Document:

EX-10.3

 EXHIBIT 10.3 

RECEIVABLES CONTRIBUTION AGREEMENT 

This RECEIVABLES CONTRIBUTION AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this
“Agreement”), dated as of March 18, 2021, is by and between Carvana Auto Receivables Trust 2021-P1, a Delaware statutory trust (the “Issuing Entity”), and Carvana Auto
Receivables Grantor Trust 2021-P1, a Delaware statutory trust (the “Grantor Trust”). 

AGREEMENTS 
 WHEREAS, on the
Closing Date, Carvana, LLC (the “Seller”) has sold automobile retail installment contracts and related rights to Carvana Receivables Depositor LLC (the “Depositor”). 

WHEREAS, the Depositor has sold such contracts and related rights to the Issuing Entity pursuant to the Receivables Transfer Agreement; 

WHEREAS, the Issuing Entity intends to contribute or otherwise transfer such contracts and related rights, or interests therein, to the
Grantor Trust pursuant to this Agreement in exchange for the Grantor Trust Certificate; 
 WHEREAS, the Grantor Trust intends to pledge such
contracts and related rights to Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), and the Issuing Entity will issue notes backed by the Grantor Trust Certificate pursuant to the Indenture, dated
as of the date hereof (as amended, modified or supplemented from time to time, the “Indenture”), among the Issuing Entity, the Grantor Trust, and the Indenture Trustee; and 

WHEREAS, Bridgecrest Credit Company, LLC, an Arizona limited liability company (the “Servicer”), is willing to service such
contracts in accordance with the terms of the Servicing Agreement, dated as of the date hereof, among the Issuing Entity, the Grantor Trust, the Backup Servicer and the Servicer. 

NOW, THEREFORE, in consideration of the mutual agreements and subject to the terms and conditions herein contained, each party agrees as
follows for the benefit of the other party: 
 ARTICLE I 

DEFINITIONS 
 Section 1.1
Definitions; Rules of Construction. Except as otherwise specified herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are defined in Part I of Appendix A to
the Receivables Purchase Agreement, dated as of the date hereof (the “Receivables Purchase Agreement”), among Carvana, LLC as the seller and Carvana Receivables Depositor LLC as the purchaser. All references herein to
“the Agreement” or “this Agreement” are to this Receivables Contribution Agreement as it may be amended, supplemented or modified from time to time, the exhibits and schedules hereto and the capitalized terms used herein, which
are defined in Part I of such Appendix A, and all references herein to Articles, Sections and Subsections are to Articles, Sections or Subsections of this Agreement unless otherwise specified. The rules of construction set forth in
Part II of such Appendix A shall be applicable to this Agreement. 

 ARTICLE II 

CONVEYANCE OF RECEIVABLES 

Section 2.1 Conveyance of Receivables. 

(a) On the Closing Date, the Issuing Entity hereby agrees to sell, transfer, assign, set over and otherwise convey to the Grantor Trust and the
Grantor Trust hereby agrees to purchase from the Issuing Entity, without recourse, all right, title and interest of the Issuing Entity in, to and under the following property, whether now existing or hereafter created or acquired (all of the
property described in this Section 2.1(a) being collectively referred to herein as the “Third Step Transferred Property”): 

(i) the Receivables and all instruments and all monies due or to become due or received by any Person in payment of any of the foregoing on or
after the Cutoff Date; 
 (ii) the Financed Vehicles securing such Receivables (including any such Financed Vehicles that have been
repossessed), any document or writing evidencing any security interest in any such Financed Vehicle and each security interest in each Financed Vehicle; 

(iii) the Receivable Files and the Servicer Files related to such Receivables; 

(iv) all rights to payment under all Insurance Policies with respect to the Financed Vehicles or the Obligors, including any monies collected
from whatever source in connection with any default of an Obligor or with respect to any such Financed Vehicle and any proceeds from claims or refunds of premiums on any Insurance Policy; 

(v) all guaranties, indemnities, warranties, insurance (and proceeds and premium refunds thereof) and other agreements or arrangements of
whatever character from time to time supporting or securing payment of the Receivables, whether pursuant to the related Contracts or otherwise; 

(vi) all rights to payment under all service contracts and other contracts and agreements associated with such Receivables; 

(vii) all Liquidation Proceeds related to any such Receivable received on or after the Cutoff Date; 

(viii) subject to the Transaction Documents and the Master Agency Agreement, all deposit accounts, monies, deposits, funds, accounts and
instruments relating to the foregoing (excluding payments or recoveries in respect of the Receivables received prior to the Cutoff Date); 

(ix) the Receivables Purchase Agreement and the Receivables Transfer Agreement, including the right of the Issuing Entity to cause the Seller
or the Depositor to repurchase Receivables under certain circumstances; 

  
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 (x) the proceeds of any and all of the foregoing; and 

(xi) all present and future claims, demands, causes of action and choses in action in respect of any of all of the foregoing and all payments
on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property; all accounts, general
intangibles, chattel paper, instruments, documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes all or part of or is included in the proceeds of any of the foregoing. 

(b) In connection with the purchase and sale of the Third Step Transferred Property hereunder, the Issuing Entity agrees, at its own expense,
(i) to annotate and indicate on its books and records that the Receivables were sold and transferred to the Grantor Trust pursuant to this Agreement, (ii) to deliver to the Grantor Trust (or its designee) all Collections on the
Receivables, if any, received on or after the Cutoff Date, and (iii) to deliver to the Grantor Trust an assignment in the form attached hereto as Exhibit A (the “Third Step Receivables Assignment”).

 (c) In consideration of the sale of the Receivables from the Issuing Entity to the Grantor Trust as provided herein, the Grantor Trust
shall deliver to, or upon the order of, the Issuing Entity the Grantor Trust Certificate (the “Purchase Price”). 

Section 2.2 Intent of the Parties. 

It is the intention of the parties that each conveyance hereunder of the Receivables and the other Third Step Transferred Property from the
Issuing Entity to the Grantor Trust as provided in Section 2.1 be, and be construed as, an absolute sale, without recourse, of the Receivables and other Third Step Transferred Property by the Issuing Entity to the Grantor
Trust. Furthermore, no such conveyance is intended to be a pledge of the Third Step Transferred Property by the Issuing Entity to the Grantor Trust to secure a debt or other obligation of the Grantor Trust. If, however, notwithstanding the intention
of the parties, the conveyance provided for in Section 2.1 is determined, for any reason, not to be an absolute sale, then the parties intend that this Agreement shall be deemed to be a “security agreement” within
the meaning of Article 9 of the UCC and the Issuing Entity hereby grants to the Grantor Trust a “security interest” within the meaning of Article 9 of the UCC in all of the Issuing Entity’s right, title and interest in and
to the Third Step Transferred Property, now existing and hereafter created or acquired, to secure a loan in an amount equal to Purchase Price and each of the Issuing Entity’s other payment obligations under this Agreement. 

  
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 ARTICLE III 

REPRESENTATIONS, WARRANTIES AND COVENANTS 

Section 3.1 Representations and Warranties of the Issuing Entity Regarding the Receivables. 

The Issuing Entity makes the following representations and warranties to the Grantor Trust regarding each Receivable as of the Closing Date,
which shall survive the sale, transfer and assignment of the Receivables and on which representations and warranties the Grantor Trust shall rely in acquiring the Receivables. The Issuing Entity further acknowledges that the Grantor Trust and its
permitted assignees rely on the representations and warranties of the Issuing Entity under this Agreement, the Depositor under the Receivables Transfer Agreement and of the Seller under the Receivables Purchase Agreement in accepting the Receivables
and executing and delivering the Grantor Trust Certificate. 
 (a) Receivables. Pursuant to
Section 2.1(a)(ix), the Issuing Entity assigns to the Grantor Trust all of its right, title and interest in, to and under the Receivables Purchase Agreement and the Receivables Transfer Agreement. Such assigned right, title
and interest includes the benefit of the representations and warranties that the Depositor made to the Issuing Entity pursuant to Section 3.1(b) of the Receivables Transfer Agreement and the benefit of the representations and warranties that
the Seller made to the Depositor pursuant to Section 3.1(b) and Section 3.1(c) of the Receivables Purchase Agreement. The Issuing Entity hereby represents and warrants to the Grantor Trust that the Issuing Entity has taken no action which
would cause such representations and warranties of the Depositor or the Seller to be false in any material respect as of the Closing Date. 

(b) Good Title. 
 (i)
Immediately prior to the conveyance of each Receivable and the related Third Step Transferred Property to the Grantor Trust pursuant to this Agreement and the Third Step Receivables Assignment, the Issuing Entity had good and marketable title
thereto, free and clear of all Liens except for Permitted Liens. No effective financing statement or other instrument similar in effect covering any portion of the Third Step Transferred Property shall, on or after the Closing Date, be on file in
any recording office except such as may be filed in favor of (i) the Grantor Trust in connection with this Agreement or (ii) the Indenture Trustee in connection with the Indenture. 

(ii) Upon the conveyance of such Receivable and the other related Third Step Transferred Property to the Grantor Trust pursuant to this
Agreement and the Third Step Receivables Assignment, the Grantor Trust will be the sole owner of, and have good, indefeasible and marketable title to such Receivable and other related Third Step Transferred Property, free and clear of any Lien
(other than Liens created hereunder and Permitted Liens); and, to the extent the related Obligor has a contractual right to return the Financed Vehicle to the Seller for repurchase, the applicable repurchase period has expired. As of the Closing
Date, each Receivable and the related Financed Vehicle is free and clear of any Lien of any Person (other than Liens created hereunder and Permitted Liens) or those Liens that will be released simultaneously with the conveyance hereunder and is in
compliance with all Applicable Laws. 
 (c) All Filings Made. With respect to the sale and assignment of the Third Step Transferred
Property to the Grantor Trust, the Issuing Entity has taken all steps reasonably necessary to ensure that such sale and assignment has been perfected under the relevant UCC. With respect to the Third Step Transferred Property, the Issuing Entity has
taken all steps necessary to ensure that all filings (including UCC filings) necessary in any jurisdiction to give the Indenture Trustee a first priority perfected security interest in the Third Step Transferred Property have been made. 

  
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 (d) Value Given. The Grantor Trust shall have given reasonably equivalent value to
the Issuing Entity in consideration for the transfer by the Issuing Entity to the Grantor Trust of each of the Receivables and the related Third Step Transferred Property under this Agreement. 

Section 3.2 Repurchase of Receivables. 

(a) In the event of 

(A) a breach of any representation or warranty set forth in Section 3.1(b) or Section 3.1(c) of the Receivables
Purchase Agreement, Section 3.1(b) of the Receivables Transfer Agreement or Section 3.1(a) hereof which materially and adversely affects the interests of the Noteholders or the Certificateholders taken as a whole,
unless the breach shall have been cured within thirty (30) days following (i) discovery of the breach by the Issuing Entity or receipt of notice of such breach by the Issuing Entity from the Grantor Trust (which notice shall provide
sufficient detail so as to allow the Issuing Entity to reasonably investigate the breach), or (ii) in the case of the Grantor Trust Trustee or the Indenture Trustee, a Responsible Officer of such trustee has actual knowledge or receives written
notice of a breach of such representation or warranty, then 
 (B) the Issuing Entity shall (1) repurchase from the
Grantor Trust each Receivable related to such breach by remitting to the Collection Account an amount equal to the Purchase Amount of each such Receivable or (2) in the event of a breach of any representation or warranty set forth in
Section 3.1(b) of the Receivables Transfer Agreement, use reasonable efforts to enforce, at the direction of the Grantor Trust or any of it assigns, including the Indenture Trustee, the obligations of the Depositor under Section 3.1(c) of
the Receivables Transfer Agreement to repurchase each Receivable related to such breach by remitting to the Collection Account an amount equal to the Purchase Amount of each such Receivable. Any such breach will be deemed not to materially and
adversely affect the interests of the Noteholders or the Certificateholders taken as a whole, if such breach or failure does not affect the ability of the Issuing Entity (or its assignee) to receive and retain timely payment in full on such
Receivable. The Issuing Entity shall not interfere with or act to hinder the Grantor Trust’s or any assignee’s exercise of rights and remedies under this Section 3.2 or under Sections 3.1(c) or 4.13 of the
Receivables Transfer Agreement. 
 (b) It is understood and agreed that the obligation of the Issuing Entity to repurchase any Receivable as
to which a breach of a representation or warranty set forth in Section 3.1(a), which materially and adversely affects the interests of the Noteholders or the Certificateholders taken as a whole, has occurred and is
continuing, and the obligation of the Issuing Entity to enforce the Depositor’s obligation to repurchase such Receivables pursuant to the Receivables Transfer Agreement in connection with a breach of a representation or warranty set forth in
Section 3.1(b) of the Receivables Transfer Agreement and the Seller’s obligation to repurchase such Receivables pursuant to the Receivables Purchase Agreement in connection 

  
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with a breach of a representation or warranty set forth in Section 3.1(b) or Section 3.1(c) of the Receivables Purchase Agreement shall, if such obligations are fulfilled, constitute
the sole and exclusive remedy (other than any indemnities available pursuant to Section 4.13, Section 4.13 of the Receivables Transfer Agreement or Section 4.13 of the Receivables Purchase Agreement) against the Issuing Entity, the
Depositor or the Seller for such breach available to the Grantor Trust, the Financial Parties, the Owner Trustee, the Grantor Trust Trustee or the Indenture Trustee. 

(c) Upon the receipt of the applicable Purchase Amount, the applicable Receivable and any and all related Third Step Transferred Property shall
be automatically and immediately assigned and re-conveyed by the Grantor Trust (or its applicable assign, as the case may be) to the Issuing Entity. 

(d) Upon discovery by the Issuing Entity or by the Grantor Trust of a breach of any of the foregoing representations and warranties set forth
in Section 3.1 hereof, Section 3.1(a), Section 3.1(b) or Section 3.1(c) of the Receivables Purchase Agreement or Section 3.1(a) or Section 3.1(b) of the Receivables Transfer Agreement (other than
with respect to Receivables that have been repurchased in accordance with the terms of this Agreement), the party discovering such breach shall give prompt written notice to the other party. 

Section 3.3 Representations and Warranties of the Issuing Entity. 

The Issuing Entity makes the following representations and warranties to the Grantor Trust as of the date of this Agreement, which shall
survive delivery of the Third Step Transferred Property, and on which representations and warranties the Grantor Trust shall rely in issuing the Grantor Trust Certificate. 

(a) Organization and Good Standing. The Issuing Entity has been duly organized, and is validly existing as a statutory trust and in good
standing under the laws of the state of its formation, with all requisite power and authority to own or lease its properties and to conduct its business as such business is presently conducted and to enter into and perform its obligations pursuant
to this Agreement. 
 (b) Power and Authority; Due Authorization. The Issuing Entity (i) has the power and authority to
(A) execute and deliver this Agreement and the other Transaction Documents to which it is a party and (B) carry out the terms of this Agreement and the other Transaction Documents to which it is a party and (ii) has duly authorized by
all necessary action on its part the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party. 

(c) Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the Issuing Entity enforceable against the
Issuing Entity in accordance with its terms, except as enforceability may be limited by bankruptcy, receivership, conservatorship, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights in general and by
general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

  
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 (d) No Violation. The consummation of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Issuing Entity’s Formation
Documents or any Contractual Obligation of the Issuing Entity, (ii) result in the creation or imposition of any Lien upon any of the Issuing Entity’s properties, other than Liens permitted or created pursuant to the Transaction Documents,
or (iii) violate any Applicable Law, in each case, except where such failure to comply could not reasonably be expected to have a Material Adverse Effect with respect to the Issuing Entity. 

(e) No Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Issuing Entity, threatened against
the Issuing Entity, before any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) challenging the
enforceability of a material portion of the Receivables or (iv) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect with respect to the Issuing Entity. 

(f) No Consents. All approvals, authorizations, consents, orders or other actions of any Person or of any Governmental Authority (if
any) required for the due execution, delivery and performance by the Issuing Entity of this Agreement have been obtained. 

Section 3.4 Covenants of the Issuing Entity. The Issuing Entity hereby covenants as to the Receivables the Issuing Entity has
contributed to the Grantor Trust hereby that: 
 (a) Delivery of Payments. The Issuing Entity shall within two (2) Business Days
after the Closing Date, transfer all Collections received by it on or after the Cutoff Date with respect to any Receivable or related Third Step Transferred Property to, or at the direction of, the Grantor Trust. 

(b) Security Interests. The Issuing Entity will not sell, pledge, assign or transfer to any other Person, or grant, create, incur,
assume or suffer to exist any Lien (other than Permitted Liens) on any portion of the Receivables or other Third Step Transferred Property, whether now existing or hereafter transferred hereunder, or any interest therein, and the Issuing Entity will
not sell, pledge, assign or suffer to exist any Lien on its interest, if any, hereunder. The Issuing Entity will promptly notify the Grantor Trust of the existence of any Lien (other than Permitted Liens) on any portion of the Receivables or other
Third Step Transferred Property and the Issuing Entity shall defend the right, title and interest of the Grantor Trust (and the permitted assignees) in, to and under such Receivables and other Third Step Transferred Property, against all claims of
third parties; provided, however, that nothing in this subsection shall prevent or be deemed to prohibit the Issuing Entity from suffering to exist Permitted Liens upon any portion of the Third Step Transferred Property. 

Section 3.5 Representations and Warranties of the Grantor Trust. 

The Grantor Trust makes the following representations and warranties to the Issuing Entity as of the date of this Agreement, and on which
representations and warranties the Issuing Entity shall rely in contributing the Receivables. 

  
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 (a) Organization and Good Standing. The Grantor Trust has been duly organized, and is
validly existing as a statutory trust and in good standing under the laws of the state of its formation, with all requisite power and authority to own or lease its properties and to conduct its business as such business is presently conducted and to
enter into and perform its obligations pursuant to this Agreement. 
 (b) Power and Authority; Due Authorization. The Grantor Trust
(i) has the power and authority to (A) execute and deliver this Agreement and the other Transaction Documents to which it is a party and (B) carry out the terms of this Agreement and the other Transaction Documents to which it is a
party and (ii) has duly authorized by all necessary action on its part the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party. 

(c) Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the Grantor Trust enforceable against the
Grantor Trust in accordance with its terms, except as enforceability may be limited by bankruptcy, receivership, conservatorship, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights in general and by
general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 (d) No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under, the Grantor Trust’s Formation Documents or any Contractual Obligation of the Grantor Trust, (ii) result in the creation or imposition of any Lien upon any of the Grantor Trust’s
properties, other than Liens permitted or created pursuant to the Transaction Documents, or (iii) violate any Applicable Law, in each case, except where such failure to comply could not reasonably be expected to have a Material Adverse Effect
with respect to the Grantor Trust. 
 (e) No Proceedings. There are no proceedings or investigations pending or, to the knowledge of
the Grantor Trust, threatened against the Grantor Trust, before any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement,
(iii) challenging the enforceability of a material portion of the Receivables or (iv) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect with respect to the Grantor Trust. 

(f) No Consents. All approvals, authorizations, consents, orders or other actions of any Person or of any Governmental Authority (if
any) required for the due execution, delivery and performance by the Grantor Trust of this Agreement have been obtained. 

  
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 ARTICLE IV 

MISCELLANEOUS PROVISIONS 

Section 4.1 Amendment. 

(a) This Agreement may be amended, waived, supplemented or modified by a written amendment duly executed and delivered by the Issuing Entity
and the Grantor Trust, without the consent of the Depositor, the Indenture Trustee, the Owner Trustee, the Grantor Trust Trustee, any of the Noteholders, any of the Certificateholders, or any other Person (i) to cure any ambiguity, (ii) to
correct or supplement any provision in this Agreement that may be defective or inconsistent with any other provision in this Agreement or any other Transaction Document or with any description thereof in the Prospectus, (iii) to add to the
covenants, restrictions or obligations of the Seller, (iv) to add, change or eliminate any other provision of this Agreement in any manner that shall not, as evidenced by an Opinion of Counsel, materially and adversely the interests of the
Noteholders or Unaffiliated Certificateholders, or (v) if the Rating Agency Condition is satisfied with respect to such amendment and the Depositor or the Issuing Entity notifies the Indenture Trustee in writing that the Rating Agency Condition
is satisfied with respect to such amendment. 
 (b) This Agreement may be amended, waived, supplemented or modified by a written amendment
duly executed and delivered by the Issuing Entity, the Grantor Trust and the Indenture Trustee with the consent of the Certificateholders to add or supplement any credit enhancement for the benefit of the Noteholders of any class or the
Certificateholders (provided that if any such addition shall affect any class of Noteholders differently from any other class of Noteholders, then such addition shall not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any class of Noteholders). 
 (c) This Agreement may be amended, waived, supplemented or modified by a written
amendment duly executed and delivered by the Issuing Entity, the Grantor Trust and the Indenture Trustee with the consent of the Required Noteholders as of the close of business on the preceding Distribution Date, or if no Notes (other than the
Class XS Notes) are Outstanding, the Majority Certificateholders (which consent, whether given pursuant to this Section 4.1 or pursuant to any other provision of this Agreement, shall be conclusive and binding on such
Person and on all future holders of such Notes or Certificates and of any Notes or Certificates issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon any Notes or
Certificates) for the purpose of adding any provisions to, or changing in any manner, or eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided,
however, that no such amendment shall reduce the aforesaid percentage of Noteholders or Certificateholders required to consent to any such amendment, without the consent of the holders of all Notes or Certificates then outstanding, as the
case may be. 
 (d) It will not be necessary for the consent of Noteholders or Certificateholders pursuant to
Section 4.1(b) or (c) to approve the particular form of any proposed amendment or consent, but it will be sufficient if such consent approves the substance thereof. The manner of obtaining such consents (and any
other consents of Noteholders and Certificateholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by Noteholders and Certificateholders will be subject to such reasonable requirements as the Indenture
Trustee and Owner Trustee may prescribe, including the establishment of record dates pursuant to the Note Depository Agreement. 
 (e) No
amendment, waiver or other modification which adversely affects the rights, privileges, indemnities, duties or obligations of the Owner Trustee or the Grantor Trust Trustee under this Agreement shall be effective without such entity’s prior
written consent. 

  
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 (f) Prior to the execution of any amendment pursuant to
Section 4.1(b) or (c), the Depositor shall provide written notification of the substance of such amendment or consent to each Rating Agency and the Indenture Trustee; and promptly after the execution of any such
amendment, the Depositor shall furnish a copy of such amendment to each Rating Agency, the Grantor Trust Trustee, the Owner Trustee and the Indenture Trustee. 

(g) In executing any amendment permitted by Section 4.1(b) or (c), the Indenture Trustee shall be entitled to
receive, and subject to Sections 6.1 and 6.2 of the Indenture, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and an Officer’s
Certificate stating that all conditions precedent to the execution and delivery of such amendment have been satisfied. The Indenture Trustee may, but shall not be obligated to, enter into any such amendment that affects the Indenture Trustee’s
own privileges, indemnities, duties or obligations under this Agreement or otherwise. 
 (h) Notwithstanding anything to the contrary herein,
an Opinion of Counsel shall be delivered to the Depositor, the Grantor Trust Trustee and the Owner Trustee to the effect that such amendment would not cause the Issuing Entity or the Grantor Trust to fail to qualify as a grantor trust for United
States federal income tax purposes. 
 Section 4.2 Protection of Right, Title and Interest in and to Receivables. 

(a) The Issuing Entity, at its expense, shall cause all financing statements and continuation statements, amendments, assignments and any other
necessary documents and notices, covering or evidencing the Grantor Trust’s right, title and interest in and to the Receivables and other Third Step Transferred Property to be promptly recorded, registered and filed, and at all times to be kept
recorded, registered and filed, and take such other action, all in such manner and in such places as may be required by law, fully to preserve and protect the right, title and interest of the Grantor Trust hereunder in and to all of the Receivables
and such other Third Step Transferred Property. The Issuing Entity shall deliver to the Grantor Trust file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such
recording, registration or filing. The Issuing Entity shall cooperate fully with the Grantor Trust in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of this
subsection. 
 (b) Name Change. The Issuing Entity shall not change its State of organization or its name, identity or entity
structure in any manner that would, could or might make any financing statement or continuation statement filed by the Issuing Entity, the Grantor Trust, or the Grantor Trust’s assigns seriously misleading within the meaning of the UCC, unless
it shall give the Grantor Trust written notice thereof at least five (5) Business Days prior to such change. 
 (c) Executive Office;
Maintenance of Offices. The Issuing Entity shall give the Grantor Trust written notice at least ten (10) Business Days prior to any relocation of its principal executive office if, as a result of such relocation, the applicable provisions
of the UCC would require the filing of any amendment of any previously filed financing or continuation statement or of any new financing statement. The Issuing Entity shall at all times maintain its principal executive office within the United
States. 

  
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 (d) New Debtor. In the event that the Issuing Entity shall change the jurisdiction in
which it is formed or otherwise enter into any transaction which would result in a “new debtor” (as defined in the UCC) succeeding to the obligations of the Issuing Entity hereunder, the Issuing Entity shall comply fully with the
obligations of Section 4.2(a). 
 Section 4.3 Governing Law; Consent to Jurisdiction; Waiver of Objection
to Venue. THIS AGREEMENT AND THE THIRD STEP RECEIVABLES ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS (OTHER THAN
§§ 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW)). EACH OF THE PARTIES HERETO HEREBY AGREES TO THE JURISDICTION OF THE COURTS
OF THE STATE OF NEW YORK, LOCATED IN THE BOROUGH OF MANHATTAN AND THE FEDERAL COURTS LOCATED WITHIN THE STATE OF NEW YORK IN THE BOROUGH OF MANHATTAN. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY
OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER OR UNDER THE THIRD STEP RECEIVABLES ASSIGNMENT IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. 

Section 4.4 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO HAVE A
JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY. 

Section 4.5 Notices. All demands, notices and communications upon or to the Issuing Entity or the Grantor Trust under this
Agreement shall be delivered as specified in Part III of Appendix A to the Receivables Purchase Agreement. 
 Section 4.6
Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions and terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions or terms of this Agreement. 

  
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 Section 4.7 Closing; Assignment; Conveyance of Receivables and Third Step
Transferred Property to the Issuing Entity. The transfer of the Receivables contemplated by this Agreement shall take place at Carvana Headquarters, on the date hereof. This Agreement may not be assigned by the Issuing Entity or the Grantor
Trust except as contemplated by this Section 4.7. The Issuing Entity acknowledges that the Grantor Trust (or any permitted assign) may make further assignments, conveyances and pledges of the Receivables and the other Third
Step Transferred Property together with its rights under this Agreement to other Persons pursuant to the Indenture. The Issuing Entity acknowledges and consents to such assignments and pledges and waives any further notice thereof. Additionally, the
Grantor Trust may assign the representations and warrants set forth in Section 3.1 to any Third-Party Purchaser with respect to the sale of Charged-Off Receivables pursuant to a
Forward Commitment Transfer. 
 Section 4.8 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising,
on the part of the Grantor Trust or the Issuing Entity, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law.

 Section 4.9 Counterparts. This Agreement may be executed in two (2) or more counterparts (and by different parties on
separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by email or facsimile shall be effective as delivery of a
manually executed counterpart of this Agreement. This Agreement shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual
signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic
Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the Uniform Commercial Code (collectively, “Signature Law”), in each case to the extent applicable. Each faxed, scanned, or
photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon,
and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity
thereof. For the avoidance of doubt, original manual signatures shall be used for execution or indorsement of writings when required under the UCC or other Signature Law due to the character or intended character of the writings. 

Section 4.10 Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto and the
Indenture Trustee and, to the extent expressly referenced herein, shall inure to the benefit of the Noteholders and the Certificateholders, who shall be considered to be a third party beneficiary hereof. Except as otherwise provided in this
Agreement, no other Person will have any right or obligation hereunder. 
 Section 4.11 Merger and Integration. Except as
specifically stated otherwise herein, this Agreement sets forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein. 

  
 12 

 Section 4.12 Headings. The headings herein are for purposes of references only
and shall not otherwise affect the meaning or interpretation of any provision hereof. 
 Section 4.13 Indemnification. The
Issuing Entity shall indemnify and hold harmless the Grantor Trust and its agents and assignees (each, an “Indemnified Person”) from and against any loss, liability, expense (including reasonable and documented out of pocket
external attorneys’ fees and costs) or damage suffered or sustained by reason of third party claims which may be asserted against or incurred by the Grantor Trust or any of the permitted assignees (collectively, “Losses”) as a
result of the breach of the Issuing Entity’s representations and warranties contained herein and any failure by the Issuing Entity to comply with its obligations under Section 4.2 or
Section 3.4(b); provided that the Issuing Entity’s repurchase obligation for a breach of representations and warranties set forth in Section 3.1(a) hereof is the sole remedy
therefor, except with respect to matters set forth in (i) above. Notwithstanding the foregoing, such indemnity shall not be available to an Indemnified Person to the extent that such Losses (A) have resulted from the gross negligence, bad
faith, fraud or willful misconduct of such Indemnified Person or (B) arise primarily due to the deterioration in the credit quality or market value of the Receivables, Financed Vehicles or other Third Step Transferred Property (or the
underlying Obligors thereunder) or otherwise constituting credit recourse for the failure of an Obligor to pay any amount owing with respect to any Third Step Transferred Property. 

Section 4.14 Survival. 

All representations, warranties, covenants, indemnities and other provisions made by the Issuing Entity herein or in connection herewith shall
be considered to have been relied upon by the Grantor Trust, and shall survive the execution and delivery of this Agreement. The terms of Section 4.13 shall survive the termination of this Agreement. 

Section 4.15 No Petition Covenant. 

Notwithstanding any prior termination of this Agreement, the Issuing Entity shall not, prior to the date which is one year and one day after
the final distribution with respect to the Notes (other than the Class XS Notes) to the Note Distribution Account or, with respect to the Certificates, to the Certificateholders or the Certificate Distribution Account, acquiesce, petition or
otherwise invoke or cause the Grantor Trust to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Grantor Trust under any federal or State bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Grantor Trust or any substantial part of the property of either of them, or ordering the winding up or liquidation of the affairs of the
Grantor Trust under any federal or State bankruptcy or insolvency proceeding. 
 Section 4.16 Limitation on Liability. 

It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered by Wilmington Trust,
National Association (“WTNA”), not individually or personally but solely as Owner Trustee of the Issuing Entity and Grantor Trust Trustee of the Grantor Trust, in the exercise of the powers and authority conferred and vested in it,
(b) each of the representations, undertakings and agreements herein made on the part of the Issuing Entity or 

  
 13 

 
Grantor Trust, as applicable, is made and intended not as personal representations, undertakings and agreements by WTNA but is made and intended for the purpose of binding only Issuing Entity or
Grantor Trust, as applicable, (c) nothing herein contained shall be construed as creating any liability on WTNA, individually or personally, to perform any covenant either expressed or implied contained herein of the Issuing Entity or Grantor
Trust, as applicable, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) WTNA has made no investigation as to the accuracy or completeness of any
representations and warranties made by Issuing Entity or Grantor Trust, as applicable, in this Agreement and (e) under no circumstances shall WTNA be personally liable for the payment of any indebtedness or expenses of Issuing Entity or Grantor
Trust, as applicable, or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by Issuing Entity or Grantor Trust, as applicable, under this Agreement. 

[REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK] 

  
 14 

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

			
	CARVANA AUTO RECEIVABLES TRUST 2021-P1
		
	By	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CARVANA AUTO RECEIVABLES GRANTOR TRUST 2021-P1
		
	By:	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
		 	not in its individual capacity but solely as Grantor Trust Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to Receivables Contribution Agreement] 

 EXHIBIT A 

FORM OF 
 THIRD STEP
RECEIVABLES ASSIGNMENT 
 PURSUANT TO RECEIVABLES CONTRIBUTION AGREEMENT 

On March 18, 2021, for value received, in accordance with the Receivables Contribution Agreement, dated as of March 18, 2021 (as amended,
modified or supplemented from time to time, the “Receivables Contribution Agreement”), between Carvana Auto Receivables Trust 2021-P1, a Delaware statutory trust (the “Issuing
Entity”), and Carvana Auto Receivables Grantor Trust 2021-P1, a Delaware statutory trust (the “Grantor Trust”), the Issuing Entity does hereby sell, assign, transfer, set over and
otherwise convey unto the Grantor Trust, without recourse, all of the Issuing Entity’s right, title and interest in, to and under the following property, whether now existing or hereafter created or acquired: 

(i) the Receivables and all instruments and all monies due or to become due or received by any Person in payment of any of the
foregoing on or after the Cutoff Date; 
 (ii) the Financed Vehicles securing such Receivables (including any such Financed
Vehicles that have been repossessed), any document or writing evidencing any security interest in any such Financed Vehicle and each security interest in each Financed Vehicle; 

(iii) the Receivable Files and the Servicer Files related to such Receivables; 

(iv) all rights to payment under all Insurance Policies with respect to the Financed Vehicles or the Obligors, including any
monies collected from whatever source in connection with any default of an Obligor or with respect to any such Financed Vehicle and any proceeds from claims or refunds of premiums on any Insurance Policy; 

(v) all guaranties, indemnities, warranties, insurance (and proceeds and premium refunds thereof) and other agreements or
arrangements of whatever character from time to time supporting or securing payment of the Receivables, whether pursuant to the related Contracts or otherwise; 

(vi) all rights to payment under all service contracts and other contracts and agreements associated with such Receivables;

 (vii) all Liquidation Proceeds related to any such Receivable received on or after the Cutoff Date; 

(viii) subject to the Transaction Documents and the Master Agency Agreement, all deposit accounts, monies, deposits, funds,
accounts and instruments relating to the foregoing (excluding payments or recoveries in respect of the Receivables received prior to the Cutoff Date); 

  
 Ex. A-1 

 (ix) the Receivables Purchase Agreement and the Receivables Transfer
Agreement, including the right of the Issuing Entity to cause the Seller or the Depositor to repurchase Receivables under certain circumstances; 

(x) the proceeds of any and all of the foregoing; and 

(xi) all present and future claims, demands, causes of action and choses in action in respect of any of all of the foregoing
and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property; all
accounts, general intangibles, chattel paper, instruments, documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance
proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes all or part of or is included in the proceeds of any of the foregoing. 

It is the intention of the Grantor Trust and the Issuing Entity that the transfer and assignment of Receivables contemplated by the
Receivables Contribution Agreement and this Third Step Receivables Assignment shall constitute an absolute and irrevocable sale of the Third Step Transferred Property from the Issuing Entity to the Grantor Trust so that the beneficial interest in
and title to the Receivables and the other related Third Step Transferred Property shall not be part of the Issuing Entity’s estate in the event of the filing of a petition for insolvency, receivership or conservatorship by or against the
Issuing Entity or placement into receivership or conservatorship of the Issuing Entity under any relevant bankruptcy, insolvency, receivership or conservatorship law. 

The foregoing transfer and assignment of the Third Step Transferred Property contemplated by the Receivables Contribution Agreement and this
Third Step Receivables Assignment does not constitute and is not intended to result in any assumption by the Grantor Trust of any obligation of the Depositor, the Seller, the Servicer, the Issuing Entity or any other Person to the Obligors, insurers
or any other Person in connection with the Receivables or the other related Third Step Transferred Property, including any insurance policies or any agreement or instrument relating to any of them. 

THIS THIRD STEP RECEIVABLES ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT
REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS (OTHER THAN §§ 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW)). 

This Third Step Receivables Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the
undersigned contained in the Receivables Contribution Agreement and is to be governed by the Receivables Contribution Agreement. 

  
 Ex. A-2 

 Capitalized terms used herein and not otherwise defined herein shall have the meaning
assigned to them in the Receivables Contribution Agreement. 

*    *    *    *    * 

  
 Ex. A-3 

 IN WITNESS WHEREOF, the undersigned has caused this Third Step Receivables Assignment to be
duly executed as of the day and year first written above. 
  

			
	CARVANA AUTO RECEIVABLES TRUST 2021-P1
		
	By	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	              

	Name:	 	
	Title:	 	

  
 Ex. A-4 

 SCHEDULE A TO THE THIRD STEP RECEIVABLES ASSIGNMENT 

THIRD STEP SCHEDULE OF RECEIVABLES 

The Third Step Schedule of Receivables is 

on file at the offices of: 
  

	 	1.	 The Indenture Trustee 

 

	 	2.	 The Servicer 

  

	 	3.	 The Issuing Entity 

  

	 	4.	 The Grantor Trustex4512312020

DESCRIPTION OF THE REGISTRANT’S SECURITIES  REGISTERED PURSUANT TO SECTION 12 OF THE   SECURITIES EXCHANGE ACT OF 1934  Argo Group International Holdings, Ltd. (“Argo Group,” “Company,” “we,” “us,” and “our”) has three  classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended:   (a) common shares, par value $0.01 per share (the “common shares”);  (b) the 6.500% Senior Notes due 2042 (the “Notes”) issued by Argo Group U.S., Inc. (“Argo Group U.S.”), a wholly owned subsidiary of the Company, and our guarantee of such Notes; and (c) the depositary shares, each representing a 1/1,000th interest in a 7.00% Resettable Fixed Rate Preference Share, Series A, par value $1.00 per share (the “Series A Preference Shares”). The following is a summary description of the material terms of such securities. It may not contain all the  information that is important to you. For additional information, you should refer to the provisions of our Amended  and Restated Memorandum of Association (the “Memorandum of Association”), our Amended and Restated Bye- Laws (the “Bye-Laws”), the Argo Group U.S. Notes, Senior Indenture and First Supplemental Indenture applicable  to the Notes, Certificate of Designations and Deposit Agreement applicable to the Series A Preference Shares and  depositary shares, each of which is an exhibit to the Annual Report on Form 10-K to which this description is an  exhibit and are incorporated herein by reference.   We are incorporated as an exempted company limited by shares under the Bermuda Companies Act of  1981, as amended (the “Companies Act”). Please also refer to the applicable provisions of the Companies Act for  additional information.  The rights of our shareholders are governed by Bermuda law, our Memorandum of Association and our  Bye-Laws. Our authorized share capital stock is 500,000,000 common shares, par value $1.00 per share, and  30,000,000 preferred shares, par value $1.00 per share. 6,000,000 preferred shares are designated as Series A  Preference Shares.  DESCRIPTION OF COMMON SHARES  Listing  Our common shares are listed on the New York Stock Exchange (the “NYSE”) under the symbol “ARGO.”  Dividend Rights  Subject to any preferred shares created by our board of directors, each outstanding common share is entitled to  such dividends as our board of directors may declare from time to time out of funds that we can legally use to pay  dividends.  ACTIVE 265145730  Exhibit 4.5 

 

Voting Rights    Subject to the adjustment regarding voting set forth in “Voting Adjustments” below, each holder of our  common shares is entitled to one vote for each common shares and does not have any right to cumulate votes in the  election of directors.     Liquidation Rights    In the event of our liquidation, dissolution or winding-up, holders of our common shares will be entitled to  receive on a pro-rata basis any assets remaining after provision for payment of creditors and after payment of any  liquidation preferences to holders of preferred shares.     Other Rights     Holders of our common shares are not entitled to preemptive, redemption, or sinking fund rights. When we  issue and receive payment for common shares, the shares will be fully paid and nonassessable, which means that its  holders will have paid their purchase price in full and that we may not ask them to surrender additional funds.    Voting Adjustments    Under our Bye-Laws, the voting power of all shares is automatically adjusted to the extent necessary so that  there is no 9.5% U.S. Member (as defined below), provided that no one Member (as defined below) owns greater  than 75% of the voting power of the issued shares of the Company determined without applying the following  voting power adjustments or eliminations. Our board of directors shall from time to time, including prior to any time  at which a vote of Members is taken, take all reasonable steps necessary to ascertain, through communications with  Members or otherwise, whether there exists, or will exist at the time any vote of Members is taken, a Tentative 9.5%  U.S. Member (as defined below). In the event that a Tentative 9.5% U.S. Member exists, the aggregate votes  conferred by shares held by a Member and treated as Controlled Shares (as defined below) of that Tentative 9.5%  U.S. Member shall be reduced to the extent necessary such that the Controlled Shares of the Tentative 9.5% U.S.  Member will constitute less than 9.5% of the voting power of all issued and outstanding shares. In applying the  previous sentence where shares held by more than one Member are treated as Controlled Shares of such Tentative  9.5% U.S. Member, the reduction in votes shall apply to such Members in descending order according to their  respective Attribution Percentages (as defined below), provided that, in the event of a tie, the reduction shall apply  pro rata to such Members. The votes of Members owning no shares treated as Controlled Shares of any Tentative  9.5% U.S. Member shall, in the aggregate, be increased by the same number of votes subject to reduction as  described above provided however that no shares shall be conferred votes to the extent that doing so will cause any  person to be treated as a 9.5% U.S. Member. Such increase shall be apportioned to all such Members in proportion  to their voting power at that time, provided that such increase shall be limited to the extent necessary to avoid  causing any person to be a 9.5% U.S. Member.    The adjustments of voting power described above shall apply repeatedly until there would be no 9.5% U.S.  Member. Our board of directors may deviate from any of the principles described above and determine that shares  held by a Member shall carry different voting rights as it determines appropriate (1) to avoid the existence of any  9.5% U.S. Member or (2) to avoid adverse tax, legal or regulatory consequences to us, any of our subsidiaries, or  any direct or indirect shareholder or its affiliates.    

 

In addition, our board of directors may adjust a shareholder’s voting rights to the extent that our board of  directors determines that it is necessary in order to avoid adverse tax, legal or regulatory consequences to the  Company, any subsidiary of the Company, or any other direct or indirect holder of shares or its affiliates, provided  that no adjustment pursuant to this sentence shall cause any person to become a 9.5% U.S. Member.  Our board of directors also has the authority under our Bye-Laws to request from any direct or indirect  shareholder such information as may be reasonably requested for the purpose of determining whether any holder’s  voting rights are to be adjusted pursuant to the bye-laws. If a shareholder fails to respond to such a request or  submits incomplete or inaccurate information in response to such a request, our board of directors, in its sole  discretion, may determine that such holder’s shares shall carry no voting rights until otherwise determined by our  board of directors.    DESCRIPTION OF THE SERIES A PREFERENCE SHARES    Dividend Rights     Dividends on the Series A Preference Shares are payable on a non-cumulative basis only when, as and if  declared by our board of directors or a duly authorized committee thereof, quarterly in arrears on the 15th day of  March, June, September, and December of each year, commencing on September 15, 2020, at a rate equal to 7.00%  of the liquidation preference per annum (equivalent to $1,750 per Series A Preference Share and $1.75 per  depositary share per annum) up to but excluding September 15, 2025. Beginning on September 15, 2025, any such  dividends will be payable on a non-cumulative basis, only when, as and if declared by our board of directors or a  duly authorized committee thereof, during each reset period, at a rate per annum equal to the Five-Year U.S.  Treasury Rate (as defined in the Certificate of Designations) as of the most recent reset dividend determination date  plus 6.712% of the liquidation preference per annum.    Voting Rights     Holders of the Series A Preference Shares are not entitled to any voting rights, except if and whenever  dividends in respect of any Series A Preference Shares have not been declared and paid for the equivalent of six or  more Dividend Periods, whether or not consecutive (a “Nonpayment Event”), the holders of Series A Preference  Shares, voting together as a single class with the holders of any and all voting preference shares then outstanding,  shall be entitled to vote for the election of a total of two additional members of the board of directors.    Liquidation Rights    Upon any voluntary or involuntary liquidation, dissolution or winding-up of the Company, holders of the  Series A Preference Shares are entitled to receive out of our assets available for distribution to shareholders, after  satisfaction of liabilities to creditors and senior securities (including policyholder obligations of our subsidiaries), if  any, but before any distribution of assets is made to holders of our common shares or any other junior shares, a  liquidating distribution in the amount of $25,000 per Series A Preference Share (equivalent to $25 per depositary  share) plus declared and unpaid dividends, if any, to the date fixed for distribution.         

 

Other Rights    The Series A Preference Shares are not subject to any mandatory redemption, sinking fund, retirement fund  or purchase fund or other similar provisions. Holders of Series A Preference Shares are not entitled to require  redemption, repurchase or retirement of any Series A Preference Shares. No Series A Preference Shares shall have  any conversion rights or preemption rights.   Redemption    The Series A Preference Shares are redeemable for cash at our option in whole or in part, from time to  time, on or after the First Reset Date at a redemption price equal to $25,000 per share (equivalent to $25 per  depositary share), and provide for dividends in an amount equal to any declared but unpaid dividends and the  portion of the quarterly dividend per share attributable to the then-current dividend period that has not been declared  and paid to, but excluding, the redemption date.     In addition:     • we will have the option to redeem all (but not less than all) of the Series A Preference Shares, at any  time outside of a par call period, upon the sending of notice to the common shareholders of a proposal  for an amalgamation or any proposal for any other matter that requires, as a result of any changes in  Bermuda law after the date of this prospectus supplement, an affirmative vote for its validation or  effectuation of the holders of the Series A Preference Shares at the time outstanding, whether voting as  a separate series or together with any other series of Series A Preference Shares as a single class, at a  redemption price of $26,000 per Series A Preference Share (equivalent to $26 per depositary share);  provided that no such redemption may occur prior to the First Reset Date unless one of the redemption  requirements is satisfied;     • we will have the option to redeem all (but not less than all) of the Series A Preference Shares, at a  redemption price of $25,000 per share (equivalent to $25 per depositary share), if as a result of a  change in tax law there is, in our reasonable determination, a substantial probability that we or any  successor company would become obligated to pay any additional amounts on the next succeeding  dividend payment date with respect to the Series A Preference Shares and the payment of those  additional amounts cannot be avoided by the use of any reasonable measures available to us or any  successor company; provided that no such redemption may occur prior to the First Reset Date unless  one of the redemption requirements is satisfied;     • we will have the option to redeem all (but not less than all) of the Series A Preference Shares, at a  redemption price of $25,000 per share (equivalent to $25 per depositary share), at any time within 90  days following the occurrence of the date on which we have reasonably determined that a “capital  disqualification event” has occurred as a result of any amendment or proposed amendment to, or  change or proposed change in, the laws or regulations of the jurisdiction of our “Applicable  Supervisor” (as described in the preliminary prospectus supplement) that is enacted or becomes  effective after the initial issuance of the Series A Preference Shares or any official administrative  decision or judicial decision or administrative action or other official pronouncement interpreting or  applying those laws or regulations that is announced after the initial issuance of the Series A  Preference Shares; provided that no such redemption may occur prior to the First Reset Date unless  one of the redemption requirements is satisfied; and     • we will have the option to redeem all (but not less than all) of the Series A Preference Shares, at a  redemption price of $25,500 per share (equivalent to $25.50 per depositary share) within 90 days of the  occurrence of a “rating agency event”; provided that no such redemption may occur prior to the First  Reset Date unless one of the redemption requirements is satisfied.     

 

Any such redemption will require us to provide not less than 30 days’ nor more than 60 days’ prior written  notice. Upon any such redemption, the redemption price will also include dividends in an amount equal to any  declared but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current  dividend period that has not been declared and paid to, but excluding, the redemption date.     If the Series A Preference Shares are redeemed, in whole or in part, a corresponding number of depositary  shares will be redeemed with the proceeds received by the depositary from the redemption of the Series A  Preference Shares held by the depositary. The redemption price per depositary share will be equal to 1/1000th of the  redemption price per Series A Preference Share.    Ranking     The Series A Preference Shares:    • will rank senior to our common shares;    • will rank junior to any senior shares and any existing and future indebtedness of the Company and  any of its subsidiaries;    • will rank equally with any parity shares;    • will not represent any interest in any subsidiary of the Company; and    • will be contractually subordinated in right of payment to all obligations of our subsidiaries, including  all existing and future policyholders’ obligations of such subsidiaries.    DESCRIPTION OF THE DEPOSITARY SHARES    Listing   The depositary shares are listed on the NYSE under the symbol “ARGOPrA.”  Dividends and Other Distributions  Any dividend or other distribution (including upon our voluntary or involuntary liquidation, dissolution  or winding-up) paid in respect of a depositary share will be in an amount equal to 1/1,000th of the dividend declared  or distribution payable, as the case may be, on the underlying Series A Preference Share. The depositary will  distribute any cash dividends or other cash distributions received on the Series A Preference Shares to the record  holders of depositary shares in proportion to the number of depositary shares held by each holder on the relevant  record date. If we make a distribution on the Series A Preference Shares other than in cash, the depositary will  distribute any property received by it to the record holders of depositary shares in proportion to the number of  depositary shares held by each holder, unless it determines that the distribution cannot be made proportionally  among those holders or that it is not feasible to make a distribution. In that event, the depositary may, with our  approval, adopt a method of distribution that it deems practicable, including the sale of the property and distribution  of the net proceeds from the sale to the holders of the depositary shares.  Record dates for the payment of dividends and other matters relating to the depositary shares will be the same  as the corresponding record dates for the Series A Preference Shares.  Withdrawal of Series A Preference Shares  Unless the related depositary shares have been previously called for redemption, a holder of depositary shares  may surrender his or her depositary receipts at the corporate trust office of the depositary, pay any taxes, charges and  fees provided for in the Deposit Agreement and comply with any other requirements of the Deposit Agreement for  the number of whole Series A Preference Shares and any money or other property represented by such holder’s  

 

depositary receipts. A holder of depositary shares who exchanges such depositary receipts for Series A Preference  Shares will be entitled to receive whole Series A Preference Shares on the basis set forth herein; partial Series A  Preference Shares will not be issued.  However, holders of whole Series A Preference Shares will not be entitled to deposit those shares under the  Deposit Agreement or to receive depositary shares for those shares after the withdrawal. If the depositary shares  surrendered by the holder in connection with the withdrawal exceed the number of depositary shares that represent  the number of whole Series A Preference Shares to be withdrawn, the depositary will deliver to the holder at the  same time new depositary shares evidencing the excess number of depositary shares.  Redemption of Depositary Shares  If the Series A Preference Shares underlying the depositary shares are redeemed, in whole or in part, a  corresponding number of depositary shares will be redeemed with the proceeds received by the depositary from the  redemption of depositary shares representing an interest in our Series A Preference Shares held by the depositary.  The redemption price per depositary share will be equal to 1/1000th of the applicable per share redemption price  payable in respect of such Series A Preference Shares.  Whenever we redeem Series A Preference Shares held by the depositary, the depositary will redeem, as of the  same redemption date, the number of depositary shares representing an interest in the Series A Preference Shares so  redeemed. If less than all of the outstanding depositary shares are to be redeemed, the depositary will select the  depositary shares to be redeemed by lot or pro rata or in such other manner as may be determined by the depositary  to be fair and equitable and provided that such methodology is consistent with any applicable stock exchange rules.  The depositary will mail (or otherwise transmit by an authorized method) notice of redemption to holders of the  depositary receipts not less than 30 days and not more than 60 days prior to the date fixed for redemption of the  depositary shares representing an interest in our Series A Preference Shares and the related depositary shares.  Voting Rights  Holders of the depositary shares representing an interest in the Series A Preference Shares will not have any  voting rights, except for the limited voting rights described above.  Because each depositary share represents a 1/1000th interest in a Series A Preference Share, holders of  depositary receipts will be entitled to 1/1000th of a vote per Series A Preference Share under those limited  circumstances in which holders of the Series A Preference Shares are entitled to vote. Holders of the depositary  shares must act through the depositary to exercise any voting rights in respect of the Series A Preference Shares.  Although each depositary share is entitled to 1/1000th of a vote, the depositary can vote only whole Series A  Preference Shares. While the depositary will aggregate the fractional voting interests of individual holders of  depository receipts to vote the maximum number of whole Series A Preference Shares in accordance with the  instructions it receives, any remaining votes of holders of depositary shares not representing a whole Series A  Preference Share will not be voted.      When the depositary receives notice of any meeting at which the holders of the Series A Preference Shares are  entitled to vote, the depositary will mail (or otherwise transmit by an authorized method) the information contained  in the notice of meeting to the record holders of the depositary shares relating to the Series A Preference Shares.  Each record holder of the depositary shares on the record date, which will be the same date as the record date for the  Series A Preference Shares, may instruct the depositary to vote the number of the Series A Preference Shares votes  represented by the holder’s depositary shares. To the extent practicable, the depositary will vote the number of the  Series A Preference Shares votes represented by depositary shares in accordance with the instructions it receives  (which can be mailed to transmitted by an authorized (including electronic) method).  Preemptive and Conversion Rights  The holders of the depositary shares will not have any preemptive right to subscribe to any additional issue of  shares of any class or series of the Company or to any securities of the Company convertible into such shares and  

 

will not have the right to convert depositary shares representing an interest in the Series A Preference Shares into, or  exchange depositary shares representing an interest in the Series A Preference Shares for, any other securities or  property of the Company.    DESCRIPTION OF THE NOTES AND THE GUARANTEE    In September 2012, the Company’s subsidiary, Argo Group U.S., issued $143,750,000 aggregate principal  amount of Argo Group U.S.’s 6.5% senior notes due 2042. The Company fully and unconditionally guaranteed all  payments on the Notes (the “Guarantee”).     Listing    The Notes (and the Guarantee with respect thereto) are listed on the NYSE under the symbol “ARGD.”     General    The Notes are unsecured and unsubordinated obligations of Argo Group U.S. and rank equally in right of  payment with all of its other unsecured and unsubordinated indebtedness from time to time outstanding. The Notes  will mature on September 15, 2042, unless previously redeemed in full by Argo U.S. as provided below.    The Notes bear interest at the rate of 6.500% per annum from and including September 25, 2012 to  maturity or early redemption. Interest on the Notes are be payable on the 15th day of March, June, September and  December of each year, commencing on December 15, 2012, to the persons in whose names such Notes were  registered at the close of business on the immediately preceding 1st day of March, June, September and December  (whether or not a business day), respectively.    Interest payments in the respect of the Notes equal the amount of interest accrued from and including the  immediately preceding interest payment date in respect of which interest has been paid or duly provided for (or from  and including the date of issue, if no interest has been paid or duly provided for with respect to the Notes), to, but  not including, the applicable interest payment date or stated maturity date or date of earlier redemption, as the case  may be. Interest on the Notes is computed on the basis of a 360-day year comprised of twelve 30-day months.     If any interest payment date falls on a day that is not a business day, the interest payment will be  postponed until the next succeeding business day, and no interest on such payment will accrue for the period from  and after such interest payment date. Similarly, if the maturity date of the Notes falls on a day that is not a business  day, the payment of interest and principal may be made on the next succeeding business day, and no interest on such  payment will accrue for the period from and after the maturity date. As used in this prospectus supplement,  “business day” means any day other than a day on which banking institutions in The City of New York or any place  of payment are authorized or required by law, executive order or regulation to close.    The indenture governing the Notes (the “Indenture”) does not limit the aggregate principal amount of the  debt securities which Argo U.S. may issue thereunder and will provide that Argo U.S. may issue debt securities  thereunder from time to time in one or more series. Argo U.S. may, from time to time, without the consent of or  notice to holders of the Notes, issue and sell additional debt securities ranking equally and ratably with the Notes in  all respects and having the same terms as the Notes (other than the issue date, and to the extent applicable, issue  price, initial date of interest accrual and initial interest payment date of such additional debt securities), so that such  additional debt securities shall be consolidated and form a single series with the Notes for all purposes, including  

 

voting; provided, that such additional debt securities are fungible with the previously issued Notes for U.S. federal  income tax purposes.    The Notes are not entitled to the benefit of any mandatory redemption or sinking fund or to redemption or  repurchase at the option of the holders upon a change of control, a change in management, an asset sale or any other  specified event.    The Notes are issued only in fully registered form without coupons in minimum denominations of $25  and integral multiples of $25 in excess thereof. The Notes may be presented for transfer (duly endorsed or  accompanied by a written instrument of transfer, if so required by Argo U.S. or the security registrar) or exchanged  for other Notes (containing identical terms and provisions, in any authorized denominations, and of a like aggregate  principal amount) at the office or agency maintained by Argo U.S. for such purposes (initially the corporate trust  office of the trustee). Such transfer or exchange will be made without service charge, but Argo U.S. may require  payment of a sum sufficient to cover any tax or other governmental charge and any other expenses then payable.    The Indenture does not contain any provisions that would limit Argo Groups’, or any of its subsidiaries’  ability to incur indebtedness or that would afford holders of the Notes protection in the event of a sudden and  significant decline in Argo Groups’, or any of its subsidiaries, credit quality or a takeover, recapitalization or highly  leveraged or similar transaction involving Argo Group or any of its subsidiaries. Accordingly, Argo Group and/or  Argo U.S. could in the future enter into transactions that could increase the amount of indebtedness outstanding at  that time or otherwise affect their respective capital structure or credit rating.  Guarantee  Argo Group has fully and unconditionally guaranteed all payments on the Notes. The guarantee is the  senior unsecured obligation of Argo Group and will rank equally in right of payment with all other existing and  future unsecured and unsubordinated indebtedness of Argo Group from time to time outstanding. The guarantee is  effectively subordinated to all existing and future secured obligations of Argo Group to the extent of the security  thereof and structurally subordinated to all existing and future obligations of Argo Group’s subsidiaries, including  claims with respect to trade payables.    Optional Redemption    The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at Argo U.S.’s  option, at any time and from time to time, until maturity at a redemption price equal to 100% of the principal amount  of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not  including, the redemption date.    Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption  date to each holder of Notes to be redeemed at such holder’s registered address. If less than all the Notes are to be  redeemed at our option, the trustee shall determine, in such manner as it deems appropriate and fair, the principal  amount of such Notes held by each beneficial owner of such Notes to be redeemed. The trustee may select Notes  and portions of Notes in amounts of $25 and integral multiples of $25 in excess thereof. Unless we default in  payment of the redemption price, on and after the redemption date interest will cease to accrue on the Notes or  portions thereof called for redemption on such redemption date.    

 

Nothing in the Indenture prohibits Argo U.S. from acquiring the Notes by means other than a redemption,  whether pursuant to an issuer tender offer or otherwise, assuming such acquisition does not otherwise violate the  terms of the Indenture.    Payment of Additional Amounts    If any taxes, assessments or other governmental charges are imposed by the jurisdiction, other than the  United States, where Argo Group or Argo U.S., or any of their respective successors (a “Payor”), is organized or  otherwise considered to be a resident for tax purposes, any jurisdiction, other than the United States, from or through  which the Payor makes a payment on the Notes, or, in each case, any political organization or governmental  authority thereof or therein having the power to tax (the “Relevant Tax Jurisdiction”) in respect of any payments  under the Notes, the Payor will pay to each holder of the Notes, to the extent it may lawfully do so, such additional  amounts as may be necessary in order that the net amounts paid to such holder will be not less than the amount  specified in such Notes to which such holder is entitled; provided, however, the Payor will not be required to make  any payment of additional amounts for or on account of:     (A) any tax, assessment or other governmental charge which would not have been imposed but for (1) the  existence of any present or former connection between a noteholder (or between a fiduciary, settlor,  beneficiary, member or shareholder of, or possessor of a power over, such holder, if such holder is an  estate, trust, partnership, limited liability company or corporation) and the Relevant Tax Jurisdiction (other  than by reason of the mere ownership of, or receipt of payment under, the Notes) including, without  limitation, such holder (or such fiduciary, settlor, beneficiary, member, shareholder or possessor) being or  having been a citizen or resident thereof or being or having been present or engaged in trade or business  therein or having or having had a permanent establishment therein or (2) the presentation of a note (where  presentation is required) for payment on a date more than 30 days after (x) the date on which such payment  became due and payable or (y) the date on which payment thereof is duly provided for, whichever occurs  later;     (B) any estate, inheritance, gift, sales, transfer, personal property or similar tax, assessment or other  governmental charge;     (C) any tax, assessment or other governmental charge which is payable otherwise than by withholding from  payment of (or in respect of) principal of, premium, if any, or any interest on, the Notes;     (D) any tax, assessment or other governmental charge that is imposed or withheld by reason of the failure by  the holder or the beneficial owner of the Notes to comply with a request of the Payor addressed to the  holder within 90 days of such request (a) to provide information, documents or other evidence concerning  the nationality, residence or identity of the holder or beneficial holder or (b) to make any declaration or  other similar claim or satisfy any information or reporting requirement, which is required or imposed by  statute, treaty, regulation or administrative practice of the Relevant Tax Jurisdiction or any political  subdivision thereof as a precondition to exemption from all or part of such tax, assessment or other  governmental charge; or     (E) any combination of the above.    Additional amounts also will not be paid with respect to any payment of the principal of, or any premium  or interest on, any Notes to any holder who is a fiduciary or partnership or limited liability company or other than  the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Relevant  Tax Jurisdiction to be included in the income for tax purposes of a beneficiary or settlor with respect to such  fiduciary or a member of such partnership or limited liability company or beneficial owner who would not have  been entitled to such additional amounts had it been the holder of such Notes.  

 

  Redemption for Tax Purposes    Argo U.S. may redeem the Notes at its option, at any time, for cash, in whole but not in part, at a  redemption price equal to 100% of the principal amount, together with accrued and unpaid interest and additional  amounts, if any, to, but not including, the date fixed for redemption, at any time the Payor receives an opinion of  counsel that as a result of (1) any change in or amendment to the laws or treaties (or any regulations or rulings  promulgated under these laws or treaties) of a Relevant Tax Jurisdiction or any change in the application or official  interpretation of such laws, regulations or rulings, (2) any action taken by a taxing authority of a Relevant Tax  Jurisdiction which action is generally applied or is taken with respect to it, or (3) a decision rendered by a court of  competent jurisdiction in a Relevant Tax Jurisdiction whether or not such decision was rendered with respect to the  Payor, there is a substantial probability that the Payor is or will be required as of the next interest payment date to  pay additional amounts with respect to the Notes as provided in “Payment of Additional Amounts” above and such  requirements cannot be avoided by the use of reasonable measures (consistent with practices and interpretations  generally followed or in effect at the time such measures could be taken) then available. If Argo U.S. elects to  redeem the Notes under this provision, it will give written notice of such election to the trustee and the holders of the  Notes. Interest on the Notes will cease to accrue unless we default in the payment of the redemption price.    Consolidation, Merger and Sale of Assets    Neither Argo U.S. nor Argo Group may consolidate with or merge into or amalgamate with any other company  or entity or sell, assign, transfer, lease or otherwise convey all or substantially all its assets to another company or  entity, unless:      • in the case Argo U.S. or Argo Group consolidates or amalgamates with or merges into another person or  sells, assigns, transfers, leases or otherwise conveys all or substantially all of its assets, the person formed  by that consolidation or into which Argo U.S. or Argo Holdings is merged or the person which acquires all  or substantially all its assets expressly assumes our obligations on the debt securities under a supplemental  indenture, and, with respect to the senior indenture, is a corporation, partnership, trust or limited liability  company organized under the laws of the United States of America, any State or territory thereof or the  District of Columbia, Bermuda, Cayman Islands, Barbados or any other country or state (including under  the law of any political subdivision thereof) which is on the date of the indenture a member of the  Organization for Economic Cooperation and Development;     • immediately after giving effect to the transaction no event of default, and no event which, after notice or  lapse of time or both, would become an event of default, has occurred and is continuing; and    • Argo U.S. or Argo Group (as applicable) or the successor have delivered to the trustee an officer’s  certificate and an opinion of counsel stating compliance with these provisions.    Certain Covenants     Limitation on Liens. Argo Group shall not, and shall not permit its restricted subsidiaries to, issue, assume,  incur or enter into a guarantee of, any indebtedness for borrowed money secured by a mortgage, pledge, lien,  encumbrance or other security interest, directly or indirectly, upon any voting shares of a restricted subsidiary which  are now owned or hereafter acquired by Argo Group or its subsidiaries without effectively providing concurrently  that the senior debt securities (and if Argo U.S. or Argo Group so elects, any other indebtedness of Argo U.S. or  Argo Group ranking on a parity with the senior debt securities) shall be secured equally and ratably with, or prior to,  

 

any such secured indebtedness so long as such indebtedness remains outstanding. This restriction shall not apply to  permitted liens.    Restrictions on Certain Dispositions. As long as any of the Notes remain outstanding, and except in a  transaction otherwise expressly permitted by the Indenture, (1) issue, sell, assign, transfer or otherwise dispose of  any capital stock of, or securities convertible into, or warrants, rights or options to subscribe for or purchase shares  of capital stock of, any restricted subsidiary (other than to Argo U.S., Argo Group or another restricted subsidiary);  or (2) permit any restricted subsidiary to issue (other than to Argo U.S., Argo Group or another restricted subsidiary)  any capital stock (other than director’s qualifying shares) of, or securities convertible into, or warrants, rights or  options to subscribe for or purchase any capital stock of, any restricted subsidiary; if, after giving effect to any  transaction described in clauses (1) or (2) above and the issuance of the maximum number of shares or other equity  interests issuable upon the conversion or exercise of all such convertible securities, warrants, rights or options, Argo  Group would own, directly or indirectly, less than 80% of the capital stock of such restricted subsidiary; provided,  however, that this covenant shall not prohibit (i) any issuance, sale, assignment, transfer or other disposition made  for at least a fair market value consideration as determined by the board of directors of Argo Group pursuant to a  resolution adopted in good faith; and (ii) any such issuance or disposition of securities if required by any law or any  regulation or order of any applicable governmental or insurance regulatory authority. Notwithstanding the foregoing,  Argo Group shall be permitted (A) to merge or consolidate any restricted subsidiary into or with another direct or  indirect subsidiary of Argo Group, the capital stock of which Argo Group owns, directly or indirectly, at least 70%;  and (B) subject to the provisions of the Indenture relating to consolidation, merger, and/or sale of all or substantially  all of the assets of Argo Group or Argo U.S. and described above in “-Consolidation, Merger and Sale of Assets”,  sell, assign, transfer or otherwise dispose of all of the capital stock of any restricted subsidiary at one time for at  least a fair market value consideration as determined by the board of directors of Argo Group pursuant to a  resolution adopted in good faith.    Terms Used in Restrictive Covenants    The following are the meanings of terms that are important in understanding the restrictive covenants  described above:      • “capital stock” of any person or entity means any and all shares, interests, rights to purchase, warrants,  options, participations or other equivalents of or interests in (however designated) equity of such person or  entity, including any preferred stock and limited liability or partnership interests (whether general or  limited), but excluding any debt securities convertible or exchangeable into such equity.     • “subsidiary” means any corporation, partnership or other entity of which at the time of determination Argo  Group owns or controls directly or indirectly more than 50% of the shares of voting shares.     • “restricted subsidiary” means any future or present subsidiary of Argo Group the consolidated total assets  of which constitute 20 percent or more of the consolidated total assets of Argo Group.     • “consolidated total assets” means, in respect of Argo Group, as of any date of determination, the amount of  total assets shown on the consolidated balance sheet of Argo Group and its consolidated subsidiaries  delivered to the trustee under the terms of the Indenture, which shall be the balance sheet contained in the  most recent annual or quarterly report filed with the Securities and Exchange Commission and, in respect  of any subsidiary of Argo Group, the total assets of such subsidiary and its consolidated subsidiaries as  shown on the consolidated balance sheet of Argo Group described above.    

 

• “permitted liens” means (i) pledges, mortgages, liens, encumbrances or other security interests existing on  the date the senior debt securities are issued; (ii) pledges, mortgages, liens, encumbrances or other security  interests on any property or any indebtedness of a person existing at the time the person becomes a  subsidiary (whether by acquisition, merger or consolidation) which were not incurred in anticipation  thereof; (iii) pledges, mortgages, liens, encumbrances or other security interests in favor of us or our  subsidiaries; (iv) pledges, mortgages, liens, encumbrances or other security interests existing at the time of  acquisition of the assets encumbered thereby which were not incurred in anticipation of such acquisition;  (v) purchase money pledges, mortgages, liens, encumbrances or other security interests which secure  indebtedness that does not exceed the cost of the purchased property; and (vi) pledges, mortgages, liens,  encumbrances or other security interests on real property acquired after the date on which the Notes are  first issued which secure indebtedness incurred to acquire such real property or improve such real property  so long as (A) such indebtedness is incurred on the date of acquisition of such real property or within 180  days of the acquisition of such real property; (B) such pledges, mortgages, liens, encumbrances or other  security interests secure indebtedness in an amount no greater than the purchase price or improvement  price, as the case may be, of such real property so acquired; and (C) such pledges, mortgages, liens,  encumbrances or other security interests do not extend to or cover any property of ours or any restricted  subsidiary other than the real property so acquired.    • “voting shares” means shares of any class or classes having general voting power under ordinary  circumstances to elect a majority of the board of directors, managers or trustees of the corporation in  question, provided that, for the purposes hereof, shares which carry only the right to vote conditionally on  the happening of an event shall not be considered voting shares whether or not such event shall have  happened.     Events of Default    Any one of the following events will constitute an event of default under the Indenture:     • failure to pay any interest on any debt security of that series when due, continued for 30 days;     • failure to pay principal of or any premium on any debt security of that series when due;     • failure to deposit any sinking fund payment, when due, in respect of any debt security of that series;     • failure to perform, or breach of, any other covenant or warranty in the Indenture, other than a covenant  included in the Indenture solely for the benefit of a series of debt securities other than that series,  continued for 90 days after written notice as provided in the Indenture;     • certain events involving our bankruptcy, insolvency or reorganization; or     • any other event of default provided with respect to debt securities of that series.     If any event of default occurs and continues, either the trustee or the holders of at least 25 percent in  aggregate principal amount of the outstanding debt securities of that series may declare the principal amount of all  the debt securities of that series or, if the debt securities of that series are original issue discount securities, the  portion of the principal amount as may be specified in the terms of those debt securities, to be due and payable  immediately by a notice in writing to us, and to the trustee if given by holders. The principal amount (or specified  amount) will then be immediately due and payable. If an event of default occurs involving our bankruptcy,  insolvency or reorganization, the principal amount of all outstanding securities under the Indenture will be due and  payable immediately without any action on the part of the trustee or the holders. After acceleration, but before a  judgment or decree based on acceleration has been obtained, the holders of a majority in aggregate principal amount  of outstanding debt securities of that series may, under certain circumstances, rescind and annul the acceleration.    

 

Subject to the duty of the trustee during default to act with the required standard of care, the trustee will be  under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of  the holders, unless the holders offer the trustee reasonable indemnity. Generally, the holders of a majority in  aggregate principal amount of the debt securities of any series will have the right to direct the time, method and  place of conducting any proceeding for any remedy available to the trustee, or exercising any trust or power  conferred on the trustee.    A holder of the Notes will not have any right to institute any proceeding with respect to the Indenture, or for  the appointment of a receiver or trustee, or for any other remedy, unless:      • the holder has previously given to the trustee written notice of a continuing event of default;     • the holders of at least 25 percent in principal amount of the Notes of each affected series then outstanding  (treated as separate classes) have made written request, and offered reasonable indemnity, to the trustee to  institute such proceeding as trustee;     • the trustee shall not have received from the holders of a majority in aggregate principal amount of the  Notes of each series affected (with all such series voting as a single class) a direction inconsistent with  such request; and    • the trustee has not instituted proceedings within 60 days.    However, these limitations do not apply to a suit instituted by a holder for enforcement of payment of the  principal of and premium, if any, or interest on their debt security on or after the respective due dates.    We are required to furnish to the trustee annually a statement as to our performance of certain obligations  under the applicable Indenture and as to any default.    Governing Law    The Indenture and the Notes are governed by, and construed in accordance with, the laws of the State of  New York applicable to agreements made or instruments entered into and, in each case, performed in that state.    CERTAIN PROVISIONS OF OUR BYE-LAWS, BERMUDA LAW AND CERTAIN APPLICABLE  INSURANCE REGULATIONS THAT MAY HAVE AN ANTI-TAKEOVER EFFECT    Restrictions on Transfer    Our Bye-Laws provide that if our board of directors determines that share ownership by any shareholder may  result in any non-de minimis adverse tax, regulatory or legal consequences to the Company, any subsidiary of the  Company, or any direct or indirect holder of shares or its affiliates, then it may decline to approve or register or  permit the registration of such transfer of shares. In addition, our board of directors may, in its absolute discretion,  decline to register a transfer of any share to more than four joint holders.    In addition, each transfer must comply with current Bermuda Monetary Authority (“BMA”) permission or  have specific permission from the BMA. Transfers must be by instrument unless otherwise permitted by the  Companies Act.    

 

If our board of directors refuses to register a transfer in accordance with our Bye-Laws, it shall send written  notice to the proposed transferor and transferee within 120 days after the date on which the transfer was delivered to  the Company. The Bye-Laws also provide that our board of directors may suspend the registration of transfers at  such time and for such periods as our board of directors may determine, provided that they may not suspend the  registration of transfers for more than 30 days in any year.    Anti-Takeover Effects of Bye-laws    Provisions of our bye-laws may delay or make more expensive or difficult unsolicited acquisitions or changes  of our control. These provisions may also have the effect of making it more difficult for third parties to cause the  replacement of our board of directors or current management without their agreement. We believe that these  provisions will enable us to develop our business in a manner that will foster long-term growth without disruption  caused by the threat of a takeover not thought by our board of directors to be in our best interests and the best  interests of our stockholders.    Our Bye-Laws currently provide that our board of directors shall consist of not less than three nor more than  11 directors, as determined by our board of directors. Nominations to our board of directors other than those made  by our board of directors must be delivered to or mailed and received at the Company not less than 60 days prior to a  general meeting of our shareholders. Directors may be removed, with or without cause, prior to the expiration of  such director’s term at a meeting of shareholders, provided that such director is given notice before the meeting and  is given the opportunity to be heard at such meeting. The appointment or removal of a director requires the simple  majority of votes entitled to vote thereon, represented in person or by proxy, at the general meeting at which the  proposal is put forth. A special general meeting of shareholders may be convened by our board of directors or at the  request of shareholders holding at the date of the delivery of the written notice of not less than 10% of the paidup  voting share capital of Argo Group.    As described above, any U.S. person owning, directly, indirectly or by attribution, more than 9.5% of our  common shares will have the voting rights attached to such common shares reduced so that it may not exercise more  than 9.5% of the total voting rights.    As described above, our board of directors also may decline to register the transfer of any shares if it believes  that the transfer may expose us, any subsidiary of the Company, or any direct or indirect holder of shares or its  affiliates to non-de minimis adverse tax, legal, or regulatory treatment or if any share is be to transferred to more  than four joint holders. A transferor of our shares will be deemed to own the shares until the name of the transferee  is entered on our register of members.    Subject to any resolution of our shareholders to the contrary, our board of directors shall have the power to  appoint any person as a director to fill a casual vacancy on our board of directors, provided that the number of  directors so appointed shall not exceed any maximum number determined by our directors and may also fill any  vacancy caused by the removal of a director by our shareholders, provided that our shareholders have not elected or  appointed any director at the meeting at which the director was removed or passed a resolution to the contrary.    Any amendment to our bye-laws or our memorandum of association shall be approved by our board of  directors and decided on by an ordinary resolution of our shareholders.       

 

Restrictions on Ownership Under Insurance Laws  The application of various insurance laws in the jurisdictions in which our insurance subsidiaries are  incorporated or commercially domiciled will be a significant deterrent to any person interested in acquiring control.  The insurance holding company laws of each of the jurisdictions in which our insurance subsidiaries are  incorporated or commercially domiciled, as well as state corporation laws, govern any acquisition of control of our  insurance subsidiaries or of us. In general, these laws provide that no person or entity may directly or indirectly  acquire control of an insurance company unless that person or entity has received the prior approval of the insurance  regulatory authorities. An acquisition of control would be presumed in the case of any person or entity who  purchases 10% or more of our outstanding common shares, unless the applicable insurance regulatory authorities  determine otherwise.  Pursuant to the Bermuda Insurance Act 1978 and its related regulations, a shareholder or prospective  shareholder is responsible for notifying the BMA in writing of his becoming a shareholder controller, directly or  indirectly, of 10%, 20%, 33% or 50% of Argo Group and ultimately its Bermudian insurance subsidiary, Argo Re  Ltd. (“Argo Re”), within 45 days of becoming such a shareholder controller. Argo Re is also required to notify the  BMA in the event of any person becoming or ceasing to be a controller (being a managing director, chief executive  or other person in accordance with whose directions or instructions the directors of Argo Re are accustomed to act,  including any person who holds, or is entitled to exercise, 10% or more of the voting shares or voting power or is  able to exercise a significant influence over the management of Argo Re) or officer of the company. The BMA may  serve a notice of objection on any controller of Argo Re if it appears to the BMA that the person is no longer fit and  proper to be such a controller.

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