Document:

Amendment No. 1 to Amended and Restated Loan and Security Agreement

 Exhibit 10.17 
 AMENDMENT NO. 1 
 TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 8th day of March, 2010, by and between SILICON VALLEY BANK
(“Bank”) and CALIX NETWORKS, INC., a Delaware corporation (“Borrower”) whose address is 1035 N. McDowell Boulevard, Petaluma, CA 94954. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the below-defined Loan Agreement. 
 RECITALS 
 A. Bank and Borrower have entered into that certain Amended and Restated Loan and Security Agreement, having an Effective Date of
August 21, 2009 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement, among other things, to modify certain financial covenants therein, upon the terms and conditions set forth herein. 
 D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms,
subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration
of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Amendments to Loan Agreement. 
 1.1 Section 6.9 of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 
 “6.9 Financial Covenants. 
 Borrower shall maintain, when tested as of each applicable date set forth below, on a consolidated basis with respect to
Borrower and its Subsidiaries: 
 “(a) Minimum Modified Quick Ratio: A Modified Quick Ratio of no
less than that set forth in the table below when measured on the last day of the fiscal month set forth opposite thereto. 

			
	 Fiscal Month
	  	Minimum Modified Quick Ratio
	 February 2010
	  	1.15:1.00
	 March 2010
	  	1.15:1.00
	 April 2010
	  	1.15:1.00
	 May 2010
	  	1.15:1.00
	 June 2010
	  	1.25:1.00
	 July 2010
	  	1.25:1.00
	 August 2010
	  	1.25:1.00
	 September 2010
	  	1.35:1.00
	 October 2010
	  	1.35:1.00
	 November 2010
	  	1.35:1.00
	 December 2010 and each fiscal month thereafter
	  	1.40:1.00

 (b)
Maximum Leverage Ratio: A Leverage Ratio no greater than that set forth in the table below when measured for the period ending on the date set forth opposite thereto: 
  

			
	 Period
	  	Maximum Leverage Ratio
	 Annualized 6 months ending March 26, 2011
	  	3.00:1.00
	 Annualized 9 months ending June 25, 2011
	  	2.75:1.00
	 12 months ending September 24, 2011
	  	2.50:1.00
	 12 months ending December 31, 2011
	  	2.25:1.00
	 12 months ending March 26, 2012 and at each fiscal quarter end thereafter for the 12 months then ended
	  	2.00:1.00

 (c)
Minimum Consolidated Adjusted EBITDA: Consolidated Adjusted EBITDA of an amount greater than that set forth in the table below when measured for the fiscal quarter ending on the date set forth opposite thereto: 
  

				
	 Fiscal Quarter Ending
	  	Consolidated Adjusted
EBITDA Amount	 
	 March 27, 2010
	  	($10,000,000	) 
	 June 26, 2010
	  	($3,500,000	) 
	 September 25, 2010
	  	($2,000,000	) 
	 December 31, 2010
	  	$10,000,000	  

 (d) Minimum Fixed Charge Coverage Ratio: A Fixed Charge Coverage
Ratio not less than that set forth in the table below when measured for the period ending on the date set forth opposite thereto: 
  

			
	 Period Ending
	  	Minimum Fixed
Charge Coverage Ratio
	 6 months ending March 26, 2011
	  	1.25:1.00
	 9 months ending June 25, 2011
	  	1.25:1.00
	 12 months ending September 24, 2011 and at each fiscal quarter ending thereafter, for the 12 months then
ended
	  	1.25:1.00

 ” 
 1.2 The defined term “Asset Based Threshold” set forth in Section 13.1
of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 
 ““Asset
Based Threshold” is as set forth in the table below when measured on the last day of the fiscal month set forth opposite thereto: 
  

			
	 Fiscal Month
	  	Asset Based Threshold
	 February 2010
	  	1.25:1.00
	 March 2010
	  	1.25:1.00
	 April 2010
	  	1.25:1.00
	 May 2010
	  	1.25:1.00
	 June 2010
	  	1.35:1.00
	 July 2010
	  	1.35:1.00
	 August 2010
	  	1.35:1.00
	 September 2010 and each fiscal month thereafter
	  	Not applicable

 1.3 The defined term “Fixed Charge Coverage Ratio” set forth in Section 13.1 of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 
 ““Fixed Charge Coverage Ratio” is, as of any date of determination, the ratio of
(a) (i) Consolidated Adjusted EBITDA less (ii) 25% of capital expenditures and less (iii) cash taxes, to (b) (i) the current portion of Indebtedness (exclusive of Indebtedness under the Revolving Line and
the face amount of Letters of Credit issued by Bank in excess of the Revolving Line) plus (ii) accrued interest expense on all Consolidated Funded Debt as shown on Borrower’s income statement for such period, in each case for the
period then ended. For the period ending March 26, 2011, the current portion of Indebtedness shall be multiplied by .50, and for the period ending June 25, 2011, by .75.” 

 1.4 The defined term “Modified Quick Ratio” set forth in
Section 13.1 of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 
 ““Modified Quick Ratio” is, as of any date of determination, the ratio of (a) the sum of (i) Borrower’s unrestricted cash and Cash Equivalents maintained in any Collateral Account which is subject to a
Control Agreement and (ii) without duplication, unrestricted and restricted (to the extent such restricted amounts are subject to a first priority perfected security interest in favor of Bank) cash and Cash Equivalents held at Bank and Bank
Affiliates and (iii) Borrower’s net Accounts, to (b) the sum of (i) Borrower’s current liabilities (excluding Deferred Revenue and non-cash warrant liabilities) and (ii) the long-term portion of Consolidated Funded Debt
and (iii) the face amount of Letters of Credit issued by Bank and currently outstanding.” 
 1.5
Exhibit B (Compliance Certificate) of the Loan Agreement is hereby amended and restated in its entirety and attached hereto as Exhibit B. 
 2. Limitation of Amendments. 
 2.1 The amendments set
forth in Section 1, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or other modification of any other term or
condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document. 
 2.2 This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions,
representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 
 3. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as
follows: 
 3.1 Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as
of such date), and (b) no Event of Default has occurred and is continuing; 
 3.2 Borrower has the
power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 3.3 The organizational documents of Borrower delivered to Bank as of the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue
to be in full force and effect; 
 3.4 The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 3.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or
authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

 3.6 The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 
 3.7 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 4. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together
shall be deemed to constitute one and the same instrument. 
 5. Effectiveness. This Amendment shall be
deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrower’s payment of an amendment fee in an amount equal to $100,000. 
 [Signature page follows.] 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	BANK	 		 	BORROWER
			
	SILICON VALLEY BANK	 		 	CALIX NETWORKS, INC.
					
	By:	 	/s/ Mike Meier	 		 	By:	 	/s/ Kelyn Brannon
	Name:	 	Mike Meier	 		 	Name:	 	Kelyn Brannon
	Title:	 	Relationship Manager	 		 	Title:	 	Executive VP and CFO

 Amendment No. 1 to Amended and Restated Loan and Security Agreement 

 EXHIBIT B 
 FORM OF COMPLIANCE CERTIFICATE 
  

							
	TO:	  	SILICON VALLEY BANK	  	Date: 	  	 
	FROM:	  	CALIX NETWORKS, INC.	  		  	

 The undersigned authorized officer of Calix Networks, Inc. (“Borrower”) certifies that under the
terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower and Bank (as amended from time to time, the “Loan Agreement”), (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations
and warranties in the Loan Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date,
(4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as
otherwise permitted pursuant to the terms of Section 5.9 of the Loan Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next
except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Loan Agreement, and
that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement. 
  

					
	Please indicate compliance status by circling Yes/No under “Complies” column.
			
	 Reporting Covenant
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes     No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 150 days	  	Yes     No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes     No
			
	Transaction Report, A/R & A/P Agings	  	Monthly within 20 days or weekly if the Modified Quick Ratio as of the most recent month end is less than the Asset Based Threshold	  	Yes     No
	
	[The following Intellectual Property was registered (or a registration application submitted) after the Effective Date (if no registrations, state “None”)]
1

  

	1	 Include if certificate is delivered within 30 days after the end of a quarter 

										
	 Financial Covenant
	  	Required	 	 	Actual	  	Complies
	 Minimum Modified Quick Ratio (measured monthly)
	  	 	_____	2:1.0 	 	 	_____:1.0	  	Yes    No
	 Maximum Leverage Ratio
	  	 	_____	3:1.0 	 	 	_____:1.0	  	Yes    No
	 Minimum Consolidated Adjusted EBITDA
	  	$	________	4 	 	$	________	  	Yes    No
	 Minimum Fixed Charge Coverage Ratio
	  	 	_____	5:1.0 	 	 	____:1.0	  	Yes    No

  

											
	 Performance Pricing
	  	Applies
	 Leverage Ratio
	  	Applicable Margins	  	 
	 	  	Term Loan	  	Advances	  	 
	 	  	LIBOR	  	Prime	  	LIBOR	  	Prime	  	 
	 Greater than or equal to 2.00:1.00
	  	6.50	  	4.00	  	4.50	  	2.00	  	Yes    No
	 Less than 2.00:1.00 but greater than or equal to 1.00:1.00
	  	4.50	  	2.00	  	3.50	  	1.00	  	Yes    No
	 Less than 1.00:1.00
	  	3.00	  	0.50	  	3.00	  	0.50	  	Yes    No

  

	2	 Insert as applicable from Section 6.9(a). 

	3	 Insert as applicable from Section 6.9(b). 

	4	 Insert as applicable from Section 6.9(c). 

	5	 Insert as applicable from Section 6.9(d). 

 The following financial covenant analyses and information set forth in Schedule 1 attached
hereto are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the
certification above: (If no exceptions exist, state “No exceptions to note.”) 
  

			
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	----------------------------------------------------------------------

  

									
	CALIX NETWORKS, INC.	 		 	BANK USE ONLY
					
		 		 		 	Received by:	 	 
	By:	 	 	 		 		 	 AUTHORIZED SIGNER

	Name:	 	 	 		 	Date:	 	 
	Title:	 	 	 		 		 	
		 		 		 	Verified:	 	 
		 		 		 		 	 AUTHORIZED SIGNER

		 		 		 	Date:	 	 
				
		 		 		 	Compliance Status:        Yes    No

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 In the event
of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

			
		
	Dated:	 	 

					
			
	I.	 	Modified Quick Ratio (Section 6.9(a))	  	
		
	Required:                 :1.00	  	
		
	Actual:                     :1.00	  	
			
	A.	 	Unrestricted cash and Cash Equivalents maintained in any Collateral Account which is subject to a Control Agreement	  	$____
	B.	 	Without duplication, unrestricted and restricted (to the extent such restricted amounts are subject to a first priority perfected security interest in favor of Bank) cash and
Cash Equivalents held at Bank and Bank Affiliates	  	$____
	C.	 	Net Accounts	  	$____
	D.	 	Line A plus line B plus line C	  	$____
	E.	 	Current Liabilities (excluding Deferred Revenue and non-cash warrant liabilities)	  	$____
	F.	 	Long-term portion of Consolidated Funded Debt	  	$____
	G.	 	Face amount of Letters of Credit issued by Bank and currently outstanding	  	$____
	H.	 	Line E plus line F plus line G	  	$____
	I.	 	Ratio of Line D to Line H	  	_____:1.00

 Is line I equal to or greater than
            :1.00? 
               No, not in
compliance                                        
                                         
         Yes, in compliance 
  

					
	 II.
	  	Leverage Ratio (Section 6.9(b))	  	
		
	Required:                    :1.00	  	
		
	Actual:                        :1.00	  	
			
	 A.
	  	Consolidated Funded Debt (pursuant to detailed calculation on Schedule 2)	  	$____        
	 B.
	  	Consolidated Adjusted EBITDA for the periods specified in Section 6.9(b) of the Loan Agreement (pursuant to detailed calculation on Schedule 3)	  	$____        
	 C.
	  	Ratio of Line A to Line B	  	_____:1.00

 Is line C equal to or greater than
            :1.00? 
               No, not in
compliance                                        
                                         
     Yes, in compliance 
  

					
	 III.
	  	Consolidated Adjusted EBITDA (Section 6.9(c))	  	
		
	Required:         $_______	  	
		
	Actual:             $_______	  	
			
	 A.
	  	Consolidated Adjusted EBITDA for required fiscal quarters (pursuant to detailed calculation on Schedule 3)	  	$____        

 Is line A equal to or greater than $            ? 
               No, not in
compliance                                        
                                         
     Yes, in compliance 

					
			
	 IV.
	  	Fixed Charge Coverage Ratio (Section 6.9(d))	  	
		
	Required:        ____:1.00	  	
		
	 Actual:            ____:1.00
	  	
			
	 A.
	  	Consolidated Adjusted EBITDA (pursuant to detailed calculation on Schedule 3)	  	$____        
	 B.
	  	Capital expenditures ($__________) multiplied by 25%	  	$____        
	 C.
	  	Cash taxes	  	$____        
	 D.
	  	Current portion of Indebtedness (exclusive of Indebtedness under the Revolving Line and the face amount of Letters of Credit issued by Bank in excess of the Revolving Line)
($____________) multiplied by 50% at March 26, 2011 and by 75% at June 25, 2011	  	$____        
	 E.
	  	Accrued interest expense on all Consolidated Funded Debt as shown on Borrower’s income statement for such period	  	$____        
	 F.
	  	Line A less Line B less Line C	  	$____        
	 G.
	  	Line D plus Line E	  	$____        
	 H.
	  	Ratio of Line F to Line G	  	_____:1.0

 Is line H equal to or greater
than             :1.00? 
               No, not in
compliance                                        
                                         
     Yes, in compliance 

 Schedule 2 to Compliance Certificate 
 Calculation of Consolidated Funded Debt 

 Schedule 3 to Compliance Certificate 
 Calculation of Consolidated Adjusted EBITDAForm of 5.875% Senior Notes due 2020

 Exhibit 4.1 
 [THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO, UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO AXIS SPECIALTY FINANCE LLC OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.] 

					
	No. R-[    ]	  	CUSIP No. [        ]	  	
		  	ISIN No. [        ]	  	

 AXIS SPECIALTY FINANCE LLC 
 5.875% Senior Notes 
 Due June 1, 2020 
 Fully and unconditionally 
 guaranteed by 
 AXIS CAPITAL HOLDINGS LIMITED 
  

			
	Principal Amount:	  	$[            ]
		
	Regular Record Date:	  	with respect to each Interest Payment Date, the close of business on the preceding May 15 or November 15, as the case may be (whether or not a Business Day)
		
	Original Issue Date:	  	[                ]
		
	Stated Maturity:	  	June 1, 2020
		
	Interest Payment Dates:	  	June 1 and December 1 commencing [            ]
		
	Interest Rate:	  	5.875% per year
		
	Authorized Denomination:	  	$2,000 or any integral multiples of $1,000 in addition thereto

 AXIS Specialty Finance LLC, a limited liability company organized under the laws of Delaware (the “Issuer,” which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of [            ] DOLLARS on the Stated Maturity shown
above, and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on each Interest Payment Date as specified
above, commencing on [            ], and on the Stated Maturity at the rate per year shown above until the principal hereof is paid or made available for payment and on any overdue
principal and on any overdue installment of interest to the extent permitted by law. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or
a Redemption Date) will, as provided in the Indenture, be paid to the Person in whose name this Note is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any
interest payable at Stated Maturity or on a Redemption Date will be paid to the Person to whom principal is payable. Except as otherwise provided in the Indenture, any such interest that is not so punctually paid or duly provided for will forthwith
cease to be payable to the Holders on such Regular Record Date and may be paid as provided in Section 2.7 of the Indenture. 

 Payments of interest on this Note will include interest accrued to but excluding the
respective Interest Payment Dates. Interest payments for this Note shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months. In the event that any date on which interest is payable on this Note is not a Business
Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next
succeeding calendar year, payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. 
 Payment of the principal of and interest due at the Stated Maturity or a Redemption Date of this Note shall be made upon surrender of this
Note at the Corporate Trust Office of the Trustee. The principal of and interest on this Note shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Issuer, (i) by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person
entitled thereto. 
 The Senior Notes (as defined on the reverse hereof will be unsecured obligations of the Issuer and will
rank equally in right of payment with all other unsecured, senior indebtedness of the Issuer from time to time outstanding. The Senior Notes will rank senior to any subordinated indebtedness of the Issuer. 
 AXIS Capital Holdings Limited (the “Guarantor”) does hereby fully and unconditionally guarantee (the
“Guarantee”) to the Holders and to the Trustee all payment obligations of the Issuer on this Note when due, in accordance with the provisions of this Indenture, as provided below. The Guarantee shall rank equally in right of payment
with other unsecured, senior indebtedness of the Guarantor. The Guarantee will rank senior to any subordinated indebtedness of the Guarantor. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed. 

 

			
	 AXIS SPECIALTY FINANCE LLC,
 as Issuer

		
	By:	 	  

	Name:	 	
	Title:	 	

 CERTIFICATE OF AUTHENTICATION 
 This is one of the 5.875% Senior Notes due 2020 referred to in the within-mentioned Indenture. 
  

			
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
 as Trustee

		
	By:	 	  

		 	Authorized Signatory
		
	Dated:	 	

 (Reverse Side of Note) 
 This Note is one of a duly authorized issue of Senior Notes of the Issuer issued and issuable in one or more series under a Senior Indenture
dated as of March 23, 2010 (the “Indenture”), among the Issuer, the Guarantor and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee,” which term includes any successor trustee under
the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Guarantor, the Trustee and the
Holders of the Senior Notes issued thereunder and of the terms upon which said Senior Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof as 5.875% Senior Notes due 2020 (the
“Senior Notes”), initially limited in aggregate principal amount of $500,000,000; provided, however, that the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the holders of the
Senior Notes, on the same terms and with the same CUSIP and ISIN numbers as the Senior Notes. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 
 This Note is exchangeable in whole or from time to time in part for Senior Notes of this series in definitive registered form only as
provided herein and in the Indenture. If (i) at any time the Depositary notifies the Issuer that it is unwilling or unable to continue as Depositary for this Note, and the Issuer does not appoint a successor Depositary within 90 days after the
Issuer receives such notice or becomes aware of such condition, as the case may be, (ii) at any time, the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934 and the Issuer has not appointed a
successor depositary within 90 days after the Issuer learns that the Depositary has ceased to be so registered or (iii) the Issuer in its sole discretion determines that this Note shall be exchangeable for Senior Notes of this series in
definitive registered form and executes and delivers to the Security Registrar a written order of the Issuer providing that this Note shall be so exchangeable, this Note shall be exchangeable for Senior Notes of this series in definitive registered
form, provided that the definitive Senior Notes so issued in exchange for this Note shall be in denominations of $2,000 and whole multiples of $1,000 in excess of $2,000, without coupons, and be of like aggregate principal amount and tenor as the
portion of this Note to be exchanged. Except as provided above, owners of beneficial interests in this Note will not be entitled to have Senior Notes registered in their names, will not receive or be entitled to physical delivery of Senior Notes in
definitive registered form and will not be considered the holders thereof for any purpose under the Indenture. Neither the Issuer, the Guarantor, the Trustee, any Paying Agent nor the Security Registrar shall have any responsibility or liability for
any aspect of records relating to or payments made on account of beneficial ownership interests in this Note, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 
 If an Event of Default with respect to the Senior Notes shall occur and be continuing, the principal of the Senior Notes may become or may
be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof
and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Senior Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of not less than a majority in aggregate
principal amount of the Senior Notes at the time Outstanding. The Indenture also contains provisions permitting the holders of specified percentages in principal amount of the Senior Notes at the time Outstanding, on behalf of the holders of all
Senior Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon
such holder and upon all future Holders of this Note and of any Senior Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Issuer pursuant to
this Note and (b) restrictive covenants and the related Events of Default, upon compliance by the Issuer with certain conditions set forth therein, which provisions apply to this Note. 
 The Senior Notes will be redeemable, at the option of the Issuer, in whole or in part, at any time (a “Redemption Date”),
at a redemption price (the “Redemption Price”) equal to the greater of (i) 100% of the aggregate principal amount of the Senior Notes to be redeemed and (ii) an amount equal to the sum of the present values of the
remaining scheduled payments for principal and interest on the Senior Notes to be redeemed, not including any portion of the payments of interest accrued as of such Redemption Date, discounted to such Redemption Date on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 35 basis points; plus in each case, accrued and unpaid interest on the principal amount being redeemed to, but excluding, such Redemption Date. 
 “Treasury Rate” means (1) the yield, under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if maturity is within three months before or
after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month), or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be
calculated on the third Business Day preceding the Redemption Date. 

 “Comparable Treasury Issue” means the United States Treasury security
selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Senior Notes to be redeemed. 
 “Independent Investment Banker” means Barclays Capital Inc., Deutsche Bank Securities Inc., Wells Fargo Securities, LLC and their successors or, if none of such firms is willing or able
to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee after consultation with the Issuer. 
 “Comparable Treasury Price” means (1) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference
Treasury Dealer Quotations, or (2) if the trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Reference Treasury Dealer” means each of Barclays Capital Inc., Deutsche Bank Securities Inc., Wells Fargo Securities, LLC and their respective successors and one other primary U.S.
government securities dealer (each a “Primary Treasury Dealer”), as specified by the Issuer; provided, that (1) if any of the foregoing shall cease to be a Primary Treasury Dealer, the Issuer will substitute therefor another
Primary Treasury Dealer and (2) if the Issuer fails to select a substitute within a reasonable period of time, then the substitute will be a Primary Treasury Dealer selected by the Independent Investment Banker after consultation with the
Issuer. 
 “Reference Treasury Dealer Quotations” mean, with respect to the Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent
Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 Notice of any redemption will be mailed at least 30 days but no more than 60 days before the Redemption Date to each Holder of the Senior Notes to be redeemed. Notwithstanding Section 12.2 of the
Indenture, the notice of redemption with respect to the foregoing redemption need not set forth the Redemption Price but only the manner of calculation thereof. 
 The Issuer shall notify the Trustee of the Redemption Price with respect to the foregoing redemption promptly after the calculation thereof. The Trustee shall not be responsible for calculating said
Redemption Price. Unless the Issuer defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Senior Notes or portions thereof called for redemption. 
 If less than all of the Senior Notes are to be redeemed, the Trustee shall select, in such manner as it deems appropriate and fair, the
principal amount of such Senior Notes held by each beneficial owner of such Senior Notes to be redeemed. The

 
Trustee may select notes and portions of notes in amounts of $2,000 and whole multiples of $1,000 in excess of $2,000. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Registration surrender of this Note for registration of transfer
at the office or agency of the Issuer for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer or the Security Registrar and duly executed by, the Holder hereof or his/her attorney
duly authorized in writing, and thereupon one or more new Senior Notes, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be
made for any such exchange or registration of transfer, but the Issuer will require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee, any Person authorized by the Issuer to pay the
principal of or any premium or interest on any Securities on behalf of the Issuer (“Paying Agent”) and the Security Registrar of the Issuer or the Trustee may deem and treat the Person in whose name this Note is registered as the
absolute owner hereof for all purposes, whether or not this Note be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar, and neither the Issuer nor the Trustee nor any Paying Agent
nor the Security Registrar shall be affected by notice to the contrary. 
 The Senior Notes are issuable only in registered form
without coupons in denominations of $2,000 and whole multiples of $1,000 in excess of $2,000. As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of
Senior Notes of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Senior Note or Senior Notes to be exchanged at the office or agency of the Issuer. 
 No recourse shall be had for payment of the principal of or interest on this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator, as such or against any past, present or future shareholder, officer or director, as such, of the Issuer or of any successor, either directly or through the Issuer or any
successor, under any rule, law, statute or constitutional provision, or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released, by the acceptance hereof and
as part of the consideration for the issuance hereof. 

 Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 This
Note shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may be required by mandatory provisions of law. 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

  

							
	TEN COM – as tenants in common	 	UNIF GIFT MIN ACT – Custodian under Uniform Gift to Minors Act	 	
				
		 	  
	 		 	
		 	(State)	 		 	
	TEN ENT – as tenants by the entireties	 		 		 	
			
	JT TEN – as joint tenants with rights of	 	CUST — Custodian survivorship and not as tenants in common	 	

 Additional abbreviations may also be used 
 though not on the above list. 
 FOR VALUE RECEIVED, the undersigned hereby
sell(s) and transfer(s) unto 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE 

	
	
	 
	
	 
	
	 

 (please insert Social Security or other identifying number of assignee)

 the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

	
	
	 
	
	 
	
	 

 agent to transfer said Note on the books of the Issuer, with full power
of substitution in the premises. 
  

			
		
	Dated:	 	 
		
		 	 
		 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or
any change whatever.

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