Document:

MKL 06.30.2014 EX 4.16

Exhibit 4.16

SECOND SUPPLEMENTAL INDENTURE
Dated as of June 30, 2014
to 
INDENTURE
Dated September 1, 2010
Among 
ALTERRA FINANCE LLC, as Company,
ALTERRA CAPITAL HOLDINGS LIMITED,  
as Guarantor, 
and
THE BANK OF NEW YORK MELLON,  
as Trustee

SECOND SUPPLEMENTAL INDENTURE
This SECOND SUPPLEMENTAL INDENTURE (the “Second Supplemental Indenture”), dated as of June 30, 2014, among Alterra Finance LLC (the “Company”), Alterra Capital Holdings Limited (the “Guarantor”) and The Bank of New York Mellon (the “Trustee”).

WHEREAS, the Company and the Guarantor have heretofore executed and delivered to the Trustee an Indenture dated as of September 1, 2010 (the “Original Indenture”), together with the First Supplemental Indenture thereto dated as of September 27, 2010 (collectively, the “Indenture”), providing for the issuance of $350,000,000 aggregate principal amount of 6.25% Senior Notes due 2020 of the Company (the “Notes”).

WHEREAS, on May 1, 2013, a direct, wholly-owned subsidiary of Markel Corporation (“Markel”) merged with and into the Guarantor and the Guarantor was the surviving entity in such merger (the “Merger”).

WHEREAS, as a result of the Merger, the Guarantor is a direct, wholly-owned subsidiary of Markel and the Company is an indirect, wholly-owned subsidiary of Markel.

WHEREAS, the Company and the Guarantor believe it to be in the best interests of the Holders to procure a guarantee from Markel in the form attached as Appendix A hereto (the “Additional Guarantee”).

WHEREAS, the Company and the Guarantor desire to execute and deliver this Second Supplemental Indenture for the purpose of providing a covenant of each of the Company and the Guarantor to obtain the Additional Guarantee.

WHEREAS, pursuant to Section 8.1(c) of the Original Indenture, the Company, the Guarantor and the Trustee may enter into a supplemental indenture to add to the covenants of the Company and the Guarantor, which the Board of Directors of the Company or the Board of Directors of the Guarantor, as applicable, and the Trustee shall consider to be for the protection of the Holders of the Notes and to make the occurrence and the continuance of a default of any such additional covenant an Event of Default and, pursuant to Section 8.1 of the Original Indenture, such supplemental indenture may be executed without the consent of the Holders of the Notes.

NOW, THEREFORE, in consideration of the above premises, each party agrees, for the benefit of the other and for the equal and ratable benefit of the Holders of the Notes, as follows:

ARTICLE I
Section 1.1 Covenants.  Each of the Company and the Guarantor hereby covenants and agrees, for the protection of the Holders of the Notes and as permitted by Section 8.1(c) of the Original Indenture, to:

		
	a)
	cause Markel to provide the Additional Guarantee within 10 days of the date first above written; and

		
	b)
	provide, or caused to be provided to, the Trustee within 15 days after Markel is required to file the same with the Commission, copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by the rules and regulations prescribed) which Markel may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act, or if Markel is not required to file information, documents, or reports pursuant to either of such Sections, then to file with the Trustee and the Commission, in accordance with applicable rules and regulations, if any, prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act, or in respect to a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; provided, however, that the delivery of any of the foregoing reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s or the Guarantor’s compliance with any of their respective covenants under the Indenture or this Second Supplemental Indenture.

Section 1.2 Additional Event of Default.  The failure of the Company and the Guarantor to comply with Section 1.1 of this Second Supplemental indenture for a period of 60 days after the date on which written notice specifying such failure and requiring the Company and the Guarantor to remedy the same and stating that such notice is a “Notice of Default” under the Indenture shall have been given by registered or certified mail to the Company and the Guarantor by the Trustee or to the Company, the Guarantor and the Trustee by the Holders of at least 25% in aggregate principal amount at Maturity of the Notes at the time Outstanding shall constitute an Event of Default under Section 5.1 of the Original Indenture. 

ARTICLE II
Section 2.1.  Effective Time.  This Second Supplemental Indenture shall become effective immediately upon its execution by the parties hereto and without any further action by any person as of the date hereof.

Section 2.2.  Terms Defined.  For all purposes of this Second Supplemental Indenture, except as otherwise defined or unless the context otherwise requires, terms used in capitalized form of this Second Supplemental Indenture and defined in the Indenture have the meanings specified in the Indenture.

Section 2.3.  Indenture.  The Indenture, as supplemented by this Second Supplemental Indenture, is in all respects ratified and confirmed; this Second Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided; and all terms, conditions and provisions of the Indenture shall remain in full force and effect.

Section 2.4.  Governing Law.  This Second Supplemental Indenture shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in 

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accordance with the laws of such State and subject to the terms of Section 11.8 of the Original Indenture.

Section 2.5.  Successors and Assigns.  All covenants, stipulations, promises and agreements in this Second Supplemental Indenture contained by or on behalf of each of the Company and the Guarantor shall bind their respective successors and assigns, whether so expressed or not.  All agreements of the Trustee in this Second Supplemental Indenture shall bind its successors.

Section 2.6.  Counterparts.  This Second Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

Section 2.7.  Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

Section 2.8.  No Responsibility of the Trustee.  The recitals in this Second Supplemental Indenture are made by the Company and the Guarantor only and not by the Trustee, and all of the provisions contained in the Indenture in respect of the rights, privileges, immunities, power and duties of the Trustee shall be applicable in respect of this Second Supplemental Indenture as fully and with like effect as if set forth herein in full.  The Trustee makes no representations or warranties as to the correctness of the recitals contained herein or the validity or sufficiency of this Second Supplemental Indenture or the Additional Guarantee to by provided by Markel.

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

	
					
	 
	ALTERRA FINANCE LLC, as the Company
	 

	 
	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name: Anne G. Waleski
	 

	 
	 
	Title:   Chief Financial Officer and Treasurer
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	ALTERRA CAPITAL HOLDINGS LIMITED, as Guarantor
	 

	 
	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name: Anne G. Waleski
	 

	 
	 
	Title:   Chief Financial Officer
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	THE BANK OF NEW YORK MELLON, as Trustee
	 

	 
	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:MKL 06.30.2014 EX 4.17

Exhibit 4.17

GUARANTEE AGREEMENT
This Guarantee Agreement (the “Guarantee Agreement” by Markel Corporation (“Markel”) is dated June 30, 2014, in favor of the Holders of the Notes issued under the Indenture (as hereinafter defined).  Capitalized terms used herein without definition shall have the meanings given to them in the Indenture referred to below. 
WHEREAS, on September 27, 2010 Alterra Finance LLC (“Alterra Finance”) issued $350,000,000 aggregate principal amount of 6.25% Senior Notes due 2020 (the “Notes”) pursuant to an  Indenture dated as of September 1, 2010 and the First Supplemental Indenture thereto dated as of September 27, 2010 (as supplemented by the Second Supplemental Indenture dated June 30, 2014, collectively the “Indenture”) by and among the Company, Alterra Capital Holdings Limited, as guarantor (“ACHL”), and The Bank of New York, Mellon, as trustee (the “Trustee”).
WHEREAS, on May 1, 2013, a wholly-owned subsidiary of Markel merged with and into ACHL, with ACHL as the surviving entity (the “Merger”).  
WHEREAS, as a result of the Merger, ACHL is a direct, wholly-owned subsidiary of Markel, and Alterra Finance is an indirect, wholly-owned subsidiary of Markel.
WHEREAS, Markel has determined that there is no statutory or contractual requirement for ACHL to have audited financial statements;
WHEREAS, in the absence of audited financial statements for ACHL, it will be difficult to retain investment grade ratings for the Notes;
WHEREAS, Markel wishes for the Notes to be rated and is willing to provide the Markel Guarantee (as defined below) as protection for the Holders of the Notes.  
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Markel agrees, for the equal and ratable benefit of the Trustee and the Holders of the Notes, as follows:
ARTICLE I 
GUARANTEE
Section 1.1. Markel hereby unconditionally guarantees (the “Markel Guarantee”), to each Holder of a Note and to the Trustee and its successors and assigns, (i) the full punctual payment of principal of, and premium, if any, and interest on the Notes when due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary obligations of Alterra Finance under the Indenture (including obligations to the Trustee) and the Notes and (ii) the full and punctual performance, within the applicable grace periods of all other obligations of Alterra Finance under the Indenture and the Notes. 
Section 1.2.  Markel further agrees that the Markel Guarantee constitutes a guarantee of payment, performance and compliance and not merely of collection. 

Section 1.3.  The obligation of Markel to make any payment hereunder may be satisfied by causing ACHL, as guarantor under the Indenture, or Alterra Finance to make such payment. 
Section 1.4.  Markel also agrees to pay any and all costs (including reasonable attorneys’ fees and expenses) incurred by the Trustee or any Holder of the Notes in enforcing any of their respective rights under the Markel Guarantee. 
ARTICLE II 
MISCELLANEOUS
Section 2.1.  Right to Enforce.  Markel expressly agrees that each of ACHL, Alterra Finance, Trustee and the Holders of the Notes are entitled to enforce Markel’s obligations under this Guarantee Agreement. Nothing in this Guarantee Agreement is intended or shall be construed to give any Person, other the Persons identified in the preceding sentence, any legal or equitable right, remedy or claim under or in respect of this Guarantee Agreement or any other provision contained herein.
Section 2.2.  Governing Law.  This Guarantee Agreement shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such State.
Markel agrees that service of all writs, process and summonses in any suit, action or proceeding arising under or in connection with this Guarantee Agreement in any court of the State of New York or any United States Federal court, in each case, sitting in the Borough of Manhattan, City and State of New York, may be made upon Markel Corporation at 1185 Avenue of the Americas, 16th Floor, New York, New York 10036, or to such other address within the Borough of Manhattan, City and State of New York as Markel shall designated by notice to the Trustee.
MARKEL HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTEE AGREEMENT.    
Section 2.3.  Notices.  All notices and other communications under this Guarantee Agreement shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally or (b) on the second Business Day (as defined in the Indenture) following the date of dispatch if delivered by a recognized express courier services.  All notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such notice.  Notices to the Trustee shall be given in accordance with Section 11.4 of the Original Indenture.  Notices to Markel shall be delivered to the address below (until another address is designated by Markel to the Trustee in writing).
Markel Corporation 
4521 Highwoods Parkway 
Glen Allen, VA  23060 
Attention: General Counsel

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Section 2.4.  Successors and Assigns.  All covenants, stipulations, promises and agreements in this Guarantee Agreement contained by or on behalf of Markel shall bind its successors and assigns, whether so expressed or not.  
Section 2.5.  Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof.
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IN WITNESS WHEREOF, Markel has caused this Guarantee Agreement to be executed by its duly authorized officer as of the date first above written.
	
					
	 
	MARKEL CORPORATION
	 

	 
	 
	 
	 
	 

	 
	By:
	 
	 
	 

	 
	 
	Name:
	Anne G. Waleski
	 

	 
	 
	Title:
	Executive Vice President and Chief Financial Officer
	 

	 
	 
	 
	 
	 

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