Document:

Exhibit 4.11

SECOND SUPPLEMENTAL INDENTURE

          THIS SECOND
SUPPLEMENTAL INDENTURE (this “Second Supplemental
Indenture”) is dated as of November 30, 2012, among FLAGSTONE FINANCE S.A., a Luxembourg société
anonyme (the “Company”),
FLAGSTONE REINSURANCE HOLDINGS (BERMUDA) LIMITED, a Bermuda exempted company
(the “Successor Guarantor”), as successor in interest to FLAGSTONE
REINSURANCE HOLDINGS, S.A., a Luxembourg société anonyme (the “Guarantor”),
the Guarantor and WILMINGTON TRUST COMPANY, a Delaware trust company, as
trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H :

          WHEREAS,
the Company and the Guarantor (as successor in interest to Flagstone
Reinsurance Holdings Limited) has executed and delivered to the Trustee a Junior
Subordinated Indenture, dated as of June 8, 2007, between the Company, the
Guarantor and the Trustee,
as supplemented by the First Supplemental Indenture, dated as of May 17, 2010 (together,
the “Indenture”),
providing for the issuance of the Company’s floating rate, unsecured junior
subordinated deferrable interest notes (the “Securities”), which
Securities are guaranteed on a subordinated basis by the Guarantor (the “Guarantee”);

          WHEREAS,
the Trustee has heretofore authenticated, and the Company has heretofore issued
$100,000,000 aggregate principal amount of Floating Rate Deferrable Interest
Subordinated Notes due 2037 under the Indenture, of which $88,750,000 aggregate
principal amount of such notes remain outstanding; 

          WHEREAS, on
the date hereof, the Guarantor will merge with and into the Successor
Guarantor, with the Successor Guarantor as the survivor (the “Merger”)
pursuant to that certain Agreement and Plan of Merger, dated as of August 30,
2012, among the Guarantor, the Successor Guarantor, Validus Holdings, Ltd., a
Bermuda exempted company, and Validus UPS, Ltd., a Bermuda exempted company
(the “Merger Agreement”);

          WHEREAS, in
connection with the consummation of the transactions contemplated by the Merger
Agreement, the Successor Guarantor will assume all of the obligations of the
Guarantor under the Indenture and the Guarantee; 

          WHEREAS,
Section 8.1 of the Indenture provides, in part, that the Guarantor may merge into any other Person or transfer
all or substantially all of its properties and assets as an entirety to another
Person provided that (a) (i) the Successor Guarantor is an entity organized and
existing under the laws of the United States of America or any State or
Territory thereof, the District of Columbia, Bermuda, the Cayman Islands,
Luxembourg or any other country which is a member state of the Organization for
Economic Cooperation and Development and (ii) the Successor Guarantor 

expressly assumes, by an indenture supplement executed and delivered to
the Trustee, all of the obligations of the Guarantor to be performed or
observed by it under the Indenture or the Guarantee; (b) immediately after
giving effect to such transfer, no Event of Default, and no event that, after
notice or lapse of time, or both, would constitute an Event of Default, shall
have happened and be continuing; and (c) an Officers’ Certificate and an
Opinion of Counsel have been delivered to the Trustee, each stating that such
transfer and the supplemental indenture comply with Article VIII of the Indenture;

          WHEREAS,
Section 9.1(a) of the Indenture provides that the Company and the Guarantor,
when authorized by a Board Resolution, and the Trustee may amend the Indenture
without notice or consent of any Holder to evidence the succession of another
Person to the Guarantor;

          WHEREAS,
the Successor Guarantor, pursuant to Section 8.1(b)(iii) and Section 9.3 of the
Indenture and in accordance with Section 1.2 of the Indenture, has delivered to
the Trustee, or caused to be delivered to the Trustee on its behalf, an Opinion
of Counsel and an Officers’ Certificate, dated as of the date hereof, stating
(a) that the Merger and this Second Supplemental Indenture each complies with
Article VIII of the Indenture, (b) that all conditions and covenants provided
for in the Indenture relating to the Merger have been complied with and (c)
that the execution of this Second Supplemental Indenture is authorized or
permitted by the Indenture and all conditions and covenants provided for in the
Indenture relating thereto have been complied with; and

          WHEREAS,
all things necessary (a) to authorize the assumption by the Successor Guarantor
of the Guarantor’s obligations under the Indenture and the Guarantee and (b) to
make this Second Supplemental Indenture when executed by the parties hereto a
valid and binding amendment of and supplement to the Indenture have been done
and performed.

          NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
mutually covenant and agree as follows:

1. Definitions. Capitalized terms used herein and not defined
herein have the meanings ascribed to such terms in the Indenture.

2. Assumption of Obligations. Pursuant to, and in compliance and
in accordance with, Section 8.1(b) of the Indenture, the Successor Guarantor hereby expressly assumes, from and after the
effective date of the Merger (the “Effective Time”), all of the
obligations of the Guarantor to be performed or observed by it under the
Indenture and the Guarantee.

3. Succession and Substitution. Pursuant to, and in compliance
and in accordance with, Section 8.2 of the Indenture, the Successor Guarantor,
from and after the Effective Time, by virtue of the aforesaid assumption and
the delivery of this Second Supplemental Indenture, shall succeed to, and be substituted for, and may exercise
every right and power of, the Guarantor under the Indenture, with the same
effect as if the Successor Guarantor had originally been named in the Indenture
as the Guarantor, and the Guarantor shall be discharged from all obligations
and covenants under the Indenture and the Securities.

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4. Representations and Warranties.

          (a)
Each of the Company and the Successor Guarantor represents and warrants (i) it
has all necessary power and authority to execute and deliver this Second
Supplemental Indenture and to perform the Indenture, (ii) immediately after
giving effect to the Merger and this Second Supplemental Indenture, no Event of
Default, and no event which, after notice or lapse of time or both, would
constitute an Event of Default, has occurred and is continuing and (iii) this
Second Supplemental Indenture is executed and delivered pursuant to Article
VIII and Section 9.1(a) of the Indenture and does not require the consent of
any Holders.

          (b)
The Successor Guarantor represents and warrants that (i) it is the successor of
the Guarantor pursuant to the Merger effected in accordance with applicable law
and (ii) it is an entity organized and existing under the laws of Bermuda.

5. Effectiveness and Operativeness. This Second Supplemental
Indenture shall be deemed to have become effective, and the provisions provided
for in this Second Supplemental Indenture shall be deemed to have become
operative, immediately upon consummation of the Merger, provided, however:

          (a)
the Trustee shall have executed a counterpart of this Second Supplemental
Indenture and shall have received one or more counterparts of this Second
Supplemental Indenture executed by the Company, the Successor Guarantor and the
Guarantor; 

          (b)
the Trustee shall have received the Officers’ Certificate and Opinion of
Counsel described in the recitals of this Second Supplemental Indenture; and

          (c)
the Trustee shall have received a copy of a Board Resolution of the Guarantor
authorizing the execution and delivery of this Second Supplemental Indenture.

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

7. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CONFLICT OF LAWS PROVISIONS THEREOF (OTHER THAN SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW).

8. Trustee Makes No Representations. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Second Supplemental Indenture or the due execution thereof
by the Company or the Successor Guarantor. The recitals contained herein shall
be taken as the statements solely of the Company or the Successor Guarantor, as
the case may be, and the Trustee assumes no responsibility for the correctness
thereof.

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9. Counterparts. The parties hereto may sign any number of
copies of this Second Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

10. Effect of Headings. The Section headings herein are for
convenience only and shall not effect the construction thereof.

*   *   *   *   *

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          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE FINANCE S.A.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/ William F. Fawcett

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: William F. Fawcett

 	
  

 
	
  

 	
  

 	
 Title:   Director

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE REINSURANCE HOLDINGS
(BERMUDA) LIMITED

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/ David A. Brown

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: David A. Brown

 	
  

 
	
  

 	
  

 	
 Title:   Director

 	
  

 

[Signature Page to
Second Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE REINSURANCE HOLDINGS, S.A.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ David A. Brown

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: David A. Brown

 	
  

 
	
  

 	
  

 	
 Title:   Director

 	
  

 

[Signature Page to
Second Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WILMINGTON TRUST COMPANY,

 not in its individual capacity, but solely as Trustee

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Michael H. Wass

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Michael H. Wass

 	
  

 
	
  

 	
  

 	
 Title:   Financial Services Officer

 	
  

 

[Signature Page to Second Supplemental Indenture]Exhibit 4.12 

THIRD SUPPLEMENTAL INDENTURE

          THIS THIRD
SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”) is dated as
of November 30, 2012, among FLAGSTONE FINANCE S.A., a Luxembourg société anonyme (the “Company”),
VALIDUS UPS, LTD., a Bermuda exempted company (the “Successor Guarantor”), as
successor in interest to FLAGSTONE REINSURANCE HOLDINGS (BERMUDA) LIMITED, a
Bermuda exempted company (the “Guarantor”), VALIDUS HOLDINGS, LTD., a
Bermuda exempted company (the “Additional Guarantor”), and WILMINGTON
TRUST COMPANY, a Delaware trust company, as trustee under the indenture
referred to below (the “Trustee”). 

W I T N E S S E T H :

          WHEREAS,
the Company and the Guarantor (as successor in interest to Flagstone
Reinsurance Holdings Limited) has executed and delivered to the Trustee a
Junior Subordinated Indenture, dated as of June 8, 2007, between the Company,
the Guarantor and the Trustee, as supplemented by the First Supplemental
Indenture, dated as of May 17, 2010, and the Second Supplemental Indenture,
dated as of November 30, 2012 (collectively, the “Indenture”), providing
for the issuance of the Company’s floating rate, unsecured junior subordinated
deferrable interest notes (the “Securities”), which Securities are
guaranteed on a subordinated basis by the Guarantor (the “Guarantee”); 

          WHEREAS,
the Trustee has heretofore authenticated, and the Company has heretofore issued
$100,000,000 aggregate principal amount of Floating Rate Deferrable Interest
Subordinated Notes due 2037 under the Indenture, of which $88,750,000 aggregate
principal amount of such notes remains outstanding (the “Outstanding Notes”);

          WHEREAS, on
the date hereof, the Guarantor will merge with and into the Successor
Guarantor, a wholly owned subsidiary of the Additional Guarantor, with the
Successor Guarantor as the survivor (the “Merger”) pursuant to that
certain Agreement and Plan of Merger, dated as of August 30, 2012, among
Flagstone Reinsurance Holdings, S.A., a Luxembourg société anonyme, the Guarantor, the Additional Guarantor and
the Successor Guarantor (the “Merger Agreement”); 

          WHEREAS, in
connection with the consummation of the transactions contemplated by the Merger
Agreement, the Successor Guarantor will assume all of the obligations of the
Guarantor under the Indenture and the Guarantee, and the Additional Guarantor
desires to provide a full and unconditional guarantee of the obligations of the
Company under the Indenture and the Securities on the terms and conditions set
forth herein; 

          WHEREAS,
Section 8.1 of the Indenture provides, in part, that the
Guarantor may merge into any other Person or transfer all or substantially all of its properties and assets as
an entirety to another Person provided that (a) (i) the Successor Guarantor is
an entity organized and existing under the laws of 

the United States of America or any State or Territory thereof, the
District of Columbia, Bermuda, the Cayman Islands, Luxembourg or any other
country which is a member state of the Organization for Economic Cooperation
and Development and (ii) the Successor Guarantor expressly assumes, by an
indenture supplement executed and delivered to the Trustee, all of the
obligations of the Guarantor to be performed or observed by it under the
Indenture or the Guarantee; (b) immediately after giving effect to such
transfer, no Event of Default, and no event that, after notice or lapse of
time, or both, would constitute an Event of Default, shall have happened and be
continuing; and (c) an Officers’ Certificate and an Opinion of Counsel have
been delivered to the Trustee, each stating that such transfer and the
supplemental indenture comply with Article VIII of the Indenture; 

          WHEREAS,
Section 9.1 of the Indenture provides, in part, that the Company and the
Guarantor, when authorized by a Board Resolution, and the Trustee may enter
into one or more indentures supplemental to the Indenture without notice or
consent of any Holder (a) to evidence the succession of another Person to the
Guarantor and (b) to make or amend any provisions with respect to matters or
questions arising under the Indenture, which shall not be inconsistent with the
other provisions of the Indenture, provided, that such action shall not
adversely affect in any material respect the interests of any Holders; 

          WHEREAS,
the Successor Guarantor, pursuant to Section 8.1(b)(iii) and Section 9.3 of the
Indenture and in accordance with Section 1.2 of the Indenture, has delivered to
the Trustee, or caused to be delivered to the Trustee on its behalf, an Opinion
of Counsel and an Officers’ Certificate, dated as of the date hereof, stating
(a) that the Merger and this Third Supplemental Indenture each complies with
Article VIII of the Indenture, (b) that all conditions and covenants provided
for in the Indenture relating to the Merger have been complied with and (c)
that the execution of this Third Supplemental Indenture is authorized or
permitted by the Indenture and all conditions and covenants provided for in the
Indenture relating thereto have been complied with; and 

          WHEREAS,
all things necessary (a) to authorize the assumption by the Successor Guarantor
of the Guarantor’s obligations under the Indenture and the Guarantee, (b) to
authorize the Additional Guarantor’s guarantee of the obligations of the Company
under the Indenture and the Securities and (c) to make this Third Supplemental
Indenture when executed by the parties hereto a valid and binding amendment of
and supplement to the Indenture have been done and performed. 

          NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
mutually covenant and agree as follows: 

1. Definitions. Capitalized terms used herein and not defined
herein have the meanings ascribed to such terms in the Indenture. 

2. Assumption of Obligations. Pursuant to, and in compliance and
in accordance with, Section 8.1(b) of the Indenture, the Successor Guarantor
hereby expressly assumes, from and after the effective date of the Merger (the
“Effective Time”), all of the obligations of the Guarantor to be
performed or observed by it under the Indenture and the Guarantee. 

2

3. Succession and Substitution. Pursuant to, and in compliance
and in accordance with, Section 8.2 of the Indenture, the Successor Guarantor,
from and after the Effective Time, by virtue of the aforesaid assumption and
the delivery of this Third Supplemental Indenture, shall succeed to, and be
substituted for, and may exercise every right and power of, the Guarantor under
the Indenture, with the same effect as if the Successor Guarantor had
originally been named in the Indenture as the Guarantor, and the Guarantor
shall be discharged from all obligations and covenants under the Indenture and
the Securities. 

4. Representations and Warranties.

          (a) Each of
the Company, the Successor Guarantor and the Additional Guarantor represents
and warrants that (i) it has all necessary power and authority to execute and
deliver this Third Supplemental Indenture and to perform the Indenture, (ii)
immediately after giving effect to the Merger and this Third Supplemental
Indenture, no Event of Default, and no event which, after notice or lapse of
time, or both, would constitute an Event of Default, has occurred and is
continuing and (iii) this Third Supplemental Indenture is executed and
delivered pursuant to Article VIII and Section 9.1(a) and (b) of the Indenture
and does not require the consent of any Holders. 

          (b) The
Successor Guarantor represents and warrants that (i) it is the successor of the
Guarantor pursuant to the Merger effected in accordance with applicable law and
(ii) it is an entity organized and existing under the laws of Bermuda. 

5. Additional Guarantee.

          The
following Sections 15.1 through and including Section 15.8 shall be added as a
new Article XV of the Indenture, and shall hereinafter be deemed a part of the
Indenture and applicable to the Outstanding Notes. The following definition
shall apply to Article XV of the Indenture, as amended hereby: “Additional
Guarantor” shall mean Validus Holdings, Ltd., a Bermuda exempted company. 

          Section
15.1. Additional Guarantees.

          (a) With
respect to each series of Securities to which this Article XV is expressly
made applicable, the Additional Guarantor hereby unconditionally and
irrevocably guarantees to each Holder and to the Trustee and its successors and
assigns (i)(a) the full and punctual payment of principal and interest
(including any Additional Interest) on the Securities of such Holder when due,
whether at maturity, by acceleration, by redemption or otherwise, and all other
monetary obligations of the Company to the Holders and the Trustee under this
Indenture and the Securities and (b) the full and punctual performance within
applicable grace periods of all other obligations of the Company under this
Indenture and the Securities and (ii) in the case of any extension of time of
payment or renewal of any Securities or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal (all of the foregoing being hereinafter
collectively called the “Additional Guarantees”). 

          (b) The
Additional Guarantor waives presentation to, demand of, payment from and
protest to the Company of any of the Additional Guarantees and also waives
notice of protest for 

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nonpayment. The Additional Guarantor waives notice of any default under
the Securities or the Additional Guarantees. The Additional Guarantees
hereunder shall not be affected by (i) the failure of any Holder or the Trustee
to assert any claim or demand or to enforce any right or remedy against the
Company or any other Person under this Indenture, the Securities or any other
agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Indenture, the Securities or any other agreement; (iv) the release of
any security held by any Holder or the Trustee for the Additional Guarantees or
any of them; (v) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Additional Guarantees or (vi) any
change in the ownership of the Additional Guarantor. 

          (c) The
Additional Guarantor further agrees that its Additional Guarantees hereunder
constitute a guarantee of payment, performance and compliance when due (and not
a guarantee of collection). 

          (d) The
Additional Guarantor hereby agrees that its obligations hereunder shall be as
principal and not merely as surety, and shall be absolute and unconditional,
irrespective of, and shall be unaffected by, any invalidity, irregularity or
failure to enforce the provisions of any Security or this Indenture, or any
waiver, modification, consent or indulgence granted to the Company with respect
thereto (unless the same shall also be provided the Additional Guarantor), by
the Holder of any Security or the Trustee, the recovery of any judgment against
the Company or any action to enforce the same, or any other circumstances which
may otherwise constitute a legal or equitable discharge of a surety or
guarantor; provided that, notwithstanding the foregoing, no such waiver, modification,
indulgence or circumstance shall, without the consent of the Additional
Guarantor, increase the principal amount of a Security or the interest rate
thereon or increase any premium payable upon redemption thereof. The Additional
Guarantees shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Additional Guarantees or
otherwise. Without limiting the generality of the foregoing, the Additional
Guarantor covenants that the Additional Guarantees shall not be discharged or
impaired or otherwise affected by the failure of any Holder or the Trustee to
assert any claim or demand or to enforce any remedy under this Indenture, the
Securities or any other agreement, by any waiver or modification of any
thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of the Additional Guarantor or would otherwise operate as
a discharge of the Additional Guarantor as a matter of law or equity. 

          (e) The
Additional Guarantor further agrees that the Additional Guarantees shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal, premium, if any, or interest on any
Security is rescinded or must otherwise be restored by any Holder or the
Trustee upon the bankruptcy or reorganization of the Company or otherwise. 

          (f) In furtherance
of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against the Additional Guarantor by virtue
hereof, 

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upon the failure of the Company to pay the principal of, premium on, if
any, or interest on any Security when and as the same shall become due, whether
at maturity, by acceleration, by redemption or otherwise, or to perform or
comply with any other obligation under the Securities, the Additional Guarantor
hereby promises to and will, upon receipt of written demand by the Trustee,
forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an
amount equal to the sum of (i) the unpaid amount of such obligations under such
Securities, (ii) accrued and unpaid interest on such obligations under such
Securities (but only to the extent not prohibited by law) and (iii) all other
monetary obligations with respect to such Securities of the Company to the
Holders and the Trustee. 

          (g) The
Additional Guarantor will be subrogated to all rights of the Holders against
the Company in respect of any amount paid by the Additional Guarantor pursuant
to the provisions of the Additional Guarantees; provided, however, that the
Additional Guarantor shall not be entitled to enforce, or to receive any
payments arising out of or based upon, such right of subrogation until the
principal of, premium on, if any, and interest on such Securities shall have
been paid in full. The Additional Guarantor further agrees that, as between it,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the
maturity of the obligations with respect to the Securities hereby may be
accelerated as provided herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations with
respect to such Securities, and (y) in the event of any declaration of
acceleration of such obligations as provided herein, the Additional Guarantees
(whether or not due and payable) shall forthwith become due and payable by the
Additional Guarantor for the purposes of this Article XV. 

          (h) The
Additional Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys’ fees and expenses) incurred by the Trustee or
any Holder in enforcing any rights under this Article XV. 

          Section
15.2. Successors and Assigns.

          This Article
XV shall be binding upon the Additional Guarantor and its successors and
assigns and shall inure to the benefit of the successors and assigns of the
Trustee and the Holders and, in the event of any transfer or assignment of
rights by any Holder or the Trustee, the rights and privileges conferred upon
that party in this Indenture and in the Securities shall automatically extend
to and be vested in such transferee or assignee, all subject to the terms and
conditions of this Indenture. 

          Section
15.3. No Waiver.

          Neither a
failure nor a delay on the part of either the Trustee or the Holders in
exercising any right, power or privilege under this Article XV shall
operate as a waiver thereof, nor shall a single or partial exercise thereof
preclude any other or further exercise of any right, power or privilege. The
rights, remedies and benefits of the Trustee and the Holders herein expressly
specified are cumulative and not exclusive of any other rights, remedies or
benefits which either may have under this Article XV at law, in equity,
by statute or otherwise. 

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          Section
15.4. Modification.

          No
modification, amendment or waiver of any provision of this Article XV, nor the
consent to any departure by the Additional Guarantor therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
Trustee, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand
on the Additional Guarantor in any case shall entitle the Additional Guarantor
to any other or further notice or demand in the same, similar or other
circumstances. 

          Section
15.5. Notation of Additional Guarantees Not Required.

          The
Additional Guarantor hereby agrees that the Additional Guarantees set forth in
this Article XV shall remain in full force and effect notwithstanding the
absence on any Security of a notation relating to the Additional Guarantees. 

          Section
15.6. Benefits Acknowledged.

          The
Additional Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and
that the guarantees and waivers made by it pursuant to its Additional
Guarantees are knowingly made in contemplation of such benefits. 

          Section
15.7. Release of Additional Guarantees.

          Provided
that no notice that an Event of Default has occurred and is continuing has been
delivered to the Holders, the Additional Guarantees shall be automatically and
unconditionally released and discharged, and no further action by the
Additional Guarantor, the Company or the Trustee is required for the release of
the Additional Guarantees, upon the Company delivering to the Trustee an
Officers’ Certificate stating that the Additional Guarantees are released in
full. 

          Section
15.8 Limitation on Additional Guarantor Liability.

          The
Additional Guarantor, and by its acceptance of Securities, each
Holder, hereby confirms that it is the intention of all such parties that the
Additional Guarantees of the Additional Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Title 11, U.S. Code or any similar
federal, state or foreign law for the relief of debtors, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal,
state or foreign law to the extent applicable to the Additional Guarantees. To
effectuate the foregoing intention, the Trustee, the Holders and the Additional
Guarantor hereby irrevocably agree that the obligations of the Additional
Guarantor shall be limited to the maximum amount as will, after giving effect
to such maximum amount and all other contingent and fixed liabilities of the
Additional Guarantor that are relevant under such laws and after giving effect
to any collections from, result in the obligations of the Additional Guarantor
under its Additional Guarantees not constituting a fraudulent conveyance or
fraudulent transfer under applicable law. 

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6. Subordination of Additional Guarantees.

          The
following Sections 16.1 through and including Section 16.12 shall be added as a
new Article XVI of the Indenture, and shall hereinafter be deemed a part of the
Indenture and applicable to the Outstanding Notes. 

          Section
16.1. Securities Subordinate to Senior Debt of the Additional Guarantor.

          The
Additional Guarantor covenants and agrees, and each Holder of a Security, by
its acceptance thereof, likewise covenants and agrees, that, to the extent and
in the manner hereinafter set forth in this Article XVI, the payment of
the principal of and any premium and interest (including any Additional
Interest) on each and all of the Securities pursuant to the Additional
Guarantees are hereby expressly made subordinate and subject in right of
payment to the prior payment in full of all Senior Debt of the Additional
Guarantor. 

          Section
16.2. No Payment When Senior Debt of the Additional Guarantor in Default;
Payment Over of Proceeds Upon Dissolution, Etc.

          In the
event and during the continuation of any default by the Additional Guarantor in
the payment of any principal of or any premium or interest on any Senior Debt
of the Additional Guarantor (following any grace period, if applicable) when
the same becomes due and payable, whether at maturity or at a date fixed for
redemption or by declaration of acceleration or otherwise, then, upon written
notice of such default to the Additional Guarantor by the holders of such
Senior Debt of the Additional Guarantor or any trustee therefor, unless and
until such default shall have been cured or waived or shall have ceased to
exist, no direct or indirect payment (in cash, property, securities, by set-off
or otherwise) shall be made or agreed to be made pursuant to the Additional
Guarantees on account of the principal of or any premium or interest (including
any Additional Interest) on any of the Securities, or in respect of any
redemption, repayment, retirement, purchase or other acquisition of any of the
Securities. 

          In the
event of a bankruptcy, insolvency or other proceeding involving the Additional
Guarantor described in clause (d) or (e) of the definition of Event of Default
(each such event, if any, herein sometimes referred to as a “Proceeding”), all Senior Debt of the
Additional Guarantor (including any interest thereon accruing after the
commencement of any such proceedings) shall first be paid in full before any
payment or distribution, whether in cash, securities or other property, shall
be made to any Holder of any of the Securities on account thereof pursuant to
the Additional Guarantees. Any payment or distribution, whether in cash,
securities or other property (other than securities of the Additional Guarantor
or any other entity provided for by a plan of reorganization or readjustment
the payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the
Additional Guarantees, to the payment of all Senior Debt of the Additional
Guarantor at the time outstanding and to any securities issued in respect
thereof under any such plan of reorganization or readjustment), which would
otherwise (but for these subordination provisions) be payable or deliverable in
respect of the Securities pursuant to the Additional Guarantees shall be paid
or delivered directly to the holders of Senior Debt of the Additional Guarantor
in accordance with the priorities then existing among such holders until all
Senior 

7

Debt of the Additional Guarantor (including any interest thereon
accruing after the commencement of any Proceeding) shall have been paid in full. 

          Section
16.3. Payment Permitted If No Default.

          Nothing
contained in this Article XVI or elsewhere in this Indenture or in any
of the Securities shall prevent (a) the Additional Guarantor, at any time,
except during the pendency of the conditions described in paragraph (a) of Section
16.2 or of any Proceeding referred to in Section 16.2, from making
payments at any time of principal of and any premium or interest (including any
Additional Interest) on the Securities pursuant to the Additional Guarantees or
(b) the application by the Trustee of any moneys deposited with it hereunder to
the payment of or on account of the principal of and any premium or interest
(including any Additional Interest) on the Securities pursuant to the
Additional Guarantees or the retention of such payment by the Holders, if, at
the time of such application by the Trustee, it did not have knowledge (in
accordance with Section 16.8) that such payment would have been
prohibited by the provisions of this Article XVI, except as provided in Section
16.8. 

          Section
16.4. Subrogation to Rights of Holders of Senior Debt of the Additional
Guarantor.

          Subject to
the payment in full of all amounts due or to become due on all Senior Debt of the
Additional Guarantor, or the provision for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Debt
of the Additional Guarantor, the Holders of the Securities shall be subrogated
to the extent of the payments or distributions made to the holders of such
Senior Debt of the Additional Guarantor pursuant to the provisions of this Article
XVI (equally and ratably with the holders of all indebtedness of the
Additional Guarantor that by its express terms is subordinated to Senior Debt
of the Additional Guarantor to substantially the same extent as the Additional
Guarantees are subordinated to the Senior Debt of the Additional Guarantor and
are entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt of the Additional Guarantor)
to the rights of the holders of such Senior Debt of the Additional Guarantor to
receive payments and distributions of cash, property and securities applicable
to the Senior Debt of the Additional Guarantor until the principal of and any
premium and interest (including any Additional Interest) on the Securities
shall be paid in full. For purposes of such subrogation, no payments or
distributions to the holders of the Senior Debt of the Additional Guarantor of
any cash, property or securities to which the Holders of the Securities or the
Trustee would be entitled under the Additional Guarantees except for the
provisions of this Article XVI, and no payments made pursuant to the provisions
of this Article XVI to the holders of Senior Debt of the Additional
Guarantor by Holders of the Securities or the Trustee, shall, as among the
Additional Guarantor, its creditors other than holders of Senior Debt of the
Additional Guarantor, and the Holders of the Securities, be deemed to be a
payment or distribution by the Additional Guarantor to or on account of the
Senior Debt of the Additional Guarantor. 

          Section
16.5. Provisions Solely to Define Relative Rights.

          The provisions
of this Article XVI are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities under the
Additional Guarantees on the one 

8

hand and the holders of Senior Debt of the Additional Guarantor on the
other hand. Nothing contained in this Article XVI or elsewhere in this
Indenture or in the Securities is intended to or shall (a) impair, as between
the Additional Guarantor and the Holders of the Securities, the obligations of
the Additional Guarantor under the Additional Guarantees, which are absolute
and unconditional, to pay to the Holders of the Securities the principal of and
any premium and interest (including any Additional Interest) on the Securities
as and when the same shall become due and payable in accordance with their
terms, (b) affect the relative rights against the Additional Guarantor of the
Holders of the Securities under the Additional Guarantees and creditors of the
Additional Guarantor other than their rights in relation to the holders of Senior
Debt of the Additional Guarantor or (c) prevent the Trustee or the Holder of
any Security from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, including filing and voting claims in any
Proceeding, subject to the rights, if any, under this Article XVI of the
holders of Senior Debt of the Additional Guarantor to receive cash, property
and securities otherwise payable or deliverable to the Trustee or such Holder.
In addition, nothing contained in this Article XVI is intended to or
shall apply to or affect any amounts payable or paid to the Trustee (including
in its individual capacity) pursuant to Sections 1.15 or 6.6. 

          Section
16.6. Trustee to Effectuate Subordination.

          Each Holder
of a Security by such Holder’s acceptance thereof authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination provided in this Article
XVI and appoints the Trustee such Holder’s attorney-in-fact for any and all
such purposes. 

          Section
16.7. No Waiver of Subordination Provisions.

          No right of
any present or future holder of any Senior Debt of the Additional Guarantor to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the
Additional Guarantor or by any act or failure to act, in good faith, by any
such holder, or by any noncompliance by the Additional Guarantor with the
terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof that any such holder may have or be otherwise charged with. 

          Without in
any way limiting the generality of paragraph (a) of this Section 16.7, the
holders of Senior Debt of the Additional Guarantor may, at any time and from to
time, without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to such Holders of the Securities
and without impairing or releasing the subordination provided in this Article
XVI or the obligations hereunder of such Holders of the Securities to the
holders of Senior Debt of the Additional Guarantor, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Debt of the Additional Guarantor, or
otherwise amend or supplement in any manner Senior Debt of the Additional
Guarantor or any instrument evidencing the same or any agreement under which
Senior Debt of the Additional Guarantor is outstanding, (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Debt of the Additional Guarantor, (iii) release any Person
liable in any manner for the 

9

payment of Senior Debt of the Additional Guarantor and (iv) exercise or
refrain from exercising any rights against the Additional Guarantor and any
other Person. 

          Section
16.8. Notice to Trustee.

          The
Additional Guarantor shall give prompt written notice to a Responsible Officer
of the Trustee of any fact known to the Additional Guarantor that would
prohibit the making of any payment to or by the Trustee in respect of the
Securities pursuant to the Additional Guarantees. Notwithstanding the
provisions of this Article XVI or any other provision of this Indenture,
the Trustee shall not be charged with knowledge of the existence of any facts
that would prohibit the making of any payment to or by the Trustee in respect
of the Securities pursuant to the Additional Guarantees, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Additional Guarantor or a holder of Senior Debt of the Additional
Guarantor or from any trustee, agent or representative therefor; provided, that if the Trustee shall not
have received the notice provided for in this Section 16.8 at least two
Business Days prior to the date upon which by the terms hereof any monies may
become payable for any purpose (including, the payment of the principal of and
any premium on or interest (including any Additional Interest) on any Security
pursuant to the Additional Guarantees), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such monies and to apply the same to the purpose for which they were
received and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date. 

          The Trustee
shall be entitled to rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Debt of the Additional
Guarantor (or a trustee, agent, representative or attorney-in-fact therefor) to
establish that such notice has been given by a holder of Senior Debt of the
Additional Guarantor (or a trustee, agent, representative or attorney-in-fact
therefor). In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
Senior Debt of the Additional Guarantor to participate in any payment or
distribution pursuant to this Article XVI, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Debt of the Additional Guarantor held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article XVI, and if such evidence is not furnished, the Trustee may
defer any payment to such Person pending judicial determination as to the right
of such Person to receive such payment. 

          Section
16.9. Reliance on Judicial Order or Certificate of Liquidating Agent.

          Upon any
payment or distribution of assets of the Additional Guarantor referred to in
this Article XVI, the Trustee and the Holders of the Securities shall be
entitled to conclusively rely upon any order or decree entered by any court of
competent jurisdiction in which such Proceeding is pending, or a certificate of
the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee
for the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt of the Additional Guarantor and
other indebtedness of the Additional Guarantor, the 

10

amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
XVI. 

          Section
16.10. Trustee Not Fiduciary for Holders of Senior Debt of the Additional Guarantor.

          The
Trustee, in its capacity as trustee under this Indenture, shall not be deemed
to owe any fiduciary duty to the holders of Senior Debt of the Additional
Guarantor and shall not be liable to any such holders if it shall in good faith
mistakenly pay over or distribute to Holders of Securities or to the Additional
Guarantor or to any other Person cash, property or securities to which any
holders of Senior Debt of the Additional Guarantor shall be entitled by virtue
of this Article XVI or otherwise. 

          Section
16.11. Rights of Trustee as Holder of Senior Debt of the Additional
Guarantor; Preservation of Trustee’s Rights.

          The Trustee
in its individual capacity shall be entitled to all the rights set forth in
this Article XVI with respect to any Senior Debt of the Additional
Guarantor that may at any time be held by it, to the same extent as any other
holder of Senior Debt of the Additional Guarantor, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

          Section
16.12. Article Applicable to Paying Agents.

          If at any
time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article XVI shall in such
case (unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article XVI in
addition to or in place of the Trustee; provided,
that Sections 16.8 and 16.11 shall not apply to the Additional
Guarantor or any Affiliate of the Additional Guarantor if the Company or such
Affiliate acts as Paying Agent. 

7. Submission to Jurisdiction.

          (a) The
Successor Guarantor agrees that any judicial proceedings instituted in relation
to any matter arising under the Guarantee may be brought in any United States
Federal or New York State court sitting in the Borough of Manhattan, The City
of New York, New York to the extent that such court has subject matter
jurisdiction over the controversy, and, by execution and delivery of this Third
Supplemental Indenture, the Successor Guarantor hereby irrevocably accepts,
generally and unconditionally, the jurisdiction of the aforesaid courts,
acknowledges their competence and irrevocably agrees to be bound by any
judgment rendered in such proceeding. 

          (b) The
Additional Guarantor agrees that any judicial proceedings instituted in
relation to any matter arising under the Additional Guarantees may be brought
in any United States Federal or New York State court sitting in the Borough of
Manhattan, The City of New York, New York to the extent that such court has
subject matter jurisdiction over the controversy, and, by execution and
delivery of this Third Supplemental Indenture, the Additional Guarantor hereby
irrevocably accepts, generally and unconditionally, the jurisdiction of the 

11

aforesaid courts, acknowledges their competence and irrevocably agrees
to be bound by any judgment rendered in such proceeding. 

8. Effectiveness and Operativeness. This Third Supplemental
Indenture shall be deemed to have become effective, and the provisions provided
for in this Third Supplemental Indenture shall be deemed to have become
operative, immediately upon consummation of the Merger, provided, however: 

          (a) the
Trustee shall have executed a counterpart of this Third Supplemental Indenture
and shall have received one or more counterparts of this Third Supplemental
Indenture executed by the Company, the Successor Guarantor and the Additional
Guarantor; 

          (b) the
Trustee shall have received the Officers’ Certificate and Opinion of Counsel
described in the recitals of this Third Supplemental Indenture; and 

          (c) the
Trustee shall have received a copy of a Board Resolution of the Guarantor
authorizing the execution and delivery of this Third Supplemental Indenture. 

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

10. Governing Law. THIS THIRD
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CONFLICT OF LAWS
PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

11. Trustee Makes No Representations. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Third Supplemental Indenture or the due execution thereof
by the Company, the Successor Guarantor or the Additional Guarantor. The
recitals contained herein shall be taken as the statements solely of the
Company, the Successor Guarantor or the Additional Guarantor, as the case may
be, and the Trustee assumes no responsibility for the correctness thereof. 

12. Counterparts. The parties may sign any number of copies of
this Third Supplemental Indenture. Each signed copy shall be an original, all
of them together represent the same agreement. 

13. Effect of Headings. The Section headings herein are for
convenience only and shall not effect the construction thereof. 

*   *   *   *   *

12

          IN WITNESS
WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FLAGSTONE
 FINANCE S.A.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ William
 F. Fawcett

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: William F. Fawcett

 	
  

 
	
  

 	
  

 	
 Title:   Director

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VALIDUS UPS, LTD.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Jeffrey
 D. Sangster

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Jeffrey
 D. Sangster

 	
  

 
	
  

 	
  

 	
 Title:   Chief
 Financial Officer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VALIDUS HOLDINGS, LTD.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Joseph E. Consolino

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Joseph E. Consolino

 	
  

 
	
  

 	
  

 	
 Title:   President and Chief Financial Officer

 	
  

 

[Signature Page to Third Supplemental Indenture]

          IN WITNESS
WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WILMINGTON
 TRUST COMPANY,

 	
  

 
	
  

 	
 not in its
 individual capacity, but solely as 

 Trustee

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Michael H. Wass

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Michael H. Wass

 	
  

 
	
  

 	
  

 	
 Title:   Financial Services Officer

 	
  

 

[Signature Page to Third Supplemental
Indenture]

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