Document:

ex10_3.htm

EXHIBIT 10.3

 

 

 

The Maximum L/C and Delivery Guarantee Agreement

 

 

 

Bank of Ningbo

 

  

  

  

 

The Maximum L/C and Delivery Guarantee Agreement

 

No. NBCB7301ZX10005

Applicant: SinoHub SCM Shenzhen, Ltd.

Receiving Bank: Shenzhen Branch, Bank of Ningbo Company Limited

Owing to the import requirements, the applicant applies for opening import L/C or delivery guarantee letter at the receiving bank, and provides guarantee as required by the receiving bank. Both parties come to agreement as following in compliance with the relevant law and regulations of People’s Republic of China.

	
I.  

	
The Maximum credit, period and term

	
1.1  

	
Within the period from May 12, 2010 to April 22, 2011, the applicant is entitled to apply for opening import L/C or delivery guarantee within the maximum outstanding credit line US$5 million. The receiving bank will decide whether to accept the application of the applicant based on the conditions of applicant and the possibility of acceptance. The maximum outstanding credit line in this agreement refers to the total amount for opening L/C and guarantee amount on delivery guarantee letter minus the guarantee amount for the above business. Moreover, the applicant will bear the obligation of returning the different higher than the maximum outstanding credit line owning to the change of exchange rate. The exchange rate will be as confirmed by the receiving bank.

	
1.2  

	
Both parties agree that despite of the above agreement, the receiving bank is fully and independently entitled to accept the opening of import L/C or delivery guarantee letter.

	
1.3  

	
In the case that the applicant and receiving bank signs off a separate Opening Import L/C Agreement or Opening Delivery Guarantee Agreement, the credit line or guarantee amount in this Opening Import L/C Agreement or Opening Delivery Guarantee Agreement will not occupy the maximum outstanding credit line, and it’s not within the guarantee range stated in this agreement, except for it’s described separately in the Opening Import L/C Agreement or Opening Delivery Guarantee Agreement.

	
1.4  

	
The applicant irrevocably authorizes the receiving bank to open import L/C or delivery guarantee letter in the terms of this agreement under the name of Bank of Ningbo Company Limited or other banks. Nevertheless, whether the import L/C or delivery guarantee letter is made by Bank of Ningbo Company Limited, the applicant is obliged to execute all of its payment liabilities under the terms of import L/C or delivery guarantee letter, and all rights reserved by the receiving bank. On the condition that the applicant fails to return the principal, interest, and all the needed expenses (including but not limited to litigation fees, executed money, legal fee, travelling expenses and other expenses for enforcing the claim) to the receiving bank as stated in this agreement, the receiving bank, as the creditor, is entitled to assert a claim against the applicant and/or the guarantor directly.

	
1.5  

	
The specific business application, letter of commitment of applicant, acceptance/payment notification under import L/C, telex about L/C, etc. all constitutes an indispensable part of this agreement. To the extent that these documents are in conflict with this agreement, this agreement shall prevail. However, the currency, amount, time limit based on each import L/C or delivery guarantee shall be referred to as the final formal import L/C or delivery guarantee. In the case that the L/C is modified, the modification being accepted and confirmed by the beneficiary on the import L/C shall prevail. The liability expiration date of the applicant shall be based on each import L/C or delivery guarantee under this agreement.

	
II.  

	
Deposit

	
2.1  

	
The applicant shall deliver the deposit to the specialized deposit account opened by the applicant at the receiving bank as required by the receiving bank in order to open the import L/C or delivery guarantee; otherwise, receiving bank is entitled to refuse the request of the applicant. Each deposit is used for the specialized payment for each corresponding import L/C or delivery guarantee. Since the day the applicant delivers the deposit, applicant commits no transfer, taking in use or disposition of the deposit by any means without the approval of the receiving bank, and the receiving bank is entitled to refuse to pay from this specialized account for the items irrelevant to import L/C or delivery guarantee under this agreement.

 

  

  

  

 

	
2.2  

	
In case that deposit is inadequate owning to the change of exchange rate, receiving bank is entitled to require the applicant to complement the difference; otherwise, receiving bank and its specified bank is entitled to refuse opening import L/C or delivery guarantee without affecting its rights based on this agreement. Moreover, the applicant and/or guarantor are liable for any loss or liabilities owning to the change of exchange rate. The exchange rate will be as confirmed by the receiving bank.

	
III.  

	
Guarantee

Under the terms of this agreement, when the applicant applies for opening each import L/C or delivery guarantee, in the case that no full amount of deposit wired to the above account which is equivalent to the amount for opening import L/C or delivery guarantee. As required by the receiving bank, the applicant shall provide the guarantee to the receiving bank for the difference between the amount for opening import L/C or delivery guarantee and deposit. The guarantee contract together with its supplementary agreement shall be signed off separately by the receiving bank and guarantor, No. 07301BY20100303, 07301BY20100305。

	
IV.  

	
Expenses

 

	
4.1  

	
The service fee for opening each import L/C or delivery guarantee shall be calculated and collected according to a certain percentage and way confirmed by the receiving bank. The applicant shall deliver the payment to the receiving bank before applying for opening import L/C or delivery guarantee at the receiving bank; otherwise, receiving bank is entitled to refuse the request of the applicant for opening import L/C or delivery guarantee.

	
4.2  

	
Other expenses includes but not limited to modifying letter of credit. Applicant shall deliver the payment at required time and amount to the receiving bank.

	
4.3  

	
The applicant shall deliver interest and relevant factoring service fee to the receiving bank at agreed interest rate for opening Usance L/C Payable at Sight.

	
V.  

	
Rights and Obligations of Each Party

	
5.1  

	
Both parties admit and obey the international practices of L/C, and commit to be compliant with The Uniform Customs and Practice for Documentary Credits ICC Publication no. 500 and subsequent revision, supplement, international practice and operating regulations, processing all the issues related to opening import L/C or delivery guarantee under this agreement and taking the subsequent liabilities.

	
5.2  

	
The L/C under this agreement is independent on any trading contractual relationship. The applicant commits the authenticity and validity of the trading contract, notes, certificates and the contents related to L/C. In the case that any dispute, fraud or other illegal causes occurs to the trading contract involving L/C, the applicant hereby commits to the resolution on itself and by no means taking any influence on the execution of rights and liabilities of each party concerning L/C and no loss done to the receiving bank.

	
5.3  

	
The applicant commits to going to the operating location of receiving bank within the term specified in each document-arrival notification letter for delivering payment or acceptance; otherwise the applicant will be regarded as having accepted the bill of document under the L/C and agreed to deliver payment or acceptance.

 

  

  

  

 

	
5.4  

	
In each L/C transaction under this agreement, the applicant ensures the completion of delivering payment or acceptance based on the judgment that the bill of document is compliant with the L/C. In the case that applicant refuses to deliver payment or acceptance owning in the conflict between the bill of document and L/C, the applicant shall return the whole bill of documents to the receiving bank with the causes of refusal in written form within the term specified in the document-arrival notification, and the receiving bank shall determine whether refuse the payment or not according to international practice. The applicant admits that the receiving bank has the independent determination for the cause of refusal, and has the right to confirm applicant and guarantor. In the case that the receiving bank deems that the causes for payment refusal of the applicant are disproved or the applicant fails to return all the bills of document or exceeds the term specified by the document-arrival notification, the receiving bank is entitled to determine independently to delivers the external payment or acceptance, and under this situation, the application is liable for delivering the payment, interest, expenses for L/C to the receiving bank. Moreover, if the causes for payment refusal is deemed as disproved by the delivering bank and negotiating bank, the applicant shall be liable for all responsibilities and corresponding payment, interest and including but limited to litigation fee, legal fee, and other costs.

	
5.5  

	
No matter whether the L/C under this agreement will be approved to deny payment, the applicant shall deliver the payment under L/C to the settlement account of the receiving bank in order to clear the debt no later than the payment day. Otherwise, the receiving bank is entitled to deduct the corresponding amount from any account of the applicant in order to pay for the items and expenses under L/C. in the case the account balance of the applicant is not adequate for the payment, the receiving bank shall charge 0.05% per day as prepayment interest since the day the receiving bank prepays for the applicant.

	
5.6  

	
The applicant shall be liable for any losses or subsequences due to the loss, delay, error during the process of delivering or transmitting the correspondence, bill of documents under the L/C or other force majeure factors, and the receiving bank will be exempted.

	
5.7  

	
The applicant agrees to afford the payment of relevant expenses under this agreement and L/C, and return the prepayment for L/C under this agreement and any other items and expenses to the receiving bank unconditionally, being liable for all the losses caused to the receiving bank, including but not limited to principal of prepayment, penalty, compensation and other relevant expenses.

	
5.8  

	
With regards to the delivery guarantee business under this agreement, the applicant commits:

	
5.8.1  

	
To be liable for the authenticity and validity of the original bill of lading corresponding with the delivery guarantee of this agreement and other relevant documents, bills, notes, applications, and take the liabilities caused hereby. 

	
5.8.2  

	
Not to set the guarantee in any forms against the goods being delivered without the written consent of the receiving bank.

	
5.8.3  

	
Whatever if the bill of documents, L/C and relevant paperwork is compliant about the L/C under this agreement, the applicant commits to delivering the payment or acceptance immediately as required whiling receiving the relevant documents and not refusing the payment at whatever causes (including but not limited to that there is inconsistence or fraud). After the receiving bank delivers payment notification, if the applicant fails to deliver payment or acceptance as required, the receiving bank is entitled to deduct the corresponding amount from the account of applicant and deliver the payment in time. As long as the applicant applies for opening delivery guarantee at the receiving bank, it indicates the applicant abandons the right of refusing payment owing to the inconsistence of the documents.

	
5.8.4  

	
To replace and return the original copy for the delivery guarantee within 15 days after receiving the bill of lading of the original copy to the receiving bank. Otherwise, the receiving bank is entitled to charge additional service fee as required by the regulations.

	
5.8.5  

	
Not to refuse L/C payment or raise the other opinion that is not convenient for the receiving bank owing to the inconsistence of the documents or incurring trading disputes with the exporter.

	
5.8.6  

	
To compensate receiving bank any losses owning to opening the delivery guarantee under this agreement, including but not limited to prepayment for goods delivery, interest and other payable expenses (including but not limited to litigation fees, executed money, legal fee, travelling expenses and other expenses to enforce the claim).

	
5.9  

	
The applicant shall not remove capital secretly, transfer, dispose at low price, make a present of the asset or transfer the shares in order to escape the liabilities at the receiving bank or weaken its ability of refunding the debt.

	
5.10  

	
 On the condition that the applicant conceals the significant fact related to signing off this agreement or provides false materials and information on purpose, the receiving bank is entitled to charge 10% of the debt balance as penalty under this agreement.

 

  

  

  

 

	
5.11  

	
 In case that the applicant or guarantor breaches against the agreement, which results in the litigation in order to ensure the creditor’s rights, the applicant shall be liable for the litigation fees,  security expense, executed money, legal fee, travelling expenses and other expenses to enforcing the claim.

	
5.12  

	
 The applicant shall provide the receiving bank with real financial statements and bank name, account number, deposit balance, as well as the execution status of the L/C trading contract.

	
5.13  

	
 The applicant shall not provide the debt of any third party with guarantee or mortgage, pledge guarantee by using its assent before discharging the debt, unless it is approved by the receiving bank in written form.

	
5.14  

	
 The receiving bank shall deduct from any account of the applicant that the applicant opens at the receiving bank when the receiving bank collects as stated in this agreement or collects the principal, interest, compound interest, penalty interest or other payable expenses in advance.

	
5.15  

	
 The receiving bank is entitled to report the illegal behavior of the applicant to the relevant department or organization, such as delaying debt principal and interest, escape monitoring, concealing the significant fact related to signing off this agreement or providing false materials or information on purpose, and entitled to collect the payment via new media announcement, and reserve the right to take any legal action necessary against the applicant based on relevant law, regulations and the terms of this agreement.

	
5.16  

	
 If any event that threatens its normal operation the guarantor or takes negative influence on its ability of executing the agreement occur to the guarantor under this agreement (the receiving bank shall judge independently if any above event occurs to the guarantor), including but not limited to suspension of production, discontinuation of business, deregistration, revoking business license, bankruptcy, difficulty in operation, worsened financial conditions, legal representative or major person in charge involved in illegal conducts, involving in litigation or economic disputes, assets being sealed up, frozen or deducted, or the guarantee, pledge, pledge rights devalued or sealed up, frozen or deducted under this agreement, the receiving bank is entitled to require the applicant to provide any acceptable guarantee or the measures described in 6.2 of this agreement.

	
VI.  

	
Remedies for Breach

	
6.1  

	
Within the effective term of this agreement, if one or multiple of the following situations occur to the applicant, the applicant will be deemed as breaching the agreement, and the receiving bank shall judge independently whether the following situations occur to the applicant.

	
6.1.1  

	
Suspension of production, discontinuation of business, deregistration, revoking business license occurs to the applicant;

	
6.1.2  

	
The applicant conceals or forges the significant fact related to signing off this agreement, opening import L/C or delivery guarantee, or provides false materials or information, or the materials provided contains false information;

	
6.1.3  

	
The applicant fails to return any other pending debt (including the debt announced to be due in advance) or perform the other agreement or legal obligations, which has or is likely to influence the execution of the applicant under this agreement;

	
6.1.4  

	
Before discharging the debt, the applicant disposes (including but not limited to taking as a present, transferring, assignment, sale at low price) any asset which influences the execution of the applicant under this agreement;

	
6.1.5  

	
The receiving bank deems any event that threatens its normal operation the guarantor or takes negative influence on its ability of executing the agreement occur to the guarantor under this agreement, including but not limited to suspension of production, discontinuation of business, deregistration, revoking business license, bankruptcy, reducing capital, acquisition or share transfer against the applicant, delaying the payment of debt principal and interest, legal representative or major person in charge involved in illegal conducts, involving in litigation or economic disputes, assets being sealed up, frozen or deducted, or the guarantee, pledge, pledge rights devalued or sealed up, frozen or deducted, difficulty in operation, worsened financial conditions;

	
6.1.6  

	
If any other changes occur to the applicant more than 6.1.1, 6.1.2, 6.1.3, 6.1.4, 6.1.5 of this article that is not convenient for enforcing the claim, and the applicant fails to provide guarantee otherwise as required by the receiving bank;

 

  

  

  

 

	
6.1.7  

	
The applicants fails to execute the terms of this agreement or the execution is not compliant with the agreement, or the other behavior of the applicant, as deemed by the receiving bank, is likely to threaten the performance to enforce the claim.

	
6.2  

	
The receiving bank is entitled to take one or several of the following measures when the applicant breaches the agreement:

	
6.2.1  

	
To deem that all the credit of the applicant, including but limited to loan, discount, bank’s acceptance bill, international trade financing, bank guarantee form, etc. due in advance, and require the applicant to return the above debt principal and interest. Moreover, the receiving bank is entitled to deduct the principal, interest, penalty interest, penalty and other relevant expenses from any account of the applicant;

	
6.2.2  

	
to freeze various credit line of the applicant at the receiving bank;

	
6.2.3  

	
to determinate the relevant contract or agreement with the applicant in advance, including but not limited to this agreement;

	
6.2.4  

	
to require the applicant increase the deposit for the import L/C or delivery guarantee under this agreement or supplement the other guarantee measures that the receiving bank accepts;

	
6.2.5  

	
to suspend and dispose the bill of document under the import L/C;

	
6.2.6  

	
to take the measures like litigation, sealing up, deduction, and require the application to be liable for litigation fees, executed money, legal fee, travelling expenses and other expenses for enforcing the claim;

	
6.2.7  

	
To take any other measures the receiving bank deems as necessary.

In the meantime, all the branches of Bank of Ningbo Company Limited have the above rights against the applicant as well. The applicant hereby commits taking no protest, and takes remedial measures immediately as required by the receiving bank, making sure the receiving bank is exempted from any loss or damage, and shall compensate the receiving bank and its specified banks when the loss or damage happens.

 

	
VII.  

	
Other

	
VIII.  

	
During the term of the agreement, all controversy and dispute shall be dealt with through negotiation. In the case that is resolved via litigation, it shall be brought to the People’s Court where the receiving bank is located. During the negotiation and litigation, both parties shall execute the terms of this agreement other than the terms that are not related to the dispute. The applicant shall not refuse to perform its obligations described in this agreement when the litigation is in process.

	
IX.  

	
This agreement shall take effect when both parties sign or chop. The original copies of this agreement are in triplicate. The applicant shall keep one copy, and the receiving bank shall keep two copies, which has the same legal validity.

	
X.  

	
Notice and Declaration

The receiving bank has reminded the applicant to fully and accurately understand the terms of this agreement, and has made corresponding explanation to the terms. Both parties have the comprehensive understanding to the meaning and subsequent legal results of the terms of this agreement.

In the meantime, the applicant hereby declares having noted the terms related to its liabilities and negative to itself and confirmed to accept the terms.

  

  

  

 

	
Applicant (chop): SinoHub SCM Shenzhen, Ltd.

 

	
Receiving Bank (chop): Shenzhen Branch, Bank of Ningbo Company Limited

 

	
Legal representative or authorized representative: /s/Li De Hai

	
Legal representative or authorized representative: /s/Lu Ming Yu

	  	  
	
Date: May 12, 2010

	
Date: May 12, 2010EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 1st day of
June, 2011 by and between Alterra Capital Holdings Limited, a Bermuda company (the
“Company”), and W. Marston Becker (“Executive”).

WHEREAS, the Company currently employs Executive as its President and Chief Executive Officer
pursuant to that certain employment agreement dated as of November 13, 2006, and as amended as of
December 17, 2008, by and between the Company and Executive (the “Prior Agreement”);

WHEREAS, the Company desires to continue to employ Executive as President and Chief Executive
Officer of the Company;

WHEREAS, the Company and Executive desire to enter into this Agreement to set forth the terms
of Executive’s employment by the Company; and

WHEREAS, the Prior Agreement shall be of no further force and effect as of the Effective Date
(as defined below).

NOW, THEREFORE, in consideration of these recitals and the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

SECTION 1 EMPLOYMENT

1.1 Term. The Company agrees to employ Executive, and Executive agrees to be employed
by the Company, in each case pursuant to this Agreement, for a period commencing as of January 1,
2011 (the “Effective Date”) and ending on the earlier of (i) January 1, 2014 (the
“Expiration Date”) and (ii) the termination of Executive’s employment in accordance with
Section 3 hereof (the “Term”).

1.2 Duties. During the Term, the Company shall employ Executive as President and
Chief Executive Officer of the Company. Executive shall report solely and directly to the Board of
Directors of the Company (the “Board”). As of the Effective Date, Executive is a member of
the Board and shall be nominated for re-election at each annual meeting during the Term thereafter
at which his directorship term expires. Executive shall have such authority and duties with regard
to the business of the Company as are generally held or performed by an executive of the Company
and companies of a similar size and nature serving in such position, and such other authorities and
duties as may from time to time be delegated or assigned to Executive by the Board consistent with
such position. Executive’s primary place of employment shall be at the Company’s headquarters in
Bermuda; provided, that Executive will be required to travel to other locations in
connection with his responsibilities under this Agreement.

1.3 Exclusivity. Executive agrees to devote his exclusive and full professional time
and attention to his duties as an employee of the Company. In addition, Executive agrees that he
shall not render to others any service of any kind for compensation or engage in any other business
activity, including any involvement in any business in which Executive has any administrative or
operating responsibility. Notwithstanding the foregoing, subject to Section 4 hereof, (i)
Executive shall not be precluded from devoting reasonable periods of time required to manage his
personal investments and participate in professional, educational, philanthropic or community
activities; provided, that such activities do not interfere with Executive’s discharge of
his duties to the Company and (ii) Executive may, with the consent of the Board, which consent
shall not be unreasonably withheld, serve on the boards of directors of non-charitable entities,
provided, that such service does not interfere with Executive’s discharge of his duties to
the Company.

SECTION 2 COMPENSATION, BENEFITS AND EXPENSES

2.1 Base Salary. During the Term, the Company shall pay to Executive a salary
(“Base Salary”) at an annual rate of $1,150,000, payable in accordance with the regular
payroll practices of the Company. Executive’s Base Salary shall be reviewed annually by the Board
or a committee thereof, and may be increased (but not decreased) in the discretion of the Board or
a committee thereof taking into consideration Executive’s performance, Company performance,
external peer practices and general economic conditions.

2.2 Annual Cash Bonus. For each calendar year during the Term beginning with 2011,
Executive shall be eligible to receive an annual cash bonus based on pre-established performance
goals established by the Board or a committee thereof with a target cash bonus of 160% of Base
Salary and a range of cash bonus from 0% to 300% of Base Salary (the “Annual Cash Bonus”).
Any Annual Cash Bonus shall be paid no later than March 15 of the year following the year to which
such Annual Cash Bonus relates.

2.3 Annual Long-Term Incentive Award. For each calendar year during the Term
beginning with 2011, the Company shall grant to Executive a long-term incentive award with a target
long-term incentive award of 200% of Base Salary and a range from 0% to 400% of Base Salary (the
“Annual Long-Term Incentive Award”). The Annual Long-Term Incentive Award shall be made in
cash, shares or other share equivalent vehicles in accordance with the Company’s normal grant
practice. The terms of the Annual Long-Term Incentive Award shall be determined by the Board or a
committee thereof, may include vesting based upon attainment of pre-established performance goals
during a specified performance period (the “Performance Period”), and shall be in a form
substantially similar to awards made to other senior executives of the Company. Any Annual
Long-Term Incentive Award shall be payable no later than March 15 of the year following the last
year of the Performance Period and shall be paid in cash or fully vested shares of the Company’s
publicly traded securities.

2.4 Restricted Stock Award. Upon execution of this Agreement, the Company shall grant
to Executive 100,000 shares of restricted common shares of the Company (the “Execution
Award”) pursuant to the terms and conditions of the Company’s stock incentive plan and the form
of award agreement attached hereto as Exhibit A.

2.5 Annual Annuity Payment. Promptly after the date hereof, and thereafter on January
1 of each calendar year through and including January 1, 2014, the Company shall pay to Executive
the amount of $750,000 (U.S.) (each, an “Annuity Payment”) to compensate Executive for the
cost of purchasing a retirement annuity or for other retirement planning.

2.6 Reimbursement of Business Expenses. During the Term, the Company shall reimburse
Executive for all reasonable, ordinary and necessary business expenses incurred and substantiated
by him in accordance with applicable Company policy. Executive shall have access to, and use of,
private air charter for normal commuting to and from the Company’s corporate headquarters in
Bermuda and business travel as needed in his reasonable discretion and in accordance with Company
policy.

2.7 Employee Benefits.

(a) During the Term, Executive shall be entitled to participate in all employee benefit plans
of the Company, including pension, medical coverage, education or other welfare benefits that the
Company has adopted or may adopt, maintain or contribute to for the benefit of its senior
executives, in each case to the extent and in the manner available to other senior executives of
the Company (and on a basis no less favorable to Executive than is generally provided to other
senior executives of the Company) and in accordance with the terms of such plans and programs;
provided, that nothing herein shall preclude the Company’s authority to amend or terminate
any such plans at any time and from time to time.

(b) During the Term, Executive shall receive a monthly payment of a housing allowance in an
amount equal to the lesser of (i) the actual monthly rental cost incurred by Executive for housing
in Bermuda, plus $1,000 (U.S.) and (ii) $15,000 (U.S.) per month (the “Housing Allowance”).
In addition, Executive shall be entitled to a tax gross-up on the Housing Allowance to the extent
and in the manner provided to other Company senior executive officers who are subject to U.S.
income tax.

(c) Executive shall be entitled to six weeks of paid vacation, subject to the timing and
carry-over policies of the Company as they may exist from time to time, during each year of the
Term.

2.8 Prior Restricted Stock Award. Notwithstanding anything in this Agreement, the
terms and conditions of the restricted stock award granted to Executive pursuant to the Restricted
Stock Award Agreement between the Company and Executive dated as of June 29, 2010 (the “Prior
Award Agreement”) remain subject to the terms and conditions set forth in the Prior Award
Agreement.

SECTION 3 TERMINATION OF EMPLOYMENT

3.1 Termination. Executive’s employment with the Company may be terminated by either
the Company or Executive as set forth pursuant to Sections 3.2 through 3.9 hereof (the date on
which Executive’s employment terminates, the “Termination Date”). Upon the termination of
Executive’s employment with the Company for any reason, Executive shall be entitled to (i) payment
of any Base Salary earned but unpaid through the Termination Date, paid within 30 days following
the Termination Date; (ii) any earned but unpaid Annual Cash Bonus for any completed calendar year
paid no later than March 15 of the year following the year to which such award relates; (iii)
vested benefits (if any) in accordance with the applicable terms of applicable Company employee
benefit plans; (iv) any accrued but unpaid vacation pay; (v) any Annuity Payment earned with
respect to a previous January 1, but which then remains unpaid; and (vi) any unreimbursed expenses
in accordance with Section 2.6 hereof, payable within 30 days following the Termination Date
(collectively, the “Accrued Amounts”).

3.2 Termination for Cause. The Company shall have the right to terminate Executive’s
employment with the Company, by written notice to Executive, for “Cause.” “Cause” shall
mean: (i) habitual drug or alcohol use which impairs the ability of Executive to perform his
duties hereunder; (ii) Executive’s conviction during the Term by a court of competent jurisdiction,
or a pleading of “no contest” or guilty, to a felony or the equivalent if outside the United
States; (iii) Executive’s engaging in fraud, embezzlement or any other illegal conduct with respect
to the Company which acts are materially harmful to, either financially, or to the business
reputation of, the Company; (iv) Executive’s willful and material violation of Section 4 hereof;
(v) Executive’s willful failure or refusal to perform his duties hereunder (other than such failure
caused by Executive’s Disability or while on vacation), after a written demand for performance is
delivered to Executive by the Board that specifically identifies the manner in which the Board
believes that Executive has failed or refused to perform his duties, and which is not cured, if
curable, within 30 days after such written notice is delivered to Executive by the Board; or (vi)
Executive otherwise breaches any material provision of this Agreement which is not cured, if
curable, within 30 days after written notice is delivered to Executive by the Board. Executive
will be given the opportunity within five calendar days of receipt of such notice to meet with the
Board to defend such act or acts or failure to act. No act or failure to act by Executive shall be
deemed “willful” unless done, or omitted to be done, (x) by Executive not in good faith and (y)
without a reasonable belief that his action or omission was in the best interest of the Company.
Acts or failures to act will not be deemed to be “willful” if Executive is specifically directed to
take (or not take) such action by the Board, unless Executive in good faith believes such
directives are illegal and Executive promptly notifies the Board thereof.

Upon any termination for Cause, all payments, contributions and other benefits to which
Executive is entitled under this Agreement shall cease immediately, with the exception of any
Accrued Amounts, and any time-vesting or performance-vesting awards granted to Executive by the
Company, whether in cash, shares or other share equivalent vehicles, shall be treated in accordance
with their terms.

3.3 Voluntary Termination by Executive. Executive may voluntarily terminate his
employment with the Company without Good Reason (as defined below) and other than due to Retirement
(as defined below) or on the Expiration Date pursuant to Section 3.6 (a “Voluntary
Termination”) by giving the Company 90 days’ advance written notice of such termination. Upon
a Voluntary Termination, all payments, contributions and other benefits to which Executive is
entitled under this Agreement shall cease immediately, with the exception of any Accrued Amounts,
and any time-vesting or performance-vesting awards granted to Executive by the Company, whether in
cash, shares or other share equivalent vehicles, shall be treated in accordance their terms.

3.4 Disability or Death. If Executive is unable to perform his duties under this
Agreement by reason of illness or other physical or mental disability based upon certification by a
medical doctor chosen by Executive and agreed to by the Company, which agreement shall not be
unreasonably withheld, and such physical or mental disability has continued for 180 consecutive
days or 180 non-consecutive days within any 365-day period (a “Disability”), then the
Company shall have the right to terminate Executive’s employment with the Company for Disability.
In the event of Executive’s termination for Disability or termination due to Executive’s death, in
addition to the Accrued Amounts, Executive (or Executive’s estate, beneficiary or beneficiaries, as
the case may be) shall be entitled to receive the following payments:

(a) A cash payment equal to the sum of (i) Executive’s Base Salary plus (ii) the greater of
(A) the Annual Cash Bonus for the immediately preceding calendar year and (B) the target Annual
Cash Bonus for the then current calendar year, payable within 60 days after the Termination Date;

(b) A pro-rata portion of the Annual Cash Bonus for the year of termination, as determined in
the good faith opinion of the Board based on the relative achievement of performance targets
through the Termination Date, payable within 60 days after the Termination Date;

(c) Payment of all remaining Annuity Payments, which shall be paid on the dates they otherwise
would have been paid;

(d) Accelerated vesting as of the Termination Date of any time-vesting awards granted to
Executive by the Company, whether in cash, shares or other share equivalent vehicles, including the
Execution Award (“Time-Vesting Awards”); and

(e) Any time-based vesting restrictions on performance-vesting awards granted to Executive by
the Company, whether in cash, shares or another share equivalent vehicles (“Performance-Vesting
Awards”), shall lapse on the Termination Date, but any performance hurdle requirements shall
continue pursuant to the terms of the grant.

3.5 Termination by the Company without Cause or by Executive for Good Reason Other than
During a Change in Control Protection Period. The Company shall have the right to terminate
Executive’s employment with the Company without Cause (other than due to Disability or death) by
giving Executive 30 days’ advance written notice of such termination. Executive shall have the
right to terminate Executive’s employment with the Company for “Good Reason” within 30 days after
the occurrence, without Executive’s written consent, of one of the following events that has not
been cured, if curable, within 30 days after Executive has given written notice to the Company
identifying in reasonable detail the basis for such termination. “Good Reason” shall mean: (i) any
material and adverse change to Executive’s duties or authority that is inconsistent with his title
and position of President and Chief Executive Officer; (ii) a diminution of Executive’s title or
position as President and Chief Executive Officer; (iii) the Board’s failure to nominate Executive
for re-election to the Board; (iv) the relocation of Executive’s primary place of employment
outside of Bermuda; (v) a reduction of Executive’s Base Salary; (vi) a material reduction in
Executive’s target Annual Cash Bonus (or ranges with respect thereto) or a material reduction of
Executive’s benefits provided under Section 2.7 other than a reduction permitted under terms and
conditions of the applicable Company policy or benefit plan and which similarly affects other
senior executives of the Company; or (vii) a failure by the Company to comply with any other
material provision of this Agreement with respect to Executive’s duties as President and Chief
Executive Officer or relating to payments of compensation or benefits to Executive.

Upon a termination of Executive’s employment with the Company by the Company without Cause
other than during a Change in Control Protection Period (as defined below) or by Executive for Good
Reason other than during a Change in Control Protection Period, in addition to any Accrued Amounts,
Executive shall be entitled to receive the following severance benefits:

(a) Severance pay in the aggregate amount of two times the sum of (i) Executive’s Base Salary
plus (ii) the greater of (A) the Annual Cash Bonus for the immediately preceding calendar year and
(B) the target Annual Cash Bonus for the then current calendar year, which shall be paid in 12
equal monthly installments beginning on the Company’s first payroll date following the
65th day after the Termination Date;

(b) A pro-rata portion of the Annual Cash Bonus for the year of termination, as determined in
the good faith opinion of the Board based on the relative achievement of performance targets
through the Termination Date, payable on the Company’s first payroll date following the
65th day after the Termination Date;

(c) Payment of all remaining Annuity Payments, which shall be paid on the Company’s first
payroll date following the 65th day after the Termination Date;

(d) Accelerated vesting of any Time-Vesting Awards as of the Termination Date; and

(e) Any time-based vesting restrictions on Performance-Vesting Awards shall lapse on the
Termination Date, but any performance hurdle requirements shall continue pursuant to the terms of
the grant.

3.6 Termination due to Expiration of the Term.

(a) This Agreement shall terminate on the Expiration Date unless the Company and Executive
mutually agree. Neither party has any obligation to renew this Agreement upon the expiration of
the Term on the Expiration Date.

(b) If the Company does not, between 121 and 150 days prior to the Expiration Date, notify
Executive in writing that it wishes to continue to employ Executive after the Expiration Date on
substantially similar terms to those set forth in this Agreement (excluding, for this purpose, the
payment of Annuity Payments and the grant of the Execution Award) and if Executive’s employment
with the Company terminates on the Expiration Date, in addition to the Accrued Amounts, Executive
shall be entitled to receive the following severance benefits:

(i) Severance pay in the aggregate amount equal to the sum of (A) Executive’s Base Salary plus
(B) the greater of (x) the Annual Cash Bonus for the immediately preceding calendar year and (y)
the target Annual Cash Bonus for the then current calendar year, which shall be paid in 12 equal
monthly installments beginning on the Company’s first payroll date following the 65th
day after the Termination Date;

(ii) The Annual Cash Bonus for the preceding calendar year, as determined in the good faith
opinion of the Board, payable on the Company’s first payroll date following the 65th day
after the Termination Date;

(iii) Payment of an amount in cash equal to the cash equivalent value of the Annual Long-Term
Incentive Award that would have been awarded with respect to the preceding calendar year in
accordance with Section 2.3 as determined in the good faith opinion of the Board;

(iv) Payment of the remaining Annuity Payment, which shall be paid on January 1, 2014;

(v) Accelerated vesting of Time-Vesting Awards as of the Termination Date; and

(vi) Any time-based vesting restrictions on Performance-Vesting Awards shall lapse on the
Termination Date, but any performance hurdle requirements shall continue pursuant to the terms of
the grants.

(c) If the Company, between 121 and 150 days prior to the Expiration Date, notifies Executive
in writing that it wishes to continue to employ Executive after the Expiration Date on
substantially similar terms to those set forth in this Agreement (excluding, for this purpose, the
payment of Annuity Payments and the grant of the Execution Award), and Executive notifies the
Company less than 120 days prior to the Expiration Date that he does not wish to continue to be
employed by the Company after the Expiration Date on substantially similar terms to those set forth
in this Agreement, and if Executive’s employment with the Company terminates on the Expiration
Date, in addition to the Accrued Amounts, Executive shall be entitled to receive the following
severance benefits:

(i) Severance pay in the aggregate amount equal to Executive’s Base Salary, which shall be
paid in 12 equal monthly installments beginning on the Company’s first payroll date following the
65th day after the Termination Date;

(ii) The Annual Cash Bonus for the preceding calendar year, as determined in the good faith
opinion of the Board, payable on the Company’s first payroll date following the 65th day after the
Termination Date;

(iii) Payment of an amount in cash equal to the cash equivalent value of the Annual Long-Term
Incentive Award that would have been awarded with respect to the preceding calendar year in
accordance with Section 2.3 as determined in the good faith opinion of the Board;

(iv) Payment of the remaining Annuity Payment, which shall be paid on January 1, 2014;

(v) Accelerated vesting of Time-Vesting Awards as of the Termination Date; and

(vi) Any time-based vesting restrictions on Performance-Vesting Awards shall lapse on the
Termination Date, but any performance hurdle requirements shall continue pursuant to the terms of
the grants.

3.7 Termination due to Executive’s Retirement. Executive shall have the right to
terminate his employment with the Company for Retirement (as defined below). “Retirement”
shall mean Executive’s termination of his employment with the Company upon at least 120 days’
advance written notice to the Company, without Good Reason, on or prior to the Expiration Date.
Notwithstanding anything contained herein to the contrary, the foregoing definition of Retirement
does not affect the definition of such term under any other benefit plans of, or agreements with,
the Company.

Upon termination of Executive’s employment with the Company by Executive due to Retirement, in
addition to the Accrued Amounts, Executive shall be entitled to the following severance benefits:

(a) Severance pay in the aggregate amount equal to the Base Salary, which shall be paid in 12
equal monthly installments beginning on the Company’s first payroll date following the
65th day after the Termination Date;

(b) A pro-rata portion of the Annual Cash Bonus for the year of termination as determined in
the good faith opinion of the Board based on the relative achievement of performance targets
through the Termination Date, payable on the Company’s first payroll date following the
65th day after the Termination Date;

(c) Accelerated vesting of Time-Vesting Awards as of the Termination Date;

(d) Any time-based vesting restrictions on Performance-Vesting Awards shall lapse on the
Termination Date, but any performance hurdle requirements shall continue pursuant to the terms of
the grants; and

(e) If Executive’s date of Retirement is the Expiration Date, (i) payment of the remaining
Annuity Payment, which shall be paid on January 1, 2014; (ii) the Annual Cash Bonus for the
preceding calendar year, as determined in the good faith opinion of the Board, payable on the
Company’s first payroll date following the 65th day after the Termination Date; and (iii) payment
of an amount in cash equal to the cash equivalent value of the Annual Long-Term Incentive Award
that would have been awarded with respect to the preceding calendar year in accordance with Section
2.3 as determined in the good faith opinion of the Board.

3.8 Termination by the Company without Cause or by Executive for Good Reason During a
Change in Control Protection Period. The Company shall have the right to terminate Executive’s
employment with the Company without Cause (and other than due to Disability of death) during a
Change in Control Protection Period by giving Executive 30 days’ advance written notice of such
termination. Executive shall have the right to terminate Executive’s employment with the Company
for Good Reason during a Change in Control Protection Period within 30 days after the occurrence of
a Good Reason event that has not been cured, if curable, within 30 days after Executive has given
written notice to the Company identifying in reasonable detail the basis for such termination.

A “Change in Control Protection Period” shall mean the 12-month period immediately
following a Change in Control. A “Change in Control” shall be deemed to occur upon: (i)
any sale, lease, exchange or other transfer (in one or a series of related transactions) of all or
substantially all of the assets of the Company or Alterra Bermuda Limited; (ii) any “person” as
such term is used in Section 13(d) and Section 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (a “Person”), is or becomes, directly or indirectly,
the “beneficial owner” as defined in Rule 13d-3 under the Exchange Act of securities of the Company
that represent 51% or more of the combined voting power of the Company’s then outstanding voting
securities (the “Outstanding Company Voting Securities”); provided, that for
purposes of this definition, the following acquisitions shall not constitute a Change in Control:
(A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company
or any affiliate of the Company, (D) any acquisition by any corporation pursuant to a transaction
that complies with subclauses (A) and (B) of clause (iv) of this definition, (E) any acquisition
involving beneficial ownership of less than 50% of the then-outstanding common shares, par value
$1.00 per share, of the Company (and any shares or other securities into which such common shares
may be converted or into which they may be exchanged) (the “Outstanding Company Common
Shares”) or the Outstanding Company Voting Securities that is determined by the Board, based on
review of public disclosure by the acquiring Person with respect to its passive investment intent,
not to have a purpose or effect of changing or influencing the control of the Company;
provided, that for purposes of this subclause (E), any such acquisition in connection with
(x) an actual or threatened election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents or (y) any “Business Combination”
(as defined below) shall be presumed to be for the purpose or with the effect of changing or
influencing the control of the Company; (iii) during any period of two consecutive years, the
individuals who at the beginning of such period constituted the Board together with any individuals
subsequently elected to the Board whose nomination by the shareholders of the Company was approved
by a vote of the then incumbent Board (i.e. those members of the Board who either have been
directors from the beginning of such two-year period or whose election or nomination for election
was previously approved by the Board as provided in this clause (iii)) cease for any reason to
constitute a majority of the Board; (iv) the Board or the shareholders of the Company approve and
consummate a merger, amalgamation or consolidation (a “Business Combination”) of the
Company with any other corporation, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities that were the beneficial owners of the
Outstanding Company Common Shares and the Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding common shares (or, for a non-corporate entity, equivalent securities) and the
combined voting power of the then-outstanding voting securities entitled to vote generally in the
election of directors (or, for a non-corporate entity, equivalent governing body), as the case may
be, of the entity resulting from such Business Combination (including, without limitation, an
entity that, as a result of such transaction, owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership immediately prior to such Business Combination of the Outstanding
Company Common Shares and the Outstanding Company Voting Securities, as the case may be, and (B) at
least a majority of the members of the board of directors (or, for a non-corporate entity,
equivalent governing body) of the entity resulting from such Business Combination were members of
the incumbent Board at the time of the execution of the initial agreement or of the action of the
Board providing for such Business Combination; or (v) the Board or shareholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company (in one or a series of transactions) of all or substantially all of the Company’s
assets.

Upon a termination of Executive’s employment with the Company by the Company without Cause
during a Change in Control Protection Period or by Executive for Good Reason during a Change in
Control Protection Period, in addition to any Accrued Amounts, Executive shall be entitled to
receive the following severance benefits:

(a) Severance pay in the aggregate amount of two and one-half times the sum of (i) Executive’s
Base Salary plus (ii) the greater of (A) the Annual Cash Bonus for the immediately preceding
calendar year and (B) the target Annual Cash Bonus for the then current calendar year, which shall
be paid in 12 equal monthly installments beginning on the Company’s first payroll date following
the 65th day after the Termination Date;

(b) A pro-rata portion of the Annual Cash Bonus for the year of termination, as determined in
the good faith opinion of the Board based on the relative achievement of performance targets
through the Termination Date, payable on the Company’s first payroll date following the
65th day after the Termination Date;

(c) Payment of all remaining Annuity Payments, which shall be paid on the Company’s first
payroll date following the 65th day after the Termination Date;

(d) Accelerated vesting of Time-Vesting Awards as of the Termination Date; and

(e) Any time-based vesting restrictions on Performance-Vesting Awards shall lapse on the
Termination Date, any performance hurdle requirements shall be deemed achieved at their maximum
level under their terms, and such Performance-Vesting Awards shall be paid to Executive on the
65th day following the Termination Date.

3.9 Termination of Employment on or prior to December 31, 2011 by the Company without
Cause or by Executive for Good Reason. Notwithstanding any other provision in this Agreement
to the contrary, if the Company terminates Executive’s employment with the Company without Cause
(other than due to Disability or death), or Executive terminates Executive’s employment with the
Company for Good Reason, in each case on or prior to December 31, 2011, in addition to any Accrued
Amounts, Executive shall be entitled to receive, in lieu of any other severance benefits under this
Agreement, the following severance benefits:

(a) Severance pay in the aggregate amount of three times the sum of (i) Executive’s Base
Salary under the Prior Agreement plus (ii) the amount of the annual cash bonus paid to Executive in
2011 for the 2010 performance year plus (iii) the value of the annual restricted stock award
granted to Executive on March 1, 2011 for the 2010 performance year, which shall be paid in 12
equal monthly installments beginning on the Company’s first payroll date following the 65th day
after the Termination Date;

(b) A pro-rata portion of the Annual Cash Bonus for the year of termination, as determined in
the good faith opinion of the Board based on the relative achievement of performance targets
through the Termination Date, payable on the Company’s first payroll date following the 65th day
after the Termination Date; and

(c) Accelerated vesting of Time-Vesting Awards as of the Termination Date other than the
Execution Award, which shall be forfeited.

3.10 Prior Transaction Change in Control Provisions.

(a) The provisions in this Section 3.10 shall only apply with respect to the transactions
contemplated by the Amalgamation Agreement dated March 3, 2010 pursuant to which Alterra Holdings
Limited amalgamated with Harbor Point Limited, effective May 12, 2010 (the “Prior
Transaction”).

(b) Anything in this Agreement to the contrary notwithstanding, any payment, award, benefit or
distribution (or any acceleration of any payment, award, benefit or distribution) by the Company or
any entity which effectuated a change in ownership or effective control of the Company or a change
in the ownership of a substantial portion of the assets of the Company in connection with the Prior
Transaction, in either case, within the meaning of Section 280G(b)(2)(A)(i) of the Internal Revenue
Code of 1986, as amended (the “Code”) and the regulations promulgated thereunder (a
“Change in Ownership”), to or for the benefit of Executive (the “Payments”) is
subject to the excise tax imposed by Section 4999 of the Code, or any interest or penalties are
incurred by Executive with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”),
then, the Company shall pay to Executive an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by Executive of all taxes (including any Excise Tax, but excluding
any taxes or penalties under Section 409A of the Code) imposed upon the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the
Payments and (y) the product of any deductions disallowed because of the inclusion of the Gross-Up
Payment in Executive’s adjusted gross income and the highest applicable marginal rate of federal
income taxation for the calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to (A) pay federal income
taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment
is to be made, (B) pay applicable state and local income taxes at the highest marginal rate of
taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local
taxes and (C) have otherwise allowable deductions for federal income tax purposes at least equal to
those which could be disallowed because of the inclusion of the Gross-Up Payment in Executive’s
adjusted gross income. Notwithstanding the foregoing provisions of this Section 3.10(b), if it
shall be determined that Executive is entitled to a Gross-Up Payment, but that the Payments would
not be subject to the Excise Tax if the Payments were reduced by an amount that is less than 15% of
the aggregate payments, then the amounts payable to Executive under this Agreement shall be reduced
(but not below zero) to the maximum amount that could be paid to Executive without giving rise to
the Excise Tax (the “Safe Harbor Cap”), and no Gross-Up Payment shall be made to Executive.
The reduction of the amounts payable hereunder, if applicable, shall be made by reducing first the
payments under Section 3.5 through 3.9, unless an alternative method of reduction is elected by
Executive. For purposes of reducing the Payments to the Safe Harbor Cap, only amounts payable
under this Agreement (and no other Payments) shall be reduced. If the reduction of the amounts
payable hereunder would not result in a reduction of the Payments to the Safe Harbor Cap, no
amounts payable under this Agreement shall be reduced pursuant to this provision.

(c) Subject to the provisions of Section 3.10(b), all determinations required to be made under
this Section 3.10, including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determinations, shall be
made by the public accounting firm that is retained by the Company at the time that the applicable
calculations are made (the “Accounting Firm”), and the Accounting Firm shall provide
detailed supporting calculations both to the Company and Executive within 15 business days of the
receipt of notice from the Company or Executive that there has been a Payment, or such earlier time
as is requested by the Company (collectively, the “Determination”). All fees and expenses
of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any
agreement requested by the Accounting Firm in connection with the performance of the services
hereunder. The Gross-Up Payment under this Section 3.10 with respect to any Payments made to
Executive shall be made no later than 30 days following such Payment. The Determination by the
Accounting Firm shall be binding upon the Company and Executive.

(d) As a result of the uncertainty in the application of Section 4999 of the Code at the time
of the Determination, it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (“Underpayment”) or Gross-Up Payments are made by the Company
which should not have been made (“Overpayment”), consistent with the calculations required
to be made hereunder. In the event that Executive thereafter is required to make payment of any
Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of Executive. In the event the amount of the Gross-Up Payment exceeds the amount
necessary to reimburse Executive for his Excise Tax, the Accounting Firm shall determine the amount
of the Overpayment that has been made and any such Overpayment shall be promptly paid by Executive
(to the extent he has received a refund if the applicable Excise Tax has been paid to the Internal
Revenue Service) to or for the benefit of the Company. Executive shall cooperate, to the extent his
expenses are reimbursed by the Company, with any reasonable requests by the Company in connection
with any contest or disputes with the Internal Revenue Service in connection with the Excise Tax.

3.11 General Change in Control Provisions.

(a) If, in connection with any Change in Ownership occurring after the date hereof, the
Company (or its successor) determines, based upon the advice the Accounting Firm, that part or all
of the consideration, compensation or benefits to be paid to Executive under this Agreement
constitute “parachute payments” under Section 280G(b)(2) of the Code, then, (i) if requested by
Executive, the Company will cooperate with Executive to restructure such arrangements to eliminate
or minimize the amount of such payments which constitutes parachute payments in a manner deemed
acceptable to Executive and (ii) whether or not a restructuring described in clause (i) is
effected, if the aggregate present value of such parachute payments, singularly or together with
the aggregate present value of any consideration, compensation or benefits to be paid to Executive
under any other plan, arrangement or agreement which constitute “parachute payments” (collectively,
the “Parachute Amount”) exceeds 2.99 times Executive’s “base amount”, as defined in Section
280G(b)(3) of the Code (the “Executive Base Amount”), the amounts constituting “parachute
payments” which would otherwise be payable to or for the benefit of Executive shall be reduced to
the extent necessary so that the Parachute Amount is equal to 2.99 times the Executive Base Amount
(the “Reduced Amount”); provided, that such amounts shall not be so reduced if
without such reduction Executive would be entitled to receive and retain, on a net after tax basis
(including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount
which is greater than the amount, on a net after tax basis, that Executive would be entitled to
retain upon his receipt of the Reduced Amount.

(b) If the determination made pursuant to paragraph (a) of this Section 3.11 results in a
reduction of the payments that would otherwise be paid to Executive except for the application of
paragraph (a) of this Section 3.11, the payments or benefits under this Agreement shall be reduced
in the order that minimizes the amount of total reduction in payments and benefits under this
Agreement as a result of this provision as determined by the Accounting Firm.

(c) For the avoidance of doubt, the provisions of paragraphs (a) and (b) of this Section 3.11
shall not limit Executive’s rights with respect to amounts otherwise owed to Executive pursuant to
the Prior Transaction Gross-Up Payment provisions in Section 3.10.

3.12 Compliance with Covenants; Release; Resignations. Any payments or benefits made
or provided pursuant to Section 3.5 through 3.9 hereof are subject to Executive’s:

(a) Compliance with the provisions of Section 4 hereof;

(b) Delivery to the Company of an executed general release of all claims against the Company
(other than claims to enforce the provisions of Section 3.5 through 3.9, and claims for earned
vested amounts under any employee benefit plan and other claims that cannot by law be waived), with
all revocation periods having expired, within 60 days after Executive’s termination date, in the
form of release of claims set forth as Exhibit B hereto (the “Release”); and

(c) Delivery to the Company of a resignation from all offices, directorships and fiduciary
positions with the Company, its affiliates and employee benefit plans.

3.13 Bermuda Employment Act 2000. Executive agrees that the first month of any
severance pay under this Section 3 shall be deemed pay in lieu of notice under section 21 of the
Bermuda Employment Act 2000.

SECTION 4 RESTRICTIVE COVENANTS

4.1 Return of Property and Nondisclosure. Upon termination or expiration of his
employment, Executive will promptly deliver to the Company all data, lists, information, memoranda,
documents and all other property belonging to the Company or containing “Confidential Information”
(as defined below), including, among other things, that which relates to services performed by
Executive for the Company or any affiliate, or was created or obtained by Executive while
performing services for the Company or any affiliate or by virtue of Executive’s relationship with
the Company or any affiliate, except that Executive shall have no obligation to deliver to the
Company his rolodex, calendars and any documents containing Executive’s personal contacts or
information. Except (i) as required in order to perform his obligations under this Agreement; (ii)
as may otherwise be required by law or any legal process; or (iii) as is necessary in connection
with any adversarial proceeding against the Company (in which case Executive shall use his
reasonable best efforts in cooperating with the Company in obtaining a protective order against
disclosure by a court of competent jurisdiction), Executive shall not, without the express prior
written consent of the Company, disclose or divulge to any other person or entity, or use or modify
for use, directly or indirectly, in any way, for any person or entity, any of the Company’s or any
affiliate’s Confidential Information at any time (during or after Executive’s employment). For
purposes of this Agreement, “Confidential Information” of the Company shall mean any valuable,
competitively sensitive data and information related to the Company’s or any affiliate’s business,
including Trade Secrets (as defined below) that are not generally known by or readily available to
the Company’s or any affiliate’s competitors other than as a result of an improper disclosure
directly or indirectly by Executive. “Trade Secrets” shall mean information or data of the Company
or any affiliates, including technical or non-technical data, financial information, programs,
devices, methods, techniques, drawings, processes, financial plans, product plans or lists of
actual or potential customers or suppliers, that: (A) derive economic value, actual or potential,
from not being generally known to, and not being readily ascertainable by proper means by, other
persons who can obtain economic value from their disclosure or use; and (B) are the subject of
efforts that are reasonable under the circumstances to maintain their secrecy.

4.2 Post-Employment Property. Executive agrees that any and all intellectual property
that Executive invents, discovers, originates, makes, conceives, creates or authors either solely
or jointly with others and that is the result of or is substantially derived from Confidential
Information shall be the sole and exclusive property of the Company unless in the public domain.
Executive shall promptly and fully disclose all such property to the Company, shall provide the
Company with any information that it may reasonably request about such property and shall execute
such agreements, assignments or other instruments as may be reasonably requested by the Company to
reflect such ownership by the Company.

4.3 Noninterference with Clients or Employees. Executive agrees that, during the
period of Executive’s employment with the Company and for a period of 24 months following the date
of termination of employment for any reason, whether voluntary or involuntary (the
“Noninterference Period”), Executive shall not, on Executive’s own behalf or on behalf of
any other person or entity, solicit or in any manner influence or encourage any current or
prospective client, customer, executive, employee, consultant or other person or entity that has a
business relationship with the Company, to terminate or limit in any way his, her, its or their
relationship with the Company, or interfere in any way with such relationship, and/or solicit or in
any manner influence or discourage any prospective client or customer that was contacted by the
Company within the 12-month period preceding Executive’s date of termination from entering into a
business relationship with the Company.

4.4 Noncompetition.

(a) Executive agrees that, during the period of Executive’s employment with the Company and
for a period of (i) 12 months following the date of termination of employment for any reason,
whether voluntary or involuntary, other than Retirement or (ii) 24 months following the date of
termination of employment due to Executive’s Retirement (the “Noncompetition Period”),
Executive shall neither, directly nor indirectly, engage or hold an interest in any business
engaged in the Business in those geographic areas in which the Company conducts the Business, and
shall not, directly or indirectly, have any interest in, own, manage, operate, control, be
connected with as a stockholder (other than as a stockholder of less than five percent of the
issued and outstanding stock of a publicly held corporation), joint venturer, officer, director,
partner, employee or consultant, or otherwise engage or invest or participate in the Business in
those geographic areas in which the Company engages in the Business. For purposes of this
Agreement, “Business” shall mean (i) specialty insurance or reinsurance and (ii) any other business
in which the Company is engaged in at the time of the termination of Executive’s employment.

(b) Notwithstanding the paragraph (a) of this Section 4.3, during the Noncompetition Period,
Executive shall be permitted to serve on boards of directors of companies that are not included in
the Company’s “peer group” (as disclosed in the Company’s most recent annual proxy statement) with
the prior written consent of the Board, with such consent not unreasonably withheld.

4.5 Other Restrictive Covenants. The applicable terms of equity or incentive awards
granted to Executive by the Company may provide for noncompetition or noninterference covenants of
a duration longer than the Noninterference Period or the Noncompetition Period; provided,
that such covenants are no more restrictive on Executive than those covenants applicable generally
to other senior executives of the Company in such equity or incentive awards (“Incentive Award
Restrictive Covenants”), and such duration shall not be modified by any provision in this
Agreement, subject to the limitation of remedies in connection therewith set forth in Section 4.6.

4.6 Enforcement. Executive acknowledges and agrees that the provisions of this
Section 4 are reasonable and necessary for the successful operation of the Company. Executive
further acknowledges that if he breaches any provision of this Section 4, the Company will suffer
irreparable injury. It is therefore agreed that the Company shall have the right to enjoin any
such breach or threatened breach, if ordered by a court of competent jurisdiction. The existence
of this right to injunctive and other equitable relief shall not limit any other rights or remedies
that the Company may have at law or in equity, including the right to monetary and compensatory
damages. The Company shall be entitled to monetary and compensatory damages for any breaches by
Executive of any provision of this Section 4 only in the event that Executive willfully and
materially breaches any provision of this Section 4 and the Company shall be entitled to recover
from Executive no more than 50% of the aggregate amount, if any, paid to Executive under Sections
3.5(a) and (b), 3.6(b)(i), 3.6(c)(i), 3.7(a) and (b), 3.8(a) and (b), or 3.9(a) and (b). If any
provision of this Section 4 is determined by a court of competent jurisdiction to be unenforceable
in the manner set forth herein, Executive and the Company agree that it is the intention of the
parties that such provision should be enforceable to the maximum extent possible under applicable
law. If any provisions of this Section 4 are held to be invalid or unenforceable, such
invalidation or unenforceability shall not affect the validity or enforceability of any other
provision of this Section 4 (or any portion thereof). Notwithstanding the foregoing or any other
provision in this Agreement or any documents relating to any equity or other incentive award, in
the event of Executive’s breach of any Incentive Award Restrictive Covenants, the Company’s sole
remedy shall be, in the case of a willful and material breach of such Incentive Award Restrictive
Covenants, the cancellation or recovery of Executive’s then unvested interest, if any, in such
equity or incentive awards (or if vesting of such awards was accelerated and such breach occurred
prior to the normally scheduled vesting date of such award, the Company’s recovery of such award or
the value thereof). The Company shall reimburse Executive for his reasonable legal fees and
expenses incurred in any dispute with the Company regarding Executive’s breach of this Section 4 if
Executive is successful on any material claims raised in such dispute.

4.7 Subsidiaries. For purposes of the restrictions of this Section 4, references to
the “Company” include reference to its subsidiaries.

SECTION 5 INDEMNIFICATION

5.1 General. The Company shall indemnify Executive to the fullest extent permitted by
the Company’s charter, by-laws and applicable law. The Company shall also maintain and cover
Executive under one or more contract(s) of directors’ and officers’ liability insurance both during
and, while potential liability exists, after the term of this Agreement and Executive’s employment,
to the same extent as the Company covers its other officers and directors.

5.2 409A/457A Indemnity. The Company agrees to indemnify, and hold Executive
harmless, on an after-tax basis from (i) any excise, penalty or other taxes incurred by Executive
pursuant to Sections 409A or 457A of the Code under the Prior Agreement or in connection with the
compensation or benefits payable to Executive hereunder and (ii) any interest and penalties
associated with such aforementioned excise, penalty or other taxes and any expenses of Executive
(including counsel fees) reasonably incurred in contesting such taxes, interest or penalties (the
“Indemnity Payment”). Any Indemnity Payment shall be paid to Executive in cash as soon as
practicable after the applicable liability is incurred by Executive but in any event no later than
the calendar year after the calendar year in which Executive remits the applicable taxes, interest
or penalties to the applicable taxing authority, in accordance with Treas. Reg. Section
1.409A-3(i)(1)(v) or any successor thereto.

SECTION 6 MISCELLANEOUS PROVISIONS

6.1 Nondisparagement. Neither the Company nor any of its officers (within the meaning
of Section 16 of the Exchange Act) shall publicly defame or criticize the services, business,
integrity, veracity or personal or professional reputation of Executive, and Executive shall not
publicly defame or criticize the services, business, integrity, veracity or personal or
professional reputation of the Company, its officers, directors, partners, employees, affiliates,
or agents thereof, in each case (i) in either a professional or personal manner and (ii) other than
by truthful testimony in any legal proceeding.

6.2 Assignment and Successors. The rights and obligations of the Company under this
Agreement may be freely assigned (including, but not limited to assignment to an affiliate of the
Company for purposes of payroll) and shall inure to the benefit of and be binding upon the
successors and assigns of the Company. Executive’s obligation to provide services hereunder may
not be assigned to or assumed by any other person or entity.

6.3 Mitigation; Offset. Except as specifically provided hereunder, Executive shall not
be required to mitigate damages resulting from his termination of employment and the amounts
payable to Executive pursuant to this Agreement shall not be offset or reduced by any other
compensation earned by Executive.

6.4 Notices. All notices, requests, demands or other communications under this
Agreement shall be in writing and shall only be deemed to be duly given (i) on the date of delivery
if delivered by hand; (ii) on the date of transmission, if delivered by confirmed facsimile; (iii)
on the first business day following the date of deposit if delivered by guaranteed overnight
delivery service; or (iv) on the fourth business day following the date delivered or mailed by
registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Company, to its principal executive offices, Attention: Corporate Secretary, or to
such other person as the Company shall designate by written notice to Executive.

If to Executive, to his last known address shown on the payroll records of the Company.

6.5 Severability. Any provision of this Agreement which is deemed invalid, illegal or
unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph, be
ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in
any way the remaining provisions hereof in such jurisdiction or rendering that or any other
provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any
covenant should be deemed invalid, illegal or unenforceable because its scope is considered
excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the
minimum extent necessary to render the modified covenant valid, legal and enforceable.

6.6 Complete Agreement. This Agreement contains the entire agreement between the
parties and supersedes previous verbal and written discussions, negotiations, agreements or
understandings between the parties.

6.7 Amendment and Waiver. This Agreement may be modified, amended or waived only by a
written instrument signed by all the parties hereto. No waiver or breach of any provision hereof
shall be a waiver of any future breach, whether similar or dissimilar in nature.

6.8 Applicable Law. This Agreement has been made and its validity, performance and
effect shall be determined in accordance with the laws of the State of New York.

6.9 Arbitration. Except as otherwise provided in Section 4 of this Agreement, if any
contest or dispute arises between the parties with respect to this Agreement, such contest or
dispute shall be submitted to binding arbitration for resolution in New York in accordance with the
rules and procedures of the American Arbitration Association then in effect. The decision of the
arbitrator shall be final and binding on both parties, and any court of competent jurisdiction may
enter judgment upon the award. Each party shall pay its own legal fees and expenses incurred in
connection therewith. Notwithstanding the foregoing, upon termination of Executive’s employment
with the Company during a Change in Control Protection Period, or upon termination of Executive’s
employment with the Company for Good Reason (whether or not during a Change in Control Protection
Period), the Company shall reimburse Executive for his reasonable legal fees and expenses incurred
in any such dispute if Executive is successful on any material claims raised in such dispute.

6.10 Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same instrument.

6.11 Interpretation. The headings contained in this Agreement are for reference
purposes only and shall not affect in any ways the meaning or interpretation of this Agreement.
The language in all parts of this Agreement shall in all cases be construed according to its fair
meaning, and not strictly for or against any party hereto. In this Agreement, unless the context
otherwise requires, the masculine, feminine and neuter genders and the singular and the plural
include one another.

6.12 Non-Waiver of Rights and Breaches. No failure or delay of any party herein in
the exercise of any right given to such party hereunder shall constitute a waiver thereof unless
the time specified herein for the exercise of such right has expired, nor shall any single or
partial exercise of any right preclude other or further exercise thereof or of any other right.
The waiver of a party hereto of any default of any other party shall not be deemed to be a waiver
of any subsequent default or other default by such party.

6.13 Survival. The provisions of Section 4 shall survive the termination of this
Agreement (and any concurrent or subsequent termination of Executive’s employment). The provisions
of Section 3 shall survive any termination of Executive’s employment during the Term.

6.14 Superseding Agreement. In the event of any conflict between the terms of this
Agreement and the terms of any Company plan, program or policy, the terms of this Agreement shall
control to the extent such terms are more favorable to Executive; provided, that the
Company shall have an appropriate opportunity to conform the terms of any such conflicting plan,
program or policy to the terms of this Agreement.

6.15 Sections 409A and 457A. Anything in this Agreement to the contrary
notwithstanding:

(a) It is intended that any amounts payable under this Agreement shall either be exempt from
or comply with Section 409A of the Code and all regulations, guidance and other interpretive
authority issued thereunder (“Code Section 409A”) and Section 457A of the Code and all
guidance and other interpretive authority issued thereunder (“Code Section 457A”) so as not
to subject Executive to payment of any additional tax, penalty or interest imposed under Code
Section 409A or Code Section 457A. The provisions of this Agreement shall be construed and
interpreted to avoid the imputation of any such additional tax, penalty or interest under Code
Section 409A or Code Section 457A yet preserve (to the nearest extent reasonably possible) the
intended benefit payable to Executive.

(b) To the extent that the reimbursement of any expenses or the provision of any in-kind
benefits under this Agreement is subject to Code Section 409A, (i) the amount of such expenses
eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall
not affect the amount of such expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other calendar year; (ii) reimbursement of any such expense shall be made by no
later than December 31 of the year following the calendar year in which such expense is incurred;
and (iii) Executive’s right to receive such reimbursements or in-kind benefits shall not be subject
to liquidation or exchange for another benefit.

(c) If Executive is a “specified employee” within the meaning of Treasury Regulation Section
1.409A -1(i) as of the date of Executive’s “separation from service” within the meaning of Code
Section 409A (a “Separation from Service”), then any payment or benefit provided to
Executive from the Company on account of Executive’s Separation from Service, to the extent such
payment or benefit (after taking into account all exclusions applicable to such payment under Code
Section 409A) is properly treated as “deferred compensation” subject to Code Section 409A, shall
not be made until the first business day after (i) the expiration of six months from the date of
Executive’s Separation from Service, or (ii) if earlier, the date of Executive’s death (the
“Delayed Payment Date”). On (or within five business days after) the Delayed Payment Date,
there shall be paid to Executive or, if Executive has died, to the representative of Executive’s
estate, in a single cash lump sum, an amount equal to the aggregate amount of the payments delayed
pursuant to the preceding sentence.

(d) Executive’s right to receive such severance payments under Section 3 shall be treated as a
right to receive a series of separate payments under Treasury Regulation Section
1.409A-2(b)(2)(iii). Notwithstanding any provision in this Agreement to the contrary, for purposes
of any provision of this Agreement providing for the payment of any amounts or benefits upon or
following a termination of employment that are considered “deferred compensation” under Code
Section 409A, references to Executive’s “termination of employment” (and corollary terms) with the
Company shall be construed to refer to Executive’s Separation from Service with the Company.

(e) Any severance pay to which Executive is entitled under Section 3 that is outstanding as of
December 31 of the year following the year in which the Termination Date occurs shall be paid on
such December 31, and no further severance payments shall be made after that date.

6.16 Attorney’s Fees. The Company shall reimburse Executive for the reasonable legal
fees and expenses of Executive’s counsel in connection with the negotiation and preparation of this
Agreement.

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

Alterra Capital Holdings Limited

By:

Name: Joseph W. Roberts

Title: Chief Financial Officer

W. Marston Becker

EXHIBIT A

Form of Execution Award Agreement

EXHIBIT B

Release of Claims

GENERAL RELEASE

I, W. Marston Becker, on behalf of myself and my heirs, executors, administrators and assigns,
in consideration of the compensation and benefits provided to me by Alterra Capital Holdings
Limited (the “Company”) pursuant to Section 3.5 – 3.9, as applicable of my Employment
Agreement dated June 1, 2011 (to which this General Release is attached), do hereby release and
forever discharge and covenant not to sue the Company and its subsidiaries, affiliates, directors,
members, officers, executives, agents, stockholders, and its and their affiliates, and its and
their successors and assigns (both individually and in their official capacities) (the
“Releasees”), from any and all actions, causes of action, covenants, contracts, claims,
demands, suits, and liabilities whatsoever, which I ever had, now have or may have arising prior to
or on the effective date of this General Release by reason of my employment with or severance of my
employment from the Company and its affiliates (“Claims”).

By signing this General Release, I am providing a complete waiver of all Claims that may have
arisen, whether known or unknown, up until and including the effective date of this General
Release. This includes, but is not limited to, claims based on Title VII of the Civil Rights Act
of 1964, the Civil Rights Act of 1866, the Age Discrimination in Employment Act of 1967
(“ADEA”) (including the Older Workers Benefit Protection Act), the Americans With
Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, the Family and Medical Leave
Act, the Executive Retirement Income Security Act of 1974 (except as provided below), the New York
State and New York City Human Rights Laws, the New York Labor Law, and all applicable amendments to
the foregoing acts and laws, or any common law, public policy, contract (whether oral or written,
express or implied) or tort law, and any other local, state or Federal law, regulation or ordinance
having any bearing whatsoever on the terms and conditions of my employment and the cessation
thereof, including the laws of Bermuda, including but not limited to the Employment Act of 2000 and
the Human Rights Act of 1981. This General Release shall not, however, apply to any obligation of
the Company pursuant to Section 3.5 – 3.9, as applicable of the Employment Agreement and other
provisions of the Employment Agreement that by their terms survive the severance of my employment,
any rights I may have under equity award agreements between me and the Company, any rights to
indemnification from the Company I may have, any rights to continuing directors’ and officers’
liability insurance to the same extent as the Company covers its other officers and directors, any
rights that I may have to obtain contribution in the event of the entry of judgment against me as a
result of any act or failure to act for which both me and the Company are jointly responsible or
any benefit to which I am entitled under any tax qualified pension plan of the Company or its
affiliates, COBRA continuation coverage benefits, vested benefits under any other benefit plans of
the Company or its affiliates or any other welfare benefits required to be provided by statute
(claims with respect thereto, collectively, “Excluded Claims”). I further agree, promise
and covenant that, to the maximum extent permitted by law, neither, I, nor any person,
organization, or other entity acting on my behalf has filed or will file, charged or will charge,
claimed or will claim, sued or will sue, or caused or will cause, or permitted or will permit to be
filed, charged or claimed, any action for damages or other relief (including injunctive,
declaratory, monetary or other relief) against the Releasees with respect to any Claims other than
Excluded Claims.

I hereby acknowledge and confirm that I was advised by the Company in connection with my
termination of employment to consult with an attorney of my choice prior to signing this General
Release, including, without limitation, with respect to the terms relating to my release of claims
arising under ADEA, and that I have in fact consulted an attorney. I have been given 21 days to
review this General Release, and I am signing this General Release knowingly, voluntarily and with
full understanding of its terms and effects, and I voluntarily accept the benefits provided for
under Section 3.5 – 3.9, as applicable of the Employment Agreement for the purpose of making full
and final settlement of all claims referred to above. I also understand that I have seven days
after execution to revoke this General Release, and that this General Release and any obligations
that the Company has to me under Section 3.5 – 3.9, as applicable of the Employment Agreement and
will not become effective if I exercise my right to revoke my signature within seven days of
execution. I understand that such revocation must be delivered to the Company at its headquarters,
attn: Secretary, during such period to be effective.

I acknowledge that I have not relied on any representations or statements not set forth in my
Employment Agreement or this General Release. I will not disclose the contents or substance of
this General Release to anyone except my immediate family and any tax, legal or other counsel I
have consulted regarding the meaning or effect hereof, and I will instruct each of the foregoing
not to disclose the same.

This General Release will be governed by and construed in accordance with the laws of the
State of New York. If any provision in this General Release is held invalid or unenforceable for
any reason, the remaining provisions shall be construed as if the invalid or unenforceable
provision had not been included.

IN WITNESS WHEREOF, I have executed this General Release on this       day of
                      , 20   .

W. Marston Becker

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