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                                                                   EXHIBIT 10.1

                                 EDO CORPORATION

                          2006 LONG-TERM INCENTIVE PLAN

1.   PURPOSE.

     The purpose of the Plan is to foster and promote the long-term financial
success of the Company and materially increase shareholder value by motivating
superior performance by means of performance-related incentives, encouraging and
providing for the acquisition of an ownership interest in the Company by
Eligible Employees, and enabling the Company to attract and retain the services
of an outstanding management team upon whose judgment, interest and special
effort the successful conduct of its operations is largely dependent.

2.   DEFINITIONS.

     For purposes of the Plan, the following terms have the indicated meaning:

          "Award" means an award granted under the Plan to an Eligible
     Participant in accordance with the provisions of the Plan in the form of
     Options, Stock Appreciation Rights, Performance Shares, Performance Units,
     Restricted Stock or, or any combination of the foregoing.

          "Award Agreement" means the written agreement evidencing each Award
     granted to a Participant under the Plan as provided in Section 11(b).

          "Beneficiary" means the estate of a Participant or such other
     beneficiary or beneficiaries lawfully designated pursuant to Section 11(o)
     to receive the amount, if any, payable under the Plan upon the death of a
     Participant.

          "Board" shall mean the Board of Directors of the Company.

          "Cause" shall have the meaning set forth in the applicable Award
     Agreement, or in any employment agreement with the Company that may be
     applicable to the Participant, or in the absence of any definition in the
     Award Agreement or such employment agreement, "Cause" shall have the
     meaning established by the Committee from time to time.

          "Change in Control" shall mean the occurrence of any of the following
     events:

          (i) a majority of the members of the Board at anytime cease for any
     reason other than due to death or disability to be persons who were members
     of the Board twenty-four months prior to such time (the "Incumbent
     Directors"); provided that, any director whose election, or nomination for
     election by the Company's shareholders, was approved by a vote of at least
     a majority of the members of the Board then still in office who are
     Incumbent Directors shall be treated as an Incumbent Director; or

          (ii) any "person," including a "group" (as such terms are used in
     Sections 13(d) and 14(d)(2) of the Exchange Act, but excluding the Company,
     its Subsidiaries, any employee benefit plan of the Company or any
     Subsidiary, all employees of the Company or any Subsidiary or any group of
     which any of the foregoing is a member) is or becomes the "beneficial
     owner" (as defined in Rule 13(d)(3) under the Exchange Act), directly or
     indirectly, including, without limitation, by means of a tender or

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     exchange offer, of securities of the Company representing 30% or more of
     the combined voting power of the Company's then outstanding securities; or

          (iii) the shareholders of the Company shall approve a definitive
     agreement (x) for the merger or other business combination of the Company
     with or into another corporation immediately following which merger or
     combination (A) the stock of the surviving entity is not readily tradeable
     on an established securities market, (B) a majority of the directors of the
     surviving entity are persons who (1) were not directors of the Company
     immediately prior to the merger and (2) are not nominees or representatives
     of the Company or (C) any "person," including a "group" (as such terms are
     used in Sections 13(d) and 14(d)(2) of the Exchange Act, but excluding the
     Company, its Subsidiaries, any employee benefit plan of the Company or any
     Subsidiary, employees of the Company or any Subsidiary or any group of
     which any of the foregoing is a member) is or becomes the "beneficial
     owner" (as defined in Rule 13(d)(3) under the Exchange Act), directly or
     indirectly, of 30% or more of the securities of the surviving entity or (y)
     for the direct or indirect sale or other disposition of all or
     substantially all of the assets of the Company, or

          (iv) any other event or transaction that is declared by resolution of
     the Board to constitute a Change in Control for purposes of the Plan.

     Notwithstanding the foregoing, a "Change in Control" shall not be deemed to
occur in the event the Company files for bankruptcy, liquidation or
reorganization under the United States Bankruptcy Code.

          "Change in Control Price" shall mean the highest price per share of
     (A) the highest composite daily closing price of a share during the period
     beginning on the 60th calendar day prior to the date on which the Change in
     Control occurs and ending on the date of such Change in Control, (B) the
     highest gross price paid per share during the same period of time, as
     reported in a report on Schedule 13D filed with the Securities and Exchange
     Commission or (C) the highest gross price paid or to be paid for a share
     (whether by way of exchange, conversion, distribution upon merger,
     liquidation or otherwise) in any of the transactions set forth in the
     definition of Change in Control; provided that, the Change in Control Price
     shall not be greater than the price permitted for compliance with any
     provision of under the Code applicable to an Award.

          "Code" shall mean the Internal Revenue Code of 1986, as amended, and
     the regulations thereunder as they may be amended from time to time.

          "Committee" shall mean the Compensation Committee of the Board, or
     such other Board committee as may be designated by the Board to administer
     the Plan.

          "Common Shares" shall mean the Common Shares, par value $1.00 per
     share, of the Company.

          "Company" shall mean EDO Corporation and any successor thereto.

          "Disability" shall mean long-term disability as defined under the
     terms of the Company's applicable long-term disability plans or policies.

          "Eligible Employee" shall mean each Executive Officer and each other
     key employee of the Company or its Subsidiaries, but shall not include
     directors who are not employees of any such entity.

          "Employment" shall mean, for purposes of Section 5(d), continuous and
     regular salaried employment with the Company or a Subsidiary, which unless
     the Committee shall determine otherwise, shall include any period of
     vacation, any approved leave of absence or any salary

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     continuation or severance pay period and may include service with any
     former Subsidiary of the Company.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended.

          "Executive Officer" shall mean those persons who are officers of the
     Company within the meaning of Rule l6a-1(f) of the Exchange Act and "Named
     Executive Officer" shall have the meaning set forth in Item 402 of
     Regulation S-K under the Exchange Act, or any successor thereto, as it may
     be amended from time to time.

          "Fair Market Value" shall mean, on any date, the closing price of a
     Common Share, as reported for such day on a national exchange, or the mean
     between the closing bid and asked prices for a Common Share on such date,
     as reported on a nationally recognized system of price quotation. In the
     event that there are no Common Share transactions reported on such exchange
     or system on such date, Fair Market Value shall mean the closing price on
     the immediately preceding date on which Common Share transactions were so
     reported.

          "Nonstatutory Stock Option" shall mean an Option that is not intended
     to be an Incentive Stock Option.

          "Normal Retirement" shall mean retirement at or after age 65, or such
     other age as may hereafter be established by resolution of the Board from
     time to time; provided that, unless the Board by resolution determines
     otherwise "Early Retirement" shall include retirement after age 55,
     following not less than 20 years of service with the Company.

          "Option" shall mean the right to purchase the number of Common Shares
     specified by the Committee, at a price and for the term fixed by the
     Committee in accordance with the Plan and reflected in the Award Agreement,
     and subject to any other limitations and restrictions as this Plan and the
     Committee shall impose.

          "Participant" shall mean an Eligible Employee who is selected by the
     Committee to receive an Award under the Plan.

          "Performance Period" shall mean the period during which performance
     measures are established for Performance Shares or Performance Units as
     determined by the Committee. For Named Executive Officers, the Performance
     Period shall be determined not later than the time period required by
     Section 162(m) of the Code to qualify as "performance based compensation"
     thereunder.

          "Performance Share" shall mean any contingent right granted under
     Section 8 to receive a Common Share, which right becomes vested upon the
     attainment, in whole or in part, of performance objectives determined by
     the Committee.

          Performance Unit" shall mean any contingent right granted under
     Section 8 to receive cash (or, at the discretion of the Committee, Common
     Shares), which right becomes vested upon the attainment, in whole or in
     part, of performance objectives determined by the Committee.

          "Plan" shall mean this EDO Corporation 2006 Long-Term Incentive Plan,
     as may be amended from time to time.

          "Predecessor Plans" means the Company's 1996 Long-Term Incentive Plan
     and 2002 Long-Term Incentive Plan.

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          "Restricted Period" shall mean the period during which a grant of
     Restricted Shares is subject to forfeiture.

          "Restricted Share" shall mean a Common Share granted under Section 7
     that becomes vested, in whole or in part, upon the completion of such
     period of service or performance objectives as shall be determined by the
     Committee.

          "Stock Appreciation Right" shall mean a contractual right granted
     under Section 6 to receive cash, Common Shares or a combination thereof

          "Subsidiary" shall mean any corporation of which the Company possesses
     directly or indirectly fifty percent (50%) or more of the total combined
     voting power of all classes of stock of such corporation and any other
     business organization, regardless of form, in which the Company possesses
     directly or indirectly fifty percent (50%) or more of the total combined
     equity interests in such organization.

3.   ADMINISTRATION

     The Plan shall be administered by the Committee that shall consist of at
least two directors of the Company chosen by the Board, each of whom is both a
"non-employee director" within the meaning of Rule l6b-3 under the Exchange Act
and an "outside director" within the meaning of Section 162(m) of the Code. The
Committee shall have the responsibility of construing and interpreting the Plan
and of establishing and amending such rules and regulations as it deems
necessary or desirable for the proper administration of the Plan. Any decision
or action taken or to be taken by the Committee, arising out of or in connection
with the construction, administration, interpretation and effect of the Plan and
of its rules and regulations, shall, to the maximum extent permitted by
applicable law, be within its absolute discretion (except as otherwise
specifically provided herein) and shall be conclusive and binding upon all
Participants and any person claiming under or through any Participant.

4.   MAXIMUM AMOUNT OF SHARES AVAILABLE FOR AWARDS.

          (a) Maximum Number of Shares.

          The maximum number of Common Shares in respect of which Awards may be
     made under the Plan shall be a total of 1,200,000 Common Shares. The
     maximum number of Common Shares in respect of which Awards may be granted
     to a Participant under this Plan in any 12 month period shall not exceed
     200,000 shares, as each such number may be adjusted pursuant to Section
     4(c). Whenever shares are received by the Company in connection with the
     exercise of or payment for any Award granted under the Plan, only the net
     number of shares actually issued shall be counted against the foregoing
     limits of 1,200,000 Common Shares and 200,000 Common Shares, respectively.

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     (b) Shares Available for Issuance.

     Common Shares may be made available from the authorized but unissued shares
of the Company or from shares held in the Company's treasury and not reserved
for some other purpose. In the event that any Award is payable solely in cash,
no shares shall be deducted from the number of shares available for issuance
under Section 4(a) by reason of such Award. In addition, if any Award under this
Plan in respect of shares is canceled or forfeited for any reason without
delivery of Common Shares, the shares subject to such Award shall thereafter
again be available for award pursuant to this Plan.

     (c) Adjustment for Corporate Transactions.

     In the event that the Committee shall determine that any stock dividend,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination, exchange of shares, warrants or
rights offering to purchase Common Shares, or other similar event affects the
Common Shares such that an adjustment is required to preserve, or to prevent
enlargement of, the benefits or potential benefits made available under this
Plan, then the Committee may, in such manner as the Committee may deem
equitable, (A) adjust any or all of (i) the number and kind of shares that
thereafter may be awarded or optioned and sold or made the subject of Stock
Appreciation Rights under the Plan, (ii) the number and kinds of shares subject
to outstanding Options and other Awards and (iii) the grant, exercise or
conversion price with respect to any of the foregoing, or (B) with respect to a
person who has an outstanding Option, make provisions for a cash payment of any
extraordinary cash dividend or as an alternative means (in whole or in part) of
affecting any adjustment deemed required by the Committee to preserve, or to
prevent enlargement of, the benefits or potential benefits made available under
this Plan with respect to such Option. However, the number of shares subject to
any Option or other Award shall always be a whole number. With respect to Awards
intended to qualify as "performance-based compensation" under Section 162(m) of
the Code, such adjustments shall be made taking into account Sections 409A and
162(m) of the Code, to the extent applicable.

5.   STOCK OPTIONS.

     (a) Grant.

     Subject to the provisions of the Plan, the Committee shall have the
authority to grant Options to an Eligible Employee and to determine (i) the
number of shares to be covered by each Option, (ii) the exercise price therefore
and (iii) the conditions and limitations applicable to the exercise of the
Option. The Committee shall have the authority to grant Nonstatutory Stock
Options; provided that Stock Options may not be granted to any Participant who
is not an employee of the Company or one of its Subsidiaries at the time of
grant.

     (b) Option Price.

     The Committee shall establish the exercise price at the time each Option is
granted, which price shall not be less than 100% of the Fair Market Value of the
Common Shares at the date of grant, except that, for purposes of satisfying the
foregoing requirement with respect to a Nonstatutory Stock Option, the Committee
may elect to credit against the exercise price payable by a Participant the
value of any compensation otherwise payable to the Participant under the terms
of the Company's compensation practices and programs that is surrendered,
foregone or exchanged pursuant to such rules or procedures as the Committee
shall establish from time to time.

     (c) Exercise.

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     Each Option shall be exercised at such times and subject to such terms and
conditions as the Committee may specify in the applicable Award or thereafter;
provided, however, that if the Committee does not establish a different exercise
schedule at or after the date of grant of an Option, such Option shall become
exercisable in full on the third anniversary of the date the Option is granted.
The Committee may impose such conditions with respect to the exercise of Options
as it shall deem appropriate, including, without limitation, any conditions
relating to the application of federal or state securities laws. No shares shall
be delivered pursuant to any exercise of an Option unless arrangements
satisfactory to the Committee have been made to assure full payment of the
option price therefore. Payment of the option price may be made in cash or its
equivalent or, if and to the extent permitted by the Committee, by exchanging
Common Shares owned by the optionee (which are not the subject of any pledge or
other security interest), or by a combination of the foregoing, provided that
the combined value of all cash and cash equivalents and the Fair Market Value of
any such Common Shares so tendered to the Company, valued as of the date of such
tender, is at least equal to such option price.

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     (d) Termination of Employment.

     Unless the Award Agreement shall otherwise provide or the Committee shall
otherwise determine after grant, an Option shall be exercisable following the
termination of a Participant's Employment only to the extent provided in this
Section 5(d). If a Participant's Employment terminates due to the Participant's
(i) death, (ii) Disability, or (iii) Normal Retirement, the then exercisable
options held by the Participant at the time of such termination, may be
exercised for a period of one year (or such greater or lesser period as the
Committee shall determine at or after grant), but in no event after the date the
Option otherwise expires. If a Participant's Employment is terminated for Cause
(or, if after the Participant's termination of Employment, the Committee
determines that the Participant's Employment could have been terminated for
Cause had the Participant still been employed or has otherwise engaged in
conduct that is detrimental to the interests of the Company, as determined by
the Committee in its sole discretion), all Options held by the Participant shall
immediately terminate, regardless of whether then exercisable. In the event of a
Participant's termination of Employment for any reason not described in the
preceding two sentences, the Participant (or, in the event of the Participant's
death or Disability during the period during which an Option is exercisable
under this sentence, the Participant's beneficiary, estate or legal
representative) may exercise any Option that was exercisable at the time of such
termination for 90 days (or such greater or lesser period as the Committee shall
specify at or after the grant of such Option) following the date of such
termination, but in no event after the date the Option otherwise expires.

6.   STOCK APPRECIATION RIGHTS.

     (a) Grant of SARs.

     The Committee shall have the authority to grant Stock Appreciation Rights
in tandem with an Option, in addition to an Option, or freestanding and
unrelated to an Option. Stock Appreciation Rights granted in tandem or in
addition to an Option may be granted either at the same time as the Option or at
a later time. Stock Appreciation Rights shall not be exercisable after the
expiration of seven years from the date of grant and shall have an exercise
price determined in the same manner as, and subject to the same conditions as
apply with respect to, a Nonstatutory Stock Option under Section 5(b).

     (b) Exercise of SARs.

     A Stock Appreciation Right shall entitle the Participant to receive from
the Company an amount equal to the excess of the Fair Market Value of a Common
Share on the date of exercise of the Stock Appreciation Right over the exercise
price thereof. The Committee shall determine the time or times at which or the
event or events (including, without limitation, a Change of Control) upon which
a Stock Appreciation Right may be exercised in whole or in part, the method of
exercise and whether such Stock Appreciation Right shall be settled in cash,
Common Shares or a combination of cash and Common Shares; provided, however,
that unless otherwise specified by the Committee at or after grant, a Stock
Appreciation Right granted in tandem with an Option shall be exercisable only at
the same time or times as the related Option is exercisable.

7.   RESTRICTED SHARES.

     (a) Grant of Restricted Shares.

     The Committee may grant Awards of Restricted Shares with or without
performance criteria to Eligible Employees at such times and in such amounts,
and subject to such other terms and conditions not inconsistent with the Plan,
as it shall determine. Each grant of Restricted Shares shall be evidenced by an
Award Agreement. Unless the Award Agreement shall otherwise provide or the
Committee provides

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otherwise after the date of grant, stock certificates evidencing any Restricted
Shares so granted shall be held in the custody of the Secretary of the Company
until the Restricted Period lapses, and, as a condition to the grant of any
Award of Restricted Shares, the Participant shall have delivered to the
Secretary of the Company a certificate, endorsed in blank, relating to the
Common Shares covered by such Award.

     (b) Termination of Employment.

     Unless the Award Agreement shall otherwise provide or the Committee
otherwise determines after grant, the rights of a Participant with respect to an
Award of Restricted Shares outstanding at the time of the Participant's
termination of Employment shall be determined under Section 5(d). Unless the
Award Agreement shall otherwise provide or the Committee otherwise determines,
any portion of any Restricted Shares Award that has not become vested at the
date of a Participant's termination of Employment shall be forfeited as of such
date.

     (c) Restricted Period; Restrictions on Transferability during Restricted
Period.

     Unless the Award Agreement shall otherwise provide or otherwise determined
by the Committee after the date of grant, the Restricted Period applicable to
any Award of Restricted Shares shall lapse, and the shares related to such Award
of Restricted Shares shall become freely transferable, at such time as may be
determined by the Committee. Restricted Shares may not be sold, assigned,
pledged or otherwise encumbered, except as herein provided, during the
Restricted Period. Any certificates issued in respect of Restricted Shares shall
be registered in the name of the Participant and deposited by such Participant,
together with a stock power endorsed in blank, with the Company.

     (d) Delivery of Shares.

     Upon the expiration or termination of the Restricted Period and the
satisfaction (as determined by the Committee) of any other conditions determined
by the Committee, the restrictions applicable to the Restricted Shares shall
lapse and a stock certificate for the number of Common Shares with respect to
which the restrictions have lapsed shall be delivered, free of all such
restrictions, except any that may be imposed by law, to the Participant or the
Participant's beneficiary, estate or legal representative, as the case may be.
No payment will be required to be made by the Participant upon the delivery of
such Common Shares and for cash, except as otherwise provided in Section 11(a)
of the Plan. At or after the date of grant, the Committee may accelerate the
vesting of any Award of Restricted Shares or waive any conditions to the vesting
of any such Award.

     (e) Rights as a Shareholder; Dividends.

     Unless the Award Agreement shall otherwise provide or otherwise determined
by the Committee after the date of grant, Participants granted Restricted Shares
shall be entitled to vote the shares and to receive, either currently or at a
future date, as specified by the Committee, all dividends and other
distributions paid with respect to those shares, provided that if any such
dividends or distributions are paid in Common Shares or other property (other
than cash), such shares and other property shall be subject to the same
forfeiture restrictions and restrictions on transferability as apply to the
Restricted Shares with respect to which they were paid. The Committee will
determine whether and to what extent to credit to the account of, or to pay
currently to, each recipient of Restricted Shares, an amount equal to any
dividends paid by the Company during the Restricted Period with respect to the
corresponding number of Common Shares. To the extent provided by the Committee
at or after the date of grant, any dividends with respect to cash dividends on
the Common Shares credited to a Participant's account shall be deemed to have
been invested in Common Shares on the record date established for the related
dividend and, accordingly, a number of additional Restricted Shares shall be
credited to such Participant's account equal to the greatest

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whole number that may be obtained by dividing (x) the value of such dividend on
the record date by (y) the Fair Market Value of a Common Share on such date.

8.   PERFORMANCE AWARDS.

     (a) Performance Shares and Performance Units.

     1. Performance Periods and Grants. Subject to the provisions of the Plan,
the Committee shall have the authority to grant Performance Shares and
Performance Units to any Eligible Employee and to determine (i) the number of
Performance Shares and the number of Performance Units to be granted to each
Participant and (ii) the other terms and conditions of such Awards. The
Committee shall certify that the applicable performance objectives established
by the Committee have been attained prior to the payment of any Award hereunder
to a Named Executive Officer and shall establish procedures for determining
payout of Awards for other Participants. Such performance objectives may be
related to the performance of (i) the Company, (ii) a Subsidiary, (iii) a
division or unit of the Company or any Subsidiary, (v) the Participant or (vi)
any combination of the foregoing, over a measurement period or periods
established by the Committee. Performance Periods may overlap and Participants
may participate simultaneously with respect to Performance Shares or Performance
Units for which different Performance Periods are prescribed. Unless the
Committee otherwise determines at the time, the actual grant of Performance
Shares or Performance Units shall not be made until the end of the applicable
Performance Period, though the maximum number of Common Shares potentially
applicable to such Award under the particular program shall be reserved under
the Plan.

     2. Performance Objectives. With respect to any Executive Officer, the
performance objectives with respect to such Award shall be expressed in terms of
any of the following criteria, which may be determined solely by reference to
the performance of the Company or a Subsidiary or based on comparative
performance relative to other companies: (i) total return to shareholders, (ii)
return on equity, (iii) operating income or net income, (iv) return on capital,
(v) economic value added, (vi) earnings per Common Share, (vii) earnings before
interest, taxes, depreciation and amortization, (viii) cost reductions or
savings, (ix) increase in surplus, (x) productivity improvements, (xi) return on
invested capital, (xii) market price of the Common Shares, and (xii) total
shareholder return. The Committee may, at any time and from time to time, change
the performance objectives applicable with respect to future any Performance
Shares or Performance Units to reflect such factors, including, without
limitation, changes in a Participant's duties or responsibilities or changes in
business objectives (e.g., from corporate to Subsidiary or business unit
performance or vice versa), as the Committee shall deem necessary or
appropriate. Payment for Performance Shares or Performance Units shall be made
by the Company in Common Shares, cash or in any combination thereof, as
determined by the Committee.

     3. Adjustments. The Committee is authorized at any time during or after a
Performance Period to reduce or eliminate the Performance Share Award of any
Participant for any reason, including, without limitation, changes in the
position or duties of any Participant with the Company during or after a
Performance Period, whether due to any termination of employment (including
death, disability, retirement, voluntary termination or termination with or
without cause) or otherwise. In addition, to the extent necessary to preserve
the intended economic effects of the Plan to the Company and the Participant,
the Committee shall adjust performance objectives, the Performance Share Awards
or Performance Units or each of these to take into account: (i) a change in
corporate capitalization, (ii) a corporate transaction, such as any merger of
the Company or any subsidiary into another corporation, any consolidation of the
Company or any Subsidiary into another corporation, any separation of the
Company or any Subsidiary (including a spin-off or the distribution of stock or
property of the Company or any subsidiary), any reorganization of the Company or
any subsidiary or a large, special and non-recurring dividend paid or
distributed by the Company (whether or not such reorganization comes within the

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definition of Section 368 of the Code), (iii) any partial or complete
liquidation of the Company or any Subsidiary or (iv) a change in accounting or
other relevant rules or regulations; provided, however, that no adjustment
hereunder shall be authorized or made if and to the extent that the Committee
determines that such authority or the making of such adjustment would cause the
Performance Shares or Performance Units to fail to qualify as "qualified
performance-based compensation" under Section 162(m) of the Code with respect to
a particular Participant.

     (b) Termination of Employment.

     Unless the Committee otherwise determines at or after grant, the rights of
a Participant with respect to an Award of Performance Shares or Performance
Units where the applicable Performance Period has not lapsed at the time of the
Participant's termination of Employment shall be determined under this Section
8(b). In the event a Participant terminates employment for any reason during a
Performance Period, he or she (or his or her Beneficiary, in the case of death)
shall not be entitled to receive any Performance Award for such Performance
Period unless the Committee, in its sole and absolute discretion, elects to pay
all or any part of a Performance to such Participant. in the event that a
Participant's Employment terminates due to the Participant's (i) death, (ii)
Disability, or (iii) Normal Retirement, any Award of Performance Shares or
Performance Units shall be forfeited; provided that, the Committee may at the
end of the applicable Performance Period make the award as to that number of
shares or units that is equal to that percentage, if any, of such award that
would have been earned based on the attainment or partial attainment of such
performance objectives. In all other cases, any portion of any Award of
Performance Shares or Performance Units that has not become nonforfeitable at
the date of a Participant's termination of Employment shall be forfeited as of
such date.

     (c) Awards Nontransferable

     Performance Shares or Performance Units shall not be deemed granted until
the end of the applicable Performance Period and may not be sold, assigned,
pledged or otherwise encumbered, except as herein provided, during the
Performance Period. Upon grant of the Performance Shares or payout of
Performance Units, in the case of payouts in Common Shares, the Common Shares
issuable may be subject to such restrictions as are determined by the Committee.

     (d) Award of Dividend Equivalents.

     Unless otherwise determined by the Committee at or after the date of grant,
Participants granted Performance Shares or Performance Units shall be entitled
to receive, either currently or at a future date, as specified by the Committee,
all dividends and other distributions paid with respect to those shares and
units, provided that if any such dividends or distributions are paid in Common
Shares or other property (other than cash), such shares and units and other
property shall be subject to the same forfeiture restrictions and restrictions
on transferability as apply to the Performance Shares and Performance Units with
respect to which they were paid. The Committee will determine whether and to
what extent to credit to the account of, or to pay currently to, each recipient
of Performance Shares or Performance Units, an amount equal to any dividends
paid by the Company during the period of deferral with respect to the
corresponding number of Common Shares ("Dividend Equivalents"). To the extent
provided by the Committee at or after the date of grant, any Dividend
Equivalents with respect to cash dividends on the Common Shares credited to a
Participant's account shall be deemed to have been invested in Common Shares on
the record date established for the related dividend and, accordingly, a number
of additional Performance Shares or Performance Units shall be credited to such
Participant's account equal to the greatest whole number that may be obtained by
dividing (x) the value of such Dividend Equivalent on the record date by (y) the
Fair Market Value of a Common Share on such date. Amounts that may become due
hereunder shall be paid in accordance with Section 409A of the Code to the
extent applicable.

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9.   STOCK IN LIEU OF CASH.

     The Committee may grant Awards or Common Shares in lieu of all or a portion
of an award otherwise payable in cash to an Executive Officer pursuant to any
bonus or incentive compensation plan of the Company. If shares are issued in
lieu of cash, the number of Common Shares to be issued shall be the greatest
number of whole shares that has an aggregate Fair Market Value on the date the
cash would otherwise have been payable pursuant to the terms of such other plan
equal to or less than the amount of such cash.

10.  CHANGE IN CONTROL.

     (a) Accelerated Vesting and Payment.

     Subject to the provisions of Section 10(b) below, in the event of a Change
in Control, each Option and Stock Appreciation Right shall promptly be canceled
in exchange for a payment in cash of an amount equal to the excess of the Change
in Control Price over the exercise price for such Option or the exercise price
for such Stock Appreciation Right, whichever is applicable; the Restricted
Period applicable to all Restricted Shares, and the Performance Period
applicable to Performance Shares and Performance Units shall expire and all such
shares shall become non forfeitable and immediately transferable and the Common
Shares with respect thereto shall be immediately payable.

     (b) Alternative Awards.

     Notwithstanding Section 10(a), no cancellation, acceleration of
exercisability, vesting, cash settlement or other payment shall occur with
respect to any Award or any class of Awards if the Committee reasonably
determines in good faith prior to the occurrence of a Change in Control that
such Award or class of Awards shall be honored or assumed, or new rights
substituted therefor (such honored, assumed or substituted award hereinafter
called an "Alternative Award") by a Participant's new employer (or the parent or
a subsidiary of such employer) immediately following the Change in Control,
provided that any such Alternative Award must:

          (i) be based on stock that is traded on an established securities
     market, or which will be so traded within 60 days following the Change in
     Control;

          (ii) provide such Participant (or each Participant in a class of
     Participants) with rights and entitlements substantially equivalent to or
     better than the rights and entitlements applicable under any such Award or
     class of Awards, including, but not limited to, an identical or better
     exercise or vesting schedule and identical or better timing and methods of
     payment;

          (iii) have substantially equivalent economic value to such Award or
     class of Awards (determined by the Committee as constituted immediately
     prior to the Change in Control, in its sole discretion, promptly after the
     Change in Control); and

          (iv) have terms and conditions that provide that in the event that the
     Participant's Employment is involuntarily terminated or constructively
     terminated (other than for Cause) upon or following such Change in Control,
     any conditions on a Participant's rights under, or any restrictions on
     transfer or exercisability applicable to, each such Alterative Award shall
     be waived or shall lapse, as the case may be.

                                       19

<PAGE>

     For this purpose, a constructive termination shall mean a termination by a
Participant following a material reduction in the Participant's compensation, a
material reduction in the Participant's responsibilities or the relocation of
the Participant's principal place of Employment to another location a material
distance farther away from the Participant's home, in each case, without the
Participant's prior written consent.

                                       20

<PAGE>

11.  GENERAL PROVISIONS.

     (a) Withholding.

     The Company shall have the right to deduct from all amounts paid to a
Participant in cash (whether under this Plan or otherwise) any taxes required by
law to be withheld in respect of Awards under this Plan. In the case of any
Award satisfied in the form of Common Shares, no Common Shares shall be issued
unless and until arrangements satisfactory to the Committee shall have been made
to satisfy any withholding tax obligations applicable with respect to such
Award. Without limiting the generality of the foregoing and subject to such
terms and conditions as the Committee may impose, the Company shall have the
right to retain, or the Committee may, subject to such terms and conditions as
it may establish from time to time, permit Participants to elect to tender,
Common Shares (including Common Shares issuable in respect of an Award) to
satisfy, in whole or in part, the amount required to be withheld.

     (b) Awards.

     Each Award hereunder shall be evidenced in writing. The written agreement
shall be delivered to the Participant and shall incorporate the terms of the
Plan by reference and specify the terms and conditions thereof and any rules
applicable thereto.

     (c) Nontransferability.

     Unless the Committee shall permit (on such terms and conditions as it shall
establish) an Award to be transferred to a member of the Participant's immediate
family or to a trust or similar vehicle for the benefit of such immediate family
members (collectively, the "Permitted Transferees"), no Award shall be
assignable or transferable except by will or the laws of descent and
distribution, and except to the extent required by law, no right or interest of
any Participant shall be subject to any lien, obligation or liability of the
Participant. Except as otherwise expressly provided in this Plan, all rights
with respect to Awards granted to a Participant under the Plan shall be
exercisable during the Participant's lifetime only by such Participant or, if
applicable, the Permitted Transferees.

     (d) No Right to Employment.

     No person shall have any claim or right to be granted an Award, and the
grant of an Award shall not be construed as giving a Participant the right to
Employment. Further, the Company and each Subsidiary expressly reserves the
right at any time to terminate the Employment of a Participant free from any
liability or any claim under the Plan, except as provided herein or in any
agreement entered into with respect to an Award.

     (e) No Rights to Awards; No Shareholder Rights.

     No Participant or Eligible Employee shall have any claim to be granted any
Award under the Plan, and there is no obligation of uniformity of treatment of
Participants and Eligible Employees. Subject to the provisions of the Plan and
the applicable Award, no person shall have any rights as a shareholder with
respect to any Common Shares to be issued under the Plan prior to the issuance
thereof.

     (f) Forfeiture of Gains on Exercise

     Except following a Change in Control, if the Participant terminates
employment in breach of any covenants and conditions subsequent set forth in
Section 11(g) and becomes employed by a competitor of the Company within one
year after the date of exercise of any Option or the receipt of any Award, the

                                       21

<PAGE>

Participant shall pay to the Company an amount equal to any gain from the
exercise of the Option or the value of the Award other than Options, in each
case measured by the amount reported as taxable compensation to the Participant
by the Company for federal income tax purposes and in each case without regard
to any subsequent fluctuation in the market price of the shares of Common Shares
of the Company. Any such amount due hereunder shall be paid by the Participant
within thirty days of becoming employed by a competitor. By accepting an Option
or other Award hereunder, the Participant is authorizing the Company to
withhold, to the extent permitted by law, the amount owed to the Company
hereunder from any amounts that the Company may owe to the Participant in any
capacity whatsoever.

                                       22

<PAGE>

     (g) Condition Subsequent.

     Except after a Change in Control, the exercise of any Option or Stock
Appreciation Right and the receipt of any Award shall be subject to the
satisfaction of the following conditions subsequent: (i) that Participant
refrain from engaging in any activity that in the opinion of the Committee is
competitive with any activity of the Company or any Subsidiary, excluding any
activity undertaken upon the written approval or request of the Company, (ii)
that Participant refrain from otherwise acting in a manner inimical or in any
way contrary to the best interests of the Company, and (iii) that the
Participant furnish the Company such information with respect to the
satisfaction of the foregoing conditions subsequent as the Committee shall
reasonably request. In addition, except as may otherwise be excused by action of
the Committee, the Participant by the exercise of the Option or the receipt of
the Award agrees to remain in the employ of the Company, unless earlier
terminated by the Company or by the Participant by reason of his or her death,
disability or retirement.

     (h) Construction of the Plan.

     The validity, construction, interpretation, administration and effect of
the Plan and of its rules and regulations, and rights relating to the Plan,
shall be determined solely in accordance with the laws of the State of New York.

     (i) Legend.

     To the extent any stock certificate is issued to a Participant in respect
of an Award of Restricted Shares under the Plan prior to the expiration of the
applicable Restricted Period, such certificate shall be registered in the name
of the Participant and shall bear an appropriate legend. Upon the lapse of the
Restricted Period with respect to any such Restricted Shares, the Company shall
issue or have issued new share certificates without a legend in exchange for
those previously issued.

     (j) Effective Date.

     The effective date of this Plan is January 1, 2007. The Plan will become
effective as of that date provided that the Plan receives the approval, within
12 months of its approval by the Board, and the shareholders of the Company. If
such approval is not forthcoming, the Plan and all Awards shall be null and
void. No Awards may be granted under the Plan after December 31, 2017. Subject
to shareholder approval of the Plan, if the Committee so determines and the
holder thereof shall consent to any amendment to any outstanding award that has
an adverse affect on such holder's rights thereunder, the provisions of the Plan
shall apply to, and govern, existing awards under the Predecessor Plans and,
such awards shall be amended to provide such holder with any additional benefits
available hereunder.

     (k) Amendment of Plan.

     The Board or the Committee may amend, suspend or terminate the Plan or any
portion thereof at any time, provided that no amendment shall be made without
shareholder approval if such amendment would: increase the number of Common
Shares subject to the Plan, except pursuant to Section 4(c) change the price at
which Options may be granted; or remove the administration of the Plan from the
Committee. Without the written consent of an affected Participant, no
termination, suspension or modification of the Plan shall adversely affect any
right of such Participant under the terms of an Award granted before the date of
such termination, suspension or modification. To the Committee determined that
an amendment to the Plan or to any Awards issued under the Plan is required to
comply with Section 409A of the Code with respect to any Participant or Section
162(m) of the Code with respect to any Named Executive Officer, the Committee
may, without stockholder approval or approval of such Participant, amend the

                                       23

<PAGE>

Plan or any Award hereunder, retroactively or prospectively, to the extent it
determines necessary in order to comply with Sections 409A or 162(m) of the Code
to preserve an exemption therefrom, the Company's Federal income tax deduction
for compensation paid pursuant to the Plan and for avoid penalties to a
Participant or the Company. To the extent that any Awards issued hereunder are
or become subject to Section 409A of the Code, the provisions of this Plan and
such Award shall be interpreted to comply with the requirements of such section.

     (l) Application of Proceeds.

     The proceeds received by the Company from the sale of its shares under the
Plan will be used for general corporate purposes.

     (m) Compliance with Legal and Exchange Requirements.

     The Plan, the granting and exercising of Awards thereunder, and the other
obligations of the Company under the Plan, shall be subject to all applicable
federal and state laws, rules, and regulations, and to such approvals by any
regulatory or governmental agency as may be required. The Company, in its
discretion, may postpone the granting and exercising of Awards, the issuance or
delivery of Common Shares under any Award or any other action permitted under
the Plan to permit the Company, with reasonable diligence, to complete such
stock exchange listing or registration or qualification of such Common Shares or
other required action under any federal or state law, rule, or regulation and
may require any Participant to make such representations and furnish such
information as it may consider appropriate in connection with the issuance or
delivery of Common Shares in compliance with applicable laws, rules, and
regulations. The Company shall not be obligated by virtue of any provision of
the Plan to recognize the exercise of any Award or to otherwise sell or issue
Common Shares in violation of any such laws, rules, or regulations; and any
postponement of the exercise or settlement of any Award under this provision
shall not extend the term of such Awards, and neither the Company nor its
directors or officers shall have any obligation or liability to the Participant
with respect to any Award (or Common Shares issuable thereunder) that shall
lapse because of such postponement.

     (n) Deferrals.

     The Committee may postpone the exercising of Awards, the issuance or
delivery of Common Shares under any Award or any action permitted under the Plan
to prevent the Company or any of its Subsidiaries from being denied a federal
income tax deduction with respect to any Award other than an Incentive Stock
Option. Any such deferral shall comply with the provisions of Section 409A of
the Code to the extent it is applicable.

     (o) Beneficiary

     The Beneficiary of a Participant shall be the Participant's estate, which
shall be entitled to receive the Award, if any, payable under the Plan upon his
or her death. A Participant may file with the Company a written designation of
one or more persons as a Beneficiary in lieu of his or her estate, who shall be
entitled to receive the Award, if any, payable under the Plan upon his or her
death, subject to the enforceability of the designation under applicable law at
that time. A Participant may from time-to-time revoke or change his or her
Beneficiary designation, with or without the consent of any prior Beneficiary as
required by applicable law, by filing a new designation with the Company.
Subject to the foregoing, the last such designation received by the Company
shall be controlling; provided, however, that no designation, or change or
revocation thereof, shall be effective unless received by the Company prior to
the Participant's death, and in no event shall it be effective as of a date
prior to such receipt. If the Committee is in doubt as to the right of any
person to receive such Award, the Company may retain such

                                       24

<PAGE>

Award, without liability for any interest thereon, until the Committee
determines the rights thereto, or the Company may pay such Award into any court
of appropriate jurisdiction and such payment shall be a complete discharge of
the liability of the Company therefor.

                                        Adopted:

                                       25EX-10.1

 

Exhibit 10.1

LEASE

by and between

AMERICAN INTERNATIONAL COMPANY LIMITED

and

ALLIED WORLD ASSURANCE COMPANY, LTD

 

 

This LEASE (the “Lease”) has been made and entered into this 29th day of November, 2006,
by and between AMERICAN INTERNATIONAL COMPANY LIMITED, a company incorporated under the laws of the
Islands of Bermuda (hereinafter called the “Landlord”), of the one part and ALLIED WORLD ASSURANCE
COMPANY, LTD, a company incorporated under the laws of the Islands of Bermuda (hereinafter called
the “Tenant”), of the other part.

NOW THIS LEASE WITNESSES as follows:

1. DEFINITIONS

(1) “Land” shall mean the lot of land situate in Pembroke Parish in the said Islands owned
by the Landlord and outlined in red on the plan hereto annexed marked “i”.

(2) “Building” shall mean the new office building that has been erected by the Landlord on
the Land.

(3) “Premises” shall mean all those office premises comprising a total of 78,057 square
feet of rentable space on the top six floors and basement of the Building as shown
outlined in red and marked “ii”, “iii”, “iv”, “v”, “vi”, “vii” and “viii” on the floor
layout plans annexed and including:

(a) the floor finishes and floor screed including raised floors and floor jacks
supporting the same;

(b) the inner surface of the ceiling slabs of each ceiling of the Premises and
any void between any suspended ceilings and such inner surface;

(c) the inner half severed medially of the internal non-load bearing walls that
divide the Premises from other premises;

(d) the interior plaster and decorative finishes of all walls bounding the
Premises;

(e) the doors and windows and door frames and window frames bounding the
Premises;

(f) all additions and improvements to the Premises;

(g) all conducting media and conduits exclusively serving the Premises and light
fittings and air conditioning equipment incorporated in any ceiling or wall
within the Premises but not any other part of the air conditioning system;

but excluding the roof and roof space, the foundations of the Building, all external
structural or load bearing walls, columns, beams and supports that form part of the
Building, as well as all stairwells, elevator shafts, mechanical shafts and air vents AND
ALSO EXCLUDING for the purpose of calculating the Rents (only) the data rooms, the
electrical rooms and the janitor’s closets.

-1-

 

(4) “Landlord” and “Tenant” shall include the successors and permitted assigns and person
or persons for the time being deriving title from under the Landlord and the Tenant
respectively.

(5) “Rent” shall mean the rent provided for in Clause 3(a) hereof and any
increase thereof.

(6) “Rents” shall mean the Rent the User Fee and the Maintenance Expenses.

(7) “Term” shall mean the period of fifteen (15) years commencing on 1st
October 2006 and expiring on 30th September 2021.

(8) “Maintenance Expenses” shall mean the actual amount expended or allocated by the
Landlord (acting reasonably and properly) during each Maintenance Period with respect to
the costs, expenses and outgoings incurred by it with respect to the matters mentioned in
the Third Schedule.

(9) “Maintenance Period” shall mean the period from and including 1st October
2006 until and including 30th November 2006 and thereafter each financial year
of the Landlord that is the period of 12 calendar months commencing on the 1st
day of December in each year of the Term.

(10) “Services” shall mean the services for which the Landlord is responsible as detailed
in the Third Schedule.

(11) “Tenant’s Percentage” shall mean in respect of those services detailed in Part I of
the Third Schedule a percentage calculated (subject to the agreement of the parties to the
contrary) on the basis of the total square footage of the Premises as a percentage of the
total rentable square footage of the Building (whether or not the same is actually rented)
and in respect of those services detailed in Part II of the Third Schedule a percentage
calculated (subject to the agreement of the parties to the contrary) on the basis of the
total square footage of the Premises as a percentage of the total rentable square footage
of the Building and the AIG Building (whether or not the same is actually rented).

(12) “AIG Building” shall mean the Landlord’s building situate at and known as 29 Richmond
Road, Pembroke Parish.

(13) “Business Day” shall mean any day upon which banks in Bermuda are open for business.

(14) “Open Market Rent” shall mean the best rent which might reasonably be expected to be
paid by a willing tenant to a willing landlord for a letting of the Premises (on a floor
by floor basis) while taking into consideration any discount that may be appropriate for
the rental of the whole of the Premises in the open market with vacant possession and
without a fine or premium for a term equivalent to the then unexpired residue of the Term
commencing on the date of review and otherwise upon the same terms as this Lease (except
as to the amount of the Rent and the User Fee) and upon the assumption that:

-2-

 

(a) there has been a reasonable period in which to negotiate the terms of the letting
taking into account the nature of the Premises and the state of the market;

(b) no account will be taken of any additional rent which might be offered by a
prospective tenant with a special interest;

(c) all the covenants on the part of the Tenant contained in this Lease have been complied
with;

(d) if the Premises or any access or essential services to them have been destroyed or
damaged by a risk against which the Landlord is required to insure under the terms of this
Lease they have been fully restored;

(e) the Premises may lawfully be used for the purpose permitted by this Lease; and

(f) the willing tenant is to receive whatever rental concessions or other inducements may
at the time be usual on the grant of a new lease with vacant possession provided that such
concessions or inducements are granted for fitting out purposes only;

but disregarding:

(g) any effect on rent of the fact that the Tenant any undertenant or any of their
respective predecessors in title has been or is in occupation of the Premises;

(h) any goodwill attached to the Premises by reason of the carrying on of the business of
the Tenant any undertenant or their respective predecessors in title;

(i) any improvement to the Premises which (i) was carried out by and at the expense of the
Tenant or a permitted undertenant or any of their respective predecessors in title and
(ii) was not carried out pursuant to an obligation to the Landlord or its predecessors in
title under the terms of this Lease and (iii) was carried out with all consents required
under this Lease and (iv) was carried out and completed during the Term or during any
period of occupation immediately before the start of the Term under a licence or agreement
for lease;

(j) any work carried out to the Premises by the Tenant which diminishes the rental value
of the Premises at the relevant renewal date; and

(k) any temporary works of construction demolition alteration or repair being carried out
on the Premises.

(15) “User Fee” shall mean the sum specified in clause 3(a)(ii) hereof.

(16) “Tennis Court” means the tennis court located on the Land.

(17) “Review Date(s)” means each fifth anniversary of the date the Term commences during
the Term.

-3-

 

2. THE DEMISE

     IN CONSIDERATION of the Rent hereinafter reserved, and of the covenants on the part of the
Tenant hereinafter contained, the Landlord HEREBY DEMISES unto the Tenant ALL THAT the Premises
TOGETHER WITH the easements, rights and privileges mentioned in the First Schedule hereto, but
excepting and reserving as mentioned in the Second Schedule hereto, TO HOLD the same unto the
Tenant for the Term YIELDING AND PAYING THEREFOR to the Landlord during the first five years of the
Term the Rent set forth in Clause 3(a) hereof and thereafter with effect from each Review Date
such Rent as shall be agreed to between the Landlord and the Tenant, and failing agreement, to be
the Open Market Rent for the Premises determined by arbitration pursuant to clause 6(5) hereof (but
to be not less than the immediately preceding five-year-period Rent) and such Rent shall be paid
monthly in advance on the first day of every month in every year commencing with effect from
1st October 2006 AND in addition, the Tenant hereby covenants to pay to the Landlord the
User Fee specified in clause 3(a)(ii) AND with respect to each Maintenance Period the Tenant’s
Percentage of the Maintenance Expenses as set forth in Clause 3 hereof.

3. RENT AND MAINTENANCE EXPENSES

(a) The Tenant shall pay to the Landlord the following:

(i) annual Rent with respect to the Premises at the following rates (per floor)
for the first five years of the Term:

	 	 	 	 	 	 	 	 	 
	Seventh floor
	 	US$72.50 per sq. ft.	 	7,688 sq. ft.	 	US$557,380.00	 	per annum
	Sixth floor
	 	US$62.50 per sq. ft.	 	13,307 sq. ft.	 	US$831,687.50	 	per annum
	Fifth floor
	 	US$60.25 per sq. ft.	 	13,390 sq. ft.	 	US$806,747.50	 	per annum
	Fourth floor
	 	US$58.50 per sq. ft.	 	13,390 sq. ft.	 	US$783,315.00	 	per annum
	Third floor
	 	US$58.50 per sq. ft.	 	13,390 sq. ft.	 	US$783,315.00	 	per annum
	Second floor
	 	US$54.00 per sq. ft.	 	13,390 sq. ft.	 	US$723,060.00	 	per annum
	Basement Storage
	 	US$27.00 per sq. ft.	 	3,502 sq ft.	 	US$94,554.00	 	per annum

Accordingly, the Tenant shall pay US$4,580,059.00 to the Landlord annually for the first
five years of the Term by payments of US$381,671.58 per month payable in advance on the
first day of every month in every year commencing on 1st October 2006 ; and

(ii) from (and including) the 1st January 2007 and thereafter throughout the Term,
an annual User Fee in respect of the Tenant’s use of the cafeteria situated on the
ground floor of the Building and shown outlined in blue on the plan marked “ix”
hereto annexed,

-4-

 

which comprises approximately 3,837 square feet (the “Cafeteria”) and the fitness
centre situated on the basement floor of the Building and shown outlined in green
on the said plan marked “viii” hereto annexed which comprises approximately 4,083
square feet (the “Fitness Centre”) AND the User Fee shall for the period from (and
including) the 1st January 2007 to (and including) the 30th September,
2011 be $140,561.98 per annum (being the aggregate of $91,747.71 per annum for the
Cafeteria and $48,814.71 per annum for the Fitness Centre) (apportioned as
necessary for any part of a year) and shall be payable in advance (with the Rent)
by way of equal monthly instalments each in the sum of $11,713.50 (apportioned as
necessary for any part of a month) AND on the first Review Date and on each Review
Date thereafter during the Term, the User Fee shall increase by a rate that
equates to the percentage rate of increase of the Rent payable in respect of the
Second Floor of the Building (as determined in accordance with clause 2 hereof).

(b) The Tenant shall also pay to the Landlord by way of additional Rent the Tenant’s
Percentage of the Maintenance Expenses and from the date of commencement of the Term until
30th November 2007 the Tenant shall pay to the Landlord an amount on account of
the Tenant’s Percentage of the Maintenance Expenses in the sum of $11.00 per square foot
of the Premises the Cafeteria and the Fitness Centre per annum and payable by payments
of US$ 74,766.98 per month in advance on the first day of every month commencing on the
1st October 2006.

(c) At any time prior to the 1st December 2007 and at any time or times during
or immediately prior to each Maintenance Period thereafter, the Landlord may serve written
notice on the Tenant notifying the Tenant of the amount that the Landlord reasonably
estimates the Maintenance Expenses to be with respect to that Maintenance Period or the
next Maintenance Period together with details of the Tenant’s Percentage of the same and
thereupon the Tenant shall pay to the Landlord the Tenant’s Percentage by equal monthly
payments in advance on the 1st day of each month

(d) As soon as is reasonably practicable after the end of each Maintenance Period the
Landlord shall cause accounts to be prepared showing the Maintenance Expenses and the
Tenant’s Percentage thereof, and if the Tenant shall in writing so request, the Landlord
shall provide supporting documentation for all Maintenance Expenses incurred. For the
avoidance of doubt, the accounts prepared by or on behalf of the Landlord relating to Part
I of the Third Schedule shall relate to its costs in respect of the Building only and not
(either in whole or part) to the AIG Building. If the sums paid to the Landlord by the
Tenant in accordance with sub-

-5-

 

clauses (b) or (c) hereof shall exceed the Tenant’s Percentage of the Maintenance
Expenses, then such excess shall be carried forward to the Tenant’s account and set off
against its liability for the next Maintenance Period or any succeeding Maintenance Period
or periods and shall be repaid to the Tenant on the termination of the Term, and if the
sums paid to the Landlord by the Tenant in accordance with sub-clauses (b) or (c) hereof
shall be less than the Tenant’s proportion of the Maintenance Expenses, then such
shortfall shall be made up by the Tenant within ten (10) Business Days of written demand
by the Landlord.

(e) Notwithstanding the contents of sub-clauses (b), (c) and (d) hereof, the Landlord may
demand by notice in writing to the Tenant, and the Tenant shall pay, the Tenant’s
Percentage of the costs of any significant expense incurred or necessary for the Landlord
to carry out its maintenance obligations as set out in the Third Schedule hereto.

(f) The Rent and Maintenance Expenses for the first and last months of the Term shall be
apportioned if necessary and any credit under sub-clause (d) hereof or any payment towards
a reserve fund under sub-clause (e) hereof shall be repaid to the Tenant at the end of the
Term.

(g) Where any payments due under this Clause 3 would otherwise fall to be paid on a date
that is not a Business Day such payment shall be due on the last Business Day immediately
preceding such date.

(h) On the date of completion of the fit out works relating to the Cafeteria and the
Fitness Centre respectively as well as the completion of the works relating to the Tennis
Court, or (if later) within ten (10) Business Days of receipt of a written demand from the
Landlord, the Tenant shall pay to pay fifty percent (50%) of all costs reasonably incurred
by the Landlord in relation to to such works (or any of them) and the Landlord shall
provide copy invoices or other documentary evidence acceptable to the Tenant (acting
reasonably) to support the demand.

4. TENANT’S COVENANTS

THE TENANT, to the intent that the obligations may continue throughout the Term, hereby
covenants with the Landlord as follows:

(1) To pay Rent hereby reserved and the Maintenance Expenses at the times and in the
manner aforesaid without any deductions whatsoever.

(2) To pay all telephone charges incurred by the Tenant.

(3) To keep the interior of the Premises and the fixtures therein and the interior and
exterior doors and windows thereof including the glass in good repair and condition
(provided always that the Tenant shall not be responsible for cleaning the exterior of the
external windows in the Premises).

(4) Not without the previous consent in writing of the Landlord (which consent shall not
be unreasonably withheld or delayed) to cut, alter or

-6-

 

injure or permit to be cut, altered or injured any of the main walls, timbers or floors or
any other part of the Premises or the Building or to make any alteration or addition to
the exterior of the Premises or any part of the Land.

(5) To repay to the Landlord the costs and expenses of any work carried out by the
Landlord caused by or resulting from damage caused by the Tenant, its servants, employees,
agents, visitors or sub-tenants to any part of the Land or the Building or resulting from
any negligent act or omission or breach of covenant of the Tenant, its servants, agents,
visitors or sub-tenants.

(6) To permit the Landlord and its duly approved Agent (if any) with or without workmen or
others at all reasonable times of the day upon giving 24 hours’ previous notice in writing
to enter the Premises to view the state, repair and condition thereof and upon the
Landlord serving upon the Tenant a notice specifying any defects or want of reparation
then and there found and requiring the Tenant forthwith to execute the same if the Tenant
shall not within the period of one month after such notice or sooner if requisite proceed
to repair and make good the same according to such notice and the covenants in that behalf
hereinbefore contained then to permit the Landlord to enter upon the Premises and execute
such repairs and the costs thereof shall be a debt due from the Tenant to the Landlord and
shall be forthwith recoverable by action.

(7) Subject to the Landlord providing the Tenant with a copy of the insurance policy for
the Property and any variations to the same made at any time during the Term not to do or
permit or suffer to be done or omitted anything on any part of the Premises or the Land
that may render void or voidable any insurance policy provided by the Landlord under the
terms of this Lease or that may increase the rate of premium payable with respect thereto.

(8) Not without the Landlord’s consent (which consent shall not be unreasonably withheld
or delayed) at any time during the Term to use or occupy or permit to be used or occupied
the Premises or any part thereof otherwise than as an office.

(9) Not to do or permit or suffer to be done on the Premises or the Land any act or thing
that may be or become illegal or a nuisance, disturbance, annoyance or inconvenience to
the Landlord or the other tenants or occupiers of the Land or the Building or the owners,
tenants or occupiers of any adjoining or neighboring land or that may deteriorate or tend
to deteriorate the value of the Land or the Building any part thereof.

(10) Not to assign or underlet or part with the possession of the Premises or any part
thereof without the consent in writing of the Landlord first being obtained (which consent
shall not be unreasonably withheld or delayed) and any and all governmental or regulatory
consents or

-7-

 

permissions; provided that, the Tenant shall notify the Landlord in writing of such
intention to assign, underlet (whether in whole or part) or part with the possession of
the Premises, and the Landlord shall have the right by notice in writing to the Tenant
within 30 days thereof to take such assignment or sub-lease on the terms that the Tenant
would have entered into with a third party, and as a condition of consent to any
assignment or underlease to a third party and contemporaneously therewith, the Landlord
may require to be made a party to such assignment or underlease of the Premises to signify
its consent to such assignment or underlease, which in the case of an assignment shall
contain a covenant by such intended assignee to perform the covenants on the part of the
Tenant contained in this Lease as if these covenants were therein repeated with the
substitution of the name of the intended assignee for the name of the Tenant and in the
case of an underlease shall contain a covenant to perform the covenants on the part of the
undertenant contained in the underlease and in both cases containing also a provision that
the proviso for re-entry contained in this Lease shall take effect as if the covenant
contained in such assignment or underlease were a covenant on the part of the Tenant
contained in this Lease and thereupon with respect to an assignment only the obligations
of the Tenant or other assigning party under this Lease or any such assignment as
aforesaid shall cease but without prejudice to any right of action against the Tenant or
other assigning party for any antecedent breach thereof; provided, however, that Tenant
hereby agrees to pay to the Landlord as additional rent 50% of the excess of (i) the sum
of any and all Rent and other consideration paid to Tenant by the assignee or underleasee
over (ii) the sum of any and all Rent and other consideration that would be payable by
Tenant to the Landlord pursuant to the terms of this Lease.

(11) Not to affix any placard, announcement, advertisement, name or sign upon the external
walls or in the windows of the Premises or write upon the Premises or any part of the
Building or the Land any name or sign except the Tenant’s name or business without the
consent in writing of the Landlord first being obtained, such consent not to be
unreasonably withheld or delayed.

(12) To observe the restrictions set out in the Fourth Schedule hereto.

(13) To conform to all reasonable regulations made by the Landlord from time to time in
accordance with the provisions of paragraph 2 of the Fourth Schedule hereto.

(14) Save where the Tenant exercises its option under clause 6(4) to renew the Term, at
the expiration or sooner determination of the Term, if so required by the Landlord to make
the reinstatements to the Building design as set out in the Fifth Schedule in a good and
workmanlike manner and on completion of the required works, which shall be completed
before the said expiration or sooner determination of the Term, quietly to

-8-

 

	 	 	yield up unto the Landlord the Premises with all fixtures and fittings (other than the
Tenant’s fittings) that now or at any time during the Term shall be thereon or added
thereto in accordance with the obligations of the Tenant contained in this Lease and with
all locks and keys and fastenings complete.
	 
	 	 	 (15) The Tenant shall not at any time during the Term use the generator situated in the
basement of the Building (“the Generator”) for purposes other than those specified in the
schedule marked A hereto annexed without the Landlord’s prior written consent (which shall
not be unreasonably withheld or delayed) and the Tenant shall not in any event use more
than 60% of the Generator’s total available power capacity at Optimal Design Load as
described in Schedule A.
	 
	 	 	(16) The Tenant shall observe and perform all rules and regulations imposed by the
Landlord (acting reasonably) in respect of the use of the Cafeteria and the Fitness Centre
from time to time during the Term.
	 
	5.	 	LANDLORD’S COVENANTS
	 
	 	 	THE LANDLORD, hereby covenants with the Tenant as follows:
	 
	 	 	(l) That the Tenant paying the Rents hereby reserved and performing and observing the
covenants and stipulations herein on the Tenant’s part to be performed and observed shall
peaceably hold and enjoy the Premises during the Term without any interruptions by the
Landlord or any person rightfully claiming under or in trust for the Landlord.
	 
	 	 	(2) To keep the Building comprehensively insured against loss or damage, including
windstorm, public liability and such other risks as the Landlord may deem necessary in
some insurance office of good repute to the full reinstatement value thereof and to make
all payments necessary for that purpose before the same shall have become due and payable,
and to produce to the Tenant, if and when requested, the most recent valuation of the
Building, the policy of insurance and the receipt for the current year’s premium. In the
event that the Building, or any part thereof, shall be damaged or destroyed by an insured
cause, the Landlord shall use all insurance money received under the said insurance policy
to reinstate and make good the Building as soon as practicable after such damage or
destruction.
	 
	 	 	(3) That subject to the payments of the Rent, the User Fee and Maintenance Expenses
hereinbefore specified on the dates and in the manner hereinbefore provided, and subject
to the observance and performance of the covenants and stipulations herein contained and
on the part of the Tenant to be observed and performed, the Landlord will undertake the
obligations on its part detailed in Clause 3 and will carry out and perform or arrange for
the carrying out and performance of the several matters and things set forth in the Third
Schedule hereto and will defray

-9-

 

	 	 	the reasonable costs and expenses thereof PROVIDED ALWAYS and without prejudice to the
generality of the foregoing it is hereby expressly agreed that the Landlord may appoint
and remunerate at the current market rate a managing agent who shall be responsible to the
Landlord for carrying out and performing the several matters and things set forth in the
Third Schedule hereto and for arranging for the defraying of the costs and expenses
thereof.
	 
	 	 	(4) That leases of all or any part of the Building granted or to be granted by the
Landlord shall contain substantially the same covenants, stipulations and conditions as
are herein set forth except as to the dates of such leases and the amount of the rents
PROVIDED ALWAYS that nothing herein contained shall be construed to prevent the Landlord
from giving or selling by way of conveyance any minor part of the Land to any public
authority or body providing services of a public nature.
	 
	 	 	(5) To apply the Maintenance Expenses hereinbefore referred to and payable under the terms
of this Lease and all Maintenance Expenses payable by the tenants of all the other part or
parts of the Building to pay the insurance premiums referred to in Clause 5(2) hereof, and
the costs and expenses of carrying out the several matters and things set forth in the
Third Schedule hereto.
	 
	 	 	(6) To permit the Tenant to name the Building in accordance with the terms and conditions
contained in Clause 4(11) hereof.
	 
	6.	 	MUTUAL COVENANTS
	 
	 	 	IT IS MUTUALLY AGREED and DECLARED as follows:
	 
	 	 	(1) If the Rent or the User Fee or any part thereof shall be in arrears for the space of
30 days after the day whereon the same ought to be paid as aforesaid, whether formally
demanded or not or if any payment of Rent or the User Fee or the Maintenance Expenses or
any part thereof payable under Clause 3 hereof shall be unpaid for 30 days after becoming
due or after service of a notice served under the terms hereof or any covenant on the
Tenant’s part herein contained shall not be performed or observed or if the Tenant or
other person or persons in whom for the time being the Term shall be vested or any of them
shall become bankrupt or insolvent or make any assignment for the benefit of its creditors
or make any arrangements with its creditors for liquidation of its debts by composition or
otherwise or suffer any distress or process of execution to be levied on its goods then,
and in any such case, the Landlord may at any time thereafter by seven days notice in
writing to the Tenant terminate this Lease and on the expiry thereof this demise shall
absolutely cease and determine but without prejudice to any right of action that either
party may have against the other in respect of any antecedent breach of the Tenant’s
covenants or of any of the provisions and stipulations herein contained.

-10-

 

(2) Any notice under this Lease shall be in writing, and any notice to the Tenant shall be
sufficiently served if left addressed to the Tenant at the Premises or sent to the Tenant
at such address or left at or sent to its registered office by registered post, and any
notice to the Landlord shall be sufficiently served if delivered at or sent by registered
post to the Landlord at its registered office or at such other address as the Landlord
shall from time to time notify the Tenant in writing or sent to the Landlord’s managing
agent (if any) at that time by registered post at the address of such managing agent. Any
notice sent by post shall be deemed to be given at the time when in due course it would be
delivered at the address to which it is sent.

	(3)(i)	 	 In the event of the Building or the Premises or any part thereof at any time during
the Term being damaged so as to be unfit for occupation and use, and if the
Landlord’s policy or policies of insurance shall not have been rendered void or
voidable or payment of the policy monies refused in whole or in part by reason of any
act or default on the part of the Tenant, then the Rent or a fair proportion thereof
according to the nature and extent of the damage sustained shall be suspended until
the Building and the Premises shall again be rendered fit for occupation and use and
any dispute concerning this Clause shall be determined by arbitration in accordance
with the provisions of Clause 6(5) hereof.
	 
	(ii)	 	Provided that whenever insured damage occurs and the Premises or any part
thereof is damaged to such an extent that the rebuilding and reinstatement of the
same cannot be completed within a period of six months, then the Tenant shall be
entitled to terminate this Lease by serving a notice upon the Landlord setting out
the Tenant’s opinion in this regard and in the event that the notice is accepted by
the Landlord the Lease shall terminate at the expiration of 30 days from the date of
such notice, but without prejudice to any right of action that either party may have
against the other in respect of any antecedent breach by the other of the terms and
provisions of this Lease, and in the event that the notice is not accepted by the
Landlord, then the matter shall be determined by arbitration in accordance with the
provisions of Clause 6(5) hereof.
	 
	(4)(i)	 	 If the Tenant shall be desirous of renewing the Term hereby created for a further
term of ten years (the “Further Term”) following the expiration of the Term, it
shall give to the Landlord notice in writing to that effect not less than 12 months’
before the expiration of the Term and provided that at the date of giving such
notice, and at the date of termination of the Term the Tenant shall have paid the
Rents hereby reserved together with any other sums

-11-

 

	 	 	due hereunder and shall have performed and observed in all material respects the
several covenants, conditions and provisions herein contained and on the part of
the Tenant to be performed and observed, then the Landlord will grant a new Lease
of the Premises to the Tenant for the Further Term commencing on the day
immediately following the expiration of the Term (the “New Commencement Date”)
at a rent to be agreed to between the Landlord and the Tenant, subject to the
same covenants and provisions as are herein contained including rent reviews at
the same intervals and on the same terms as contained herein but save and except
for the amounts of Rents (which shall be determined for the first five years of
the Further Term under sub-clause (ii) of this clause 6(4) and thereafter
subject to review) and save and except this present provision for renewal.
	 
	(ii)	 	the Rent for the first five years of the Further Term commencing on the New
Commencement Date, shall be calculated by reference to the Rent payable by the Tenant
during the last year of the Term, increased by a rate to be agreed between the
Landlord and the Tenant and failing such agreement to be determined by reference to
the Open Market Rent payable in respect of the Premises (on a floor by floor basis)
for a period of ten years (subject to a review on the fifth anniversary thereof)
from the New Commencement Date and decided by arbitration in accordance with clause
6(5) hereof;
	 
	(iii)	 	the User Fee for the first five years of the Further Term commencing on
the New Commencement Date shall be calculated by reference to the User Fee payable by
the Tenant during the last year of the Term, increased by a rate that equates to the
percentage rate of increase of the Rent payable in respect of the Second Floor of the
Building as calculated pursuant to the provisions of clause 6(4)(ii) above and the
User Fee for the remaining five years of the Further Term shall increase by a rate
that equates to the percentage rate increase of the Rent payable in respect of the
Second Floor during this period .

(5) Where this Lease provides that a dispute question or matter arising between the
parties hereto shall be decided by arbitration, the matter shall be submitted to
arbitration within the meaning of The Arbitration Act l986, or any act amending or
replacing the same for the time being in force and decided by a sole arbitrator who shall
be appointed by agreement between the parties or in the absence of agreement by the
President from time to time of the Bermuda Bar Association. Any such arbitration shall be
held in Bermuda and the procedures shall be decided by the arbitrator.

-12-

 

The decision of such arbitrator shall be final and binding on the parties hereto.

(6) The Landlord shall not be liable to the Tenant for any loss of profits, business
interruption loss, or any economic or other loss or damage arising from the interruption
of the services provided in or to the Building, including any interruptions affecting the
air conditioning supply, and/or the electricity supply (whether from the Bermuda Electric
Light Company Limited, the Generator, or otherwise), save to the extent that such
interruption is caused by gross negligence or willful default on the part of the Landlord
its agents or employees.

IN WITNESS WHEREOF, the parties to these presents have caused their Common Seals to be hereunto
affixed the day and year first before written.

THE FIRST SCHEDULE BEFORE REFERRED TO

(Tenant’s Easements, Rights and Privileges)

	1.	 	The free uninterrupted passage of running water, electricity, gas and other utilities and
soil and waste from and to the Premises through the sewers, drains, water-courses, cables,
pipes, wires, fiber optic cables and apparatus that now are or may at any time hereafter be
in, under or passing through the Land and/or the Building or any part thereof provided that,
in the event of any services that pass through other parts of the Building require attention,
the Tenant may with or without workmen have access to such other parts of the Building as may
be strictly necessary for that purpose and will be responsible for ensuring that no
unnecessary inconvenience is caused and that any damage done is forthwith made good in a
satisfactory manner and at the Tenant’s expense.
	 
	2.	 	The right to subjacent and lateral support and to shelter and protection from the other part
of the Building and from the site and roof thereof.
	 
	3.	 	The use at all times, in common with the Landlord and the other tenants of the Building, of
the entrance, lobbies, stairways and elevators for the purpose only of ingress and egress from
the Premises and where the Premises do not comprise an entire floor use of the common toilet
facilities.
	 
	4.	 	The right in common with other occupiers of the Building and the occupiers of the AIG
Building to use the car and cycle parking spaces shown on the plans marked “x” and “xi” hereto
annexed on a first-come, first-serve basis (excluding four car and one cycle parking spaces
which will be designated and reserved for use by the Landlord), and the exclusive right to use
four such car and one such cycle parking spaces which shall be designated and reserved for use
by the Tenant only.
	 
	5.	 	The use, in common with the other tenants of the Building and the AIG Building, of the
Fitness Centre and Cafeteria in the Building and related

-13-

 

	 	 	common areas subject to paying its proportion of the costs associated with running the
same.
	 
	6.	 	The use in common with the Landlord and other occupiers of the Building of the Generator
provided always that the parties agree that the Tenant shall be entitled to use the same to
generate output up to a maximum of 60% of the Generator’s total available capacity at Optimal
Design Load as described in Schedule A and the Landlord and other occupiers of the Building
and the AIG Building shall be entitled to use the same up to a maximum of 40% of the
Generator’s total available capacity at Optimal Design Load as described in Schedule A.
	 
	7.	 	The exclusive use of the area designated “Terrace Area” and shaded yellow on the said plan
marked “vii”.

THE SECOND SCHEDULE BEFORE REFERRED TO

(Exceptions and Reservations)

There is excepted and reserved out of this Lease unto the Landlord and the other tenants of the
Building:

	l.	 	The right for the Landlord and its surveyors or agents with or without workmen and others at
all reasonable times on 24 hours’ prior notice (except in case of emergency in which case no
such notice is required) to enter the Premises for the purpose of carrying out the obligations
of the Landlord hereunder.
	 
	2.	 	Easements, rights and privileges equivalent to those set forth in the First Schedule hereto
for the owners and occupiers of the other part of the Building subject, in the case of the
rights set out in paragraph 6 of the First Schedule, to the proviso to that paragraph.

THE THIRD SCHEDULE BEFORE REFERRED TO

(Landlord’s Maintenance Obligations)

(Part I)

The management, maintenance and repair of the Building and all the facilities thereof and the
provisions of all services in connection therewith (excluding those additional services provided
in relation to the fitness facility and cafeteria in the Building as further detailed in Part II
of this Schedule), including (but without prejudice to the generality of the foregoing):

	l.	 	Maintaining in good and substantial repair and condition the main structure, exterior and
roof, including door and window frames of the Building and the tank and foundations thereof.
	 
	2.	 	The repairing, renewing, painting, glazing, maintaining, repainting and, when necessary, the
rebuilding of the Building (including the foundations and footings), the external walls and
external wood and ironwork, the joists, the roofs, canopies, the interior parts of the
Building, the air conditioning plant and equipment, the elevator systems, the drains, the

-14-

 

	 	 	pumps, the hot and cold water cisterns and pipes, the waste pipes, the main electricity
cables, the heating apparatus, the ventilating apparatus and shafts and the fire
prevention apparatus and security systems serving the Building.
	 
	3.	 	Cleansing, maintaining and lighting of the roadways, forecourts, loading bays, lobbies,
staircases, passages, landings and other common parts of the Building and Land.
	 
	4.	 	The cleaning of the exterior of all windows of the Building together with the interior of all
windows in the common parts of the Building at regular intervals.
	 
	5.	 	The provision and replacement of all light bulbs, fluorescent tubes and other light fittings
in all interior parts and exterior parts of the Building, as necessary throughout the Term.
	 
	6.	 	The treatment as required for the eradication or removal of any pests or vermin from the
common parts of the Building when necessary.
	 
	7.	 	The provision of janitorial services to the common parts of the Building.
	 
	8.	 	The provision of electronic security services to the boundary between the Landlord and Tenant
spaces.
	 
	9.	 	The provision of the fire alarm and sprinkler systems in the Building.
	 
	10.	 	The removal of refuse from the Building.
	 
	11.	 	Paying all existing and future rates taxes and assessments payable by law by the Landlord
with respect to the Building other than any rentable parts of the Building not forming part of
the Premises.
	 
	12.	 	Keeping all toilet facilities available for use in common with other occupiers of the
Building clean and in good repair and condition, and to provide fresh water to the Building.
	 
	13.	 	Maintaining the elevators in safe and good working condition 24 hours of the day.
	 
	14.	 	Paying all monies necessary to keep the whole of the Land and the Building insured against
loss or damage by fire, windstorm, public liability and such other risks as the Landlord may
deem necessary in some insurance office of good repute to the full reinstatement value
thereof.
	 
	15.	 	Paying any fees or expenses of a managing agent referred to in Clause 5(3) of this Lease.
	 
	16.	 	The cost of employing staff reasonably required for the performance of the duties and
services before mentioned and for the security of the Building and all other incidental
expenditures in relation to such employment, including (but not by way of limitation) the
payment of the statutory and such other insurance, health, welfare, pension and other
payments, contributions and premiums that the Landlord may in its discretion deem desirable or
necessary, including the provision of uniforms, working clothes, tools, appliances, cleaning
and other materials, bins, receptacles and other equipment for the proper performance of their
duties and all

-15-

 

	 	 	costs and expenses incurred in providing suitable accommodation within the Building.
	 
	17.	 	All other matters relating to the use and enjoyment of the Premises and specifically agreed
to be the responsibility of the Landlord.

Part II

	1.	 	The cost of maintaining and replacing the exercise and other equipment situated in the
Fitness Centre as well as the stove(s) oven(s) and other appliances and equipment situated in
the Cafeteria provided that the costs of replacement of any such equipment shall only be
included where the Tenant has given its prior consent to its replacement (such consent not to
be unreasonably withheld or delayed).
	 
	2.	 	The cost of employing staff reasonably required for the operation and management of both the
Fitness Centre and Cafeteria and all other incidental expenditures in relation to such
employment, including (but not by way of limitation) the payment of the statutory and such
other insurance, health, welfare, pension and other payments, contributions and premiums that
the Landlord may in its discretion deem desirable or necessary, including the provision of
uniforms, working clothes, tools, appliances, cleaning and other materials, bins, receptacles
and other equipment for the proper performance of their duties and all costs and expenses
incurred in providing suitable accommodation within the Building.
	 
	3.	 	The cost of keeping the Fitness Centre and Cafeteria insured against loss or damage by fire,
windstorm, public liability and such other risks as the Landlord may deem necessary (or where
such facilities are insured together with other land and/or buildings owned by the Landlord a
fair and reasonable proportion according to user of the costs of such policy) in some
insurance office of repute to the full reinstatement value thereof.
	 
	4.	 	The costs of supplying electricity to the Premises, the Fitness Centre, the Cafeteria and all
common parts of the Building.
	 
	5.	 	The cost of maintaining the landscaped areas around the Building and the AIG Building in good
condition at all times.
	 
	6.	 	The cost of maintaining the car park used by the Tenant and by the occupiers the Building and
the AIG Building in good and substantial repair and condition.
	 
	7.	 	The cost of maintaining the Tennis Court in good and substantial repair and condition.
	 
	8.	 	The cost of maintaining the Generator in good and substantial repair and condition.

-16-

 

THE FOURTH SCHEDULE BEFORE REFERRED TO

(Restrictions on Tenant — Covenant in Clause 4(12) hereof)

	1.	 	The Tenant shall not in any way encumber or interfere with the access to or egress from or
place or leave rubbish upon any part of the Land used in common with other tenants thereof
(other than such part thereof as is specifically reserved for such purpose) nor allow any car,
cycle, carriage or other vehicles or thing or any goods or packages belonging to the Tenant or
the Tenant’s servants, employees, agents or invitees to be placed or remain upon any part of
the Land used in common with other tenants (other than such part thereof as is specifically
reserved for such purpose).
	 
	2.	 	The Landlord reserves the right to make such other rules and regulations from time to time
(either in addition to or by way of substitution for these rules and regulations or any or
them) as the Landlord may reasonably deem needful for the safety, care and cleanliness of the
Land and the Building or for securing the comfort or convenience of the tenants thereof
generally, but nothing in this Clause shall without the prior consent of the Tenant impose on
the Tenant the burden or obligation to make increased financial payment.

THE FIFTH SCHEDULE

(Tenant’s reinstatement works)

1. Seventh
Floor powder room to be reinstated as a data closet.

2. Showers in seventh floor washrooms to be removed and toilet
reinstated.

3. Coffee stations on floors two to six inclusive to be removed.

	 	 	 	 	 
	THE COMMON SEAL of

	 	 	)	 
	AMERICAN INTERNATIONAL

	 	 	)	 
	COMPANY LIMITED was

	 	 	)	 
	hereunto affixed in the presence of:

	 	 	)	 
	 

	 	 	)	 
	Director/Director

	 	 	)	 
	 
	 	 	 	 
	/s/
George Cubbon
/s/ Lars Bergquist
	 	 	 	 
	 
	 	 	 	 
	THE COMMON SEAL of

	 	 	)	 
	ALLIED WORLD ASSURANCE

	 	 	)	 
	COMPANY, LTD was hereunto

	 	 	)	 
	affixed in the presence of:

	 	 	)	 
	 

	 	 	)	 
	Director/Secretary

	 	 	)	 
	 
	 	 	 	 
	/s/ Scott A. Carmilani
	 	 	 	 
	/s/ Wesley D. Dupont
	 	 	 	 

Stamps to the value of $400.00 have been affixed for the purpose of Stamp Duty.

-17-

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