accordance with GAAP). 
  
 (o) Set forth on Schedule II hereto is a list of all letters of credit
that were issued (or deemed issued) under the Existing Reimbursement Agreement and that are outstanding as of the Effective Date. 
  
 (p) Neither any Loan Party nor any of its Subsidiaries is a Sanctioned Person. 
  
 (q) Each Loan Party and each of its Subsidiaries is in compliance in all material respects with the Patriot Act. No part of
any payment under any Letter of Credit will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
  
 ARTICLE V 
  
 COVENANTS OF THE ACCOUNT PARTIES 
  
 5.01 Affirmative Covenants. So long as any Advance or any other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Bank shall have any Letter of Credit Participating Interest Commitment or commitment to issue a Letter of Credit hereunder, each Account Party will: 
  
 (a) Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply with all applicable laws, rules, regulations and orders, such compliance to include, without limitation, compliance with Environmental Laws, Environmental Permits, ERISA and 

  

 44 

 
the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  
 (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, all material taxes, assessments and governmental charges or levies
imposed upon it or upon its property; provided, however, that neither any Account Party nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge or levy that is being contested in good faith
and by proper proceedings and as to which appropriate reserves are being maintained. 
  
 (c) Maintenance of Insurance. Maintain, and cause each of its Material Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such
risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Parent or such Material Subsidiary operates (it being understood that the foregoing shall not apply to
maintenance of reinsurance or similar matters which shall be solely within the reasonable business judgment of the Parent and its Subsidiaries). 
  
 (d) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Material Subsidiaries to preserve and maintain, its
existence, legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, privileges and franchises; provided, however, that (i) the Parent and its Subsidiaries may consummate any merger or amalgamation or
consolidation permitted under Section 5.02(c), (ii) no Subsidiary (other than an Account Party) shall be required to preserve and maintain its existence, legal structure, legal names or other rights (charter and statutory) if the Board of
Directors of a direct or indirect parent of such Subsidiary has determined that such action is not disadvantageous in any material respect to the Parent, such parent or the Banks, and (iii) neither the Parent nor any of its Subsidiaries shall be
required to preserve any right, permit, license, approval, privilege or franchise if the Board of Directors of the Parent or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of the
Parent or such Subsidiary, as the case may be, and that the loss thereof is not disadvantageous in any material respect to the Parent, such Subsidiary or the Banks. 
  
 (e) Visitation Rights. At any reasonable time and from time to time upon not less than three Business Days prior
notice, permit the Administrative Agent (upon request made by any Agent or any Bank), or any agents or representatives thereof, at the expense (so long as no Default has occurred and is continuing) of such Agent or such Bank, as the case may be, to
examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Parent and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Parent and any of its Subsidiaries with
any of their officers or directors and with, so long as a representative of the Parent is present, their independent certified public accountants; provided that neither the Parent nor any of its Subsidiaries shall be required to disclose any
information that it reasonably determines is entitled to the protection of attorney-client privilege. 
  

 45 

 (f) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record and
account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Parent and each such Subsidiary sufficient to permit the preparation of financial statements in accordance with GAAP.

  
 (g) Maintenance of Properties, Etc. Maintain and
preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted, except where the failure to do
so would not reasonably be expected to result in a Material Adverse Effect. 
  
 (h) Transactions with Affiliates. Conduct, and cause each of its Subsidiaries to conduct, all transactions otherwise permitted under the Loan Documents with any of their Affiliates (other than any such
transactions between Loan Parties or wholly owned Subsidiaries of Loan Parties) on terms that are fair and reasonable and no less favorable than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.

  
 (i) Pari Passu Ranking. Ensure that at all times the
claims of the Banks, the Issuing Banks and the Agents against it under the Loan Documents will rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for claims which are preferred by any bankruptcy,
insolvency, liquidation or other similar laws of general application or are mandatorily preferred by law applying to insurance companies generally. 
  
 (j) OFAC, Patriot Act Compliance. (i) Cause each of its Subsidiaries that is a U.S. Person to have a compliance program that is reasonably designed
to comply with OFAC’s requirements; (ii) cause each of its Subsidiaries that is a Subsidiary of a U.S. Person to provide notice promptly to the Banks upon receiving a sanction on account of, or an inquiry from any Governmental Authority related
to, a violation or potential violation of OFAC by such Subsidiary; (iii) not knowingly request the issuance of a letter of credit hereunder in favor of a beneficiary that is a Sanctioned Person or is organized under the laws of a Sanctioned Country;
and (iv) take, and cause each of its Subsidiaries to take, to the extent commercially reasonable, such actions (including providing information) as are reasonably requested by the Administrative Agent or any Bank in order to assist the
Administrative Agent and the Banks in maintaining compliance with the Patriot Act. 
  
 5.02 Negative Covenants. So long as any Advance or any other obligation of any Loan Party under any Loan Document shall remain unpaid, any Letter of Credit shall be outstanding or any Bank shall have any
Letter of Credit Participating Interest Commitment or commitment to issue a Letter of Credit hereunder, each of the Account Parties will not, at any time: 
  
 (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien
on or with respect to any of its properties of any character (including, without limitation, accounts) whether now owned or hereafter acquired, or assign or permit any of its Subsidiaries to assign, any accounts or other right to receive income,
except: 
  
 (i) Permitted Liens; 
  

 46 

 (ii) Liens described on Schedule 5.02(a) hereto; 
  
 (iii) purchase money Liens upon any property acquired or
held by the Parent or any of its Subsidiaries in the ordinary course of business to secure the purchase price of such property or to secure Debt incurred solely for the purpose of financing the acquisition, construction or improvement of any
property to be subject to such Liens, or Liens existing on any property at the time of acquisition or within 180 days following such acquisition (other than any such Liens created in contemplation of such acquisition that do not secure the purchase
price), or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount; provided, however, that no such Lien shall extend to or cover any property other than the property being acquired, constructed or
improved, and no such extension, renewal or replacement shall extend to or cover any property not theretofore subject to the Lien being extended, renewed or replaced; 
  
 (iv) Liens arising in connection with Capitalized Leases; provided that no such Lien shall extend to
or cover any assets other than the assets subject to such Capitalized Leases; 
  
 (v) (A) any Lien existing on any asset of any Person at the time such Person becomes a Subsidiary and not created in contemplation of such event, (B) any Lien on any asset of any Person existing at the time such
Person is merged or consolidated with or into the Parent or any of it Subsidiaries in accordance with Section 5.02(c) and not created in contemplation of such event and (C) any Lien existing on any asset prior to the acquisition thereof by
the Parent or any of its Subsidiaries and not created in contemplation of such acquisition; 
  
 (vi) Liens securing obligations under credit default swap transactions determined by reference to, or Contingent Obligations in respect
of, Debt issued by the Parent or one of its Subsidiaries; such Debt not to exceed an aggregate principal amount of $550,000,000; 
  
 (vii) Liens arising in the ordinary course of its business which (A) do not secure Debt and (B) do not in the aggregate materially detract
from the value of its assets or materially impair the use thereof in the operation of its business; 
  
 (viii) Liens on cash and Approved Investments securing Hedge Agreements arising in the ordinary course of business; 
  
 (ix) other Liens securing Debt or other obligations
outstanding in an aggregate principal or face amount not to exceed at any time 5% of Consolidated Net Worth; 
  
 (x) Liens consisting of deposits made by the Parent or any insurance Subsidiary with any insurance regulatory authority or other statutory
Liens or Liens or claims imposed or required by applicable insurance law or regulation against the assets of the Parent or any insurance Subsidiary, in each case in favor 

  

 47 

 
of policyholders of the Parent or such insurance Subsidiary or an insurance regulatory authority and in the ordinary course of the Parent’s or such
insurance Subsidiary’s business; 
  
 (xi)
Liens on Investments and cash balances of the Parent or any insurance Subsidiary (other than capital stock of any Subsidiary) securing obligations of the Parent or any insurance Subsidiary in respect of (i) letters of credit obtained in the ordinary
course of business and/or (ii) trust arrangements formed in the ordinary course of business for the benefit of cedents to secure reinsurance recoverables owed to them by the Parent or any insurance Subsidiary; 
  
 (xii) the replacement, extension or renewal of any Lien
permitted by clause (ii) or (v) above upon or in the same property theretofore subject thereto or the replacement, extension or renewal (without increase in the amount (other than in respect of fees, expenses and premiums, if any) or change in any
direct or contingent obligor) of the Debt secured thereby; 
  
 (xiii) Liens securing obligations owed by any Loan Party to any other Loan Party or owed by any Subsidiary of the Parent (other than a Loan Party) to the Parent or any other Subsidiary; 
  
 (xiv) Liens incurred in the ordinary course of business in
favor of financial intermediaries and clearing agents pending clearance of payments for investment or in the nature of set-off, banker’s lien or similar rights as to deposit accounts or other funds; 
  
 (xv) judgment or judicial attachment Liens, provided
that the enforcement of such Liens is effectively stayed; 
  
 (xvi) Liens arising in connection with Securitization Transactions; provided that the aggregate principal amount of the investment or claim held at any time by all purchasers, assignees or other transferees of
(or of interests in) receivables and other rights to payment in all Securitization Transactions (together with the aggregate principal amount of any other obligations secured by such Liens) shall not exceed U.S. $750,000,000; 
  
 (xvii) Liens on securities arising out of repurchase
agreements with a term of not more than three months entered into with “Lenders” (as such term is defined in the JPMorgan Credit Agreement) or their Affiliates or with securities dealers of recognized standing; provided that the
aggregate amount of all assets of the Parent and its Subsidiaries subject to such agreements shall not at any time exceed $1,000,000,000. For purposes of this clause (xvii), “JPMorgan Credit Agreement” shall mean the Three-Year
Credit Agreement dated as of April 2, 2004 among the Parent, ACE Bermuda, Tempest, and ACE INA Holdings Inc., as borrowers, various financial institutions, and JPMorgan Chase Bank, N.A., as administrative agent, as amended, modified, supplemented or
restated from time to time; and 
  

 48 

 (xviii) Liens securing up to an aggregate amount of $200,000,000 of obligations of the
Parent or any wholly owned Subsidiary, arising out of catastrophe bond financing. 
  
 (b) Change in Nature of Business. Make any material change in the nature of the business of the Parent and its Material Subsidiaries, taken as a whole, as carried on at the date hereof. 
  
 (c) Mergers, Etc. Merge into or amalgamate or consolidate with any
Person or permit any Person to merge into it, or permit any of its Subsidiaries to do so, except that: 
  
 (i) any Subsidiary of the Parent may merge into or amalgamate or consolidate with any other Subsidiary of the Parent, provided
that, in the case of any such merger, amalgamation or consolidation, the Person formed by such merger, amalgamation or consolidation shall be a wholly owned Subsidiary of the Parent, provided further that, in the case of any such
merger, amalgamation or consolidation to which an Account Party is a party, the Person formed by such merger, amalgamation or consolidation shall be such Account Party; 
  
 (ii) any Subsidiary of any Account Party may merge into or amalgamate or consolidate with any other Person
or permit any other Person to merge into, amalgamate or consolidate with it; provided that the Person surviving such merger, amalgamation or consolidation shall be a wholly owned Subsidiary of the Account Party; 
  
 (iii) in connection with any sale or other disposition
permitted under Section 5.02(d), any Subsidiary of the Parent may merge into or amalgamate or consolidate with any other Person or permit any other Person to merge into or amalgamate or consolidate with it; and 
  
 (iv) the Parent or any Account Party may merge into or
amalgamate or consolidate with any other Person; provided that, in the case of any such merger, amalgamation or consolidation, the Person formed by such merger, amalgamation or consolidation shall be the Parent or such Account Party, as the
case may be; 
  
 provided, however, that in each case, immediately
after giving effect thereto, no event shall occur and be continuing that constitutes a Default. 
  
 (d) Sales, Etc., of Assets. Sell, lease, transfer or otherwise dispose of, or permit any other Account Party to sell, lease, transfer or otherwise
dispose of, all or substantially all of its assets (excluding sales of investment securities in the ordinary course of business). 
  
 (e) Restricted Payments. Declare or pay any dividends, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests
now or hereafter outstanding, return any capital to its stockholders, partners or members (or the equivalent Persons thereof) as such, make any distribution of assets, Equity Interests, obligations or securities to its stockholders, partners or
members (or the equivalent Persons thereof) as such or issue or sell any Equity Interests or accept any capital contributions, or permit any of its Subsidiaries to do any of 

  

 49 

 
the foregoing, or permit any of its Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for value any Equity Interests in the Parent or to
issue or sell any Equity Interests therein, if in any case referred to above, a Default shall have occurred and be continuing at the time of such action or would result therefrom. 
  
 (f) Accounting Changes. Make or permit, or permit any of its Subsidiaries to make or permit, any change in accounting
policies or reporting practices, except as permitted by GAAP. 
  
 5.03 Reporting Requirements. So long as any Advance or any other obligation of any Loan Party under any Loan Document shall remain unpaid, any Letter of Credit shall be outstanding or any Bank shall have any Letter of Credit
Participating Interest Commitment or commitment to issue a Letter of Credit hereunder, the Parent will furnish to the Agents and the Banks: 
  
 (a) Default Notice. As soon as possible and in any event within five days after the occurrence of each Default or any event, development or
occurrence reasonably likely to have a Material Adverse Effect continuing on the date of such statement, a statement of the chief financial officer of the Parent setting forth details of such Default, event, development or occurrence and the action
that the Parent or the applicable Subsidiary has taken and proposes to take with respect thereto. 
  
 (b) Annual Financials. 
  
 (i) As soon as available and in any event within 90 days after the end of each Fiscal Year (or, if earlier, within five Business Days
after such date as the Parent is required to file its annual report on Form 10-K for such Fiscal Year with the Securities and Exchange Commission), a copy of the annual Consolidated audit report for such year for the Parent and its Subsidiaries,
including therein a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Year and Consolidated statements of income and cash flows of the Parent and its Subsidiaries for such Fiscal Year, all reported on in a
manner reasonably acceptable to the Securities and Exchange Commission in each case and accompanied by an opinion of PricewaterhouseCoopers LLP or other independent public accountants of recognized standing reasonably acceptable to the Required
Banks, together with (i) a certificate of the Chief Financial Officer, Chief Accounting Officer or Chief Compliance Officer of the Parent stating that no Default has occurred and is continuing, or if a Default has occurred and is continuing, a
statement as to the nature thereof and the action that the Parent has taken a proposes to take with respect thereto, and (ii) a schedule in form reasonably satisfactory to the Administrative Agent of the computations used by the Parent in
determining, as of the end of such Fiscal Year, compliance with the covenants contained in Section 5.04. 
  
 (ii) As soon as available and in any event within 120 days after the end of each Fiscal Year, a copy of the annual Consolidated audit
report for such year for each Subsidiary Guarantor and its Subsidiaries, including therein a 

  

 50 

 
Consolidated balance sheet of such Subsidiary Guarantor and its Subsidiaries as of the end of such Fiscal Year and a Consolidated statement of income and a
Consolidated statement of cash flows of such Subsidiary Guarantor and its Subsidiaries for such Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, in each case accompanied by an opinion acceptable to the Required Banks of
PricewaterhouseCoopers LLP or other independent public accountants of recognized standing acceptable to the Required Banks. 
  
 (iii) As soon as available and in any event within 20 days after submission, each statutory statement of the Loan Parties (or any of them)
in the form submitted to the Supervisor of Insurance, the Insurance Division of the Bermuda Monetary Authority. 
  
 (c) Quarterly Financials. As soon as available and in any event within 45 days after the end of each of the first three quarters of each Fiscal
Year (or, if earlier, within five Business Days after such date as the Parent is required to file its quarterly report on Form 10-Q for such fiscal quarter with the Securities and Exchange Commission), Consolidated balance sheets of the Parent and
its Subsidiaries as of the end of such quarter and Consolidated statements of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with
the end of such fiscal quarter and Consolidated statements of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such
quarter, setting forth in each case in comparative form the corresponding figures for the corresponding date or period of the preceding Fiscal Year, all in reasonable detail and duly certified (subject to the absence of footnotes and normal year-end
audit adjustments) by the Chief Financial Officer, Chief Accounting Officer or Chief Compliance Officer of the Parent as having been prepared in accordance with GAAP, together with (i) a certificate of said officer stating that no Default has
occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Parent has taken and proposes to take with respect thereto and (ii) a schedule in form reasonably satisfactory
to the Administrative Agent of the computations used by the Parent in determining compliance with the covenants contained in Section 5.04. 
  
 (d) Litigation. Promptly after the commencement thereof, notice of all actions, suits, investigations, litigation and proceedings before any court
or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting any Loan Party or any of its Subsidiaries of the type described in Section 4.01(f). 
  
 (e) Securities Reports. Promptly after the sending or filing thereof,
copies of all proxy statements, financial statements and reports that the Parent sends to its stockholders generally, copies of all regular, periodic and special reports, and all registration statements, that any Loan Party or any of its
Subsidiaries files with the Securities and Exchange Commission or any governmental authority that may be substituted therefor, or with any national securities exchange. 
  

 51 

 (f) ERISA. 
  
 (i) ERISA Events. Promptly and in any event within 10 days after any Loan Party or any ERISA
Affiliate institutes any steps to terminate any Pension Plan or becomes aware of the institution of any steps or any threat by the PBGC to terminate any Pension Plan, or the failure to make a required contribution to any Pension Plan if such failure
is sufficient to give rise to a lien under section 302(f) of ERISA, or the taking of any action with respect to a Pension Plan which could result in the requirement that any Loan Party or any ERISA Affiliate furnish a bond or other security to the
PBGC or such Pension Plan, or the occurrence of any event with respect to any Pension Plan which could result in any Loan Party or any ERISA Affiliate incurring any material liability, fine or penalty, or any material increase in the contingent
liability of any Loan Party or any ERISA Affiliate with respect to any post-retirement Welfare Plan benefit, notice thereof and copies of all documentation relating thereto. 
  
 (ii) Plan Annual Reports. Promptly upon request of any Agent or any Bank, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) with respect to each Pension Plan. 
  
 (iii) Multiemployer Plan Notices. Promptly and in any event within 15 Business Days after receipt thereof by any Loan Party or any
ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the reorganization or termination, within the meaning of Title IV of ERISA, of
any such Multiemployer Plan or (C) the amount of liability incurred, or that may be incurred, by such Loan Party or any ERISA Affiliate in connection with any event described in clause (A) or (B); provided, however, that such notice
and documentation shall not be required to be provided (except at the specific request of any Agent or any Bank, in which case such notice and documentation shall be promptly provided following such request) if such condition or event is not
reasonably expected to result in any Loan Party or any ERISA Affiliate incurring any material liability, fine, or penalty. 
  
 (g) Regulatory Notices, Etc. Promptly after any Responsible Officer of the Parent obtains knowledge thereof, (i) a copy of any notice from the
Bermuda Minister of Finance or the Registrar of Companies or any other person of the revocation, the suspension or the placing of any restriction or condition on the registration as an insurer of any Account Party under the Bermuda Insurance Act
1978 (and related regulations) or of the institution of any proceeding or investigation which could result in any such revocation, suspension or placing of such a restriction or condition, (ii) copies of any correspondence by, to or concerning any
Loan Party relating to an investigation conducted by the Bermuda Minister of Finance, whether pursuant to Section 132 of the Bermuda Companies Act 1981 (and related regulations) or otherwise and (iii) a copy of any notice of or requesting or
otherwise relating to the winding-up or any similar proceeding of or with respect to any Loan Party. 
  

 52 

 (h) Other Information. Such other information respecting the business, condition (financial or
otherwise), operations, performance, properties or prospects of any Loan Party or any of its Subsidiaries as the Administrative Agent, or any Bank through the Administrative Agent, may from time to time reasonably request. Information required to be
delivered pursuant to Sections 5.03(b), 5.03(c), and 5.03(e) shall be deemed to have been delivered on the date on which the Parent provides notice to the Administrative Agent that such information has been posted on the
Parent’s website on the Internet at the website address listed on the signature pages hereof, at sec.gov/edaux.searches.htm or at another website identified in such notice and accessible by the Banks without charge; provided that (x)
such notice may be included in a certificate delivered pursuant to Section 5.03(b)(i)(A) or 5.01(c)(i) and (y) the Parent shall deliver paper copies of the information referred to in Sections 5.03(b), 5.03(c), and
5.03(e) to any Bank which requests such delivery. 
  
 5.04
Financial Covenants. So long as any Advance or any other obligation of any Loan Party under any Loan Document shall remain unpaid, any Letter of Credit shall be outstanding or any Bank shall have any Letter of Credit Participating
Interest Commitment or commitment to issue a Letter of Credit hereunder, the Parent will: 
  
 (a) Adjusted Consolidated Debt to Total Capitalization Ratio. Maintain at all times a ratio of Adjusted Consolidated Debt to Total Capitalization of not more than 0.35 to 1.0. 
  
 (b) Consolidated Net Worth. Maintain at all times Consolidated Net
Worth in an amount not less than the Minimum Amount. For this purpose, the “Minimum Amount” is an amount equal to the sum of (i) the then-current Base Amount plus (ii) (A) 25% of Consolidated Net Income for each completed fiscal
quarter of the Parent for which Consolidated Net Income is positive and that ends after the date on which the then-current Base Amount became effective and on or before the last day of the then-current Fiscal Year and (B) 50% of any increase in
Consolidated Net Worth during such period attributable to the issuance of ordinary or preferred shares. The “Base Amount” shall be $6,441,000,000 as of March 30, 2005 and shall thereafter be reset on the earlier of (A) the date of
the delivery of the financial statements for the immediately preceding Fiscal Year pursuant to Section 5.03(b)(i) and (B) March 30 of each year to an amount equal to the greater of (x) 70% of Consolidated Net Worth as of the last day of the
immediately preceding Fiscal Year and (y) the Minimum Amount in effect as of the last day of the immediately preceding Fiscal Year. 
  
 ARTICLE VI 
  
 EVENTS OF DEFAULT 
  
 6.01 Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 
  
 (a) (i) any Account Party shall fail to pay any reimbursement obligation in respect of any Advance made by any Issuing Bank
pursuant to a Letter of Credit when and as the same shall become due and payable, or (ii) any Account Party shall fail to make any payment of interest on such Advance or of any other amount payable by such Account Party under any Loan 

  

 53 

 
Document, in each case under this clause (ii) within five Business Days after the same becomes due and payable; or 
  
 (b) any representation or warranty made by any Loan Party (or any of its
officers) under or in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or 
  
 (c) any Account Party shall fail to perform or observe any term, covenant or agreement contained in Section 2.10, 5.01(d) (with respect to
the Parent), 5.02, 5.03(a) or 5.04; or 
  
 (d) any Account Party shall fail to perform or observe any term, covenant or agreement contained in Section 5.01(e) if such failure shall remain unremedied for five Business Days after written notice thereof shall have been given to
such Loan Party by any Agent or any Bank; or 
  
 (e) any Loan
Party shall fail to perform or observe any other term, covenant or agreement contained in any Loan Document on its part to be performed or observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a
Responsible Officer becomes aware of such failure or (ii) written notice thereof shall have been given to such Loan Party by any Agent or any Bank; or 
  
 (f) the Parent or any of its Subsidiaries shall fail to pay any Material Financial Obligation (but excluding Debt outstanding hereunder) of the Parent or
such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified
in the agreement or instrument relating to such Material Financial Obligation; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Material Financial Obligation and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Material Financial Obligation or otherwise to cause, or to
permit the holder thereof to cause, such Material Financial Obligation to mature; or any such Material Financial Obligation shall be declared to be due and payable or required to be prepaid or redeemed (other than by a regularly scheduled required
prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Material Financial Obligation shall be required to be made, in each case prior to the stated maturity thereof; or 
  
 (g) any Loan Party or any of its Significant Subsidiaries shall generally not
pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Loan Party or any of
its Significant Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it 

  

 54 

 
(but not instituted by it) that is being diligently contested by it in good faith, either such proceeding shall remain undismissed or unstayed for a period
of 60 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or any substantial part of
its property) shall occur; or any Loan Party or any of its Significant Subsidiaries shall take any corporate action to authorize any of the actions set forth above in this Section 6.01(g); or 
  
 (h) any judgment or order for the payment of money in excess of $100,000,000
shall be rendered against any Loan Party or any of its Subsidiaries and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 30 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (i) any non-monetary judgment or order shall be rendered against any Loan Party or any of its Subsidiaries that would be reasonably likely to have a
Material Adverse Effect, and there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (j) any provision in Article VII of this Agreement shall for any
reason cease to be valid and binding on or enforceable against any Loan Party (other than as a result of a transaction permitted hereunder), or any such Loan Party shall so state in writing; or 
  
 (k) a Change of Control shall occur; or 
  
 (l) Any Loan Party or any ERISA Affiliate shall incur or shall be reasonably
expected to incur liability in excess of $25,000,000 in the aggregate with respect to any Pension Plan or any Multiemployer Plan in connection with the occurrence of any of the following events or existence of any of the following conditions:

  
 (i) Institution of any steps by any Loan
Party, any ERISA Affiliate or any other Person, including, without limitation, the PBGC to terminate a Pension Plan if as a result of such termination a Loan Party or any ERISA Affiliate would reasonably expect to be required to make a contribution
to such Pension Plan, or would reasonably expect to incur a liability or obligation; or 
  
 (ii) A contribution failure occurs with respect to any Pension Plan sufficient to give rise to a lien under section 302(f) of ERISA; or

  
 (iii) Any condition shall exist or event
shall occur with respect to a Pension Plan that is reasonably expected to result in any Loan Party or any ERISA Affiliate being required to furnish a bond or security to the PBGC or such Pension Plan, or incurring a liability or obligation; or

  
 (m) any Loan Party or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability or a default, within the meaning of Section 4219(c)(5) of ERISA, has occurred with respect to such Multiemployer Plan which 

  

 55 

 
could cause any Loan Party or any ERISA Affiliate to incur a payment obligation in excess of $25,000,000; 
  
 then, and in any such event, the Administrative Agent (i) shall at the request, or may with
the consent, of the Required Banks, by notice to the Account Parties, declare the obligation of the Issuing Banks to issue Letters of Credit to be terminated, whereupon the same shall forthwith terminate, and/or (ii) shall at the request, or may
with the consent, of the Required Banks, by notice to the Account Parties, declare all amounts payable under this Agreement and the other Loan Documents to be forthwith due and payable, whereupon all such amounts shall become and be forthwith due
and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Account Parties; provided, however, that in the event of an actual or deemed entry of an order for relief
with respect to any Account Party under the federal Bankruptcy Code, (x) the obligation of the Issuing Banks to issue Letters of Credit shall automatically be terminated, (y) all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Account Parties and (z) the obligation of the Account Parties to provide cash collateral under Section 6.02 shall automatically
become effective. 
  
 6.02 Actions in Respect of the Letters of
Credit upon Default. If any Event of Default shall have occurred and be continuing, the Administrative Agent may, or shall at the request of the Required Banks, after having taken any of the actions described in Section 6.01(ii) or
otherwise, make demand upon the Account Parties to, and forthwith upon such demand the Account Parties will, pay to the Administrative Agent on behalf of the Banks in same day funds at the Administrative Agent’s office designated in such
demand, an amount equal to the aggregate Available Amount of all Letters of Credit then outstanding as cash collateral. If at any time during the continuance of an Event of Default the Administrative Agent determines that such funds are subject to
any right or claim of any Person other than the Administrative Agent and the Banks or that the total amount of such funds is less than the aggregate Available Amount of all Letters of Credit, the Account Parties will, forthwith upon demand by the
Administrative Agent, pay to the Administrative Agent, as additional cash collateral, an amount equal to the excess of (a) such aggregate Available Amount over (b) the total amount of funds, if any, that the Administrative Agent determines to be
free and clear of any such right and claim. Upon the drawing of any Letter of Credit, such funds shall be applied to reimburse the Issuing Banks or Banks, as applicable, to the extent permitted by applicable law. 
  
 ARTICLE VII 
  
 THE GUARANTY 
  
 7.01 The Guaranty. 
  
 (a) Each Account Party hereby jointly and severally, unconditionally,
absolutely and irrevocably guarantees the full and punctual payment (whether at stated maturity, upon acceleration or otherwise) of all amounts payable by each of the other Account Parties under the Loan Documents including, without limitation, the
principal of and interest (including, to the greatest extent permitted by law, post-petition interest) on reimbursement obligations owing by such other Account Parties pursuant to this Agreement with respect to Letters of Credit and fees, 

  

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expenses, indemnities or any other obligations, whether now existing or hereafter incurred, created or arising and whether direct or indirect, absolute or
contingent, or due or to become due. Upon failure by an Account Party to pay punctually any such amount, each other Account Party agrees to pay forthwith on demand the amount not so paid at the place and in the manner specified in this Agreement.

  
 (b) Each Account Party (other than the Parent), and by its
acceptance of this Guaranty, the Administrative Agent and each other Bank, hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations of each Account Party hereunder not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the obligations of each Account Party
(other than the Parent) hereunder. To effectuate the foregoing intention, the Administrative Agent, the other Banks and the Account Parties hereby irrevocably agree that the obligations of each Account Party (other than the Parent) under this
Article VII at any time shall be limited to the maximum amount as will result in the obligations of such Account Party under this Guaranty not constituting a fraudulent transfer or conveyance. 
  
 7.02 Guaranty Unconditional. The obligations of each Account
Party under this Article VII shall be unconditional, absolute and irrevocable and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
  
 (i) any extension, renewal, settlement, compromise, waiver
or release in respect of any obligation of any other obligor under any of the Loan Documents, by operation of law or otherwise; 
  
 (ii) any modification or amendment of or supplement to any of the Loan Documents; 
  
 (iii) any release, non-perfection or invalidity of any
direct or indirect security for any obligation of any other obligor under any of the Loan Documents; 
  
 (iv) any change in the corporate existence, structure or ownership of any obligor, or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting any other obligor or its assets or any resulting release or discharge of any obligation of any other obligor contained in any of the Loan Documents; 
  
 (v) the existence of any claim, set-off or other rights which any obligor may have at any time against any
other obligor, the Administrative Agent, any Bank or any other corporation or person, whether in connection with any of the Loan Documents or any unrelated transactions, provided that nothing herein shall prevent the assertion of any such
claim by separate suit or compulsory counterclaim; 
  
 (vi) any invalidity or unenforceability relating to or against any other obligor for any reason of any of the Loan Documents, or any provision of applicable law or regulation purporting to prohibit the payment by any other 

  

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obligor of principal interest or any other amount payable under any of the Loan Documents; 
  
 (vii) any law, regulation or order of any jurisdiction, or any other event, affecting any term of any
obligation of the Banks’ rights with respect thereto; or 
  
 (viii) any other act or omission to act or delay of any kind by any obligor, the Administrative Agent, any Bank or any other corporation or person or any other circumstance whatsoever which might, but for the
provisions of this paragraph, constitute a legal or equitable discharge of or defense to an Account Party’s obligations under this Article VII. 
  
 7.03 Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances. Each Account Party’s obligations under this
Article VII shall remain in full force and effect until the commitments of the Banks hereunder shall have terminated, no Letters of Credit shall be outstanding and all amounts payable by the other Account Parties under the Loan Documents
shall have been paid in full. If at any time any payment of the principal of or interest on any reimbursement obligation or any other amount payable by an Account Party under the Loan Documents is rescinded or must be otherwise restored or returned
upon the insolvency, bankruptcy or reorganization of such Account Party or otherwise, each other Account Party’s obligations under this Article VII with respect to such payment shall be reinstated as though such payment had been due but
not made at such time. 
  
 7.04 Waiver by the Account
Parties. Each Account Party irrevocably waives acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any corporation or person against
any other obligor or any other corporation or person. 
  
 7.05
Subrogation. Each Account Party hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against any other Account Party, or any other insider guarantor that arise from the
existence, payment, performance or enforcement of such Account Party’s obligations under or in respect of this Guaranty or any other Loan Document, including, without limitation, any right of subrogation, reimbursement, exoneration,
contribution or indemnification and any right to participate in any claim or remedy of any Bank against any other Account Party, any other Loan Party or any other insider guarantor or any collateral, whether or not such claim, remedy or right arises
in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any other Account Party, any other Loan Party or any other insider guarantor, directly or indirectly, in cash or other property or
by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all amounts payable under this Guaranty shall have been paid in full in cash, no Letters of Credit shall be outstanding and the
commitments of the Banks hereunder shall have expired or been terminated. If any amount shall be paid to any Account Party in violation of the immediately preceding sentence at any time prior to the latest of (a) the payment in full in cash of all
amounts payable under this Guaranty, and (b) the Expiration Date, such amount shall be received and held in trust for the benefit of the Banks, shall be segregated from other property and funds of such Account Party and shall forthwith be paid or
delivered to the Administrative Agent in the same form as so received (with 

  

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any necessary endorsement or assignment) to be credited and applied to all amounts payable under this Guaranty, whether matured or unmatured, in accordance
with the terms of the Loan Documents, or to be held as collateral for any amounts payable under this Guaranty thereafter arising. If (i) any Account Party shall make payment to any Bank of all or any amounts payable under this Guaranty, (ii) all
amounts payable under this Guaranty shall have been paid in full in cash, and (iii) the Expiration Date shall have occurred, the Banks will, at such Account Party’s request and expense, execute and deliver to such Account Party appropriate
documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Account Party of an interest in the obligations resulting from such payment made by such Account Party pursuant to this
Guaranty. 
  
 7.06 Stay of Acceleration. If
acceleration of the time for payment of any amount payable by any Account Party under any of the Loan Documents is stayed upon the insolvency, bankruptcy or reorganization of such Account Party, all such amounts otherwise subject to acceleration
under the terms of this Agreement shall nonetheless be payable by the other Account Parties under this Article VII forthwith on demand by the Administrative Agent made at the request of the requisite proportion of the Banks. 
  
 7.07 Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of all amounts payable under this Guaranty and (ii) the Expiration Date, (b) be binding upon each Account Party, its successors and
assigns and (c) inure to the benefit of and be enforceable by the Banks and their successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, any Bank may assign or otherwise transfer all
or any portion of its rights and obligations under this Agreement (including, without limitation, all or any portion of its Letter of Credit Participating Interest Commitment and the Advances owing to it) to any other Person, and such other Person
shall thereupon become vested with all the benefits in respect thereof granted to such Bank herein or otherwise, in each case as and to the extent provided in Section 9.07. 
  
 ARTICLE VIII 
  
 THE AGENTS 
  
 8.01 Authorization and Action. Each Bank (in its capacity as a Bank) hereby appoints and authorizes each Agent to take such action as agent
on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto.
As to any matters not expressly provided for by the Loan Documents, no Agent shall be required to exercise any discretion or take any action, but shall be required to act (in the case of the Administrative Agent) or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the instructions of the Required Banks or all the Banks where unanimity is required, and such instructions shall be binding upon all Banks; provided, however, that no
Agent shall be required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or applicable law. The Administrative Agent agrees to give to each Bank prompt notice of each notice given to it by any
Account Party pursuant to the terms of this Agreement. 
  

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 8.02 Agents’ Reliance, Etc. Neither any Agent nor any of its respective directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with the Loan Documents, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, each Agent: (a) may consult with legal counsel (including counsel for any Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to any Bank and shall not be responsible to any Bank for any statements, warranties or representations (whether written or oral)
made in or in connection with the Loan Documents; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any Loan Document on the part of any Loan Party or to
inspect the property (including the books and records) of any Loan Party; (d) shall not be responsible to any Bank for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any
lien or security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; and (e) shall incur no liability under or in respect of any Loan Document by
acting upon any notice, consent, certificate or other instrument or writing (which may be by telegram or telecopy) reasonably believed by it to be genuine and signed or sent by the proper party or parties. 
  
 8.03 Agents and Affiliates. With respect to its LC Commitment
Amounts, and the Advances, each Agent shall have the same rights and powers under the Loan Documents as any other Bank and may exercise the same as though it were not an Agent; and the term “Bank” or “Banks” shall, unless
otherwise expressly indicated, include each Agent in its individual capacity. Each Agent and its affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and generally engage
in any kind of business with, any Loan Party, any of its Subsidiaries and any Person that may do business with or own securities of any Loan Party or any such Subsidiary, all as if such Agent were not an Agent and without any duty to account
therefor to the Banks. 
  
 8.04 Bank Credit
Decision. Each Bank acknowledges that it has, independently and without reliance upon any Agent or any other Bank and based on the financial statements referred to in Section 4.01 and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Bank also acknowledges that it will, independently and without reliance upon any Agent or any other Bank and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement. 
  
 8.05 Indemnification. 
  
 (a) Each Bank severally agrees to indemnify each Agent and its officers, directors, employees, agents, advisors and Affiliates (to the extent not promptly
reimbursed by the Account Parties) from and against such Bank’s ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever that may be imposed on, incurred by, or asserted against such Agent or any such other Person in any way relating to or arising out of the Loan Documents or any action taken or omitted by such Agent under the Loan Documents;
provided, 

  

 60 

 
however, that no Bank shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s or other Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Bank agrees to reimburse each Agent promptly upon demand for its ratable share of any
costs and expenses (including, without limitation, fees and expenses of counsel) payable by the Account Parties under Section 9.04, to the extent that such Agent is not promptly reimbursed for such costs and expenses by the Account Parties.

  
 (b) For purposes of this Section 8.05, the Banks’
respective ratable shares of any amount shall be determined, at any time, according to the sum of (i) the aggregate principal amount of the Advances outstanding at such time and owing to the respective Banks, (ii) their respective Pro Rata Shares of
the aggregate Available Amounts of all Letters of Credit outstanding at such time and (iii) their respective Unused LC Commitment Amounts at such time. The failure of any Bank to reimburse any Agent promptly upon demand for its ratable share of any
amount required to be paid by the Banks to such Agent as provided herein shall not relieve any other Bank of its obligation hereunder to reimburse such Agent for its ratable share of such amount, but no Bank shall be responsible for the failure of
any other Bank to reimburse such Agent for such other Bank’s ratable share of such amount. Without prejudice to the survival of any other agreement of any Bank hereunder, the agreement and obligations of each Bank contained in this Section
8.05 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents. 
  
 8.06 Successor Administrative Agent. Any Agent may resign at any time by giving written notice thereof to the Banks and the Parent. Upon any
such resignation or removal of the Administrative Agent, the Required Banks shall have the right to appoint a successor Administrative Agent, subject (so long as no Event of Default exists) to the consent of the Parent (which consent shall not be
unreasonably withheld). If no successor Administrative Agent shall have been so appointed by the Required Banks, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation
or the Required Banks’ removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Banks, appoint a successor Administrative Agent, which shall be a commercial bank organized under the laws of the
United States or of any State thereof and having a combined capital and surplus of at least $250,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent such successor Administrative
Agent shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under the Loan
Documents. If within 45 days after written notice is given of the retiring Administrative Agent’s resignation or removal under this Section 8.06 no successor Administrative Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (i) the retiring Administrative Agent’s resignation or removal shall become
effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (iii) the Required Banks shall thereafter perform all duties of the retiring Administrative Agent under the
Loan Documents until such time, if any, as the Required Banks appoint a successor Administrative Agent as provided above. After any retiring Agent’s resignation or removal hereunder as Agent shall have become effective, the provisions of this
Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it 

  

 61 

 
was Agent under this Agreement. If Bank of America ceases to be a Bank hereunder, it shall be deemed to have resigned as Syndication Agent and no replacement
shall be appointed. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 9.01 Amendments, Etc. No amendment or waiver of any provision
of this Agreement or any other Loan Document, nor consent to any departure by any Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed by Wachovia in its capacity as an Issuing Bank and the Required
Banks (and, in the case of an amendment, the Parent), and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or
consent shall: 
  
 (a) unless in writing and
signed by all of the Banks (other than any Bank that is, at such time, a Defaulting Bank), do any of the following at any time: (i) waive any of the conditions specified in Section 3.01 or, in the case of the Effective Date, Section
3.02, (ii) change the number of Banks or the percentage of (x) the LC Commitment Amounts, (y) the aggregate unpaid principal amount of the Advances or (z) the aggregate Available Amount of outstanding Letters of Credit that, in each case, shall
be required for the Banks or any of them to take any action hereunder, (iii) reduce or limit the obligations of any Account Party under Section 7.01 or release such Account Party or otherwise limit such Account Party’s liability with
respect to the obligations owing to the Agents and the Banks, (iv) amend this Section 9.01 or any of the definitions herein that would have such effect, (v) extend the Expiration Date, or (vi) limit the liability of any Loan Party under any
of the Loan Documents; 
  
 (b) unless in writing
and signed by each affected Bank, do any of the following at any time: (i) increase the LC Commitment Amounts of the Banks or subject the Banks to any additional obligations, (ii) reduce the principal of, or interest on, any reimbursement obligation
or any fees or other amounts payable hereunder, or increase any Bank’s LC Commitment Amount, or (iii) postpone any date fixed for any payment of principal of, or interest on, any reimbursement obligation or any fees or other amounts payable
hereunder; 
  
 provided further that no amendment, waiver or consent
shall, unless in writing and signed by an Agent in addition to the Banks required above to take such action, affect the rights or duties of such Agent under this Agreement or the other Loan Documents and no amendment, waiver or consent shall, unless
in writing and signed by an Issuing Bank in addition to the Banks above required to take such action, affect the rights or duties of such Issuing Bank under this Agreement or the other Loan Documents. 
  
 9.02 Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy communication) and mailed, telegraphed, telecopied or delivered, if to any Account Party, at its address set forth below on the signature pages hereof; if to any Initial
Bank, at its Domestic Lending Office specified in its 

  

 62 

 
Administrative Questionnaire; if to any other Bank, at its Domestic Lending Office specified in the Assignment and Acceptance pursuant to which it became a
Bank; if to Wachovia (in its capacity as Issuing Bank) at its address at 401 Linden Street, Mail Code NC-6034, Winston-Salem, North Carolina 27101, Attn: International Operations — Standby Letter of Credit Department, Telecopy No. (336)
735-0952; and if to the Administrative Agent, at its address at Charlotte Plaza Building, 201 South College Street, 8th Floor NC0680, Charlotte, North Carolina 28288, Attn: Syndication Agency Services, Telecopy No. (704) 383-0288, with a copy to Mark B. Felker, Managing Director, 301 South College Street, 6th Floor NC0760, Charlotte, NC 28288, Telecopy No. (704) 383-7611; or, as to any party, at such other address as shall be designated by such party in a written
notice to the other parties. All such notices and communications shall, when mailed, telegraphed or telecopied, be effective when deposited in the mails, delivered to the telegraph company or transmitted by telecopier, respectively, except that
notices and communications to the Administrative Agent pursuant to Article II, III or VIII shall not be effective until received by the Administrative Agent. Manual delivery by telecopier of an executed counterpart of any
amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. 
  
 9.03 No Waiver; Remedies. No failure on the part of any Bank or
any Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 9.04 Costs and Expenses. 
  
 (a) Each of the Account Parties agrees to pay on demand (i) all reasonable costs and expenses of the Agents, the Joint Lead Arrangers and Wachovia, in its capacity as an Issuing Bank, in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Documents (including, without limitation, (A) all due diligence, collateral review, syndication, transportation, computer, duplication, appraisal, audit, insurance, consultant, search, filing
and recording fees and expenses and (B) the reasonable fees and expenses of a single counsel for the Administrative Agent and Wachovia in its capacity as an Issuing Bank with respect thereto, with respect to advising the Administrative Agent as to
its rights and responsibilities, or the perfection, protection or preservation of rights or interests, under the Loan Documents, with respect to negotiations with any Loan Party or with other creditors of any Loan Party or any of its Subsidiaries
arising out of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors’ rights generally and any proceeding ancillary thereto); and (ii) all reasonable costs and expenses of each Agent, each Issuing Bank and each Bank in connection with the enforcement of the Loan Documents, whether in any action, suit
or litigation, or any bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent, each Issuing Bank and each
Bank with respect thereto). 
  

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 (b) Each of the Account Parties jointly and severally agrees to indemnify and hold harmless each Agent,
each Joint Lead Arranger, each Issuing Bank, each Bank and each of their Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) this Agreement, the actual or proposed use of the proceeds of the Advances, the Loan
Documents or any of the transactions contemplated thereby, except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Party or any of its Affiliates. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 9.04(b) applies, such indemnity shall be effective
whether or not such investigation, litigation or proceeding is brought by any Loan Party, its directors, shareholders or creditors or an Indemnified Party or any Indemnified Party is otherwise a party thereto and whether or not the transactions
contemplated by the Loan Documents are consummated. Each of the Account Parties also agrees not to assert any claim against any Agent, any Joint Lead Arranger, any Bank or any of their Affiliates, or any of their respective officers, directors,
employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the credit facilities provided hereunder, the actual or proposed use of the proceeds of the
Advances or the Letters of Credit, the Loan Documents or any of the transactions contemplated by the Loan Documents. 
  
 (c) Without prejudice to the survival of any other agreement of any Loan Party hereunder or under any other Loan Document, the agreements and obligations
of the Account Parties contained in Section 2.07 and this Section 9.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under any of the other Loan Documents. 
  
 9.05 Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare amounts owing hereunder to be due and payable pursuant to the
provisions of Section 6.01, each Agent and each Bank and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and otherwise apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Agent, such Bank or such Affiliate to or for the credit or the account of any Account Party against any and all of the
obligations of such Account Party now or hereafter existing under the Loan Documents, irrespective of whether such Agent or such Bank shall have made any demand under this Agreement and although such obligations may be unmatured. Each Agent and each
Bank agrees promptly to notify each Account Party after any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Agent
and each Bank and their respective Affiliates under this Section 9.05 are in addition to other rights and remedies (including, without 

  

 64 

 
limitation, other rights of set-off) that such Agent, such Bank and their respective Affiliates may have. 
  
 9.06 Binding Effect. This Agreement shall become effective when
it shall have been executed by each Account Party, each Issuing Bank and each Agent and the Administrative Agent shall have been notified by each Initial Bank that such Initial Bank has executed it and thereafter shall be binding upon and inure to
the benefit of each Account Party, each Agent, each Issuing Bank and each Bank and their respective successors and assigns, except that no Account Party shall have the right to assign its rights hereunder or any interest herein without the prior
written consent of the Banks. 
  
 9.07 Assignments and
Participations. 
  
 (a) Each Bank may, and so long as no
Default shall have occurred and be continuing, if demanded by any Account Party (following a demand by such Bank pursuant to Section 2.12) upon at least five Business Days notice to such Bank and the Administrative Agent, will, assign to one
or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its LC Commitment Amount, its Letter of Credit Participating Interest Commitment and the Letter of
Credit Advances owing to it); provided, however, that (i) each such assignment shall be of a uniform, and not a varying, percentage of all rights and obligations of such Bank hereunder, except for any non-pro rata assignment made by a
Downgraded Bank after a request by the Administrative Agent pursuant to Section 2.14 (and any subsequent non-pro rata assignment of the interest so assigned or by the Downgraded Bank) and any other non-pro rata assignment approved by the
Administrative Agent and any Account Party, (ii) except in the case of an assignment to a Person that, immediately prior to such assignment, was (x) a Bank or an Affiliate of any Bank, the aggregate amount of the LC Commitment Amounts being assigned
to such Eligible Assignee pursuant to such assignment (determined as of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be less than $1,000,000 unless it is an assignment of the entire amount of such
assignor’s LC Commitment Amount, or (y) not a Bank or an Affiliate of any Bank, the aggregate amount of the LC Commitment Amounts being assigned to such Eligible Assignee pursuant to such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event be less than $5,000,000 unless it is an assignment of the entire amount of such assignor’s LC Commitment Amount, (iii) each such assignment shall be to an Eligible Assignee, (iv)
each assignment made as a result of a demand by any Account Party pursuant to Section 2.12 shall be arranged by such Account Party after consultation with the Administrative Agent and shall be either an assignment of all of the rights and
obligations of the assigning Bank under this Agreement or an assignment of a portion of such rights and obligations made concurrently with another such assignment or other such assignments that together cover all of the rights and obligations of the
assigning Bank under this Agreement, (v) no Bank shall be obligated to make any such assignment as a result of a demand by any Account Party pursuant to Section 2.12 unless and until such Bank shall have received one or more payments from
either such Account Party or other Eligible Assignees in an aggregate amount at least equal to the aggregate outstanding principal amount of the Advances made by such Bank, together with accrued interest thereon to the date of payment of such
principal amount and all other amounts payable to such Bank under this Agreement, (vi) as a result of such assignment, no Account Party shall be subject to additional amounts under 

  

 65 

 
Section 2.06 or 2.08 and (vii) the parties to each such assignment shall execute and deliver to the Administrative Agent, for its acceptance
and recording in the Register, an Assignment and Acceptance, together with a processing and recordation fee of $3,500. 
  
 (b) Upon such execution, delivery, acceptance and recording, from and after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Bank, hereunder and (ii) the Bank assignor
thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than its rights under Sections 2.06, 2.08 and 9.04 to the
extent any claim thereunder relates to an event arising prior to such assignment and any other rights that are expressly provided hereunder to survive) and be released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the remaining portion of an assigning Bank’s rights and obligations under this Agreement, such Bank shall cease to be a party hereto). 
  
 (c) By executing and delivering an Assignment and Acceptance, each Bank assignor thereunder and each assignee thereunder
confirm to and agree with each other and the other parties thereto and hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Bank makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with any Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or
security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; (ii) such assigning Bank makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under any Loan Document or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon any Agent, such assigning Bank or any other Bank and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each Agent to take such
action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Bank. 
  
 (d) The Administrative Agent, acting for this purpose (but only for this purpose) as the agent of the Account Parties, shall
maintain at its address referred to in Section 9.02 a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Banks and the LC Commitment Amount of, and

  

 66 

 
principal amount of the Advances owing to, each Bank from time to time (the “Register”). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Account Parties, the Agents and the Banks shall treat each Person whose name is recorded in the Register as a Bank hereunder for all purposes of this Agreement. The Register shall be available
for inspection by any Account Party or any Agent or any Bank at any reasonable time and from time to time upon reasonable prior notice. 
  
 (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Bank and an assignee, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit A hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Parent
and to the parties to such Assignment and Acceptance. 
  
 (f) Each
Bank may sell participations to one or more Persons (other than any Loan Party or any of its Affiliates) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its LC
Commitment Amount, its Letter of Credit Participating Interest Commitment and the Advances owing to it; provided, however, that (i) such Bank’s obligations under this Agreement (including, without limitation, its Letter of Credit
Participating Interest Commitment) shall remain unchanged, (ii) such Bank shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the Account Parties, the Agents and the other Banks shall continue
to deal solely and directly with such Bank in connection with such Bank’s rights and obligations under this Agreement and (iv) no participant under any such participation shall have any right to approve any amendment or waiver of any provision
of any Loan Document, or any consent to any departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, reimbursement obligations or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation, postpone any date fixed for any payment of principal of, or interest on, the reimbursement obligations or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation. Each Bank shall, as agent of the Account Parties solely for the purposes of this Section 9.07, record in book entries maintained by such Bank, the name and amount of the participating interest of each
Person entitled to receive payments in respect of any participating interests sold pursuant to this Section 9.07. 
  
 (g) Any Bank may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.07,
disclose to the assignee or participant or proposed assignee or participant any information relating to any Account Party furnished to such Bank by or on behalf of any Account Party; provided, however, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Confidential Information received by it from such Bank. 
  
 (h) Notwithstanding any other provision set forth in this Agreement, any Bank may at any time create a security interest in
all or any portion of its rights under this Agreement (including, without limitation, the Advances owing to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 

 

 67 

 9.08 Execution in Counterparts. This Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature
page to this Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 9.09 No Liability of the Issuing Banks. Each Account Party assumes all risks of the acts or omissions of any beneficiary or transferee of
any Letter of Credit with respect to its use of such Letter of Credit. Neither an Issuing Bank nor any of its officers, directors, employees or agents shall be liable or responsible for: (a) the use that may be made of any Letter of Credit or any
acts or omissions of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all respects invalid,
insufficient, fraudulent or forged; (c) payment by such Issuing Bank against presentation of documents that do not strictly comply with the terms of a Letter of Credit, including failure of any documents to bear any reference or adequate reference
to the Letter of Credit; or (d) any other circumstances whatsoever in making or failing to make payment under any Letter of Credit, except that such Account Party shall have a claim against such Issuing Bank, and such Issuing Bank shall be liable to
such Account Party, to the extent of any direct, but not consequential, damages suffered by such Account Party that such Account Party proves were caused by (i) such Issuing Bank’s willful misconduct or gross negligence as determined in a
final, non-appealable judgment by a court of competent jurisdiction in determining whether documents presented under any Letter of Credit comply with the terms of the Letter of Credit or (ii) such Issuing Bank’s willful failure to make lawful
payment under a Letter of Credit after the presentation to it of a draft and certificates strictly complying with the terms and conditions of the Letter of Credit. In furtherance and not in limitation of the foregoing, the Issuing Banks may accept
documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary. 
  

9.10 Confidentiality. Neither any Agent nor any Bank shall disclose any Confidential Information to any Person without the consent of the
Parent, other than (a) to such Agent’s or such Bank’s Affiliates and their officers, directors, employees, agents and advisors and to actual or prospective Eligible Assignees and participants, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) as requested or required by any state, federal or foreign authority or examiner regulating such Bank or pursuant to any request of any self-regulatory body having or claiming authority
to regulate or oversee any aspect of a Bank’s business of that of any of its Affiliates and (d) to any rating agency when required by it, provided that, prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties received by it from such Bank. Notwithstanding anything herein to the contrary, the information subject to this Section 9.10 shall not include, and the
Administrative Agent and each Bank may disclose to any and all Persons, without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in each case, within the meaning of Treasury
Regulation Section 1.6011-4) of the transactions contemplated hereby or by any of the other Loan Documents and all materials of any kind (including opinions or other tax analyses) that are provided to the Administrative Agent or such Bank relating
to such tax treatment and tax structure (it being 

  

 68 

 
understood that this authorization is retroactively effective to the commencement of the first discussions between or among any of the parties regarding the
transactions contemplated hereby or by any of the other Loan Documents); provided that with respect to any document or similar item that in either case contains information concerning such tax treatment or tax structure as well as other
information, this sentence shall only apply to such portions of the document or similar item that relate to such tax treatment or tax structure. 
  
 9.11 Jurisdiction, Etc. 
  
 (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New
York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any of the other Loan Documents to
which it is a party, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such
New York State court or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any of the other Loan Documents in the courts of any
jurisdiction. 
  
 (b) Each of the parties hereto irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of the
other Loan Documents to which it is a party in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court. 
  
 (c) Each of the Account
Parties hereby irrevocably appoints Mayer, Brown, Rowe & Maw LLP, with offices on the Effective Date at 1675 Broadway, New York, New York, 10019, USA as its agent to receive, accept and acknowledge for and on its behalf services of any and all
legal process, summons, notices and documents which may be served in any such action or proceeding. If for any reason such agent shall cease to be available to act as such, the Account Parties agree to promptly designate a new agent satisfactory to
the Administrative Agent in the Borough of Manhattan, The City of New York, to receive, accept and acknowledge for and on its behalf service of any and all legal process, summons, notices and documents which may be served in any such action or
proceeding pursuant to the terms of this Section 9.11. In the event that any Borrower shall fail to designate such new agent, service of process in any such action or proceeding may be made on such Account Party by the mailing of copies
thereof by express or overnight mail or courier, postage prepaid, to such Account Party at its address set forth opposite its signature below. 
  
 9.12 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 
  

 69 

 9.13 Waiver of Jury Trial. Each of the Account Parties, the Agents and the Banks irrevocably
waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Loan Documents, the Advances or the actions of any Agent or any Bank in the
negotiation, administration, performance or enforcement thereof. 
  
 9.14 Disclosure of Information. Each Account Party agrees and consents to the Administrative Agent’s disclosure of information relating to this transaction to Gold Sheets and other similar bank trade publications.
Such information will consist of deal terms and other information customarily found in such publications. The Parent shall have the right to review and approve any such disclosure made by the Administrative Agent before such disclosure is made (such
approval not to be unreasonably withheld). 
  
 9.15 Certain
Effective Date Matters. Upon the Effective Date, (i) the Existing Reimbursement Agreement shall be deemed amended and restated in accordance with the terms of this Agreement, and (ii) any bank or financial institution party to the
Existing Reimbursement Agreement that is not a Bank under this Agreement shall be released from all of its obligations under the Existing Reimbursement Agreement and shall have no obligations under this Agreement. 
  
 9.16 No Novation. The terms and conditions of the Existing
Reimbursement Agreement are amended as set forth in, and restated in their entirety and superseded by, this Agreement. Nothing in this Agreement shall be deemed to be a novation of any of the obligations and liabilities existing under the Existing
Reimbursement Agreement. Notwithstanding any provision of this Agreement or any other Loan Document or instrument executed in connection herewith, the execution and delivery of this Agreement and the incurrence of obligations and liabilities
hereunder shall be in substitution for, but not in payment of, the obligations and liabilities owed by the Borrower under the Existing Reimbursement Agreement. From and after the Closing Date, each reference to the “Agreement”,
“Reimbursement Agreement” or other reference originally applicable to the Existing Reimbursement Agreement contained in any Loan Document shall be a reference to this Agreement, as amended, supplemented, restated or otherwise modified from
time to time. 
  
 [Remainder of page intentionally left blank]

  

 70 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

	
	ACE LIMITED
	The Common Seal of ACE Limited was hereunto affixed in the presence of:
	
	 
	Authorized Officer
	
	 
	Authorized Officer
	
	ACE BERMUDA INSURANCE LTD.
	The Common Seal of ACE Bermuda Insurance Ltd. was hereunto affixed in the presence of:
	
	 
	Authorized Officer
	
	 
	Authorized Officer
	
	ACE TEMPEST LIFE REINSURANCE LTD.
	The Common Seal of ACE Tempest Life Reinsurance Ltd. was hereunto affixed in the presence of:
	
	 
	Authorized Officer
	
	 
	Authorized Officer

  
 (signatures
continued) 
  
 Signature Page to Unsecured Reimbursement Agreement 
  

	
	ACE TEMPEST REINSURANCE LTD.
	The Common Seal of ACE Tempest Reinsurance Ltd. was hereunto affixed in the presence of:
	
	 
	Authorized Officer
	
	 
	Authorized Officer
	
	 Address for each Account Party:
 ACE Global Headquarters
 17 Woodbourne Avenue
 Hamilton HM08 Bermuda
 Telecopy: (441) 296-0087

  
 (signatures
continued) 
  
 Signature Page to Unsecured Reimbursement Agreement 
  

			
	WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent, as Issuing Bank and as an Initial Bank
		
	By:	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	BANK OF AMERICA, N.A., as Syndication Agent and as an Initial Bank
		
	By:	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	BARCLAYS BANK, PLC, as a Co-Documentation Agent, as an Issuing Bank and as an Initial Bank
		
	By:	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	CITIBANK, N.A., as a Co-Documentation Agent, as an Issuing Bank and as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	JPMORGAN CHASE BANK, N.A., as a Co-Documentation Agent and as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	DEUTSCHE BANK AG, NEW YORK BRANCH, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	HSBC BANK USA, NATIONAL ASSOCIATION, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	ING BANK N.V., LONDON BRANCH, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	THE ROYAL BANK OF SCOTLAND PLC (acting as agent for NATWEST BANK PLC), as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	ABN AMRO BANK, N.V., as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	KEYBANK NATIONAL ASSOCIATION, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	STATE STREET BANK AND TRUST COMPANY, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	BNP PARIBAS, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	THE BANK OF TOKYO-MITSUBISHI, LTD. NEW YORK BRANCH, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	COMERICA BANK, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	LLOYDS TSB BANK PLC, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	MELLON BANK, N.A., as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	NATIONAL AUSTRALIA BANK LIMITED, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	NATIONAL CITY BANK, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	ROYAL BANK OF CANADA, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

			
	THE BANK OF N.T. BUTTERFIELD & SON LIMITED, as an Initial Bank
		
	 By:
	 	 
		
	 Title:
	 	 

  
 Signature Page to Unsecured
Reimbursement Agreement 
  

 SCHEDULE I 
  

LC COMMITMENT AMOUNTS 
  

				
	 Wachovia Bank, National Association
	  	$	79,970,000
	 Bank of America, N.A.
	  	$	80,000,000
	 Barclays Bank PLC
	  	$	66,670,000
	 CitiBank, N.A.
	  	$	66,670,000
	 JPMorgan Chase Bank, N.A.
	  	$	66,670,000
	 The Royal Bank of Scotland plc
	  	$	66,670,000
	 Deutsche Bank AG, New York Branch
	  	$	56,670,000
	 HSBC Bank USA, National Association
	  	$	56,670,000
	 ING Bank N.V., London Branch
	  	$	56,670,000
	 ABN AMRO Bank, N.V.
	  	$	43,330,000
	 KeyBank National Association
	  	$	43,330,000
	 State Street Bank and Trust Company
	  	$	43,330,000
	 BNP Paribas
	  	$	43,330,000
	 Lloyds TSB Bank plc
	  	$	43,330,000
	 The Bank of Tokyo-Mitsubishi, Ltd. New York Branch
	  	$	26,670,000
	 Comerica Bank
	  	$	26,670,000
	 Mellon Bank, N.A.
	  	$	26,670,000
	 National Australia Bank Limited
	  	$	26,670,000
	 National City Bank
	  	$	26,670,000
	 Royal Bank of Canada
	  	$	26,670,000
	 The Bank of N.T. Butterfield & Son Limited
	  	$	26,670,000
	 	  	
	

	 Total
	  	$	1,000,000,000

  

 SCHEDULE II 
  
 EXISTING LETTERS OF CREDIT 
  
 (see attached) 
  

 SCHEDULE 4.01(B) 
  
 SUBSIDIARIES 
  

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 ACE Limited
	  	Cayman Islands	  	Publicly held	  	Bermuda, holding company
	 ACE Bermuda Insurance Ltd.
	  	Bermuda	  	100%	  	Bermuda, insurance, reinsurance, general and long term; Mexico, reinsurance
	 ACE PCC Insurance Limited
	  	Guernsey	  	100%	  	Guernsey, protected cell rent-a-captive business
	 Paget Reinsurance International Ltd.
	  	Bermuda	  	100%	  	Bermuda, insurance/reinsurance
	 ACE Capital Title Reinsurance Company
(EI# 06-1434264, NAIC# 50028, NY)
	  	New York	  	100%	  	CA, MI, NY, TX, title insurance/reinsurance
	 Oasis Investments Limited
	  	Bermuda	  	67%	  	Bermuda, Investment Holding
	 Oasis Investments 2 Ltd.
	  	Bermuda	  	67%	  	Bermuda, holding company
	 ACE Financial Solutions International, Ltd.
	  	Bermuda	  	100%	  	Bermuda, insurance management
	 ACE European Markets Reinsurance Limited
	  	Ireland	  	100%	  	Ireland, general and life reinsurance
	 ACE European Markets Insurance Limited
	  	Ireland	  	100%	  	EEA/Europe, direct non-life insurance, UK branch
	 Corporate Officers & Directors Assurance Ltd.
	  	Bermuda	  	100%	  	Bermuda, insurance
	 Oasis Real Estate Company Ltd.
	  	Bermuda	  	100%	  	Bermuda, investment holding
	 Scarborough Property Holdings Ltd.
	  	Bermuda	  	40%	  	Bermuda, investment holding
	 Sovereign Risk Insurance Limited
	  	Bermuda	  	50%	  	Bermuda, insurance agent
	 Tripar Partnership
	  	Bermuda	  	 98%
 2% (CODA)
	  	Bermuda, investment holding
	 ACE Realty Holdings Limited
	  	Bermuda	  	100%	  	Bermuda, investment holding

  

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 Oasis Personnel Limited
	  	Cayman Islands	  	100%	  	Cayman Islands, general services
	 Shipowners Insurance and Guaranty Co. Limited
	  	Bermuda	  	 10% Series A
 8% Series B
	  	Bermuda, insurance
	 Intrepid Re Holdings Limited
	  	Bermuda	  	38.5%	  	Bermuda, holding
	 Intrepid Re Limited
	  	Bermuda	  	100%	  	Bermuda, Reinsurance
	 Freisenbruch-Meyer Insurance Ltd.
	  	Bermuda	  	40%	  	Bermuda, local and commercial insurance
	 Freisenbruch-Meyer Insurance Services Ltd.
	  	Bermuda	  	40%	  	Bermuda, local and commercial insurance
	 Assured Guaranty Ltd. (formerly AGC Holdings Limited)
	  	Bermuda	  	35% (remaining 65% is publicly held)	  	Bermuda, holding company
	 Assured Guaranty Re International Ltd. (formerly ACE Capital Re International Ltd.)
	  	Bermuda	  	100%	  	Bermuda, insurance/reinsurance, general and long term
	 Assured Guaranty Barbados Holdings Ltd. (formerly ACE KRE Holdings Limited)
	  	Barbados	  	100%	  	Barbados, investment holding
	 Assured Guaranty Overseas US Holdings Inc. (formerly ACE Capital Re USA Holdings Incorporated)
	  	Delaware	  	100%	  	Delaware, investment holding
	 Assured Guaranty Re Overseas Ltd. (formerly ACE Capital Re Overseas Ltd.)
	  	Bermuda	  	100%	  	Bermuda, insurance/reinsurance, general and long term
	 Assured Guaranty Mortgage Insurance Company (formerly ACE Capital Mortgage Reinsurance Co.) (EI# 06-1384770, NAIC# 10021, NY)
	  	New York	  	100%	  	New York, DC, mtg. guaranty insurance/reinsurance
	 AG Intermediary Inc. (formerly ACE Capital Re Inc.)
	  	New York	  	100%	  	New York, reinsurance intermediary
	 Assured Guaranty Finance Overseas Ltd. (formerly ACE Finance Overseas Limited)
	  	United Kingdom	  	100%	  	 
	 Assured Guaranty US Holdings Inc.
	  	Delaware	  	100%	  	Delaware, holding company
	 AG Financial Products Inc. (formerly AGR Financial Products Inc.)
	  	USA (Delaware)	  	100%	  	Delaware, financial products
	 Assured Guaranty Corp. (formerly ACE Guaranty Corp.) (EI#52 - 1533088, NAIC #30180, MD)
	  	Maryland	  	100%	  	US, insurance company

  

 3 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 Assured Guaranty (UK) Ltd. (formerly ACE Guaranty (UK) Ltd.)
	  	United Kingdom	  	100%	  	UK, applying for license to be financial guaranty insurer
	 ACE Risk Assurance Company (EI# 13-4027591, NAIC #10943, MD)
	  	Maryland	  	100%	  	Maryland, reinsurance
	 ACE Global Markets Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Group Holdings Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Tarquin
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Capital V Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member; capital provider
	 ACE Leadenhall Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Underwriting Agencies Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s managing agency
	 ACE Trustees Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE London Group Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Capital Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member
	 ACE Capital III Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member
	 ACE Capital IV Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member; capital provider
	 ACE London Holdings Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE Capital II Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member
	 ACE London Investments Limited
	  	United Kingdom	  	100%	  	UK, investment holding
	 ACE London Aviation Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s managing agent
	 ACE London Underwriting Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s managing agent
	 ACE Underwriting Services Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s service company
	 AGM Underwriting Limited
	  	United Kingdom	  	100%	  	UK, dormant
	 ACE London Services Limited
	  	United Kingdom	  	100%	  	UK, service company
	 ACE Capital VI Limited
	  	United Kingdom	  	100%	  	UK, Lloyd’s corporate member
	 ACE UK Limited
	  	United Kingdom	  	77%	  	UK, investment holding

  

 4 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 ACE UK Holdings Limited
	  	United Kingdom	  	100%	 	UK, investment holding
	 ACE (MI) Limited
	  	United Kingdom	  	100%	 	UK, dormant
	 ACE (MS) Limited
	  	United Kingdom	  	100%	 	UK, dormant
	 ACE UK Underwriting Limited
	  	United Kingdom	  	100%	 	Lloyd’s managing agent
	 ACE (PM) Limited
	  	United Kingdom	  	100%	 	UK, investment holding
	 ACE UK Limited
	  	United Kingdom	  	23%	 	UK, investment holding
	 ACE Services Limited
	  	Cayman Islands	  	100%	 	Cayman Islands, general services
	 ACE Holdings (Gibraltar) Limited
	  	Gibraltar	  	100%	 	Gilbraltar, Bermuda permit, investment holding
	 ACE Gibraltar Limited
	  	Gibraltar	  	51%	 	Gilbraltar, insurance intermediary
	 ACE-ii Limited
	  	United Kingdom	  	100%	 	dormant, to become internet company
	 ACE-ii (Gibraltar) Limited
	  	Gibraltar	  	100%	 	dormant,
	 ACE Underwriting Services (Gibraltar) Limited
	  	Gibraltar	  	100%	 	dormant,
	 Arles Services Limited
	  	Gibraltar	  	100%	 	dormant,
	 CGA Group Limited
	  	Bermuda	  	18.20%	 	Bermuda investment holding
	 CGA Investment Management, Inc.
	  	USA (Delaware)	  	100%	 	USA, investment
	 Commercial Guaranty Assurance Ltd.
	  	Bermuda	  	100%	 	Bermuda, insurance
	 Oasis Insurance Services Ltd.
	  	Bermuda	  	100%	 	Bermuda, general services
	 ACE Tempest Life Reinsurance Ltd.
	  	Bermuda	  	100%	 	Bermuda, insurance, reinsurance, general and long term (life, health, annuities)
	 ACE Tempest Reinsurance Ltd.
	  	Bermuda	  	100%	 	Bermuda, insurance/reinsurance, long term; Puerto Rico, reinsurance
	 Oasis Investments Limited
	  	Bermuda	  	33%	 	Bermuda, investment holding
	 Oasis Investments 2 Ltd.
	  	Bermuda	  	33%	 	Bermuda, holding company
	 St. George Holdings Ltd
	  	Cayman Islands	  	10.71%	 	Cayman Islands, investment holding

  

 5 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 St. George Investments Ltd.
	  	Cayman Islands	  	100%	 	Cayman Islands, investment holding
	 ACE INA Holdings Inc.
	  	USA (Delaware)	  	20%	 	USA, investment holding
	 ACE Prime Holdings Inc.
	  	USA (Delaware)	  	100%	 	USA, investment holding
	 ACE INA Holdings Inc.
	  	USA (Delaware)	  	80%	 	USA, investment holding
	 ACE Seguros S.A.
	  	Argentina	  	99.35%	 	Argentina, Insurance
	 Huatai Insurance Company of China, Limited
	  	China	  	6.129%
10% (ACE Tempest
Reinsurance Ltd.)
6% (ACE US
Holdings, Inc.)	 	China, property and casualty insurer
	 ACE Seguradora S.A.
	  	Brazil	  	99.9%
0.1% (ACE Prime
Holdings Inc.)	 	Brazil, insurance
	 Servicios ACE INA S.A. de C.V.
	  	Mexico	  	99.99%
.00002% (ACE Prime
Holdings Inc.)	 	Mexico, service company
	 ACE Tempest Re USA, Inc.
	  	USA (Connecticut)	  	100%	 	CT, NJ, NY, OH, PA, SC, TX, reinsurance intermediary manager
	 INA Corporation
	  	USA (Pennsylvania)	  	100%	 	USA, investment holding company
	 ACE INA Properties, Inc.
	  	USA (Delaware)	  	100%	 	USA, holding company
	 Conference Facilities, Inc.
	  	USA (Pennsylvania)	  	100%	 	USA, owns & operates corporate facilities
	 INA Tax Benefits Reporting, Inc.
	  	USA (Delaware)	  	100%	 	USA, tax info & 3rd party reporting
	 INA Financial Corporation
	  	USA (Delaware)	  	100%	 	USA, investment holding
	 Brandywine Holdings Corporation
	  	USA (Delaware)	  	100%	 	USA, holding company

  

 6 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 Brandywine Run-Off Services, Inc.
	  	USA (Delaware)	  	100%	 	USA, management company for 1792
	 Assurex Development Corporation
	  	USA (Ohio)	  	11.011%	 	USA, provides loans to insurance agents
	 Cravens, Dargan & Company, Pacific Coast
	  	USA (Delaware)	  	100%	 	USA, managing general agency
	 Cravens, Dargan & Company, Pacific Coast of Illinois, Inc.
	  	USA (Illinois)	  	100%	 	USA, managing general agency
	 Century Indemnity Company
(EI# 05-6105395, NAIC #20710, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance
	 Century Reinsurance Company
(EI# 06-0988117, NAIC #35130, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, reinsurance
	 ACE American Reinsurance Company
(EI# 23-1740414, NAIC#22705, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, reinsurance
	 Brandywine Reinsurance Company S.A.-N.V.
	  	Belgium	  	100%	 	Belgium, reinsurance
	 The 1792 Company
	  	USA (Delaware)	  	100%	 	USA, (former underwriting member of New York Insurance Exchange)
	 Century International Reinsurance Company Ltd.
	  	Bermuda	  	100%	 	Bermuda, insurance & reinsurance
	 INA Holdings Corporation
	  	USA (Delaware)	  	100%	 	USA, holding company
	 INATrust, fsb
	  	Chartered by Office of Thrift Supervision	  	100%	 	USA, savings bank
	 INA Reinsurance Company, Ltd.
	  	Bermuda	  	100%	 	Bermuda, reinsurance
	 ACE INA Financial Institution Solutions, Inc.
	  	USA (Delaware)	  	100%	 	 USA, floodplain determination &
 other services to
financial institutions

	 American Lenders Facilities, Inc.
	  	USA (California)	  	100%	 	USA, collection & loan servicing for third parties
	 ESIS, Inc.
	  	USA (Pennsylvania)	  	100%	 	 USA, markets risk management
 Programs

  

 7 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 NewMarkets Insurance Agency, Inc.
	  	USA (Delaware)	  	100%	 	USA, managing general agency
	 ACE INA Excess and Surplus Insurance Services, Inc.
	  	USA (Georgia)	  	100%	 	USA, excess & surplus lines broker
	 ACE INA Excess and Surplus Insurance Services, Inc.
	  	USA (Pennsylvania)	  	100%	 	USA, excess & surplus lines broker
	 ACE INA Excess and Surplus Insurance Services, Inc.
	  	USA (California)	  	100%	 	USA, excess & surplus lines broker
	 ACE INA Excess and Surplus Insurance Services, Inc.
	  	USA (Illinois)	  	100%	 	USA, excess & surplus lines broker
	 Excess and Surplus Insurance Services, Inc.
	  	USA (Texas)	  	100%	 	USA, managing general agency
	 ACE Financial Solutions, Inc.
	  	USA (Delaware)	  	100%	 	USA, premium finance company
	 Oasis US Inc.
	  	USA (Delaware)	  	100%	 	USA, general services
	 ACE Risk Solutions, Inc.
	  	USA (NewYork)	  	100%	 	USA, reinsurance intermediary
	 Indemnity Insurance Company of North America (EI# 06-1016108, NAIC #43575, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, Puerto Rico, USVI, insurance
	 ACE Indemnity Insurance Company
(EI#92-0040526, NAIC #10030, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance
	 Allied Insurance Company (EI# 23-2021364, NAIC #36528, CA)
	  	USA (California)	  	100%	 	USA, insurance
	 ACE American Insurance Company (EI#95-2371728, NAIC# 22667, PA)
	  	USA (Pennsylvania)	  	100%	 	 USA, Korea, Puerto Rico USVI,
 Guam, Bermuda
permit,
 Taiwan (life), insurance

	 Pacific Employers Insurance Company (EI#95-1077060, NAIC# 22748, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, USVI, insurance
	 ACE Insurance Company of Texas (EI# 74-1480965, NAIC #22721, 22920, TX)
	  	USA (Texas)	  	100%	 	USA, insurance

  

 8 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 Illinois Union Insurance Company (EI# 36-2759195, NAIC #27960, IL)
	  	USA (Illinois)	  	100%	 	USA, surplus lines insurer
	 Rain and Hail Insurance Service Incorporated
	  	USA (Iowa)	  	20%	 	 
	 INAMAR Insurance Underwriting Agency, Inc.
	  	USA (New Jersey)	  	100%	 	USA, insurance agency
	 INAMAR Insurance Underwriting Agency, Inc. of Massachusetts
	  	USA (Massachusetts)	  	100%	 	USA, general agency
	 INAMAR Insurance Underwriting Agency, Inc. of Texas
	  	USA (Texas)	  	100%	 	USA, general agency
	 INAMAR Insurance Underwriting Agency, Inc. of Ohio
	  	USA (Ohio)	  	100%	 	USA, general agency
	 Insurance Company of North America (EI# 23-0723970, NAIC #22713, PA)
	  	USA (Pennsylvania)	  	100%	 	 USA, Guam, Northern Mariana
 Islands, Philippines, Puerto
Rico,
 Taiwan (p/c), insurance

	 Bankers Standard Insurance Company (EI# 75-1320184, NAIC #18279, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance
	 Bankers Standard Fire and Marine Company (EI#75-6014863, NAIC #20591, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance
	 ACE Property and Casualty Insurance Company (EI# 06-0237820, NAIC, #20699, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, Puerto Rico, insurance
	 ACE Employers Insurance Company (EI# 23-2137343, NAIC #38741, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance
	 ACE Insurance Company of Ohio (EI#23-1859893, NAIC #22764, OH)
	  	USA (Ohio)	  	100%	 	USA, insurance
	 INA Surplus Insurance Company (EI# 52-1208598, NAIC #42072, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, reinsurance
	 ACE Fire Underwriters Insurance Company (EI# 06-6032187, NAIC #20702, PA)
	  	USA (Pennsylvania)	  	100%	 	USA, insurance

  

 9 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 Atlantic Employers Insurance Company (EI# 23-2173820, NAIC #38938, NJ)
	  	USA (New Jersey)	  	100%	 	USA, insurance
	 Cover-All Technologies, Inc.
	  	USA (Delaware)	  	7.41%	 	USA, develop software products for insurance industry
	 ALIC, Incorporated
	  	USA (Texas)	  	100%	 	 USA, general agency &
 attorney-in-fact for ACE
Lloyds

	 ACE American Lloyds Insurance Company (Sponsored Lloyds Association) (EI# 75-1365570, NAIC #18511, TX)
	  	USA (Texas)	  	100%	 	USA, Lloyds Association
	 ACE Insurance Company of Illinois (EI# 36-2709121, NAIC #22691, IL)
	  	USA (Illinois)	  	100%	 	USA, insurance
	 ACE Insurance Company of the Midwest (EI# 06-0884361, NAIC #26417, IN)
	  	USA (Indiana)	  	100%	 	USA, insurance
	 ATR USA, LLC
	  	USA (Connecticut)	  	100%	 	USA, reinsurance intermediary manager
	 ACE Structured Products, Inc. (formerly INAPRO, Inc.)
	  	USA (Delaware)	  	100%	 	USA, insurance management services & underwriting
	 Recovery Services International, Inc.
	  	USA (Delaware)	  	100%	 	 USA, subrogation, collection &
 recovery
services

	 RSI Health Care Recovery, Inc.
	  	USA (Delaware)	  	100%	 	 USA, subrogation, collection &
 recovery
services

	 ACE INA International Holdings, Ltd.
	  	USA (Delaware)	  	100%	 	 USA, international insurance &
 financial holding
company

	 ACE Insurance S.A.
	  	Macau	  	99.94%	 	Macau, insurance
	 ACE CIIC Holdings Limited
	  	Cayman Islands	  	100%	 	Cayman Islands, holding company
	 ACE CIIC Insurance Company Egypt S.A.E.
	  	Egypt	  	51%	 	Egypt, insurance

  

 10 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 ACE European Holdings Limited
	  	United Kingdom	  	100%	  	United Kingdom, holding company
	 ACE Life Insurance Company S.A.E.
	  	Egypt	  	99%	  	Egypt, life insurance
	 ACE Synergy Insurance Berhad
	  	Malaysia	  	51%	  	Malaysia, insurance
	 ACE Insurance S.A.-N.V.
	  	Belgium	  	 .0523%
 99.9477% (ACE INA
 Overseas Holdings, Inc.)
	  	Europe, insurance/reinsurance
	 ACE Seguros S.A.
	  	Chile	  	 78.104% (AIIH) 12.235% (AFIA
 Finance Corporation, Agencia en Chile)
 9.095% - (AFIA Finance Corp. Chile Limitada)
	  	Chile, insurance
	 ACE Seguros S.A.
	  	Colombia	  	99.958%	  	Colombia, insurance
	 ACE Seguros S.A.
	  	Ecuador	  	100%	  	Ecuador, insurance
	 ACE Seguros S.A.
	  	Mexico	  	99.9%	  	Mexico, insurance/assumed reinsurance
	 Brandywine Reinsurance Co. (UK) Ltd
	  	United Kingdom	  	100%	  	UK, reinsurance
	 ACE INA UK Limited
	  	United Kingdom	  	100%	  	UK, Greece, insurance
	 Eksupsiri Company Limited
	  	Thailand	  	 49%
 50.99% (Nam Ek)
	  	Thailand, holding company
	 ACE Life Assurance Co. Ltd.
	  	Thailand	  	 75%
 25%
(Oriental)
	  	Thailand, life insurance
	 Nam Ek Company Limited
	  	Thailand	  	49%	  	Thailand, holding company
	 Chilena Consolidata Seguros Generales, S.A.
	  	Chile	  	.65%	  	Chile, insurance
	 ACE Insurance Limited
	  	South Africa	  	100%	  	South Africa, insurance
	 ACE Insurance Limited
	  	New Zealand	  	100%	  	New Zealand, insurance/reinsurance
	 ACE International Management Corporation
	  	Pennsylvania	  	100%	  	Management Services
	 Cover Direct, Inc.
	  	USA (Delaware)	  	100%	  	 Japan, direct marketing service
 Company

  

 11 

							
	 Name

	  	 Jurisdiction of
Organization

	  	 Percentage
Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 Victoria Hall Company Limited
	  	Bermuda	  	20%	  	Bermuda, investment holding
	 ACE INA G.B. Holdings, Ltd
	  	USA (Delaware)	  	100%	  	Delaware, UK, insurance holding
	 ACE INA Services U.K. Limited
	  	United Kingdom	  	100%	  	UK, computer services for affiliates
	 INACAP Sociedad Anonima
	  	Nicaragua	  	100%	  	Nicaragua, holding company
	 INACAP Reaseguros, Sociedad Anonima
	  	Nicaragua	  	100%	  	Nicaragua, reinsurance broker
	 Century Inversiones, S.A.
	  	Panama	  	100%	  	Panama, reinsurance administrator
	 Arabia ACE Insurance Company Limited E.C.
	  	Bahrain	  	25%	  	Saudi Arabia, insurance & reinsurance
	 ACE Insurance Limited
	  	Australia	  	100%	  	Australia, Pakistan, Thailand, Solomon Islands, Vanuatu, insurance & reinsurance
	 ACE INA Superannuation Pty. Limited
	  	Australia	  	100%	  	Australia, corporate trustee for ACE Australia superannuation plan
	 ACE Insurance Limited
	  	Pakistan	  	100%	  	Pakistan, insurance
	 ACE INA Overseas Insurance Company Ltd.
	  	Bermuda	  	100%	  	Bermuda, insurance/reinsurance, general and long term
	 ACE Insurance Limited
	  	Singapore	  	100%	  	Singapore, insurance
	 ACE Insurance
	  	Japan	  	100%	  	Japan, insurance/reinsurance
	 ACE Songai Service Kabushikigaisha
	  	Japan	  	100%	  	Japanese service company
	 ACE INA Marketing Group C.A.
	  	Venezuela	  	100%	  	Venezuela, services & direct marketing
	 ACE INA Overseas Holdings, Inc.
	  	USA (Delaware)	  	100%	  	Delaware, holding company
	 INACAN Holdings, Ltd.
	  	Canada	  	100%	  	Canada, insurance holding
	 ACE INA Insurance
	  	Canada	  	100%	  	Canada, insurance & reinsurance

  

 12 

							
	 Name

	  	 Jurisdiction of
Organization

	  	 Percentage
Ownership

	  	 Jurisdictions in which
Authorized
 and Type of Business

	 ACE INA Life Insurance
	  	Canada	  	100%	  	Canada, life insurance
	 ACE Insurance S.A.-N.V.
	  	Belgium	  	 99.9477%
 .0523% (AIIH)
	  	Europe, insurance/reinsurance
	 ACE Insurance Company (EI# 66-0437305, NAIC #30953, PR)
	  	Puerto Rico	  	100%	  	Puerto Rico, insurance
	 ACE Insurance Agency, Inc.
	  	Puerto Rico	  	100%	  	Puerto Rico, general agent for ACE American Insurance Company
	 ACE Insurance Limited
	  	Hong Kong	  	100%	  	Hong Kong, insurance
	 ACE Risk Management International Ltd. (formerly ACE INA Bermuda Insurance Managers Ltd.)
	  	Bermuda	  	100%	  	 Bermuda, management services for
 non-affiliates

	 DELPANAMA S.A.
	  	Panama	  	100%	  	Panama, holding company
	 INAMEX S.A.
	  	Mexico	  	100%	  	Mexico, reinsurance broker
	 Maritime General Ins. Company Ltd
	  	Trinidad	  	8.06%	  	Trinidad insurance
	 Oriental Equity Holdings Limited
	  	British Virgin Islands	  	100%	  	BVI, holding company
	 ACE Life Assurance Co. Ltd.
	  	Thailand	  	 25%
 75%
(Eksupsiri)
	  	Thailand, life insurance
	 AFIA Finance Corporation
	  	USA (Delaware)	  	100%	  	Delaware, insurance holding
	 AFIA Venezolana C.A.
	  	Venezuela	  	100%	  	Venezuela, inactive claims & settling agent
	 ACE ICNA Italy Societa a Responsabilita Limitata
	  	Italy	  	 99.7%
 0.3%
(AIIH)
	  	Italy, legal representative for CIGNA Insurance Company of Europe, S.A.-N.V.
	 Siam Liberty Company Limited
	  	Thailand	  	 49% (AFC)
 45% (Nam EK)
	  	Thailand, broker, surveyor & claims settling agency
	 ACE Servicios, S.A.
	  	Argentina	  	100%	  	Argentina, service company
	 AFIA Finance Corp. Chile Limitada
	  	Chile	  	 98%
 2%
(AIIH)
	  	Chile, claims & settling agent
	 Fire, Equity and General Insurance Company Limited
	  	Nigeria	  	6.25%	  	Nigeria, insurance
	 Inversiones Continental S.A. de C.V.
	  	Honduras	  	1.29%	  	Honduras, insurance holding

  

 13 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 PT. ACE INA Insurance
	  	Indonesia	  	80%	 	Indonesia, insurance
	 PT. Adi Citra Mandiri
	  	Indonesia	  	45%	 	Indonesia, service company
	 RIYAD Insurance Co. Ltd.
	  	Bermuda	  	80%	 	Bermuda, insurance
	 Safire Private Ltd.
	  	Singapore	  	100%	 	Singapore, management & computer service bureau
	 AFIA (INA) Corporation, Limited
	  	USA (Delaware)	  	100%	 	Delaware, holding company
	 AFIA
	  	 Unincorporated
 Association
	  	60%	 	Association for international insurance
	 AFIA (ACE) Corporation, Limited
	  	USA (Delaware)	  	100%	 	Delaware, holding company
	 AFIA
	  	 Unincorporated
 Association
	  	40%	 	Association for international insurance
	 Compania Anonima de Seguros “AVILA”
	  	Venezuela	  	0.6%	 	Venezuela, insurance
	 INAVEN, C.A. “Venezuela”
	  	Venezuela	  	100%	 	Venezuela, corporation
	 La Positiva Compania Nacional de Seguros Sociedad Anonima
	  	Peru	  	7.6869%	 	Peru, insurance
	 Reaseguradora Nuevo Mundo S.A.
	  	Panama	  	3.7246%	 	Panama, reinsurance
	 Amazones Compania Anonima de Seguros
	  	Ecuador	  	1.423%	 	Ecuador, insurance
	 ACE US Holdings, Inc.
	  	USA (Delaware)	  	100%	 	USA, investment holding
	 ACE Financial Services International, Inc. (f/k/a ACE Financial Solutions International, Inc.)
	  	USA (Delaware)	  	100%	 	USA, investment holding
	 ACE USA, Inc.
	  	USA (Delaware)	  	100%	 	USA, investment holding
	 ASI Administrative Services Inc. (formerly ASI Administrative Services Holdings Inc. and CRC Creditor Resources Canada Ltd.)
	  	Canada (Yukon)	  	100%	 	Canada, warranties business
	 Industrial Underwriters Insurance Company (EI# 75-6015738, NAIC# 21075, TX)
	  	USA (Texas)	  	100%	 	USA, insurance
	 Rhea International Marketing (L), Inc.
	  	Malaysia	  	60%	 	Malaysia, general services
	 Westchester Fire Insurance Company (EI# 13-5481330, NAIC# 21121, NY)
	  	 USA
 (New
York)
	  	100%	 	USA, Bermuda permit, insurance
	 Westchester Surplus Lines Insurance Company (EI# 58-2139927, NAIC #10172, GA)
	  	USA (Georgia)	  	100%	 	USA, insurance
	 Westchester Specialty Services, Inc.
	  	USA (Florida)	  	100%	 	USA, warranties

  

 14 

							
	 Name

	  	 Jurisdiction of
 Organization

	  	 Percentage
 Ownership

	 	 Jurisdictions in which
Authorized
 and Type of Business

	 Westchester Specialty Insurance Services, Inc.
	  	USA (Nevada)	  	100%	 	USA, insurance services, brokering, warranties
	 WDH Corporation
	  	USA (Ohio)	  	80%	 	USA, insurance services
	 Dimension Service Corporation
	  	USA (Ohio)	  	80%	 	USA, warranties
	 Dimension Holdings Inc.
	  	USA (Ohio)	  	80%	 	USA, insurance services
	 ACE Financial Services Inc. (f/k/a Capital Re Corporation)
	  	USA (Delaware)	  	100%	 	Delaware, insurance holding company
	 Capital RE LLC
	  	Turks & Caicos	  	100%	 	Turks & Caicos, holding company
	 ACE (CR) Holdings
	  	United Kingdom	  	100%	 	UK, holding co
	 ACE Capital VII Limited
	  	United Kingdom	  	100%	 	UK, Lloyd’s capital vehicle
	 ACE (RGB) Holdings Limited
	  	United Kingdom	  	100%	 	UK, holding company
	 ACE (CIDR) Limited
	  	United Kingdom	  	100%	 	UK, Lloyd’s agency
	 Global Life Services Limited
	  	United Kingdom	  	100%	 	UK, Lloyd’s agency
	 Ridge Underwriting Agencies Limited
	  	United Kingdom	  	100%	 	UK, Lloyd’s agency
	 ACE Asset Management Inc.
	  	Delaware	  	100%	 	DE, Bermuda permit corporation
	 ACE (Barbados) Holdings Limited
	  	Barbados	  	100%	 	Barbados, holding company

  

 15 

 SCHEDULE 5.02(A) 
  
 LIENS 
  

	1.	Lien arising under a Subordination Agreement dated as of October 27, 1998 among ACE US Holdings, Inc., ACE Limited and The Chase Manhattan Bank (now JPMorgan Chase Bank, N.A.)
encumbering ACE US Holdings, Inc.’s rights under the Subordinated Loan Agreement dated as of October 27, 1998 among ACE US Holdings, Inc., ACE Bermuda Insurance Ltd. and United States Trust Company of New York, as trustee under the Indenture
dated October 27, 1998 of ACE US Holdings, Inc. 

  

	2.	Liens securing the Fourth Amendment and Restatement of Letter of Credit Facility Agreement dated November 15, 2004 among ACE Limited, ACE Bermuda Insurance Ltd., ACE Tempest
Reinsurance Ltd., certain other financial institutions and Citibank International plc, as Agent and Security Trustee. 

  

 EXHIBIT A 
  

FORM OF ASSIGNMENT AND ACCEPTANCE 
  
 ASSIGNMENT AND ACCEPTANCE dated as of
                        , 20     between
                                        
             (the “Assignor”) and
                                        
             (the “Assignee”), and [consented to and] accepted by Wachovia Bank, National Association, as administrative agent (the “Administrative
Agent”)[, and ACE Limited (the “Parent”)]. 
  
 W I T N E S S E T H 
  
 WHEREAS, this Assignment and Acceptance (the “Agreement”) relates to the Amended and Restated Reimbursement Agreement dated as of July 1,
2005 among the Parent and other Account Parties party thereto, the Assignor and the other Banks party thereto, the Syndication Agent party thereto and the Administrative Agent, providing for a $1,000,000,000 unsecured letter of credit facility for
the benefit of the Account Parties (as amended or otherwise modified from time to time, the “Reimbursement Agreement”); 
  
 WHEREAS, as provided under the Reimbursement Agreement, the Assignor has a commitment to participate in Letters of Credit and make Letter of Credit
Advances to the Account Parties in an aggregate principal amount at any time outstanding not to exceed $                    ; 
  
 WHEREAS, Letters of Credit with a total amount available for drawing
thereunder of $                     are outstanding at the date hereof; 
  
 WHEREAS, Letter of Credit Advances made to the Account Parties by the Assignor under the Reimbursement Agreement in the
aggregate principal amount of $                     are outstanding at the date hereof; and 
  
 WHEREAS, the Assignor proposes to assign to the Assignee all of the rights of
the Assignor under the Reimbursement Agreement and the other Loan Documents in respect of a portion of its LC Commitment Amount thereunder in an amount equal to
$                     (the “Assigned Amount”), together with a corresponding portion of its outstanding Letter of Credit
Participating Interest, Letter of Credit Participating Interest Commitment, LC Participation Obligations, Letter of Credit Exposure, and Letter of Credit Advances, if any, and the Assignee proposes to accept assignment of such rights and assume the
corresponding obligations from the Assignor on such terms. 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein, the parties hereto agree as follows: 
  
 1. Definitions. All capitalized terms not otherwise defined herein shall have the respective meanings set forth in the Reimbursement Agreement.

  

 2. Assignment. The Assignor hereby assigns and sells to the Assignee all of the rights of the
Assignor under the Reimbursement Agreement and the other Loan Documents to the extent of the Assigned Amount, and the Assignee hereby accepts such assignment from the Assignor and assumes all of the obligations of the Assignor under the
Reimbursement Agreement to the extent of the Assigned Amount, including the outstanding Letter of Credit Participating Interest Commitment and Letter of Credit Exposure, and the amount of the Letter of Credit Advances, if any, outstanding at the
date hereof. Upon the execution and delivery hereof by the Assignor, the Assignee[, the Administrative Agent and the Parent] and the payment of the amounts specified in Section 3 required to be paid on the date hereof (i) the Assignee shall, as of
the date hereof, succeed to the rights and be obligated to perform the obligations of a Bank under the Reimbursement Agreement with an LC Commitment Amount (in addition to any LC Commitment Amount theretofore held by it) equal to the Assigned
Amount, and (ii) the LC Commitment Amount of the Assignor shall, as of the date hereof, be reduced by a like amount and the Assignor shall be released from its obligations under the Reimbursement Agreement to the extent such obligations have been
assumed by the Assignee. The assignment provided for herein shall be without recourse to the Assignor. 
  
 3. Payments. As consideration for the assignment and sale contemplated in Section 2 hereof, the Assignee shall pay to the Assignor on the date
hereof the amount heretofore agreed between them.1 It is understood that commitment and Letter of Credit fees
accrued to the date hereof in respect of the Assigned Amount are for the account of the Assignor and such fees accruing from and including the date hereof are for the account of the Assignee. Each of the Assignor and the Assignee hereby agrees that
if it receives any amount under the Reimbursement Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party’s interest therein and shall
promptly pay the same to such other party. 
  
 4. [Consent of
the Administrative Agent and the Parent. Pursuant to the Reimbursement Agreement, this Agreement is conditioned upon the consent of the Administrative Agent and, so long as no Default has occurred and is continuing, the Parent. The execution of
this Agreement by the Administrative Agent and, if applicable, the Parent is evidence of this consent.] 
  
 5. Non-Reliance on Assignor. The Assignor makes no representation or warranty in connection with, and shall have no responsibility with respect to,
the solvency, financial condition or statements of the Account Parties or any of their respective Subsidiaries, or the validity and enforceability of the obligations of the Account Parties or any of their respective Subsidiaries in respect of any
Loan Document. The Assignee acknowledges that it has, independently and without reliance on the Assignor, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement and will continue to be responsible for making its own independent appraisal of the business, affairs and financial condition of the Account Parties and their respective Subsidiaries. 

	1	Amount should combine the principal amount of any Letter of Credit Advances made by the Assignor together with accrued interest and breakage compensation, if any, to
be paid by the Assignee, net of any portion of any upfront fee to be paid by the Assignor to the Assignee. It may be preferable in an appropriate case to specify these amounts generically or by formula rather than as a fixed sum.

  

 6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York. 
  
 7. Counterparts. This Agreement
may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  
 [Remainder of page intentionally left blank.] 
  

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their duly
authorized officers as of the date first above written. 
  

			
	[ASSIGNOR]
		
	By:	 	 
		
	Title:	 	 
	
	[ASSIGNEE]
		
	By:	 	 
		
	Title:	 	 
	
	[ACE LIMITED]
		
	By:	 	 
		
	Title:	 	 
	
	WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent
		
	By:	 	 
		
	Title:	 	]

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