Document:

EX-10.5

 Exhibit 10.5 

TENABLE HOLDINGS, INC. 

2018 EMPLOYEE STOCK PURCHASE PLAN 

ADOPTED BY THE BOARD OF DIRECTORS:
JUNE 28, 2018 
 APPROVED BY THE STOCKHOLDERS:
JULY 6, 2018 
 IPO DATE: JULY 25, 2018 

 

	1.	GENERAL; PURPOSE. 

 (a)    The
Plan provides a means by which Eligible Employees of the Company and certain Designated Companies may be given an opportunity to purchase shares of Common Stock. The Plan permits the Company to grant a series of Purchase Rights to Eligible Employees
under an Employee Stock Purchase Plan. 
 (b)    The Company, by means of the Plan, seeks to retain the services
of such Employees, to secure and retain the services of new Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations and Affiliates. 

(c)    The Plan includes two components: a 423 Component and a Non-423
Component. The Company intends (but makes no undertaking or representation to maintain) the 423 Component to qualify as an Employee Stock Purchase Plan. The provisions of the 423 Component, accordingly, will be construed in a manner that is
consistent with the requirements of Section 423 of the Code. In addition, this Plan authorizes grants of Purchase Rights under the Non-423 Component that do not meet the requirements of an Employee Stock
Purchase Plan. Except as otherwise provided in the Plan or determined by the Board, the Non-423 Component will operate and be administered in the same manner as the 423 Component. In addition, the Company may
make separate Offerings which vary in terms (provided that such terms are not inconsistent with the provisions of the Plan or the requirements of an Employee Stock Purchase Plan), and the Company will designate which Designated Company is
participating in each separate Offering. 
  

	2.	ADMINISTRATION. 

 (a)    The Board will
administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c). 

(b)    The Board will have the power, subject to, and within the limitations of, the express provisions of the
Plan: 
 (i)    To determine how and when Purchase Rights will be granted and the provisions of each Offering
(which need not be identical). 
 (ii)    To designate from time to time which Related Corporations will be
eligible to participate in the Plan as Designated 423 Corporations or as Designated Non-423 Corporations, which Affiliates may be excluded from participation in the Plan, and which Designated Companies will
participate in each separate Offering (to the extent that the Company makes separate Offerings). 
 (iii)    To
construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a
manner and to the extent it deems necessary or expedient to make the Plan fully effective. 

 (iv)    To settle all controversies regarding the Plan and Purchase
Rights granted under the Plan. 
 (v)    To suspend or terminate the Plan at any time as provided in
Section 12. 
 (vi)    To amend the Plan at any time as provided in Section 12. 

(vii)    Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote
the best interests of the Company, its Related Corporations, and Affiliates and to carry out the intent that the 423 Component be treated as an Employee Stock Purchase Plan. 

(viii)    To adopt such rules, procedures and sub-plans relating to the
operation and administration of the Plan as are necessary or appropriate under applicable local laws, regulations and procedures to permit or facilitate participation in the Plan by Employees who are foreign nationals or employed or located outside
the United States. Without limiting the generality of, but consistent with, the foregoing, the Board specifically is authorized to adopt rules, procedures, and sub-plans, which, if applicable to a Designated Non-423 Corporation, do not have to comply with the requirements of Section 423 of the Code, regarding, without limitation, eligibility to participate in the Plan, the definition of eligible
“earnings,” handling and making of Contributions, establishment of bank or trust accounts to hold Contributions, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation
requirements, withholding procedures and handling of share issuances, any of which may vary according to applicable requirements. 

(c)    The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If
administration is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. Further, to the extent not prohibited by applicable law, the Board or Committee may, from time to time, delegate some or all of its authority under the Plan to other persons
or groups of persons as it deems necessary, appropriate, or advisable under conditions or limitations that it may set at or after the time of the delegation. The Board may retain the authority to concurrently administer the Plan with the Committee
and may, at any time, revest in the Board some or all of the powers previously delegated. Whether or not the Board has delegated administration of the Plan to a Committee, the Board will have the final power to determine all questions of policy and
expediency that may arise in the administration of the Plan. 
 (d)    All determinations, interpretations and
constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons. 
  

	3.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN. 

(a)    Subject to the provisions of Section 11(a) relating to Capitalization Adjustments and the following
sentence regarding the Evergreen Increase, the initial number of shares of Common Stock that may be issued under the Plan shall equal 4,000,000 shares of Common Stock (the “Share Reserve”). In addition, the Share Reserve will
automatically increase on January 1st of each year for a period of up to 

  
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ten (10) years, commencing on January 1, 2019 and ending on (and including) January 1, 2028 (each, an “Evergreen Date”), in an amount equal to the
lesser of (i) one and one-half percent (1.5%) of the total number of shares of Capital Stock outstanding on December 31st immediately preceding
the applicable Evergreen Date, and (ii) 8,000,000 shares (the “Evergreen Increase”). Notwithstanding the foregoing, the Board may act prior to the Evergreen Date of a given year to provide that there will be no Evergreen
Increase for such year or that the Evergreen Increase for such year will be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding sentence. For the avoidance of doubt, up to the maximum number of shares of
Common Stock reserved under this Section 3(a) may be used to satisfy purchases of Common Stock under the 423 Component and any remaining portion of such maximum number of shares may be used to satisfy purchases of Common Stock under the Non-423 Component. 
 (b)    If any Purchase Right granted under the Plan
terminates without having been exercised in full, the shares of Common Stock not purchased under such Purchase Right will again become available for issuance under the Plan. 

(c)    The stock purchasable under the Plan will be shares of authorized but unissued or reacquired Common Stock,
including shares repurchased by the Company on the open market. 
  

	4.	GRANT OF PURCHASE RIGHTS; OFFERING. 

(a)    The Board may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under
an Offering (consisting of one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board. Each Offering will be in such form and will contain such terms and conditions as the Board will deem appropriate, and, with respect
to the 423 Component, will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will have the same rights and privileges. The terms and conditions of an Offering shall be incorporated by
reference into the Plan and treated as part of the Plan. The provisions of separate Offerings need not be identical, but each Offering will include (through incorporation of the provisions of this Plan by reference in the Offering Document or
otherwise) the period during which the Offering will be effective, which period will not exceed 27 months beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8, inclusive. 

(b)    If a Participant has more than one Purchase Right outstanding under the Plan, unless he or she otherwise
indicates in forms delivered to the Company or a third party designated by the Company (each, a “Company Designee”): (i) each form will apply to all of his or her Purchase Rights under the Plan, and (ii) a Purchase Right
with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) will be exercised to the fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted
Purchase Right if different Purchase Rights have identical exercise prices) will be exercised. 
 (c)    The
Board will have the discretion to structure an Offering so that if the Fair Market Value of a share of Common Stock on the first Trading Day of a new Purchase Period within that Offering is less than or equal to the Fair Market Value of a share of
Common Stock on the Offering Date for that Offering, then (i) that Offering will terminate immediately as of that first Trading Day, and (ii) the Participants in such terminated Offering will be automatically enrolled in a new Offering
beginning on the first Trading Day of such new Purchase Period. 

  
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	5.	ELIGIBILITY. 

 (a)    Purchase Rights may be
granted only to Employees of the Company or, as the Board may designate in accordance with Section 2(b), to Employees of a Related Corporation or an Affiliate. Except as provided in Section 5(b) or as required by applicable law, an
Employee will not be eligible to be granted Purchase Rights unless, on the Offering Date, the Employee has been in the employ of the Company, a Related Corporation or an Affiliate, as the case may be, for such continuous period preceding such
Offering Date as the Board may require, but in no event will the required period of continuous employment be equal to or greater than two years. In addition, the Board may provide that no Employee will be eligible to be granted Purchase Rights under
the Plan unless, on the Offering Date, such Employee’s customary employment with the Company, the Related Corporation, or the Affiliate, as applicable, is more than 20 hours per week and more than five months per calendar year or such other
criteria as the Board may determine consistent with Section 423 of the Code with respect to the 423 Component and applicable laws. 

(b)    The Board may provide that each person who, during the course of an Offering, first becomes an Eligible
Employee will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right will thereafter
be deemed to be a part of that Offering. Such Purchase Right will have the same characteristics as any Purchase Rights originally granted under that Offering, as described herein, except that: 

(i)    the date on which such Purchase Right is granted will be the “Offering Date” of such Purchase
Right for all purposes, including determination of the exercise price of such Purchase Right; 
 (ii)    the
period of the Offering with respect to such Purchase Right will begin on its Offering Date and end coincident with the end of such Offering; and 

(iii)    the Board may provide that if such person first becomes an Eligible Employee within a specified period of
time before the end of the Offering, he or she will not receive any Purchase Right under that Offering. 

(c)    No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such Purchase
Rights are granted, such Employee owns stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any Related Corporation. For purposes of this Section 5(c), the rules of
Section 424(d) of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all outstanding Purchase Rights and options will be treated as stock owned by such Employee. 

(d)    As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights only
if such Purchase Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations or Affiliates, do not permit such Eligible Employee’s rights to purchase stock of the Company or
any Related Corporation or Affiliates to accrue at a rate which, when aggregated, exceeds US$25,000 of Fair Market Value of such stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of
their respective Offering Dates) for each calendar year in which such rights are outstanding at any time, subject to compliance with applicable laws. 

  
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 (e)    Officers of the Company and any Designated Company, if they are
otherwise Eligible Employees, will be eligible to participate in Offerings under the Plan. Notwithstanding the foregoing, the Board may provide in an Offering that Employees who are highly compensated Employees within the meaning of
Section 423(b)(4)(D) of the Code will not be eligible to participate. 
 (f)    Notwithstanding anything in
this Section 5 to the contrary, in the case of an Offering under the Non-423 Component, an Eligible Employee (or group of Eligible Employees) may be excluded from participation in the Plan or an Offering
if the Board has determined, in its sole discretion, that participation of such Eligible Employee(s) is not advisable or practical for any reason. 
  

	6.	PURCHASE RIGHTS; PURCHASE PRICE. 

(a)    On each Offering Date, each Eligible Employee, pursuant to an Offering made under the Plan, will be granted a
Purchase Right to purchase up to that number of shares of Common Stock (rounded down to the nearest whole share) purchasable either with a percentage or with a maximum dollar amount, as designated by the Board, but in either case not exceeding 15%
of such Employee’s earnings (as defined by the Board in each Offering) during the period that begins on the Offering Date (or such later date as the Board determines for a particular Offering) and ends on the date stated in the Offering, which
date will be no later than the end of the Offering. 
 (b)    The Board will establish one or more Purchase Dates
during an Offering on which Purchase Rights granted for that Offering will be exercised and shares of Common Stock will be purchased in accordance with such Offering. 

(c)    In connection with each Offering made under the Plan, the Board may specify (i) a maximum number of
shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, (ii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant to such Offering and/or
(iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted
under the Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata (based on each Participant’s accumulated Contributions) allocation of the shares of Common Stock (rounded down to
the nearest whole share) available will be made in as nearly a uniform manner as will be practicable and equitable. 

(d)    The purchase price of shares of Common Stock acquired pursuant to Purchase Rights will be not less than the
lesser of: 
 (i)    an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the
Offering Date; or 
 (ii)    an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the
applicable Purchase Date. 
  

	7.	PARTICIPATION; WITHDRAWAL; TERMINATION. 

(a)    An Eligible Employee may elect to authorize payroll deductions as the means of making Contributions by
completing and delivering to the Company or Company Designee, within the time specified in the Offering, an enrollment form provided by the Company or Company Designee. The enrollment form will specify the amount of Contributions not to exceed the
maximum amount specified by the Board. Each Participant’s Contributions will be credited to a bookkeeping account for such Participant under the Plan and will be deposited with the general funds of the Company except where applicable laws or
regulations require that Contributions be deposited with a Company Designee or 

  
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otherwise segregated. If permitted in the Offering, a Participant may begin such Contributions with the first payroll occurring on or after the Offering Date (or, in the case of a payroll date
that occurs after the end of the prior Offering but before the Offering Date of the next new Offering, Contributions from such payroll will be included in the new Offering). If permitted in the Offering, a Participant may thereafter reduce
(including to zero) or increase his or her Contributions. If required under applicable laws or regulations or if specifically provided in the Offering, in addition to or instead of making Contributions by payroll deductions, a Participant may make
Contributions through a payment by cash, check, or wire transfer prior to a Purchase Date, in a manner directed by the Company or a Company Designee. 

(b)    During an Offering, a Participant may cease making Contributions and withdraw from the Offering by
delivering to the Company or a Company Designee a withdrawal form provided by the Company. The Company may impose a deadline before a Purchase Date for withdrawing. Upon such withdrawal, such Participant’s Purchase Right in that Offering will
immediately terminate and the Company will distribute as soon as practicable to such Participant all of his or her accumulated but unused Contributions and such Participant’s Purchase Right in that Offering shall thereupon terminate. A
Participant’s withdrawal from that Offering will have no effect upon his or her eligibility to participate in any other Offerings under the Plan, but such Participant will be required to deliver a new enrollment form to participate in
subsequent Offerings. 
 (c)    Unless otherwise required by applicable law, Purchase Rights granted pursuant to
any Offering under the Plan will terminate immediately if the Participant either (i) is no longer an Employee for any reason or for no reason or (ii) is otherwise no longer eligible to participate. In this regard, unless otherwise
determined by the Board, a Participant whose employment transfers or whose employment terminates with an immediate rehire (with no break in service) by or between the Company and a Designated Company will not be treated as having terminated
employment for purposes of participating in the Plan or an Offering; however, if a Participant transfers from an Offering under the 423 Component to an Offering under the Non-423 Component, the exercise of the
Participant’s Purchase Right will be qualified under the 423 Component only to the extent such exercise complies with Section 423 of the Code. If a Participant transfers from an Offering under the
Non-423 Component to an Offering under the 423 Component, the exercise of the Purchase Right will remain non-qualified under the
Non-423 Component. In the event that a Participant’s Purchase Right is terminated under the Plan, the Company will distribute as soon as practicable to such individual all of his or her accumulated but
unused Contributions. 
 (d)    During a Participant’s lifetime, Purchase Rights will be exercisable only by
such Participant. Purchase Rights are not transferable by a Participant, except by will, by the laws of descent and distribution, or, if permitted by the Company, by a beneficiary designation as described in Section 10. 

(e)    Unless otherwise specified in the Offering or required by applicable law, the Company will have no
obligation to pay interest on Contributions. 
  

	8.	EXERCISE OF PURCHASE RIGHTS. 

(a)    On each Purchase Date, each Participant’s accumulated Contributions will be applied to the purchase of
shares of Common Stock (rounded down to the nearest whole share), up to the maximum number of shares of Common Stock permitted by the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares will be
issued unless specifically provided for in the Offering. 

  
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 (b)    Unless otherwise provided in the Offering, if any amount of
accumulated Contributions remains in a Participant’s account after the purchase of shares of Common Stock and such remaining amount is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an
Offering, then such remaining amount will be held in such Participant’s account for the purchase of shares of Common Stock under the next Offering under the Plan, unless such Participant withdraws from or is not eligible to participate in such
Offering, in which case such amount will be distributed to such Participant after the final Purchase Date, without interest, unless the payment of interest is required by applicable laws. If the amount of Contributions remaining in a
Participant’s account after the purchase of shares of Common Stock is at least equal to the amount required to purchase one whole share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will not roll over to
the next Offering and will instead be distributed in full to such Participant after the final Purchase Date of such Offering without interest, unless the payment of interest is required by applicable laws. 

(c)    No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such
exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable U.S. federal and state, foreign and other securities, exchange control and other
laws applicable to the Plan. If on a Purchase Date the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights will be exercised on such Purchase Date, and the Purchase Date will be delayed until the
shares of Common Stock are subject to such an effective registration statement and the Plan is in material compliance, except that the Purchase Date will not be delayed more than 12 months and the Purchase Date will in no event be more than 27
months from the Offering Date. If, on the Purchase Date, as delayed to the maximum extent permissible, the shares of Common Stock are not registered and the Plan is not in material compliance with all applicable laws or regulations, as determined by
the Company in its sole discretion, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed as soon as practicable to the Participants without interest, unless the payment of interest is required by
applicable laws. 
  

	9.	COVENANTS OF THE COMPANY. 

The Company will seek to obtain from each U.S. federal or state, foreign or other regulatory commission or agency having jurisdiction over the
Plan such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder unless the Company determines, in its sole discretion, that doing so would cause the Company to incur costs that are unreasonable.
If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for the Company deems necessary for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and at a
commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or to issue and sell Common Stock upon exercise of such Purchase Rights. 

 

	10.	DESIGNATION OF BENEFICIARY. 

(a)    The Company may, but is not obligated to, permit a Participant to submit a form designating a beneficiary who
will receive any shares of Common Stock and/or Contributions from the Participant’s account under the Plan if the Participant dies before such shares and/or Contributions are delivered to the Participant. The Company may, but is not obligated
to, permit the Participant to change such designation of beneficiary. Any such designation and/or change must be on a form approved by the Company or as approved by the Company for use by a Company Designee. 

(b)    If a Participant dies, in the absence of a valid beneficiary designation, the Company will deliver any
shares of Common Stock and/or Contributions to the executor or administrator of the estate of the Participant. If no executor or administrator has been appointed (to the knowledge of the Company), 

  
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the Company, in its sole discretion, may deliver such shares of Common Stock and/or Contributions, without interest, unless the payment of interest is required by applicable laws, to the
Participant’s spouse, dependents or relatives, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  

	11.	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; CORPORATE TRANSACTIONS. 

(a)    In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust:
(i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities by which the share reserve is to increase automatically each year pursuant to
Section 3(a), (iii) the class(es) and number of securities subject to, and the purchase price applicable to outstanding Offerings and Purchase Rights, and (iv) the class(es) and number of securities that are the subject of the purchase
limits under each ongoing Offering. The Board will make these adjustments, and its determination will be final, binding and conclusive. 

(b)    In the event of a Corporate Transaction, then: (i) any surviving corporation or acquiring corporation
(or the surviving or acquiring corporation’s parent company) may assume or continue outstanding Purchase Rights or may substitute similar rights (including a right to acquire the same consideration paid to the stockholders in the Corporate
Transaction) for outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue such Purchase Rights or does not substitute similar rights for such Purchase Rights, then
the Participants’ accumulated Contributions will be used to purchase shares of Common Stock (rounded down to the nearest whole share) within ten business days prior to the Corporate Transaction under the outstanding Purchase Rights, and the
Purchase Rights will terminate immediately after such purchase. 
  

	12.	AMENDMENT, TERMINATION OR SUSPENSION OF THE PLAN. 

(a)    The Board may amend the Plan at any time in any respect the Board deems necessary or advisable. However,
except as provided in Section 11(a) relating to Capitalization Adjustments, stockholder approval will be required for any amendment of the Plan for which stockholder approval is required by applicable laws, regulations or listing requirements,
including any amendment that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase
Rights, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, (iv) materially extends the term of the Plan, or
(v) expands the types of awards available for issuance under the Plan, but in each of (i) through (v) above only to the extent stockholder approval is required by applicable laws, regulations, or listing requirements. 

(b)    The Board may suspend or terminate the Plan at any time. No Purchase Rights may be granted under the Plan
while the Plan is suspended or after it is terminated. 
 (c)    Any benefits, privileges, entitlements and
obligations under any outstanding Purchase Rights granted before an amendment, suspension or termination of the Plan will not be materially impaired by any such amendment, suspension or termination except (i) with the consent of the person to
whom such Purchase Rights were granted, (ii) as necessary to comply with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions of Section 423 of the Code and the regulations and other
interpretive guidance issued thereunder relating to Employee Stock Purchase Plans) including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date, or (iii) as necessary to obtain or
maintain any special tax, listing, or regulatory treatment. To be clear, the Board may amend outstanding Purchase Rights without a Participant’s consent if such amendment is necessary to ensure that the Purchase Right and/or the
423 Component complies with the requirements of Section 423 of the Code, or other applicable laws, listing requirements, or governmental regulations. 

  
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 Notwithstanding anything in the Plan to the contrary, the Board will be entitled to:
(i) permit Contributions in excess of the amount designated by a Participant in order to adjust for mistakes in the Company’s processing of properly completed Contribution elections; (ii) establish reasonable waiting and adjustment
periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s Contributions; (iii) amend any
outstanding Purchase Rights or clarify any ambiguities regarding the terms of any Offering to enable the Purchase Rights to qualify under and/or comply with Section 423 of the Code; and (iv) establish other limitations or procedures as the
Board determines in its sole discretion advisable that are consistent with the Plan. The actions of the Board pursuant to this paragraph will not be considered to alter or impair any Purchase Rights granted under an Offering as they are part of the
initial terms of each Offering and the Purchase Rights granted under each Offering. 
  

	13.	SECTION 409A OF THE CODE; TAX QUALIFICATION. 

(a)    Purchase Rights granted under the 423 Component are intended to be exempt from the application of
Section 409A of the Code under U.S. Treasury Regulation Section 1.409A-1(b)(5)(ii). Purchase Rights granted under the Non-423 Component to U.S. taxpayers
are intended to be exempt from the application of Section 409A of the Code under the short-term deferral exception and any ambiguities will be construed and interpreted in accordance with such intent. Subject to Section 13(b) below,
Purchase Rights granted to U.S. taxpayers under the Non-423 Component will be subject to such terms and conditions that will permit such Purchase Rights to satisfy the requirements of the short-term deferral
exception available under Section 409A of the Code, including the requirement that the shares subject to a Purchase Right be delivered within the short-term deferral period. Subject to Section 13(b) below, in the case of a Participant
who would otherwise be subject to Section 409A of the Code, to the extent the Board determines that a Purchase Right or the exercise, payment, settlement or deferral thereof is subject to Section 409A of the Code, the Purchase Right will
be granted, exercised, paid, settled or deferred in a manner that will comply with Section 409A of the Code, including U.S. Department of Treasury regulations and other interpretive guidance issued thereunder, including, without limitation, any
such regulations or other guidance that may be issued after the adoption of the Plan. Notwithstanding the foregoing, the Company will have no liability to a Participant or any other party if the Purchase Right that is intended to be exempt from
or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Board with respect thereto. 

(b)    Although the Company may endeavor to (i) qualify a Purchase Right for special tax treatment under the
laws of the United States or jurisdictions outside of the United States or (ii) avoid adverse tax treatment (e.g., under Section 409A of the Code), the Company makes no representation to that effect and expressly disavows any
covenant to maintain special or to avoid unfavorable tax treatment, notwithstanding anything to the contrary in this Plan, including Section 13(a) above. The Company will be unconstrained in its corporate activities without regard to the
potential negative tax impact on Participants under the Plan. 
  

	14.	TAX WITHHOLDING 

 The Participant will make adequate
provision to satisfy the Tax-Related Items withholding obligations, if any, of the Company and/or the applicable Designated Company which arise with respect to Participant’s participation in the Plan or
upon the disposition of the shares of the Common Stock. The Company and/or the Designated Company may, but will not be obligated to, withhold from the 

  
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Participant’s compensation or any other payments due the Participant the amount necessary to meet such withholding obligations or withhold from the proceeds of the sale of shares of Common
Stock or any other method of withholding that the Company and/or the Designated Company deems appropriate. The Company and/or the Designated Company will have the right to take such other action as may be necessary in the opinion of the Company or a
Designated Company to satisfy withholding and/or reporting obligations for such Tax-Related Items. 
  

	15.	EFFECTIVE DATE OF PLAN. 

 The
Plan will become effective immediately prior to and contingent upon the IPO Date. No Purchase Rights will be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval must be within 12 months before or
after the date the Plan is adopted (or if required under Section 12(a) above, materially amended) by the Board. 
  

	16.	MISCELLANEOUS PROVISIONS. 

(a)    Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of
the Company. 
 (b)    A Participant will not be deemed to be the holder of, or to have any of the rights of a
holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the Participant’s shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the books of the Company (or its transfer agent). 

(c)    The Plan and Offering do not constitute an employment contract. Nothing in the Plan or in the Offering will
in any way alter the at-will nature of a Participant’s employment, if applicable, or be deemed to create in any way whatsoever any obligation on the part of any Participant to continue in the employ of
the Company, a Related Corporation, or an Affiliate, or on the part of the Company, a Related Corporation or an Affiliate to continue the employment of a Participant. 

(d)    The provisions of the Plan will be governed by the laws of the State of Delaware without resort to that
state’s conflicts of laws rules. 
 (e)    If any particular provision of the Plan is found to be invalid or
otherwise unenforceable, such provision will not affect the other provisions of the Plan, but the Plan will be construed in all respects as if such invalid provision were omitted. 

(f)    If any provision of the Plan does not comply with applicable law or regulations, such provision shall be
construed in such a manner as to comply with applicable law or regulations. 
  

	17.	DEFINITIONS. 

 As used in the Plan, the following definitions will apply
to the capitalized terms indicated below: 
 (a)    “423 Component” means the part of the
Plan, which excludes the Non-423 Component, pursuant to which Purchase Rights that satisfy the requirements for an Employee Stock Purchase Plan may be granted to Eligible Employees. 

(b)    “Affiliate” means any entity, other than a Related Corporation, in which the Company
has an equity or other ownership interest or that is directly or indirectly controlled by, controls, or is under common control with the Company, in all cases, as determined by the Board, whether now or hereafter existing. 

  
 10 

 (c)    “Board” means the board of
directors of the Company. 
 (d)    “Capital Stock” means each and every class of
common stock of the Company, regardless of the number of votes per share. 
 (e)    “Capitalization
Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the Effective Date without the receipt of consideration by the Company
through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other similar equity restructuring transaction, as that term is used in Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto). Notwithstanding the foregoing, the
conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment. 

(f)    “Code” means the U.S. Internal Revenue Code of 1986, as amended, including
any applicable regulations and guidance thereunder. 
 (g)    “Committee”
means a committee of one or more members of the Board to whom authority has been delegated by the Board in accordance with Section 2(c). 

(h)    “Common Stock” means, as of the IPO Date, the common stock of the Company having one
vote per share. 
 (i)    “Company” means Tenable Holdings, Inc., a Delaware corporation,
and any successor corporation thereto. 
 (j)    “Contributions” means the payroll
deductions and/or other payments specifically provided for in the Offering that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments into his or her account if specifically provided for in
the Offering, and then only if the Participant has not already contributed the maximum permitted amount of payroll deductions and/or other payments during the Offering. 

(k)    “Corporate Transaction” means the consummation, in a single transaction or in a
series of related transactions, of any one or more of the following events: 
 (i)    a sale or other
disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries; 

(ii)    a sale or other disposition of more than 50% of the outstanding securities of the Company; 

(iii)    a merger, consolidation or similar transaction following which the Company is not the surviving
corporation; or 
 (iv)    a merger, consolidation or similar transaction following which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property,
whether in the form of securities, cash or otherwise. 

  
 11 

 (l)    “Designated 423 Corporation” means any
Related Corporation selected by the Board as participating in the 423 Component. 
 (m)    “Designated
Company” means any Designated Non-423 Corporation or Designated 423 Corporation, provided, however, that at any given time, a Related Corporation participating in the 423 Component shall not be a
Related Corporation participating in the Non-423 Component. 

(n)    “Designated Non-423 Corporation” means any
Related Corporation or Affiliate selected by the Board as participating in the Non-423 Component. 

(o)    “Director” means a member of the Board. 

(p)    “Effective Date” means the effective date of the Plan, as set forth in
Section 13. 
 (q)    “Eligible Employee” means an Employee who meets the
requirements set forth in the document(s) governing the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan. 

(r)    “Employee” means any person, including an Officer or Director, who is
“employed” for purposes of Section 423(b)(4) of the Code by the Company or a Related Corporation (including an Affiliate). However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be
considered an “Employee” for purposes of the Plan. 
 (s)    “Employee Stock Purchase
Plan” means a plan that grants Purchase Rights intended to be options issued under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Code. 

(t)    “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended and
the rules and regulations promulgated thereunder. 
 (u)    “Fair Market Value” means, as
of any date, the value of the Common Stock determined as follows: 
 (i)    If the Common Stock is listed on any
established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock will be, unless otherwise determined by the Board, the closing sales price for such stock as quoted on such exchange or
market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in such source as the Board deems reliable. Unless otherwise provided by the Board, if there is no
closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing sales price on the last preceding date for which such quotation exists. 

(ii)    In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Board
in good faith in compliance with applicable laws and regulations and in a manner that complies with Sections 409A of the Code. 

(iii)    Notwithstanding the foregoing, for any Offering that commences on the IPO Date, the Fair Market Value of
the shares of Common Stock on the Offering Date will be the price per share at which shares are first sold to the public in the Company’s initial public offering as specified in the final prospectus for that initial public offering. 

  
 12 

 (v)    “IPO Date” means the date of the
underwriting agreement between the Company and the underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering. 

(w)    “Non-423 Component” means the part of the
Plan, which excludes the 423 Component, pursuant to which Purchase Rights that are not intended to satisfy the requirements for an Employee Stock Purchase Plan may be granted to Eligible Employees. 

(x)    “Offering” means the grant to Eligible Employees of Purchase Rights, with the
exercise of those Purchase Rights automatically occurring at the end of one or more Purchase Periods. The terms and conditions of an Offering will generally be set forth in the “Offering Document” approved by the Board for
that Offering. 
 (y)    “Offering Date” means a date selected by the Board for an
Offering to commence. 
 (z)    “Officer” means a person who is an officer
of the Company or a Related Corporation or Affiliate within the meaning of Section 16 of the Exchange Act. 

(aa)    “Participant” means an Eligible Employee who holds an outstanding Purchase
Right. 
 (bb)    “Plan” means this Tenable Holdings, Inc. 2018 Employee Stock
Purchase Plan, including both the 423 Component and the Non-423 Component, as amended from time to time. 

(cc)    “Purchase Date” means one or more dates during an Offering selected by the
Board on which Purchase Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering. 

(dd)    “Purchase Period” means a period of time specified within an Offering, generally
beginning on the Offering Date or on the first Trading Day following a Purchase Date, and ending on a Purchase Date. An Offering may consist of one or more Purchase Periods. 

(ee)    “Purchase Right” means an option to purchase shares of Common Stock granted
pursuant to the Plan. 
 (ff)    “Related Corporation” means any “parent
corporation” or “subsidiary corporation” of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 

(gg)    “Securities Act” means the U.S. Securities Act of 1933, as amended. 

(hh)    “Tax-Related Items” means any income tax,
social insurance, payroll tax, fringe benefit tax, payment on account or other tax-related items arising in relation to a Participant’s participation in the Plan. 

(ii)    “Trading Day” means any day on which the exchange(s) or market(s) on which
shares of Common Stock are listed, including but not limited to the NYSE, Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or any successors thereto, is open for trading. 

  
 13Exhibit 4.1

 

 

 

 

 

VALIDUS HOLDINGS, LTD., as Issuer,

 

and

 

THE BANK OF NEW YORK MELLON,

 

as Trustee

______________

 

SECOND SUPPLEMENTAL INDENTURE

 

Dated as of July 26, 2018

______________

8.875% Senior Notes due 2040

______________

 

 

 

 

    	 

     

    

 

SECOND SUPPLEMENTAL INDENTURE, dated as
of July 26, 2018 (the “Second Supplemental Indenture”), between Validus Holdings, Ltd., a company duly organized
and existing under the laws of Bermuda (herein called the “Company”), having its principal office at 29 Richmond
Road, Pembroke, Bermuda HM 08, and The Bank of New York Mellon, a New York banking corporation, as trustee (herein called the “Trustee”)
under the Indenture referred to below.

 

RECITALS OF THE COMPANY

 

The Company and the Trustee entered into
an Indenture dated as of January 26, 2010, as supplemented by the First Supplemental Indenture, dated January 26, 2010 (the “First
Supplemental Indenture” and together with the Indenture, the “Original Indenture”) pursuant to which
the Company established certain terms of a series of Securities to be known as the Company’s “8.875% Senior Notes due
2040” (the “Notes”).

 

Section 9.1 of the Original Indenture provides
that a supplemental indenture may be entered into by the Company (when authorized by or pursuant to a Company’s Board Resolution)
and the Trustee without the consent of any Holders of the Securities for certain purposes stated therein.

 

The Company has authorized the entry into
the Second Supplemental Indenture pursuant to a Company Board Resolution dated July 18, 2018.

 

The Company has requested and does hereby
request that the Trustee join with it in the execution and delivery of this Second Supplemental Indenture in order to amend and
supplement the Original Indenture by adding certain terms related to guarantors and has delivered to the Trustee a Board Resolution
authorizing the execution of this Second Supplemental Indenture.

 

All things necessary to make this Second
Supplemental Indenture a valid agreement of the Company and the Trustee and a valid supplement to the Original Indenture have been
done.

 

NOW, THEREFORE, THIS SECOND SUPPLEMENTAL
INDENTURE WITNESSETH:

 

For and in consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually
covenant and agree, for the equal and proportionate benefit of the respective Holders from time to time of the Securities, as follows:

 

ARTICLE
One

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

		Section 1.1	Definitions.

 

The Original Indenture together with this
Second Supplemental Indenture are hereinafter sometimes collectively referred to as the “Indenture.” For the
avoidance of doubt, references to any “Section” of the “Indenture” refer to such Section of the Original
Indenture as supplemented and amended by this Second Supplemental Indenture. All capitalized terms which are used herein and not
otherwise defined herein are defined in the Original Indenture and are used herein with the same meanings as in the Original Indenture.
If a capitalized term is defined in the Original Indenture and this Second Supplemental Indenture, the definition in this Second
Supplemental Indenture shall apply to the Securities.

 

    	 

     

    

 

For all purposes of this Second Supplemental
Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(1)           the terms defined in this article have the meanings assigned to them in this article and include the plural as well as the
singular;

 

(2)           all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have
the meanings assigned to them therein;

 

(3)           all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted
accounting principles in the United States, and, except as otherwise herein expressly provided, the term “generally accepted
accounting principles” or “GAAP” with respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted in the United States of America at the date of such computation;

 

(4)           the words “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Indenture as a whole and not to any particular article, section or other subdivision; and

 

(5)           all references used herein to the male gender shall include the female gender.

 

ARTICLE
Two

AMENDMENT

 

		Section 2.1	Amendment to Indenture.

 

Concurrently
with the execution and delivery of this Second Supplemental Indenture,

 

(1)           Section 1.1 (Definitions) of the Original Indenture is amended to include the following:

 

“Guarantee” means
any guarantee of the obligations of the Company under this Indenture and the Securities by a Guarantor in accordance with the provisions
of this Indenture. When used as a verb, “Guarantee” shall have a corresponding meaning.

 

“Guarantor” means
any Person that incurs a Guarantee; provided that upon the release and discharge of such Person from its Guarantee in accordance
with this Indenture, such Person shall cease to be a Guarantor.

 

(2)           The following Sections 16.1 through 16.20 are added as a new Article 16 of the Original Indenture:

 

    	-2- 

     

    

 

ARTICLE
Sixteen

 

		Section 16.1	Unconditional Guarantee.

 

Subject to the provisions of this Article
Sixteen, each of the Guarantors, if any, as primary obligor and not merely as surety, hereby, jointly and severally, unconditionally
and irrevocably and fully guarantees, on a senior unsecured basis to each Holder of a Security authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the
Securities or the obligations of the Company or any other Guarantors to the Holders or the Trustee hereunder or thereunder: (a)
(x) the due and punctual payment of the principal of, premium, if any, and interest on the Securities when and as the same shall
become due and payable, whether at stated maturity, upon redemption or repurchase, by acceleration or otherwise, (y) the due and
punctual payment of interest on the overdue principal and (to the extent permitted by law) interest, if any, on the Securities
and (z) the due and punctual payment and performance of all other monetary obligations of the Company and all other monetary obligations
of the other Guarantors (including under the Guarantees), in each case, to the Holders or the Trustee hereunder or thereunder (including
amounts due to the Trustee under Section 6.6 hereof), all in accordance with the terms hereof and thereof (collectively, the “Guarantee
Obligations”); and (b) in case of any extension of time of payment or renewal of any Securities or any of such other
obligations, the due and punctual payment and performance of Guarantee Obligations in accordance with the terms of the extension
or renewal, whether at stated maturity, upon redemption or repurchase, by acceleration or otherwise. Failure to make payment when
due of any amount so guaranteed, or failure to perform any other obligation of the Company to the Holders under this Indenture
or under the Securities, for whatever reason, shall obligate each Guarantor to pay, or to perform or cause the performance of,
the same immediately.

 

Each of the
Guarantors, if any, hereby agrees to the fullest extent permitted by law that its obligations hereunder shall be unconditional.
Notwithstanding the foregoing, each of the Guarantors reserves the right to assert defenses which the Company may have to payment
of principal of, or interest or premium on, if any, the Securities other than defenses arising from the bankruptcy or insolvency
of the Company and other defenses expressly waived hereby. Each of the Guarantors hereby waives to the fullest extent permitted
by law the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants
that its Guarantee shall not be discharged except by complete performance of the obligations contained in the Securities, this
Indenture and the Guarantee. The Guarantee is a guarantee of payment and not of collection. If any Holder or the Trustee is required
by any court or otherwise pursuant to law to return to the Company or to any Guarantor, or any custodian, trustee, liquidator or
other similar official acting in relation to the Company or such Guarantor, any amount paid by the Company or such Guarantor to
the Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated (to
the fullest extent permitted by law) in full force and effect and deemed reduced only by such amount paid and not so returned.
Each Guarantor further agrees (to the fullest extent permitted by law) that, as between it, on the one hand, and the Holders of
Securities and the Trustee, on the other hand, (a) subject to this Article Sixteen, the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Five for the purposes of the Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (b) in the event of any acceleration
of such obligations as provided in Article Five hereof, such obligations (whether or not due and payable) shall forthwith become
due and payable by the Guarantors for the purpose of the Guarantee.

 

    	-3- 

     

    

 

		Section 16.2	Limitation
on Guarantor Liability.

 

Each Guarantor, and by its acceptance of
Securities, each Holder and the Trustee, hereby confirms that it is the intention of all such parties that the Guarantee of such
Guarantor not constitute a fraudulent transfer or fraudulent conveyance under applicable law or being void or unenforceable under
any law relating to insolvency of debtors. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of such Guarantor under its Guarantee and this Article Sixteen shall be limited to the maximum
amount, after giving effect to all other contingent and fixed liabilities of such Guarantor that are relevant under such laws,
and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article Sixteen, as would result in the obligations
of such Guarantor under its Guarantee not constituting a fraudulent transfer or conveyance under applicable law or being void or
unenforceable under any law relating to insolvency of debtors.

 

		Section 16.3	Execution and Delivery of Guarantee.

 

To further evidence its Guarantee as set
forth in Section 16.1, each Guarantor hereby agrees to execute a supplement to this Indenture or a Guarantee, substantially in
the form of Exhibit I hereto, and deliver it to the Trustee. Such Guarantee or supplement to this Indenture shall be executed on
behalf of each Guarantor by either manual or facsimile signature of one Authorized Officer or other person duly authorized by all
necessary corporate action of each Guarantor who shall have been duly authorized to so execute by all requisite corporate action.
The validity and enforceability of any Guarantee shall not be affected by the fact that it is not affixed to any particular Security.

 

Each of the Guarantors hereby agrees that
its Guarantee set forth in Section 16.1 shall remain in full force and effect notwithstanding any failure to endorse on each Security
a notation of such Guarantee.

 

If an Authorized Officer of a Guarantor
whose signature is on this Indenture or a Guarantee no longer holds that office at the time the Trustee authenticates the Security
on which such Guarantee is endorsed or at any time thereafter, such Guarantor’s Guarantee of such Security shall nevertheless
be valid.

 

The delivery of any Security by the Trustee,
after the authentication thereof hereunder, shall constitute due delivery of any Guarantee set forth in this Indenture on behalf
of each Guarantor.

 

		Section 16.4	Waiver of Subrogation.

 

Until this Indenture is discharged and all
of the Securities are discharged and paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim
or other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or
enforcement of the Company’s obligations under the Securities or this Indenture and such Guarantor’s obligations under
the Guarantee and this Indenture, in any such instance including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, and any right to participate in any claim or remedy of the Holders against the Company,
whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation,
the right to take or receive from the Company, directly or indirectly, in cash or other assets or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the
preceding sentence and any amounts owing to the Trustee or the Holders under the Securities, this Indenture, or any other document
or instrument delivered under or in connection with such agreements or instruments, shall not have been paid in full, such amount
shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Trustee
or the Holders and shall forthwith be paid to the Trustee for the benefit of itself or such Holders to be credited and applied
to the obligations in favor of the Trustee or the Holders, as the case may be, whether matured or unmatured, in accordance with
the terms of this Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that its Guarantee, and the waiver set forth in this Section 16.4 is knowingly made in contemplation
of such benefits.

 

    	-4- 

     

    

 

		Section 16.5	Immediate
Payment.

 

Each Guarantor agrees to make immediate
payment to the Trustee on behalf of the Holders of all Guarantee Obligations owing or payable to the respective Holders of Guarantee
Obligations upon receipt of a demand for payment therefor by the Trustee to such Guarantor in writing.

 

		Section 16.6	No Setoff.

 

Each payment to be made by a Guarantor hereunder
in respect of the Guarantee Obligations shall be payable in the currency or currencies in which such Guarantee Obligations are
denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature.

 

		Section 16.7	Guarantee
Obligations Absolute.

 

The obligations of each Guarantor hereunder
are and shall be absolute and unconditional and any monies or amounts expressed to be owing or payable by each Guarantor hereunder
which may not be recoverable from such Guarantor on the basis of a Guarantee shall be recoverable from such Guarantor as a primary
obligor and principal debtor in respect thereof.

 

		Section 16.8	Guarantee
Obligations Continuing.

 

The obligations of each Guarantor hereunder
shall be continuing and shall remain in full force and effect until all such obligations have been paid and satisfied in full.

 

		Section 16.9	Guarantee Obligations Reinstated.

 

The obligations of each Guarantor hereunder
shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which would otherwise have
reduced the obligations of any Guarantor hereunder (whether such payment shall have been made by or on behalf of the Company or
by or on behalf of a Guarantor) is rescinded or reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation
or reorganization of the Company or any Guarantor or otherwise, all as though such payment had not been made. If demand for, or
acceleration of the time for, payment by the Company or any other Guarantor is stayed upon the insolvency, bankruptcy, liquidation
or reorganization of the Company or such Guarantor, all such Indebtedness otherwise subject to demand for payment or acceleration
shall nonetheless be payable by each Guarantor as provided herein.

 

    	-5- 

     

    

 

		Section 16.10	Guarantee Obligations
Not Affected.

 

The obligations of each Guarantor hereunder
shall not be affected, impaired or diminished in any way by any act, omission, matter or thing whatsoever, occurring before, upon
or after any demand for payment hereunder (and whether or not known or consented to by any Guarantor or any of the Holders) which,
but for this provision, might constitute a whole or partial defense to a claim against any Guarantor hereunder or might operate
to release or otherwise exonerate any Guarantor from any of its obligations hereunder or otherwise affect such obligations, whether
occasioned by default of any of the Holders or otherwise, including, without limitation:

 

(a) any limitation of status or power, disability,
incapacity or other circumstance relating to the Company or any other Person, including any insolvency, bankruptcy, liquidation,
reorganization, readjustment, composition, dissolution, winding-up or other proceeding involving or affecting the Company or any
other Person;

 

(b) any failure of the Company or any other
Guarantor, whether or not without fault on its part, to perform or comply with any of the provisions of this Indenture, the Securities
or any Guarantee, or to give notice thereof to a Guarantor;

 

(c) the taking or enforcing or exercising
or the refusal or neglect to take or enforce or exercise any right or remedy from or against the Company or any other Person or
their respective assets or the release or discharge of any such right or remedy;

 

(d) the granting of time, renewals, extensions,
compromises, concessions, waivers, releases, discharges and other indulgences to the Company or any other Person;

 

(e) any change in the time, manner or place
of payment of, or in any other term of, any of the Securities, or any other amendment, variation, supplement, replacement or waiver
of, or any consent to departure from, any of the Securities or this Indenture, including, without limitation, any increase or decrease
in the principal amount of or premium, if any, or interest on any of the Securities;

 

(f) any change in the ownership, control,
name, objects, businesses, assets, capital structure or constitution of the Company or a Guarantor;

 

(g) any merger or amalgamation of the Company
or a Guarantor with any Person or Persons; and

 

(h) the occurrence of any change in the
laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court
amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Guarantee
Obligations or the obligations of a Guarantor under its Guarantee.

 

		Section 16.11	Waiver.

 

Without in any way limiting the provisions
of Section 16.1, each Guarantor hereby waives notice of acceptance hereof, notice of any liability of any Guarantor hereunder,
notice or proof of reliance by the Holders upon the obligations of any Guarantor hereunder, and diligence, presentment, demand
for payment on the Company, protest, notice of dishonor or non-payment of any of the Guarantee Obligations, or other notice or
formalities to the Company or any Guarantor of any kind whatsoever.

 

    	-6- 

     

    

 

		Section 16.12	No Obligation
to Take Action Against the Company.

 

Neither the Trustee nor any other Person
shall have any obligation to enforce or exhaust any rights or remedies against the Company or any other Person or any property
of the Company or any other Person before the Trustee is entitled to demand payment and performance by any or all Guarantors of
their liabilities and obligations under their Guarantees or under this Indenture.

 

		Section 16.13	Dealing with the
Company and Others.

 

The Holders and the Trustee, without releasing,
discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of any Guarantor hereunder and
without the consent of or notice to any Guarantor, may

 

(a) grant time, renewals, extensions, compromises,
concessions, waivers, releases, discharges and other indulgences to the Company or any other Person;

 

(b) take or abstain from taking security
or collateral from the Company or from perfecting security or collateral of the Company;

 

(c) release, discharge, compromise, realize,
enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages
or other security given by the Company or any third party with respect to the obligations or matters contemplated by this Indenture
or the Securities;

 

(d) accept compromises or arrangements from
the Company;

 

(e) apply all monies at any time received
from the Company or from any security upon such part of the Guarantee Obligations as the Holders may see fit or change any such
application in whole or in part from time to time as the Holders may see fit; and

 

(f) otherwise deal with, or waive or modify
their right to deal with, the Company and all other Persons and any security as the Holders or the Trustee may see fit.

 

		Section 16.14	Default and Enforcement.

 

If any Guarantor fails to pay in accordance
with Section 16.5 hereof, the Trustee may proceed in its name as trustee hereunder in the enforcement of the Guarantee of any such
Guarantor and such Guarantor’s obligations thereunder and hereunder by any remedy provided by law, whether by legal proceedings
or otherwise, and to recover from such Guarantor the obligations.

 

		Section 16.15	Acknowledgment.

 

Each Guarantor, if any, hereby acknowledges
communication of the terms of this Indenture and the Securities and consents to and approves of the same.

 

		Section 16.16	Costs and Expenses.

 

Each Guarantor shall pay on demand by the
Trustee any and all reasonable costs, fees and expenses (including, without limitation, legal fees on a solicitor and client basis)
incurred by the Trustee, its agents, advisors and counsel or any of the Holders in enforcing any of their rights under any Guarantee.

 

    	-7- 

     

    

 

		Section 16.17	No Waiver; Cumulative
Remedies.

 

No failure to exercise and no delay in exercising,
on the part of the Trustee or the Holders, any right, remedy, power or privilege hereunder or under this Indenture or the Securities,
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
or under this Indenture or the Securities preclude any other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. The rights, remedies, powers and privileges in the Guarantee and under this Indenture, the Securities and any
other document or instrument between a Guarantor and/or the Company and the Trustee are cumulative and not exclusive of any rights,
remedies, powers and privilege provided by law.

 

		Section 16.18	Guarantee in Addition
to Other Guarantee Obligations.

 

The obligations of each Guarantor under
its Guarantee and this Indenture are in addition to and not in substitution for any other obligations to the Trustee or to any
of the Holders in relation to this Indenture or the Securities and any guarantees or security at any time held by or for the benefit
of any of them.

 

		Section 16.19	 Severability.

 

Any provision of this Article Sixteen which
is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction unless its removal would
substantially defeat the basic intent, spirit and purpose of this Indenture and this Article Sixteen.

 

		Section 16.20	Successors and
Assigns.

 

Each Guarantee shall be binding upon and
inure to the benefit of each Guarantor and the Trustee and the other Holders and their respective successors and permitted assigns,
except that no Guarantor may assign any of its obligations hereunder or thereunder.

 

(3)           The following Exhibit I is added to the Original Indenture as a new Exhibit immediately after Exhibit H:

 

    	-8- 

     

    

 

Exhibit I

 

GUARANTEE 

 

Subject to the provisions of Article Sixteen
of the Indenture referred to below, the undersigned Guarantor, as primary obligor and not merely as surety, hereby, jointly and
severally with each other Guarantor, unconditionally and irrevocably and fully guarantees, on a senior unsecured basis to each
Holder of a Security authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of this Indenture, the Securities or the obligations of the Company or any other Guarantors
to the Holders or the Trustee hereunder or thereunder: (a) (x) the due and punctual payment of the principal of, premium, if any,
and interest on the Securities when and as the same shall become due and payable, whether at stated maturity, upon redemption or
repurchase, by acceleration or otherwise, (y) the due and punctual payment of interest on the overdue principal and (to the extent
permitted by law) interest, if any, on the Securities and (z) the due and punctual payment and performance of all other monetary
obligations of the Company and all other monetary obligations of the other Guarantors (including under the Guarantees), in each
case, to the Holders or the Trustee hereunder, under the Securities or under the Indenture (including amounts due to the Trustee
under Section 6.6 of the Indenture), all in accordance with the terms hereof and thereof (collectively, the “Guarantee
Obligations”); and (b) in case of any extension of time of payment or renewal of any Securities or any of such other
obligations, the due and punctual payment and performance of Guarantee Obligations in accordance with the terms of the extension
or renewal, whether at stated maturity, upon redemption or repurchase, by acceleration or otherwise. Failure to make payment when
due of any amount so guaranteed, or failure to perform any other obligation of the Company to the Holders under this Indenture
or under the Securities, for whatever reason, shall obligate each Guarantor to pay, or to perform or cause the performance of,
the same immediately.

 

The obligations of the Guarantors to the
Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article Sixteen of that certain
Indenture, dated as of January 26, 2010, as supplemented or otherwise modified from time to time (the “Indenture”)
between Validus Holdings, Ltd. ( the “Company”), and The Bank of New York Mellon, as trustee, pursuant to which the
Company established certain terms of a series of Securities to be known as the Company’s 8.875% Senior Notes due 2040 (the
“Securities”) and reference is hereby made to the Indenture for the precise terms and limitations of this Guarantee.
Each Holder of the Securities to which this Guarantee is endorsed, by accepting such Securities, agrees to and shall be bound by
such provisions. Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Indenture.

 

ARTICLE
Three

 

MISCELLANEOUS

 

		Section 3.1	Effect of Second Supplemental Indenture.

 

(1)           This Second Supplemental Indenture is a supplemental indenture within the meaning of Section 9.1 of the Original Indenture,
and the Original Indenture shall be read together with this Second Supplemental Indenture and shall have the same effect over the
Securities, in the same manner as if the provisions of the Original Indenture and this Second Supplemental Indenture were contained
in the same instrument.

 

(2)           In all other respects, the Original Indenture is confirmed by the parties hereto as supplemented by the terms of this Second
Supplemental Indenture.

 

		Section 3.2	Effect of Headings.

 

Article and Section headings herein are
for convenience only and shall not affect the construction hereof.

 

    	-9- 

     

    

 

		Section 3.3	Successors and Assigns.

 

All covenants and agreements in this Second
Supplemental Indenture by the Company, the Trustee and the Holders shall bind their successors and assigns, whether so expressed
or not.

 

		Section 3.4	Severability Clause.

 

In case any provision in this Second Supplemental
Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

		Section 3.5	Benefits of Second Supplemental Indenture.

 

Nothing in this Second Supplemental Indenture
or in the Securities, express or implied, shall give to any Person, other than the parties hereto and the Holders, any benefit
or any legal or equitable right, remedy or claim under this Second Supplemental Indenture.

 

		Section 3.6	Conflict.

 

In the event that there is a conflict or
inconsistency between the Original Indenture and this Second Supplemental Indenture, the provisions of this Second Supplemental
Indenture shall control; provided, however, if any provision hereof limits, qualifies or conflicts with another provision herein
or in the Original Indenture, in either case, which is required or deemed to be included in this Indenture by any of the provisions
of the Trust Indenture Act, such required or deemed provision shall control.

 

		Section 3.7	Governing Law.

 

THIS SECOND SUPPLEMENTAL INDENTURE SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE OR ENTERED INTO
AND PERFORMED IN SAID STATE.

 

		Section 3.8	Ratification of Indenture; Supplemental Indentures Part of Indenture.

 

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

 

		Section 3.9	Counterparts.

 

This instrument may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

		Section 3.10	Trustee.

 

The Trustee shall not be responsible in
any manner whatsoever for or in respect of the validity or sufficiency of this Second Supplemental Indenture or for or in respect
of the recitals contained herein, all of which are made solely by the Company.

 

    	-10- 

     

    

 

 

[Signature page follows]

 

    	-11- 

     

    

 

In
Witness Whereof, the parties hereto have caused this Second Supplemental Indenture to be duly executed on the day and year
first written above.

 

 

	 	VALIDUS HOLDINGS, LTD.	 
	 	 	 
	 	 	 
	 	By: 	/s/ Elias Habayeb	 
	 	 	Name:  Elias Habayeb	 
	 	 	Title:    Vice President	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,  	 
	 	as Trustee	 
	 	 	 
	 	 	 
	 	By: 	/s/ Laurence J. O’Brien 	 
	 	 	Name:  Laurence J. O’Brien	 
	 	 	Title:    Vice President	 

 

 

 

 

 

 

 

 

 

[Signature Page to Second Supplemental
Indenture]

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