Document:

exv10w49

Exhibit 10.49

FORM OF INDEMNIFICATION AGREEMENT

     This
Agreement entered into and effective this ___ day of
                    , 20___ (the
“Agreement”), by and between MagnaChip Semiconductor LLC, a Delaware limited liability
company (the “Company,”) and                      (the “Indemnitee”).

RECITALS

     WHEREAS, it is essential to the Company that it be able to retain and attract as Directors to serve
on its Board of Directors (“Directors”) the most capable persons available;

     WHEREAS, the Company desires to provide Indemnitee with specific contractual assurance of
Indemnitee’s rights to full indemnification against litigation risks and expenses (regardless,
among other things, of any amendment to or revocation of the Organizational Documents (as defined
below) or any change in the ownership of the Company or the composition of its Board of Directors);
and

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself
to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free from undue concern
that they will not be so indemnified;

     WHEREAS, the Company’s Fifth Amended and Restated Limited Liability Company Agreement (the
“LLC Agreement”) and/or the limited liability company agreements or similar governing
documents for any Subsidiary (collectively, the “Organizational Documents”) require it or
them to indemnify its or their Directors to the fullest extent permitted by law and
permit it or them to make other indemnification arrangements and agreements;

     WHEREAS, this Agreement is a supplement to and in furtherance of the LLC Agreement of the Company
and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder;

     WHEREAS, Indemnitee does not regard the protection available under the Company’s LLC Agreement and
insurance as adequate in the present circumstances, and may not be willing to serve as a Director
without adequate protection, and the Company desires Indemnitee to serve in such capacity.
Indemnitee is willing to serve, continue to serve and to take on additional service for or on
behalf of the Company on the condition that he be so indemnified;

     [WHEREAS, Indemnitee has certain
rights to indemnification and/or insurance provided by Avenue Capital Group which Indemnitee and Avenue Capital Group
intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with
the Company’s acknowledgement and agreement to the foregoing being a material condition to Indemnitee’s willingness to
serve on the Board.]

AGREEMENT

     NOW, THEREFORE, for good and valuable consideration, the mutual sufficiency of which is hereby
acknowledged, the Company and Indemnitee hereby agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Certain Definitions. Capitalized terms used and not otherwise defined herein
shall have the meanings given to them below:

 

 

     “Entity” shall mean any corporation, partnership, limited liability company, joint
venture, trust, foundation, association, organization or other legal entity.

     “Expenses” shall mean all fees, costs and expenses incurred by Indemnitee in
connection with any Proceeding (as defined below), including, without limitation, reasonable
attorneys’ fees, disbursements and retainers (including, without limitation, any such fees,
disbursements and retainers incurred by Indemnitee pursuant to Articles VI and VII of this
Agreement), fees and disbursements of expert witnesses, private investigators and professional
advisors (including, without limitation, accountants and investment bankers), court costs,
transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs,
telephone and fax transmission charges, postage, delivery services, secretarial services, and other
disbursements and expenses. Expenses also shall include Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its
equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the
amount of judgments or fines against Indemnitee.

     “Liabilities” shall mean judgments, damages, liabilities, losses, penalties (whether
civil, criminal or otherwise), foreign, federal, state and local taxes (including taxes payable by
Indemnitee as a result of the actual or deemed receipt of payments under this Agreement), fines
(including excise taxes and penalties assessed with respect to employee benefit plans) and amounts
paid in settlement and all interest, assessments and other charges paid or payable in connection
with or in respect of any of the foregoing.

     “Proceeding” shall mean any threatened, pending or completed claim, action, suit,
arbitration, alternate dispute resolution process, investigation, administrative hearing, appeal,
or any other proceeding, whether civil, criminal, administrative, arbitrative or investigative,
whether formal or informal, including a proceeding initiated by Indemnitee pursuant to Article VI
of this Agreement to enforce Indemnitee’s rights hereunder.

     “Status” describes the status of a person who is serving, has served or may be deemed
to have served (i) as a director, manager, partner, trustee, fiduciary, controlling person,
officer, employee, or agent of the Company or any Subsidiary of the Company, (ii) in any capacity
with respect to any employee benefit plan of the Company, or (iii) as a director, manager, partner,
trustee, fiduciary, controlling person, officer, employee, or agent of any other Entity at the
request of the Company.

     “Subsidiary” shall mean any corporation, partnership, limited liability company, joint
venture, trust or other Entity of which the Company owns (either directly or through or together
with another Subsidiary of the Company) either (i) a general partner, managing member or other
similar interest of such Entity or (ii) (A) 50% or more of the voting power of the voting capital
equity interests of such corporation, partnership, limited liability company, joint venture or
other Entity, or (B) 50% or more of the outstanding voting capital stock or other voting equity
interests of such corporation, partnership, limited liability company, joint venture or other
Entity.

 

 

ARTICLE II

SERVICES OF INDEMNITEE

     2.1 Services of Indemnitee. In consideration of the Company’s covenants and
commitments hereunder, Indemnitee agrees to serve or continue to serve as a Director of the Company.
However, this Agreement shall not impose any obligation on Indemnitee or the
Company to continue Indemnitee’s service to the Company beyond any period otherwise required
by law or by other agreements or commitments of the parties, if any.

ARTICLE III

AGREEMENT TO INDEMNIFY

     3.1 General.

          (a) To the fullest extent permitted by law, the Company shall indemnify, defend and hold
harmless the Indemnitee from any Liabilities and Expenses incurred by the Indemnitee by reason of
(or arising in part out of) any event or occurrence (a) related to Indemnitee’s Status or (b)
related to any act performed or omitted to be performed by the Indemnitee in connection with such
Status (collectively, “Indemnifiable Amounts”); provided, however, that if
the Liability or claim arises out of any action or inaction of an Indemnitee, indemnification under
this Section 3.1 shall be available to the Indemnitee only if the Liability or claim was not
primarily attributable to the Indemnitee’s willful misconduct or gross negligence or a material
violation of the LLC Agreement by Indemnitee; provided, further, however,
that indemnification under this Section 3.1 shall be recoverable only from the assets of the
Company (including insurance proceeds) and not from any assets of the members of the Company (other
than the Company itself).

          (b) Notwithstanding the foregoing, (i) the indemnification obligations of the Company under
Section 3.1(a) above shall be subject to the condition that it shall not have been determined in
accordance with Section 3.1(c) below, that Indemnitee would not be permitted to be indemnified
under applicable law, and (ii) the obligation of the Company to make an advance payment of Expenses
to Indemnitee pursuant to Section 3.1(a) above (an “Expense Advance”) shall be subject to
the condition that if, when and to the extent that it is determined in accordance with Section
3.1(c) below that Indemnitee would not be permitted to be indemnified under applicable law, the
Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all Expense Advance theretofore paid; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court of competent
jurisdiction to secure a determination that he or she should be indemnified under applicable law,
any determination made by the Reviewing Party that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not be required to
reimburse the Company for any Expense Advance until a final judicial determination is made with
respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee’s obligation to reimburse the Company for any Expense Advance shall be unsecured and no
interest shall be charged thereon. For purposes of this Agreement, a “Reviewing Party”
shall mean (x) any appropriate person or body consisting of a Director or Directors or any other
person or body appointed by the Directors who is not a party to the particular claim for which
Indemnitee is seeking indemnification or (y) independent legal counsel.

 

 

          (c) The Reviewing Party shall determine whether or not the Indemnitee would be permitted to be
indemnified under applicable law and any such determination shall be made in writing, specifying in
reasonable detail the reasons therefore, and delivered to Indemnitee. If there has been no
determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee would not
be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the
right to commence litigation in any court in the State of Delaware having subject matter
jurisdiction thereof and in which venue is proper seeking an initial determination by the court or
challenging any such determination by
the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and
the Company hereby consents to service of process and to appear in any such proceeding.

     3.2 Insurance. The Company shall pay for standard director and officer liability
insurance covering liability of the Indemnitee for performance of his or her duties in such
amounts, and with the scope of such coverage to be customary for a Company of like size with
similar operations. If, at the time of the receipt by the Company of a notice of a claim from
Indemnitee pursuant to this Agreement, the Company has liability insurance in effect which may
cover such claim, the Company shall use commercially reasonably efforts to provide prompt written
notice of the commencement of such claim to such insurers in accordance with the procedures set
forth in each of such policies. The Company shall thereafter use commercially reasonable efforts to
cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such claim
in accordance with the terms of such policies.

     3.3 Exculpation. The Indemnitee shall not be liable, in damages or otherwise, to the
Company or to any member of the Company for any loss that arises out of any act performed or
omitted to be performed by him or her pursuant to the authority granted by the Organizational
Documents except for any losses primarily attributable to the Indemnitee’s willful misconduct, bad
faith, recklessness or gross negligence.

     3.4 Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that the Indemnitee is required to be a witness by reason of
Indemnitee’s Status in any Proceeding to which the Indemnitee is not a party, he or she shall be
indemnified against all Expenses actually incurred by him or her or on his or her behalf in
connection therewith.

     3.5 Conclusive Presumption Regarding Standard of Care. In making any determination
required to be made under law with respect to entitlement to indemnification hereunder, the person,
persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement , and the Company shall have the burden of proof to overcome
that presumption in connection with the making by any person, persons or entity, including any
court or arbitrator, of any determination contrary to that presumption.

     3.6 Procedure for Payment of Indemnifiable Amounts. Indemnitee shall submit to the
Company a written request specifying the Indemnifiable Amounts for which Indemnitee seeks payment
under this Article III or Article IV of this Agreement and the basis for the claim. The Company
shall pay such Indemnifiable Amounts to Indemnitee as soon as practicable but in any event no later
than twenty (20) calendar days of receipt of the request. At the request of the Company,
Indemnitee shall furnish such documentation and information as are reasonably available to
Indemnitee and necessary to establish that Indemnitee is entitled to indemnification

 

 

hereunder.
Notwithstanding the foregoing, the failure or delay in providing such request and other information
shall not affect Indemnitee’s right to indemnification or advancement of Expenses hereunder unless,
and then only to the extent that, the Company is materially prejudiced thereby.

     3.7 Change in Law. To the extent that a change in law (whether by statute or judicial
decision) shall permit broader indemnification or advancement of expenses than is provided under
the terms of the Organizational Documents and this Agreement, Indemnitee
shall be entitled to such broader indemnification and advancements, and this Agreement shall
be deemed to be amended to such extent.

ARTICLE IV

PARTIAL INDEMNIFICATION

     4.1 Contribution.

     (a) Without diminishing Indemnitee’s rights under Article III hereof, and whether or not the
indemnification provided in Article III hereof is available, in respect of any Proceeding in which
the Company is jointly liable with the Indemnitee (or would be if joined in such Proceeding), the
Company shall (without duplication of amounts paid by the Company under Article III) pay, or cause
to be paid, in the first instance, the entire amount of any judgment or settlement of such
Proceedings equal to the amount of Expenses and Liabilities actually incurred and paid or payable
by the Indemnitee in proportion to the relative benefits received by the Company and all officers,
Directors or employees of the Company, other than the Indemnitee, who are jointly liable with the
Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and the
Indemnitee, on the other hand. The Company shall not enter into any settlement of any Proceedings
in which the Company is jointly liable with the Indemnitee (or would be if joined in such
Proceeding) unless such settlement provides for a full and final release of all claims asserted
against the Indemnitee.

     (b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph or Article III hereof, if, for any reason, the Indemnitee shall elect or be required
to pay all or any portion of any judgment or settlement in any Proceeding in which the Company is
jointly liable with the Indemnitee (or would be if joined in such Proceeding), the Company shall
(without duplication with amounts paid the Company under Article III) contribute, or cause to be
contributed, to the amount of Expenses and Liabilities actually and reasonably incurred and paid or
payable by the Indemnitee in proportion to the relative benefits received by the Company and all
officers, Directors or employees of the Company, other than the Indemnitee, who are jointly liable
with the Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand,
and the Indemnitee, on the other hand, from the transaction from which such action, suit or
proceeding arose; provided, however, that the proportion determined on the basis of relative
benefit may, to the extent necessary to conform to law, be further adjusted by reference to the
relative fault of the Company and all officers, Directors or employees of the Company other than the
Indemnitee who are jointly liable with the Indemnitee (or would be if joined in such Proceeding),
on the one hand, and the Indemnitee, on the other hand, in connection with the events that resulted
in such Expenses and Liabilities, as well as any other equitable considerations which the law may
require to be considered.

 

 

     (c) The Company hereby agrees to fully indemnify and hold the Indemnitee harmless from any
claims for contribution which may be brought by reason of the Indemnitee’s Status by officers,
Directors or employees of the Company, other than the Indemnitee, who may be jointly liable with the
Company.

     (d) To the fullest extent permissible under applicable law, if the indemnification provided
for in this Agreement is unavailable to the Indemnitee for any reason whatsoever, the Company, in
lieu of indemnifying the Indemnitee, shall contribute to the amount incurred by the Indemnitee,
whether for Liabilities and/or for Expenses, in connection with any claim
relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair
and reasonable in light of all of the circumstances of such Proceeding as determined in a final
non-appealable judgment reached by a court of competent jurisdiction in order to reflect (i) the
relative benefits received by the Company and the Indemnitee as a result of the event(s) and/or
transactions(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and
its Directors, officers, employees and agents) and the Indemnitee in connection with such event(s)
and/or transactions(s).

     4.2 Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of Indemnitee’s Status, a party to and is successful, on
the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against all Expenses
actually incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee
is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to
one or more but less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with each successfully resolved claim, issue or matter. For purposes of this
Agreement, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or
without prejudice, by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such claim, issue or matter.

     4.3 Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not create a
presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

ARTICLE V

ADVANCEMENT OF EXPENSES

     5.1 Agreement to Advance Expenses; Undertaking. Subject to Section 6.5 hereof, the
Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any
Proceeding in which Indemnitee is involved by reason of such Indemnitee’s Status or an act
performed or omitted to be performed by such Indemnitee in connection with such Status, within
twenty (20) calendar days after the receipt by the Company of a written statement from

 

 

Indemnitee
requesting such advance or advances from time to time, whether prior to or after final disposition
of such Proceeding.

     5.2 Procedure for Advance Payment of Expenses. Indemnitee shall submit to the Company
a written request specifying the Expenses for which Indemnitee seeks an advancement under this
Article V, together with documentation evidencing that Indemnitee has incurred such Expenses.
Payment of Expenses, if indemnifiable, under this Article V shall be made no later than twenty (20)
calendar days after the Company’s receipt of such request. Notwithstanding the foregoing, the
failure or delay in providing such request or other information shall not affect Indemnitee’s right
to indemnification or advancement of
Expenses hereunder unless, and then only to the extent that, the Company is materially
prejudiced thereby.

ARTICLE VI

REMEDIES OF INDEMNITEE

     6.1 Right to Petition Court. In the event that Indemnitee makes a request for payment
of Indemnifiable Amounts under Article III above or a request for an advancement of Expenses under
Article V above and the Company fails to make such payment or advancement in a timely manner
pursuant to the terms of this Agreement, without limitation as to remedy, Indemnitee may petition
any court that has jurisdiction to enforce the Company’s obligations under this Agreement.

     6.2 Burden of Proof. In any judicial proceeding brought under Section 6.1, the
Company shall have the burden of proving that Indemnitee is not entitled to Expense Advancements
and/or payments of Indemnifiable Amounts hereunder.

     6.3 Expenses. The Company agrees to reimburse Indemnitee in full for any Expenses
incurred by Indemnitee in connection with investigating, preparing for, litigating, defending or
settling any action brought by Indemnitee under Section 6.1 above, or in connection with any claim
or counterclaim brought by the Company in connection therewith, provided that the Company shall
have no obligation hereunder in the event that it has been finally adjudicated by a court of
competent jurisdiction that Indemnitee is not entitled to payment of Expenses hereunder with
respect to such action.

     6.4 Failure to Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of the payment of Indemnifiable Amounts or the
advancement of Expenses under this Agreement shall not be a defense in any action brought under
Section 6.1, and shall not create a presumption that such payment or advancement is not
permissible.

     6.5 Indemnitee as Plaintiff. Except as provided in Sections 6.1 and 6.3 of this
Agreement and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable
Amounts or advancement of Expenses with respect to any Proceeding brought by Indemnitee against the
Company, any Entity which it controls, any manager, director or officer thereof, or any third
party, unless the Company has consented to the initiation of such Proceeding. This Section shall
not apply to (a) affirmative defenses asserted by Indemnitee or any counterclaims by Indemnitee
which are resolved successfully in an action brought against Indemnitee or (b) a Proceeding
instituted by Indemnitee to enforce or interpret this Agreement.

 

 

ARTICLE VII

DEFENSE OF THE UNDERLYING PROCEEDING

     7.1 Notice by Indemnitee. Indemnitee agrees to notify the Company promptly upon being
served with any summons, citation, subpoena, complaint, indictment, information, or other document
relating to any Proceeding which may result in the payment of Indemnifiable Amounts or the
advancement of Expenses hereunder; provided, however, that the failure to give any
such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any
right of Indemnitee, to receive payments of Indemnifiable
Amounts or advancements of Expenses unless, and then only to the extent of, the Company’s
ability to defend in such Proceeding is materially prejudiced thereby.

     7.2 Defense by Company. Subject to the provisions of the last sentence of this
Section 7.2 and of Section 7.3 below, the Company shall have the right to defend Indemnitee in any
Proceeding for which the Company becomes obligated hereunder to pay the Indemnitee’s Expenses;
provided, however that the Company shall notify Indemnitee of any such decision to
defend within ten (10) calendar days of receipt of notice of any such Proceeding under Section 7.1
above. The Company shall not, without the prior written consent of Indemnitee, consent to the
entry of any judgment against Indemnitee or enter into any settlement or compromise which (a)
includes an admission of fault of Indemnitee or (b) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section 7.2
shall not apply to a Proceeding brought by Indemnitee under Article VI above.

     7.3 Indemnitee’s Right to Counsel. Notwithstanding the provisions of Section 7.2
above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Status, (a)
Indemnitee reasonably concludes that he or she may have separate defenses or counterclaims to
assert with respect to any issue which may not be consistent with the position of other defendants
in such Proceeding, (b) a conflict of interest or potential conflict of interest exists between
Indemnitee and the Company, or (c) if the Company fails to assume the defense of such proceeding in
a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of
Indemnitee’s choice at the expense of the Company. In addition, if the Company fails to comply
with any of its obligations under this Agreement or in the event that the Company or any other
person takes any action to declare this Agreement void or unenforceable, or institutes any action,
suit or proceeding to deny or to recover from Indemnitee the benefits intended to be provided to
Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, at
the expense of the Company, to represent Indemnitee in connection with any such matter.

ARTICLE VIII

MISCELLANEOUS

     8.1 Non-Exclusivity; Survival of Rights; Primary of Indemnification; Subrogation.

     (a) The right to payment of Indemnifiable Amounts and advancement of Expenses provided by this
Agreement shall be in addition to, but not exclusive of, any other rights to which Indemnitee may
at any time be entitled under applicable law, the Certificate of Formation, the LLC Agreement, any
agreement, a vote of members, a resolution of Directors or otherwise, of the Company. No amendment,
alteration or repeal of this Agreement or of any provision

 

 

hereof shall limit or restrict any right
of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in
his Corporate Status prior to such amendment, alteration or repeal. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every other right and
remedy shall be cumulative and in addition to every other right and remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other right or remedy.

     (b) [The Company hereby
acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided
by Avenue Capital Group and certain of its affiliates (collectively, the “Fund Indemnitors”).  The Company hereby
agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any
obligation of the Fund Indemnitors to advance Expenses or to pay Indemnifiable Amounts are secondary), (ii) that it
shall be required to advance the full amount of Expenses incurred by Indemnitee and shall be liable for the full
amount of all Expenses and Indemnifiable Amounts to the extent legally permitted and as required by the terms of this
Agreement and the Certificate of Formation or LLC Agreement of the Company (or any other agreement between the Company
and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii)  that it
irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors
for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no
advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has
sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of
contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of
Indemnitee against the Company.  The Company and Indemnitee agree that the Fund Indemnitors are express third party
beneficiaries of the terms of this Section 8.1(b).]

     (c) Except as provided in paragraph (b) above, in the event of any payment of Indemnifiable Amounts or Expenses under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee (other than against the Fund Indemnitors) against other persons, and Indemnitee shall take, at the request of the Company,
commercially reasonable action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.

     (d) Except as provided in paragraph (b) above, the Company shall not be liable under this Agreement to make any payment of Indemnifiable
Amounts hereunder if and to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement or otherwise.

     (e) Except as provided in paragraph (b) above, the Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise.

     8.2 Notices. All notices, requests, demands, claims, and other communications
hereunder shall be in writing and shall be delivered by certified or registered mail (first class
postage prepaid), guaranteed overnight delivery, or facsimile transmission if such transmission is
confirmed by delivery by certified or registered mail (first class postage prepaid) or guaranteed
overnight delivery, (a) to the Indemnitee at the address and facsimile number set forth on the
signature page hereto (or to such other address or facsimile number which the Indemnitee shall
designate in writing to the Company), or (b) to the Company at the following address and facsimile
number (or to such other addresses or facsimile numbers which such party shall designate in writing
to the other party):

MagnaChip Semiconductor LLC

c/o MagnaChip Semiconductor Ltd.

891 Daechi-dong, Gangnam-gu

Seoul 135-738 Korea

Attn: General Counsel

Fax: 82-2-6903-3898

     8.3 Entire Agreement. This Agreement contains the entire understanding of the parties
in respect of the subject matter hereof and supersedes all prior agreements and understandings
(oral or written) between or among the parties with respect to such subject matter;
provided, however, it is agreed that the provisions contained in this Agreement are
a supplement to, and not a substitute for, any provisions regarding the same subject matter
contained in the Organizational Documents and any employments or similar agreement between the
parties.

 

 

     8.4 Amendment; Waiver. This Agreement may not be modified, amended, supplemented,
canceled or discharged, except by written instrument executed by the Company and Indemnitee. No
failure to exercise, and no delay in exercising, any right, power or privilege under this Agreement
shall operate as a waiver, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude the exercise of any other right, power or privilege. No waiver of any
breach of any provision shall be deemed to be a waiver of any preceding or succeeding breach of the
same or any other provision, nor shall any waiver be implied from any course of dealing among the
parties. No extension of time
for performance of any obligations or other acts hereunder or under any other agreement shall
be deemed to be an extension of the time for performance of any other obligations or any other
acts.

     8.5 Binding Effect; Assignment. The rights and obligations of this Agreement shall
bind and inure to the benefit of the parties and their respective successors and assigns. Nothing
expressed or implied herein or therein shall be construed to give any person other than the Company
or an assignee or designee of the Company any legal or equitable rights hereunder. The Company
shall have the right to assign, in whole or in part and from time to time the rights of the Company
set forth in this Agreement upon a sale of the Company, including a sale of all or substantially
all the assets of the Company.

     8.6 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one and the same
instrument.

     8.7 Interpretation. When a reference is made in this Agreement to an article,
section, paragraph, clause, schedule or exhibit, such reference shall be deemed to be to this
Agreement unless otherwise indicated. The headings contained herein are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the
words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation.”

     8.8 Governing Law; Interpretation. This Agreement shall be construed in accordance
with and governed for all purposes exclusively by the internal substantive laws of the State of
Delaware applicable to contracts executed and to be wholly performed within such State.

     8.9 Jurisdiction and Waiver of Jury Trial.

     (a) ANY SUIT, ACTION OR PROCEEDING AGAINST ANY PARTY ARISING OUT OF, OR WITH RESPECT TO, THIS
AGREEMENT OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT THEREOF SHALL BE BROUGHT EXCLUSIVELY IN
THE COURT OF CHANCERY OF THE STATE OF DELAWARE AND THE PARTIES HERETO ACCEPT THE EXCLUSIVE
JURISDICTION OF SUCH COURT FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING.

     (b) IN ADDITION, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY JUDGMENT ENTERED BY ANY COURT IN
RESPECT THEREOF BROUGHT IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE AND HEREBY FURTHER

 

 

IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUIT, ACTION OR PROCEEDINGS BROUGHT IN THE COURT OF CHANCERY
OF THE STATE OF DELAWARE HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     (c) EACH PARTY HEREBY WAIVES THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY FOR ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR
ARISING OUT OF OR RELATED TO THIS AGREEMENT IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF
ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH
PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH PARTY AGREES THAT
ANY SUCH CLAIM OR CAUSE OF ACTION WILL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN
WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION
HEREOF. THIS WAIVER WILL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.

     8.10 Costs of Enforcement. The prevailing party shall be entitled to recover all
costs and expenses incurred to enforce this Agreement from the non-prevailing party, including
without limitation, all attorneys’ fees and other costs arising from any action or proceeding to
enforce any provision or provisions of this Agreement.

     8.11 Arm’s Length Negotiations; Drafting. Each party herein expressly represents and
warrants to all other parties hereto that before executing this Agreement, said party has fully
informed itself of the terms, contents, conditions and effects of this Agreement; said party has
relied solely and completely upon its own judgment in executing this Agreement; said party has had
the opportunity to seek and has obtained the advice of counsel before executing this Agreement;
said party has acted voluntarily and of its own free will in executing this Agreement; said party
is not acting under duress, whether economic or physical, in executing this Agreement; and this
Agreement are the result of arm’s length negotiations conducted by and among the parties and their
respective counsel. This Agreement shall be deemed drafted jointly by the parties and nothing
shall be construed against one party or another as the drafting party.

     8.12 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law. In the event that
any provision of this Agreement shall be determined by any court of competent jurisdiction to be
unenforceable by reason of its being extended over too great a period of time or too large a
geographic area or over too great a range of activities, it shall be interpreted to extend only
over the maximum lesser period of time, geographic area, or range of activities as to which it may
be enforceable. Each of the covenants herein shall be deemed a separate and severable covenant.
It is the desire and intent of the parties that the provisions of this Agreement shall be enforced
to the fullest extent permissible under applicable law. Accordingly, a court of competent
jurisdiction is directed to modify any provision to the extent necessary to render such provision
enforceable.

 

 

     8.13 Survival. This Agreement shall continue in force for the benefit of the
Indemnitee and such heirs, personal representatives, executors and administrators after Indemnitee
has ceased to have Status. All agreements and obligations of the Company contained herein shall
continue during the period Indemnitee is an officer or Director of the Company (or is or was serving
at the request of the Company as a manager, director, officer, employee or agent of any Subsidiary)
and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any
proceeding commenced under Article VI hereof) by reason of his Status, whether or not Indemnitee is
acting or serving in any such capacity at
the time any liability or expense is incurred for which indemnification can be provided under
this Agreement. This Agreement shall continue in effect regardless of whether Indemnitee continues
to serve as an officer or Director of the Company or any Subsidiary at the Company’s request.

 

 

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	MAGNACHIP SEMICONDUCTOR LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INDEMNITEEexv10w1

EXHIBIT 10.1

EXECUTION VERSION

 

$280,000,000

3-YEAR CREDIT AGREEMENT

among

ASPEN INSURANCE HOLDINGS LIMITED,

The Subsidiary Borrowers from Time to Time Parties Hereto,

The Several Lenders from Time to Time Parties Hereto,

THE BANK OF NEW YORK MELLON,

as Collateral Agent,

CITIBANK, N.A.,

as Syndication Agent,

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

DEUTSCHE BANK SECURITIES INC., AND

THE BANK OF NEW YORK MELLON,

as Co-Documentation Agents,

and

BARCLAYS BANK PLC,

as Administrative Agent

Dated as of July 30, 2010

 

BARCLAYS CAPITAL and CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arrangers and Joint Bookrunners

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	SECTION 1 DEFINITIONS
	 	 	6	 
	 
	 	 	 	 
	1.1 Defined Terms
	 	 	6	 
	1.2 Other Definitional Provisions
	 	 	21	 
	1.3 Exchange Rates
	 	 	22	 
	1.4 Changes in GAAP
	 	 	22	 
	 
	 	 	 	 
	SECTION 2 AMOUNT AND TERMS OF COMMITMENTS
	 	 	23	 
	 
	 	 	 	 
	2.1 Revolving Commitments
	 	 	23	 
	2.2 Procedure for Borrowing
	 	 	24	 
	2.3 Fees
	 	 	24	 
	2.4 Termination or Reduction of Commitments
	 	 	25	 
	2.5 Optional and Mandatory Prepayments
	 	 	25	 
	2.6 Conversion and Continuation Options
	 	 	25	 
	2.7 Limitations on Eurodollar Tranches
	 	 	26	 
	2.8 Interest Rates and Payment Dates
	 	 	26	 
	2.9 Computation of Interest and Fees
	 	 	26	 
	2.10 Inability to Determine Interest Rate
	 	 	27	 
	2.11 Pro Rata Treatment and Payments
	 	 	27	 
	2.12 Requirements of Law; Eurocurrency Liabilities
	 	 	28	 
	2.13 Taxes
	 	 	29	 
	2.14 Indemnity
	 	 	31	 
	2.15 Change of Lending Office
	 	 	32	 
	2.16 Replacement of Lenders
	 	 	32	 
	2.17 Defaulting Lenders
	 	 	32	 
	 
	 	 	 	 
	SECTION 3 LETTERS OF CREDIT
	 	 	34	 
	 
	 	 	 	 
	3.1 L/C Commitment
	 	 	34	 
	3.2 Procedure for Issuance of Letter of Credit
	 	 	35	 
	3.3 Fees and Other Charges
	 	 	35	 
	3.4 L/C Participations
	 	 	36	 
	3.5 Reimbursement Obligation of the Borrowers
	 	 	37	 
	3.6 Obligations Absolute
	 	 	37	 
	3.7 Letter of Credit Payments
	 	 	38	 
	3.8 Several Letter of Credit
	 	 	38	 
	3.9 Applications
	 	 	39	 
	3.10 Additional Issuing Lenders
	 	 	39	 
	3.11 Reporting
	 	 	39	 
	 
	 	 	 	 
	SECTION 4 REPRESENTATIONS AND WARRANTIES
	 	 	39	 
	 
	 	 	 	 
	4.1 Financial Conditions
	 	 	39	 
	4.2 No Change
	 	 	40	 
	4.3 Existence; Compliance with Law
	 	 	40	 

i

 

	 	 	 	 	 
	 	 	Page	 
	4.4 Power; Authorization; Enforceable Obligations
	 	 	40	 
	4.5 No Legal Bar
	 	 	41	 
	4.6 Litigation
	 	 	41	 
	4.7 No Default
	 	 	41	 
	4.8 Ownership of Property; Liens
	 	 	41	 
	4.9 Taxes
	 	 	41	 
	4.10 Federal Regulations
	 	 	41	 
	4.11 ERISA
	 	 	42	 
	4.12 Investment Company Act
	 	 	42	 
	4.13 Subsidiaries
	 	 	42	 
	4.14 Use of Proceeds
	 	 	42	 
	4.15 Environmental Matters
	 	 	42	 
	4.16 Accuracy of Information, etc
	 	 	43	 
	 
	 	 	 	 
	SECTION 5 CONDITIONS PRECEDENT
	 	 	43	 
	 
	 	 	 	 
	5.1 Conditions to Initial Extensions of Credit
	 	 	43	 
	5.2 Conditions to Secured Letters of Credit
	 	 	44	 
	5.3 Conditions to Each Extension of Credit
	 	 	45	 
	5.4 Additional Condition Precedent to Certain Borrowings
	 	 	45	 
	5.5 Conditions for Additional Subsidiary Borrowers
	 	 	46	 
	 
	 	 	 	 
	SECTION 6 AFFIRMATIVE COVENANTS
	 	 	46	 
	 
	 	 	 	 
	6.1 Financial Statements
	 	 	46	 
	6.2 Certificates; Other Information
	 	 	47	 
	6.3 Payment of Obligations
	 	 	48	 
	6.4 Maintenance of Existence; Compliance
	 	 	48	 
	6.5 Maintenance of Property; Insurance
	 	 	48	 
	6.6 Inspection of Property; Books and Records; Discussions
	 	 	48	 
	6.7 Notices
	 	 	49	 
	6.8 Environmental Laws
	 	 	49	 
	6.9 Hybrid Capital
	 	 	49	 
	 
	 	 	 	 
	SECTION 7 NEGATIVE COVENANTS
	 	 	49	 
	 
	 	 	 	 
	7.1 Financial Condition Covenants
	 	 	49	 
	7.2 Indebtedness
	 	 	49	 
	7.3 Disposition of Property
	 	 	51	 
	7.4 Restricted Payments
	 	 	51	 
	7.5 Investments
	 	 	52	 
	7.6 Liens
	 	 	52	 
	7.7 Clauses Restricting Subsidiary Distributions
	 	 	54	 
	7.8 Business
	 	 	54	 
	7.9 Rating
	 	 	54	 
	7.10 Consolidations, Amalgamations, Mergers and Liquidations
	 	 	54	 
	7.11 Transactions with Affiliates
	 	 	55	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 8 EVENTS OF DEFAULT
	 	 	55	 
	 
	 	 	 	 
	SECTION 9 THE AGENTS
	 	 	57	 
	 
	 	 	 	 
	9.1 Appointment
	 	 	57	 
	9.2 Delegation of Duties
	 	 	58	 
	9.3 Exculpatory Provisions
	 	 	58	 
	9.4 Reliance
	 	 	58	 
	9.5 Notice of Default
	 	 	59	 
	9.6 Non-Reliance on Agents and Other Lenders
	 	 	60	 
	9.7 Indemnification
	 	 	60	 
	9.8 Agent in Its Individual Capacity
	 	 	61	 
	9.9 Successor Administrative Agent and Collateral Agent
	 	 	61	 
	9.10 Security Document Matters
	 	 	62	 
	9.11 Other Agents
	 	 	62	 
	 
	 	 	 	 
	SECTION 10 GUARANTEE
	 	 	62	 
	 
	 	 	 	 
	10.1 Guarantee
	 	 	62	 
	10.2 No Subrogation
	 	 	63	 
	10.3 Amendments, etc. with respect to the Obligations
	 	 	63	 
	10.4 Guarantee Absolute and Unconditional
	 	 	64	 
	10.5 Reinstatement
	 	 	64	 
	10.6 Payments
	 	 	64	 
	10.7 Independent Obligations
	 	 	64	 
	 
	 	 	 	 
	SECTION 11 MISCELLANEOUS
	 	 	65	 
	 
	 	 	 	 
	11.1 Amendments and Waivers
	 	 	65	 
	11.2 Notices
	 	 	66	 
	11.3 No Waiver; Cumulative Remedies
	 	 	67	 
	11.4 Survival of Representations and Warranties
	 	 	67	 
	11.5 Payment of Expenses and Taxes
	 	 	67	 
	11.6 Successors and Assigns; Participations and Assignments
	 	 	68	 
	11.7 Adjustments
	 	 	71	 
	11.8 Set-off
	 	 	71	 
	11.9 Counterparts
	 	 	71	 
	11.10 Severability
	 	 	71	 
	11.11 Integration
	 	 	71	 
	11.12 GOVERNING LAW
	 	 	72	 
	11.13 Submission To Jurisdiction; Waivers
	 	 	72	 
	11.14 Releases of Liens
	 	 	72	 
	11.15 Confidentiality
	 	 	73	 
	11.16 Several Obligations of Borrowers; Company as Agent of Borrowers
	 	 	73	 
	11.17 Termination of Terminating Credit Agreements
	 	 	73	 
	11.18
WAIVERS OF JURY TRIAL
	 	 	74	 
	11.19 USA Patriot Act
	 	 	74	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 12 THE BORROWER REPRESNTATIVE
	 	 	74	 
	 
	 	 	 	 
	12.1 Appointment; Nature of Relationship
	 	 	74	 
	12.2 Powers
	 	 	74	 
	12.3 Employment of Agents
	 	 	74	 
	12.4 Notices
	 	 	74	 
	12.5 Successor Borrower Representative
	 	 	74	 
	12.6 Execution of Loan Documents; Borrowing Base Certificate
	 	 	74	 

iv

 

	 	 	 

	ANNEX:
	 	 
	 
	 	 
	A    Pricing Grid
	 	 
	 
	 	 
	SCHEDULES:
	 	 
	 
	 	 
	1.1

	 	Commitments
	4.13

	 	Subsidiaries
	7.2(b)(iv)

	 	Existing Indebtedness
	7.5

	 	Investments
	7.6

	 	Existing Liens
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	A

	 	Form of Compliance Certificate
	B-1

	 	Form of Closing Certificate of the Company
	B-2

	 	Form of Closing Certificate of each Subsidiary Borrower
	C

	 	Form of Assignment and Assumption
	D-1

	 	Form of Legal Opinion of Mayer Brown LLP
	D-2

	 	Form of Legal Opinion of Appleby Global
	E-1

	 	Form of Exemption Certificate (Non-Partnerships)
	E-2

	 	Form of Exemption Certificate (Partnerships)
	F

	 	Form of Company Note
	G

	 	Form of Subsidiary Borrower Note
	H

	 	Form of Notice of Conversion/Continuation
	I

	 	Form of Subsidiary Borrower Agreement
	J

	 	Form of Commitment Increase Supplement
	K

	 	Form of New Lender Supplement
	L

	 	Form of Several Letter of Credit

v

 

     CREDIT AGREEMENT (this “Agreement”), dated as of July 30, 2010, among ASPEN INSURANCE
HOLDINGS LIMITED, a Bermuda exempted limited liability company (the “Company”), the
Subsidiary Borrowers (as defined below; together with the Company, collectively, the
“Borrowers” and individually, a “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”),
CITIBANK, N.A., as syndication agent (in such capacity, the “Syndication Agent”), CREDIT
AGRICOLE CORPORATE AND INVESTMENT BANK, DEUTSCHE BANK SECURITIES INC. AND THE BANK OF NEW YORK MELLON, as co-documentation agents (in such
capacities, each a “Co-Documentation Agent”), THE BANK OF NEW YORK MELLON, as collateral
agent, and BARCLAYS BANK PLC, as administrative agent.

          The parties hereto hereby agree as follows:

SECTION 1 DEFINITIONS

          1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective
meanings set forth in this Section 1.1.

          “ABR”: for any day, a rate per annum (rounded upwards, if necessary, to the next
1/100 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the one-month Eurodollar Rate
plus 1.0%. Any change in the ABR due to a change in the Prime Rate, the Federal Funds
Effective Rate or the Eurodollar Rate shall be effective as of the opening of business on the
effective day of such change in the applicable rate. If for any reason any rate described in
clause (a), (b) or (c) above is not available, then the ABR shall be determined based upon one of
the other rates set forth above.

          “ABR Loans”: Loans the rate of interest applicable to which is based upon the ABR.

          “Account”: as defined in the Security Agreement.

          “Administrative Agent”: Barclays Bank PLC, as the administrative agent for the
Lenders under this Agreement and the other Loan Documents, together with any of its successors.

          “Advance Rate”: for any category of cash or obligation or investment specified below
in the column entitled “Cash and Eligible Securities” (other than cash, the “Eligible
Securities”), the percentage set forth opposite such category of cash or Eligible Securities
below in the column entitled “Advance Rate” and, in each case, subject to the original term to
maturity criteria set forth therein:

	 	 	 	 	 
	Cash and Eligible Securities	 	Advance Rate	 
	Cash Denominated in Dollars
	 	 	100	%
	 
	 	 	 	 
	U.S. Government Bills, Notes and U.S. Government Guaranteed or
Sponsored Agency Securities (including FNMA and FHLMC)
	 	 	 	 
	Maturity 5 years or less
	 	 	90	%
	Maturity 10 years or less
	 	 	85	%
	Maturity over 10 years
	 	 	80	%
	 
	Non-U.S. Government and Supranational Organization
	 	 	 	 
	Obligations (Rating Aa3/AA- or better)
	 	 	 	 
	Maturity 5 years or less
	 	 	85	%

6

 

	 	 	 	 	 
	Cash and Eligible Securities	 	Advance Rate	 
	Maturity 10 years or less
	 	 	80	%
	Maturity over 10 years
	 	 	75	%
	 
	 	 	 	 
	U.S. Non-Financial Corporate Bonds (Rating Aa3/AA- or better, Non-convertible)
	 	 	 	 
	Maturity 5 years or less
	 	 	85	%
	Maturity 10 years or less
	 	 	80	%
	Maturity over 10 years
	 	 	75	%
	 
	 	 	 	 
	All other securities
	 	 	0	%

Notwithstanding the foregoing, (a) the advance rate on securities issued by the Federal Home Loan
Mortgage Corporation (“FHLMC” also known as “Freddie Mac”) and the Federal National
Mortgage Association (“FNMA” also known as “Fannie Mae”) shall be decreased by an
additional 7.5% to the extent that either FHLMC or FNMA shall no longer be under the
conservatorship of the Federal Housing Finance Agency and (b) the advance rate on the marketable
securities set forth above shall be decreased by an additional 10.0% to the extent that such
marketable securities are held in a currency other than the currency of the applicable Secured
Letter of Credit.

          “Affiliate”: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 20%
or more of the securities having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.

          “Agents”: the collective reference to the Syndication Agent, the Administrative Agent,
the Co-Documentation Agents and the Collateral Agent.

          “Aggregate Exposure”: with respect to any Lender at any time, an amount equal to the
amount of such Lender’s Commitment then in effect or, if the Commitments have been terminated, the
amount of such Lender’s Extensions of Credit then outstanding.

          “Aggregate Exposure Percentage”: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time; provided that when a Defaulting Lender shall exist,
any such Defaulting Lender’s Commitment shall be disregarded in the calculation of Aggregate
Exposure Percentage.

          “Agreement”: as defined in the preamble hereto.

          “Applicable Issuing Party”: (a) in the case of Fronted Letters of Credit, the Issuing
Lender and (b) in the case of Several Letters of Credit, the L/C Administrator.

          “Applicable Margin”: the rate per annum set forth under the relevant column heading
in Annex A.

          “Application”: an application, in such form as the applicable Issuing Lender may
specify from time to time, requesting such Issuing Lender to open a Letter of Credit.

          “Approved Fund”: as defined in Section 11.6(b).

          “Assignee”: as defined in Section 11.6(b).

7

 

          “Assignment and Assumption”: an Assignment and Assumption, substantially in the form of Exhibit C.

          “Available Commitment”: as to any Lender at any time, an amount equal to the excess,
if any, of (a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of
Credit then outstanding.

          “Benefitted Lender”: as defined in Section 11.7.

          “Bermuda Companies Law”: The Companies Act of 1981 of Bermuda.

          “Bermuda Insurance Law”: The Insurance Act of 1978 of Bermuda.

          “Board”: the Board of Governors of the Federal Reserve System of the United States
(or any successor).

          “Borrower Representative”: the Company, in its capacity as contractual representative
of the Borrowers pursuant to Section 12.

          “Borrowers”: as defined in the preamble hereto.

          “Borrowing Base”: at any time, and in respect of each Borrower, the aggregate amount
of cash and Eligible Securities held in the Accounts applicable to such Borrower under the
applicable Collateral Account Control Agreement at such time multiplied in each case by the
respective Advance Rates for cash and such Eligible Securities; provided that no Eligible
Securities or cash shall be included in the calculation of a Borrowing Base unless (i) the
Collateral Agent has a first priority perfected Lien on and security interest in such collateral
pursuant to the Loan Documents and (ii) there shall exist no other Liens on such Eligible
Securities and cash; provided, further that (1) no Eligible Security shall be
included in the calculation of a Borrowing Base unless it is listed on a national securities
exchange or freely tradeable at readily established prices in over-the-counter transactions, (2)
other than cash, U.S. Government Bills, Notes and U.S. Government Guaranteed or Sponsored Agency
Securities, no single issue or issuer shall comprise more than 10% of a Borrowing Base, (3) U.S.
Non-Financial Corporate Bonds shall comprise no more than 20% of a Borrowing Base at any time and
shall be restricted to fixed coupon bonds with issue size above $250,000,000, (4) Non-U.S.
Government and Supranational Organization Obligations shall be excluded from the calculation of a
Borrowing Base unless such marketable securities are from the OECD country member states of United
Kingdom, France, Germany or Japan and (5) all maturities are calculated from the relevant date of
determination of a Borrowing Base; provided, further, that (i) the Borrowing Base
in respect of any Borrower at any time shall be the amount thereof as set forth in the Borrowing
Base Report (as defined in the applicable Collateral Account Control Agreement) then most recently
delivered by the Collateral Agent to the Administrative Agent pursuant to Section 2 of Article III
of the applicable Collateral Account Control Agreement and (ii) for the avoidance of doubt, each
Borrower will take all such actions as shall be necessary to cause the Borrowing Base of such
Borrower at all times to be at least 100% of the Secured L/C Obligations of such Borrower in
accordance with Section 3 of Article III of the applicable Collateral Account Control Agreement.

          “Borrowing Date”: any Business Day specified by the Borrower Representative as a date
on which the Borrower Representative requests the relevant Lenders to make Loans hereunder.

          “Business Day”: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City or London or, for purposes of Section 2.5(b)only, Bermuda, are authorized or

8

 

required by law to close; provided, that with respect to notices and determinations in
connection with, and payments of principal and interest on, Eurodollar Loans, such day is also a
day for trading by and between banks in Dollar deposits in the interbank eurodollar market.

          “Capital Lease Obligations”: as to any Person, the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

          “Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock (including Hybrid Capital) of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any and all warrants,
rights or options to purchase any of the foregoing.

          “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States Government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of six months or less from the date of acquisition issued by any Lender
or by any commercial bank organized under the laws of the United States or any state thereof having
combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least ‘A-1’ by Standard & Poor’s Ratings Services (“S&P”) or ‘P-1’ by Moody’s Investors
Service, Inc. (“Moody’s”), or carrying an equivalent rating by a nationally recognized
rating agency, if both of the two named rating agencies cease publishing ratings of commercial
paper issuers generally, and maturing within six months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than 30 days, with respect to securities
issued or fully guaranteed or insured by the United States government; (e) securities with
maturities of one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, commonwealth, territory, political subdivision, taxing authority or foreign
government (as the case may be) are rated at least ‘A’ by S&P or ‘A’ by Moody’s; (f) securities
with maturities of six months or less from the date of acquisition backed by standby letters of
credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of
this definition; (g) money market mutual or similar funds that invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of this definition; or (h) money market
funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act
of 1940, (ii) are rated ‘AAA’ by S&P and ‘Aaa’ by Moody’s and (iii) have portfolio assets of at
least $5,000,000,000.

          “Change of Control”: any of the following: (i) any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange
Act”) other than the Company or any Subsidiary), shall become, or obtain rights (whether by
means of warrants, options or otherwise (other than any such warrants, options or other rights
which are not exercisable prior to the Termination Date)) to become, the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of shares of
Capital Stock representing more than 50% of the total voting power of any Borrower; or (ii) the
occupation of a majority of the seats (other than vacant seats) of the board of directors of the
Company by Persons who are neither (x) the directors of the
Company on the Closing Date nor (y) nominated by the board of directors of the Company nor (z)
appointed by directors so nominated.

9

 

          “Closing Date”: the date on which the conditions precedent set forth in Section 5.1
shall have been satisfied, which date is July 30, 2010.

          “Code”: the Internal Revenue Code of 1986.

          “Co-Documentation Agents”: as defined in the preamble hereto.

          “Collateral”: as defined in the Security Agreement.

          “Collateral Account Control Agreement”: each Collateral Account Control Agreement,
among a Borrower, The Bank of New York Mellon, as securities intermediary, and the Collateral
Agent, in form and substance reasonably satisfactory to the Administrative Agent.

          “Collateral Agent”: as defined in the Security Agreement.

          “Commitment”: as to any Lender, the obligation of such Lender to make Loans and issue
or participate in Letters of Credit during the Commitment Period in an aggregate principal and/or
face amount not to exceed, at any one time outstanding, the amount set forth under the heading
“Commitment” opposite such Lender’s name on Schedule 1.1 or in the Assignment and
Assumption pursuant to which such Lender became a party hereto, as the same may be changed from
time to time pursuant to the terms hereof. The original aggregate amount of the Commitments is
$280,000,000.

          “Commitment Fee”: as defined in Section 2.3(a).

          “Commitment Fee Rate”: the rate per annum set forth under the relevant column heading
in Annex A.

          “Commitment Increase Supplement”: a supplement to this Agreement substantially in the
form of Exhibit J.

          “Commitment Percentage”: as to any Lender at any time, the percentage which such
Lender’s Commitment then constitutes of the Total Commitments or, at any time after the Commitments
shall have expired or terminated, the percentage which the aggregate principal amount of such
Lender’s Loans then outstanding constitutes of the aggregate principal amount of the Loans then
outstanding; provided, that in the event that the Loans are paid in full prior to the
reduction to zero of the Total Extensions of Credit, the Commitment Percentages shall be determined
in a manner designed to ensure that the other outstanding Extensions of Credit shall be held by the
Lenders on a comparable basis.

          “Commitment Period”: the period from and including the Closing Date to but excluding
the Termination Date.

          “Commitment Share”: as defined in Section 3.8(a).

          “Commonly Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Company or any Subsidiary within the meaning of Section 4001 of ERISA or is
part of a group that includes the Company or any Subsidiary and that is treated as a single
employer under Section 414 of the Code.

          “Company”: as defined in the preamble hereto.

10

 

          “Compliance Certificate”: a certificate duly executed by a Responsible Officer
substantially in the form of Exhibit A.

          “Confidential Information Memorandum”: the Confidential Information Memorandum dated
June 2010 and furnished to certain Lenders.

          “Consolidated Leverage Ratio”: as of the last day of any fiscal quarter (expressed as
a percentage), Consolidated Total Debt, divided by the sum of (i) Consolidated Total Debt and (ii)
Consolidated Tangible Net Worth.

          “Consolidated Net Income”: for any period, the consolidated net income (or loss) of
the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.

          “Consolidated Tangible Net Worth”: of the Company at any date, the consolidated
stockholders’ equity (including Hybrid Capital) of the Company and its Subsidiaries less their
consolidated intangible assets, all determined on a consolidated basis as of such date in
accordance with GAAP.

          “Consolidated Total Debt”: at any date, the aggregate principal amount of all
Indebtedness of the Company and its Subsidiaries at such date, determined on a consolidated basis
in accordance with GAAP; provided that there shall be excluded from Consolidated Total Debt
the then aggregate undrawn face amount of all then outstanding letters of credit issued on behalf
of the Company and/or any of its Subsidiaries (but the aggregate amount of drawings under such
letters of credit that have not then been reimbursed shall not be so excluded). For the avoidance
of doubt, Consolidated Total Debt shall not include Hybrid Capital.

          “Contractual Obligation”: as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

          “Custodian”: as defined in the Security Agreement.

          “Default”: any of the events specified in Section 8, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

          “Defaulting Lender”: any Lender, as reasonably determined by the Administrative
Agent, that has (a) failed to fund any portion of its Loans, Several Letters of Credit or
participations in Fronted Letters of Credit within three Business Days of the date required to be
funded by it hereunder, (b) notified the Borrower, the Administrative Agent, any Issuing Lender or
any Lender in writing that it does not intend to comply with any of its funding obligations under
this Agreement or has made a public statement to the effect that it does not intend to comply with
its funding obligations under this Agreement or under other agreements generally in which it
commits to extend credit, (c) failed, within three Business Days after request by the
Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to
its obligations to fund prospective Loans, Several Letters of Credit and participations in then
outstanding Fronted Letters of Credit, (d) otherwise failed to pay over to the Administrative Agent
or any other Lender any other amount required to be paid by it hereunder within three Business Days
of the date when due, unless the subject of a reasonable good faith dispute, or (e) (i) become or
is insolvent or has a parent company that has become or is insolvent or (ii) become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment or has a parent company that has
become the subject

11

 

of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment.

     “Disposition”: with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and
“Disposed of” shall have correlative meanings.

     “Dollar Amount”: at any time (a) as to any amount in Dollars, such amount and (b) as
to any amount in Pounds Sterling, the then Dollar Equivalent thereof.

     “Dollar Equivalent”: with respect to any amount of Pounds Sterling on any date, the
equivalent amount in Dollars of such amount of Pounds Sterling as determined by the Administrative
Agent in accordance with Section 1.3 using the applicable Exchange Rate.

     “Dollars” and “$”: dollars in lawful currency of the United States.

     “Domestic Subsidiary”: any Subsidiary organized under the laws of any jurisdiction
within the United States.

     “Eligible Securities”: as provided in the definition of the term Advance Rate.

     “Environmental Laws”: any and all applicable foreign, Federal, state, local or
municipal laws, requirements of any Governmental Authority or other Requirements of Law (including
common law) regulating, relating to or imposing liability relating to (a) pollution or protection
of the environment, (b) exposure of any Person to hazardous emissions or releases of Hazardous
Materials, (c) protection of the public health or welfare from the effects of products;
by-products, emissions or releases of Hazardous Materials and (d) regulation of the manufacture,
use or introduction into commerce of Hazardous Materials.

     “ERISA”: the Employee Retirement Income Security Act of 1974.

     “Eurodollar Rate”: with respect to each day during each Interest Period pertaining to
a Eurodollar Loan, the rate per annum determined for such day (rounded upward to the nearest
1/100th of 1%) on the basis of the rate for deposits in Dollars for a period equal to
such Interest Period commencing on the first day of such Interest Period appearing on Reuters
Screen LIBOR01 Page as of 11:00 A.M., London time, two Business Days prior to the beginning of such
Interest Period. In the event that such rate does not appear on Reuters Screen LIBOR01 Page (or
otherwise on such screen), the “Eurodollar Rate” shall be determined by reference to such
other comparable publicly available service for displaying eurodollar rates as may be selected by
the Administrative Agent or, in the absence of such availability, by reference to the rate at which
the Administrative Agent is offered Dollar deposits at or about 11:00 A.M., London time, two
Business Days prior to the beginning of such Interest Period in the interbank eurodollar market
where its eurodollar and foreign currency and exchange operations are then being conducted for
delivery on the first day of such Interest Period for the number of days comprised therein.

     “Eurodollar Loans”: Loans the rate of interest applicable to which is based upon the
Eurodollar Rate.

     “Eurodollar Tranche”: the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

12

 

          “Event of Default”: any of the events specified in Section 8; provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

          “Exchange Rate”: on any day, with respect to Pounds Sterling, the rate at which such
currency may be exchanged into Dollars, as set forth at approximately 11:00 A.M., New York time, on
such date on the Reuters World Currency Page for Pounds Sterling. In the event that such rate does
not appear on any Reuters World Currency Page, the Exchange Rate shall be determined by reference
to such other publicly available service for displaying exchange rates as may be selected by the
Administrative Agent, or, in the event no such service is selected, such Exchange Rate shall
instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the
market where its foreign currency exchange operations in respect of Pounds Sterling are then being
conducted, at or about 10:00 A.M., local time, on such date for the purchase of the relevant
currency for delivery two Business Days later; provided that if at the time of any such
determination, for any reason, no such spot rate is being quoted, the Administrative Agent, after
consultation with the Company, may use any reasonable method it deems appropriate to determine such
rate, and such determination shall be presumed correct absent manifest error.

          “Excluded Taxes”: means, with respect to the Administrative Agent, the Collateral
Agent, any Lender or any other recipient (each of the foregoing, a “Recipient”) of any
payment to be made by or on account of any obligation of any Borrower hereunder (or under any other
Loan Documents), (a) income or franchise taxes imposed on (or measured by) the net income of such
Recipient by the United States of America, or by the jurisdiction under the laws of which such
Recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable lending office is located, (b) any branch profits taxes imposed on such
Recipient by the United States of America or any similar tax imposed on such Recipient by any other
jurisdiction in which such Borrower is located or (c) any U.S. withholding tax (with respect to
payments made by any U.S. Borrower) or United Kingdom withholding tax (with respect to payments
made by any Borrower organized in the United Kingdom) that is in effect and would apply to amounts
payable to (i) a Lender (other than a Lender on the Closing Date) at the time such Lender becomes a
party to this Agreement, (ii) any Lender at the time such Lender designates a new lending office,
except to the extent, in (i) or (ii), as applicable, such Lender (or its Assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to receive additional
amounts from any Borrower with respect to withholding tax pursuant to Section 2.13(a) subject to
the Borrower’s rights under Section 2.15 and Section 2.16 or (iii) any Person at the time such
Person becomes a Participant as specified in Section 11.6 (except to the extent provided for in
section 11.6(c)(ii)).

          “Extensions of Credit”: as to any Lender at any time, an amount equal to the sum of
(a) the aggregate principal amount of all Loans held by such Lender then outstanding and (b) such
Lender’s Commitment Percentage of the L/C Obligations then outstanding.

          “Federal Funds Effective Rate”: for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of the Federal Reserve
System arranged by federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for the day of such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing selected by it.

          “Fee Payment Date”: (a) the third Business Day following the last day of each March,
June, September and December after the Closing Date and (b) the last day of the Commitment Period.

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          “Foreign Borrower”: the Company and any Subsidiary Borrower that is not a Domestic
Subsidiary.

          “Fronted Letter of Credit”: a Letter of Credit issued by an Issuing Lender in which
the Lenders purchase a risk participation pursuant to Section 3.4(a).

          “Funding Office”: the office of the Administrative Agent specified in Section 11.2
or such other office as may be specified from time to time by the Administrative Agent as its
funding office by written notice to the Borrower Representative and the Lenders.

          “GAAP”: generally accepted accounting principles in the United States as in effect
from time to time and set forth in any rule, regulation, opinion or pronouncement of the Accounting
Principles Board and the American Institute of Certified Public Accountants and any rule,
regulation, opinion or pronouncement of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S. accounting profession), which
are applicable to the circumstances as of the date of determination.

          “Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners, the U.K. Financial
Services Authority and the Bermuda Monetary Authority).

          “Group Members”: the collective reference to the Company and its Subsidiaries.

          “Guarantee Obligation”: as to any Person (the “guarantor”), means any
obligation, including a reimbursement, counterindemnity or similar obligation, of the guarantor
that guarantees or in effect guarantees, or which is given to induce the creation of a separate
obligation by another Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the guarantor, whether or
not contingent, (i) to purchase any such Indebtedness or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any
such Indebtedness or (2) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor so as to enable the primary
obligor to pay Indebtedness or other obligation, (iii) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such Indebtedness of the ability of the
primary obligor to make payment of such Indebtedness or (iv) otherwise to assure or hold harmless
the owner of any such Indebtedness against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include (a) endorsements of
instruments for deposit or collection in the ordinary course of business or (b) obligations of any
Insurance Subsidiary under any Primary Policy, Reinsurance Agreement, Retrocession Agreement or
Other Insurance Product that is entered into in the ordinary course of business. The amount of any
Guarantee Obligation of any guarantor shall be deemed to be the lower of (a) an amount equal to the
stated or determinable amount of the Indebtedness in respect of which such Guarantee Obligation is
made as such amount may be reduced from time to time and (b) the maximum amount for which such
guarantor may be liable pursuant to the terms of the instrument embodying such Guarantee
Obligation, as such amount may be reduced from time to time unless such Indebtedness and the
maximum amount for which such guarantor may be liable are not stated or
determinable, in which case the amount of such Guarantee Obligation shall be such guarantor’s
maximum reasonably anticipated liability in respect thereof as determined by the Company in good
faith. The term “Guarantee” as a verb has a corresponding meaning.

14

 

          “Hazardous Materials”: all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes.

          “Hybrid Capital”: at any time, all subordinated securities, instruments or other
obligations issued by the Company to the extent that such securities, instruments or other
obligations (i) are then accorded equity treatment by S&P and (ii) mature no earlier than the date
which is six months after the Termination Date.

          “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services (other than current trade payables incurred in the ordinary course of
such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures,
loan agreements or other similar debt instruments, (d) all indebtedness created or arising under
any conditional sale or other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), (e) all Capital Lease
Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an
account party or applicant under or in respect of acceptances, letters of credit, surety bonds or
similar arrangements, (g) the liquidation value of all mandatorily redeemable preferred Capital
Stock of such Person, (h) net obligations of such Person under any Swap Contract, (i) any other
instruments or obligations of such Person to the extent that such instruments or obligations are
then classified as indebtedness by S&P, (j) all Guarantee Obligations of such Person in respect of
obligations of the kind referred to in clauses (a) through (i) above, (k) all obligations of the
kind referred to in clauses (a) through (j) above secured by any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person has assumed or
become liable for the payment of such obligation and (l) Indebtedness of any partnership in which
such Person is a general partner to the extent that applicable law requires that such Person is
liable for such Indebtedness unless the terms of such Indebtedness expressly provide that such
Person is not so liable. The amount of any net obligation under any Swap Contract on any date
shall be deemed to be the Swap Termination Value as of such date. For the avoidance of doubt,
Indebtedness shall not include the obligations of any Insurance Subsidiary under any Primary
Policy, Reinsurance Agreement, Retrocession Agreement or Other Insurance Product which is entered
into in the ordinary course of business.

          “Information”: as defined in Section 11.15.

          “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

          “Insolvent”: pertaining to a condition of Insolvency.

          “Insurance Subsidiary”: a Subsidiary of the Company engaged in the insurance and/or
reinsurance underwriting business.

          “Interest Payment Date”: (a) as to any ABR Loan, the last day of each March, June,
September and December to occur while such Loan is outstanding and the Termination Date, (b) as to
any Eurodollar Loan having an Interest Period of three months or less, the last day of such
Interest Period, (c)
as to any Eurodollar Loan having an Interest Period longer than three months, each day that is
three months, or a whole multiple thereof, after the first day of such Interest Period and the last
day of such Interest Period and (d) as to any Loan (other than any Loan that is an ABR Loan), the
date of any repayment or prepayment made in respect thereof.

15

 

          “Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one, two, three or six months thereafter, as selected by the Borrower Representative in its
notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and
(b) thereafter, each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected
by the Borrower Representative by irrevocable notice to the Administrative Agent not later than
11:00 A.M., New York City time, on the date that is three Business Days prior to the last day of
the then current Interest Period with respect thereto; provided that, all of the foregoing
provisions relating to Interest Periods are subject to the following:

     (i) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless the result
of such extension would be to carry such Interest Period into another calendar month in
which event such Interest Period shall end on the immediately preceding Business Day;

     (ii) the Borrower Representative may not select an Interest Period that would extend
beyond the Termination Date; and

     (iii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of a calendar month.

          “Issuing Lender”: as the context may require, (a) Barclays Bank PLC (or any Affiliate
thereof) with respect to Letters of Credit issued by it, (b) Citibank, N.A. (or any Affiliate
thereof) with respect to Letters of Credit issued by it or (c) any other Lender (or any affiliate
thereof) that becomes an Issuing Lender pursuant to Section 3.10, with respect to Letters of
Credit issued by it.

          “L/C Administrator”: Barclays Bank PLC, as letter of credit administrator for the
Lenders, together with any replacement L/C Administrator arising under Section 9.9(c).

          “L/C Issuer”: (a) with respect to a Fronted Letter of Credit, the Issuing Lender and
(b) with respect to a Several Letter of Credit, each Lender.

          “L/C Obligations”: at any time, an amount equal to the sum of (a) the then aggregate
Secured L/C Obligations of all Borrowers and (b) the then aggregate Unsecured L/C Obligations of
all Borrowers. For purposes of determining the L/C Obligations held by any Lender, a Lender shall
be deemed to hold an amount equal to the sum of (i) the aggregate amount of each Lender’s direct
obligation in all outstanding Several Letters of Credit and all Reimbursement Obligations owed to
such Lender in respect thereof and (ii) its risk participation in all outstanding Fronted Letters
of Credit and in all Reimbursement Obligations with respect thereto.

          “L/C Participants”: the collective reference to all the Lenders other than the
applicable Issuing Lender.

          “Lenders”: as defined in the preamble hereto.

          “Letters of Credit”: as defined in Section 3.1(a).

          “Lien”: any mortgage, pledge, hypothecation, assignment, encumbrance, lien (statutory
or other), charge or other security interest or any other security agreement (including the interest of a

16

 

vendor or lessor in any conditional sale or other title retention agreement and any
capital lease having substantially the same economic effect as any of the foregoing).

          “Loan”: any loan made by any Lender pursuant to this Agreement.

          “Loan Documents”: this Agreement, the Security Documents, the Notes, any fee letter
executed or delivered in connection herewith or therewith, any other document or instrument signed
by any Borrower that expressly provides that it is a Loan Document as defined herein and any
amendment, waiver, supplement or other modification to any of the foregoing.

          “Material Adverse Effect”: any event, development or circumstance that has had or
would reasonably be expected to have a material adverse effect on (a) the business, assets,
liabilities, property or condition (financial or otherwise) of the Company and its Subsidiaries
taken as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan
Documents or the rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

          “Material Subsidiary”: at any time, (i) any Subsidiary (x) the total consolidated
assets or total consolidated revenues of which exceed 10% of the total consolidated assets or total
consolidated revenues, respectively, of the Company and its Subsidiaries on a consolidated basis at
the end of or for, respectively, the then most recently completed fiscal quarter of the Company for
which financial statements shall have been made available to the Lenders as described in Section
4.1 or pursuant to Section 6.1 and/or (y) the net assets of which exceed $100,000,000 at the end
of the then most recently completed fiscal quarter of the Company for which financial statements
shall have been made available to the Lenders as described in Section 4.1 or pursuant to Section
6.1, (ii) Aspen Specialty Insurance Company, (iii) Aspen U.S. Holdings, Inc. and (iv) Aspen
Underwriting Limited.

          “Moody’s”: Moody’s Investors Service, Inc. and its successors.

          “Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          “Net Cash Proceeds”: in connection with any issuance or sale of Capital Stock by the
Company, the cash proceeds received from such issuance or sale, net of attorneys’ fees and
disbursements, investment banking fees and disbursements, accountants’ fees and disbursements,
underwriting fees, discounts and commissions, printing expenses, any governmental or exchange fees
incurred (or reasonably expected to be incurred) and other customary fees and expenses actually
incurred in connection therewith.

          “New Lender”: any bank, financial institution or other entity that becomes a “Lender”
hereunder pursuant to Section 2.1(b).

          “New Lender Supplement”: a supplement to this Agreement substantially in the form of
Exhibit K.

          “Non-Excluded Taxes”: as defined in Section 2.13(a).

          “Non-U.S. Lender”: as defined in Section 2.13(e).

          “Notes”: the collective reference to any promissory note evidencing Loans,
substantially in the form of Exhibit F or Exhibit G, as the case may be.

17

 

          “Obligations”: the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and Reimbursement Obligations and interest accruing after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to any Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and liabilities of any
Borrower to the Administrative Agent, the Syndication Agent and the Collateral Agent or to any
Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing
or hereafter incurred, which may arise under, out of, or in connection with, this Agreement
(including the obligations of the Company pursuant to Section 10), any other Loan Document, the
Letters of Credit or any other document made, delivered or given in connection herewith or
therewith, whether on account of principal, interest, fees, reimbursement obligations, indemnities,
costs, expenses or otherwise (including all reasonable fees, charges and disbursements of counsel
to the Administrative Agent, the Syndication Agent, the Collateral Agent or to any Lender that are
required to be paid by the Borrowers pursuant hereto).

          “Other Insurance Product”: any specialty insurance or reinsurance product such as
contingency reinsurance and structured risks.

          “Other Taxes”: any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document, including any interest, additions to tax or penalties applicable thereto.

          “Participant”: as defined in Section 11.6.

          “Participant Register”: as defined in Section 11.6.

          “Patriot Act”: the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)).

          “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).

          “Person”: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

          “Plan”: at a particular time, any employee benefit plan that is subject to ERISA and
in respect of which a Borrower, a Subsidiary or (with respect to an employee benefit plan subject
to Title IV of ERISA) a Commonly Controlled Entity is (or, if such plan were terminated at such
time, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA responsible for contributing to or under or having any liability.

          “Pounds Sterling” or “£”: the lawful money of the United Kingdom.

          “Pricing Grid”: the table set forth on Annex A.

          “Primary Policy”: any insurance policy issued by an Insurance Subsidiary.

          “Prime Rate”: the rate of interest per annum publicly announced from time to time by
Barclays Bank PLC as its prime rate in effect at its principal office in New York City (the Prime Rate not

18

 

being intended to be the lowest rate of interest charged by Barclays Bank PLC in
connection with extensions of credit to debtors).

          “Private Act”: separate legislation enacted in Bermuda with the intention that such
legislation applies specifically to a Borrower or a Subsidiary in whole or in part.

          “Projections”: as defined in Section 4.16.

          “Properties”: as defined in Section 4.15(d).

          “Register”: as defined in Section 11.6.

          “Regulation D”: Regulation D of the Board as in effect from time to time.

          “Regulation U”: Regulation U of the Board as in effect from time to time.

          “Reimbursement Obligation”: the obligation of the applicable Borrower to reimburse
the L/C Issuers pursuant to Section 3.5 for amounts drawn under Letters of Credit.

          “Reinsurance Agreement”: any agreement, contract, treaty, certificate or other
arrangement whereby any Insurance Subsidiary agrees to assume from or reinsure an insurer or
reinsurer for all or part of the liability of such insurer or reinsurer under a policy or policies
of insurance issued by such insurer or reinsurer.

          “Reorganization”: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section 4241 of ERISA.

          “Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the thirty day notice period is waived under PBGC Reg. § 4043.

          “Required Lenders”: at any time, the holders of more than 50% of the Total
Commitments then in effect or, if the Commitments have been terminated, the Total Extensions of
Credit then outstanding; provided that the Commitment of, and the Extensions of Credit held
or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination
of Required Lenders.

          “Requirement of Law”: as to any Person, the Memorandum of Association or the
Certificate of Incorporation and By-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

          “Responsible Officer”: the chief executive officer, president or chief financial
officer or finance director of a Borrower, but in any event, with respect to financial matters, the
chief financial officer or the finance director of such Borrower.

          “Restricted Payments”: as defined in Section 7.4.

          “Retrocession Agreement”: any agreement, treaty, certificate or other arrangement
whereby any Insurance Subsidiary cedes to another insurer all or part of such Insurance
Subsidiary’s liability under a policy or policies of insurance reinsured by such Insurance
Subsidiary.

          “S&P”: Standard & Poor’s Ratings Services and its successors.

19

 

          “SEC”: the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

          “Secured L/C Obligations”: of any Borrower at any time, an amount equal to the sum of
(a) the then Dollar Amount of the aggregate then undrawn and unexpired amount of the then
outstanding Secured Letters of Credit issued on behalf of such Borrower and (b) the then Dollar
Amount of the aggregate amount of drawings under Secured Letters of Credit issued on behalf of such
Borrower that have not then been reimbursed pursuant to Section 3.5.

          “Secured Letter of Credit”: any Letter of Credit designated as a “Secured Letter of
Credit” by a Borrower in the Application therefor.

          “Security Agreement”: the Security Agreement to be entered into among the Borrowers
and the Collateral Agent in form and substance reasonably satisfactory to the Administrative Agent
and reasonably acceptable to the Collateral Agent in respect of its duties, rights and liabilities.

          “Security Documents”: (i) the Security Agreement, (ii) each Collateral Account
Control Agreement, and (iii) each other document, agreement, certificate and/or financing
statement, executed, delivered, made or filed pursuant to the terms of the documents specified in
foregoing clauses (i) and (ii).

          “Several Letter of Credit”: a Letter of Credit issued severally by or on behalf of the
Lenders pursuant to which the Lenders are severally liable to the beneficiary which shall be
substantially in the form of Exhibit L or in such other form as may be agreed by the
Company and the L/C Administrator.

          “Single Employer Plan”: any Plan that is subject to Title IV of ERISA, but that is not
a Multiemployer Plan.

          “Subsidiary”: as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned by such Person. Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Company.

          “Subsidiary Borrower”: each Material Subsidiary of the Company that shall become a
Borrower under this Agreement upon satisfaction of the conditions precedent set forth in Section
5.5; provided, however, that if at any time the Company shall, in accordance with
Section 11.1, be released from its obligations under Section 10 with respect to any Subsidiary
which is, prior to such release, a Subsidiary Borrower, such Subsidiary, after such release, shall
cease to be a Subsidiary Borrower.

          “Swap Contract”: (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or
forward bond or forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the foregoing (including
any options to enter into any of the foregoing), whether or not any such transaction is governed by
or subject to any master agreement, and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and

20

 

conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such master agreement,
together with any related schedules, a “Master Agreement”), including any such obligations or
liabilities under any Master Agreement.

          “Swap Termination Value”: in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender).

          “Syndication Agent”: as defined in the preamble hereto.

          “Terminating Credit Agreement”: the 5-Year Credit Agreement, dated as of August 2,
2005, among the Company, the Subsidiary Borrowers, the several banks and other financial
institutions or entities from time to time parties thereto, The Bank of New York, as collateral
agent, Barclays Bank PLC, as administrative agent and the other agents party thereto.

          “Termination Date”: July 30, 2013.

          “Total Commitments”: at any time, the aggregate amount of the Commitments then in
effect.

          “Total Extensions of Credit”: at any time, the aggregate amount of the Extensions of
Credit of the Lenders outstanding at such time.

          “Total Loans”: at any time, the aggregate principal amount of the Loans outstanding
at such time.

          “Transferee”: any Assignee or Participant.

          “Type”: as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

          “United States”: the United States of America.

          “Unsecured L/C Obligations”: of any Borrower at any time, an amount equal to the sum
of (a) the then Dollar Amount of the aggregate then undrawn and unexpired amount of the then
outstanding Unsecured Letters of Credit issued on behalf of such Borrower and (b) the then Dollar
Amount of the aggregate amount of drawings under Unsecured Letters of Credit issued on behalf of
such Borrower that have not then been reimbursed pursuant to Section 3.5.

          “Unsecured Letter of Credit”: any Letter of Credit that is not a Secured Letter of
Credit.

          “Wholly Owned Subsidiary””: of any Person, any Subsidiary of such Person to the
extent all of the Capital Stock of such Subsidiary, other than directors’ or nominees’ qualifying
shares, is owned directly or indirectly by such Person.

          1.2 Other Definitional Provisions.

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          (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.

          (b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (iii)
the word “incur” shall be construed to mean incur, create, issue, assume or become liable in
respect of (and the words “incurred” and “incurrence” shall have correlative meanings), (iv)
“consolidated” means, when used with reference to financial statements or financial statement items
of a Person, such statements or items on a consolidated basis in accordance with applicable
principles of consolidation under GAAP, (v) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, Capital Stock, securities, revenues, accounts, leasehold interests and
contract rights, (vi) references to agreements or other Contractual Obligations shall, unless
otherwise specified, be deemed to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time and (vii) references to statutes or
regulations shall, unless otherwise specified, be deemed to include all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statutes or regulations.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          1.3 Exchange Rates. For purposes of calculating (a) the aggregate Dollar Equivalent
of Letters of Credit denominated in Pounds Sterling and of unreimbursed drawings under Letters of
Credit denominated in Pounds Sterling outstanding at any time during any period and (b) the Dollar
Equivalent of any Letters of Credit denominated in Pounds Sterling at the time of the issuance of
such Letter of Credit pursuant to Section 3.1, the Administrative Agent will on the first Business
Day of each calendar month and at such other times as it in its sole discretion determines to be
appropriate to do so (including on or prior to the date of any borrowing or issuance of a Letter of
Credit), determine the respective rate of exchange into Dollars of Pounds Sterling (which rate of
exchange shall be based upon the Exchange Rate in effect on the date of such determination). Such
rates of exchange so determined on each such determination date shall, for purposes of the
calculations described in the preceding sentence, be deemed to remain unchanged and in effect until
the next such determination date.

          1.4 Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Company or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the Company shall
negotiate in good faith to amend
such ratio or requirement to preserve the original intent thereof in light of such change in
GAAP (subject to such approvals required under Section 11.1); provided that, until so
amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change therein and (b) the Company shall provide to the Administrative Agent and each
Lender financial statements and other documents required under this

22

 

Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

SECTION 2 AMOUNT AND TERMS OF COMMITMENTS

          2.1 Revolving Commitments. (a) Subject to the terms and conditions hereof, each
Lender severally agrees to make Loans to the Borrowers from time to time during the Commitment
Period in an aggregate principal amount at any one time outstanding, when added to such Lender’s
Commitment Percentage of the L/C Obligations then outstanding, which does not exceed the amount of
such Lender’s Commitment. During the Commitment Period the Borrowers may use the Commitments by
borrowing, prepaying the Loans in whole or in part, and, reborrowing, all in accordance with the
terms and conditions hereof. The Loans may from time to time be Eurodollar Loans or ABR Loans, as
determined by the Borrowers and notified to the Administrative Agent in accordance with Sections
2.2 and 2.6.

          (b) From time to time during the Commitment Period, at the request of the Borrower
Representative, with the prior written consents of the Administrative Agent and the then Issuing
Lenders (which consents shall not be unreasonably withheld or delayed), (i) any one or more
existing Lenders may agree that such existing Lender or Lenders shall increase the amount of their
Commitment or Commitments by executing and delivering to the Borrower Representative and the
Administrative Agent a Commitment Increase Supplement or Commitment Increase Supplements, as the
case may be, and/or (ii) any one or more New Lenders may from time to time during the Commitment
Period agree that such New Lender or New Lenders shall establish a new Commitment or Commitments by
executing and delivering to the Borrower Representative and the Administrative Agent a New Lender
Supplement or New Lender Supplements, as the case may be. From and after the effective date
specified in each New Lender Supplement, the New Lender thereunder shall become a Lender with a
Commitment in the amount set forth in such New Lender Supplement and shall have the rights and
obligations of a Lender under this Agreement for all purposes and to the same extent as if
originally a party hereto. Each New Lender shall deliver to the Administrative Agent an
administrative questionnaire. Notwithstanding anything contained in this paragraph to the
contrary, without the consent of (x) the Required Lenders, the aggregate amount of incremental
Commitments established or increased after the Closing Date pursuant to this paragraph shall not
exceed $75,000,000 and (y) the Administrative Agent, each increase in the Total Commitments
effected pursuant to this paragraph shall be in a minimum aggregate amount of $10,000,000. No
existing Lender shall have any obligation under this Agreement to enter into a Commitment Increase
Supplement.

          (c) Upon its receipt of (i) a duly executed Commitment Increase Supplement or a New Lender
Supplement, (ii) a certificate of each Borrower attaching the resolutions of the board of directors
of such Borrower authorizing the increase in the Commitments in an amount equal to or greater than
the amount of such increase in the Commitments effected thereby (except to the extent resolutions
authorizing the increased amount have previously been delivered by such Borrower), and (iii) each
written consent thereto required by paragraph (b) of this Section, the Administrative Agent shall
accept such Commitment Increase or New Lender Supplement, as the case may be, and record the
information contained therein in the Register.

          (d) Unless otherwise agreed to by the Administrative Agent and the Company (which agreement
may include (i) a phase-in of the applicable increase and/or (ii) if agreed to by each Lender,
Interest Periods having terms other than as set forth herein ), on each date upon which the Total
Commitments shall be increased pursuant to this Section, to the extent necessary to rebalance the
outstanding Loans pro rata among the Lenders (including any New Lenders) pursuant
to their modified Aggregate Exposure Percentages, the Borrowers (i) shall prepay outstanding Loans,
if any, which

23

 

prepayment shall be accompanied by payment of all accrued interest on the amount
prepaid and any amounts payable pursuant to Section 2.14 in connection therewith, and (ii) to the
extent they determine to do so, reborrow such Loans from the Lenders (including any New Lenders)
after giving effect to the new and/or increased Commitments becoming effective on such date, in the
case of each of clauses (i) and (ii) above such that, after giving effect thereto, the Loans
(including the Types thereof and Interest Periods with respect thereto) shall be held by the
Lenders (including for such purposes the New Lenders) pro rata according to their respective
Aggregate Exposure Percentages. Any prepayment and reborrowing pursuant to the preceding sentence
shall be effected, to the maximum extent practicable, through the netting of amounts payable
between the Borrowers and the respective Lenders.

          (e) On the Termination Date, each Borrower shall repay all then outstanding Loans made by the
Lenders to such Borrower.

          2.2 Procedure for Borrowing. Any Borrower may borrow during the Commitment Period on
any Business Day, provided that the Borrower Representative shall give the Administrative Agent
irrevocable notice (which notice must be received by the Administrative Agent prior to 11:00 A.M.,
New York City time, (a) three Business Days prior to the requested Borrowing Date, in the case of
Eurodollar Loans, or (b) on the requested Borrowing Date, in the case of ABR Loans), specifying (i)
the amount and Type of Loans to be borrowed, (ii) the requested Borrowing Date, (iii) in the case
of Eurodollar Loans, the respective length of the initial Interest Period therefor and (iv) the
name of the applicable Borrower. Any Loans made on the Closing Date shall initially be ABR Loans.
Each borrowing shall be in an amount equal to (x) in the case of ABR Loans, $5,000,000 or a whole
multiple of $1,000,000 in excess thereof (or, if the then aggregate Available Commitments are less
than $5,000,000, such lesser amount) and (y) in the case of Eurodollar Loans, $5,000,000 or a whole
multiple of $1,000,000 in excess thereof. Upon receipt of any such notice from the Borrower
Representative, the Administrative Agent shall promptly notify each Lender thereof. Each Lender
will make the amount of its pro rata share of each borrowing available to the Administrative Agent
for the account of the applicable Borrower at the Funding Office prior to 2:00 P.M., New York City
time, on the Borrowing Date requested by the Borrower Representative in funds immediately available
to the Administrative Agent. Such borrowing will then be made available to the Borrower
Representative by the Administrative Agent crediting the account of the Borrower Representative on
the books of such office with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent. Each Lender may,
at its option, make any Loan available to any Foreign Borrower by causing any foreign or domestic
branch or Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of such Foreign Borrower to repay such Loan in accordance
with the terms of this Agreement.

          2.3 Fees. (a) The Company agrees to pay to the Administrative Agent for the account
of each Lender which has a then effective Commitment a commitment fee (a “Commitment Fee”)
for the period from and including the date hereof to the last day upon which such Lender’s
Commitment shall have terminated, computed at the Commitment Fee Rate on the average daily amount
of the Available Commitment of such Lender during the period for which payment is made, payable
quarterly in arrears on
each Fee Payment Date, commencing on the first such date to occur after the date hereof.

          (b) The Company agrees to pay to the Administrative Agent and the Syndication Agent the fees
in the amounts and on the dates as set forth in any fee agreements with the Administrative Agent
and/or the Syndication Agent and to perform any other obligations contained therein.

          (c) The Company agrees to pay or reimburse the Collateral Agent for such normal and customary
costs and expenses as are incurred or charged by the Collateral Agent in maintaining and
administering the Collateral and otherwise performing its obligations under the Loan Documents.

24

 

          2.4 Termination or Reduction of Commitments The Borrower Representative shall have
the right, upon not less than five Business Days’ notice to the Administrative Agent, to terminate
the Commitments or, from time to time, to reduce the amount of the Commitments; provided
that no such termination or reduction of Commitments shall be permitted if, after giving effect
thereto and to any prepayments of the Loans made on the effective date thereof, the Total
Extensions of Credit would exceed the Total Commitments. Any such reduction shall be in an amount
equal to $5,000,000, or a whole multiple thereof, and shall reduce permanently the Commitments then
in effect.

          2.5 Optional and Mandatory Prepayments. (a) Each Borrower may at any time and from
time to time prepay the Loans made by the Lenders to such Borrower, in whole or in part, without
premium or penalty, upon irrevocable notice delivered by the Borrower Representative to the
Administrative Agent no later than 11:00 A.M., New York City time, three Business Days prior
thereto, in the case of Eurodollar Loans, and no later than 11:00 A.M., New York City time, on the
requested prepayment date, in the case of ABR Loans, which notice shall specify the date and amount
of prepayment, the name of the applicable Borrower and whether the prepayment is of Eurodollar
Loans or ABR Loans; provided, that if a Eurodollar Loan is prepaid on any day other than
the last day of the Interest Period applicable thereto, such Borrower shall also pay any amounts
owing pursuant to Section 2.14. Upon receipt of any such notice the Administrative Agent shall
promptly notify each relevant Lender thereof. If any such notice is given, the amount specified in
such notice shall be due and payable on the date specified therein, together with (except in the
case of Loans that are ABR Loans) accrued interest to such date on the amount prepaid. Partial
prepayments of ABR Loans and Eurodollar Loans for all Borrowers shall be in an aggregate principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof (or, in the case of ABR
Loans, the entire principal amount thereof).

          (b) If, on any date, the aggregate Secured L/C Obligations of any Borrower exceed the
Borrowing Base of such Borrower on such date, such Borrower (or the Borrower Representative) shall
within one Business Day of such date pay or deliver to the Custodian, to be held in accordance with
the Security Agreement and the applicable Collateral Account Control Agreement, an amount of cash
and/or Eligible Securities sufficient to cause the Borrowing Base of such Borrower to be at least
equal to the aggregate Secured L/C Obligations of such Borrower.

          (c) If, on any date, the Total Extensions of Credit outstanding on such date exceed 102% of
the Total Commitments in effect on such date, the Borrowers shall, upon demand by the
Administrative Agent, promptly (but in any event, within three Business Days of the date of the
Company’s receipt of such demand from the Administrative Agent) prepay any then outstanding Loans
and/or cash collateralize to the satisfaction of the Administrative Agent any then outstanding
Letters of Credit in an aggregate principal and/or face amount such that, after giving effect
thereto and treating such
cash collateralized Letters of Credit as being not then outstanding, the Total Extensions of
Credit do not exceed the Total Commitments. Any prepayment of a Eurodollar Loan pursuant to this
Section 2.5(c) shall be accompanied by interest accrued and unpaid to the date of such prepayment
on the principal so prepaid and, if such prepayment is made on a day other than the last day of an
Interest Period applicable to such Eurodollar Loan, the applicable Borrower shall also pay any
amounts owing pursuant to Section 2.14.

          2.6 Conversion and Continuation Options. (a) The Borrower Representative may elect
from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election substantially in the form of Exhibit H no later than
10:00 A.M., New York City time three Business Days prior to the proposed conversion date;
provided that any such conversion of Eurodollar Loans may only be made on the last day of
an Interest Period with respect thereto. The Borrower Representative may elect from time to time
to convert ABR Loans to Eurodollar Loans by giving the Administrative Agent prior irrevocable
notice of such election no later than 11:00

25

 

A.M., New York City time, on the third Business Day
preceding the proposed conversion date (which notice shall specify the length of the initial
Interest Period therefor); provided that no ABR Loan may be converted into a Eurodollar
Loan when any Event of Default or Default has occurred and is continuing and the Administrative
Agent or the Required Lenders have determined in its or their sole discretion not to permit such
conversions. Upon receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.

          (b) Any Eurodollar Loan may be continued as such upon the expiration of the then current
Interest Period with respect thereto by the Borrower Representative giving irrevocable notice to
the Administrative Agent, substantially in the form of Exhibit H hereto in accordance with
the applicable provisions of the term “Interest Period” set forth in Section 1.1, of the length of
the next Interest Period to be applicable to such Loan; provided that no Eurodollar Loan
may be continued as such when any Event of Default or Default has occurred and is continuing and
the Administrative Agent has or the Required Lenders have determined in its or their sole
discretion not to permit such continuations, and provided, further, that if the
Borrower Representative shall fail to give any required notice as described above in this paragraph
or if such continuation is not permitted pursuant to the preceding proviso, such Loan shall be
automatically converted to an ABR Loan on the last day of such then expiring Interest Period. Upon
receipt of any such notice, the Administrative Agent shall promptly notify each relevant Lender
thereof.

          2.7 Limitations on Eurodollar Tranches. Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made pursuant to such elections so
that, (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of $1,000,000
in excess thereof and (b) no more than twenty Eurodollar Tranches shall be outstanding at any one
time.

          2.8 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest
for each day during each Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin.

          (b) Each ABR Loan shall bear interest at a rate per annum equal to the ABR plus the Applicable
Margin.

          (c) (i) So long as any Event of Default shall have occurred and be continuing, the principal
amount of all Loans shall bear interest at a rate per annum equal to the rate that would otherwise
be applicable thereto pursuant to the foregoing provisions of this Section plus 2% and (ii)
if all or a portion of any interest payable on any Loan or any Commitment Fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum equal to the rate then
applicable to ABR Loans plus 2%, in each case as described in this clause (ii), from the
date of such non-payment until such amount is paid in full (as well after as before judgment).

          (d) Interest shall be payable in arrears on each Interest Payment Date; provided that
interest accruing pursuant to paragraph (c)(ii) of this Section shall be payable from time to time
on demand.

          2.9 Computation of Interest and Fees. Interest and fees payable pursuant hereto shall
be calculated on the basis of a 360-day year for the actual days elapsed, except that, with respect
to ABR Loans the rate of interest on which is calculated on the basis of the Prime Rate, the
interest thereon shall be calculated on the basis of a 365- (or 366, as the case may be) day year
for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the
Company and the relevant Lenders of each

26

 

determination of a Eurodollar Rate. Any change in the
interest rate on a Loan resulting from a change in the ABR or the Eurodollar Rate (pursuant to
Section 2.12) shall become effective as of the opening of business on the day on which such change
becomes effective. The Administrative Agent shall as soon as practicable notify the Company and
the relevant Lenders of the effective date and the amount of each such change in interest rate.
Each determination of an interest rate by the Administrative Agent pursuant to any provision of
this Agreement shall be conclusive and binding on each Borrower and the Lenders in the absence of
manifest error. The Administrative Agent shall deliver to the Company a statement showing the
quotations used by the Administrative Agent in determining any interest rate pursuant to Section
2.8(a).

          2.10 Inability to Determine Interest Rate. If prior to the first day of any Interest
Period:

     (a) the Administrative Agent shall have determined (which determination shall be
conclusive and binding upon each Borrower absent manifest error) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, or

     (b) the Administrative Agent shall have received notice from the Required Lenders that
the Eurodollar Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively certified by such
Lenders) of making or maintaining their affected Loans during such Interest Period,

The Administrative Agent shall give electronic or telephonic notice thereof to the Company and the
relevant Lenders as soon as practicable thereafter. Upon receipt of such notice, the Borrower
Representative may revoke any notice of borrowing, conversion or continuation then submitted by it.
If the Borrower Representative does not revoke such notice, then (x) any Eurodollar Loans requested
to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that
were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be
continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day
of the then-current Interest Period, to ABR Loans. Until such notice has been withdrawn by the
Administrative
Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower
Representative have the right to convert Loans to Eurodollar Loans.

          2.11 Pro Rata Treatment and Payments. (a) Each borrowing by any Borrower from the
Lenders hereunder and any reduction of the Commitments of the Lenders shall be made pro rata
according to the Lenders’ respective Commitments, and each payment by any Borrower on account of
any Commitment Fee shall be distributed by the Administrative Agent pro rata to each Lender
according to the respective amounts thereof owing pursuant to Section 2.3(a)or Section 2.3(b), as
the case may be.

          (b) Each payment (including each prepayment) by any Borrower on account of principal of and
interest on the Loans made to it shall be made pro rata according to the respective
outstanding principal amounts of such Loans then held by the Lenders.

          (c) All payments (including prepayments) to be made by any Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in the currency
required hereunder and in immediately available funds. The Administrative Agent shall distribute
such payments to the Lenders promptly upon receipt in like funds as received. If any payment
hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than
a Business Day, such payment shall be

27

 

extended to the next succeeding Business Day. If any payment
on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day unless the result of such extension
would be to extend such payment into another calendar month, in which event such payment shall be
made on the immediately preceding Business Day. In the case of any extension of any payment of
principal pursuant to the preceding two sentences, interest thereon shall be payable at the then
applicable rate during such extension.

          (d) Unless the Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its share of such
borrowing available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrowers a corresponding amount. If
such amount is not made available to the Administrative Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, at a rate equal to the greater of (i) the Federal Funds Effective Rate and (ii) a
rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation, for the period until such Lender makes such amount immediately available to the
Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest
error. If such Lender’s share of such borrowing is not made available to the Administrative Agent
by such Lender within three Business Days after such Borrowing Date, the Administrative Agent shall
also be entitled to recover such amount with interest thereon at the rate per annum applicable to
ABR Loans, on demand, from the Borrowers.

          (e) Unless the Administrative Agent shall have been notified in writing by the Borrower
Representative prior to the date of any payment due to be made by any Borrower hereunder that such
Borrower will not make such payment to the Administrative Agent, the Administrative Agent may
assume that such Borrower is making such payment, and the Administrative Agent may, but shall not
be required to, in reliance upon such assumption, make available to the Lenders their respective
pro rata shares of a corresponding amount. If such payment is not made to the
Administrative Agent by such
Borrower within three Business Days after such due date, the Administrative Agent shall be
entitled to recover, on demand, from each Lender to which any amount which was made available
pursuant to the preceding sentence, such amount with interest thereon at the rate per annum equal
to the daily average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the
rights of the Administrative Agent or any Lender against such Borrower.

          2.12 Requirements of Law; Eurocurrency Liabilities. (a) If the adoption of or any
change in any Requirement of Law or in the interpretation or application thereof or compliance by
any Lender with any request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority, in each case made subsequent to the date hereof:

     (i) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes covered by Section 2.13 and changes in the rate of tax on the overall
net income of such Lender);

     (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender that is not otherwise included in the determination
of the Eurodollar Rate; or

28

 

     (iii) shall impose on such Lender or the London interbank market any other condition
affecting this Agreement or such Lender’s Loan;

and the result of any of the foregoing is to increase the cost (excluding taxes) to such Lender, by
an amount that such Lender deems to be material, of making, converting into, continuing or
maintaining Eurodollar Loans (or of its obligation to make any such Eurodollar Loan or to
participate in any Letter of Credit), or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower to which such Loans were made shall pay such Lender
any additional amounts necessary to compensate such Lender for such increased cost (excluding
taxes) or reduced amount receivable. If any Lender becomes entitled to claim any additional
amounts pursuant to this paragraph, it shall promptly notify the Company (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled.

          (b) If any Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental Authority, in each
case made subsequent to the date hereof shall have the effect of reducing the rate of return on
such Lender’s or such corporation’s capital as a consequence of its obligations hereunder or under
or in respect of any Letter of Credit to a level below that which such Lender or such corporation
could have achieved but for such adoption, change or compliance (taking into consideration such
Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by
such Lender to be material, then from time to time, after submission by such Lender to the Company
(with a copy to the Administrative Agent) of a written request therefor, the Company shall pay to
such Lender such additional amount or amounts as will compensate such Lender or such corporation
for such reduction.

          (c) The Company agrees to pay to each Lender, for any period that such Lender is required by
applicable law, rule or regulation, or any guideline, request or directive of any governmental
authority (whether or not having the force of law), to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar
Loan (and, for any period during which ABR is determined by reference to the Eurodollar Rate, each
ABR Loan) equal to the costs of such reserves allocated to such Revolving Loan by such Lender (as
determined by such Lender in good faith, which determination shall be conclusive absent manifest
error), which shall be due and payable on each date on which interest is payable on such Revolving
Loan.

          (d) A certificate setting forth in reasonable detail a calculation of the amount of and the
basis for any additional amount payable pursuant to this Section submitted by any Lender to the
Company (with a copy to the Administrative Agent) shall be conclusive in the absence of manifest
error. The Borrower shall pay such Lender the amount shown as due on such certificate within 10
Business Days after receipt by the Borrower. Notwithstanding anything to the contrary in this
Section, the Company shall not be required to compensate a Lender pursuant to clause (a) or (b) of
this Section for any amounts incurred more than six months prior to the date that such Lender
notifies the Company of such Lender’s intention to claim compensation therefor; provided
that, if the circumstances giving rise to such claim have a retroactive effect, then such six-month
period shall be extended to include the period of such retroactive effect. The obligations of the
Company pursuant to this Section shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.

          2.13 Taxes. (a) All payments made by (or on behalf of) any Borrower under this
Agreement or any other Loan Document shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other taxes, levies,
imposts,

29

 

duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding Excluded Taxes. If any
such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings
(“Non-Excluded Taxes”) or Other Taxes are required to be deducted or withheld from any
amounts payable to the Administrative Agent or any Lender hereunder or under any other Loan
Document, (i) the amounts so payable by the applicable Borrower to the Administrative Agent or such
Lender shall be increased to the extent necessary to yield to the Administrative Agent or such
Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts
payable hereunder or under any other Loan Document at the rates or in the amounts specified in this
Agreement or in the applicable Loan Document as if such withholding or deduction had not been made,
(ii) the Borrower shall deduct or withhold such amounts and (iii) the Borrower shall pay the full
amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable
Law; provided, however, that no Borrower shall be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes that are attributable to such
Lender’s failure to comply with the requirements of paragraph (e) of this Section.

          (b) In addition, each Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) Each Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Non-Excluded Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by
or on account of any obligation of such Borrower hereunder or under any other Loan Document
(including Non-Excluded Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section 2.13) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as
to the amount of such payment or liability delivered to such Borrower by a Lender or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.

          (d) Whenever any Non-Excluded Taxes or Other Taxes are payable by a Borrower, as promptly as
possible thereafter such Borrower shall send to the Administrative Agent for its own account or for
the account of the relevant Lender, as the case may be, a certified copy of an original official
receipt received by such Borrower showing payment thereof.

          (e) A Lender that is entitled to an exemption from or reduction of withholding tax under the
law of the jurisdiction in which a Borrower is located, or any treaty to which such jurisdiction is
a party, with respect to payments under this Agreement shall deliver to such Borrower (with a copy
to the Administrative Agent), at the time or times prescribed by applicable law or reasonably
requested by such Borrower or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally entitled to
complete, execute and deliver such documentation and in such Lender’s judgment such completion,
execution or submission would not materially prejudice the legal position of such Lender. To the
extent the Borrower is a “U.S. Person” as defined in Section 7701(a)(30) of the Code (a “U.S.
Borrower”), each Lender (or Transferee) that is not a U.S. Person (a “Non-U.S. Lender”)
shall deliver to such U.S. Borrower and the Administrative Agent (or, in the case of a Participant,
to the Lender from which the related participation shall have been purchased) two copies of U.S.
Internal Revenue Service Form W-8BEN, Form W-8ECI or Form W-81MY, or, in the case of a Non-U.S.
Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the
Code with respect to payments of “portfolio interest”, a statement substantially in the form of
Exhibit E-1 (except for Non-U.S. Lenders that are partnerships for U.S. Federal Income Tax
purposes, which shall deliver a statement substantially in the form of Exhibit E-2) and a
Form W-8BEN or Form

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W-8IMY, or any subsequent versions thereof or successor thereto, properly
completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or a reduced
rate of, U.S. federal withholding tax on all payments by such U.S. Borrower under this Agreement
and the other Loan Documents. Such forms shall be delivered by each Non-U.S. Lender on or before
the date it becomes a Non-U.S. Lender with respect to any U.S. Borrower under this Agreement (or,
in the case of any Participant, on or before the date such Participant purchases the related
participation) or within 10 Business Days of the request by such U.S. Borrower or the
Administrative Agent. Each Non-U.S. Lender shall promptly notify each U.S. Borrower and the
Administrative Agent at any time it determines that it is no longer in a position to provide any
previously delivered certificate to such U.S. Borrower (or any other form of certification adopted
by the U.S. taxing authorities for such purpose). If any Non-U.S. Lender provides a Form W-8IMY,
such Non-U.S. Lender must also attach the additional documentation that must be transmitted with
the Form W-8IMY, including the appropriate forms described in this Section 2.13(e).

          (f) Each Lender shall indemnify the Administrative Agent for the full amount of any taxes,
levies, imposts, duties, charges, fees, deductions, withholdings or similar charges imposed by any
Governmental Authority that are attributable to such Lender and that are payable or paid by the
Administrative Agent, together with all interest, penalties, reasonable costs and expenses arising
therefrom or with respect thereto, as determined by the Administrative Agent in good faith. A
certificate as to the amount of such payment or liability delivered to any Lender by the
Administrative Agent shall be conclusive absent manifest error.

          (g) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of or credit for any Non-Excluded Taxes or Other Taxes as to which it has been
indemnified by a Borrower or with respect to which a Borrower has paid any additional amount
pursuant to this Section, it shall pay over such refund or the amount of such credit to such
Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such
Borrower under this Section with respect to the Non-Excluded Taxes or Other Taxes giving rise to
such refund or credit), net of all reasonable out-of-pocket expenses incurred by the Administrative
Agent or such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund or credit); provided that such Borrower,
upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over
to such Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender if the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority or loses the benefit of
such credit. This Section shall not be construed to require the Administrative Agent or any Lender
to make available its tax returns (or any other information relating to its taxes that it deems
confidential) to any Borrower or any other Person.

          (h) The agreements in this Section shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

          2.14 Indemnity. Each Borrower (and the Borrower Representative) agrees to indemnify
each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may
sustain or incur as a consequence of (a) default by such Borrower in making a borrowing of,
conversion into or continuation of Eurodollar Loans after the Borrower Representative has given a
notice requesting the same in accordance with the provisions of this Agreement, (b) default by such
Borrower in making any prepayment of or conversion from Eurodollar Loans after the Borrower
Representative has given a notice thereof in accordance with the provisions of this Agreement or
(c) the making of a prepayment of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto. Absent any change in circumstances after the date hereof, the amount
of such indemnification is intended to be equal to the excess, if any, of (i) the amount of
interest that would have accrued on the amount so

31

 

prepaid, or not so borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert
or continue, the Interest Period that would have commenced on the date of such failure) in each
case at the applicable rate of interest for such Loans provided for herein (excluding, however, the
Applicable Margin included therein) over (ii) the amount of interest (as reasonably determined by
such Lender) that would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurodollar market. A
certificate as to any amounts payable pursuant to this Section submitted to the applicable Borrower
(or the Borrower Representative) by any Lender shall be conclusive in the absence of manifest
error. This covenant shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

          2.15 Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 2.12(a), 2.12(b) or 2.13(a) with respect to such
Lender, it will, if requested by the Borrower Representative, use reasonable efforts (subject to
overall policy considerations of such Lender) to designate another lending office for any Loans
affected by such event or assign its rights and obligations hereunder to an Affiliate with the
object of avoiding the consequences of such event; provided, that such designation or
assignment is made on terms that, in the sole judgment of such Lender, cause such Lender and its
lending office(s) or such Affiliate, as the case may be, to suffer no economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section shall affect or
postpone any of the obligations of any Borrower or the rights of any Lender pursuant to Section
2.12 or 2.13(a).

          2.16 Replacement of Lenders. The Company shall be permitted to replace any Lender
that (a) requests reimbursement for amounts owing pursuant to Section 2.12(a), 2.12(b) or
2.13(a), (b) refuses to consent to any waiver or amendment with respect to any Loan Document that
requires the approval of each Lender and that has been consented to by the Required Lenders, with a
replacement financial institution or (c) becomes a Defaulting Lender; provided that (i)
such replacement does not conflict with any Requirement of Law, (ii) no Event of Default or Default
shall have occurred and be continuing at the time of such replacement, (iii) prior to any such
replacement, such Lender shall, within 30 days of the Company’s request have taken no action under
Section 2.15 that eliminates the continued need for payment of amounts owing pursuant to Section
2.12 or 2.13(a), (iv) the replacement financial institution shall purchase, at par, all Loans and
other amounts (including accrued interest) owing to such replaced Lender on or prior to the date of
replacement, (v) the Borrowers shall be liable to such replaced Lender under Section 2.14 if any
Eurodollar Loan owing to such replaced Lender shall be purchased other than on the last day of the
Interest Period relating thereto as if it were prepaid on the date of such purchase
(provided that in the case of a replacement pursuant to clause (c) above, the Borrowers
shall only be liable for the positive difference, if any, between (A) any amounts owing by the
Borrowers under Section 2.14 and (B) any obligations owing by such Defaulting Lender to the
Borrowers under the Loan Documents as a result of such Defaulting Lender becoming a Defaulting
Lender), (vi) the replacement financial institution shall be reasonably satisfactory to each
Issuing Lender and the Administrative Agent, (vii) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 11.6 (provided that the
Company shall be obligated to pay the portion of the registration and processing fee referred to
therein), (viii) until such time as such replacement shall be consummated, the Borrowers shall pay
all additional amounts (if any) required pursuant to Section 2.12 or 2.13(a), as the case may be,
and (ix) any such replacement shall not be deemed to be a waiver of any rights that the Borrower,
the Administrative Agent or any other Lender shall have against the replaced Lender.

          2.17 Defaulting Lenders Notwithstanding any provision of this Agreement to the contrary, if
any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as
such Lender is a Defaulting Lender:

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          (a) the Commitment Fee shall cease to accrue for such Defaulting Lender pursuant to Section
2.3(a).

          (b) the Commitment and Extensions of Credit of such Defaulting Lender shall not be included in
determining whether all Lenders or the Required Lenders have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 11.1), provided
that any waiver, amendment or modification (i) requiring the consent of all Lenders or each
affected Lender which affects such Defaulting Lender disproportionately with respect to the other
affected Lenders or (ii) that would increase or extend the term of the Commitment of such
Defaulting Lender shall require the consent of such Defaulting Lender.

          (c) if any L/C Obligations exist at the time a Lender becomes a Defaulting Lender then:

     (i) all or any part of such L/C Obligations shall be reallocated among the
non-Defaulting Lenders in accordance with their respective Commitment Percentages but only
to the extent the sum of all non-Defaulting Lenders’ Extensions of Credit does not exceed
the total of all non-Defaulting Lenders’ Commitments; and

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the applicable Borrower shall within one Business Day following notice by the
Administrative Agent, (A) in the case of Unsecured Letters of Credit, cash collateralize
such Defaulting Lender’s L/C Obligations (after giving effect to any partial reallocation
pursuant to clause (i) above) in accordance with the procedures set forth in Section 8 for
so long as such L/C Obligations is outstanding or (B) in the case of Secured Letters of
Credit, ensure that the Borrowing Base includes an amount of cash equal to or greater than
the Defaulting Lender’s L/C Obligations (after giving effect to any partial reallocation
pursuant to clause (i) above) for so long as such L/C Obligations are outstanding;

     (iii) the Borrower cash collateralizes any portion of such Defaulting Lender’s L/C
Obligations pursuant to this Section 2.17(c), the Borrower shall not be required to pay any
fees to such Defaulting Lender pursuant to Section 3.3(a) with respect to such Defaulting
Lender’s L/C Obligations during the period such Defaulting Lender’s L/C Obligations is cash
collateralized;

     (iv) if the L/C Obligations of the non-Defaulting Lenders is reallocated pursuant to
this Section 2.17(c) then the fees payable to the Lenders pursuant to Section 2.3(a)and
Section 3.3(a) shall be adjusted in accordance with such non-Defaulting Lenders’ Commitment
Percentages; or

     (v) if any Defaulting Lender’s L/C Obligations is neither cash collateralized nor
reallocated pursuant to this Section 2.17(c), then, without prejudice to any rights or
remedies of any Issuing Lender or any Lender hereunder, all letter of credit fees payable
under Section 3.3 with respect to such Defaulting Lender’s L/C Obligations shall be payable
to the applicable Issuing Lender until such L/C Obligations are cash collateralized and/or
reallocated.

          (d) so long as any Lender is a Defaulting Lender, no Applicable Issuing Party shall be
required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related
exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by the Borrower in accordance with Section 2.17(c), and participating
interests or Commitment Shares in any such newly issued or increased Letter of Credit shall be
allocated among non-Defaulting

33

 

Lenders in a manner consistent with Section 2.17(c)(i) (and
Defaulting Lenders shall not participate therein).

          (e) any amount payable to such Defaulting Lender hereunder (whether on account of principal,
interest, fees or otherwise and including any amount that would otherwise be payable to such
Defaulting Lender pursuant to Section 11.7 but excluding Section 2.16) shall, in lieu of being
distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated
account and, subject to any applicable requirements of law, be applied at such time or times as may
be determined by the Administrative Agent (i) first, to the payment of any amounts owing by
such Defaulting Lender to the Administrative Agent hereunder, (ii) second, pro rata, to the
payment of any amounts owing by such Defaulting Lender to the Applicable Issuing Parties hereunder,
(iii) third, if so determined by the Administrative Agent or requested by an Applicable
Issuing Party, to be held in such account as cash collateral for future funding obligations of the
Defaulting Lender of any participating interest or Commitment Share in any Letter of Credit, (iv)
fourth, to the funding of any Loan in respect of which such Defaulting Lender has failed to
fund its portion thereof as required by this Agreement, as determined by the Administrative Agent,
(v) fifth, if so determined by the Administrative Agent and the Borrower, held in such
account as cash collateral for future funding obligations of the Defaulting Lender of any Loans
under this Agreement, (vi) sixth, to the payment of any amounts owing to the Lenders or an
Issuing Lender as a result of any judgment of a court of competent jurisdiction obtained by any
Lender or such Issuing Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its
obligations under this Agreement, (vii) seventh, to the payment of any amounts owing
to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the
Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement, and (viii) eighth, to such Defaulting Lender or as
otherwise directed by a court of competent jurisdiction; provided that if such payment is
(x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of a
payment made by an Issuing Lender pursuant to a Letter of Credit for which a Defaulting Lender has
funded its participation obligations and (y) made at a time when the conditions set forth in
Section 5.3 are satisfied, such payment shall be applied solely to prepay the Loans of, and
reimbursement obligations owed to, all non-Defaulting Lenders pro rata prior to being applied to
the prepayment of any Loans, or reimbursement obligations owed to, any Defaulting Lender.

     In the event that the Administrative Agent, the Borrower and each Issuing Lender agree that a
Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting
Lender, then the L/C Obligations of the Lenders shall be readjusted to reflect the inclusion of
such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of
the other Lenders as the Administrative shall determine may be necessary in order for such Lender
to hold such Loans in accordance with its Commitment Percentage.

SECTION 3 LETTERS OF CREDIT

          3.1 L/C Commitment. (a) Subject to the terms and conditions hereof, the Applicable
Issuing Party, in reliance on the agreements of the other Lenders set forth in Sections 3.4(a) and
3.8(b), agrees to issue letters of credit (“Letters of Credit”) for the account of the
Borrowers on any Business Day during the Commitment Period (i) in the case of Fronted Letters of
Credit, in such form as may be approved from time to time by such Issuing Lender and (ii) in the
case of Several Letters of Credit, substantially in the form of Exhibit L; provided
that such Applicable Issuing Party shall have no obligation to issue any Letter of Credit if, after
giving effect to such issuance, the aggregate amount of the Available Commitments would be less
than zero and, provided, further, that, if any Issuing Lender shall issue any
Fronted Letter of Credit that results in the aggregate amount of the Available Commitments being
less than zero without having received prior written confirmation from the Administrative Agent
that the issuance of such Fronted Letter of Credit would not result in the aggregate amount of the

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Available Commitments being less than zero, the provisions of Section 3.4 shall be applicable to
such Fronted Letter of Credit only to the extent of the portion thereof (the “Participated
Portion”) that, if such Fronted Letter of Credit had been issued in an amount equal to the
Participated Portion, would not have resulted in the aggregate amount of the Available Commitment
being less than zero and the portion of such Fronted Letter of Credit (and any related
Reimbursement Obligations) that does not constitute the Participated Portion shall be subject and
subordinate in right of payment and as to priority of the security provided by the Collateral to
all other Obligations. Each Letter of Credit shall (i) be denominated in Dollars or Pounds
Sterling and (ii) expire no later than the earlier of (x) the first anniversary of its date of
issuance and (y) the date that is five Business Days prior to the Termination Date;
provided that any Letter of Credit with a one-year term may provide for the renewal thereof
at the option of the applicable Borrower for additional one-year periods (which shall in no event
extend beyond the date referred to in clause (y) above), so long as the Issuing Lender of such
Letter of Credit has the right to refuse to extend such Letter of Credit if at the time of such
refusal the applicable Borrower would be unable to satisfy the conditions set forth in Section
5.3; provided further that any Secured Letter of Credit may have an expiration
date up to 364 days after the Termination Date.

          (b) No Applicable Issuing Party shall at any time issue (i) any Letter of Credit if such
issuance would conflict with, or cause such Applicable Issuing Party, any L/C Participant or any
Lender to exceed any limits imposed by, any applicable Requirement of Law or (ii) any Secured
Letter of Credit on behalf of any Borrower if (x) the then Borrowing Base of such Borrower would be
less than such Borrower’s aggregate Secured L/C Obligations after giving effect to the issuance of
such Secured Letter of Credit or (y) all cash and Eligible Securities constituting such Borrowing
Base are not then held in an Account of such Borrower established pursuant to Section 1 of Article
II of the applicable Collateral Account Control Agreement. Prior to issuing any Secured Letter of
Credit, the Applicable Issuing Party shall obtain confirmation from the Administrative Agent that
the requirements imposed by clause (ii) of the preceding sentence shall be satisfied.

          3.2 Procedure for Issuance of Letter of Credit. Any Borrower may from time to time
request that an Applicable Issuing Party issue a Letter of Credit by delivering to such Applicable
Issuing Party at its address for notices specified herein an Application therefor, indicating (i)
whether such Letter of Credit is to be a Secured Letter of Credit or an Unsecured Letter of Credit
and (ii) whether such Letter of Credit is to be a Fronted Letter of Credit or a Several Letter of
Credit and otherwise completed to the satisfaction of such Applicable Issuing Party, and such other
certificates, documents and other papers and information as such Applicable Issuing Party may
request; provided that in no event shall any Applicable Issuing Party other than Barclays
Bank PLC or Citibank, N.A. and, with the consent of the Administrative Agent, one other Issuing
Lender (and any of their respective Affiliates) issue any Letter of Credit denominated in Pounds
Sterling. Upon receipt of any Application, the Applicable Issuing Party will process such
Application and the certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall promptly issue the
Letter of Credit requested thereby (but in no event shall any Applicable Issuing Party be required
to issue any Letter of Credit earlier than three Business Days after its receipt of the Application
therefor and all such other certificates, documents and other papers and information relating
thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by such Applicable Issuing Party and such Borrower. Such Applicable
Issuing Party shall furnish a copy of such Letter of Credit (i) to such Borrower promptly following
the issuance thereof and (ii) in the case of a Several Letter of Credit, to each Lender. Each
Applicable Issuing Party shall promptly furnish to the Administrative Agent, which shall in turn
promptly furnish to the Lenders, notice of the issuance of each Letter of Credit (including the
amount thereof).

          3.3 Fees and Other Charges. (a) The applicable Borrower will pay to the
Administrative Agent, for the account of the Lenders, a fee on the undrawn and unexpired face
amount

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(calculated, in the case of any Letter of Credit denominated in Pounds Sterling, on the
basis of the Exchange Rate in effect on the date payment of such fee is due) of each Letter of
Credit issued on its behalf at a per annum rate equal to (i) in the case of an Unsecured Letter of
Credit, the Applicable Margin then in effect with respect to Eurodollar Loans and (ii) in the case
of a Secured Letter of Credit, 0.50%. Such fees shall be payable quarterly in arrears on each Fee
Payment Date after the issuance date. The Administrative Agent will promptly pay to the Lenders
their pro rata shares of any amounts received from the Borrowers in respect of any such fees.

          (b) The applicable Borrower shall pay to each Issuing Lender for its own account a fronting
fee at a rate per annum as agreed between such Borrower and such Issuing Lender on the undrawn and
unexpired amount of each Fronted Letter of Credit issued on its behalf, payable quarterly in
arrears on each Fee Payment Date after the issuance date.

          (c) In addition to the foregoing fees, the applicable Borrower shall pay or reimburse (i) each
Applicable Issuing Party for such normal and customary costs and expenses as are incurred or
charged by such Applicable Issuing Party in issuing, negotiating, effecting payment under, amending
or
otherwise administering any Letter of Credit and (ii) each Lender for such normal and
customary costs and expenses as are incurred or charged by such Lender in connection with any
Several Letter of Credit.

          3.4 L/C Participations. (a) Each Issuing Lender irrevocably agrees to grant and
hereby grants to each L/C Participant, and, to induce such Issuing Lender to issue Fronted Letters
of Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions set forth below, for such L/C
Participant’s own account and risk an undivided interest equal to such L/C Participant’s Commitment
Percentage in such Issuing Lender’s obligations and rights under and in respect of each Fronted
Letter of Credit and the amount of each draft paid by such Issuing Lender thereunder. Each L/C
Participant agrees with each Issuing Lender that, if a draft is paid under any Fronted Letter of
Credit for which such Issuing Lender is not reimbursed in full by the applicable Borrower in
accordance with the terms of this Agreement, such L/C Participant shall pay to such Issuing Lender
upon demand at such Issuing Lender’s address for notices specified herein an amount in Dollars
equal to such L/C Participant’s Commitment Percentage of (i) the amount of such draft, or any part
thereof, that is paid in Dollars and is not so reimbursed or (ii) the Dollar Equivalent, using the
Exchange Rate at the time such draft is paid, of the amount of such draft, or any part thereof,
that is paid in Pounds Sterling and is not so reimbursed. Each L/C Participant’s obligation to pay
such amount shall be absolute and unconditional and shall not be affected by any circumstance,
including (i) any setoff, counterclaim, recoupment, defense or other right that such L/C
Participant may have against the applicable Issuing Lender, any Borrower or any other Person for
any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or
the failure to satisfy any of the other conditions specified in Section 5, (iii) any adverse
change in the condition (financial or otherwise) of any Borrower, (iv) any breach of this Agreement
or any other Loan Document by any Borrower or any other L/C Participant or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of the foregoing

          (b) If any amount required to be paid by any L/C Participant to an Issuing Lender pursuant to
Section 3.4(a)in respect of any unreimbursed portion of any payment made by such Issuing
Lender under any Fronted Letter of Credit is paid to such Issuing Lender within three Business Days
after the date such payment is due, such L/C Participant shall pay to such Issuing Lender on demand
an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds
Effective Rate during the period from and including the date such payment is required to the date
on which such payment is immediately available to such Issuing Lender, times (iii) a fraction the
numerator of which is the number of days that elapse during such period and the denominator of
which is 360. If any such amount required to be paid by any L/C Participant pursuant to Section
3.4(a) is not made available to the applicable Issuing

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Lender by such L/C Participant
within three Business Days after the date such payment is due, such Issuing Lender shall be
entitled to recover from such L/C Participant, on demand, such amount with interest thereon
calculated from such due date at the rate per annum applicable to ABR Loans. A certificate of an
Issuing Lender submitted to any L/C Participant with respect to any amounts owing under this
Section shall be conclusive in the absence of manifest error.

          (c) Whenever, at any time after the applicable Issuing Lender has made payment under any
Fronted Letter of Credit and has received from any L/C Participant its pro rata
share of such payment in accordance with Section (a), such Issuing Lender receives any
payment related to such Fronted Letter of Credit (whether directly from the applicable Borrower or
otherwise, including proceeds of collateral applied thereto by such Issuing Lender), or any payment
of interest on account thereof, such Issuing Lender will distribute to such L/C Participant its
pro rata share thereof; provided, however, that in the event that
any such payment received by such Issuing Lender shall be required to be returned by such
Issuing Lender, such L/C Participant shall return to such Issuing Lender the portion thereof
previously distributed by such Issuing Lender to it.

          (d) This Section 3.4 shall be subject to the provisions of the second proviso to the first
sentence of Section 3.1(a).

          3.5 Reimbursement Obligation of the Borrowers. If any draft is paid under any Letter
of Credit, the applicable Borrower shall reimburse the L/C Issuer for the amount of (a) the draft
so paid and (b) any taxes, fees, charges or other costs or expenses incurred by such Issuing Lender
in connection with such payment, not later than 12:00 Noon, New York City time, on (i) the Business
Day that such Borrower receives notice of such draft, if such notice is received on such day prior
to 10:00 A.M., New York City time, or (ii) if clause (i) above does not apply, the Business Day
immediately following the day that such Borrower receives such notice. Each such payment under a
Letter of Credit denominated in Dollars shall be made to the L/C Issuer at its address for notices
specified herein (or as otherwise specified) in Dollars in immediately available funds. Each such
payment under a Letter of Credit denominated in Pounds Sterling shall be made to the L/C Issuer at
its address for notices specified herein (or as otherwise specified) in Pounds Sterling in
immediately available funds. Interest shall be payable on any such amounts from the date on which
the relevant draft is paid until payment in full at the rate set forth in (x) until the Business
Day next succeeding the date of the relevant notice, Section 2.8(b) and (y) thereafter, Section
2.8(c).

          3.6 Obligations Absolute. The Borrowers’ obligations under this Section 3 shall be
absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that any Borrower may have or have had against any L/C Issuer,
any beneficiary of a Letter of Credit or any other Person. The Borrowers also agree with each L/C
Issuer that such L/C Issuer shall not be responsible for, and the Borrowers’ Reimbursement
Obligations under Section 3.5 shall not be affected by, among other things, the validity or
genuineness of documents or of any endorsements thereon, even though such documents shall in fact
prove to be invalid, fraudulent or forged, or any dispute between or among any Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be
transferred or any claims whatsoever of any Borrower against any beneficiary of such Letter of
Credit or any such transferee. No L/C Issuer shall be liable for any error, omission, interruption
or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in
connection with any Letter of Credit, except for errors or omissions found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such L/C Issuer. The Borrowers agree that any action taken or
omitted by any L/C Issuer under or in connection with any Letter of Credit or the related drafts or
documents, if done in the absence of gross negligence or willful misconduct, shall be binding on
the Borrower and shall not result in any liability of such L/C Issuer to any Borrower.

37

 

          3.7 Letter of Credit Payments. If any draft shall be presented for payment under any
Letter of Credit, the Applicable Issuing Party shall promptly notify the applicable Borrower of the
date and amount thereof. The responsibility of the Applicable Issuing Party to the applicable
Borrower in connection with any draft presented for payment under any Letter of Credit shall, in
addition to any payment obligation expressly provided for in such Letter of Credit, be limited to
determining that the documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such Letter of Credit.

          3.8 Several Letter of Credit.

          (a) The L/C Administrator is hereby authorized to execute and deliver each Several Letter of
Credit and each amendment to a Several Letter of Credit on behalf of each Lender provided that,
upon request of the Borrower, such Several Letter of Credit or amendment will be executed by each
Lender. The L/C Administrator shall use the Commitment Percentage of each Lender as its
“Commitment Share” under each Several Letter of Credit. The L/C Administrator shall not
amend any Several Letter of Credit to change the “Commitment Shares” of any Lender or add or delete
a Lender liable thereunder unless such amendment is done in connection with an assignment in
accordance with Section 11.6, a change in the Lenders and/or the Commitment Percentages as a
result of any increase in the Commitments pursuant to Section 2.1 or any other addition or
replacement of a Lender in accordance with the terms of this Agreement. Each Lender hereby
irrevocably constitutes and appoints the L/C Administrator its true and lawful attorney-in-fact for
and on behalf of such Lender with full power of substitution and revocation in its own name or in
the name of the L/C Administrator to issue, execute and deliver, as the case may be, each Several
Letter of Credit and each amendment to a Several Letter of Credit and to carry out the purposes of
this Agreement with respect to Several Letters of Credit. Upon request, each Lender shall execute
such powers of attorney or other documents as any beneficiary of any Several Letter of Credit may
reasonably request to evidence the authority of the L/C Administrator to execute and deliver such
Several Letter of Credit and any amendment or other modification thereto on behalf of the Lenders.
To the extent that the L/C Administrator has not received funds from a Lender with respect to a
Several Letter of Credit, the L/C Administrator shall only forward the funds actually received to
the beneficiary.

          (b) Each Lender agrees with the L/C Administrator that, if a draft is paid under any Several
Letter of Credit for which such L/C Administrator is not reimbursed in full by the applicable
Borrower in accordance with the terms of this Agreement, each Lender shall pay to the L/C
Administrator upon demand at the L/C Administrator’s address for notices specified herein an amount
in Dollars (in the case of a Several Letter of Credit denominated in Dollars) or Pounds Sterling
(in the case of a Several Letter of Credit denominated in Pounds Sterling) equal to such Lender’s
Commitment Share. Each Lender’s obligation to pay such amount shall be absolute and unconditional
and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment,
defense or other right that such Lender may have against the L/C Administrator, any Borrower or any
other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event
of Default or the failure to satisfy any of the other conditions specified in Section 5, (iii) any
adverse change in the condition (financial or otherwise) of any Borrower, (iv) any breach of this
Agreement or any other Loan Document by any Borrower or any other Lender or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

          (c) The obligations of each Lender under and in respect of each Several Letter of Credit are
several, and the failure by any Lender to perform its obligations hereunder or under any Several
Letter of Credit shall not affect the obligations of the Borrowers toward any other party hereto
nor shall any other such party be liable for the failure by such Lender to perform its obligations
hereunder or under any Several Letter of Credit.

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          3.9 Applications. To the extent that any provision of any Application related to any
Letter of Credit is inconsistent with the provisions of this Section 3, the provisions of this
Section 3 shall apply.

          3.10 Additional Issuing Lenders. The Borrower may, at any time and from time to time
with the consent of the Administrative Agent (which consent shall not be unreasonably withheld) and
such Lender, designate one or more additional Lenders to act as an issuing lender under the terms
of this Agreement; provided that the total number of Issuing Lenders at any time shall not
exceed four. Any Lender designated as an Issuing Lender pursuant to this Section 3.10 shall be
deemed to be an “Issuing Lender” for the purposes of this Agreement (in addition to being a Lender)
with respect to Letters of Credit issued by such Lender.

          3.11 Reporting. Unless the Administrative Agent otherwise agrees, each Applicable
Issuing Party will report in writing to the Administrative Agent (i) on the first Business Day of
each week and on the second Business Day to occur after the last day of each March, June, September
and December, and on such other dates as the Administrative Agent may reasonably request, the daily
activity during the preceding week, calendar quarter or other period, as the case may be, with
respect to Letters of Credit issued by it, including the aggregate outstanding L/C Obligations with
respect to such Letters of Credit on each day during such week, quarter or other period, in such
form and detail as shall be satisfactory to the Administrative Agent, (ii) on any Business Day on
which the Borrower fails to pay any Reimbursement Obligation required to be reimbursed to such
Applicable Issuing Party on such day, the date of such failure and the amount of such Reimbursement
Obligation and (iii) such other information with respect to Letters of Credit issued by such
Applicable Issuing Party as the Administrative Agent may reasonably request.

SECTION 4 REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into this Agreement and to make
the Extensions of Credit, the Company hereby represents and warrants to the Administrative Agent
and each Lender that:

          4.1 Financial Conditions. The audited consolidated balance sheet of the Company and
its Subsidiaries as at December 31, 2009, and the related consolidated statement of comprehensive
income and of cash flows for the fiscal year ended on such date, reported on by and accompanied by
an unqualified report from KPMG Audit Plc, present fairly the consolidated financial condition of
the Company and its Subsidiaries as at such date, and the consolidated results of its operations
and its consolidated cash flows for the fiscal year then ended. The unaudited consolidated balance
sheet of the Company and its Subsidiaries as at March 31, 2010, and the related unaudited
consolidated statements of comprehensive income and cash flows for the three-month period ended on
such date, present fairly the consolidated financial condition of the Company and its Subsidiaries
as at such date, and the consolidated results of its operations and its consolidated cash flows for
the three-month period then ended (subject to normal year-end audit adjustments). All such
financial statements, including the related schedules and notes thereto, have been prepared in
accordance with GAAP applied consistently throughout the periods involved (except as approved by
the aforementioned firm of accountants and disclosed therein). As of the date of this Agreement,
no Group Member has any material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any material long-term leases or material unusual forward or long-term commitments,
including any Swap Contracts, that are not reflected in the most recent financial statements
referred to in this paragraph. During the period from December 31, 2009 to and including the date
of this Agreement there has been no Disposition by any Group Member of any material part of its
business or property.

39

 

          4.2 No Change. Since December 31, 2009, there has been no development or event
that has had or could reasonably be expected to have a Material Adverse Effect.

          4.3 Existence; Compliance with Law. Each Group Member (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, (b) has the
power and authority, and the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently engaged, (c) is duly
qualified as a foreign corporation or other organization and in good standing under the laws of
each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification except where the failure to so qualify or be in good standing
would not have a Material Adverse Effect and (d) is in compliance with all Requirements of Law
(including the Bermuda Companies Law and Bermuda Insurance Law as applicable to the Company and
each Subsidiary organized under the laws of Bermuda) except to the extent that the failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect. Neither the Company nor any Subsidiary is subject to any Private Act.

          4.4 Power; Authorization; Enforceable Obligations. (a) Each Borrower has or will
have the power and authority, and the legal right, to make, deliver and perform the Loan Documents
to which it is a party and to obtain Loans and Letters of Credit hereunder, and each Borrower has
or will have taken all necessary organizational action to authorize the execution, delivery and
performance of the Loan Documents to which it is a party and to authorize the borrowings, and the
issuance of Letters of Credit on its behalf, on the terms and conditions of this Agreement. No
consent or authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the Loans or Letters of
Credit or with the execution, delivery, performance, validity or enforceability of this Agreement
or any other Loan Document, except (i) consents, authorizations, filings and notices that have been
obtained or made and are in full force and effect and (ii) filings necessary to perfect Liens in
favor of the Collateral Agent. Each Loan Document has been duly executed and delivered on behalf
of each Borrower which is a party thereto. This Agreement constitutes, and each other Loan
Document upon execution will constitute, a legal, valid and binding obligation of each Borrower
which is a party thereto, enforceable against each Borrower in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

          (b) Under the laws of the jurisdiction of its incorporation in force at the date hereof, no
Borrower will be required to make any deduction or withholding from any payment it may make
hereunder or under the Notes.

          (c) The claims of the Collateral Agent and the Lenders against each Borrower under this
Agreement and the Notes will rank at least pari passu with the claims of all its
other unsecured creditors under the laws of (i) the jurisdiction of such Borrower’s incorporation
and (ii) New York, except creditors whose claims are preferred solely by any bankruptcy,
insolvency or other similar law of general application governing the enforcement of creditors’
rights.

          (d) In any proceedings taken in Bermuda in relation to this Agreement, the choice of New York
law as the governing law of this Agreement, and any judgment obtained in the United States,
will be recognized and enforced (other than a judgment for a sum payable in respect of taxes
or other charges of a like nature, or in respect of multiple damages as defined in The Protection
of Trading Interests Act 1981 of Bermuda), provided that (i) the court which rendered the
judgment was competent to hear the action in accordance with private international law principles
as applied in Bermuda and (ii) the judgment is not contrary to public policy (and the Company is
not aware of anything contrary to

40

 

public policy) in Bermuda, has not been obtained by fraud or in
proceedings contrary to natural justice and is not based on an error in Bermuda law.

          (e) Under the laws of Bermuda it is not necessary that this Agreement, the Notes or any other
Loan Document be filed, recorded or enrolled with any court or other authority in such jurisdiction
or that any stamp, registration or similar tax be paid on or in relation with this Agreement, the
Notes or such other Loan Document.

          4.5 No Legal Bar. The execution, delivery and performance of this Agreement and the
other Loan Documents, the borrowings hereunder and the use of the proceeds thereof will not violate
any Requirement of Law or any Contractual Obligation of any Group Member and will not result in, or
require, the creation or imposition of any Lien on any of their respective properties or revenues
pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created
by the Security Documents and except, in the case of Contractual Obligations, to the extent that
the failure of any of the statements in this Section 4.5 to be accurate could not reasonably be
expected to have a Material Adverse Effect).

          4.6 Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending, or, to the knowledge of any Borrower, threatened,
by or against any Group Member or against any of their respective properties or revenues (a) with
respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or
(b) that could reasonably be expected to have a Material Adverse Effect.

          4.7 No Default. No Group Member is in default under or with respect to any of its
Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing.

          4.8 Ownership of Property; Liens. Each of the Company and each Material Subsidiary
has good title to, or a valid leasehold interest in all its real and personal property material to
its business except for minor defects in title that could not reasonably be expected to have a
Material Adverse Effect, and none of such property is subject to any Lien not permitted by Section
7.6.

          4.9 Taxes. Each Group Member has filed or caused to be filed all Federal, state and
other material tax returns that are required to be filed and has paid all taxes shown to be due and
payable on said returns (other than any the amount or validity of which are currently being
contested in good faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided on the
books of the relevant Group Member except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect); no material tax Lien has been filed
against any Group Member; and, to the knowledge of any Borrower, no claim is being asserted with
respect to any tax return or for any unpaid taxes that, individually or in the aggregate for all
such claims, would reasonably be expected to have a Material Adverse Effect.

          4.10 Federal Regulations No Borrower is engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U), and no
proceeds of any Loan will be used to purchase or carry any such margin stock or to extend credit to
others for the purpose of purchasing or carrying any such margin stock in contravention of
Regulation T, U or X of the Board. If requested by any Lender or the Administrative Agent, the
Company will furnish to the Administrative Agent and each Lender a statement to the foregoing
effect in conformity with the requirements of FR Form G-3 or FR Form U-1, as applicable, referred
to in Regulation U.

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          4.11 ERISA. Except as would not reasonably be expected to result in a Material
Adverse Effect, (i) neither a Reportable Event nor a failure to satisfy the minimum funding
standards (within the meaning of Sections 412 or 430 of the Code or Section 302 of ERISA), whether
or not waived, has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Single Employer Plan, and each Single
Employer Plan has complied in all material respects with the applicable provisions of ERISA and the
Code; (ii) no termination of a Single Employer Plan has occurred (other than a standard termination
within the meaning of Section 4041(b) of ERISA), and no Lien in favor of the PBGC or a Plan has
arisen, during such five-year period; (iii) there has been no determination that any Single
Employer Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430 of
the Code or Section 303 of ERISA and (iv) none of the Borrowers or any Commonly Controlled Entity
has failed to make by its due date a required installment under Section 430(j) of the Code with
respect to any Single Employer Plan nor failed to make by its due date a required contribution with
respect to a Multiemployer Plan. Except as would not reasonably be expected to result in a
Material Adverse Effect, none of the Borrowers nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan that has resulted or could reasonably be
expected to result in a material liability under ERISA, and none of the Borrowers nor any Commonly
Controlled Entity would become subject to any material liability under ERISA if such Borrower or
any such Commonly Controlled Entity were to withdraw completely from all Multiemployer Plans as of
the valuation date most closely preceding the date on which this representation is made or deemed
made. Except as would not reasonably be expected to result in a Material Adverse Effect, no such
Multiemployer Plan is in Reorganization, Insolvent, or in “endangered” or “critical” status (within
the meaning of Section 432 of the Code or Section 305 of ERISA).

          4.12 Investment Company Act. No Borrower is an “investment company”, or a company
“controlled” by, or an “affiliated person” of, or “principal underwriter” for, an “investment
company”, within the meaning of the Investment Company Act of 1940.

          4.13 Subsidiaries. Schedule 4.13 sets forth, as of the date of this
Agreement, the name and jurisdiction of incorporation of each Subsidiary and, as to each such
Subsidiary, the percentage of each class of Capital
Stock owned by the Company or any other Subsidiary, and such Schedule indicates each
Subsidiary Borrower as of such date.

          4.14 Use of Proceeds. The proceeds of the Extensions of Credit shall be used (i) to
finance the working capital needs of the Company and its Subsidiaries and (ii) for general
corporate purposes of the Company and its Subsidiaries.

          4.15 Environmental Matters. Except as, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect:

     (a) none of the Group Members has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law;

     (b) none of the Group Members has become subject to liability under any Environmental
Law;

     (c) none of the Group Members has received notice of any claim with respect to any
liability under any Environmental Law;

     (d) the facilities and properties owned, leased or operated by any Group Member (the
“Properties”) do not contain any Hazardous Materials in amounts or concentrations or under

42

 

circumstances that could reasonably be expected to give rise to liability under any
Environmental Law; and

     (e) Hazardous Materials have not been transported or disposed by any Group Member in a
manner or to a location that could reasonably be expected to give rise to liability under
any Environmental Law.

          4.16 Accuracy of Information, etc. To the best of the Company’s knowledge, the
Confidential Information Memorandum, taken as a whole, is correct in all material respects as of
the date thereof and does not, as of the date thereof, contain any untrue statement of a material
fact or omit any material fact necessary to make the statements therein (taken as a whole) not
misleading as of such date in light of the circumstances under which they were made;
provided, however, that this representation does not extend to (i) any projections and
other forward looking statements contained in the Confidential Information Memorandum (the
“Projections”) and (ii) information in the Confidential Information Memorandum which is
referenced to a specific source or derived from public or other sources. The Projections contained
in the Confidential Information Memorandum have been prepared in good faith based upon assumptions
reasonably believed by the Company to be reasonable at the time of preparation, it being
understood, and the Administrative Agent and each Lender understands that the Projections are
subject to significant uncertainties and contingencies many of which are beyond the control of the
Company and there can be no assurances that such Projections will be realized.

          No written statement or information delivered by any Borrower to the Administrative Agent, the
Syndication Agent, the Collateral Agent or the Lenders contained in this Agreement or any
other Loan Document, taken as a whole, contains any untrue statement of a material fact or
omits any material fact necessary to make the statements therein (taken as a whole) not misleading
as of the date of such statement or information in light of the circumstances under which they were
provided.

SECTION 5 CONDITIONS PRECEDENT

          5.1 Conditions to Initial Extensions of Credit. The agreement of each Lender to make
the initial extension of credit requested to be made by it is subject to the satisfaction, prior to
or concurrently with the making of such extension of credit, of the following conditions precedent:

          (a) Credit Agreement. The Administrative Agent shall have received this Agreement,
executed and delivered by the Administrative Agent, the Syndication Agent, the Collateral Agent,
each Borrower and each Person listed on Schedule 1.1.

          (b) Fees. The Lenders, the Administrative Agent, the Syndication Agent and the
Collateral Agent shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of legal counsel), on or
before the Closing Date.

          (c) Closing Certificate; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) a certificate of the Company,
dated the Closing Date, substantially in the form of Exhibit B-1 and a certificate of each
other Borrower, dated the Closing Date, substantially in the form of Exhibit B-2, in each
case, with appropriate insertions and attachments, including the Memorandum of Association,
Articles of Incorporation or other organizational documents for each Borrower certified by the
appropriate Governmental Authority of Bermuda, in the case of the Company, and by the appropriate
Governmental Authority of the relevant jurisdiction of organization, in the case of each other
Borrower, and By-laws (or equivalent) for each Borrower and (ii) a certificate of compliance/good
standing for each Borrower from its jurisdiction of organization.

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          (d) Legal Opinions. The Administrative Agent shall have received the executed legal
opinions:

     (i) the legal opinion of Mayer Brown LLP, counsel to the Company and its Subsidiaries,
substantially in the form of Exhibit D-1; and

     (ii) the legal opinion of Appleby Global, counsel to the Company, substantially in the
form of Exhibit D-2.

Each such legal opinion shall cover such other matters incident to the transactions contemplated by
this Agreement as the Administrative Agent may reasonably require.

          (e) Termination of Terminating Credit Agreements. The Administrative Agent shall have
received a payoff letter executed by a duly authorized officer of the Company providing that the
commitments of the lenders parties to the Terminating Credit Agreement to make loans thereunder
shall have been terminated, and all outstanding loans made pursuant to the Terminating Credit
Agreement and all other obligations of the Borrowers thereunder shall have been paid in full in
cash, and all liens and all security interests related thereto shall have been terminated or
released contemporaneous with such repayment.

          (f) Consents, Etc. Each Borrower shall have received, on reasonably satisfactory
terms, all consents and authorizations required pursuant to any Contractual Obligation with any
other Person and shall have obtained all permits of, and effected all notices to and filings with,
any Governmental Authority, in each case, as may be necessary to allow each Borrower lawfully to
execute, deliver and perform, in all material respects, its obligations hereunder and under the
other Loan Documents to which it is, or shall be, a party and each other agreement or instrument to
be executed and delivered by it pursuant thereto or in connection therewith.

          (g) Other Information. The Administrative Agent and each Lender shall have received
such information as it shall have reasonably requested to comply with all applicable
“know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act.

          5.2 Conditions to Secured Letters of Credit. The agreement of each Applicable Issuing
Party to issue the Secured Letters of Credit shall become effective on the 5th (fifth)
Business Day following the satisfaction of the following conditions precedent:

          (a) Security Documents. The Administrative Agent shall have received each Security
Document, executed and delivered by each Borrower and each other party thereto.

          (b) Legal Opinions. The Administrative Agent shall have received the executed legal
opinions:

     (i) the legal opinion of Mayer Brown LLP, counsel to the Company and its Subsidiaries;
and

     (ii) the legal opinion of Appleby Global, counsel to the Company.

Each such legal opinion shall cover such matters incident to the Security Documents and the Secured
Letters of Credit as the Administrative Agent may reasonably require.

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          (c) Uniform Commercial Code Financing Statements. The Collateral Agent shall file UCC
financing statements with respect to the securities held under each Collateral Account Control
Agreement (i) in New York, (ii) in the jurisdiction of organization of each Borrower organized
under the laws of any state of the United States, (iii) in the District of Columbia for each
Borrower not organized under the laws of a state of the United States and (iv) in the state of the
United States in which a Borrower not organized under the laws of a state of the United States
maintains its chief executive office as such office is identified to the Collateral Agent by such
Borrower. It being understood, that the Collateral Agent shall have no duties or responsibilities
with respect to any Liens on, or the validity, perfection or priority of any security interest in
respect of, the Collateral other than (i) to file the above described financing statements and
continuation statements and (ii) as provided pursuant to the terms of the Security Agreement and
each Collateral Account Control Agreement.

          (d) Consents, Etc. Each Borrower shall have received, on reasonably satisfactory
terms, all consents and authorizations required pursuant to any Contractual Obligation with any
other Person and shall have obtained all permits of, and effected all notices to and filings with,
any Governmental Authority, in each case, as may be necessary to allow each Borrower lawfully to
create and perfect the Liens on the Collateral to be owned by such Borrower in the manner and for
the purpose contemplated by the Loan Documents.

          (e) Fees. The Lenders, the Administrative Agent, the Syndication Agent and the
Collateral Agent shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of legal counsel), on or
before the date that the conditions contained in this Section 5.2 have been satisfied.

          5.3 Conditions to Each Extension of Credit. The agreement of each Lender to make any
Extension of Credit requested to be made by it on any date (including its initial Extension of
Credit) is subject to the satisfaction of the following conditions precedent:

     (a) Representations and Warranties. Each of the representations and warranties
made by any Borrower in the Loan Documents shall be true and correct on and as of such date
as if made on and as of such date (except where such representation and warranty speaks of a
specific date in which case such representation and warranty shall be true and correct as of
such date), provided with respect to the issuance of any Secured Letter of Credit,
this clause (a) shall not be applicable to the representations and warranties set forth in
Sections 4.2 and 4.6(b).

     (b) No Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the Extensions of Credit requested to be
made on such date.

     (c) Company Guarantee. The obligations of the Company under Section 10 in
respect of the Obligations of any other Borrower to or on behalf of which such Extension of
Credit is to be made shall remain in full force and effect.

Each borrowing by and issuance of a Letter of Credit on behalf of any Borrower hereunder shall
constitute a representation and warranty by such Borrower as of the date of such Extension of
Credit that the conditions contained in this Section 5.3 have been satisfied.

          5.4 Additional Condition Precedent to Certain Borrowings. Prior to any Extension of
Credit that would cause the Total Extensions of Credit to exceed $250,000,000, the Borrowers shall
have delivered to the Administrative Agent resolutions of their respective boards of directors
authorizing credit extensions hereunder in an amount not less than $280,000,000.

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          5.5 Conditions for Additional Subsidiary Borrowers.(a) Any Material Subsidiary set
forth in a written notification thereof delivered by the Company to the Administrative Agent shall
become a Subsidiary Borrower on the date that the following conditions precedent shall have been
satisfied:

     (a) Counterparts. The Administrative Agent shall have received a Subsidiary
Borrower Agreement duly executed by such Subsidiary Borrower substantially in the form of
Exhibit I.

     (b) Closing Certificate; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) a certificate of such
Subsidiary Borrower substantially in the form of Exhibit B-2, with appropriate
insertions and attachments, including the Memorandum of Association, Articles of
Incorporation or other organizational
documents for such Subsidiary Borrower certified by the appropriate Governmental
Authority of such Subsidiary Borrower’s relevant jurisdiction of organization and the
By-laws (or equivalent) for such Subsidiary Borrower and (ii) a certificate of
compliance/good standing for such Subsidiary Borrower from its jurisdiction of organization.

     (c) Legal Opinions. The Administrative Agent shall have received an executed
legal opinion of counsel to each Subsidiary Borrower in each jurisdiction reasonably
requested by the Administrative Agent. Each such legal opinion shall cover such other
matters incident to the transactions contemplated by this Agreement as the Administrative
Agent may reasonably require.

     (d) USA Patriot Act. For purposes of compliance with the Patriot Act, the
Administrative Agent and each Lender shall have received from the Company the following
information with respect to such Material Subsidiary at least five Business Days prior to
its becoming a Subsidiary Borrower, in the case of any Material Subsidiary that is both a
Wholly Owned Subsidiary and a Domestic Subsidiary, and at least ten Business Days prior to
its becoming a Subsidiary Borrower, in the case of any other Subsidiary (i) its full legal
name; (ii) the address of its principal place of business; and (iii) if such Material
Subsidiary is a Domestic Subsidiary, its United States tax identification number.

     (e) Other Information. The Administrative Agent and each Lender shall have
received such other information as it shall have reasonably requested to comply with all
applicable “know-your-customer” and anti-money laundering rules and regulations, including
the Patriot Act.

SECTION 6 AFFIRMATIVE COVENANTS

          The Company hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Company shall and shall cause each of its Subsidiaries to:

          6.1 Financial Statements. Furnish to the Administrative Agent:

     (a) as soon as available, but in any event within 90 days after the end of each fiscal
year of the Company, a copy of the audited consolidated balance sheet of the Company and its
consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of comprehensive income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year certified by KPMG Audit Plc or
other independent certified public accountants of nationally recognized standing; and

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     (b) as soon as available, but in any event not later than 45 days after the end of each
of the first three quarterly periods of each fiscal year of the Company, the unaudited
consolidated balance sheet of the Company and its consolidated Subsidiaries as at the end of
such quarter and the related unaudited consolidated statements of comprehensive income and
of cash flows for such quarter and the portion of the fiscal year through the end of such
quarter, setting forth in each case in comparative form the figures for the previous year,
certified by a Responsible Officer as being fairly stated in all material respects (subject
to normal year-end audit adjustments and the absence of footnotes).

All such financial statements shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP. Documents required to be delivered
pursuant to Section 6.1(a) or (b) or Section 6.2(c) (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered electronically and, if so
delivered, shall be deemed to have been delivered on the date (i) on which the Company posts such
documents, or provides a link thereto on the Company’s website on the Internet; or (ii) on which
such documents are posted on the Company’s behalf on an Internet or intranet website, if any, to
which each Lender and the Administrative Agent have access (whether a third-party website (such as
http://sec.gov) or whether sponsored by the Administrative Agent); provided that the
Company shall (x) except to the extent that an option to automatically receive an e-mail alert with
respect to any applicable document is available at
http://phx.corporate-ir.net/phoenix.zhtml?c=148827&p=irol-alerts&t=&id=& (or another readily
accessible page on the Company’s website), notify the Administrative Agent and each Lender (by
telecopier or electronic mail) of the posting of any such document and (y) upon written request,
provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of
such documents. Notwithstanding anything contained herein, in every instance the Company shall be
required to provide paper copies of the Compliance Certificates required by Section 6.2(a) to the
Administrative Agent. Except for such Compliance Certificates, the Administrative Agent shall have
no obligation to request the delivery or to maintain copies of the documents referred to above, and
each Lender shall be solely responsible for maintaining its copies of such documents.

          6.2 Certificates; Other Information. Furnish to the Administrative Agent (or, in the
case of clause (d), to the relevant Lender):

     (a) concurrently with the delivery of any financial statements pursuant to Section
6.1, a certificate of a Responsible Officer stating that, to the best of each such
Responsible Officer’s knowledge, each Borrower during such period has observed or performed
all of its covenants and other agreements, and satisfied every condition contained in this
Agreement and the other Loan Documents to which it is a party to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge of any Default
or Event of Default except as specified in such certificate and a Compliance Certificate
containing all information and calculations necessary for determining compliance by the
Company with the provisions of Section 7.1 and Section 7.9 of this Agreement as of the
last day of the fiscal quarter or fiscal year of the Company, as the case may be;

     (b) within 45 days after the end of each fiscal quarter of the Company, a narrative
discussion and analysis of the consolidated financial condition and results of operations of
the Company and its Subsidiaries for such fiscal quarter and for the period from the
beginning of the then current fiscal year to the end of such fiscal quarter, as compared to
the portion of the projections covering such periods and to the comparable periods of the
previous year (it being understood that the delivery of the management’s discussion and
analysis of the Form 10-Q containing the financial statements delivered financial statements
delivered pursuant to Section 6.1 shall satisfy the requirement of this Section 6.2(b));

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     (c) within five days after the same are sent, copies of all financial statements and
reports that the Company sends to the holders of any class of its debt securities or public
equity securities and, within five days after the same are filed, copies of all financial
statements and reports that the Company files with the SEC;

     (d) promptly, such additional financial and other information regarding the business,
operations and financial conditions of the Company or any of its Subsidiaries as any Lender
may from time to time reasonably request; and

     (e) promptly following receipt thereof, copies of any documents described in Sections
101(k) or 101(l) of ERISA that any Borrower or any Commonly Controlled Entity may request
with respect to any Multiemployer Plan; provided, that if any Borrower or any
Commonly Controlled Entity has not requested such documents or notices from the
administrator or sponsor of the applicable Multiemployer Plan, then, upon reasonable request
of the Administrative Agent, any Borrower and/or any Commonly Controlled Entity shall
promptly make a request for such documents or notices from such administrator or sponsor and
the Company shall provide copies of such documents and notices to the Administrative Agent
(on behalf of each relevant Lender) promptly after receipt thereof.

          6.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its material obligations
(including taxes) of whatever nature, except where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of the relevant Group Member or where the failure
to pay, discharge or satisfy would not reasonably be expected to have a Material Adverse Effect.

          6.4 Maintenance of Existence; Compliance. (a)(i) Preserve, renew and keep in
full force and effect the organizational existence of the Company, each Material Subsidiary and
each Insurance Subsidiary and (ii) take all reasonable action to maintain all rights, privileges
and franchises necessary or desirable in the normal conduct of its business, including all required
insurance licenses of each Material Subsidiary, except, in each case, as otherwise permitted by
Section 7.3 and except, in the case of each of clauses (i) and (ii) above, to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply
with all Requirements of Law except to the extent that failure to comply therewith would not, in
the aggregate, reasonably be expected to have a Material Adverse Effect.

          6.5 Maintenance of Property; Insurance (a) Keep all property useful and necessary
in the business of the Company, each Material Subsidiary and each Insurance Subsidiary in good
working order and condition, ordinary wear and tear excepted and (b) maintain with financially
sound and reputable insurance companies insurance on all the property of the Company, each Material
Subsidiary and each Insurance Subsidiary in at least such amounts and against at least such risks
as are usually insured against in the same general area by companies engaged in the same or a
similar business.

          6.6 Inspection of Property; Books and Records; Discussions. (a) Keep such books of
records and account as are necessary to permit the Company and its Subsidiaries to prepare
financial statements that are in conformity with GAAP and that are in compliance with all
Requirements of Law relating to the maintenance of financial records (except, in the case of such
Requirements of Law, to the extent that the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect) and (b) permit representatives of the Administrative
Agent to visit and inspect any of its properties and examine and make abstracts from any of its
books and
records at any reasonable time and as often as may reasonably be desired and to discuss the
business, operations, properties and financial and other

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condition of the Group Members with officers and employees of the Group Members and with their independent certified public
accountants; provided that the Company shall have an opportunity to participate in any
discussions with any public accountants.

          6.7 Notices Promptly give notice to the Administrative Agent and each Lender of:

     (a) the occurrence of any Default or Event of Default;

     (b) any (i) default or event of default under any Contractual Obligation of any Group
Member or (ii) litigation, investigation or proceeding that may exist at any time between
any Group Member and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have a Material
Adverse Effect;

     (c) any other development or event that has had or could reasonably be expected to have
a Material Adverse Effect.

     (d) Each notice pursuant to this Section 6.7 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein and stating
what action the relevant Group Member proposes to take with respect thereto.

          6.8 Environmental Laws. Except as would not reasonably be expected to result, individually
or in the aggregate, in a Material Adverse Effect, comply with all applicable Environmental Laws.

          6.9 Hybrid Capital. Promptly give notice to the Administrative Agent to the extent
any instrument issued by the Company that was previously classified in whole or in part as Hybrid
Capital ceases to be classified (in whole or in such part) as “hybrid equity” by S&P.

SECTION 7 NEGATIVE COVENANTS

          The Company hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Company shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly:

          7.1 Financial Condition Covenants.

          (a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the last
day of any fiscal quarter of the Company to exceed 35%.

          (b) Consolidated Tangible Net Worth. Permit Consolidated Tangible Net Worth as at any
date to be less than the sum of (i) $2,308,000,000, (ii) 50% of Consolidated Net Income during the
period from January 1, 2010 to and including such date (if positive) and (iii) 50% of the aggregate
Net Cash Proceeds of all issuances by the Company of shares of its Capital Stock during the period
from January 1, 2010 to and including such date.

          7.2 Indebtedness. (a) With respect to the Company, create, incur, assume or permit
to exist any Indebtedness, except for (i) the Obligations and (ii) other Indebtedness that is
either pari passu in right of payment with, or subordinated in right of payment to,
the Obligations; provided that, at the time of incurrence of such other Indebtedness, no
Default or Event of Default shall have occurred and be continuing or would result therefrom.

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          (b) With respect to any Subsidiary of the Company, create, incur, assume or permit to exist
any Indebtedness, except for:

     (i) Indebtedness of any Borrower pursuant to any Loan Document;

     (ii) Indebtedness of any Group Member to any other Group Member;

     (iii) Guarantee Obligations by any Group Member of obligations of any other Group
Member;

     (iv) Indebtedness outstanding on the date hereof and listed on Schedule
7.2(b)(iv) and any refinancings, refundings, renewals or extensions thereof (without
increasing, or shortening the maturity of, the principal amount thereof, except by an amount
equal to any existing commitments unutilized thereunder);

     (v) Indebtedness (including Capital Lease Obligations) incurred in the ordinary course
of business and secured by Liens permitted by Section 7.6(h) in an aggregate principal
amount not to exceed $25,000,000 at any one time outstanding;

     (vi) obligations (contingent or otherwise) existing or arising under any Swap Contract;
provided that such obligations are (or were) entered into by such Subsidiary for the
purpose of directly mitigating risks associated with liabilities, commitments, investments,
assets or property held or reasonably anticipated by such Subsidiary, or changes in the
value of securities issued by such Subsidiary, and not for purposes of speculation or taking
a “market view”;

     (vii) Indebtedness for letters of credit which have been issued on behalf of any
Insurance Subsidiary to or for the benefit of reinsurance cedents or insurance clients in
the ordinary course of business;

     (viii) Indebtedness of any Subsidiary incurred under securities lending arrangements
entered into in the ordinary course of business;

     (ix) Indebtedness incurred in the ordinary course of business in connection with
workers’ compensation claims, self-insurance obligations, unemployment insurance or other
forms of governmental insurance or benefits pursuant to letters of credit or other security
arrangements entered into in connection with such insurance or benefit;

     (x) to the extent constituting Indebtedness, any Indebtedness pursuant to overdraft
facilities in the ordinary course of business, and consistent with past practice in an
aggregate
principal amount not to exceed $25,000,000 at the close of business on any day,
provided that any Indebtedness under such overdraft facilities shall not remain
outstanding for longer than five consecutive Business Days; and

     (xi) so long as no Default or Event of Default shall have occurred and be continuing or
would result therefrom, additional Indebtedness incurred in the ordinary course of business
not otherwise permitted under this Section 7.2(b) in an aggregate principal amount (for all
Subsidiaries) not to exceed 5% of Consolidated Tangible Net Worth at the time of creation,
incurrence or assumption, as the case may be.

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          7.3 Disposition of Property. Dispose of any of its property, whether now owned or
hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s Capital Stock to any Person, except:

     (a) transactions in the ordinary course of business involving current assets or other
assets classified in the Company’s balance sheet as available for sale or trading (as
defined in FAS 115), including the disposition in the ordinary course of business of any
assets in its investment portfolio;

     (b) the Disposition of obsolete, worn out or surplus property in the ordinary course of
business;

     (c) the sale of inventory in the ordinary course of business;

     (d) the license (as licensor) of intellectual property so long as such license does not
materially interfere with the business of the Company or any of its Subsidiaries;

     (e) the release, surrender or waiver of contract, tort or other claims of any kind as a
result of the settlement of any litigation or threatened litigation;

     (f) the granting or existence of Liens (and foreclosure thereon) not prohibited by this
Agreement;

     (g) the lease or sublease of real property so long as such lease or sublease does not
materially interfere with the business of the Company or any of its Subsidiaries;

     (h) dividends not prohibited by Section 7.4;

     (i) any ceding of insurance or reinsurance in the ordinary course of business;

     (j) Dispositions permitted by Section 7.10(d)(i);

     (k) the sale or issuance of any Subsidiary’s Capital Stock to any Borrower; and

     (l) Dispositions of other property during any fiscal year of the Company having an
aggregate fair market value not to exceed 10% of the consolidated assets of the Company and
its Subsidiaries as of the last day of the prior fiscal year of the Company.

          7.4 Restricted Payments. Declare or pay any dividend (other than dividends payable
solely in common stock of
the Person making such dividend) on, or make any payment on account of, or set apart assets
for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or
other acquisition of, any Capital Stock of any Group Member (excluding (i) 5.625% Perpetual
Preferred Income Equity Replacement Securities (PIERS) issued by the Company in December 2005 and
January 2006, (ii) the 7.401% Perpetual Non-Cumulative Preference Shares issued by the Company in
November 2006 and (iii) any other Hybrid Capital), whether now or hereafter outstanding, or make
any other distribution in respect thereof, either directly or indirectly, whether in cash or
property or in obligations of any Group Member (collectively, “Restricted Payments”),
except that (a) any Subsidiary may make Restricted Payments to any Group Member and (b) so long as
no Default or Event of Default shall have occurred and be continuing or would result therefrom, the
Company may make Restricted Payments.

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          7.5 Investments. Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or any assets constituting a business unit of, or make any other
investment in, any Person (all of the foregoing, “Investments”), except:

     (a) extensions of trade credit in the ordinary course of business;

     (b) investments in Cash Equivalents;

     (c) investments in securities lending arrangements entered into in the ordinary course
of business;

     (d) Guarantee Obligations permitted by Section 7.2;

     (e) loans and advances to employees of any Group Member in the ordinary course of
business (including for travel, entertainment and relocation expenses) in an aggregate
amount for all Group Members not to exceed $5,000,000 at any one time outstanding;

     (f) intercompany Investments by any Group Member in any other Group Member;

     (g) acquisitions of all or substantially all of the Capital Stock or assets of another
Person so long as at such time and immediately after giving effect thereto no Default or
Event of Default exists or would result therefrom;

     (h) (i) Investments by Insurance Subsidiaries in the ordinary course of business and
(ii) Investments by the Company and its Subsidiaries that are not Insurance Subsidiaries in
Investments that, if made by an Insurance Subsidiary, would be permitted by clause (i)
immediately preceding;

     (i) Investments of any Person at the time such Person becomes a Subsidiary and any
modification, replacement, renewal or extension thereof; provided such Investment
was not made in connection with or anticipation of such Person becoming a Subsidiary;

     (j) Investments listed on Schedule 7.5 hereto; and

     (k) in addition to Investments otherwise expressly permitted by this Section,
Investments by the Company or any of its Subsidiaries in an aggregate amount during the term
of this Agreement (valued at cost, but giving effect to any distributions or returns
therefrom) not to exceed 20% of Consolidated Tangible Net Worth at the time any such
Investment is made.

          7.6 Liens. Create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired, except:

     (a) Liens for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect thereto are maintained
on the books of the Company or its Subsidiaries, as the case may be, in conformity with
GAAP;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business that are not overdue for a period of more
than 30 days or that are being contested in good faith by appropriate proceedings;

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     (c) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation;

     (d) deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

     (e) Liens on assets of any Insurance Subsidiary pledged as collateral for Indebtedness
of such Insurance Subsidiary incurred under Section 7.2(b)(vii);

     (f) Liens on assets of any Insurance Subsidiary created to secure obligations of such
Insurance Subsidiary in connection with insurance and reinsurance arrangements;

     (g) easements, rights-of-way, restrictions and other similar encumbrances incurred in
the ordinary course of business that, in the aggregate, are not substantial in amount and
that do not in any case materially detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business of the Company or any of its
Subsidiaries;

     (h) Liens securing Indebtedness of the Company or any Subsidiary incurred pursuant to
Section 7.2(a) or Section 7.2(b)(v) to finance the acquisition, construction or
improvement of fixed or capital assets, provided that (i) such Liens shall be created
substantially simultaneously with the acquisition, construction or improvement of such fixed
or capital assets, (ii) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness, and (iii) the aggregate amount of all such
Indebtedness of all Subsidiaries does not exceed the limit set forth in Section 7.2(b)(v);

     (i) Liens created pursuant to the Security Documents;

     (j) any interest or title of a lessor under any lease entered into by the Company or
any other Subsidiary in the ordinary course of its business and covering only the assets so
leased;

     (k) Liens (including Liens in favor of the Custodian with respect to the Accounts) on
cash and securities of any Group Member incurred as part of the management of its investment
portfolio in accordance with customary portfolio management practice and not in violation of
its investment policy as in effect on the date of this Agreement; provided,
however, that, with respect
to the Accounts, such Liens shall be permitted only to the extent that the Custodian
has agreed to subordinate such Liens as provided in the applicable Collateral Account
Control Agreement;

     (l) Liens existing on the date hereof and listed on Schedule 7.6;

     (m) Liens arising in the ordinary course of business on operating accounts maintained
by any Group Member in the ordinary course of business securing obligations (other than
Indebtedness) arising in the ordinary course of business in favor of the banks in which such
operating accounts are maintained;

     (n) attachments, judgments and similar Liens for sums not exceeding $50,000,000 in the
aggregate (excluding any portion thereof covered by insurance as to which the relevant
insurance company has acknowledged coverage);

     (o) attachments, judgments and similar Liens for sums of $50,000,000 or more (excluding
any portion thereof which is covered by insurance as to which the relevant insurance

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company has acknowledged coverage), provided that the execution or other enforcement of such
Liens is stayed and fully bonded pending appeal;

     (p) any Lien existing on property acquired in connection with an Investment made in
connection with Section 7.5, provided that such Lien shall extend solely to the item or
items of property so acquired and, if required by the terms of the instrument originally
creating such Lien, other property which is an improvement to or is acquired for specific
use in connection with such acquired property;

     (q) restrictions and similar encumbrances created pursuant to Requirements of Law upon
the sale or transferability of the Capital Stock of any Insurance Subsidiary and the
exercise of any right to control any such Insurance Subsidiary

     (r) Liens securing Swap Contracts of any Subsidiary of the Company;

     (s) any extension, renewal or replacement of any Lien permitted by the preceding
subparagraphs of this Section 7.6, provided that no additional property (other than a
substitution of like property) shall be encumbered thereby and no additional Indebtedness
shall be secured thereby unless such additional Indebtedness on such property would have
been permitted in connection with the original creation, incurrence or assumption of such
Lien; and

     (t) other Liens securing obligations not at any time exceeding $5,000,000 in the
aggregate for the Company and all Subsidiaries.

          7.7 Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any Subsidiary of the
Company to (a) make Restricted Payments in respect of any Capital Stock of such Subsidiary held by,
or pay any Indebtedness owed to, the Company or any other Subsidiary of the Company, (b) make loans
or advances to, or other Investments in, the Company or any other Subsidiary of the Company or (c)
transfer any of its assets to the Company or any other Subsidiary of the Company, except for such
encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the
Loan Documents and (ii) any restrictions with respect to a Subsidiary imposed pursuant to an
agreement that has been entered into in connection with the Disposition of all or substantially all
of the Capital Stock or assets of such Subsidiary.

          7.8 Business. Enter into any business, either directly or through any Subsidiary,
except for insurance, reinsurance or insurance-related businesses.

          7.9 Rating. Permit at any time the rating of any Relevant Subsidiary to fall below AM
Best financial strength rating B++. For purposes herein, a “Relevant Subsidiary” is any Insurance
Subsidiary the total consolidated assets or total consolidated revenues exceeding 10% of the total
consolidated assets or total consolidated revenues, respectively, of the Company and its
Subsidiaries on a consolidated basis at the end of or for, respectively, the then most recently
completed fiscal quarter of the Company for which financial statements shall have been made
available to the Lenders as required herein.

          7.10 Consolidations, Amalgamations, Mergers and Liquidations. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation
or dissolution), or Dispose of all or substantially all of its property or business, except for (a)
the merger or consolidation of any Subsidiary of the Company with or into the Company (provided
that the Company shall be the continuing or surviving corporation); (b) the merger or consolidation
by any Borrower with or into any other Borrower; (c) the merger or consolidation of any Subsidiary
of the Company which is not a

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Borrower with or into any other Subsidiary of the Company which is
not a Borrower or with or into any Borrower (provided that the Borrower is the surviving
corporation); (d) the Disposition by any Subsidiary of the Company of any or all of its assets (i)
to any Borrower (upon voluntary liquidation or otherwise) or (ii) pursuant to a Disposition
permitted by Section 7.3; and (e) the merger or consolidation by any Person (other than as set
forth above) with or into the Company or any other Borrower (provided that the Company or such
Borrower is the continuing or surviving corporation) so long as at the time of such merger or
consolidation and immediately after giving effect thereto no Default or Event of Default exists or
would result therefrom.

          7.11 Transactions with Affiliates. Sell, lease or otherwise transfer any property or
assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage
in any other transactions with, any of its Affiliates, except (a) transactions that (i) are in the
ordinary course of business and (ii) are at prices and on terms and conditions not less favorable
to the applicable Borrower or such Subsidiary than could be obtained on an arm’s-length basis from
unrelated third parties and (b) transactions between or among any Borrower and any other Borrower
not involving any other Affiliate.

SECTION 8 EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

     (a) any Borrower shall fail to pay any principal of any Loan or any Reimbursement
Obligation when due in accordance with the terms hereof; or any Borrower shall fail to pay
any interest on any Loan or any other amount payable hereunder or under any other Loan
Document, within five Business Days after any such interest or other amount becomes due in
accordance with the terms hereof; or

     (b) any representation or warranty made or deemed made by any Borrower herein or in any
other Loan Document or that is contained in any certificate, document or financial or other
statement furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material respect on or
as of the date made or deemed made; or

     (c) any Borrower shall default in the observance or performance of any agreement
contained in Section 2.5(b), Section 6.4(a) (with respect to the Borrowers only), Section
6.7(a) or Section 7 of this Agreement; or

     (d) any Borrower shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document (other than as provided in paragraphs
(a) through (c) of this Section), and such default shall continue unremedied for a period of
30 days after notice to the Company from the Administrative Agent or the Required Lenders;
or

     (e) any Group Member shall (i) default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled
or original due date with respect thereto; or (ii) default in making any payment of any
interest on any such Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to

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permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with
the giving of notice if required, such Indebtedness to become due prior to its stated
maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described in clause
(i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of
Default unless, at such time, one or more defaults, events or conditions of the type
described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which exceeds in
the aggregate $50,000,000; or

     (f) (i) the Company or any Material Subsidiary shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it
or for all or any substantial part of its assets, or the Company or any Material Subsidiary
shall make a general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Company or any Material Subsidiary any case, proceeding or other
action of a nature referred to in clause (i) above that (A) results in the entry of an order
for relief or any such adjudication or appointment or (B) remains undismissed, undischarged
or unbonded for a period of 60 days; or (iii) there shall be commenced against the Company
or any Material Subsidiary any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets that results in the entry of an order for any such relief
that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60
days from the entry thereof; or (iv) the Company or any Material Subsidiary shall take any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any
of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Company or any
Material Subsidiary shall generally not, or shall be unable to, or shall admit in writing
its inability to, pay its debts as they become due; or

     (g) one or more judgments or decrees shall be entered against any Group Member, and
either (x) shall not have been vacated, discharged, stayed or bonded pending appeal within
60 days from the entry thereof or (y) enforcement proceedings are commenced by any creditor
upon such judgment or decree, involving in the aggregate a liability (not paid or fully
covered by insurance as to which the relevant insurance company has acknowledged coverage)
of $50,000,000 or more; or

     (h) any Loan Document shall cease, for any reason, to be in full force and effect or
any Borrower shall so assert; or

     (i) a Change of Control shall occur; or

     (j) (i) any Single Employer Plan shall fail to meet the minimum funding standards
(within the meaning of Sections 412 or 430 of the Code or Section 302 of ERISA), whether or
not waived, or any Lien in favor of the PBGC or a Single Employer Plan shall arise on the
assets of any Group Member or any Commonly Controlled Entity, (ii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee appointed, or a
trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is, in the
reasonable opinion of the Required Lenders, likely to result in the termination of such
Single Employer Plan for purposes of Title IV of ERISA, (iii) any Single Employer Plan shall
terminate for purposes of Title IV of

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ERISA (other than a standard termination within the meaning of Section 4041(b) of ERISA), (iv) there shall be a determination that any Single
Employer Plan is, or is expected to be, in “at risk” status (within the meaning of Section
430 of the Code or Section 303 of ERISA); (v) any Group Member or any Commonly Controlled
Entity shall, or in the reasonable opinion of the Required Lenders is likely to, incur any
liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a
Multiemployer Plan or a determination that any such Multiemployer Plan is in “endangered” or
“critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA),
or (vi) any other event or condition shall occur or exist with respect to a Plan; and in
each case in clauses (i) through (vi) above, such event or condition, together with all
other such events or conditions, if any, could, in the sole judgment of the Required
Lenders, reasonably be expected to have a Material Adverse Effect;

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to any Borrower, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required thereunder) shall immediately become due and payable, and (B) if such event is
any other Event of Default, any or all of the following actions may be taken: (i) with the consent
of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders,
the Administrative Agent shall, by notice to the Company declare the Commitments to be terminated
forthwith, whereupon the Commitments shall immediately terminate; (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Company, declare the Loans (with accrued interest
thereon) and all other amounts owing under this Agreement and the other Loan Documents (including
all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of
Credit shall have presented the documents required thereunder) to be due and payable forthwith,
whereupon the same shall immediately become due and payable and (iii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall direct the Collateral Agent to exercise in respect of the Collateral,
the rights and remedies under the Security Documents, subject to the
provisions of Section 9.5(b) below. With respect to each Letter of Credit issued on behalf of any
Borrower with respect to which presentment for honor shall not have occurred at the time of an
acceleration pursuant to this paragraph, such Borrower shall at such time deposit in a cash
collateral account opened by the Administrative Agent an amount in the currency in which such
Letter of Credit is denominated equal to the aggregate then undrawn and unexpired amount of such
Letter of Credit. Amounts held in each such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letter of Credit in accordance with
the terms and conditions set forth in Section 3, and the unused portion thereof after all Letters
of Credit issued on behalf of such Borrower shall have expired or been fully drawn upon, if any,
shall be applied to repay other obligations of such Borrower hereunder and under the other Loan
Documents. After all Letters of Credit of such Borrower shall have expired or been fully drawn
upon, all Reimbursement Obligations shall have been satisfied and all other obligations of such
Borrower hereunder and under the other Loan Documents shall have been paid in full, the balance, if
any, in such cash collateral account shall be returned to such Borrower (or such other Person as
may be lawfully entitled thereto). Except as expressly provided above in this Section,
presentment, demand, protest and all other notices of any kind are hereby expressly waived by the
Borrowers.

SECTION 9 THE AGENTS

          9.1 Appointment. Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Loan Documents

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and the Collateral Agent as the agent of such Lender and the Administrative Agent under the
Security Agreement, and each such Lender irrevocably authorizes the Administrative Agent and the
Collateral Agent, as the case may be, in such capacities, to take such action on its behalf under
the provisions of this Agreement and the other Loan Documents, as applicable, and to exercise such
powers and perform such duties as are expressly delegated to the Administrative Agent and the
Collateral Agent, as the case may be, by the terms of this Agreement and the other Loan Documents,
as applicable, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, neither the
Administrative Agent nor the Collateral Agent shall have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Administrative Agent or the
Collateral Agent.

          The Administrative Agent and each Lender understand and agree that all Liens created by the
Security Agreement on the Collateral have been created in favor of the Collateral Agent, for the
benefit of the Administrative Agent and the Lenders, that all rights to take remedial action with
respect to the Collateral under the Security Agreement have been granted to the Collateral Agent
and that neither the Administrative Agent nor any Lender has the right to take any such remedial
action with respect to the Collateral other than through the Collateral Agent.

          9.2 Delegation of Duties. The Administrative Agent and the Collateral Agent may each
execute any of its duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. Neither the Administrative Agent nor the Collateral Agent shall be responsible for
the negligence or misconduct of any agents or attorneys in-fact selected by it with reasonable
care.

          9.3 Exculpatory Provisions. Neither any Agent nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent the action or omission was performed
with gross negligence or willful misconduct as determined by a final and nonappealable decision of
a court of competent jurisdiction) or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by any Borrower or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate, report, statement or
other document referred to or provided for in, or received by the Agents under or in connection
with, this Agreement or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any
failure of any Borrower a party thereto to perform its obligations hereunder or thereunder. The
Collateral Agent shall not be liable for any action taken or omitted (i) at the express direction
of the Administrative Agent or (ii) with the consent of the Required Lenders, in each case, except
to the extent the action or omission directed or consented to was performed with gross negligence
or willful misconduct as determined by a final and nonappealable decision of a court of competent
jurisdiction. The Agents shall not be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties, books or records of
any Borrower.

          9.4 Reliance. (a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including counsel to the
Borrowers), independent accountants and other experts selected by the Administrative Agent. The
Administrative Agent may

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deem and treat the payee of any Note as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall have been filed with
the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it shall first receive
such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all
Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified by this Agreement, all
Lenders) and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of the Loans.

          (b) The Collateral Agent shall be entitled to rely, and shall be fully protected in relying,
upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter,
telecopy, telex or teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including counsel to the Borrowers), independent
accountants and other experts selected by the Collateral Agent. The Collateral Agent may deem and
treat the payee of any Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent.
The Collateral Agent shall be fully justified in failing or refusing to take any action under any
Security Document unless it shall first receive the direction of the Administrative Agent under
Section 8 or such advice or concurrence of the Required
Lenders (or, if so specified by this Agreement, all Lenders) as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any such action. The
Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting,
under the Security Agreement at the direction of the Administrative Agent under Section 8 or in
accordance with a request of the Required Lenders (or, if so specified by this Agreement, all
Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of the Loans.

          9.5 Notice of Default. (a) The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default unless it has received
notice from a Lender or the Company referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders. The Administrative Agent shall take action with respect to such Default or Event of
Default as shall be directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders); provided that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable in the best interests of the Lenders.

          (b) The Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default unless it has received notice from the Administrative Agent, a
Lender or the Company referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default”. The Collateral Agent shall take action with
respect to such Default or Event of Default as shall be directed by the Administrative Agent under
Section 8, or by the Required Lenders (or, if so specified by this Agreement, all Lenders);
provided that unless and until the Collateral Agent shall have received such directions,
the Collateral Agent may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.

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          9.6 Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges
that neither the Agents nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Borrower or any affiliate of
a Borrower, shall be deemed to constitute any representation or warranty by any Agent to any
Lender. Each Lender represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their affiliates and
made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
neither the Administrative Agent nor the Collateral Agent shall have any duty or responsibility to
provide any Lender with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of any Borrower or any
affiliate of a Borrower that may come into the possession of the Administrative Agent or the
Collateral Agent or any of its respective officers, directors, employees, agents, attorneys-in-fact
or affiliates.

          9.7 Indemnification. (a) The Lenders agree to indemnify each Agent (other than the
Collateral Agent) in its capacity as such (to the extent not reimbursed by the Borrowers and
without limiting the obligation of each Borrower to do so), ratably according to their respective
Aggregate Exposure Percentages in effect on the date on which indemnification is sought under this
Section (or, if indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance with such Aggregate
Exposure Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or
arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by such Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such Agent’s gross negligence or willful misconduct. The
agreements in this Section shall survive the payment of the Loans and all other amounts payable
hereunder.

          (b) The Lenders agree to indemnify the Collateral Agent in its capacity as such (to the extent
not reimbursed by the Borrowers and without limiting the obligation of each Borrower to do so),
ratably according to the respective percentages which (i) the Aggregate Exposure of each Lender
constitutes of (ii) the Aggregate Exposure of all Lenders in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought after the date upon
which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in
accordance with such percentages immediately prior to such date), from and against any and all
liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on,
incurred by or asserted against the Collateral Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or
referred to herein or

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therein or the transactions contemplated hereby or thereby or any action
taken or omitted by the Collateral Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the Collateral Agent’s gross negligence or willful misconduct.
The agreements in this Section shall survive the payment of the Loans and all other amounts payable
hereunder.

          9.8 Agent in Its Individual Capacity. Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any Borrower as though
such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to
any Letter of Credit issued or participated in by it, each Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as
though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its
individual capacity.

          9.9 Successor Administrative Agent and Collateral Agent.

          (a) The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the
Lenders and the Company. If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default
under Section 8(a) or Section 8(f) with respect to any Borrower shall have occurred and be
continuing) be subject to approval by the Company (which approval shall not be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties
of the Administrative Agent and the term “Administrative Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or further act or deed on
the part of such former Administrative Agent or any of the parties to this Agreement or any holders
of the Loans. If no successor agent has accepted appointment as Administrative Agent by the date
that is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders
shall assume and perform all of the duties of the Administrative Agent hereunder until such time,
if any, as the Required Lenders under this Agreement appoint a successor agent as provided for
above. After any retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement and the other Loan Documents.

          (b) The Collateral Agent may resign as Collateral Agent upon 30 days’ notice to the Lenders
and the Company. In addition, the Company shall have the right (unless a Default or Event of
Default shall have occurred and be continuing) to remove the Collateral Agent upon 30 days’ prior
written notice to the Administrative Agent. If the Collateral Agent shall resign or be removed as
Collateral Agent under this Agreement, then the Required Lenders shall appoint from among the
Lenders a successor collateral agent, which successor collateral agent shall (unless an Event of
Default under
Section 8(a) or Section 8(f) with respect to any Borrower shall have occurred and be
continuing) be subject to approval by the Company (which approval shall not be unreasonably
withheld or delayed), whereupon such successor collateral agent shall succeed to the rights, powers
and duties of the Collateral Agent and the term “Collateral Agent” shall mean such successor
collateral agent effective upon such appointment and approval, and the former Collateral Agent’s
rights, powers and duties as Collateral Agent shall be terminated, without any other or further act
or deed on the part of such former Collateral Agent or any of the parties to this Agreement or any
holders of the Loans. If no successor collateral agent has accepted appointment as Collateral
Agent by the date that is 30 days following a retiring Collateral

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Agent’s notice of resignation or
the Administrative Agent’s receipt of a notice of removal, the retiring Collateral Agent (after
consultation with the Company) may appoint a financial institution rated at least ‘A’ by S&P or ‘A’
by Moody’s, as a successor collateral agent, whereupon such successor collateral agent shall
succeed to the rights, powers and duties of the Collateral Agent and the term “Collateral Agent”
shall mean such successor collateral agent effective upon such appointment, and the former
Collateral Agent’s rights, powers and duties as Collateral Agent shall be terminated, without any
other or further act or deed on the part of such former Collateral Agent or any of the parties to
this Agreement or any holders of the Loans. After any retiring Collateral Agent’s resignation or
removal as Collateral Agent, the provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement and
the other Loan Documents.

          (c) Any resignation by Barclays Bank PLC as Administrative Agent pursuant to this Section 9.9
shall also constitute its resignation as the L/C Administrator. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the L/C Administrator, (b)
the retiring L/C Administrator shall be discharged from all of its duties and obligations hereunder
or under the other Loan Documents, and (c) the successor L/C Administrator shall issue letters of
credit in substitution for the Several Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the retiring L/C Administrator to effectively
assume the obligations of the retiring L/C Administrator with respect to such Several Letters of
Credit.

          9.10 Security Document Matters. The Agents, the Lenders, the Issuing Lenders and the
Custodian expressly acknowledge and agree that the Security Documents may be enforced only by the
action of the Collateral Agent acting upon the instructions of the Required Lenders or the
Administrative Agent and that no other such Person shall have any right individually to seek to
enforce or to enforce the Security Documents or to realize upon the security to be granted thereby,
it being understood and agreed that such rights and remedies may be exercised by the Collateral
Agent for the benefit of such Persons upon the terms of the Security Documents.

          9.11 Other Agents. The Syndication Agent and the Co-Documentation Agents shall not
have any duties or responsibilities hereunder in such capacity.

SECTION 10 GUARANTEE

          10.1 Guarantee. (a) To induce the Lenders to execute and deliver this Agreement and
to make the Loan and issue or participate in the Letters of Credit, and in consideration thereof,
the Company hereby unconditionally and irrevocably guarantees to the Administrative Agent, for the
ratable benefit of the
Lenders and their respective successors, indorsees and assigns, the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations, and the Company further agrees to pay the expenses which may be paid or incurred
by the Administrative Agent or the Lenders in collecting any or all of the Obligations and/or
enforcing any rights under this Section 10.1 or under the Obligations in accordance with this
Section 10.1. The guarantee contained in this Section 10.1 shall remain in full force and effect
and be binding in accordance with and to the extent of its terms upon the Company and the
successors and assigns thereof, and shall inure to the benefit of the Lenders and their successors
and permitted assigns, until the Obligations shall have been satisfied in full and the Loans shall
be terminated.

          (b) Anything herein to the contrary notwithstanding, the maximum liability of the Company
hereunder shall in no event exceed the amount which can be guaranteed by the Company under
applicable federal and state laws relating to the insolvency of debtors.

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          (c) The Company agrees to the extent permitted by applicable law that the Obligations may at
any time and from time to time exceed the amount of the liability of the Company hereunder without
impairing the guarantee contained in this Section 10 or affecting the rights and remedies of the
Administrative Agent or any Lender hereunder.

          (d) The guarantee contained in this Section 10 shall remain in full force and effect until
all the Obligations and the obligations of the Company under the guarantee contained in this
Section 10 shall have been satisfied by payment in full, all Letters of Credit shall have expired
or been terminated and the Commitments shall be terminated, notwithstanding that from time to time
during the term of this Agreement the Borrowers may be free from any Obligations.

          (e) No payment made by any Borrower, the Company or any other Person or received or collected
by the Administrative Agent or any Lender from any Borrower, the Company or any other Person by
virtue of any action or proceeding or any set-off or appropriation or application at any time or
from time to time in reduction of or in payment of the Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of the Company hereunder which shall,
notwithstanding any such payment (other than any payment made by the Company in respect of the
Obligations or any payment received or collected from the Company in respect of the Obligations),
remain liable for the Obligations until the Obligations are paid in full and the Commitments are
terminated.

          10.2 No Subrogation. Notwithstanding any payment made by the Company hereunder or any
set-off or application of funds of the Company by the Administrative Agent or any Lender, the
Company shall not be entitled to be subrogated to any of the rights of the Administrative Agent or
any Lender against any Borrower or any collateral security or guarantee or right of offset held by
the Administrative Agent or any Lender for the payment of the Obligations, nor shall the Company
seek or be entitled to seek any contribution or reimbursement from any Borrower in respect of
payments made by the Company hereunder, until all amounts owing to the Administrative Agent and the
Lenders by any Borrower on account of the Obligations are paid in full, and Letters of Credit shall
have expired or been terminated and the Commitments are terminated. If any amount shall be paid to
the Company on account of such subrogation rights at any time when all of the Obligations shall not
have been paid in full, such amount shall be held by the Company in trust for the Administrative
Agent and the Lenders, segregated from other funds of the Company, and shall, forthwith upon
receipt by the Company, be turned over to the Administrative Agent in the exact form received by
the Company (duly indorsed by the Company to the Administrative Agent, if required), to be applied
against the Obligations, whether matured or unmatured, in such order as the Administrative Agent
may determine.

          10.3 Amendments, etc. with respect to the Obligations. The Company shall remain
obligated hereunder notwithstanding that, without any reservation of rights against the Company and
without notice to or further assent by the Company, any demand for payment of any of the
Obligations made by the Administrative Agent or any Lender may be rescinded by the Administrative
Agent or such Lender and any of the Obligations continued, and the Obligations, or the liability of
any other Person 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
Administrative Agent or any Lender, and this Agreement and the Notes and any other documents
executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the Required Lenders or all
Lenders, as the case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any Lender for the
payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the
Administrative Agent nor any Lender shall have any obligation to

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protect, secure, perfect or insure
any Lien at any time held by it as security for the Obligations or for the guarantee contained in
this Section 10 or any property subject thereto.

          10.4 Guarantee Absolute and Unconditional. The Company waives any and all notice of
the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of
reliance by the Administrative Agent or any Lender upon the guarantee contained in this Section 10
or acceptance of the guarantee contained in this Section 10; the Obligations, and any of them,
shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 10; and all dealings
between the Borrowers and the Company, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon the guarantee contained in this Section 10. The Company waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon any
Borrower or the Company with respect to the Obligations. The Company understands and agrees that
the guarantee contained in this Section 10 shall be construed as a continuing, absolute and
unconditional guarantee of payment without regard to (a) the validity or enforceability of this
Agreement or any Note, any of the Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to time held by the
Administrative Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense
of payment or performance) which may at any time be available to or be asserted by any Borrower or
any other Person against the Administrative Agent or any Lender, or (c) any other circumstance
whatsoever (with or without notice to or knowledge of the Borrowers or the Company) which
constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrowers
for the Obligations, or of the Company under the guarantee contained in this Section 10, in
bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against the Company the Administrative Agent or any Lender may, but
shall be under no obligation to, make a similar demand on or otherwise pursue such rights and
remedies as it may have against any Borrower, or any other Person or against any collateral
security or guarantee for the Obligations or any right of offset with respect thereto, and any
failure by the Administrative Agent or any Lender to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Borrowers, or any other Person or to realize
upon any such collateral security or guarantee or to exercise any such right of offset, or any
release of any Borrower, or any other Person or any such collateral security, guarantee or right of
offset, shall not relieve the Company of any obligation or liability hereunder, and shall not
impair or affect the rights and remedies, whether express, implied or available as a matter of law,
of the Administrative Agent or any Lender against the Company. For the purposes hereof “demand”
shall include the commencement and continuance of any legal
proceedings.

          10.5 Reinstatement. The guarantee contained in this Section 10 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations is rescinded or must otherwise be restored or returned by the Administrative
Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
any Borrower or the Company, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, any Borrower or the Company or any substantial
part of its property, or otherwise, all as though such payments had not been made.

          10.6 Payments. The Company hereby guarantees that payments hereunder will be paid to
the Administrative Agent without set-off or counterclaim in the applicable currency at the Funding
Office.

          10.7 Independent Obligations. The obligations of the Company under the guarantee
contained in this Section 10 are independent of the obligations of the Borrowers, and a separate
action or actions may be brought and prosecuted against the Company whether or not any Borrower is
joined in

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any such action or actions. The Company waives, to the fullest extent permitted by law,
the benefit of any statute of limitations affecting its liability hereunder or the enforcement
thereof.

SECTION 11 MISCELLANEOUS

          11.1 Amendments and Waivers. Neither this Agreement, any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 11.1. The Required Lenders and each Borrower which is a party to the
relevant Loan Document may, or, with the written consent of the Required Lenders, the
Administrative Agent or, as the case may be, the Collateral Agent, and each Borrower which is a
party to the relevant Loan Document may, from time to time, (a) enter into written amendments,
supplements or modifications hereto and to the other Loan Documents for the purpose of adding any
provisions to this Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or the Agents or of the Loan Parties hereunder or thereunder or (b) waive, on such
terms and conditions as the Required Lenders or the Administrative Agent or the Collateral Agent,
as the case may be, may specify in such instrument, any of the requirements of this Agreement or
the other Loan Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or modification shall (i)
forgive the principal amount or extend the final scheduled date of maturity of any Loan, reduce the
stated rate of any interest or fee payable hereunder (except (x) in connection with the waiver of
applicability of any post-default increase in interest rates and (y) that any amendment or
modification of defined terms used in the financial covenants in this Agreement shall not
constitute a reduction in the rate of interest or fees for purposes of this clause (i)) or extend
the scheduled date of any payment thereof, or increase the amount or extend the expiration date of
any Lender’s Commitment, in each case without the written consent of each Lender directly affected
thereby; (ii) eliminate or reduce the voting rights of any Lender under this Section 11.1 without
the written consent of such Lender; (iii) reduce any percentage specified in the definition of
Required Lenders, consent to the assignment or transfer by the Company of any of its rights and
obligations under this Agreement and the other Loan
Documents, release the Company from any of its obligations under Section 10 with respect to
any Borrower which has any then outstanding Obligations, amend, modify or waive any provision of
Section 5.3(c), or release all or substantially all of the Collateral (other than when permitted
under the Loan Documents) or release all or substantially all of the Borrowers from their
obligations under the Security Documents, in each case without the written consent of all Lenders;
(iv) amend, modify or waive any provision of Section 11.7 without the written consent of all
Lenders; (v) amend, modify or waive any provision of Section 2.11(a)or (b) without the written
consent of all Lenders; (vi) amend, modify or waive any provision of Section 9 without the written
consent of the Administrative Agent and the Collateral Agent; (vii) amend, modify or waive any
provision of Section 3 in any manner that is adverse to the interests of any Issuing Lender or the
L/C Administrator without the written consent of such Issuing Lender and/or LC Administrator;
(viii) amend, modify or waive any provision of Section 2.17, without the consent of each of the
Administrative Agent, each Issuing Lender and the L/C Administrator; or (ix) amend or modify (1)
the definition of “Borrowing Base” or any defined terms used in such definition or (2) the
provisions of any Loan Document with respect to minimum Collateral requirements, in each case,
without the written consent of all Lenders . Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties,
the Lenders, the Administrative Agent, the Collateral Agent and all future holders of the Loans.
In the case of any waiver, the Loan Parties, the Lenders, the Administrative Agent and the
Collateral Agent shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and
not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon. Notwithstanding anything herein to the contrary,
the Collateral Agent (solely in such capacity) shall agree to any amendments, supplements,
modifications or waivers as expressly directed by the

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Administrative Agent, provided that the
Collateral Agent need not agree to any such amendment, supplement, modification or waiver that
shall affect its rights or duties.

          11.2 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Borrowers, the Administrative Agent and the
Collateral Agent, and as set forth in an administrative questionnaire delivered to the
Administrative Agent in the case of the Issuing Lenders and the Lenders, or to such other address
as may be hereafter notified by the respective parties hereto:

	 	 	 	 	 	 	 

	 

	 	The Company, the Borrower
	 	 	 	Aspen Insurance Holdings Limited
	 

	 	Representative or any Borrower:
	 	 	 	Maxwell Roberts Building
	 

	 	 	 	 	 	1 Church Street
	 

	 	 	 	 	 	Hamilton HM 11 Bermuda
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention: Jazmin Da Ponte
	 

	 	 	 	 	 	Telecopy: 441.295.6068
	 

	 	 	 	 	 	Telephone: 441.297. 9221
	 
	 	 	 	 	 	 
	 

	 	Administrative Agent:
	 	 	 	Alicia Borys
	 

	 	 	 	 	 	745 Seventh Avenue 26th Floor
	 

	 	 	 	 	 	New York, NY 10019
	 

	 	 	 	 	 	Tel: 212.526.4291
	 

	 	 	 	 	 	Fax: 212.526.5115
	 
	 	 	 	 	 	 
	 

	 	with a copy to:
	 	 	 	Reena Chopra
	 

	 	 	 	 	 	Barclays Capital
	 

	 	 	 	 	 	1301 6th Avenue 8th Floor
	 

	 	 	 	 	 	New York, NY 10019
	 
	 	 	 	 	 	 
	 

	 	Collateral Agent:
	 	 	 	The Bank of New York Mellon
	 

	 	 	 	 	 	101 Barclay Street, 8W
	 

	 	 	 	 	 	New York, New York 10286
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention: Anna A. Yiu
	 

	 	 	 	 	 	Telecopy: 732.667.9536
	 

	 	 	 	 	 	Telephone: 212.815.3214

provided that any notice, request or demand to or upon the Company, the Administrative
Agent, the Collateral Agent or the Lenders shall not be effective until received.

          Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or any Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic

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communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or
communications.

          11.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent, the Collateral Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

          11.4 Survival of Representations and Warranties. All representations and warranties
made hereunder, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.

          11.5 Payment of Expenses and Taxes. The Company agrees (a) to pay or reimburse the Administrative Agent, the Syndication Agent
and the Collateral Agent for all its reasonable out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including the reasonable fees and disbursements of a single
counsel to each of (i) the Administrative Agent and the Syndication Agent and (ii) the Collateral
Agent, and such other special or local counsel as the Administrative Agent may deem reasonably
necessary (and any additional counsel in the case of a conflict) and filing and recording fees and
expenses, with statements with respect to the foregoing to be submitted to the Company prior to the
Closing Date (in the case of amounts to be paid on the Closing Date) and from time to time
thereafter on a quarterly basis or such other periodic basis as the Administrative Agent, the
Syndication Agent and the Collateral Agent shall deem appropriate, (b) to pay or reimburse each
Lender, the Administrative Agent, the Syndication Agent and the Collateral Agent for all its costs
and expenses incurred in connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents and any such other documents, including the fees and
disbursements of a single counsel to each of (i) the Administrative Agent and the Lenders and (ii)
the Collateral Agent, and such other special or local counsel as the Administrative Agent may deem
reasonably necessary (and any additional counsel in the case of a conflict), (c) to pay, indemnify,
and hold each Lender, the Administrative Agent and the Collateral Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or resulting from any delay
in paying stamp, excise and other taxes, if any, that may be payable or determined to be payable in
connection with the execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of, or any waiver or
consent under or in respect of, this Agreement, the other Loan Documents and any such other
documents, and (d) to pay, indemnify, and hold each Lender, the Administrative Agent and the
Collateral Agent and their respective officers, directors, employees, advisors, affiliates and
agents (each, an “Indemnitee”) harmless from and against any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever (whether brought by a Borrower or any other Person)
with respect to the execution, delivery, enforcement, performance and administration of this
Agreement, the other Loan Documents and any such other documents, including any of the foregoing
relating to the use of proceeds of the Loans or the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of any Group Member or any of the
Properties (provided that such liability was incurred during such time as a Group Member controlled
such Properties) and the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Borrower under any Loan

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Document (all the
foregoing in this clause (d), collectively, the “Indemnified Liabilities”),
provided, that the Company shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnitee or its affiliates. Without limiting the
foregoing, and to the extent permitted by applicable law, the Company agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to
waive, all rights for contribution from any Indemnitee or any other rights of recovery from any
Indemnitee with respect to all claims, demands, penalties, fines, liabilities, settlements,
damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws,
that any of them might have by statute or otherwise against any Indemnitee. All amounts due under
this Section 11.5 shall be payable not later than 10 Business Days after written demand therefor
and shall be accompanied by a statement setting forth in reasonable detail the source of such
Indemnified Liability and the amount claimed thereunder. Statements payable by the Company
pursuant to this Section 11.5 shall be submitted to the Company, at the address of the Company set
forth in Section 11.2, or to such other Person or address as may be hereafter designated by the
Company in a written notice to the Administrative Agent. The agreements in this Section 11.5
shall survive repayment of the Loans and all other amounts payable
hereunder.

          11.6 Successors and Assigns; Participations and Assignments. (a) The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any affiliate of any Issuing Lender
that issues any Letter of Credit), except that (i) no Borrower may assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by any Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees (none of which may be a Borrower) (each, an “Assignee”) all or a
portion of its rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans at the time owing to it) with the prior written consent (such consent not
to be unreasonably withheld or delayed) of:

     (A) the Company, provided that no consent of the Company shall be
required for an assignment (1) to a Lender, an affiliate of a Lender or an Approved
Fund (as defined below) or (2) if an Event of Default has occurred and is
continuing;

     (B) the Administrative Agent; and

     (C) the Issuing Lenders.

          (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender, an affiliate of a Lender
or an Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitments or Loans, the amount of the Commitments or Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the Company
and the Administrative Agent otherwise consent, provided that such amounts
shall be aggregated in respect of each Lender and its affiliates or Approved Funds,
if any;

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     (B) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500; and

     (C) the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire.

          For the purposes of this Section 11.6, the term “Approved Fund” has the following meaning:

     “Approved Fund” means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar extensions
of credit in the ordinary course of its business and that is administered or managed by
(a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
from and after the effective date specified in each Assignment and Assumption the Assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement (and, in
the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 11.5). Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 11.6 shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

     (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amount of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrowers, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant to the terms hereof as
a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrowers and any Lender,
at any reasonable time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an Assignee, the Assignee’s completed administrative questionnaire
(unless the Assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and each written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of any Borrower, the Company, any Issuing Lender
or the Administrative Agent, sell participations to one or more banks or other entities

69

 

(a “Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent and the Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. Any agreement pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement may provide that such Lender will not, without the consent of the Participant, agree to
any amendment, modification or waiver that (1) requires the consent of each Lender directly
affected thereby pursuant to the proviso to the second sentence of Section 11.1 and (2) directly
affects such Participant. Subject to paragraph (c)(ii) of this Section, each Borrower agrees that
each Participant shall be entitled to the benefits of, and subject to the limitations of, Sections
2.12, 2.13,
2.14 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 11.8 as though it were a Lender, provided such
Participant shall be subject to Section 11.7 as though it were a Lender.

     (i) A Participant shall not be entitled to receive any greater payment under Section
2.12 or 2.13 than the applicable Lender would have been entitled to receive with respect
to the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Company’s prior written consent. Any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section 2.13 unless such
Participant complies with Section 2.13(e).

     (ii) Each Lender that sells a participation, acting solely for this purpose as a
non-fiduciary agent (solely for tax purposes) of the Borrowers, shall maintain a register on
which it enters the name and address of each Participant and the principal amounts (and
stated interest) of each Participant’s interest in the Loans and other obligations under
this Agreement (the “Participant Register”). The entries in the Participant Register shall
be conclusive, and such Lender, each Borrower and the Administrative Agent shall treat each
person whose name is recorded in the Participant Register pursuant to the terms hereof as
the owner of such participation for all purposes of this Agreement, notwithstanding notice
to the contrary.

Notwithstanding anything else provided herein or otherwise, no Lender shall have any obligation to
disclose all or any portion of the Participant Register to any Borrower or any other Person
(including the identity of any Participant or any information relating to a Participant’s interest
in the Loans or other obligations under this Agreement or any other Loan Document) except to the
extent such disclosure is necessary to establish that the Loans or such other obligations are in
registered form under Section 5f.103-1(c) of the United States Treasury Regulations,
provided that any Participant shall only be entitled to the benefits of this Section
11.6(c) if the identity of such Participant has been disclosed to the Company.

          (d) Any Lender may at any time pledge or grant a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or grant
to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such
pledge or grant of a security interest; provided that no such pledge or grant of a security
interest shall release such Lender from any of its obligations hereunder or substitute any such
pledgee or grantee for such Lender as a party hereto and, provided, further, that
nothing in this paragraph (d) shall be deemed to limit in any way the application of Section
11.6(b) to any assignment of the rights or obligations of such Lender under this Agreement
resulting from a foreclosure of any such pledge or security interest.

70

 

          (e) Each Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph
(d) above.

          11.7 Adjustments. Except to the extent that this Agreement expressly provides for
payments to be allocated to a particular Lender or to the Lenders, if any Lender (a “Benefitted
Lender”) shall receive any payment of all or part of the Obligations owing to it (whether
directly from the Borrower, indirectly as a result of payment under the guarantee provided for in
Section 10 or from the proceeds of the exercise of any remedies with respect to the Collateral
pursuant to the Security Documents or otherwise), or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 8(f), or otherwise), in a greater proportion than any such
payment to or collateral received by any other Lender, if any, in respect of the Obligations
owing to such other Lender, such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations owing to each such other Lender, or shall
provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause
such Benefitted Lender to share the excess payment or benefits of such collateral ratably with each
of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is
thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but without interest.

          11.8 Set-off. Upon the occurrence and continuation of an Event of Default, in
addition to any rights and remedies of the Lenders provided by law, each Lender shall have the
right, without prior notice to any Borrower, any such notice being expressly waived by each
Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by any
Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Lender or any branch or agency thereof to or for the credit or the
account of such Borrower, as the case may be, or of the Company. Each Lender agrees promptly to
notify the Company and the Administrative Agent after any such setoff and application made by such
Lender, provided that the failure to give such notice shall not affect the validity of such setoff
and application.

          11.9 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be
lodged with the Company and the Administrative Agent.

          11.10 Severability. Any provision of this 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.

          11.11 Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Borrowers, the Administrative Agent, the Collateral Agent and the Lenders with
respect to the subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent, the Collateral Agent or any Lender
relative to the subject matter hereof not expressly set forth or referred to herein or in the other
Loan Documents.

71

 

          11.12 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK. THE CHOICE OF GOVERNING LAW HAS BEEN MADE PURSUANT TO SECTION
5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

          11.13 Submission To Jurisdiction; Waivers. Each Borrower, the Administrative Agent,
the Collateral Agent and each Lender hereby irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Loan 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 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 the Borrowers, as the case may be at its address set forth in
Section 11.2 or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right 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 any special,
exemplary, punitive or consequential damages.

          11.14 Releases of Liens. (a) Notwithstanding anything to the contrary contained
herein or in any other Loan Document, the Collateral Agent is hereby irrevocably authorized by each
Lender (without requirement of notice to or consent of any Lender except as expressly required by
Section 11.1) to take any action requested by the Company having the effect of releasing any
Collateral (i) to the extent permitted by the Security Agreement and the applicable Collateral
Account Control Agreement or that has been consented to in accordance with Section 11.1 or (ii)
under the circumstances described in paragraph (b) below.

          (b) At such time as all Letters of Credit shall have expired, been terminated or been fully
cash collateralized pursuant to Section 8 and the Commitments have been terminated and no Default
or Event of Default has occurred and is continuing, the Collateral (other than any such cash
collateral) shall cease to secure the Obligations, the Collateral (other than any such cash
collateral) shall be released from the Liens created by the Security Agreement, and the Security
Agreement and each Collateral Account Control Agreement and all obligations (other than those
expressly stated to survive such termination) of the Administrative Agent, the Collateral Agent and
each Borrower under the Security Agreement and each Collateral Account Control Agreement shall
terminate, all without delivery of any instrument or performance of any act by any Person.

72

 

          11.15 Confidentiality. Each of the Administrative Agent, the Collateral Agent and
each Lender agrees to keep confidential all non-public information provided to it by any Group
Member, the Administrative Agent, the Collateral Agent or any Lender pursuant to or in connection
with this Agreement (the “Information”); provided that nothing herein shall prevent
the Administrative Agent, the Collateral Agent or any Lender from disclosing any such Information
(a) to the Administrative Agent, the Collateral Agent, any other Lender or any affiliate thereof,
(b) subject to an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee, (c) to its employees, directors, agents, attorneys, accountants, auditors
and other professional advisors or those of any of its affiliates, provided that such parties agree
to comply with the provisions of this Section, (d) upon the request or demand of any Governmental
Authority (including any stock exchange or other similar organization), provided that the
Administrative Agent, the Collateral Agent or any Lender, as the case may be, requests confidential
treatment of such Information to the extent permitted by law, (e) in response to any order of any
court or other Governmental Authority or as may otherwise be required pursuant to any Requirement
of Law, provided that the Administrative Agent, the Collateral Agent or any Lender, as the
case may be, requests confidential treatment of such Information to the extent permitted by law,
(f) if requested or required to do so in connection with any litigation or similar proceeding,
provided that (1) the Administrative Agent, the Collateral Agent or any Lender, as the case
may be, provides the Company with notice of such event promptly upon obtaining knowledge thereof
(provided that the Administrative Agent, the Collateral Agent or any Lender, as the case may be, is
not legally prohibited by law from giving such notice) so that the Company may seek a protective
order or other appropriate remedy and (2) in the event that such protective order or other remedy
is not obtained, the Administrative Agent, the Collateral Agent or any Lender, as the case may be,
shall furnish only that portion of the Information that is legally required and shall disclose the
Information in a manner reasonably designed to preserve its confidential nature, (g) that has been
publicly disclosed other than as a result of (1) disclosure by the Administrative Agent, the
Collateral Agent or any Lender in violation of this Agreement or (2) becoming available from a
third party which to the knowledge of the Administrative Agent, the Collateral Agent or any Lender,
as the case may be, is prohibited from disclosing such information pursuant to a contractual, legal
or fiduciary obligation to the Company or a third party, (h) to the National Association of
Insurance Commissioners or any similar organization or any nationally recognized rating agency that
requires access to information about a Lender’s investment portfolio in connection with ratings
issued with respect to such Lender, or (i) in connection with the exercise of any remedy hereunder
or under any other Loan Document.

          11.16 Several Obligations of Borrowers; Company as Agent of Borrowers. (a) The
Obligations of each Borrower shall be several in nature.

          (b) Each Borrower irrevocably appoints the Company as its agent for all purposes relevant to
this Agreement and each of the other Loan Documents, including (i) the giving and receipt of
notices and (ii) the execution and delivery of all documents, instruments and certificates
contemplated herein and all modifications hereto. Any acknowledgement, consent, direction,
certification or other action which might otherwise be valid or effective only if given or taken by
all Borrowers, or by each Borrower acting singly, shall be valid and effective if given or taken
only by the Company, whether or not any such other Borrower joins therein. Any notice, demand,
consent, acknowledgement, direction, certification or other communication delivered to the Company
in accordance with the terms of this Agreement shall be deemed to have been delivered to each other
Borrower.

          11.17 Termination of Terminating Credit Agreements. The parties hereto (comprising
certain of the parties to the Terminating Credit
Agreement) agree that, on the Closing Date, the Terminating Credit Agreement shall terminate
without further action by any party thereto, any requirement to give notice of termination pursuant
to the Terminating Credit Agreement shall be waived, and any loans outstanding pursuant to the
Terminating Credit Agreement and other amounts payable pursuant to the Terminating Credit Agreement
shall be due and payable on such date.

73

 

          11.18 WAIVERS OF JURY TRIAL. EACH BORROWER, THE ADMINISTRATIVE AGENT, THE COLLATERAL
AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

          11.19 USA Patriot Act. Each Lender hereby notifies each Borrower that pursuant to the
requirements of the Patriot Act, it is required to obtain, verify and record information that
identifies each Borrower, which information includes the name and address of each such Borrower and
other information that will allow such Lender to identify each such Borrower in accordance with the
Patriot Act.

SECTION 12 THE BORROWER REPRESNTATIVE

          12.1 Appointment; Nature of Relationship. The Company is hereby appointed by each of
the Borrowers as its contractual representative (herein referred to as the “Borrower
Representative”) hereunder and under each other Loan Document, and each of the Borrowers
irrevocably authorizes the Borrower Representative to act as the contractual representative of such
Borrower with the rights and duties expressly set forth herein and in the other Loan Documents.
The Borrower Representative agrees to act as such contractual representative upon the express
conditions contained in this Section 12. Additionally, each Borrower hereby appoints, to the
extent the Borrower Representative requests any Loan on behalf of such Borrower, the Borrower
Representative as its agent to receive all of the proceeds of such Loan, at which time the Borrower
Representative shall promptly disburse such Loan to such Borrower. Neither the Agents, the Lenders
or the Applicable Issuing Parties and their respective officers, directors, agents or employees,
shall be liable to the Borrower Representative or any Borrower for any action taken or omitted to
be taken by the Borrower Representative or the Borrowers pursuant to this Section 12.1.

          12.2 Powers. The Borrower Representative shall have and may exercise such powers
under the Loan Documents as are specifically delegated to the Borrower Representative by the terms
of each thereof, together with such powers as are reasonably incidental thereto. The Borrower
Representative shall have no implied duties to the Borrowers, or any obligation to the Lenders to
take any action thereunder except any action specifically provided by the Loan Documents to be
taken by the Borrower Representative.

          12.3 Employment of Agents. The Borrower Representative may execute any of its duties
as the Borrower Representative hereunder and under any other Loan Document by or through authorized
officers.

          12.4 Notices. Any notice provided to the Borrower Representative hereunder shall
constitute notice to each Borrower on the date received by the Borrower Representative.

          12.5 Successor Borrower Representative. Upon the prior written consent of the
Administrative Agent, the Borrower Representative may resign at any time, such resignation to be
effective upon the appointment of a successor Borrower Representative acceptable to the
Administrative Agent. The Administrative Agent shall give notice of such resignation to the
Lenders.

          12.6 Execution of Loan Documents; Borrowing Base Certificate. The Borrowers hereby
empower and authorize the Borrower Representative, on behalf of the Borrowers, to execute and
deliver to the Agents, the Applicable Issuing Parties and the Lenders the Loan Documents and all
related agreements, certificates, documents, or instruments as shall be necessary or appropriate to
effect the

74

 

purposes of the Loan Documents. Each Borrower agrees that any action taken by the
Borrower Representative or the Borrowers in accordance with the terms of this Agreement or the
other Loan Documents, and the exercise by the Borrower Representative of its powers set forth
therein or herein, together with such other powers that are reasonably incidental thereto, shall be
binding upon all of the Borrowers.

75

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed
and delivered by their proper and duly
authorized officers as of the day and year first
above written.

	 	 	 	 	 
	 	ASPEN INSURANCE HOLDINGS LIMITED,

as a Borrower

 	 
	 	By:  	/s/ Richard Houghton
 	 
	 	 	Name:  	Richard Houghton 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ASPEN INSURANCE LIMITED,

as a Borrower

 	 
	 	By:  	/s/ David Skinner
 	 
	 	 	Name:  	David Skinner 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ASPEN INSURANCE UK LIMITED,

as a Borrower

 	 
	 	By:  	/s/ Katharine Wade
 	 
	 	 	Name:  	Katharine Wade 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ASPEN (UK) HOLDINGS LIMITED,

as a Borrower

 	 
	 	By:  	/s/ Katharine Wade
 	 
	 	 	Name:  	Katharine Wade 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	ASPEN SPECIALTY INSURANCE COMPANY,

as a Borrower

 	 
	 	By:  	/s/ Mark Jones
 	 
	 	 	Name:  	Mark Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ASPEN U.S. HOLDINGS, INC.

as a Borrower

 	 
	 	By:  	/s/ Mark Jones
 	 
	 	 	Name:  	Mark Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ASPEN UNDERWRITING LIMITED,

as a Borrower

 	 
	 	By:  	/s/ Stuart Rouse
 	 
	 	 	Name:  	Stuart Rouse 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as Administrative Agent and a Lender

 	 
	 	By:  	/s/ Stuart Ratcliffe
 	 
	 	 	Name:  	Stuart Ratcliffe 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.

as Syndication Agent and a Lender

 	 
	 	By:  	/s/ Maureen P. Maroney
 	 
	 	 	Name:  	Maureen P. Maroney 	 
	 	 	Title:  	Authorized Signatory 	 
	 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Collateral Agent

 	 
	 	By:  	/s/ Anna Yiu
 	 
	 	 	Name:  	Anna Yiu 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Lender

 	 
	 	By:  	/s/ Michael Pensari
 	 
	 	 	Name:  	Michael Pensari 	 
	 	 	Title:  	V.P 	 
	 

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Evan Glass
 	 
	 	 	Name:  	Evan Glass 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	LLOYDS TSB BANK PLC,

as a Lender

 	 
	 	By:  	/s/ Morgan Beanland
 	 
	 	 	Name:  	Morgan Beanland 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Candi Obrentz
 	 
	 	 	Name:  	Candi Obrentz 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK SECURITIES INC.

as Co-Documentation Agent

 	 
	 	By:  	/s/ John S. Mcgill
 	 
	 	 	Name:  	John S. Mcgill 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Kathleen Bowers
 	 
	 	 	Name:  	Kathleen Bowers 	 
	 	 	Title:  	Director 	 
	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH

as a Lender

 	 
	 	By:  	/s/ John S. Mcgill
 	 
	 	 	Name:  	John S. Mcgill 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Kathleen Bowers
 	 
	 	 	Name:  	Kathleen Bowers 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	HSBC BANK BERMUDA LIMITED,

as a Lender

 	 
	 	By:  	/s/ Shannon Burgess
 	 
	 	 	Name:  	Shannon Burgess 	 
	 	 	Title:  	Vice President, Global Banking 	 
	 
	 	 	 
	 	By:  	/s/ Richard Moseley
 	 
	 	 	Name:  	Richard Mosely 	 
	 	 	Title:  	Deputy CEO, HSBC Bank Bermuda 	 
	 

 

 

	 	 	 	 	 
	 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK as a Lender

 	 
	 	By:  	/s/ Charles Kornberger
 	 
	 	 	Name:  	Charles Kornberger 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Gina Harth-Cryde
 	 
	 	 	Name:  	Gina Harth-Cryde 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

ANNEX A

PRICING GRID

	 	 	 	 	 	 	 
	 	 	 	 	Eurodollar Loan	 	 
	 	 	Commitment Fee 	 	Applicable Margin	 	ABR Loan Applicable
	Debt Rating	 	Rate (bps)	 	(bps)	 	Margin (bps)
	3A-/A3
	 	25.0
	 	200.0
	 	100.0
	BBB+/Baa1
	 	30.0
	 	225.0
	 	125.0
	BBB/Baa2
	 	40.0
	 	250.0
	 	150.0
	BBB-/Baa3
	 	50.0
	 	300.0
	 	200.0
	Any less favorable 

rating or no rating
	 	62.5
	 	350.0
	 	250.0

          For purposes of the Pricing Grid, “Debt Rating” means, as of any date of
determination, the long term unsecured senior, non-credit enhanced debt rating of the Company as
determined by S&P or Moody’s, as the case may be, provided that if a Debt Rating is issued
by each of S&P and Moody’s, then the higher of such Debt Ratings shall apply, unless there
is a split in Debt Ratings of more than one level, in which case the level that is one level lower
than the higher Debt Rating shall apply. The Debt Ratings shall be determined from the most recent
public announcement of any changes in the Debt Ratings.

          For the purposes of the Pricing Grid, changes in the Applicable Margin resulting from changes
in the Debt Rating shall become effective on the date that is three Business Days after the date on
which new ratings are issued by S&P or Moody’s and shall remain in effect until the next change to
be effected pursuant to this paragraph.

 

 

Schedule 1.1

COMMITMENTS

	 	 	 
	Lender	 	Commitment
	Barclays Bank PLC
	 	$50,000,000
	 
	Citibank, N.A.
	 	$50,000,000
	 
	Credit Agricole Corporate and Investment Bank
	 	$40,000,000
	 
	Deutsche Bank AG New York Branch
	 	$40,000,000
	 
	The Bank of New York Mellon
	 	$40,000,000
	 
	Lloyds TSB Bank PLC
	 	$25,000,000
	 
	U.S. Bank National Association
	 	$25,000,000
	 
	HSBC Bank Bermuda Limited
	 	$10,000,000
	 
	Total
	 	$280,000,000

 

 

Schedule 4.13

SUBSIDIARIES

	 	 	 	 	 
	 	 	 	 	Percentage of Capital Stock
	Name	 	Jurisdiction of Incorporation	 	Owned by any Borrower
	Acorn Limited

	 	Bermuda
	 	100% owned by Aspen Insurance Holdings Limited
	 
	 	 	 	 
	Aspen Insurance Limited*

	 	Bermuda
	 	100% owned by Aspen Insurance Holdings Limited
	 
	 	 	 	 
	Aspen (UK) Holdings Limited*

	 	England and Wales
	 	100% owned by Aspen Insurance Holdings Limited
	 
	 	 	 	 
	Aspen Managing Agency Limited

	 	England and Wales
	 	100% owned by Aspen Insurance Holdings Limited
	 
	 	 	 	 
	Aspen Underwriting Limited*

	 	England and Wales
	 	100% owned by Aspen Insurance Holdings Limited
	 
	 	 	 	 
	Aspen Insurance UK Limited*

	 	England and Wales
	 	100% owned by Aspen (UK) Holdings Limited
	 
	 	 	 	 
	Aspen Insurance UK Services Limited

	 	England and Wales
	 	100% owned by Aspen (UK) Holdings Limited
	 
	 	 	 	 
	AIUK Trustees Limited

	 	England and Wales
	 	100% owned by Aspen Insurance UK Services Limited
	 
	 	 	 	 
	APJ Continuation Limited

	 	England and Wales
	 	100% owned by Aspen (UK) Holdings Limited
	 
	 	 	 	 
	APJ Services Limited

	 	England and Wales
	 	100% owned by APJ Continuation Limited
	 
	 	 	 	 
	APJ Asset Protection Jersey Limited

	 	Jersey
	 	100% owned by APJ Continuation Limited
	 
	 	 	 	 
	Aspen Risk Management Limited

	 	England and Wales
	 	80% owned by Aspen (UK) Holdings Limited
	 
	 	 	 	 
	 

	 	 	 	20% owned by employees of Aspen Risk Management Limited

 

 

	 	 	 	 	 
	 	 	 	 	Percentage of Capital Stock
	Name	 	Jurisdiction of Incorporation	 	Owned by any Borrower
	Aspen U.S. Holdings, Inc.*

	 	U.S. — Delaware
	 	100% owned by Aspen (UK) Holdings Limited
	 
	 	 	 	 
	Aspen Insurance U.S. Services Inc.

	 	U.S. — Delaware
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Specialty Insurance Company*

	 	U.S. — North Dakota
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Re America, Inc.

	 	U.S. — Delaware
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Re America Risk Solutions LLC

	 	U.S. — Connecticut
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Specialty Insurance Solutions, LLC

	 	U.S. — California
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Specialty Insurance Management, Inc.

	 	U.S. — Massachusetts
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen Re America CA, LLC

	 	U.S. — California
	 	100% owned by Aspen U.S. Holdings, Inc.
	 
	 	 	 	 
	Aspen US Insurance Company**

	 	U.S. — New York
	 	100% owned by Aspen U.S. Holdings, Inc.

 

			
	*	 	Subsidiary Borrower
	 
	**	 	NY Admitted Company — Application Pending

 

 

Schedule 7.2(b)(iv)

EXISTING INDEBTEDNESS

	1.	 	Barclaycard Facility — facility (which was renewed on July 4, 2005) in an amount of
up to £500,000 provided by Barclays to AIUK to be used for employee expense reimbursement.
	 
	2.	 	Barclays Bankers Automated Clearing Systems (BACS) Facility — short-term overdraft
facility (which was renewed on July 4, 2005) in an amount of £900,000 provided by Barclays to
AIUK.
	 
	3.	 	AFTS Daylight Overdraft Facility — intra day facility (which was renewed on July 4,
2005) for outward payments up to £250,000.
	 
	4.	 	AFTS Settlement Risk Limit — inter day facility (which was renewed on July 4, 2005)
for outward payments up to £250,000.

 

 

Schedule 7.5

INVESTMENTS

None.

 

 

Schedule 7.6

EXISTING LIENS

None.

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