Document:

Pledge Agreement

 Exhibit 10.29 
 PLEDGE AGREEMENT 
 PLEDGE AGREEMENT dated as of March 10, 2006, among SPYGLASS MERGER CORP., a Delaware
corporation (the “Borrower”) (to be merged with and into SERENA SOFTWARE, INC., a Delaware corporation (the “Company”)), each of the Subsidiaries of the Company listed on the signature pages hereto (each such entity
being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors and the Borrower are referred to collectively as the “Grantors”) and LEHMAN COMMERCIAL PAPER INC.,
as Collateral Agent (in such capacity, the “Collateral Agent”) under the Credit Agreement (as defined below) for the benefit of the Secured Parties (as defined below). 
 W I T N E S S E T H: 
 WHEREAS, the Borrower is a party to the Credit Agreement, dated as of March 10, 2006 (as amended, amended and restated, supplemented or otherwise modified, refinanced or replaced from time to time, the “Credit Agreement”),
among the Borrower, the Company, the lending institutions from time to time party thereto (each a “Lender” and collectively, the “Lenders”), LEHMAN COMMERCIAL PAPER INC., as Administrative Agent and as Collateral
Agent, LEHMAN BROTHERS INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and UBS SECURITIES LLC, as Joint Lead Arrangers and Joint Lead Bookrunners, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Syndication Agent and UBS
SECURITIES LLC, as Documentation Agent; 
 WHEREAS, (a) pursuant to the Credit Agreement, among other things, the Lenders have severally
agreed to make Loans to the Borrower and the Letter of Credit Issuer has agreed to issue Letters of Credit for the account of the Borrower (collectively, the “Extensions of Credit”) upon the terms and subject to the conditions set
forth therein and (b) one or more Lenders or affiliates of Lenders may from time to time enter into Hedge Agreements; 
 WHEREAS,
pursuant to the Guarantee (the “Guarantee”) dated as of the date hereof, each Pledgor has unconditionally and irrevocably guaranteed, as primary obligor and not merely as surety, to the Secured Parties, the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations (as defined below); 
 WHEREAS, each Pledgor is a U.S. Subsidiary; 
 WHEREAS, the proceeds of the Extensions of Credit will be used in part to enable the
Borrower to make valuable transfers to the Subsidiary Pledgors in connection with the operation of their respective businesses; 
 WHEREAS,
each Pledgor acknowledges that it will derive substantial direct and indirect benefit from the making of the Extensions of Credit; 
 WHEREAS, it is a condition precedent to the obligation of the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrower under the Credit Agreement that the Borrower and the Subsidiary Pledgors
shall have executed and delivered this Pledge Agreement to the Collateral Agent for the ratable benefit of the Secured Parties; and 

 WHEREAS, (a) the Borrower and the Subsidiary Pledgors are the legal and beneficial owners of the
Equity Interests, as described under Schedule 1 hereto and issued by the entities named therein (the pledged Equity Interests are, together with any Equity Interests obtained in the future of the issuer of such Pledged Shares (the
“After-acquired Shares”), referred to collectively herein as the “Pledged Shares”) and (b) each of the Pledgors is the legal and beneficial owner of the Indebtedness (the “Pledged Debt”), as
described under Schedule 1 hereto and issued by the entities named therein, in each case as such schedule may be amended pursuant to Section 9.12 of the Credit Agreement; 
 NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent, the Collateral Agent, the Syndication Agent, the Documentation
Agent, the Lenders and the Letter of Credit Issuer to enter into the Credit Agreement and to induce the respective Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrower under the Credit Agreement and
to induce one or more Lenders or affiliates of Lenders to enter into Hedge Agreements, the Pledgors hereby agree with the Collateral Agent, for the benefit of the Secured Parties, as follows: 
 1. Defined Terms. 
 (a)
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
 (b) “Proceeds” and any other term used herein or in the Credit Agreement without definition that is defined in the UCC has the meaning given to it in the UCC. 
 (c) As used herein, the term “Equity Interests” shall mean, collectively, Stock and Stock Equivalents. 
 (d) As used herein, the term “Obligations” shall mean the collective reference to (i) the due and punctual payment
of (x) the principal of and premium, if any, and interest at the applicable rate provided in the Credit Agreement (including interest at the contract rate applicable upon default accrued or accruing after the commencement of any proceeding,
under the Bankruptcy Code or any applicable provision of comparable state or foreign law, whether or not such interest is an allowed claim in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise, (y) each payment required to be made by the Borrower under the Credit Agreement or any other Credit Documents in respect of any Letter of Credit, when and as due, including payments in respect of
reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (z) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any proceeding under the Bankruptcy Code or any applicable provision of comparable state or foreign law, whether or not such interest is an allowed claim in such proceeding),
of the Borrower or any other Credit Party to any of the Secured Parties under the Credit Agreement and any other Credit Documents, (ii) the due and punctual performance of all covenants, agreements, obligations and liabilities of the Borrower
under or pursuant to the Credit Agreement and the other Credit Documents, (iii) the due and punctual payment and performance of all the covenants, agreements, obligations and liabilities of each other Credit Party under or pursuant to this
Pledge Agreement or the other Credit Documents, (iv) the due and punctual payment and performance of all obligations of each Credit Party under each Hedge Agreement that (x) is in effect on the Closing Date with a counterparty that is a
Lender or an affiliate of a Lender as of the Closing Date or (y) is entered into after the Closing Date with any counterparty that is a Lender or an affiliate of a Lender at the time such Hedge Agreement is entered into and (v) the due and
punctual payment and performance of all obligations in respect of overdrafts and related liabilities owed to the Administrative Agent or its affiliates arising from or in connection with (a) treasury, depositary, cash management services or
(b) automated clearinghouse transfer of funds. 
  

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 (e) As used herein, the term “Secured Parties” shall mean, collectively,
(i) the Lenders, (ii) the Administrative Agent, (iii) the Collateral Agent, (iv) the Letter of Credit Issuer, (v) the Swingline Lender, (vi) the Syndication Agent, (vii) the Documentation Agent, (viii) each
counterparty to a Hedge Agreement the obligations under which constitute Obligations, (ix) the beneficiaries of each indemnification obligation undertaken by any Credit Party under the Credit Agreement or any document executed pursuant thereto
and (x) any successors, indorsees, transferees and assigns of each of the foregoing. 
 (f) As used herein, the term
“UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that, in the event that, by reason of mandatory provisions of law, any of the attachment,
perfection or priority of the Collateral Agent’s and the Secured Parties’ security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term
“UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such
provisions 
 (g) As used herein, the term “U.S. Subsidiary” shall mean each Subsidiary of the Borrower that
is organized under the laws of the United States, any state or territory thereof, or the District of Columbia. 
 (h)
References to “Lenders” in this Pledge Agreement shall be deemed to include affiliates of Lenders that may from time to time enter into Hedge Agreements. 
 (i) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Pledge
Agreement shall refer to this Pledge Agreement as a whole and not to any particular provision of this Pledge Agreement, and Section references are to Sections of this Pledge Agreement unless otherwise specified. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. 
 (j) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
 2.
Grant of Security. Each Pledgor hereby transfers, assigns and pledges to the Collateral Agent, for the ratable benefit of the Secured Parties, and grants to the Collateral Agent, for the benefit of the Secured Parties, a lien on and a
security interest in (“Security Interest”) all of such Pledgor’s right, title and interest in, to and under the following, whether now owned or existing or at any time hereafter acquired or existing (collectively, the
“Collateral”): 
 (a) the Pledged Shares held by such Pledgor and the certificates representing such Pledged
Shares and any interest of such Pledgor in the entries on the books of the issuer of the Pledged Shares or any financial intermediary pertaining to the Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares. 
 (b) the Pledged Debt and the instruments evidencing the Pledged Debt owed to such Pledgor, and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such Pledged Debt; and 
  

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 (c) to the extent not covered by clauses (a) and (b) above, respectively, all
proceeds of any or all of the foregoing Collateral. For purposes of this Pledge Agreement, the term “proceeds” includes whatever is receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise disposed of,
whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity or guarantee payable to any Pledgor or the Collateral Agent from time to time with respect to any of the Collateral. 
 3. Security for Obligations. This Pledge Agreement secures the payment of all Obligations of each Credit Party. Without limiting the generality of
the foregoing, this Pledge Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by any of the Credit Parties to Secured Parties under the Credit Documents but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any Credit Party. 
 4. Delivery of
the Collateral. All certificates or instruments, if any, representing or evidencing the Collateral shall be promptly delivered to and held by or on behalf of the Collateral Agent pursuant hereto and shall be in suitable form for transfer by
delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent. The Collateral Agent shall have the right, at any time after the occurrence
and during the continuance of an Event of Default and with notice to the relevant Pledgor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Shares. Each delivery of Collateral
(including any After-acquired Shares) shall be accompanied by a schedule describing the securities theretofore and then being pledged hereunder, which shall be attached hereto as Schedule 1 and made a part hereof, provided that the
failure to attach any such schedule hereto shall not affect the validity of such pledge of such securities. Each schedule so delivered shall supersede any prior schedules so delivered. 
 5. Representations and Warranties. Each Pledgor represents and warrants as follows: 
 (a) Schedule 1 hereto (i) correctly represents as of the Closing Date (A) the issuer, the certificate number, the Pledgor
and the record and beneficial owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and holder, date of
and maturity date of all Pledged Debt and (ii) together with the comparable schedule to each supplement hereto, includes all Equity Interests, debt securities and promissory notes required to be pledged hereunder. Except as set forth on
Schedule 1, the Pledged Shares represent all (or 65 percent, in the case of any issuer that is not a U.S. Subsidiary) of the issued and outstanding Equity Interests of each class of Equity Interests in the issuer on the Closing Date.

 (b) Such Pledgor is the legal and beneficial owner of the Collateral pledged or assigned by such Pledgor hereunder free and
clear of any Lien, except for the Lien created by this Pledge Agreement. 
 (c) As of the Closing Date, the Pledged Shares
pledged by such Pledgor hereunder have been duly authorized and validly issued and, in the case of Pledged Shares issued by a corporation, are fully paid and non-assessable. 
  

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 (d) The execution and delivery by such Pledgor of this Pledge Agreement and the pledge of
the Collateral pledged by such Pledgor hereunder pursuant hereto create a legal, valid and enforceable security interest in such Collateral and, upon delivery of such Collateral to the Collateral Agent, shall constitute a fully perfected Lien on and
security interest in the Collateral, securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws
affecting creditors’ rights generally and subject to general principles of equity. 
 (e) Such Pledgor has full power,
authority and legal right to pledge all the Collateral pledged by such Pledgor pursuant to this Pledge Agreement and this Pledge Agreement constitutes a legal, valid and binding obligation of each Pledgor, enforceable in accordance with its terms,
except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity. 
 6. Certification of Limited Liability Company, Limited Partnership Interests and Pledged Debt. 
 (a) The Equity Interests in any U.S. Subsidiary that is organized as a limited liability company or limited partnership and pledged hereunder are
represented by a certificate and in the organizational documents of such U.S. Subsidiary, the applicable Pledgor shall cause the issuer of such interests to elect to treat such interests as a “security” within the meaning of Article 8 of
the UCC of its jurisdiction of organization or formation, as applicable, by including in its organizational documents language substantially similar to the following and, accordingly, such interests shall be governed by Article 8 of the UCC:

 “The Partnership/Company hereby irrevocably elects that all membership interests in the Partnership/Company shall be securities
governed by Article 8 of the Uniform Commercial Code of [jurisdiction of organization or formation, as applicable]. Each certificate evidencing partnership/membership interests in the Partnership/Company shall bear the following legend: “This
certificate evidences an interest in [name of Partnership/LLC] and shall be a security for purposes of Article 8 of the Uniform Commercial Code.” No change to this provision shall be effective until all outstanding certificates have been
surrendered for cancellation and any new certificates thereafter issued shall not bear the foregoing legend.” 
 (b) Each Pledgor will
cause any Indebtedness for borrowed money in an aggregate principal amount exceeding $2,500,000 owed to such Pledgor and required to be pledged hereunder pursuant to Section 9.12 of the Credit Agreement to be evidenced by a duly executed
promissory note that is pledged and delivered to the Collateral Agent pursuant to the terms hereof. 
 7. Further Assurances. Each
Pledgor agrees that at any time and from time to time, at the expense of such Pledgor, it will execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and
recording of financing statements, fixture filings, mortgages, deeds of trust and other documents), which may be required under any applicable law, or which the Collateral Agent or the Required Lenders may reasonably request, in order (x) to
perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby (including the priority thereof) or (y) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with
respect to any Collateral. 
  

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 8. Voting Rights; Dividends and Distributions; Etc. 
 (a) So long as no Event of Default shall have occurred and be continuing: 
 (i) Each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part
thereof for any purpose not prohibited by the terms of this Pledge Agreement or the other Credit Documents. 
 (ii) The
Collateral Agent shall execute and deliver (or cause to be executed and delivered) to each Pledgor all such proxies and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and
other rights that it is entitled to exercise pursuant to paragraph (i) above. 
 (b) Subject to paragraph (c) below, each Pledgor
shall be entitled to receive and retain and use, free and clear of the Lien of this Pledge Agreement, any and all dividends, distributions, principal and interest made or paid in respect of the Collateral to the extent permitted by the Credit
Agreement, as applicable; provided, however, that any and all noncash dividends, interest, principal or other distributions that would constitute Pledged Shares or Pledged Debt, whether resulting from a subdivision, combination or
reclassification of the outstanding Equity Interests of the issuer of any Pledged Shares or received in exchange for Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any merger, consolidation,
acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be, and shall be forthwith delivered to the Collateral Agent to hold as, Collateral and shall, if received by such Pledgor, be received in trust for the
benefit of the Collateral Agent, be segregated from the other property or funds of such Pledgor and be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary indorsement). 
 (c) Upon written notice to a Pledgor by the Collateral Agent following the occurrence and during the continuance of an Event of Default, 
 (i) all rights of such Pledgor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be
entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other
consensual rights during the continuance of such Event of Default, provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to time following the occurrence and during the
continuance of an Event of Default to permit the Pledgors to exercise such rights. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, each Pledgor will have the
right to exercise the voting and consensual rights that such Pledgor would otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and the obligations of the Collateral Agent under Section 8(a)(ii) shall be reinstated);

 (ii) all rights of such Pledgor to receive the dividends, distributions and principal and interest payments that such
Pledgor would otherwise be authorized to receive and retain pursuant to Section 8(b) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to receive and hold as
Collateral such dividends, distributions and principal and interest payments during the continuance of such Event of Default. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate
to that effect, the Collateral Agent shall repay to each Pledgor (without interest) all dividends, distributions and principal and interest payments that such Pledgor would otherwise be permitted to receive, retain and use pursuant to the terms of
Section 8(b); 
  

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 (iii) all dividends, distributions and principal and interest payments that are received
by such Pledgor contrary to the provisions of Section 8(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds of such Pledgor and shall forthwith be delivered to the Collateral
Agent as Collateral in the same form as so received (with any necessary indorsements); and 
 (iv) in order to permit the
Collateral Agent to receive all dividends, distributions and principal and interest payments to which it may be entitled under Section 8(b) above, to exercise the voting and other consensual rights that it may be entitled to exercise pursuant
to Section 8(c)(i) above, and to receive all dividends, distributions and principal and interest payments that it may be entitled to under Sections 8(c)(ii) and (c)(iii) above, such Pledgor shall, if necessary, upon written notice from the
Collateral Agent, from time to time execute and deliver to the Collateral Agent, appropriate proxies, dividend payment orders and other instruments as the Collateral Agent may reasonably request. 
 9. Transfers and Other Liens; Additional Collateral; Etc. Each Pledgor shall: 
 (a) not (i) except as permitted by the Credit Agreement sell or otherwise dispose of, or grant any option or warrant with respect to,
any of the Collateral or (ii) create or suffer to exist any consensual Lien upon or with respect to any of the Collateral, except for the Lien under this Pledge Agreement, provided that in the event such Pledgor sells or otherwise
disposes of assets permitted by the Credit Agreement, and such assets are or include any of the Collateral, the Collateral Agent shall release such Collateral to such Pledgor free and clear of the Lien under this Pledge Agreement concurrently with
the consummation of such sale; 
 (b) pledge and, if applicable, cause each U.S. Subsidiary to pledge, to the Collateral Agent
for the ratable benefit of the Secured Parties, immediately upon acquisition thereof, all the Equity Interests and all evidence of Indebtedness held or received by such Pledgor or U.S. Subsidiary required to be pledged hereunder pursuant to
Section 9.12 of the Credit Agreement, in each case pursuant to a supplement to this Pledge Agreement substantially in the form of Annex A hereto (it being understood that the execution and delivery of such a supplement shall not require
the consent of any Pledgor hereunder and that the rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Pledgor as a party to this Pledge Agreement); and 

(c) defend its and the Collateral Agent’s title and interest to and in all the Collateral (and in the Proceeds thereof) against
any and all Liens (other than the Lien of this Pledge Agreement), however arising, and against any and all Persons whomsoever. 
 10.
Collateral Agent Appointed Attorney-in-Fact. Each Pledgor hereby appoints, which appointment is irrevocable and coupled with an interest, the Collateral Agent as such Pledgor’s attorney-in-fact, with full authority in the place and stead
of such Pledgor and in the name of such Pledgor or otherwise, to take any action and to execute any instrument, in each case after the occurrence and during the continuance of an Event of Default, that the Collateral Agent may deem reasonably
necessary or advisable to accomplish the purposes of this Pledge Agreement, including to receive, indorse and collect all instruments made payable to such Pledgor representing any dividend, distribution or principal or interest payment in respect of
the Collateral or any part thereof and to give full discharge for the same. 
 11. The Collateral Agent’s Duties. The powers
conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting

  

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 for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to
ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Shares, whether or not the Collateral Agent or any other Secured Party has or is deemed to have knowledge of
such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation
of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property. 
 12. Remedies. If any Event of Default shall have occurred and be continuing: 
 (a) The
Collateral Agent may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC or any other
applicable law and also may without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any
Lender or elsewhere for cash or on credit or for future delivery at such price or prices and upon such other terms as are commercially reasonable irrespective of the impact of any such sales on the market price of the Collateral. The Collateral
Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are purchasing the Collateral for their own account for
investment and not with a view to the distribution or sale thereof, and, upon consummation of any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.
Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal that it
now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. The Collateral Agent and any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon
any such private sale, to purchase the whole or any part of the Collateral so sold, and the Collateral Agent or such Secured Party may pay the purchase price by crediting the amount thereof against the Obligations. Each Pledgor agrees that, to the
extent notice of sale shall be required by law, at least ten days’ notice to such Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral
Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such
sale may, without further notice, be made at the time and place to which it was so adjourned. To the extent permitted by law, each Pledgor hereby waives any claim against the Collateral Agent arising by reason of the fact that the price at which any
Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree.

 (b) The Collateral Agent shall apply the proceeds of any collection or sale of the Collateral at any time after receipt as
follows: 
 (i) first, to the payment of all reasonable and documented costs and expenses incurred by the Collateral Agent in
connection with such collection or sale or otherwise in connection with this Pledge Agreement, the other Credit Documents or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the
repayment of all advances made by the Collateral Agent hereunder or under any other Credit Document on 
  

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 behalf of any Pledgor and any other reasonable and documented costs or expenses incurred in connection
with the exercise of any right or remedy hereunder or under any other Credit Document; 
 (ii) second, to the Secured Parties,
an amount equal to all Obligations owing to them on the date of any such distribution, and, if such moneys shall be insufficient to pay such amounts in full, then ratably (without priority of any one over any other) to such Secured Parties in
proportion to the unpaid amounts thereof; and 
 (iii) third, any surplus then remaining shall be paid to the Pledgors or
their successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct. 
 Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable
in any way for the misapplication thereof. 
 (c) Each Pledgor shall remain liable for any deficiency if the proceeds of any
sale or other disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Collateral Agent to collect such deficiency. 
 (d) The Collateral Agent may exercise any and all rights and remedies of each Pledgor in respect of the Collateral. 
 (e) All payments received by any Pledgor after the occurrence and during the continuance of an Event of Default in respect of the
Collateral shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Collateral Agent as Collateral in the same form as so received
(with any necessary indorsement). 
 13. Amendments, etc. with Respect to the Obligations; Waiver of Rights. Each Pledgor shall remain
obligated hereunder notwithstanding that, without any reservation of rights against any Pledgor and without notice to or further assent by any Pledgor, (a) any demand for payment of any of the Obligations made by the Collateral Agent or any
other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset
with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Secured Party, (c) the Credit Agreement,
the other Credit Documents, the Letters of Credit and any other documents executed and delivered in connection therewith and the Hedge Agreements and any other documents executed and delivered in connection therewith and any documents entered into
with the Administrative Agent or the Collateral Agent or any of their respective affiliates in connection with treasury, depositary or cash management services or in connection with any automated clearinghouse transfer of funds may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders, as the case may be, or, in the case of any Hedge Agreement or documents entered into with the Administrative Agent or any of its
affiliates in connection with treasury, depositary or cash management services or in connection with any automated clearinghouse transfer of funds, the party thereto) may deem advisable from time to time, and (d) any collateral security,
guarantee or right of offset at any time held 
  

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 by the Collateral Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Collateral Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Pledge Agreement or any
property subject thereto. When making any demand hereunder against any Pledgor, the Collateral Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on the Borrower or any Pledgor or any other person, and
any failure by the Collateral Agent or any other Secured Party to make any such demand or to collect any payments from the Borrower or any Pledgor or any other person or any release of the Borrower or any Pledgor or any other person shall not
relieve any Pledgor in respect of which a demand or collection is not made or any Pledgor not so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter
of law, of the Collateral Agent or any other Secured Party against any Pledgor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
 14. Continuing Security Interest; Assignments Under the Credit Agreement; Release. 
 (a) This Pledge Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Pledgor and the
successors and assigns thereof, and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors, indorsees, transferees and assigns until all the Obligations (other than any contingent indemnity
obligations not then due) under the Credit Documents shall have been satisfied by payment in full, the Commitments shall be terminated and no Letters of Credit shall be outstanding, notwithstanding that from time to time during the term of the
Credit Agreement and any Hedge Agreement the Credit Parties may be free from any Obligations. 
 (b) A Subsidiary Pledgor shall automatically
be released from its obligations hereunder and the pledge of such Subsidiary Pledgor shall be automatically released upon the consummation of any transaction permitted under the Credit Agreement, as a result of which such Subsidiary Pledgor ceases
to be a Subsidiary Guarantor. 
 (c) Upon any sale or other transfer by any Pledgor of any Collateral that is permitted under the Credit
Agreement or upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 13.1 of the Credit Agreement, the obligations of such Pledgor with respect to such
Collateral shall be automatically released and such Collateral sold free and clear of the Lien and Security Interests created hereby. 
 (d)
In connection with any termination or release pursuant to the foregoing paragraph (a), (b) or (c), the Collateral Agent shall execute and deliver to any Pledgor, at such Pledgor’s expense, all documents that such Pledgor shall reasonably
request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 14 shall be without recourse to or warranty by the Collateral Agent. 
 15. Reinstatement. Each Pledgor further agrees that, if any payment made by any Credit Party or other Person and applied to the Obligations is at
any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of Collateral are required to be returned by any Secured Party to such Credit
Party, its estate, trustee, receiver or any other party, including any Pledgor, under any bankruptcy law, state, federal or foreign law, common law or equitable cause, then, to the extent of such payment or repayment, any Lien or other Collateral
securing such liability shall be and remain in full force and effect, as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or other Collateral securing such liability hereunder shall have been released or
terminated by virtue of such cancellation or 
  

 -10- 

 surrender), such Lien or other Collateral shall be reinstated in full force and effect, and such prior cancellation or
surrender shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral securing the obligations of any Pledgor in respect of the amount of such payment. 
 16. Notices. All notices, requests and demands pursuant hereto shall be made in accordance with Section 13.2 of the Credit Agreement. All
communications and notices hereunder to any Pledgor shall be given to it in care of the Borrower at the Borrower’s address set forth in Section 13.2 of the Credit Agreement. 
 17. Counterparts. This Pledge Agreement may be executed by one or more of the parties to this Pledge Agreement on any number of separate
counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Pledge Agreement signed by all the parties
shall be lodged with the Collateral Agent and the Borrower. 
 18. Severability. Any provision of this Pledge Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 19.
Integration. This Pledge Agreement together with the other Credit Documents represents the agreement of each of the Pledgors with respect to the subject matter hereof and there are no promises, undertakings, representations or warranties by
the Collateral Agent or any other Secured Party relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents. 
 20. Amendments in Writing; No Waiver; Cumulative Remedies. 
 (a) None of the terms or provisions of
this Pledge Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the affected Pledgor and the Administrative Agent in accordance with Section 13.1 of the Credit Agreement. 

(b) Neither the Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 20(a) hereof), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in
exercising, on the part of the Collateral Agent or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or
remedy that the Collateral Agent or such other Secured Party would otherwise have on any future occasion. 
 (c) The rights, remedies, powers
and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 
  

 -11- 

 21. Section Headings. The Section headings used in this Pledge Agreement are for convenience of
reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 
 22.
Successors and Assigns. The provisions of this Pledge Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Pledgor may assign, transfer or
delegate any of its rights or obligations under this Pledge Agreement without the prior written consent of the Collateral Agent except pursuant to a transaction permitted by the Credit Agreement. 
 23. WAIVER OF JURY TRIAL. EACH PLEDGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS PLEDGE AGREEMENT, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 
 24. Submission to Jurisdiction;
Waivers. Each of the Pledgors hereby irrevocably and unconditionally: 
 (a) submits for itself and its property in any
legal action or proceeding relating to this Pledge Agreement and the other Credit Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
 (c) agrees that
service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Pledgor at its address referred to in Section 16
or at such other address of which the Collateral Agent shall have been notified pursuant thereto; 
 (d) agrees that nothing
herein shall affect the right of the Collateral Agent or any other Secured Party to effect service of process in any other manner permitted by law or shall limit the right of the Collateral Agent or any other Secured Party to sue in any other
jurisdiction; and 
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any
legal action or proceeding referred to in this Section 24 any special, exemplary, punitive or consequential damages. 
 25.
Acknowledgements. Each Pledgor hereby acknowledges that: 
 (a) it has been advised by counsel in the negotiation,
execution and delivery of this Pledge Agreement and the other Credit Documents to which it is a party; 
 (b) neither the
Collateral Agent nor any other Secured Party has any fiduciary relationship with or duty (except as provided in Section 11 hereof) to any Pledgor arising out of or in connection with this Pledge Agreement or any of the other Credit Documents,
and the relationship 
  

 -12- 

 between the Pledgors, on the one hand, and the Collateral Agent and the other Secured Parties, on the
other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
 (c) no joint venture is created
hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders and any other Secured Party or among the Pledgors and the Lenders and any other Secured Party. 
 26. GOVERNING LAW. THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 [Signature Pages Follow] 
  

 -13- 

 IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly executed and
delivered as of the date first above written. 
  

			
	 SPYGLASS MERGER CORP., as Pledgor

		
	 By:
	 	 /s/    ALAN AUSTIN

	 Name:
	 	Alan Austin
	 Title:
	 	Vice President
	
	The undersigned hereby acknowledges and agrees that, upon the effectiveness of the Merger (as defined in the Credit Agreement), it will succeed to all of the rights and obligations
of the Borrower set forth herein and that all references herein to the Borrower shall thereupon deemed to be references to the undersigned.
	
	 SERENA SOFTWARE, INC.

		
	By:	 	 /s/    ROBERT I. PENDER, JR.

	Name:	 	Robert I. Pender, Jr.
	Title:	 	 Senior Vice President, Finance and Administration
 Chief Financial Officer, Assistant Secretary

	
	LEHMAN BROTHER COMMERCIAL PAPER INC.
	 as Collateral Agent

		
	 By:
	 	 /s/    LAURIE PERPER

	Name:	 	Laurie Perper
	Title:	 	Senior Vice President

 [Signature Page to Pledge Agreement] 

 SCHEDULE 1 
 TO THE PLEDGE AGREEMENT 
 Pledged Shares 
  

												
	 Pledgor
	 	 Issuer
	  	 Class of Stock
	  	 Stock Certificate No(s)
	  	No. of
Shares	  	Percentage
of Issued
and
Outstanding
Shares	 
	 Serena Software, Inc.
	 	Serena Holdings	  	Ordinary	  	no number	  	62,480,198	  	65	%
	 Serena Software, Inc.
	 	Serena Software GmbH	  	n/a	  	not certificated	  	1	  	65	%
	 Serena Software, Inc.
	 	Serena Software France SARL	  	n/a	  	not certificated	  	500	  	65	%
	 Serena Software, Inc.
	 	Serena Software Nordic AB	  	 Position 1
 (500 shares) Position 2 (500 shares)
	  	not certificated	  	1000	  	65	%
	 Serena Software, Inc.
	 	Serena Software Benelux BVBA	  	n/a	  	not certificated	  	743	  	65	%
	 Serena Software, Inc.
	 	Serena Software Canada Limited	  	Common shares	  	3	  	1,000	  	65	%

 Pledged Debt 
 None 

 ANNEX A 
 TO THE PLEDGE AGREEMENT 
 SUPPLEMENT NO. [    ] dated as of
[            ] to the PLEDGE AGREEMENT dated as of March 10, 2006, among SERENA SOFTWARE, INC., a Delaware corporation, the “Borrower”), each of the Subsidiaries of
the Borrower listed on the signature pages thereto (each such Subsidiary being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors and the Borrower are referred to
collectively as the “Pledgors”) and LEHMAN COMMERCIAL PAPER INC., as Collateral Agent (in such capacity, the “Collateral Agent”) under the Credit Agreement referred to below. 
 A. Reference is made to [(a)] the Credit Agreement, dated as of March 10, 2006 (as amended, amended and restated, supplemented or otherwise modified,
refinanced or replaced from time to time, the “Credit Agreement”), among SPYGLASS MERGER CORP., a Delaware Corporation (which merged on the date thereof with and into the Borrower), the Borrower, the lending institutions from time
to time party thereto (each a “Lender” and collectively, the “Lenders”), LEHMAN COMMERCIAL PAPER INC., as Administrative Agent and as Collateral Agent, LEHMAN BROTHERS INC., MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED and UBS SECURITIES LLC, as Joint Lead Arrangers and Joint Lead Bookrunners, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Syndication Agent and UBS SECURITIES LLC, as Documentation Agent [and (b) the Guarantee dated as of [
], (as the same may be amended, restated, supplemented and or otherwise modified from time to time, the “Guarantee”), among the Guarantors party thereto and the Collateral Agent].1 
 B. Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the Pledge Agreement. 
 C. The Pledgors have entered into the
Pledge Agreement in order to induce the Administrative Agent, the Collateral Agent, the Syndication Agent, the Documentation Agents the Lenders and the Letter of Credit Issuer to enter into the Credit Agreement and to induce the respective Lenders
and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrower under the Credit Agreement and to induce one or more Lenders or affiliates of Lenders to enter into Hedge Agreements. 
 D. The undersigned [Pledgors][Subsidiary Guarantors] (each an “Additional Pledgor”) are (a) the legal and beneficial owners of the
Equity Interests described under Schedule 1 hereto and issued by the entities named therein (such pledged Equity Interests, together with any Equity Interests obtained in the future of the issuer of such Pledged Shares (the
“After-acquired Additional Pledged Shares”), referred to collectively herein as the “Additional Pledged Shares”) and (b) the legal and beneficial owners of the Indebtedness (the “Additional Pledged
Debt”) described under Schedule 1 hereto. 
 E. Section 9.12 of the Credit Agreement and Section 9(b) of the Pledge
Agreement provide that additional Subsidiaries may become Subsidiary Pledgors under the Pledge Agreement by 
  

	1	There are no Guarantors as of the Closing Date; include to the extent Guarantees have been provided pursuant to the Credit Agreement. 

 execution and delivery of an instrument in the form of this Supplement. Each undersigned Additional Pledgor is executing
this Supplement in accordance with the requirements of Section 9(b) of the Pledge Agreement to pledge to the Collateral Agent for the ratable benefit of the Secured Parties the Additional Pledged Shares and the Additional Pledged Debt [and to
become a Subsidiary Pledgor under the Pledge Agreement] in order to induce the Lenders and the Letter of Credit Issuer to make additional Extensions of Credit and as consideration for Extensions of Credit previously made. 
 Accordingly, the Collateral Agent and each undersigned Additional Pledgor agree as follows: 
 SECTION 1. In accordance with Section 9(b) of the Pledge Agreement, each Additional Pledgor by its signature hereby transfers, assigns and pledges to
the Collateral Agent, for the ratable benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in all of such Additional Pledgor’s right, title and interest
in the following, whether now owned or existing or hereafter acquired or existing (collectively, the “Additional Collateral”): 
 (a) the Additional Pledged Shares held by such Additional Pledgor and the certificates representing such Additional Pledged Shares and any interest of such Additional Pledgor in the entries on the books of the issuer
of the Additional Pledged Shares or any financial intermediary pertaining to the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Additional Pledged Shares; 
 (b) the Additional Pledged Debt
and the instruments evidencing the Additional Pledged Debt owed to such Additional Pledgor, and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such Additional Pledged Debt; and 
 (c) to the extent not covered by clauses (a) and
(b) above, respectively, all proceeds of any or all of the foregoing Additional Collateral. For purposes of this Supplement, the term “proceeds” includes whatever is receivable or received when Additional Collateral or proceeds are
sold, exchanged, collected or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity or guarantee payable to any Additional Pledgor or the Collateral Agent from time to time with respect
to any of the Additional Collateral. 
 For purposes of the Pledge Agreement, (x) the Collateral shall be deemed to include the
Additional Collateral and (y) the After-acquired Pledged Shares shall be deemed to include the Additional After-acquired Pledged Shares. 
 [SECTION 2. Each Additional Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a Pledgor and each Additional Pledgor hereby agrees to all the terms
and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder. Each reference to a “Subsidiary Pledgor” or a “Pledgor” in the Pledge Agreement shall be deemed to include each Additional Pledgor. The Pledge
Agreement is hereby incorporated herein by reference.]2 
  

 -2- 

 SECTION [2][3]. Each Additional Pledgor represents and warrants as follows: 
 (a) Schedule 1 hereto (i) correctly represents as of the date hereof (A) the issuer, the certificate number, the Pledgor
and registered owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Additional Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and holder, date of and
maturity date of all Additional Pledged Debt and (ii) together with Schedule 1 to the Pledge Agreement and the comparable schedules to each other Supplement to the Pledge Agreement, includes all Equity Interests, debt securities and
promissory notes required to be pledged hereunder. Except as set forth on Schedule 1 hereto, the Pledged Shares represent all of the issued and outstanding Equity Interests of each class of Equity Interests of the issuer on the date hereof.

 (b) Such Additional Pledgor is the legal and beneficial owner of the Additional Collateral pledged or assigned by such
Additional Pledgor hereunder free and clear of any Lien, except for the Lien created by this Supplement to the Pledge Agreement. 
 (c) As of the date of this Supplement, the Additional Pledged Shares pledged by such Additional Pledgor hereunder have been duly authorized and validly issued and, in the case of Additional Pledged Shares issued by a corporation, are fully
paid and non-assessable. 
 (d) The execution and delivery by such Additional Pledgor of this Supplement and the pledge of the
Additional Collateral pledged by such Additional Pledgor hereunder pursuant hereto create a valid and perfected first-priority security interest in the Additional Collateral, securing the payment of the Obligations, in favor of the Collateral Agent
for the ratable benefit of the Secured Parties. 
 (e) Such Additional Pledgor has full power, authority and legal right to
pledge all the Additional Collateral pledged by such Additional Pledgor pursuant to this Supplement and this Supplement constitutes a legal, valid and binding obligation of each Additional Pledgor, enforceable in accordance with its terms, except as
enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity. 
 SECTION [3][4]. This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts (including by
facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Supplement signed by all the parties shall be lodged with the Collateral
Agent and the Borrower. This Supplement shall become effective as to each Additional Pledgor when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of such Additional Pledgor and
the Collateral Agent. 
  

	2	Include only for Additional Pledgors that are not already signatories to the Pledge Agreement. 

  

 -3- 

 SECTION [4][5]. Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force
and effect. 
 SECTION [5][6]. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION [6][7]. Any provision of this Supplement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and in the Pledge Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 SECTION [7][8]. All notices, requests and demands pursuant hereto shall be made in accordance with Section 16 of the Pledge Agreement. All communications and notices hereunder to each Additional Pledgor shall be
given to it in care of the Borrower at the Borrower’s address set forth in Section 13.2 of the Credit Agreement. 
 SECTION [8][9].
Each Additional Pledgor agrees to reimburse the Collateral Agent for its respective reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral
Agent. 
  

 -4- 

 IN WITNESS WHEREOF, each Additional Pledgor and the Collateral Agent have duly executed this Supplement
to the Pledge Agreement as of the day and year first above written. 
  

			
	[NAME OF ADDITIONAL PLEDGOR]
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	LEHMAN COMMERCIAL PAPER INC., AS COLLATERAL AGENT
		
	By:	 	  

	Name:	 	
	Title:	 	

 SCHEDULE 1 
 TO SUPPLEMENT NO. [    ] 
 TO THE PLEDGE AGREEMENT 
 Pledged Shares 
  

											
	 Pledgor
	  	Issuer	  	Class of
Stock	  	Stock
Certificate No(s)	  	Number of
Shares	  	Percentage
of Issued and
Outstanding
Shares

 Pledged Debt 
  

									
	 Pledgor
	  	Issuer	  	Initial
Principal
Amount	  	Date of Note	  	Maturity
DateAssurance of Discontinuance and Voluntary Compliance

 Exhibit 10.1 
 In the Matter of 
 ACE Limited and 
 ACE Group Holdings, Inc. 
 ASSURANCE OF DISCONTINUANCE AND VOLUNTARY COMPLIANCE 
 Pursuant to the provisions of Executive Law § 63 (12), the Donnelly Act (Gen. Bus. Law §§ 340 et seq.), the Martin Act (Gen.
Bus. Law § 352-c) and the common law of the State of New York, Eliot Spitzer, Attorney General of the State of New York caused an investigation to be made of ACE Limited, a Cayman Islands corporation with its principal place of business in
Bermuda, that trades on the New York Stock Exchange and its subsidiaries including but not limited to ACE Group Holdings, Inc. and ACE INA Holdings Inc. (collectively “ACE”) relating to practices in the marketing, sale, renewal, placement
or servicing of insurance and reinsurance and their accounting and public reporting practices, including those relating to nontraditional and finite insurance and reinsurance (the “Investigation”); and pursuant to Conn. Gen. Stat.
§§ 35-24 et seq. (the Connecticut Antitrust Act) and Conn. Gen. Stat. §§ 42-110a et seq. (the Connecticut Unfair Trade Practices Act), Richard Blumenthal, Attorney General of the State of Connecticut,
caused an investigation to be made of ACE on the subject matter of the Investigation; and pursuant to the Illinois Antitrust Act, 740 ILCS 10/1 et seq. and the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS
505/1 et seq., Lisa Madigan, Attorney General of the State of Illinois, caused an investigation to be made of ACE on the subject matter of the Investigation (collectively “Attorneys General Investigations”); and Howard Mills,
the Superintendent of Insurance of the State of New York (the “Superintendent”), caused an investigation to be made of ACE on the subject matter of the Investigation 

 
(the “Superintendent’s Investigation”); and based upon the Attorneys General Investigations and the Superintendent’s Investigation the
following findings have been made: 
 1. Since at least the mid-1990s ACE and other insurers have paid hundreds of millions of dollars in
so-called “contingent commissions” to the world’s largest insurance brokers, including Marsh & McLennan Companies, Inc. or Marsh Inc. (collectively “Marsh”), Aon Corporation (“Aon”),Willis Group Holding
Ltd. (“Willis”), and Arthur J. Gallagher & Co. (“Gallagher”) as well as tens of thousands of smaller brokers and independent agents. 
 2. ACE entered into a number of contingent commission agreements (also known as “override” agreements) to pay compensation to Producers,1 such as Marsh, Aon, Willis and Gallagher as a result of which they steered insurance policies to ACE to increase the volume of policies written by ACE, to keep
retention levels of existing ACE policies above certain benchmarks, and to direct policies to ACE. In most cases, steering took the form of Producers purporting to offer unbiased recommendations to their clients about the selection of insurers when
in fact, in many cases, the Producers’ recommendations were biased in favor of insurers who paid contingent commissions. 
 3. Under
these agreements, when Marsh, for example, helped ACE retain its existing business at renewal time, ACE paid Marsh higher contingent commissions. Thus, in the 2002 placement service agreement between the two companies relating to environmental
insurance, ACE agreed to pay Marsh an aggregate percentage of gross written premium that 

	1	For purposes of this Agreement, “Producer” shall mean any insurance broker as that term is defined in § 2101(c) of the Insurance Law of the State of
New York or any independent insurance agent as that term is defined in § 2101(b) of the Insurance Law of the State of New York and who offers insurance for a specific product or line from more than one insurer or affiliated group of insurers.

  

 2 

 varied from 4% for total placements of $1 million to $7 million up to 6% for total placements above $10 million. These
contingent compensation payments were passed on to ACE’s customers in the form of higher premiums. 
 4. In 2002, ACE decided to greatly
expand its position in the potentially lucrative excess casualty market (which covers losses above the limits provided by policyholders’ primary casualty insurance policies) by creating a separate division, called the Casualty Risk Department.
Previously, ACE had maintained only a small presence in this market. In order to gain access to excess casualty contracts and ensure a steady stream of business, ACE signed a lucrative placement service agreement in which ACE agreed to pay
sufficient contingent commission to ensure Marsh’s commission totaled a minimum of 10% for the first $1 of premium to 20% for any amount over $ 180 million dollars of premium. In addition, ACE agreed to join other insurers and Marsh in
rigging the process of bidding for insurance policies and actively deceiving clients. ACE participated in the scheme in two ways: (1) where ACE was the incumbent on the lead layer of business, Marsh generally sought to protect ACE’s
incumbency and gave ACE an unfair competitive advantage by seeking out non-competitive bids from other insurers; and (2) where ACE was not the incumbent on the lead layer, ACE agreed to provide quotes to protect the incumbent, with the
understanding that ACE would receive business on an excess layer without competition, thereby allowing it to enter the market. These practices were to the detriment of the insured, whose best interests Marsh was supposed to be serving. 

5. The details of the scheme were as follows, when ACE was the incumbent carrier on the lead layer, or was otherwise chosen by Marsh to win a
client’s excess layer business, Marsh set a target for ACE which included proposed premium and policy terms for 

  

 3 

 
ACE’s bid. If ACE met this target, Marsh generally arranged for ACE to win the business, regardless of whether ACE, or any other insurance company,
could have quoted better terms for the client. 
 6. In order to control the market, Marsh instructed other insurance companies to provide
intentionally losing bids that were inferior to those provided by the incumbent or its chosen winner for the excess layer. These losing quotes were known, among other things, as “fake,” “backup,” “supportive,”
“alternative leads” or “protective quotes.” They were also known as “B Quotes” or simply “B’s.” Once it had secured such quotes, Marsh would present them to clients as bids obtained through a competitive
process. This pretense of competition was intended to, and did, give clients the impression that ACE’s bid was the best available. It also had the effect of directing business to ACE, not at terms best for the client, but rather at terms
advantageous to ACE. Certain employees of ACE were aware of this arrangement and of the “B Quotes” supplied by other insurers. 
 7. In an e-mail dated November 3, 2003 ACE’s president of casualty risk summarized ACE’s arrangement with Marsh: 
 Marsh is consistently asking us to provide what they refer to as “B” quotes for a risk. They openly acknowledge we will not bind these “B” quotes in the layers we are be [sic] asked to quote but that they ‘will work
us into the program’ at another attachment point. So for example if we are asked for a “B” quote for a lead umbrella then they provide us with pricing targets for that “B” quote. It has been inferred that the ‘pricing
targets’ provided are designed to ensure underwriters ‘do not do anything stupid’ as respects pricing. 
 8. The arrangement
with Marsh allowed ACE to become a major competitor in the 

  

 4 

 
excess casualty market with phenomenal speed. In 2001, before entering the scheme, ACE received only $5 million in Excess Casualty premiums in the United
States from Marsh. This number increased in 2002 to $41 million, $98.6 million in 2003 and $93.5 million in 2004. These premiums placed ACE over this time period as the third largest carrier of excess casualty with Marsh, behind only Marsh’s
long time partners in the scheme AIG and Zurich. Set forth below are specific examples of ACE’s participation in the bidrigging scheme: 
  

	 	a.	In or about December of 2002, Client A approached Marsh to help Client A obtain excess casualty insurance. In response to the ensuing quote request from Marsh, an ACE assistant vice
president of underwriting sent a fax to Greg Doherty, a senior vice president in Marsh Global Broking’s Excess Casualty division, quoting an annual premium of $990,000 for the policy. Later that day, ACE revised its bid upward to $1,100,000. On
the fax cover sheet with the revised bid, ACE’s assistant vice president wrote: “Per our conversation attached is revised confirmation. All terms & conditions remain unchanged.” An e-mail the next day from the assistant vice
president to an ACE vice president of underwriting explained the revision as follows: “Original quote $990,000 . . . We were more competitive than AIG in price and terms. MMGB [Marsh] requested we increase premium to $1.1 M to be less
competitive, so AIG does not loose [sic] the business. . . .” 

  

	 	b.	 In or about June of 2003, ACE learned that Client B was unhappy with the incumbent carrier for its excess casualty insurance. Despite this, Marsh 

  

 5 

	 	 
asked ACE to refrain from submitting a competitive bid because Marsh wanted the incumbent, AIG, to keep the business. An ACE vice president of underwriting
wrote to ACE’s president of casualty risk: 

 Our rating has risk at $890,000 and I advised MMGB NY that we could get
to $850,000 if needed. Doherty gave me [a] song & dance that game plan is for AIG at $850,000 and to not commit our ability in writing! 
 In order to satisfy the Marsh executive, ACE never made the lower bid (ACE did submit the higher $890,000 bid) and AIG won the contract. 
  

	 	c.	In or about October of 2003, Client C was looking to renew its excess casualty insurance. Zurich was the incumbent on the plan. Prior to Zurich’s bidding on the renewal, ACE
expressed interest in covering both the lead and excess layer. The ACE underwriter wrote to Marsh, “We are interested in looking at the Lead or excess.” The e-mail went on to state, “Please advise game plan at your earliest
convenience.” In response, the Marsh broker made clear that the lead was not available for a real bid from ACE, forwarding an internal Marsh e-mail that stated, “Zurich hit the revised target of $535,000. We will need an e-mail indication
for $25mm x P from ACE.” The e-mail also included a message to the ACE underwriter stating simply, “need a b declination.” ACE responded the next day by quoting an amount less favorable for coverage than Zurich’s quote. Zurich
kept the coverage. 

  

 6 

	 	d.	In or about August of 2003, Client D asked Marsh to solicit bids on its lead and excess casualty insurance. Marsh set a target for the incumbent AIG at $525,000 for the renewal.
AIG, however, wanted to receive a higher premium of $545,000 and submitted its bid at the higher amount. Even though AIG had missed the target, Marsh sought to aid AIG and solicited B quotes to protect it, as documented by the following Marsh
e-mail: 

 AIG quoted 25 x P for $545,000. Copies were distributed yesterday. This is slightly above plan and if we need to
adjust the excess to the same percentage increase, no big deal. . . . We need a hard copy lead alternative from Zurich & ACE. Both should not mind as they will both get the excess. 
 This e-mail was followed by an e-mail to the ACE underwriter informing ACE of AIG’s quote and asking for an “alternative lead.” ACE
responded by protecting AIG with a quote over $100,000 higher than AIG’s bid. 
  

	 	e.	 In or about July of 2003, Client E sought to renew its excess casualty coverage and asked Marsh to solicit competitive bids. Marsh’s broking plan dictated that
St. Paul was to receive the coverage for the lead layer at a premium of $200,000. Once St. Paul hit the target, Marsh sought protective B Quotes. An internal Marsh e-mail stated: “I am going to need a B quote from ACE . . . so I can get CA [the
Marsh Client Advisor] off my back. In fact, please have ACE Excess release a quote for $25mm x 

  

 7 

	 	 
P.” This was followed by an e-mail from Marsh to the ACE underwriter which stated: 

 ST. Paul quoted a lead $25mm xs P (same attachments as expiring) and hit target of $200,000. I rated up the program and came to approx. $460,000 for a
lead $25MM. [giving ACE an indication of what to bid] 
 Can you please provide us with a back-up indication at your soonest. Should you need
any additional information, please advise. I await your indication. 
 Later that same day, ACE responded by stating that its price would be
about $450,000 or more than double St. Paul’s coverage. St. Paul’s received the coverage. 
 9. In addition to participating in the
bidrigging scheme with Marsh, ACE engaged in a variety of other improper activities to ensure that brokers gave ACE preferential treatment in the placement of contracts. These activities included: (1) compensating brokers for business steered
to ACE by agreeing to obtain ACE’s own reinsurance through the same broker, and (2) sending fraudulent e-mails to a broker misrepresenting ACE’s payments to help the broker meet its targeted performance goals. 
 10. In November of 2003, ACE retained Guy Carpenter, the reinsurance brokerage unit of Marsh, to place reinsurance for a contract that Willis Retail had
awarded to ACE for Client G. Willis, upon discovering that ACE had hired a competing reinsurance broker on a Willis retail account, called Susan Rivera, ACE North America’s President, and insisted that the reinsurance business be placed through
Willis Re. After the call, Rivera ordered ACE to move the reinsurance to Willis Re. Willis Re, upon replacing Guy Carpenter, performed no work, 

  

 8 

 
instead simply using the quotes already obtained by Guy Carpenter to bind the business. As the ACE underwriter described the situation: 
 I can’t say I really “worked” with Willis Re. I received [the reinsurance company’s] quotes through Guy Carpenter. It wasn’t till
senior management received calls from Willis on this account that I started “working” with Willis Re. Willis Re just went and retrieved the quote that was already presented by Guy Carp [enter]. 
 11. Similarly, in February of 2000, ACE had retained the JLT Group (“JLT”) to procure reinsurance on a contract involving Client H, a
government organization. JLT was well along in the process of finding reinsurance, having lined up a number of competitive quotes. Despite the arrangement with JLT, Marsh, the broker on the primary insurance, made clear to ACE that if ACE did not
use Marsh for the reinsurance, ACE would not receive the contract. ACE responded by agreeing to switch the reinsurance broker to Marsh (so as not to destroy ACE’s relationship with JLT, ACE was able to get Marsh to agree to split the
commissions with JLT). As the ACE underwriter explained to JLT: 
 We have told Marsh that we will transfer the facultative placement
[reinsurance] to them, but that you will share in the commission for a period of time. If we had not agreed to this, we feel AIG would have been a shoe-in [on the initial contract]. 
 12. To promote its relationship with a broker and receive more business, ACE also provided false documentation that would improve the appearance of the
broker’s year end results. In late 2003, Willis sought out a number of insurance companies, promising increased future business in exchange for unearned payments. One ACE employee described the proposal as follows: 
 At a recent dinner [Willis executive] approached me, [another ACE employee], Susan Rivera [ACE North America’s president] 

  

 9 

 
and indicated confidentially that he is under significant pressure from his superiors to meet serious income deficiency shortfalls in the year and quarter.
He expressed his intention to approach a couple of “partner markets” that he would then “guarantee” significant new business growth to [sic] in ‘04. Those who did not choose to help him as a partner now would not be
designated “favored” market. 
 While he readily acknowledged that such an arrangement would require a great deal of personal trust
in him he will assure his ability to make good and will guarantee Willis performance. He indicated he needs $500,000 from ACE in the fourth quarter this year as advance payment for next year. 
 ACE accepted the offer and agreed to pay Willis $500,000 for the promise of significant new business growth. Willis, however, still had a problem in that it needed to
justify the receipt of these funds on its books. To achieve this result, Willis’ head of contingent commissions personally convinced Susan Rivera, ACE’s North American president, to send fraudulent e-mails (originally drafted by Willis)
indicating that Willis was entitled to the payment in 2003. The inaccurate e-mails were then given to Willis’s auditors to justify the recording of the payment. 
 13. ACE also used non-traditional and finite reinsurance to improperly enhance both its own earnings and those of its clients. In at least six separate deals, ACE created the false appearance of risk transfer,
utilizing methods such as secret side agreements, to negate the wording of written contracts that did not accurately characterize the agreement reached between the parties. Below are three examples this type of behavior: 
  

	 	a.	 In 1998, Hiscox Syndicates Ltd. (“Hiscox”), a privately held United Kingdom insurance company, was seeking a reinsurance contract for a policy it had
insured with a $45 million dollar limit on which $40.8 million of losses had already occurred. It was apparent that the full $45 

  

 10 

	 	 
million limit would be reached under the policy. ACE agreed to enter into a “reinsurance” contract whereby Hiscox would pay $45 million in premium
for $50 million in coverage. Thus, the contract on its face would appear to have sufficient risk of loss to any auditor or regulator who examined the contract. 

 Both ACE and Hiscox, however, believed that it was likely that the losses would reach at least the $50 million limit. Accordingly, the parties negotiated
a secret side agreement providing that ACE would not have to pay any claims until 2002. This provision ensured that ACE would generate sufficient investment income to cover any losses over the premium, and thus incur no real risk. The side letter
dated January 11, 1999 stated: 
 Notwithstanding anything to the contrary in the Slip, Hiscox hereby agrees that no claim shall become
payable by ACE to Hiscox under the Slip before May 10, 2002. 
 ACE inadvertently showed a copy of the side agreement to its outside
auditing firm which, as a result, refused to authorize the deal as reinsurance. Rather than simply abandoning the deal, however, ACE falsely told its auditor that the transaction would proceed without the side agreement. In reality, ACE and Hiscox
simply reached a verbal agreement for the same terms as the previous side agreement. The verbal side agreement was followed by the parties, with no payment occurring from 

  

 11 

 
ACE until May of 2002. Both sides accounted for the deal as “reinsurance”. 
  

	 	b.	ACE entered into a second sham “reinsurance” agreement in 2000. This involved American Capital Access (“ACA”), a privately held United States insurer. In a
series of contracts, ACE agreed to provide ACA with $60 million in “reinsurance” in exchange for $60 million in premiums. This was essentially a loan agreement, as acknowledged by ACE in an internal document describing the deal (after the
first $10 million in coverage was given). That memorandum stated, 

 Restructured program can be viewed as ACA making a $10
million loan to ACE at 3% rate of interest (thus AFS [a division of ACE] earns approximately 300 bps on $10 million). 
 To make sure that ACE
would not realize any profits beyond a small fee and a reasonable rate of interest for the loan, the parties entered into two secret side agreements. Under these agreements, ACE’s profits were guaranteed and capped at $500,000, eliminating any
risk from the deal. The second side agreement stated (which was almost identical to the one it supplanted): 
 [I]t is the intention of the
parties that ACE will realize a pre-tax profit margin of approximately $500,000, plus an amount equal to any investment income in excess of 3% . . . . Each party will exercise its best efforts to effect this result . . . so that any shortfall
experienced by ACE will be compensated by ACA and any overage (including 

  

 12 

 
related investment income) will be recovered by ACA from ACE. 
 ACE’s auditors and regulators were never informed about the side agreements, 
  

	 	c.	 ACE also used finite insurance to improperly shift losses among its subsidiaries, accounting for inter-company transfers as “reinsurance.” In 2000, ACE
Tempest Reinsurance, Ltd. (“Tempest Re”), a Bermuda based subsidiary of ACE dealing with catastrophic insurance, had incurred property losses of $45 million. ACE wanted to provide reinsurance that would have the effect of freeing up
Tempest Re’s capital for other transactions. Accordingly, ACE engineered an internal reinsurance deal between Tempest Re and ACE Bermuda Insurance Ltd. (“ACE Bermuda”), a separate ACE subsidiary. Tempest Re and ACE Bermuda entered
into a sham transaction that appeared to involve Tempest Re paying $70 million for $120 million in reinsurance (part of which covered the $45 million that had already occurred). The substance of the deal as it appeared on paper, however, was
overridden by a secret side agreement, pursuant to which Tempest Re and ACE Bermuda agreed to cancel the contract as soon as Tempest Re had paid the first $45 million of premiums with ACE Bermuda receiving a $5.67 million fee for participating in
the deal. Thus, ACE Bermuda faced no risk of losing money on the deal, and ACE Tempest Re was able to remove its losses for a set fee of $5.67 

  

 13 

	 	 
million. Despite the lack of risk, both parties accounted for the deal as “reinsurance”. 

 14. Based on these allegations, the Attorneys General and the Superintendent allege that ACE unlawfully deceived policyholders, regulators and other
authorities and shareholders by: (a) participating in schemes to steer business; (b) participating in rigging of bids for excess casualty insurance through Marsh; and (c) improperly using insurance transactions to bolster the quality,
quantity and stability of their clients’ and ACE’s earnings; 
 15. ACE has been and is continuing to cooperate with the Attorneys
General Investigations and the Superintendent’s Investigation; 
 16. In the wake of the issuance of the subpoenas and the Attorneys
General Investigations and the Superintendent’s Investigation, ACE has adopted and, under this Assurance of Discontinuance and Voluntary Compliance (the “Assurance”) and corresponding Stipulation with the Superintendent (the
“Stipulation”), will continue to implement a number of business reforms governing the conduct of employees of ACE. 
 17. By
entering into this Assurance, the Attorneys General resolve all issues uncovered to date (with the exception of those areas noted below) in the Attorneys General Investigations. 
 18. The Attorneys General find the relief and agreements contained in this Assurance appropriate and in the public interest. The Attorney General of New
York is willing to accept this Assurance pursuant to Executive Law § 63(15), in lieu of commencing a statutory proceeding. The Attorney General of Connecticut is willing to accept the Assurance in lieu of commencing a statutory proceeding under
Conn. Gen. Stat. §§ 35-32, 42-110m and 33-1335. 
  

 14 

 The Attorney General of Illinois is willing to accept the Assurance in lieu of commencing a statutory proceeding under
740 ILCS 10/1 et seq, and 815 ILCS 505/1 et seq. 
 19. The Superintendent and ACE will, simultaneously with the
signing of the Assurance, enter into a Stipulation to resolve all issues uncovered to date in the Superintendent’s Investigation, but not including any issues in the Superintendent’s current examination of Westchester Fire Insurance
Company. 
 20. This Assurance is entered into solely for the purpose of resolving the Attorneys General Investigations, and is not intended
to be used for any other purpose. 
 21. Without admitting or denying any of the above allegations, ACE is entering into this Assurance and
the Stipulation. 
 22. Nothing herein shall be construed to apply to any business or operations involving group and individual:
(1) fixed and variable life insurance, (2) fixed and variable, immediate and deferred annuities, (3) accidental death and dismemberment insurance, (4) short and long term disability insurance, (5) long term care insurance,
(6) accident and health insurance, including vision and dental insurance, (7) credit insurance, (8) involuntary unemployment insurance, (9) guaranteed investment contracts, and (10) funding agreements (collectively
“ACE’s Life Insurance Operations”). Nor shall this Assurance nor any its provisions be construed to apply to or waive any claims or causes of action related to any Loss Portfolio Arrangement, Loss Portfolio Program nor any similar
Worker’s Compensation arrangement with the State of Connecticut or any department or entity thereof (collectively “Connecticut’s Worker’s Compensation Investigation”). 
  

 15 

 NOW THEREFORE, the Attorneys General and ACE hereby enter into this Assurance with a statement of apology
attached as Exhibit 1, and agree as follows: 
 Bid Rigging – Excess Casualty Policyholders 
 1. On or before June 7, 2006, ACE Group Holdings, Inc. shall pay $40 million into a fund (the “Excess Casualty Fund”) held by ACE to be
paid to ACE’s policyholders who purchased or renewed ACE’s Excess Casualty policies (including policies written on the “Bermuda Form” in categories 1 and 2 as classified by ACE), excluding Excess Workers Compensation policies,
through Marsh during the period from January 1, 2002 through September 30, 2004 (the “Eligible Policyholders”). All of the money paid into the Excess Casualty Fund and any investment or interest income earned thereon shall be
paid to Eligible Policyholders pursuant to this Assurance. No portion of the Excess Casualty Fund shall be considered a fine or a penalty. 
 2. The Excess Casualty Fund shall be invested in a designated money market fund subject to the prior approval of the Attorneys General and the Superintendent. 
 3. ACE shall (a) by August 9, 2006 calculate the amount of money each of the Eligible Policyholders paid for excess casualty insurance placed through Marsh with inception or renewal dates during the period
from January 1, 2002 through September 30, 2004 (the “Eligible Policies”); (b) within ten days of completing these calculations, file a report with the Attorneys General and the Superintendent, certified by an officer of
ACE, setting forth: (i) each Eligible Policyholder’s name and address; (ii) the Eligible Policyholder’s Eligible Policy(ies) purchased or renewed and policy number(s); (iii) the amount the Eligible Policyholder paid in
premiums for each such policy; and (iv) the amount each policyholder is eligible to receive which shall equal 

  

 16 

 
each policyholder’s pro rata share of the Excess Casualty Fund as calculated by multiplying the amount in the Excess Casualty Fund by the ratio of the
policyholder’s gross written premium for Eligible Policies for the period from January 1, 2002 through September 30, 2004, divided by the total gross written premium for all Eligible Policies; and (c) by August 23, 2006,
send a notice to each Eligible Policyholder, setting forth items (ii) through (iv), above, and stating that the amount paid may increase if there is less than full participation by Eligible Policyholders in the Excess Casualty Fund (the
“Excess Notice”). The form of the Excess Notice shall be subject to the prior approval of the Attorneys General and Superintendent. 
 4. Eligible Policyholders who receive an Excess Notice and who voluntarily elect to receive a cash distribution (the “Participating Policyholders”) shall tender a release in the form attached hereto as Exhibit 2 on or before
January 26, 2007. 
 5. On or before March 6, 2007, ACE Group Holdings, Inc. shall pay each Participating Policyholder the amount
that Participating Policyholder is eligible to receive from the Excess Casualty Fund as set forth in paragraph 3(b)(iv) above, and any interest or investment income earned thereon. 
 6. On or before April 6, 2007, ACE shall file an interim report with the Attorneys General and the Superintendent, certified by an officer of ACE,
listing all amounts paid from the Excess Casualty Fund. 
 7. In the event that any Eligible Policyholder elects not to participate or
otherwise does not respond to the Excess Notice (the “Non-Participating Policyholders”), the amount that such policyholder was eligible to receive from the Excess Casualty Fund as set forth in paragraph 3(b)(iv) may be used by ACE to
satisfy any pending or other claims asserted by policyholders 

  

 17 

 
relating to the excess casualty bid rigging or excess casualty steering allegations set forth in this Assurance, provided that in no event shall a
distribution be made from the Excess Casualty Fund to any other policyholder until all Participating Policyholders have been paid the full aggregate amount set forth in paragraph 3(b)(iv) above, and any interest or investment income earned thereon;
nor shall the total payments from the Excess Casualty Fund to any Non-Participating Policyholder exceed 80% of the amount that Non-Participating Policyholder was originally eligible to receive as set forth in paragraph 3(b)(iv). 
 8. If any money remains in the Excess Casualty Fund as of January 7, 2008 any such funds shall be distributed by February 7, 2008 on a pro rata
basis to the Participating Policyholders. 
 9. In no event shall any of the money in the Excess Casualty Fund or the investment or interest
income earned thereon be used to pay or considered in the calculation of attorneys fees. 
 10. In no event shall any of the money in the
Excess Casualty Fund or the investment or interest income earned thereon be used to pay or considered in the calculation of commissions, administrative or other fees to ACE. 
 11. On or before February 22, 2008, ACE shall file a report with the Attorneys General and the Superintendent, certified by an officer of ACE,
listing all amounts paid from the Excess Casualty Fund, including any payments subsequent to the payments described in paragraph 6. 
  

 18 

 MONETARY FINE, PENALTY AND PAYMENT 
 12. On or before June 7, 2006, ACE Group Holdings, Inc. shall pay $40 million as a fine or penalty of which a $24 million fine will be paid by wire
transfer to the State of New York, a $8 million payment will be made in accordance with 815 ILCS 505/7(d) by wire transfer to the State of Illinois and a $8 million penalty will be paid by wire transfer to the State of Connecticut. Each Attorney
General and the Superintendent shall provide issuing instructions with respect to the payments. These fines and penalties are imposed for all of the improper conduct described in this Assurance and the Stipulation. 
 BUSINESS REFORMS 
 13. Within
60 days of the date of this Assurance (or such other date as specified below), ACE shall undertake the following business reforms. ACE will not undertake any transaction for the purpose of circumventing the prohibitions contained in this Assurance.

 14. For purposes of this Assurance, Compensation shall mean anything of material value given to a Producer including, but not limited to,
money, credits, loans, forgiveness of principal or interest, vacations, prizes, gifts or the payment of employee salaries or expenses, provided that Compensation shall not mean customary, non-excessive meals and entertainment expenses. ACE shall
develop and implement policies for its employees explaining the provisions of this paragraph as part of the standards described in paragraph 27 below. Prior to October 9, 2006, ACE shall submit to the Attorneys General and the Superintendent a
draft of the intended policies. 
 15. For purposes of this Assurance, Contingent Compensation is any Compensation 

  

 19 

 
contingent upon any Producer: (a) placing a particular number of policies or dollar value of premium with ACE; (b) achieving a particular level of
growth in the number of policies placed or dollar value of premium with ACE; (c) meeting a particular rate of retention or renewal of policies in force with ACE; (d) placing or keeping sufficient insurance business with ACE to achieve a
particular loss ratio or any other measure of profitability; (e) providing preferential treatment to ACE in the placement process, including but not limited to giving ACE last looks, first looks, rights of first refusal, or limiting the number
of quotes sought from insurers for insurance placements; or (f) obtaining anything else of material value for ACE. This definition does not include Compensation paid to employees of ACE or to their Producers that are captive or are exclusive to
ACE with respect to a specific line or product that is clearly and conspicuously identified in marketing materials as ACE’s line or product. 
 16. Compensation Disclosure. Beginning six months from the date of this Assurance, ACE’s offices, situated and issuing insurance policies in the United States or its territories, shall send a notice accompanying the
insured’s policy, stating that the insured can review and obtain information relating to ACE’s practices and policies regarding Compensation on either a website or from a toll-free telephone number. The information on the website or
available through the toll-free number shall be sufficient to inform insureds of the nature and range of Compensation, by insurance product, paid by ACE. No later than four months from the date of this Assurance, ACE shall submit to the Attorneys
General the proposed format and content of the notice, website and the information available via the toll-free telephone number described in this paragraph. The form and content of the notice, website and information available via the toll-free
telephone number shall be subject to the prior approval of the Attorneys 

  

 20 

 
General. ACE shall commence posting the website and operation of the toll-free telephone number no later than six months after the date of this Assurance.

 17. Prohibition on Contingent Compensation for Excess Casualty. During the period of 2006 through and including 2008, ACE’s
offices situated and issuing policies in the United States shall not pay any Producer Contingent Compensation relating to the placement of any excess casualty insurance policy. In addition, ACE commits that its offices situated and issuing policies
outside the United States shall not pay any Producer Contingent Compensation relating to the placement of any excess casualty insurance policy issued or renewed to any insured domiciled in the United States, which policy is principally associated
with covering property or operations situated in the United States. Subsequent to 2008, excess casualty insurance shall be subject to the provisions of paragraph 23. 
 18. ACE shall undertake the business reforms set forth in paragraphs 19-25 for any offices situated and issuing policies in the United States. 
 19. Except as set forth in paragraphs 23-25 below, in connection with its issuance, renewal or servicing of insurance policies through a Producer, ACE
shall pay as Compensation only a specific dollar amount or percentage commission on the premium set at the time of each purchase, renewal, placement or servicing of a particular insurance policy. 
 20. Prohibition on Pay-to-Play. ACE shall not offer to pay or pay, directly or indirectly, any Producer any Compensation in connection with the
Producer’s solicitation of bids for the Producer’s clients. 
 21. Prohibition on Bid Rigging. ACE shall not directly or
indirectly 

  

 21 

 
knowingly offer or provide to any Producer any false, fictitious, artificial, ‘B’ or “throw away” quote or indication. Nothing herein
shall preclude ACE from offering to provide or providing any bona fide quote or indication. 
 22. Prohibition on Leveraging. ACE
shall not make any promise or commitment to use any Producer’s brokerage, agency, producing or consulting services, including reinsurance brokerage, agency or producing services, contingent upon any of the factors listed in paragraph 15 (a) -
(f) above. 
 23. Additional Limitations on Contingent Compensation. Within 30 days of receipt of a notice from any of the Attorneys
General that the Attorneys General have made a determination, based on market share information available from the National Association of Insurance Commissioners (“NAIC”) or A.M. Best Company (or another agreed upon third-party source of
market share data if such data is not available from NAIC or A.M. Best for a given insurance line (or product/segment)), that (a) insurers who do not pay Contingent Compensation in a given insurance line (or product/segment) including but not
limited to direct writers and insurers that employ only captive agents in the given insurance line (or product/segment) and (b) insurers who have signed Agreements or Assurances with the Attorney General of New York or agreements with other
Attorneys General containing this paragraph as applied to them, together represent more than 65% of the national gross written premiums in the given insurance line (or product/segment) in the calendar year for which market share data is most
recently available (the “Notice”), ACE shall stop paying Contingent Compensation for such insurance line (or product/segment) beginning on January 1 of the next calendar year following the date of the Notice. If, in any given calendar
year after the date of the Notice described above, the market 

  

 22 

 
share used in the Notice falls below 60%, ACE shall notify the Attorneys General of the change. If, within 60 days, the Attorneys General do not object to
ACE’s determination that the market share used in the Notice is below 60%, any prohibition on Contingent Compensation described in the Notice shall cease. If any of the Attorneys General do object to ACE’s determination, the Attorneys
General shall set forth the reasons for such objections in a written notice to ACE within 60 days of ACE’s notification to the Attorneys General. Resort to court action to resolve a dispute related to the determination of market share or the
determination that a given insurer does not pay Contingent Compensation under this paragraph shall not be deemed a violation of this Assurance. 
 24. Except as provided in paragraph 17, in any insurance line or product in which ACE paid Contingent Compensation for the 2004 calendar year or any part thereof, ACE may continue to pay Contingent Compensation until the receipt of a Notice
from the Attorneys General that the conditions described in paragraph 23 above have been met. Following receipt of a Notice, ACE may continue to pay any Contingent Compensation accrued or accruing until the end of the calendar year. In no event
shall any provisions in paragraphs 23, 24 and 25 be construed to require ACE to take any action that would cause ACE to be in breach of an agreement that is in force as of the date of this Assurance. 
 25. ACE agrees not to commence the paying of Contingent Compensation in any insurance line (or product/segment) in which it did not pay Contingent
Compensation for the 2004 calendar year or any part thereof and where the Attorneys General have sent a Notice pursuant to paragraph 24 above. In the event that ACE intends to enter into any agreement potentially obligating it to make Contingent
Compensation payments for any insurance line (or 

  

 23 

 
product/segment) in which it did not pay Contingent Compensation for the 2004 calendar year or any part thereof, ACE agrees to give the Attorneys General
written notice and a copy of the intended agreement at least 60 days prior to the execution of any such agreement. 
 26. Controls on
Finite and Non-traditional Reinsurance. ACE commits that ACE will enact policies and procedures satisfactory to the Attorneys General and the Superintendent to prevent transactions designed solely to manipulate accounting results, transactions
involving insufficient risk transfer created for purposes of improperly qualifying such transactions for reinsurance accounting, and transactions that contain undisclosed side agreements. 
 27. Standards of Conduct and Training. ACE shall implement written standards of conduct regarding Compensation paid to Producers, consistent with
the terms of this Assurance, subject to approval of the Attorneys General and Superintendent, which implementation shall include, inter alia, appropriate training of relevant employees, including but not limited to training in business
ethics, professional obligations, conflicts of interest, anti trust and trade practices compliance, and record keeping. ACE commits that its insurance subsidiaries doing business outside of the United States directly or through professional
intermediaries, with United States resident insureds for policies principally associated with property or operations situated in the United States, will conform their conduct to the requirements of the Assurance and Stipulation. 
 28. ACE agrees to support legislation and regulations in the United States to abolish Contingent Compensation for insurance products or lines. ACE
further agrees to support legislation and regulations in the United States requiring greater disclosure of Compensation. 
  

 24 

 29. ACE shall not engage or attempt to engage in violations of New York State Executive Law §
63(12), New York State’s Donnelly Act (Gen. Bus. Law § 340 et seq.), New York State’s Martin Act (Gen. Bus. Law § 352-c), New York Insurance Law, Conn. Gen. Stat. §§ 35-24 et seq. 42-110a et
seq. and 33-1335 and the Illinois Antitrust Act, 740 ILCS 10/1 et seq. and the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1 et seq. 
 REINSURANCE REPORTING OBLIGATIONS 
 30. For a period of five years beginning August 7, 2006, ACE will provide annually by May 1 of each year to the Superintendent a report, in a format approved by the Superintendent, that includes: 
  

	 	a.	A review of ceded and assumed reinsurance of the property/casualty insurance subsidiaries of ACE required to file statutory financial statements on the NAIC blanks (the
“Property/Casualty Insurers”) verifying that all contracts comply with SSAP 62 and 75 and the new NAIC disclosure and attestation requirements including the attestation that with respect to all reinsurance contracts for which the reporting
entity is taking credit on its current financial statements, to the best of ACE’s knowledge and belief, after diligent inquiry and unless noted as an exception under the attestation requirement: 

  

	 	i.	 Consistent with SSAP 62, there are no separate written or oral agreements between the reporting entity (or its affiliates or companies it controls) and the assuming
reinsurer that would under any circumstances, reduce, limit, mitigate or otherwise affect any 

  

 25 

	 	 
actual or potential loss to the parties under the reinsurance contract, other than inuring contracts that are explicitly defined in the reinsurance contract
except as disclosed; 

  

	 	ii.	For each such reinsurance contract entered into, renewed or amended on or after January 1, 1994, for which risk transfer is not reasonably considered to be self-evident,
documentation concerning the economic intent of the transaction and the risk transfer analysis evidencing the proper accounting treatment, as required by SSAP 62 and 75, is available for review; 

  

	 	iii.	The reporting entity complies with all the requirements set forth in SSAP 62 and 75, and any supporting documentation is available for review; 

  

	 	iv.	The reporting entity has appropriate controls in place to monitor the use of reinsurance and adhere to the provisions of SSAP 62 and 75. 

  

	 	b.	A list of all its affiliated insurers, categorized by domicile, whether controlled through ownership or otherwise under the Insurance Law. The list shall include the percentage of
ownership or other means by which ACE controls the affiliated insurer. 

  

	 	c.	A list of its ownership of five percent or more of the voting shares of any non-affiliated insurer entities. 

  

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	 	d.	A list of non-affiliated insurers to whom ACE’s Property/Casualty Insurers have ceded business during the preceding calendar year either directly, or through retrocession
agreements if known, excluding those captive reinsurance entities that do not accept third party business, where the business ceded represents fifty percent or more of the entire direct and assumed premium written by insurer, based upon such
insurer’s most recent publicly available financial statements. 

 Such report shall be certified by the Chief Reinsurance Officer and the
Chief Executive Officer of ACE Limited and a copy of such report shall be submitted to the relevant Audit Committee of ACE. 
 31. The Chief
Reinsurance Officers of ACE will maintain approved lists of reinsurers. ACE will not cede insurance to any reinsurer not set forth on those lists. Such lists will be available to the Superintendent upon examination. All approved reinsurance
relationships will be reviewed by the Chief Reinsurance Officer of ACE Limited and such review will include a written determination of whether the reinsurance entity is affiliated or controlled (by ownership, by contract or otherwise) by ACE.

 32. Additional Undertakings. 
  

	 	a.	ACE agrees that it will establish and maintain a training and education program, completion of which will be required for all officers, executives, and employees of ACE who have
supervisory responsibility over accounting, financial reporting and public disclosure functions relating to the United States (collectively, the “Mandatory Participants”). 

  

 27 

	 	b.	The training and education program shall be designed to cover, at a minimum, the following: (i) the obligations imposed by federal and state securities law, ACE’s
financial reporting and disclosure obligations; (ii) the financial reporting and disclosure obligations imposed on ACE by New York State, Illinois and Connecticut insurance laws; (iii) compliance with federal and state anti-trust laws;
(iv) proper internal accounting controls and procedures; (v) discovering and recognizing accounting practices that do not conform to GAAP or SSAP or that are otherwise improper; and (vi) the obligations assumed by, and responses
expected of the Mandatory Participants upon learning of improper, illegal or potentially illegal acts relating to ACE’s accounting and financial reporting. The General Counsel of ACE Limited shall communicate to Mandatory Participants, in
writing or by video, its endorsement of the training and education program. 

 COOPERATION WITH THE SUPERINTENDENT

 33. ACE will maintain and provide to the Superintendent, upon the Superintendent’s request, complete underwriting files,
including correspondence and e-mails, and risk transfer analysis to the extent required by SSAP 62 relating to all reinsurance ceded or assumed by ACE. ACE will authorize its independent auditors and direct its internal auditors to make available to
the Superintendent upon request all workpapers of their auditors, including but not limited to all Schedules of Unadjusted Differences. 
 34. ACE will file all holding company transactions in a timely manner in compliance with Article 15 of the New York Insurance Law and Department Regulation 52. 
  

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 35. ACE will cooperate fully on all examinations and on all other regulatory requests and will respond to
all Department inquiries in a prompt, timely and complete manner and will provide appropriate staff during examinations in order to provide timely responses. Failure to respond to the Department in a timely manner, as required by this paragraph,
will constitute violations of this Assurance and the Insurance Law. Any issues that relate to the timeliness of the responses shall be reported to the Chief Financial Officer of ACE Limited. 
 36. The Chair of the ACE’s Audit Committee, if requested, will meet with the Superintendent and/or a designated official of the Superintendent on an
annual basis or more frequently as deemed necessary by the Superintendent. 
 COOPERATION WITH THE ATTORNEYS GENERAL 

37. ACE shall fully and promptly cooperate with the Attorneys General with regard to their Investigations, and related proceedings and actions, of any
other person, corporation or entity, including but not limited to ACE’s current and former employees, concerning the insurance industry. ACE shall use its best efforts to ensure that all its officers, directors, employees, and agents also fully
and promptly cooperate with the Attorneys General in their Investigations and related proceedings and actions. Cooperation shall include without limitation: (a) production voluntarily and without service of subpoena of any information and all
documents or other tangible evidence reasonably requested by any of the Attorneys General, and any compilations or summaries of information or data that any of the Attorneys General reasonably request be prepared; (b) without the necessity of a
subpoena, having ACE’s officers, directors, employees and agents attend any proceedings at which the presence of any such persons is 

  

 29 

 
requested by any of the Attorneys General and having such persons answer any and all inquiries that may be put by any of the Attorneys General (or any
deputies, assistants or agents of the Attorneys General) to any of them at any proceedings or otherwise (“proceedings” include but are not limited to any meetings, interviews, depositions, hearings, grand jury hearing, trial or other
proceedings); (c) fully, fairly and truthfully disclosing all information and producing all records and other evidence in its possession relevant to all inquiries reasonably made by any of the Attorneys General concerning any fraudulent or
criminal conduct whatsoever about which it has any knowledge or information; (d) in the event any document is withheld or redacted on grounds of privilege, work-product or other legal doctrine, a statement shall be submitted in writing by ACE
indicating: (i) the type of document; (ii) the date of the document; (iii) the author and recipient of the document; (iv) the general subject matter of the document; (v) the reason for withholding the document; and
(vi) the Bates number or range of the withheld document. Any of the Attorneys General may challenge such claim in any forum of their choice and may, without limitation, rely on all documents or communications theretofore produced or the
contents of which have been described by ACE, its officers, directors, employees, or agents; and (e) ACE shall not jeopardize the safety of any investigator or the confidentiality of any aspect of the investigation, including sharing or
disclosing evidence, documents, or other information with others during the course of the investigation, without the consent of the relevant Attorney General. Nothing herein shall prevent ACE from providing such evidence to other regulators, or as
otherwise required by law. 
 38. ACE shall comply fully with the terms of this Assurance. If ACE 

  

 30 

 
violates the terms of paragraph 37 in any material respect, as determined solely by any of the Attorney Generals: (a) each of the Attorney Generals may
pursue any action, criminal or civil, against any entity for any crime it has committed, as authorized by law, without limitation; (b) as to any criminal prosecution brought by the New York or Illinois Attorneys General for violation of law
committed within six years prior to the date of this Assurance or for any violation committed on or after the date of this Assurance, ACE shall waive any claim that such prosecution is time barred on grounds of speedy trial or speedy arraignment or
the statute of limitations. 
 OTHER PROVISIONS 
 39. ACE shall implement procedures and controls designed to provide full and complete disclosure to state insurance regulators. 
 40. ACE commits that it shall not seek or accept, directly or indirectly, indemnification pursuant to any insurance policy, with regard to any or all of the amounts payable pursuant to this Assurance. 
 41. None of the provisions of this Assurance shall apply to either ACE’s Life Insurance Operations or Connecticut’s Worker’s Compensation
Investigation. 
 42. The Attorneys General agree that any prior approval required under the terms of this Assurance shall not be
unreasonably withheld. 
 43. This Assurance is not intended to disqualify ACE, its subsidiaries, or any of its current employees from
engaging in any business in New York, Illinois, Connecticut or in any other jurisdiction. Nothing in this Assurance shall relieve ACE or its subsidiaries of obligations imposed by any applicable state insurance law or regulations or other applicable
law. 
  

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 44. This Assurance shall not confer any rights upon any persons or entities besides the Attorneys General
and ACE. 
 45. ACE shall maintain custody of, or make arrangements to have maintained, all documents and records related to this matter for
a period of not less than six years. 
 46. The Attorneys General may make such application as appropriate to enforce or interpret the
provisions of this Assurance, or in the alternative, maintain any action, either civil or criminal, for such other and further relief as the Attorneys General may determine is proper and necessary for the enforcement of this Assurance. If compliance
with any aspect of this Assurance proves impracticable, ACE reserves the right to request that the parties modify the Assurance accordingly. 
 47. In any application or in any such action, facsimile transmission of a copy of any papers to current counsel for ACE shall be good and sufficient service on ACE unless ACE designates, in a writing to the relevant Attorney General,
another person to receive service by facsimile transmission. 
 48. Facsimile transmission of a copy of this Assurance to counsel for ACE
shall be good and sufficient service on ACE. 
 49. This Assurance shall be governed by the laws of the State of New York without regard to
conflict of laws principles, except that with respect to enforcement actions taken by the Connecticut Attorney General or the Illinois Attorney General. Those actions will be governed by the laws of the state of the Attorney General bringing the
action without regard to choice of law principles. 
 50. This Assurance may be executed in counterparts. 
  

 32 

 Executed this 25th day of April, 2006. 
  

			
	 ELIOT SPITZER

	 Attorney General of the State of New York

		
	By:	 	 /s/ Illegible

	 Office of the New York State Attorney General
 120 Broadway, 23rd Floor
 New York, New York 10271

	
	
	 LISA MADIGAN

	 Attorney General of Illinois

	
	 /s/ Illegible

	 Office of the Attorney General
 State of
Illinois
 100 W. Randolph Street, 12th Floor
 Chicago, Illinois
60601

	
	 RICHARD BLUMENTHAL

	 Attorney General of the State of Connecticut

	
	 /s/ Illegible

	 Office of the Connecticut Attorney General
 55 Elm
Street
 Hartford, Connecticut 06141-0120

  

 33 

 Executed this 25th day of April, 2006. 
  

			
	 ACE, LIMITED.

		
	By:	 	 /s/ Robert Cusumano

	Robert Cusumano,
	General Counsel
	
	 ACE GROUP HOLDINGS, INC.

		
	By:	 	 /s/ Robert Cusumano

	Robert Cusumano,
	General Counsel

  

 34 

 EXHIBIT 1 

 APOLOGY 
 “As part of today’s settlement with the Attorneys General and the Superintendent, ACE acknowledges that certain of its employees violated both acceptable business practices and ACE’s own standards of conduct by engaging in
behavior that included improper bidding practices and certain ‘finite reinsurance’ transactions. ACE apologizes for this conduct. It has reformed its business practices and is satisfied that this behavior will not be repeated. 

In order to promote transparency and reduce the potential for conflicts of interest, ACE has supported legislation in the U.S. to eliminate contingent compensation
and through this agreement pledges to continue to do so.” 

 EXHIBIT 2 

 RELEASE 
 This RELEASE (the “Release”) is executed this      day of
                    , 2006 by RELEASOR (defined below) in favor of RELEASEE (defined below). 
 DEFINITIONS 
 “RELEASOR” refers to [fill in name                      ] and any of its affiliates, subsidiaries, associates,
general or limited partners or partnerships, predecessors, successors, or assigns, including, without limitation, any of their respective present or former officers, directors, trustees, employees, agents, attorneys, representatives and
shareholders, affiliates, associates, general or limited partners or partnerships, heirs, executors, administrators, predecessors, successors, assigns or insurers acting on behalf of RELEASOR. 
 “RELEASEE” refers to ACE Limited and any of its subsidiaries, associates, general or limited partners or partnerships, predecessors,
successors, or assigns, including, without limitation, any of their respective present or former officers, directors, trustees, employees, agents, attorneys, representatives and shareholders, affiliates, associates, general or limited partners or
partnerships, heirs, executors, administrators, predecessors, successors, assigns or insurers (collectively, “ACE”). 
 “ASSURANCE” refers to an Assurance of Discontinuance and Voluntary Compliance between ACE and the Attorney General of the State of New York, the Attorney General of the State of Illinois and the Attorney General of the State of
Connecticut (collectively “Attorneys General”) dated April 25, 2006 and an accompanying stipulation between ACE and the Superintendent of Insurance of the State of New York (“NYSI”) dated April 25, 2006, relating to
(i) investigation by each of the Attorneys General and NYSI related to ACE’s alleged use of contingent commission agreements or placement service agreements to steer business; and (ii) investigations by each of the Attorneys General
and NYSI related to ACE’s alleged participation in bid rigging schemes. 
 RELEASE 
 1. In consideration for the total payment of $             in accordance with the
terms of the ASSURANCE, RELEASOR does hereby fully release, waive and forever discharge RELEASEE from any and all claims, demands, debts, rights, causes of action or liabilities whatsoever, including known and unknown claims, now existing or
hereafter arising, in law, equity or otherwise, whether under state, federal or foreign statutory or common law, and whether possessed or asserted directly, indirectly, derivatively, representatively or in any other capacity (collectively,
“claims”), to the extent any such claims are based upon, arise out of or relate to, in whole or in part, (i) any of the allegations, acts, omissions, transactions, events, types of conduct or matters described in the ASSURANCE, or
were subject to investigation by any of the Attorneys General and NYSI as referenced in the ASSURANCE; (ii) any allegations, acts, omissions, transactions, events, types of conduct or matters that are the subject of In re Insurance Brokerage
Antitrust Litigation, MDL No. 1663, or the actions pending in the United States District Court for the District of New Jersey captioned In re: Insurance Brokerage Antitrust Litigation, Civ. No. 04-5184 (FSH), and In re
Employee Benefit Insurance Brokerage Antitrust Litigation. Civ. No. 05-1079 (FSH) or any related actions filed or transferred to the United States District Court for the District of New Jersey that are consolidated into either of the
preceding Civil Action dockets; or (iii) any allegations of bid-rigging or of the use of contingent commission agreements or placement service agreements to steer business arising from acts or conduct on or before the date of the ASSURANCE;
provided, however, that RELEASOR does not hereby release, waive, or discharge RELEASEE from any claims that are based upon, arise out of or relate to (a) the purchase or sale of 

  

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ACE’s securities; and (b) ACE’s Life Insurance Operations (as defined by the Assurance to which this Release is an exhibit);
(c) Connecticut’s Worker’s Compensation Investigation (as defined by the Assurance to which this Release is an exhibit). 
 2.
In the event that the total payment referred to in paragraph 1 is not made for any reason, then this RELEASE shall be deemed null and void, provided that any payments received by RELEASOR shall be credited to ACE in connection with any claims that
RELEASOR may assert against ACE, or that are asserted on behalf of RELEASOR or by a class of which RELEASOR is a member, against ACE. 
 3.
This RELEASE may not be changed orally and shall be governed by and interpreted in accordance with the internal laws of the State of New York, without giving effect to choice of law principles, except to the extent that federal law requires that
federal law governs. Any disputes arising out of or related to this RELEASE shall be subject to the exclusive jurisdiction of the Supreme Court of the State of New York or, to the extent federal jurisdiction exists, the United States District Court
for the Southern District of New York. 
 4. Releasor represents and warrants that the claims have not been sold, assigned or hypothecated in
whole or in part. 
 Dated: 
  

			
	RELEASOR:
		
	By:	 	
		
	Print Name:	 	
		
	 Title:
	 	

  

 39

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