Document:

Exhibit

Employment Agreement
By And Between
World Acceptance Corporation
And
John L. Calmes, Jr.

Effective November 19, 2015

        

EMPLOYMENT AGREEMENT
This Agreement is effective as of November 19, 2015 by and between World Acceptance Corporation (the “Company”), a South Carolina corporation, and John L. Calmes, Jr. (the “Executive”).
The Compensation and Stock Option Committee of the Board of the Company (the “Committee”), acting on behalf of and pursuant to authority granted by the Board of Directors of the Company (the “Board”) has determined that it would be in the best interests of the Company and its shareholders to secure the services of the Executive for the Period of Employment (as defined in Section 3.1 below) and upon the terms provided in this Agreement.  The Executive is currently employed with the Company as the Chief Financial Officer and will continue to be employed in that capacity on a full-time basis for said Period of Employment and upon such other terms and conditions as provided in this Agreement.
In consideration of the mutual covenants and promises contained in this Agreement, the parties hereby agree as follows:

SECTION I 
EMPLOYMENT
The Company agrees to employ the Executive and the Executive agrees to be employed by the Company for the Period of Employment, and based upon the other terms and conditions provided in the Agreement.

SECTION II     
POSITION AND RESPONSIBILITIES
The Executive agrees to serve as the Company’s Chief Financial Officer and to be responsible for the duties and responsibilities traditionally attributed to such position and as assigned to Executive from time to time by the Chief Executive Officer.  The Executive also agrees to continue to serve during the Period of Employment as an Officer and Director of any subsidiary, affiliate, or parent corporation (“Affiliates”) of the Company that the Board feels is appropriate.  
SECTION III     
TERMS AND DUTIES
		
	3.1
	Period of Employment

The initial term (the “Initial Term”) of Executive’s employment shall be for a period of three (3) years commencing on November 19, 2015 and continuing until November 19, 2018 (the “Initial Expiration Date”), subject to extension or termination as provided in this Agreement.  Unless this Agreement has been terminated in accordance with its provisions, the term of this Agreement will be extended automatically for successive one-year terms commencing on the Initial Expiration Date unless either party elects to terminate this Agreement by providing written notice 

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to the other party at least ninety (90) days prior to the expiration of the Initial Term or any renewal term.  As used herein, the term “Period of Employment” means the Initial Term plus any renewal terms.  Non-renewal by the Company shall be subject to the provisions set forth in Section 8.1, and non-renewal by the Executive shall be subject to the provisions of Section 8.3. 

		
	3.2
	Duties

The Executive shall serve under the direction of the Chief Executive Officer and shall exercise all duties commonly performed by the Chief Financial Officer of a publicly traded company.  Executive shall comply with all applicable laws and regulations, as well as all applicable Company policies and procedures, including the Code of Business Conduct and Ethics, and shall faithfully serve the best interests of the Company during the Period of Employment. During the Period of Employment and except for illness, incapacity, reasonable vacation and holiday periods, and as provided below, the Executive shall devote all of his business time, attention and skill exclusively to the business and affairs of the Company and its Affiliates.  The Executive will not engage in any other business activity, and will perform faithfully the duties which may be assigned to him from time to time by the Board or the Chief Executive Officer that are consistent with the provisions of this Agreement.  Notwithstanding the above, nothing in this Agreement shall preclude the Executive from devoting time during reasonable periods required for:
3.2.1     Serving as a director or member of a committee of any charitable or non-profit organization, or with prior approval of the Board, any other for-profit organization, in each case involving no actual or potential conflict of interest with the Company;
3.2.2    Delivering lectures and fulfilling speaking engagements;
3.2.3    Engaging in charitable and community activities; or
3.2.4    Investing his personal assets in investments or business entities in such form or manner that will not violate this Agreement or require services on the part of the Executive in the operation or affairs of the business entities in which those investments are made.  
The above activities will be allowed as long as they do not materially affect or interfere with the performance of the Executive’s duties and obligations to the Company.
SECTION IV     
COMPENSATION, BENEFITS, AND PERQUISITES
For all services rendered by the Executive in any capacity during the Period of Employment, including services as an executive, officer, director or committee member, the Executive shall be compensated as follows:
		
	4.1
	Base Salary

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The Company shall pay the Executive a fixed base salary (“Base Salary”) at such annual rate as the Committee deems appropriate; provided, however, that the Base Salary may not be less than $225,000 per year.  Increases in Base Salary, once granted by the Committee or the Company, shall not be subject to reduction.  Base Salary shall be payable according to the customary payroll practices of the Company, but in no event shall Base Salary be payable less frequently than once per calendar month.
		
	4.2
	Annual Incentive Awards

The Company may, in its sole discretion, pay the Executive annual cash incentive compensation payments under the Company’s Executive Incentive Plan or such successor plan thereto.  At the beginning of each fiscal year, the Board or the Committee may establish appropriate criteria for making such payments following the end of such fiscal year.
		
	4.3
	Long-Term Incentive Awards

The Company may, in its sole discretion, pay the Executive long-term incentive compensation payments.  The Committee may establish appropriate criteria for making such payments following the end of the performance period.  Payments may, at the discretion of the Committee, take the form of cash, restricted stock, stock options or other payment authorized by any long-term incentive plan adopted by the Company from time to time; provided, however, that any grants of long-term incentive awards must be approved in advance by the Committee.  The intent of such long-term incentive compensation awards is to motivate the achievement of longer range and strategic goals.
		
	4.4
	Benefits and Perquisites 

4.4.1    Salaried Employee Benefits
Executive will be entitled to participate in all compensation and employee benefit plans and programs and receive all benefits and perquisites for which salaried employees of the Company are generally eligible under any plan or program now or later established by the Company.  Subject to the foregoing, nothing in this Agreement will preclude the Company from amending or terminating any of such plans or programs.
4.4.2    Supplemental Benefits
The Company will provide long-term disability insurance that provides a benefit to the Executive of sixty percent (60%) of the Executive’s Base Salary in effect at the time of disability.  Such benefits (“Disability Benefits”) will continue until the Executive dies or has reached the age of 65, provided Executive suffers a qualifying disability (as described in the underlying long-term disability insurance policy) during the Period of Employment.  
The Executive will also be entitled to participate in the Second Amended and Restated World Acceptance Corporation 2005 Supplemental Income Plan (the “SERP”) in accordance with 

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the terms of that plan, including the Company’s right to terminate or amend the plan for any reason at any time.
The Executive will be entitled to receive paid vacation of not less than four (4) weeks annually.
		
	4.5
	Automobile

The Company will provide an automobile (including maintenance and insurance expense) for use by the Executive in accordance with the Company Car Policy.
SECTION V     
BUSINESS EXPENSES
The Company will reimburse the Executive, according to Company policy, for all reasonable travel, entertainment, business and other expenses incurred by the Executive in connection with the performance of his duties and obligations under this Agreement.
SECTION VI     
DISABILITY
The Executive agrees that regular attendance, in-person management and leadership, the ability to travel, and performance of duties commensurate with the Executive’s office are essential functions of his position.  Therefore, the Company may terminate the Executive’s employment if the Executive experiences a Disability during the Period of Employment.  In the event the Company terminates the employment of the Executive pursuant to this Section VI, the Company will continue to pay the Executive his Base Salary in effect at the time of termination for a period of twenty-four (24) months following the date of such termination; provided, however, the Company may cease making such payments at such time and for so long as the Executive receives the Disability Benefits.  In addition to the continuation of Base Salary as provided in the preceding sentence, upon termination of the Executive’s employment because of Disability, the Executive will be entitled to receive (i) Accrued Compensation (as defined in Section 8.1.1); (ii) vested amounts owed under the Company’s benefit plans, including without limitation the SERP; and (iii) a pro-rata portion of the Executive’s annual incentive under the Executive Incentive Plan, based upon the period of time from the beginning of the fiscal year through the Date of Termination (“Pro Rata Bonus”).  The Accrued Compensation shall be paid to Executive thirty (30) days from the Date of Termination.  The Pro-Rata Bonus shall be paid to Executive on the same date on which annual incentives under the Executive Incentive Plan are paid to other Company executives for the fiscal year, but not later than two and one-half months following the end of the Company’s fiscal year.  Benefits under the SERP and other Company benefit plans shall be payable in accordance with the provisions of such plans.
“Disability,” as used herein, shall mean the existence of either (i) a physical or mental impairment that prevents the Executive, with or without reasonable accommodation, from performing for a period of 90 days during any twenty-four month period (whether or not consecutive) any of the 

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essential functions of his position or (ii) any impairment that qualifies as a disability under the terms of any group long-term disability plan of which the Executive is a participant.
SECTION VII     
DEATH
In the event of the death of the Executive during the Period of Employment, the Company’s obligation to make payments under this Agreement shall cease as of the date of death, except for (i) Accrued Compensation (as defined in Section 8.1.1); (ii) vested amounts owed under the Company’s benefit plans, including without limitation the SERP; and (iii) a Pro-Rata Bonus.  The Accrued Compensation shall be paid thirty (30) days from the Date of Termination.  The Pro-Rata Bonus shall be paid on the same date on which annual incentives under the Executive Incentive Plan are paid to other Company executives for the fiscal year, but not later than two and one-half months following the end of the Company’s fiscal year.  The Executive’s designated beneficiary will be entitled to receive the proceeds of any life or other insurance or other death benefit programs provided in this Agreement, including the SERP, according to the terms and conditions of the applicable plans.
SECTION VIII     
EFFECT OF TERMINATION OF EMPLOYMENT
Except as otherwise set forth in Sections VI, VII, XVI and XVIII:
8.1    If the Executive’s employment terminates due to: (a) a Without Cause Termination or (b) a Termination with Good Reason (as such terms are hereafter defined in this Agreement), the Company will pay the Executive, or in the event of his death, his beneficiary or beneficiaries: 
8.1.1    in a lump sum in cash thirty (30) days after the last day of the Executive’s employment with the Company (“Date of Termination”) 
the sum of (1) the Executive’s accrued Base Salary then in effect and any accrued vacation pay through the Date of Termination, (2) the Executive’s business expenses that have not been reimbursed by the Company as of the Date of Termination that were incurred by the Executive prior to the Date of Termination in accordance with the applicable Company policy, and (3) the Executive’s bonus under the Executive Incentive Plan earned for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs if such bonus has not been paid as of the Date of Termination (“Accrued Compensation”); and
8.1.2     severance in an amount equal to two (2) times the Executive’s Base Salary, such sum to be paid in twenty-four (24) equal monthly installments following the Date of Termination in accordance with the Company’s normal payroll policies; and

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8.1.3    any unvested stock options and other unvested equity incentives or other unvested incentive awards shall fully vest and become exercisable if permitted by and according to the terms of the applicable incentive plans and award documents; provided, however, that (i) any of Executive’s stock options, equity incentives or incentive awards that are subject solely to time-based vesting will accelerate and vest as of the Date of Termination and (ii) all vested stock options held by the Executive shall be exercisable for a period of one year from the Date of Termination, but not beyond the original expiration of their term.  For the avoidance of doubt, no portion of any equity or incentive award subject to performance-based vesting will vest under this Section 8.1.3; and
8.1.4    a single lump sum cash payment equal to the total premiums Executive would be required to pay for eighteen (18) months of COBRA continuation coverage under the Company’s health benefit plans, determined using the COBRA premium rate in effect for the level of coverage that Executive has in place immediately prior to the Date of Termination (the “COBRA Payment”).  The Executive shall not be required to purchase COBRA continuation coverage in order to receive the COBRA Payment, nor shall Executive be required to apply the COBRA Payment towards any payment of applicable premiums for COBRA continuation coverage.  The payment shall be made on the thirtieth (30th) day following the Date of Termination; and
8.1.5    A Pro-Rata Bonus, to be paid on the same date on which annual incentives are paid to other Company executives for the fiscal year, but not later than two and one-half months following the end of the Company’s fiscal year.
8.2    If the Executive’s employment terminates due to a Termination for Cause, as hereinafter defined, the Company will pay to the Executive the Accrued Compensation defined in Section 8.1.1 within the time period described therein.  No other payments will be made and the Company will not be obligated to provide any other benefits to or on behalf of the Executive.  If the Company terminates the Executive for Cause and it is later determined that the Company did not have Cause, the Executive’s termination shall be construed as being Without Cause, and the Executive’s remedies shall be limited to the payments and benefits set forth in Section 8.1 herein.
8.3    If Executive resigns from employment with the Company without Good Reason or gives notice of non-renewal in accordance with Section 3.1 hereof, the Company will pay the Accrued Compensation defined in Section 8.l.1 within the time period described therein.  No other payments will be made and the Company will not be obligated to provide any other benefits to or on behalf of the Executive, except any benefits payable under the SERP or benefits payable under other plans or programs to the extent then vested.
8.4    Except as otherwise expressly provided in this Agreement and except for any long-term incentive payments to which Executive is entitled under the Company’s long-term incentive plans, or obligations of the Company under any stock option, restricted stock or other equity incentive 

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agreements, upon termination of the Executive’s employment hereunder, the Company’s obligation to make payments or provide benefits under this Agreement will cease.
It is expressly acknowledged by the Company that the amounts and benefits afforded to the Executive pursuant to Sections VI and VIII shall not be treated as damages but as severance compensation and benefits to which the Executive is entitled by reason of termination of his employment for the reasons set forth above.  Accordingly, the Executive shall not be required to mitigate the amount of any payment or benefits provided for in such sections by seeking employment or otherwise, nor shall the Company be entitled to set off against the amounts and benefits payable to the Executive hereunder any amounts or benefits earned by the Executive in other employment after the Date of Termination or any amounts or benefits that might have been earned by the Executive in other employment had he sought such other employment.
SECTION IX     
DEFINITIONS
For this Agreement, the following terms have the following meanings:
9.1    “Termination for Cause” means termination of the Executive’s employment by the Company due to the Executive’s (i) gross misconduct or gross neglect in respect of his duties for the Company; (ii) conviction of (or plea of nolo contendere to) a felony or of a misdemeanor where active imprisonment is imposed; (iii) knowing and intentional failure to comply with applicable laws with respect to the execution of the Company’s business operations; (iv) falsification of Company records or engaging in theft, fraud, embezzlement, dishonesty or other conduct that has resulted or is likely to result in material damage to the Company’s or any of its Affiliates’ business or reputation; (v) failure to comply with reasonable written directives of the Chief Executive Officer or the Board, which is not remedied within thirty (30) days after receipt of written notice specifying such failure; (vi) the willful and material violation of the Company’s policies, including its Code of Ethics; and (vii) the willful failure to reasonably cooperate with any investigation authorized by the Board, which failure would reasonably be expected to have a material adverse effect on the Company.  Notwithstanding the foregoing, (a) no conduct shall be considered “willful” or “intentional” if Executive acted in good faith and in a manner he reasonably believed to be in the best interests of the Company and had no reasonable cause to believe that his conduct was in violation of the relevant policy, directive, regulation or law; (b) any act or failure to act that is based upon a directive of the Board or the Chief Executive Officer, or the advice of counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.
Prior to any termination of the Executive for Cause, the Company shall give the Executive written notice of its intention to terminate this Agreement for Cause, setting forth in reasonable detail the specific conduct of Executive that the Chief Executive Officer or the Board considers to constitute Cause, the specific provision(s) of this Agreement on which it relies, and the date, time and place of a special meeting of the Board to be held, specifically for the purpose of considering Executive’s 

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termination for Cause. At such meeting, Executive shall be given the opportunity, together with counsel if he so desires, to be heard at such meeting prior to the Board’s decision.
9.2    “Good Reason” means any of the following conditions (each a “Condition”) that arises without the consent of the Executive and the Condition has not been cured as set out below: (i) a material diminution in the Executive’s Base Salary; (ii) a material diminution in the Executive’s authority, duties or responsibilities; (iii) a material diminution in the budget over which the Executive retains authority; (iv) requiring the Executive to relocate his principal place of employment more than thirty-five (35) miles from the Company’s present headquarters; (v) a material breach of this Agreement by the Company; or (vi) the failure of the Company to renew this Agreement as set forth in Section 3.1.  Within forty-five (45) days of the Executive’s knowledge of the initial existence of the Condition (or the date on which the Executive reasonably would be expected to have knowledge of the initial existence of the Condition), the Executive must provide notice to the Company of the existence of the Condition, and the Company shall have forty-five (45) days following receipt of such notice to cure the Condition; provided, however, the Company shall have the opportunity to cure only once per calendar year (whether the same or a different condition).  Subject to the foregoing, if the Condition is cured within forty-five (45) days of such notice, the Executive is not entitled to any payment as the result of a termination of employment based on that occurrence of the circumstances that would otherwise constitute Good Reason.  If the Condition is not cured within forty-five (45) days following such notice, the Executive may resign from employment for Good Reason, provided such resignation occurs not later than one (1) year from the initial existence of the Condition.
9.3    “Termination with Good Reason” means the Executive’s resignation of employment for Good Reason.
9.4    “Without Cause Termination” means termination of the Executive’s employment by the Company other than due to death or disability and other than Termination for Cause and includes, without limitation, termination of the Executive’s employment by the Company’s giving notice of non-renewal in accordance with Section 3.1 hereof.
SECTION X     
OTHER DUTIES OF THE EXECUTIVE DURING AND 
AFTER THE PERIOD OF EMPLOYMENT

10.1    During the Period of Employment, the Executive will comply with the Company’s Code of Ethics.
10.2    During the Restricted Period, the Executive will not make disparaging remarks to anyone about the Company or its Affiliates or their employees or agents or any statement that disrupts or impairs the Company’s normal, ongoing business operations or that harms the Company’s or its Affiliates’ reputation with their employees, customers, suppliers or the public.  The non-disparagement provisions set forth herein are in no way intended to limit the Executive’s ability to comply with legal requirements, including without limitation: (1) any applicable laws or regulations; (2) the ability to make truthful written or oral statements to government officials who are investigating matters within the scope of their governmental agency responsibilities; (3) any formal accounting 

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or auditing procedures and (4) the provision of truthful testimony in judicial or administrative proceedings.
10.3    During the Restricted Period, the Executive will not become employed by or provide services to (as an officer, agent, manager, director, employee, consultant, or independent contractor), invest in, or provide financing to a Competitor other than a Large Bank (as defined below) anywhere in the Territory unless (i) the services provided are not management- or executive-level services or (ii) the services are provided solely in a division, area or segment of the Competitor’s business that does not compete in any way with the Company or relate to the business, services or products described in Section 10.3(a) – (d) below.  A “Competitor” shall mean any business, person or company engaged in any of the following:  (a) small-loan consumer finance; (b) providing Ancillary Products to borrowers; (c) providing income tax form preparation services to individuals; or (d) the sale of products or services that are competitive with any products or services that have been offered by the Company during the Period of Employment.  A Competitor shall specifically include, but not be limited to, the following companies:  Cash America International, First Cash Financial Services, Security Finance and Republic Finance.  As used herein, “small-loan consumer finance” shall mean making fixed rate, fully amortized closed-end extensions of direct consumer credit of $4,000 or less.  “Territory” shall mean the country of Mexico or any of the following states:  South Carolina, Georgia, Texas, Oklahoma, Louisiana, Tennessee, Missouri, Illinois, New Mexico, Kentucky, Alabama, Wisconsin, Indiana, Mississippi or any state in which the Company or its Affiliates has made loans, provided services or sold or licensed products during the Period of Employment.  “Ancillary Products” shall mean any of the following:  credit life insurance; credit accident and health insurance; credit property insurance; unemployment insurance; auto club memberships or buying club memberships.  “Large Bank” shall mean any bank or savings association with deposits in excess of $5 billion, and any companies affiliated with such Large Bank.  Notwithstanding the foregoing, the Executive’s ownership of less than five percent (5%) of the outstanding voting or debt securities of any corporation or other entity shall not constitute a violation of the provisions of this Agreement if such securities are listed on a national or regional securities exchange or have been registered under the Securities Exchange Act of 1934, as amended.
10.4    During the Restricted Period, the Executive, without express written approval from the Board, will not solicit, hire or attempt to hire any individual who is then employed with the Company or is a consultant or independent contractor providing services to the Company or induce or attempt to induce such individual to leave the Company’s employment or no longer provide services to the Company. 
10.5    During the Restricted Period, the Executive will cooperate with and provide assistance to the Company and its legal counsel in connection with any litigation (including arbitration or administrative hearings) or investigation affecting the Company, in which, in the reasonable judgment of the Company’s counsel, the Executive’s assistance or cooperation is needed or desirable.  The Executive shall, when requested by the Company, provide testimony or other assistance and shall travel at the Company’s request in order to fulfill this obligation; provided, however, that, in connection with such litigation or investigation, the Company shall reasonably accommodate the Executive’s schedule, shall provide him with reasonable notice in advance of the times in which the Executive’s cooperation or assistance is requested, and shall reimburse the Executive for any 

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reasonable expenses incurred in connection with such matters.  Unless the Company has paid the Executive severance benefits pursuant to this Agreement, the Company shall compensate the Executive for his time at customary and prevailing rates, unless prohibited by law.
10.6    The Executive agrees to maintain the confidentiality of Confidential Information at all times during and after the Executive’s employment with the Company and will not, at any time (i) use any Confidential Information for the Executive’s own benefit or for the benefit of any other person, firm, or entity; (ii) reveal or disclose any Confidential Information to any person other than authorized representatives of the Company; or (iii) remove or aid in the removal from the Company’s premises, retain, transmit, download, or save any copy or copies of Confidential Information in either written, digital, electronic, voice, or other electronic media data form, except (A) in the performance of the Executive’s authorized duties in the furtherance of the business of the Company, (B) with the prior written consent of an authorized officer of the Company, or (C) as necessary to comply with law.  “Confidential Information” means any nonpublic information used in the Company’s business and from which the Company derives commercial value from not being generally known to the public or industry, including without limitation financial information (including budgets, forecasting, projections, costs, margins and pricing); employee information (including payroll and benefits information and personnel records); marketing plans, proposals and data; customer information; trade secrets; patents; copyrights and trademarks, computerized information or data (including programs, networks, databases, information technology architecture and infrastructure, hardware and software) (all or any portion of which, and the materials on which they are used, whether or not specifically labeled or identified as “confidential”).
10.7    “Restricted Period” as used herein shall begin on date the Executive is employed with the Company and shall end on the second (2nd) anniversary of the Date of Termination.
10.8    If the Company in good faith believes that the Executive has breached his obligations described in Section X, the Company may withhold future payments due to the Executive under this Agreement until a court of competent jurisdiction has determined whether the Executive has breached such obligations.  If a court of competent jurisdiction, in a final, non-appealable judgment, determines that the Executive has not breached such provisions, the Company shall within ten (10) business days of such determination pay to the Executive the amount of such withheld payments (less any damage award in favor of the Company, if applicable) plus interest accruing from the time each payment was due to the Executive at the legal pre-judgment interest rate.  If following the Date of Termination the Company fails without good faith, reasonable justification to make a payment or provide a benefit to the Executive when due, the Company shall have ten (10) days after receiving written notice from the Executive to cure such failure.  If the Company does not cure such failure within such 10-day period, the Executive shall no longer be bound by the obligations described in this Section X.  
10.9    The parties desire that the provisions of Section X be enforced to the fullest extent permissible under the laws and public policies applied in the jurisdictions in which enforcement is sought, and agree that the Company may specifically enforce the terms hereof by obtaining injunctive relief without the necessity of posting bond or damages as permitted by law.  If any portion of Section X is found to be invalid or unenforceable, the invalid or unenforceable terms shall be redefined or a new enforceable term provided, such that the intent of the Company and the Executive in agreeing 

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to the provisions hereof will not be impaired and the provision in question shall be enforceable to the fullest extent of the applicable laws. 
SECTION XI     
EFFECTS OF CHANGE IN CONTROL
11.1    In the event there is a Change in Control of the Company, and the Executive’s employment is terminated within two (2) years of such Change in Control due to a Without Cause Termination or Termination with Good Reason, the Company will pay the Executive:
11.1.1    A lump sum payment equal to the sum of: (i) Accrued Compensation; (ii) the COBRA Payment; (iii) the Pro Rata Bonus for the fiscal year in which termination of employment occurs; and (iv) an amount equal to the product of (A) two times (B) Base Salary (except that the Base Salary used for calculation of the payment will be the highest Base Salary in effect between the date immediately preceding the occurrence of the Change in Control and the Executive’s Date of Termination). Such amount will be paid thirty (30) days after the Date of Termination, except the Pro Rata Bonus will be paid on the same date on which annual incentives are paid to other Company executives for the fiscal year, but not later than two and one-half months following the end of the Company’s fiscal year.  
11.1.2    In addition, any unvested stock options and other unvested equity incentives or other unvested incentive awards shall fully vest and become exercisable if permitted by and according to the terms of the applicable incentive plans and award documents; provided, however, that all vested stock options held by the Executive shall be exercisable for a period of one year, but not beyond the original expiration of their term.  
It is understood that, in the event that Executive is entitled to severance payments under this Section 11.1, then such severance payments shall be in lieu of any severance payments to which the Executive would be entitled under Section VIII hereof.
		
	11.2
	It is the intention of the parties hereto that the severance payments and other compensation provided for herein are reasonable compensation for Executive’s services to the Company and shall not constitute “excess parachute payments” within the meaning of Section 280G of the Internal Revenue Code and any regulations thereunder.   Notwithstanding anything in this Agreement to the contrary, in the event it shall be determined that any payment or distribution of any type to Executive, pursuant to this Agreement or the Company’s incentive plans, is or will be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code or any interest or penalties with respect to such excise tax, such payments shall be reduced (but not below zero) if and to the extent that such reduction would result in Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the imposition of the excise tax), than if Executive received all of the payments.  The Company shall reduce or eliminate the payments, by first reducing or eliminating the portion of the payments which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or 

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benefits which are to be paid the farthest in time from the determination.  All determinations concerning the application of this Section shall be made by a nationally recognized firm of independent accountants or any nationally recognized financial planning and benefits consulting company, selected by the Company and reasonably satisfactory to Executive, whose determination shall be conclusive and binding on all parties. The fees and expenses of such accountants or consultants shall be borne by the Company.  
11.3    “Change in Control” shall mean the occurrence of any of the following events:
11.3.1     The consummation of (1) a merger, consolidation, statutory share exchange or similar form of transaction involving the (x) Company or (y) any Subsidiary, but in the case of this clause (y) only if Company Voting Securities (as defined below) are issued or issuable, or (2) the sale or other disposition of all or substantially all of the assets of the Company (each of the foregoing events in clauses (1) and (2) being hereinafter referred to as a "Reorganization"), in each case, unless immediately following such Reorganization: 
(a) all or substantially all of the individuals and entities who were the Beneficial Owners (as defined below) of the securities eligible to vote for the election of the Board (such securities, the "Company Voting Securities") outstanding immediately prior to the consummation of such Reorganization continue to Beneficially Own more than seventy percent (70%) of the combined voting power of the then outstanding voting securities of the corporation or other entity resulting from such Reorganization (including a corporation or entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) (the "Continuing Entity") in substantially the same proportions as their ownership, immediately prior to the consummation of the Reorganization, of the outstanding Company Voting Securities (excluding, for purposes of determining such proportions, any outstanding voting securities of the Continuing Entity that such Beneficial Owners hold immediately following the consummation of the Reorganization as a result of their ownership prior to such consummation of voting securities of any corporation or entity involved in or forming part of such Reorganization other than the Company), 
(b) no Person (excluding any employee benefit plan (or related trust) sponsored or maintained by the Continuing Entity or any corporation or entity controlled by the Continuing Entity) Beneficially Owns thirty-five percent (35%) or more of the combined voting power of the then outstanding voting securities of the Continuing Entity, and 
(c) at least a majority of the members of the board of directors of the Continuing Entity were Incumbent Directors (as defined below) at the time of execution of the definitive agreement providing for such Reorganization or, in the absence of such an agreement, at the time at which approval of the Board was obtained for such Reorganization;
11.3.2     The Shareholders of the Company approve a plan of complete liquidation or dissolution of the Company, unless such liquidation or dissolution is part of a transaction or series 

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of transactions described in Section 11.3.1 above that does not otherwise constitute a Change in Control;
11.3.3     (a) any Person acquires Beneficial Ownership of, or acquires voting control over, twenty percent (20%) or more of either the outstanding Stock or the combined voting power of the then outstanding Company Voting Securities, either in a single transaction or in a series of transactions occurring within the twelve-month period ending on the date of the most recent acquisition (such Person, an “Acquiring Person”); provided, however, that for purposes of this Section 11.3.3, no Person may become an Acquiring Person on account of any of the following acquisitions of Stock or Company Voting Securities: (1) any acquisition by the Company or any Subsidiary; (2) any acquisition by an underwriter temporarily holding such securities pursuant to an offering of such securities; (3) any acquisition by any employee benefit plan (or related trust)  sponsored by or maintained by the Company or any Subsidiary; and (4) any acquisition upon consummation of a transaction described in Section 11.3.1 above that does not otherwise constitute a Change in Control under the terms of such Section 11.3.1, and (b) a majority of the members of the Board are or become individuals who are (1) the Acquiring Person; (2) if the Acquiring Person is a group, members of such group; (3)  Affiliates of the Acquiring Person; (4) if the Acquiring Person is a group, Affiliates of members of such group; and/or (5) individuals whose initial assumption of office as a member of the Board occurs as a result of (A) an actual or threatened election contest or actual or threatened solicitation of proxies or consents by or on behalf of the Acquiring Person or, if the Acquiring Person is a group, any member(s) of such group or (B) the recommendation or request of the Acquiring Person or any member of the Board who is an Affiliate of the Acquiring Person or, if the Acquiring Person is a group, any member of such group (each such Board member, an “Acquiring Person Director”); or
11.3.4     During any period of twenty-four (24) consecutive months, individuals who were members of the Board at the beginning of such period (the "Incumbent Directors") cease at any time during such period for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the beginning of such period whose appointment or election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Directors shall be considered as though such individual were an Incumbent Director, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest or actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.
For purposes of this section, the term "Person" shall mean any individual, company, partnership, group, association or other person, as such term is defined in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, and the terms "Beneficial Owner," "Beneficially Own" and similar variations of such terms shall have the meaning given in Rule 13d-3 under the Exchange Act. 

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Employment Agreement – John L. Calmes, Jr.
    

For purposes of this section, “Affiliate” means (a) any Person directly or indirectly controlling, controlled by or under common control with the Acquiring Person (or any of its members, if the Acquiring Person is a group); (b) any director, officer, member, manager, partner, five percent (5%) owner, attorney, financial or accounting adviser or other agent of the Acquiring Person (or any of its members, if the Acquiring Person is a group) or of any Person described in clause (a); or (c) any director, officer, member, manager, partner, five percent (5%) owner, attorney, financial or accounting adviser or other agent of any Person described in clause (b). For the purposes of this definition, “control,” when used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.  
For purposes of this section, “Stock” shall mean shares of common stock of the Company.  “Subsidiary” shall mean mean any corporation, partnership, joint venture or other entity during any period in which at least a fifty percent voting or profits interest is owned, directly or indirectly, by the Company (or by any entity that is a successor to the Company), and any other business venture in which the Company (or any entity that is a successor to the Company) has a significant interest, as determined and designated in the discretion of the Committee; provided, however, that if and to the extent any applicable terms of the Internal Revenue Code, federal securities laws or other applicable laws, rules or regulations require that the term “Subsidiary” be defined differently for purposes of qualifying any award or the plan for any intended treatment (as determined in the sole discretion of the Committee) under any such applicable laws or regulations, the term “Subsidiary” shall be defined for such purpose so as to comply with such applicable laws or regulations.
The Board shall have full and final authority, in its discretion, to determine whether a Change in Control has occurred, the date of the occurrence of such Change in Control and any incidental matters relating thereto, provided that the determination as to whether one or more Board members are Acquiring Person Directors shall be made by a majority of members of the Board other than members who are Acquiring Person Directors or whose status as an Acquiring Person Director is in question. 
SECTION XII     
WITHHOLDING TAXES
The Company may directly or indirectly withhold from any payments under this Agreement amounts authorized by the Executive and all federal, state, city or other taxes that are required to be withheld pursuant to any law or governmental regulation.
SECTION XIII     
EFFECT OF PRIOR AGREEMENTS

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Employment Agreement – John L. Calmes, Jr.
    

This Agreement contains the entire understanding between the Company and the Executive with respect to the subject matter hereof and supersedes any prior agreement related to the subject matter hereof, including any employment agreement between the Company and the Executive.
SECTION XIV     
CONSOLIDATION, MERGER, OR SALE OF ASSETS
Nothing in this Agreement shall preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to another corporation or person which assumes this Agreement and all obligations and undertakings of the Company hereunder.  Upon such a consolidation, merger, or sale of assets the term “the Company” as used herein will mean the other corporation, and this Agreement shall continue in full force and effect. 
SECTION XV     
MODIFICATION
This Agreement may not be modified or amended except in writing signed by both parties.  No term or condition of this Agreement will be deemed to have been waived except in writing by the party charged with waiver.  A waiver shall operate only as to the specific term or condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived.
SECTION XVI     
COMPLIANCE WITH SECTION 409A
Notwithstanding any other provisions of this Agreement, to the extent applicable, this Agreement is intended to comply with Internal Revenue Code Section 409A and the regulations (or similar guidance) thereunder.  To the extent any provision of this Agreement is contrary to or fails to address the requirements of Internal Revenue Code Section 409A, this Agreement shall be construed and administered as necessary to comply with such requirements.  If the Executive is considered a “specified employee” (as defined in Internal Revenue Code Section 409A and related Treasury Regulations) at the time of any termination of employment under Section 8.1 or Section 11.1 of this Agreement, a portion of the amount payable to Executive under Section 8.1 or Section 11.1 shall be delayed for six (6) months following Executive’s Date of Termination to the extent necessary to comply with the requirements of Internal Revenue Code Section 409A.  Any amounts payable to Executive during such six (6) month period that are delayed due to the limitation in the preceding sentence shall be paid to Executive in a lump sum on or after the first day of the seventh (7th) month following Executive’s Date of Termination.  If, under this Agreement, an amount is to be paid in two or more installments, for purposes of Internal Revenue Code Section 409A, each installment shall be treated as a separate payment.
SECTION XVII     
GOVERNING LAW

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Employment Agreement – John L. Calmes, Jr.
    

This Agreement has been executed and delivered in the State of South Carolina and its validity, interpretation, performance and enforcement shall be governed by the laws of that state. 
SECTION XVIII
WAIVER AND RELEASE
In consideration for the payments and benefits provided hereunder, the Executive agrees that Executive will, upon termination of employment and in no event later than thirty (30) days after the Date of Termination, as a condition to the Company’s obligation to pay any severance benefits under this Agreement deliver to the Company a fully executed release, in commercially reasonable form, that fully and irrevocably releases and discharges the Company, its Affiliates and each of their directors, officers, agents and employees from any and all claims, charges, complaints, liabilities of any kind, known or unknown, owed to the Executive, except for obligations arising under the provisions of this Agreement, to vested benefits under the Company’s benefit plans, obligations arising under stock option, restricted stock or other equity compensation agreements, or such claims that may not be released by law.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed as of the 19th day of November, 2015 by its duly authorized officers and Executive has hereunto set his hand.
WORLD ACCEPTANCE CORPORATION

By:_______________________________________
                    
Title:_____________________________________

___________________________________
John L. Calmes, Jr.

World Acceptance Corporation    Page 17 of 17
Employment Agreement – John L. Calmes, Jr.EX-4.1

 EXHIBIT 4.1 

CERTIFICATE OF DESIGNATIONS 
 CERTIFICATE
OF DESIGNATIONS 
 OF 
 6.350%
NON-CUMULATIVE PREFERRED SHARES, SERIES C 
 OF 

ENDURANCE SPECIALTY HOLDINGS LTD. 

Endurance Specialty Holdings Ltd., a Bermuda exempted company (the “Company”), HEREBY CERTIFIES that pursuant to resolutions of the
board of directors of the Company (the “Board of Directors”) adopted on November 11, 2015, the creation of the series of 6.350% Non-Cumulative Preferred Shares, Series C, US$1.00 par value per share, US$25,000 liquidation preference
per share (the “Series C Preferred Shares”), was authorized and the designation, preferences and privileges, voting rights, relative, participating, optional and other special rights, and qualifications, limitations and restrictions of the
Series C Preferred Shares, in addition to those set forth in the Memorandum of Association (“Memorandum of Association”) and amended and restated Bye-Laws (as amended and restated from time to time, the “Bye-Laws”) of the
Company, were fixed as follows: 
 SECTION 1. DESIGNATION. The distinctive serial designation of the Series C Preferred Shares is
“6.350% Non-Cumulative Preferred Shares, Series C.” Each share of the Series C Preferred Shares shall be identical in all respects to every other share of Series C Preferred Shares, except as to the respective dates from which dividends
thereon shall accrue, to the extent such dates may differ as permitted pursuant to Section 4(a) below. 
 SECTION 2. NUMBER OF
SHARES. The authorized number of shares of Series C Preferred Shares shall be 9,200. Shares of Series C Preferred Shares that are redeemed, purchased or otherwise acquired by the Company shall be cancelled. 

SECTION 3. DEFINITIONS. As used herein with respect to Series C Preferred Shares: 

(a) “BMA” means the Bermuda Monetary Authority. 

(b) “Business Day” means a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is not a day on which banking
institutions in New York City generally are authorized or obligated by law or executive order to close. 
 (c) “Capital Adequacy
Regulations” means the solvency margin, capital adequacy regulations or any other regulatory capital rules applicable to the Company from time to time on an individual or group basis pursuant to Bermuda law and/or the laws of any other relevant
jurisdiction and which set out the requirements to be satisfied by financial instruments to qualify as solvency margin or additional solvency margin or regulatory capital (or any equivalent terminology employed by the then applicable capital
adequacy regulations). 

 (d) “Capital Disqualification Event” means that the Series C Preferred Shares cease to
qualify, in whole or in part (including as a result of any transitional or grandfathering provisions), for purposes of determining the Company’s solvency margin, capital adequacy ratios or any other comparable ratios, regulatory capital
resource or level of the Company or any member thereof, where subdivided into tiers, as Tier 1 or Tier 2 capital securities under then-applicable Capital Adequacy Regulations imposed upon the Company by the BMA (or any successor agency or
then-applicable regulatory authority) which may include enhanced capital adequacy regulation designed to achieve full equivalency under the Solvency II Directive (Directive 2009/13/EC) and, which includes the Company’s individual and group
“Enhanced Capital Requirements” (as defined in the Bermuda capital regulations) under the BMA’s capital regulations, except as a result of any applicable limitation on the amount of such capital. For the avoidance of doubt, a Capital
Disqualification Event shall not be deemed to have occurred so long as the Series C Preferred Shares qualify as either Tier 1 or Tier 2 capital securities as described above. 

(e) “Capital Redemption Trigger Date” has the meaning specified in Section 7(f). 

(f) “Certificate of Designations” means this Certificate of Designations relating to the Series C Preferred Shares, as it may be
amended from time to time. 
 (g) “Commission” means the U.S. Securities and Exchange Commission. 

(h) “Companies Act” means the Companies Act 1981 of Bermuda, as amended. 

(i) “Dividend Payment Date” has the meaning specified in Section 4(a). 

(j) “Dividend Period” has the meaning specified in Section 4(a). 

(k) “Dividend Record Date” has the meaning specified in Section 4(a). 

(l) “DTC” means The Depository Trust Company, together with its successors and assigns. 

(m) “Junior Shares” means any class or series of capital shares of the Company that ranks junior to the Series C Preferred Shares
either with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) or the distribution of assets upon any liquidation, dissolution or winding-up of the Company. As of the date hereof, Junior Shares consist of
the Company’s Ordinary Shares. 
 (n) “Liquidation Preference” has the meaning specified in Section 6(b). 

(o) “Nonpayment Event” has the meaning specified in Section 9(b). 

  
 2 

 (p) “Ordinary Shares” means the Ordinary Shares, par value US$1.00 per share, of the
Company. 
 (q) “Parity Shares” means any other class or series of capital shares of the Company that ranks equally with the Series
C Preferred Shares with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and in the distribution of assets on any liquidation, dissolution or winding-up of the Company. As of the date hereof, the
Company’s 7.75% Non-Cumulative Preferred Shares, Series A, US$1.00 par value per share and US$25.00 liquidation preference per share, and the Company’s 7.50% Non-Cumulative Preferred Shares, Series B, US$1.00 par value per share and
US$25.00 liquidation preference per share, comprise the only classes of the Company’s shares that constitute Parity Shares. 
 (r)
“Preferred Shares” means any and all series of preference shares of the Company, including the Series C Preferred Shares. 
 (s)
“Preferred Shares Directors” has the meaning specified in Section 9(b). 
 (t) “Tax Event” has the meaning specified
in Section 7(g). 
 (u) “Voting Preferred Shares” means, with regard to any election or removal of a Preferred Shares Director
or any other matter as to which the holders of Series C Preferred Shares are entitled to vote as specified in Section 9 of this Certificate of Designations, any and all series of Parity Shares upon which like voting rights have been conferred
and are exercisable with respect to such matter. 
 SECTION 4. DIVIDENDS. 

(a) RATE. Holders of Series C Preferred Shares shall be entitled to receive, only when, as and if declared by the Board of Directors or a duly
authorized committee of the Board of Directors, out of available funds for the payment of dividends under Bermuda law, non-cumulative cash dividends at the annual rate of 6.350% applied to the liquidation preference amount of US$25,000 per share of
Series C Preferred Shares. Such dividends shall be payable quarterly in arrears (as provided below in this Section 4(a)), but only when, as and if declared by the Board of Directors or a duly authorized committee of the Board of Directors, on
March 15, June 15, September 15 and December 15 of each year (each, a “Dividend Payment Date”), commencing on March 15, 2016; provided that if any such Dividend Payment Date would otherwise occur on a day
that is not a Business Day, such Dividend Payment Date shall instead be (and any dividend payable on the Series C Preferred Shares on such Dividend Payment Date shall instead be payable on) the immediately succeeding Business Day. 

Dividends, if so declared, that are payable on Series C Preferred Shares on any Dividend Payment Date will be payable to holders of record of
Series C Preferred Shares as they appear on the share register of the Company on the applicable record date, which shall be the 15th calendar day before such Dividend Payment Date or such other record date fixed by the Board of Directors or a duly
authorized committee of the Board of Directors that is not more than 60 nor less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date
whether or not such day is a Business Day. 

  
 3 

 Each dividend period (a “Dividend Period”) shall commence on and include a Dividend
Payment Date (other than the initial Dividend Period, which shall commence on and include the date of original issue of the Series C Preferred Shares, provided that, for any Series C Preferred Shares issued after such original issue date, the
initial Dividend Period for such shares may commence on and include such other date as the Board of Directors or a duly authorized committee of the Board of Directors shall determine and publicly disclose at the time such additional shares are
issued) and shall end on and include the calendar day preceding the next Dividend Payment Date. Dividends payable on the Series C Preferred Shares in respect of any Dividend Period shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. Dividends payable in respect of a Dividend Period shall be payable in arrears (i.e., on the first Dividend Payment Date after such Dividend Period). 

Dividends on the Series C Preferred Shares shall be non-cumulative. Accordingly, if the Board of Directors or a duly authorized committee of
the Board of Directors does not declare a dividend on the Series C Preferred Shares payable in respect of any Dividend Period before the related Dividend Payment Date, in full or otherwise, then such undeclared dividends shall not cumulate and will
not accrue and will not be payable and the Company shall have no obligation to pay such undeclared dividends for the applicable Dividend Period on the related Dividend Payment Date or at any future time or to pay interest with respect to such
dividends, whether or not dividends are declared on Series C Preferred Shares or any other preference shares the Company may issue in the future. 

Holders of Series C Preferred Shares shall not be entitled to any dividends or other distributions, whether payable in cash, securities or
other property, other than dividends (if any) declared and payable on the Series C Preferred Shares as specified in this Section 4 (subject to the other provisions of this Certificate of Designations). 

(b) PRIORITY OF DIVIDENDS. So long as any Series C Preferred Shares remain outstanding, unless full dividends on all outstanding Series C
Preferred Shares and any Parity Shares payable on a Dividend Payment Date have been declared and paid (or declared and a sum sufficient for the payment thereof has been set aside), (1) no dividend shall be declared or paid on the Ordinary
Shares or any other Junior Shares (other than a dividend payable solely in Ordinary Shares or in other Junior Shares) during the following Dividend Period, and (2) no Ordinary Shares or other Junior Shares shall be purchased, redeemed or
otherwise acquired for consideration by the Company, directly or indirectly (other than (i) as a result of a reclassification of Junior Shares for or into other Junior Shares, or the exchange or conversion of one Junior Share for or into
another Junior Share, (ii) through the use of the proceeds of a substantially contemporaneous sale of Junior Shares and (iii) as permitted by the Bye-Laws in effect on the date of issuance of the Series C Preferred Shares). 

When dividends are not paid (or declared and a sum sufficient for payment thereof set aside) in full on any Dividend Payment Date (or, in the
case of Parity Shares having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within a Dividend Period) upon the Series C Preferred Shares and any Parity Shares, all dividends declared by the Board
of Directors or a duly authorized committee thereof on the Series C Preferred Shares and all such Parity Shares and payable on such Dividend Payment Date (or, in the case of Parity Shares having dividend payment dates different from the Dividend

  
 4 

 
Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment Date) shall be declared by the Board of Directors or such committee of the Board of
Directors pro rata in accordance with the respective aggregate liquidation preference of the Series C Preferred Shares and any Parity Shares so that the respective amounts of such dividends shall bear the same ratio to each other as all declared but
unpaid dividends per share on the Series C Preferred Shares and all Parity Shares payable on such Dividend Payment Date (or, in the case of Parity Shares having dividend payment dates different from the Dividend Payment Dates, on a dividend payment
date falling within the Dividend Period related to such Dividend Payment Date) bear to each other. 
 (c) RESTRICTIONS ON PAYMENT OF
DIVIDENDS. Pursuant to and subject to the Companies Act, the Company may not lawfully declare or pay a dividend if the Company has reasonable grounds for believing that the Company is, and would after payment of the dividend be, unable to pay its
liabilities as they become due, or that the realizable value of the Company’s assets would, after payment of the dividend, be less than the aggregate value of the Company’s liabilities, issued share capital and share premium accounts. 

SECTION 5. PAYMENT OF ADDITIONAL AMOUNTS. 

(a) The Company will make all payments on the Series C Preferred Shares free and clear of and without withholding or deduction at source for,
or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any relevant taxing jurisdiction, unless such taxes, fees, duties, assessments or governmental
charges are required to be withheld or deducted by (x) the laws (or any regulations or rulings promulgated thereunder) of any relevant taxing jurisdiction or (y) an official position regarding the application, administration,
interpretation or enforcement of any such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in any relevant taxing jurisdiction). If a withholding or deduction at
source is required, the Company will, subject to certain limitations and exceptions described below, pay to the holders of the Series C Preferred Shares such additional amounts as dividends as may be necessary so that the net amounts paid will be
equal to the amounts the Company would otherwise have been required to pay had no such withholding or deduction been required. 
 (b) The
Company will not be required to pay any additional amounts for or on account of: 
 (i) any tax, fee, duty, assessment or
governmental charge of whatever nature that would not have been imposed but for the fact that such holder was a resident, domiciliary or national of, or engaged in business or maintained a permanent establishment or was physically present in, the
relevant taxing jurisdiction or any political subdivision thereof or otherwise had some connection with the relevant taxing jurisdiction other than by reason of the mere ownership of, or receipt of payment under, such Series C Preferred Shares or
any Series C Preferred Shares presented for payment more than 30 days after the Relevant Date (except to the extent that the holder would have been entitled to such amounts if it had presented such shares for payment on any day within such 30 day
period). The “Relevant Date” means, in respect of any payment, 

  
 5 

 
the date on which such payment first becomes due and payable, but if the full amount of the moneys payable has not been received by the dividend disbursing agent on or prior to such due date, it
means the first date on which, the full amount of such moneys having been so received and being available for payment to holders, notice to that effect shall have been duly given to the holders of the Series C Preferred Shares; 

(ii) any estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or other governmental charge
or any tax, assessment or other governmental charge that is payable otherwise than by withholding or deduction from payment of the liquidation preference or of any dividends on the Series C Preferred Shares; 

(iii) any tax, fee, duty, assessment or other governmental charge that is imposed or withheld by reason of the failure by the
holder of such Series C Preferred Shares to comply with any reasonable request by the Company addressed to the holder within 90 days of such request (a) to provide information concerning the nationality, residence or identity of the holder or
(b) to make any declaration or other similar claim or satisfy any information or reporting requirement, which is required or imposed by statute, treaty, regulation or administrative practice of the relevant taxing jurisdiction as a precondition
to exemption from all or part of such tax, fee, duty, assessment or other governmental charge; or 
 (iv) any combination of
items (i), (ii) and (iii). 
 (c) In addition, the Company will not pay additional amounts with respect to any payment on any such
Series C Preferred Shares to any holder who is a fiduciary, partnership, limited liability company or other pass-through entity other than the sole beneficial owner of such Series C Preferred Shares if such payment would be required by the laws of
the relevant taxing jurisdiction to be included in the income for tax purposes of a beneficiary or partner or settlor with respect to such fiduciary or a member of such partnership, limited liability company or other pass-through entity or a
beneficial owner to the extent such beneficiary, partner or settlor would not have been entitled to such additional amounts had it been the holder of the Series C Preferred Shares. 

SECTION 6. LIQUIDATION RIGHTS. 

(a) VOLUNTARY OR INVOLUNTARY LIQUIDATION. In the event of any liquidation, dissolution or winding-up of the Company, whether voluntary or
involuntary, holders of Series C Preferred Shares shall be entitled to receive, out of the assets of the Company or proceeds thereof (whether capital or surplus) available for distribution to shareholders of the Company, after satisfaction of all
liabilities and obligations to creditors of the Company, if any, but before any distribution of such assets or proceeds is made to or set aside for the holders of Ordinary Shares and any other Junior Shares, in full an amount equal to US$25,000 per
Series C Preferred Share, plus declared and unpaid dividends, if any. 

  
 6 

 (b) PARTIAL PAYMENT. If in any distribution described in Section 6(a) above, the assets of
the Company or proceeds thereof are not sufficient to pay the Liquidation Preferences (as defined below) in full to all holders of Series C Preferred Shares and all holders of any Parity Shares, the amounts paid to the holders of Series C Preferred
Shares and to the holders of all such other Parity Shares shall be paid pro rata in accordance with the respective aggregate Liquidation Preferences of the holders of Series C Preferred Shares and the holders of all such other Parity Shares but only
to the extent the Company has assets or proceeds thereof available after satisfaction of all liabilities to creditors. In any such distribution, the “Liquidation Preference” of any holder of Preferred Shares of the Company shall mean the
amount otherwise payable to such holder in such distribution (assuming no limitation on the assets of the Company available for such distribution), including any declared and unpaid dividends (and, in the case of any holder of shares other than
Series C Preferred Shares and on which dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued cumulative dividends, whether or not declared, as applicable). 

(c) RESIDUAL DISTRIBUTIONS. If the Liquidation Preference has been paid in full to all holders of Series C Preferred Shares and any holders of
Parity Shares, the holders of other shares of the Company shall be entitled to receive all remaining assets of the Company (or proceeds thereof) according to their respective rights and preferences. 

(d) MERGER, CONSOLIDATION AND SALE OF ASSETS NOT LIQUIDATION. For purposes of this Section 6, the consolidation, amalgamation, merger,
arrangement, reincorporation, de-registration or reconstruction involving the Company or the sale or transfer of all or substantially all of the shares or the property or business of the Company shall not be deemed to constitute a liquidation,
dissolution or winding-up. 
 SECTION 7. REDEMPTION. 

(a) OPTIONAL REDEMPTION. 
 (1) The
Series C Preferred Shares may not be redeemed by the Company prior to December 15, 2020, subject to the exceptions set forth in Section 7(a)(2) and Section 7(f) and (g). On or after December 15, 2020, the Company, at its option,
may redeem, in whole at any time or in part from time to time, the shares of Series C Preferred Shares at the time outstanding, upon notice given as provided in Section 7(c) below, at a redemption price equal to US$25,000 per share, together
(except as otherwise provided herein below) with an amount equal to any dividends that have been declared but not paid prior to the redemption date (but with no amount in respect of any dividends that have not been declared prior to such date). The
redemption price for any shares of Series C Preferred Shares shall be payable on the redemption date to the holder of such shares against book-entry transfer or surrender of the certificate(s) evidencing such shares to the Company or its agent. Any
declared but unpaid dividends payable on a redemption date that occurs subsequent to the Dividend Record Date for a Dividend Period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be
paid to the holder of record of the redeemed shares on such Dividend Record Date relating to the Dividend Payment Date as provided in Section 4 above. 

Prior to delivering notice of redemption as provided below, the Company will file with its corporate records a certificate signed by one of the
Company’s officers affirming the Company’s compliance with the redemption provisions under the Companies Act relating to the Series C Preferred Shares, and stating that there are reasonable grounds for believing that the

  
 7 

 
Company is, and after the redemption will be, able to pay its liabilities as they become due and that the redemption will not render the Company insolvent or cause it to breach any provision of
applicable Bermuda law or regulation. The Company will mail a copy of this certificate with the notice of any redemption. 
 (2) At any time
prior to December 15, 2020, if the Company shall have submitted to the holders of Ordinary Shares a proposal for an amalgamation, consolidation, merger, arrangement, reconstruction, reincorporation, deregistration or any other similar
transaction involving the Company that requires, or the Company shall have submitted any proposal for any other matter that, as a result of any change in Bermuda law after such Series C Preferred Shares are issued (whether by enactment or official
interpretation), that requires, in either case, a vote of the holders of the Series C Preferred Shares at the time outstanding, voting separately as a single class (alone or with one or more other classes or series of preference shares), the Company
shall have the option, by not less than 30 days nor more than 60 days prior written notice, to the relevant holders, in such form and given in such manner as to be in accordance with Section 7(c) below, to redeem all and not less than all of
the outstanding Series C Preferred Shares pursuant to this clause for cash at a redemption price of US$26,000 per share being redeemed, plus all declared and unpaid dividends, if any, to the date of redemption, without interest on such unpaid
dividends. 
 (b) NO SINKING FUND. The Series C Preferred Shares will not be subject to any mandatory redemption, sinking fund, retirement
fund or purchase fund or other similar provisions. Holders of Series C Preferred Shares will have no right to require redemption, repurchase or retirement of any shares of Series C Preferred Shares. 

(c) NOTICE OF REDEMPTION. Notice of every redemption of Series C Preferred Shares shall be given by first class mail, postage prepaid,
addressed to the holders of record of the shares to be redeemed at their respective last addresses appearing on the share register of the Company. Such mailing shall be at least 30 days and not more than 60 days before the date fixed for redemption.
Any notice mailed as provided in this subsection shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing
thereof, to any holder of Series C Preferred Shares designated for redemption shall not affect the validity of the proceedings for the redemption of any other Series C Preferred Shares. Notwithstanding the foregoing, if the Series C Preferred Shares
or any depositary shares representing interests in the Series C Preferred Shares are issued in book-entry form through DTC or any other similar facility, notice of redemption may be given to the holders of Series C Preferred Shares at such time and
in any manner permitted by such facility. Each such notice given to a holder shall state: (1) the redemption date; (2) the number of Series C Preferred Shares to be redeemed and, if less than all the Series C Preferred Shares held by such
holder are to be redeemed, the number of such Series C Preferred Shares to be redeemed from such holder; (3) the redemption price; and (4) that the Series C Preferred Shares should be delivered via book-entry transfer or the place or
places where certificates for such Series C Preferred Shares are to be surrendered for payment of the redemption price. 

  
 8 

 (d) PARTIAL REDEMPTION. In case of any redemption of only part of the Series C Preferred Shares
at the time outstanding, the shares to be redeemed shall be selected either pro rata or in such other manner as the Company may determine to be fair and equitable. Subject to the provisions hereof, the Company shall have full power and authority to
prescribe the terms and conditions upon which Series C Preferred Shares shall be redeemed from time to time. If fewer than all the shares represented by any certificate are redeemed, a new certificate shall be issued representing the unredeemed
shares without charge to the holder thereof. 
 (e) EFFECTIVENESS OF REDEMPTION. If notice of redemption has been duly given and if on or
before the redemption date specified in the notice all funds necessary for the redemption have been set aside by the Company, separate and apart from its other funds, in trust for the pro rata benefit of the holders of the Series C Preferred Shares
called for redemption, so as to be and continue to be available therefor, then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation or transferred via book-entry, on and after the
redemption date, no further dividends will be declared on all shares so called for redemption, all shares so called for redemption shall no longer be deemed outstanding and all rights with respect to such shares shall forthwith on such redemption
date cease and terminate, except only the right of the holders thereof to receive the amount payable on such redemption, without interest. 

(f) REDEMPTION UPON CAPITAL DISQUALIFICATION EVENT. At any time within 90 days following the occurrence of the date (a “Capital Redemption
Trigger Date”) on which the Company has reasonably determined that, as a result of: 
 (i) any amendment to, or change
in, the laws or regulations of Bermuda that is enacted or becomes effective after the initial issuance of the Series C Preferred Shares; 

(ii) any proposed amendment to, or change in, the laws or regulations of Bermuda that is announced or becomes effective after
the initial issuance of the Series C Preferred Shares; or 
 (iii) any official administrative decision or judicial decision
or administrative action or other official pronouncement interpreting or applying the laws or regulations of Bermuda that is announced after the initial issuance of the Series C Preferred Shares, a Capital Disqualification Event has occurred; 

the Series C Preferred Shares will be redeemable at the Company’s option, in whole or in part, upon notice given as provided in
Section 7(c), at a redemption price equal to US$25,000 per Series C Preferred Share, plus all declared and unpaid dividends, if any, to, but excluding, the date of redemption, without accumulation of any undeclared dividends; provided that any
such redemption in part may only be made if (x) the Company has reasonably determined that the portion of the Series C Preferred Shares to be redeemed are the subject of the Capital Disqualification Event and (y) after giving effect to
such redemption, the Company has reasonably determined that a Capital Disqualification Event will not exist with respect to the then-outstanding Series C Preferred Shares and such redemption will not result in the suspension or removal of the
depositary shares representing the Series C Preferred Shares from listing on the New York Stock Exchange. 

  
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 (g) TAX REDEMPTION. (1) If as a result of a “change in tax law” there is a
substantial probability that the Company or any successor company would be required to pay additional amounts with respect to the Series C Preferred Shares on the next succeeding Dividend Payment Date, and the payment of those additional amounts
cannot be avoided by the use of any reasonable measures available to the Company or any successor company (a “Tax Event”), the Company shall be entitled at any time thereafter, by not less than 30 days nor more than 60 days prior written
notice to the relevant holders of the Series C Preferred Shares in such form and given in such manner as in accordance with Section 7(c) above, to redeem all Series C Preferred Shares pursuant to this clause for cash at a redemption price of
US$25,000 per share, plus all declared and unpaid dividends, if any, to the date of redemption, without interest on such unpaid dividends. A “change in tax law” shall be (a) a change in or amendment to laws, regulations or rulings of
any relevant taxing jurisdiction, (b) a change in the official application or interpretation of those laws, regulations or rulings, (c) any execution of or amendment to any treaty affecting taxation to which any relevant taxing
jurisdiction is party or (d) a decision rendered by a court of competent jurisdiction in any relevant taxing jurisdiction, whether or not such decision was rendered with respect to the Company, in each case described in clauses (a) –
(d) above, occurring after November 17, 2015. As used herein, a “relevant taxing jurisdiction” is (a) Bermuda or any political subdivision or governmental authority of or in Bermuda with the power to tax, (b) any
jurisdiction from or through which the Company or its dividend disbursing agent is making payments on the Series C Preferred Shares or any political subdivision or governmental authority of or in that jurisdiction with the power to tax, or
(c) any other jurisdiction in which the Company or any successor company is organized or generally subject to taxation or any political subdivision or governmental authority of or in that jurisdiction with the power to tax. 

(2) If there is a substantial probability that the entity formed by a consolidation, merger or amalgamation involving the Company or the entity
to which the Company conveys, transfers or leases substantially all of its properties and assets will be required to pay additional amounts in respect of any tax, assessment or governmental charge imposed on any holder of Series C Preferred Shares
as a result of a change in tax law that occurred after the date of the consolidation, merger, amalgamation, conveyance, transfer or lease, and the payment of those additional amounts cannot be avoided by the use of any reasonable measures available
to the Company or any successor company, the Company shall be entitled at any time thereafter by not less than 30 days nor more than 60 days prior written notice to the relevant holders of Series C Preferred Shares, in such form and given in such
manner as in accordance with Section 7(c) above, to redeem, in whole, the Series C Preferred Shares pursuant to this clause for cash at a redemption price of US$25,000 per share, plus all declared and unpaid dividends, if any, to the date of
redemption, without interest on such unpaid dividends. 
 SECTION 8. SUBSTITUTION OR VARIATION 

(a) In lieu of redemption, at any time following a Tax Event or at any time following a Capital Disqualification Event, the Company may,
without the consent of any holders of the Series C Preferred Shares, vary the terms of the Series C Preferred Shares such that they remain securities, or exchange the Series C Preferred Shares with new securities, which (i) in the case of a Tax
Event, would eliminate the substantial probability that the Company or any successor corporation would be required to pay any additional amounts with respect to the 

  
 10 

 
Series C Preferred Shares as a result of a change in tax law, or (ii) in the case of a Capital Disqualification Event, for purposes of determining the solvency margin, capital adequacy
ratios or any other comparable ratios, regulatory capital resource or level of the Company or any member thereof, where subdivided into tiers, qualify as Tier 1 or Tier 2 capital securities under then-applicable Capital Adequacy Regulations imposed
upon the Company by the BMA (or any successor agency or then-applicable regulatory authority) which may include enhanced capital adequacy regulation designed to achieve full equivalency under the Solvency II Directive (Directive 2009/13/EC) and,
which includes the Company’s individual and group Enhanced Capital Requirements. In either case, the terms of the varied securities or new securities considered in the aggregate cannot be less favorable to holders than the terms of the Series C
Preferred Shares prior to being varied or exchanged; provided that no such variation of terms or securities received in exchange shall change the specified denominations of, dividend payable on, the redemption dates (other than any extension of the
period during which an optional redemption may not be exercised by the Company) or currency of, the Series C Preferred Shares, reduce the liquidation preference thereof, lower the ranking in right of payment with respect to the payment of dividends
or the distribution of assets upon liquidation, dissolution or winding-up of the Series C Preferred Shares, or change the foregoing list of items that may not be so amended as part of such variation or exchange. Further, no such variation of terms
or securities received in exchange shall impair the right of a holder of the securities to institute suit for the payment of any amounts due (as provided under this Certificate of Designations), but unpaid with respect to such holder’s
securities. 
 (b) Prior to any variation or exchange, the Company will be required to receive an opinion of independent legal advisers of
recognized standing to the effect that holders and beneficial owners of the Series C Preferred Shares (including as holders and beneficial owners of the varied or exchanged securities) will not recognize income, gain or loss for United States
federal income tax purposes as a result of such variation or exchange and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case had such variation or exchange
not occurred. 
 (c) Any variation or exchange of the Series C Preferred Shares described above will be made after notice is given to the
holders of the Series C Preferred Shares not less than 30 days nor more than 60 days prior to the date fixed for variation or exchange, as applicable. 

SECTION 9. VOTING RIGHTS. 

(a) GENERAL. The holders of Series C Preferred Shares shall not have any voting rights except as set forth below or as otherwise from time to
time required by law. 
 (b) RIGHT TO ELECT TWO DIRECTORS UPON NONPAYMENT EVENTS. If and whenever dividends on any Series C Preferred Shares
shall not have been declared and paid for the equivalent of at least six Dividend Periods, whether or not consecutive (a “Nonpayment Event”), the holders of Series C Preferred Shares, together with the holders of any outstanding shares of
Voting Preferred Shares, voting together as a single class, shall be entitled to elect two additional directors to the Board of Directors (the “Preferred Shares Directors”), provided that it shall be a qualification for election for any
such Preferred Shares 

  
 11 

 
Director that the election of such director shall not cause the Company to violate the corporate governance requirements of the U.S. Securities and Exchange Commission or the New York Stock
Exchange (or any other securities exchange or other trading facility on which securities of the Company may then be listed or traded) that listed or traded companies must have a majority of independent directors. Each Preferred Shares Director will
be added to an already existing class of directors. The number of Preferred Shares Directors on the Board of Directors shall never be more than two at any one time. 

In the event that the holders of the Series C Preferred Shares, and any such other holders of Voting Preferred Shares, shall be entitled to
vote for the election of the Preferred Shares Directors following a Nonpayment Event, such directors shall be initially elected following such Nonpayment Event only at a special meeting called at the request of the holders of record of at least 20%
of the aggregate voting power of the Series C Preferred Shares or of any other such series of Voting Preferred Shares then outstanding (unless such request for a special meeting is received less than 90 days before the date fixed for the next annual
or special meeting of the shareholders of the Company, in which event such election shall be held only at such next annual or special general meeting of shareholders), and at each subsequent annual general meeting of shareholders of the Company, so
long as the rights related to a Nonpayment Event remain in effect. Such request to call a special general meeting for the initial election of the Preferred Shares Directors after a Nonpayment Event shall be made by written notice, signed by the
requisite holders of Series C Preferred Shares or Voting Preferred Shares, and delivered to the Secretary of the Company in person, by first class mail, by any manner as permitted in the Bye-laws or by any other manner as permitted by Bermuda law.
Each Preferred Shares Director will be added to an already existing class of directors. The number of Preferred Share Directors shall never be more than two at any one time. 

When dividends have been paid (or declared and a sum sufficient for payment thereof set aside) in full on the Series C Preferred Shares for at
least four consecutive Dividend Periods after a Nonpayment Event, then the right of the holders of Series C Preferred Shares to elect the Preferred Shares Directors shall cease (but subject always to revesting of such voting rights in the case of
any future Nonpayment Event pursuant to this Section 9) and the number of Dividend Periods in which dividends have not been declared and paid shall be reset to zero, and, if and when any rights of holders of Series C Preferred Shares and Voting
Preferred Shares to elect the Preferred Shares Directors shall have ceased, the terms of office of all the Preferred Shares Directors shall forthwith terminate and the number of directors constituting the Board of Directors shall automatically be
reduced accordingly. 
 Any Preferred Shares Director may be removed at any time without cause by the holders of record of a majority of the
aggregate voting power, as determined by the Bye-laws of the Company, of Series C Preferred Shares and Voting Preferred Shares then outstanding (voting together as a single class), when they have the voting rights described above. Until the right of
the holders of Series C Preferred Shares and any Voting Preferred Shares to elect the Preferred Shares Directors shall cease, any vacancy in the office of a Preferred Shares Director (other than prior to the initial election of Preferred Shares
Directors after a Nonpayment Event) may be 

  
 12 

 
filled by the written consent of the Preferred Shares Director remaining in office, or if none remains in office, by a vote of the holders of record of a majority of the outstanding shares of the
Series C Preferred Shares and any Voting Preferred Shares (voting together as a single class), when they have the voting rights described above. Any such vote of holders of Series C Preferred Shares and Voting Preferred Shares to remove, or to fill
a vacancy in the office of, a Preferred Shares Director may be taken only at a special meeting of such shareholders, called as provided above for an initial election of Preferred Shares Directors after a Nonpayment Event (unless such request is
received less than 90 days before the date fixed for the next annual or special general meeting of the shareholders of the Company, in which event such election shall be held at such next annual or special general meeting of shareholders). The
Preferred Shares Directors shall each be entitled to one vote per director on any matter that shall come before the Board of Directors for a vote, unless otherwise adjusted pursuant to the Bye-Laws. Each Preferred Shares Director elected at any
special general meeting of shareholders of the Company or by written consent of the other Preferred Shares Director shall hold office until the next annual general meeting of the shareholders of the Company if such office shall not have previously
terminated as above provided. 
 (c) VARIATION OF RIGHTS. Other than as provided for in Section 8(a) (which permits certain variations
without consent by the holders of the Series C Preference Shares), any or all of the special rights of the Series C Preferred Shares may be altered or abrogated with the consent in writing of the holders of not less than seventy-five percent
(75%) of the issued shares of that class or with the sanction of a resolution passed at a separate general meeting of the holders by not less than seventy-five percent (75%) of such shares voting in person or proxy. The necessary quorum
requirements for the separate general meeting shall be two or more persons holding or representing by proxy more than fifty percent (50%) of the aggregate voting power of the shares of the relevant class. The rights attaching to or the terms of
issue of such shares or class of shares, as the case may be, shall not be deemed to be altered by (i) the creation or issue of further shares ranking pari passu therewith; (ii) the creation or issue for full value (as determined by the
Board of Directors) of further shares ranking as regards participation in profits or assets of the Company or otherwise in priority to them; or (iii) the purchase or redemption by the Company of any of its own shares. 

(d) CHANGES FOR CLARIFICATION. Without the consent of the holders of the Series C Preferred Shares, so long as such action does not affect the
special rights, preferences, privileges and voting powers, and limitations and restrictions, of the Series C Preferred Shares taken as a whole, the Company may amend, alter, supplement or repeal any terms of the Series C Preferred Shares: 

(i) to cure any ambiguity, or to cure, correct or supplement any provision contained in this Certificate of Designations that
may be defective or inconsistent; or 
 (ii) to make any provision with respect to matters or questions arising with respect
to the Series C Preferred Shares that is not inconsistent with the provisions of this Certificate of Designations. 

  
 13 

 (e) CHANGES AFTER PROVISION FOR REDEMPTION. No vote or consent of the holders of Series C
Preferred Shares shall be required pursuant to Section 9(b), (c) or (d) above if, at or prior to the time when the act with respect to which such vote or consent would otherwise be required pursuant to such Section shall be effected,
all outstanding Series C Preferred Shares shall have been redeemed, or shall have been called for redemption upon proper notice and sufficient funds shall have been set aside by the Company for such redemption, in each case pursuant to
Section 8 above. 
 (f) PROCEDURES FOR VOTING AND CONSENTS. The rules and procedures for calling and conducting any meeting of the
holders of Series C Preferred Shares (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of written consents and any other aspect or matter with
regard to such a meeting or such consents shall be governed by any rules the Board of Directors or a duly authorized committee of the Board of Directors, in its discretion, may adopt from time to time, which rules and procedures shall conform to the
requirements of the Memorandum of Association, the Bye-Laws, applicable law and any national securities exchange or other trading facility on which the Series C Preferred Shares is listed or traded at the time. Whether the vote or consent of the
holders of a plurality, majority or other portion of the shares of Series C Preferred Shares and any Voting Preferred Shares has been cast or given on any matter on which the holders of shares of Series C Preferred Shares are entitled to vote shall
be determined by the Company by reference to the aggregate voting power, as determined by the Bye-laws of the Company, of the shares voted or covered by the consent. 

SECTION 10. RANKING. The Series C Preferred Shares will, with respect to the payment of dividends and distributions of assets upon
liquidation, dissolution and winding-up, rank senior to Junior Shares and pari passu with any Parity Shares of the Company, including other series of Preferred Shares of the Company that the Company may issue from time to time in the future. 

SECTION 11. RECORD HOLDERS. To the fullest extent permitted by applicable law, the Company and the transfer agent for the Series C
Preferred Shares may deem and treat the record holder of any share of Series C Preferred Shares as the true and lawful owner thereof for all purposes, and neither the Company nor such transfer agent shall be affected by any notice to the contrary.

 SECTION 12. NOTICES. All notices or communications in respect of Series C Preferred Shares shall be sufficiently given if given in
writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Certificate of Designations, Bye-Laws or by applicable law. Notwithstanding the foregoing, if Series C Preferred
Shares or depositary shares representing an interest in Series C Preferred Shares are issued in book-entry form through DTC, such notices may be given to the holders of the Series C Preferred Shares in any manner permitted by DTC. 

SECTION 13. NO PREEMPTIVE RIGHTS. No share of Series C Preferred Shares shall have any rights of preemption whatsoever as to any
securities of the Company, or any warrants, rights or options issued or granted with respect thereto, regardless of how such securities, or such warrants, rights or options, may be designated, issued or granted. 

  
 14 

 SECTION 14. OTHER RIGHTS. The shares of Series C Preferred Shares shall not have any voting
powers, preferences or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Memorandum of Association, Bye-laws or as provided by applicable law.

  
 15 

 IN WITNESS WHEREOF, ENDURANCE SPECIALTY HOLDINGS LTD. has caused this certificate to be signed by
John V. Del Col, its General Counsel and Secretary, this 24th day of November, 2015. 
  

			
	ENDURANCE SPECIALTY HOLDINGS LTD
		
	By:	 	 /s/ John V. Del Col

		 	Name: John V. Del Col
		 	Title: General Counsel and Secretary

 [Signature Page to Certificate of Designations]

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