Document:

EX-10.1

SIXTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

This SIXTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as
of December 21, 2006, and is entered into by and among PARAMOUNT PETROLEUM CORPORATION, a Delaware
corporation (the “Borrower”), each of the financial institutions party to the Credit Agreement
referenced below (collectively the “Lenders”), BANK OF AMERICA, N.A., as Administrative Agent for
the Lenders (the “Agent”), BANK OF AMERICA, N.A., as Bank, and Banc of America Securities LLC,
solely in its capacity as sole lead arranger and book manager (“BAS”).

WHEREAS, the Borrower, the Agent, and the Lenders, among others, have entered into that
certain Amended and Restated Credit Agreement (as amended, restated, or otherwise modified from
time to time, the “Credit Agreement”), dated as of July 26, 2005;

WHEREAS, the Borrower has requested that Agent and Lenders extend the maturity date for the
loans and other credit accommodations made pursuant to the Credit Agreement to March 1, 2007. The
Agent and the Lenders have agreed to the foregoing requests, but only on the terms and conditions
set forth below.

NOW, THEREFORE, the parties hereto do hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. Initially capitalized terms used but not otherwise defined
in this Amendment have the meanings given thereto in the Credit Agreement, as amended hereby.

ARTICLE II

AMENDMENTS

Section 2.1 Amended Definition. The definition of “Stated Maturity Date” set forth in
Annex A to the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“‘Stated Termination Date’ means March 1, 2007.”

ARTICLE III

FURTHER ASSURANCES

Section 3.1 Further Assurances. The Borrower agrees that, promptly upon request by
the Agent, the Borrower will execute and deliver (or cause to be executed and delivered) to the
Agent one or more amendments to the deeds of trust in favor of the Agent reflecting the extension
of the Stated Maturity Date as set forth in this Amendment, together with such endorsements to
title policies issued in favor of the Agent as the Agent may require in its discretion.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.1 Conditions Precedent. This Amendment will not be binding on the Agent and
the Lenders until the satisfaction of the following conditions precedent in form and substance
satisfactory to the Agent:

(a) The representations and warranties contained herein and in the Credit Agreement, as
amended hereby, shall be true and correct in all material respects as of the date hereof as
if made on the date hereof, except for such representations and warranties limited by their
terms to a specific date (which representations and warranties are true and correct in all
material respects as of such date);

(b) No Default or Event of Default shall have occurred and be continuing; and

(c) The Borrower shall have delivered to the Agent an executed original of this
Amendment together with all acknowledgements.

ARTICLE V

MISCELLANEOUS

Section 5.1 Acknowledgment of the Borrower; Representations and Warranties.

(a) The Borrower hereby represents and warrants that the execution and delivery of this
Amendment and compliance by the Borrower with all of the provisions of this Amendment: (i)
are within the powers and purposes of the Borrower; (ii) have been duly authorized or
approved by the Borrower; and (iii) when executed and delivered by or on behalf of the
Borrower will constitute valid and binding obligations of the Borrower, enforceable in
accordance with their terms. The Borrower reaffirms its obligation to pay all amounts due
to the Agent or the Lenders under the Loan Documents in accordance with the terms thereof,
as modified hereby.

(b) The Borrower hereby represents and warrants to the Agent and the Lenders that (i)
no Default or Event of Default has occurred and is continuing, (ii) the representations and
warranties contained herein and in the Credit Agreement, as amended hereby, are true and
correct in all material respects as of the date hereof as if made on the date hereof, except
for such representations and warranties limited by their terms to a specific date (which
representations and warranties are true and correct in all material respects as of such
date), and (iii) the Borrower is in compliance with all covenants set forth in the Credit
Agreement, as amended hereby.

(c) The Borrower hereby represents and warrants to the Agent and the Lenders that
neither the consent of the Term Loan Lenders nor of the Term Loan Agent is required under
the terms of either the Amended and Restated Intercreditor Agreement or the Term Loan
Documents in order to consummate the transactions and amendments contemplated by this
Amendment. In the alternative, if any such consent by the Term Loan Lenders or the Term
Loan Agent is required, such consent has been obtained and delivered to the Agent, in form
and substance satisfactory to the Agent, on or before the date of this Amendment.

Section 5.2 Loan Documents Unmodified. Except as otherwise specifically modified by
this Amendment, all terms and provisions of the Credit Agreement and all other Loan Documents, as
modified hereby, shall remain in full force and effect. A breach by the Borrower of the terms of
this Amendment shall be a Default or Event of Default, as applicable, under the Credit Agreement,
subject to the terms of Article 9 of the Credit Agreement, which shall apply to this Amendment,
mutatis mutandis. Nothing contained in this Amendment shall in any way impair the validity or
enforceability of the Loan Documents, as modified hereby, or alter, waive, annul, vary, affect, or
impair any provisions, conditions, or covenants contained therein or any rights, powers, or
remedies granted therein, except as otherwise specifically provided in this Amendment. Subject to
the terms of this Amendment, any lien and/or security interest granted to the Agent, for the
benefit of the Lenders, in the Collateral set forth in the Loan Documents shall remain unchanged
and in full force and effect and the Credit Agreement and the other Loan Documents shall continue
to secure the payment and performance of all of the Obligations.

Section 5.3 Parties, Successors and Assigns. This Amendment shall be binding upon and
shall inure to the benefit of the Borrower, the Agent, the Lenders, and their respective successors
and assigns.

Section 5.4 Counterparts. This Amendment may be executed in one or more counterparts
and by telecopy, each of which when so executed shall be deemed to be an original, but all of which
when taken together shall constitute one and the same instrument.

Section 5.5 EFFECT OF WAIVER. NO CONSENT OR WAIVER, EXPRESS OR IMPLIED, BY THE AGENT
TO OR OF ANY BREACH OF OR DEVIATION FROM ANY COVENANT, DUTY, OR CONDITION SET FORTH IN THE CREDIT
AGREEMENT SHALL BE DEEMED A CONSENT OR WAIVER TO OR OF ANY OTHER BREACH OF OR DEVIATION FROM THE
SAME OR ANY OTHER COVENANT, DUTY, OR CONDITION. NO FAILURE ON THE PART OF THE AGENT OR ANY LENDER
TO EXERCISE, NO DELAY IN EXERCISING, AND NO COURSE OF DEALING WITH RESPECT TO, ANY RIGHT, POWER, OR
PRIVILEGE UNDER THIS AMENDMENT, THE CREDIT AGREEMENT, OR ANY OTHER LOAN DOCUMENT SHALL OPERATE AS A
WAIVER THEREOF, NOR SHALL ANY SINGLE OR PARTIAL EXERCISE OF ANY RIGHT, POWER, OR PRIVILEGE UNDER
THIS AMENDMENT, THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT PRECLUDE ANY OTHER OR FURTHER
EXERCISE THEREOF OR THE EXERCISE OF ANY OTHER RIGHT, POWER, OR PRIVILEGE. THE RIGHTS AND REMEDIES
PROVIDED FOR IN THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS ARE CUMULATIVE AND NOT EXCLUSIVE
OF ANY RIGHTS AND REMEDIES PROVIDED BY LAW.

Section 5.6 Headings. The headings, captions, and arrangements used in this Amendment
are for convenience only, are not a part of this Amendment, and shall not affect the interpretation
hereof.

Section 5.7 Expenses of Agent and BAS. Without limiting the terms and conditions of
the Loan Documents, the Borrower agrees to pay on demand: (a) all costs and expenses incurred by
the Agent and BAS in connection with the preparation, negotiation, and execution of this Amendment
and the other Loan Documents executed pursuant hereto and any and all subsequent amendments,
modifications, and supplements hereto or thereto, including without limitation, the costs and fees
of the Agent’s legal counsel; and (b) all costs and expenses reasonably incurred by the Agent in
connection with the enforcement or preservation of any rights under the Credit Agreement, this
Amendment, and/or the other Loan Documents, including without limitation, the costs and fees of the
Agent’s legal counsel and the costs and fees associated with any environmental due diligence
conducted in relation hereto.

Section 5.8 Choice of Law; Jury Trial Waiver. TO THE EXTENT PERMITTED BY LAW, EACH OF
THE PARTIES HERETO WAIVES ITS RIGHT TO A TRIAL BY JURY, IF ANY, IN ANY ACTION TO ENFORCE, DEFEND,
INTERPRET, OR OTHERWISE CONCERNING THIS AMENDMENT. Without limiting the applicability of any other
provision of the Credit Agreement, the terms of Section 13.3 of the Credit Agreement shall
apply to this Amendment.

Section 5.9 Total Agreement. This Amendment, the Credit Agreement, and all other Loan
Documents shall constitute the entire agreement between the parties relating to the subject matter
hereof, and shall rescind all prior agreements and understandings between the parties hereto
relating to the subject matter hereof, and shall not be changed or terminated orally.

[Remainder of Page Intentionally Left Blank]

1

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

	 	 	 
	                    

                    

                    

                    

       

	 	“BORROWER”

 

PARAMOUNT PETROLEUM CORPORATION,

a Delaware corporation

 

 

By: /s/ Shai Even

Name: Shai Even

Title: Vice President and Chief Financial Officer

 

 
	 
	 	 
	                    

                    

                    

                    

       

	 	 

“AGENT”

 

BANK OF AMERICA, N.A.

 

 

By:      /s/ Todd R. Eggertsen

Name:  Todd R. Eggertsen

Title:    Vice President

 

 
	 
	 	 
	                    

                    

                    

                    

       

	 	 

“BAS”

 

BANC OF AMERICA SECURITIES LLC,

as sole lead arranger and book manager

 

 

By:      /s/ Janet Jarrett

Name:  Janet Jarrett

Title:    Principal

 

 
	 
	 	 
	                    

                    

                    

                    

       

	 	 “BANK”

 

BANK OF AMERICA, N.A.

 

 

By:      /s/ Todd R. Eggertsen

Name:  Todd R. Eggertsen

Title:    Vice President 

 

 

 

  

 

 
	 
	 	 
	                    

                    

                    

                    

       

	 	 

“LENDERS”

 

BANK OF AMERICA, N.A.

 

 

By:      /s/ Todd R. Eggertsen

Name:  Todd R. Eggertsen

Title:    Vice President

 

 

SOCIÉTÉ GÉNÉRALE

 

 

By:      /s/ Chung-Taek Oh

Name:  Chung-Taek Oh

Title:    Associate

 

 

By:      /s/ Emmanuel Chesneau

Name:  Emmanuel Chesneau

Title:    Managing Director

 

 

CITIBANK, N.A.

 

 

By:      /s/ Hillary Savoie

Name:  Hillary Savoie

Title:    Senior Vice President

 

 

 

BNP PARIBAS

 

 

By:      /s/ Jordan Nenoff

Name:  Jordan Nenoff

Title:    Director

 

 

 

By:      /s/ Richard J. Wernli

Name:  Richard J. Wernli

Title:    Director

 
	 
	 	 
	                    

                    

                    

                    

       

	 	 

NATIXIS

 

 

By:      /s/ Simon Melchior

Name:  Simon Melchior

Title:    Associate Director

 

 

By:       /s/ Vincent Lauras

Name:  Vincent Lauras

Title:    Managing Director

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The undersigned acknowledges that its consent is not required, but nevertheless does
hereby consent to the foregoing Amendment. The undersigned hereby reaffirms its obligations under
its Non-Recourse Guaranty Agreement, Pledge Agreement, and all other documents executed by it in
favor of the Agent and/or the Lenders (collectively, the “Agreements”) and acknowledges and agrees
that the Agreements remain in full force and effect and the Agreements are hereby ratified and
confirmed.

	 	 	 
	                    

                    

                    

                    

       

	 	 

ALON PARAMOUNT HOLDINGS, INC.,

a Delaware corporation

 

 

By: /s/ Shai Even

Name: Shai Even

Title: Vice President and Chief Financial Officer

 

 
	 
	 	 
	                    

                    

                    

                    

       

	 	

 
	 
	 	 

3

The undersigned acknowledges that its consent is not required, but nevertheless does hereby
consent to the foregoing Amendment. The undersigned hereby reaffirms its obligations under its
Guaranty Agreement and all other documents executed by it in favor of the Agent and/or the Lenders
(collectively, the “Agreements”) and acknowledges and agrees that the Agreements remain in full
force and effect and the Agreements are hereby ratified and confirmed.

	 	 	 
	                             

                             

                             

	 	 

PARAMOUNT PETROLEUM CORPORATION OF

ARIZONA, INC.,

a Delaware corporation

 

 

By: /s/ Shai Even

Name: Shai Even

Title: Chief Financial Officer

 

 
	 
	 	 
	                             

                             

                             

	 	

 
	 
	 	 

4EX-10.1

EXHIBIT 10.1

SEPARATION AGREEMENT

This Separation Agreement (“Agreement”) is entered into by and between Max Re Capital Ltd.
(the “Company”) and Robert Cooney (“Executive”).

WHEREAS, the Company has employed Executive as its President and Chief Executive Officer and
Chairman of its Board of Directors pursuant to an Amended and Restated Employment Agreement, dated
as of August 1, 2004 (the “Amended Employment Agreement”); and

WHEREAS, Executive has decided to resign his position as Chief Executive Officer, President,
and Chairman of the Board of the Company for Good Reason in accordance with the terms of the
Amended Employment Agreement; and

WHEREAS, the Company desires to retain the services of Executive as a Consultant and Executive
desires to provide such services to the Company; and

WHEREAS, the parties now desire to enter into this Agreement to set forth the terms and
conditions of the termination of Executive’s position as Chief Executive Officer, President, and
Chairman of the Board of Directors of the Company and of the terms and conditions under which
Executives will provide consulting services to the Company;

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below, it is
hereby agreed as follows:

1. Executive has resigned as a director, officer, and representative of the Company and its
affiliates, including but not limited to his position as President, Chief Executive Officer, and
Chairman of the Board of Directors, effective October 29, 2006. Upon the execution of this
Agreement, Executive shall sign the letter attached as Schedule A documenting his resignation from
any and all positions he previously held. Executive also represents and warrants that all
pre-termination transactions involving the Company’s common shares and other securities during the
current fiscal year that are reportable under Section 16 of the Securities Exchange Act have been
reported on a Form 4 or Form 5, as applicable, or have been reported by Executive to the Company,
prior to Executive’s termination.

2. Executive shall continue as a non-employee Consultant to the Company from October 30, 2006
through December 31, 2006 (the Consulting Period). As a Consultant, Executive shall perform such
services as are reasonably requested of him by the Company and shall use his best efforts to assist
in the orderly transition of his former duties and responsibilities. While serving as a Consultant
during the Consulting Period, Executive shall receive a consulting fee at a rate of $58,333 per
month and the following additional items of benefit: (a) as long as Executive remains a resident of
Bermuda through the Consulting Period, he shall receive continued benefits under the health,
vision, and dental plans in which he participated up to the date of his resignation or an
individual replacement plan(s) purchased at the Company’s expense for Executive, his wife, and his
two children; (b) a car allowance of $1,000 per month; (c) a housing allowance of $10,000 per
month; and (d) reimbursement of country club dues up to a maximum of $833.33 per month through the
Consulting Period. Within ten (10) days of the effective date of this Agreement, Executive shall
be paid any accrued but unpaid amounts due to him under this Paragraph 2 for full months worked as
a Consultant since October 30, 2006. Within ten (10) days of the effective date of this Agreement,
Executive also shall receive an amount representing his accrued but unused vacation time for 2006
(if any) as determined by the Company.

3. In lieu of the payments and benefits described in the Amended Employment Agreement upon a
termination of employment, including, without limitation, Section 5.10(c) thereof, the parties have
agreed that in consideration of the benefits provided in this Agreement, Executive shall receive
the following payments and benefits. Accordingly, the severance pay provisions of the Amended
Employment Agreement, including, without limitation, Section 5.10(c), shall be null and void.

(a) Severance payments of $58,333 per month, minus applicable taxes and withholdings, payable
in accordance with the Company’s regular payroll schedule for the period January 1, 2007 through
June 30, 2008 (the “Severance Pay Period”); provided however that the Company shall deduct
a total of $200,000 from the payments under this Paragraph 3(a) in coequal installments over the
eighteen (18) month period in satisfaction of the fine imposed on Executive by the Company’s Audit
Committee on or about September 17, 2006.

(b) Executive also shall receive the following benefits throughout the Severance Pay Period:
(i) so long as Executive remains a resident of Bermuda through the Severance Pay Period, he shall
receive continued benefits under the health, vision, and dental plans in which he participated up
to the date of his resignation or through an individual replacement plan(s) purchased at the
Company’s expense for Executive, his wife, and his two children; (ii) a car allowance of $1,000 per
month; (iii) a housing allowance of $10,000 per month; and (iv) reimbursement of country club dues
capped at a maximum of $833.33 per month through the Severance Pay Period.

(c) In exchange for the additional covenants regarding non-competition and non-solicitation
granted by Executive to the Company as set forth in Paragraph 4, below, Executive shall receive an
additional monthly payment of $40,000, minus applicable taxes and withholdings, through the
Severance Pay Period. Executive agrees that he resigned from the Company of his own free will, and
that the terms of his various restrictive covenants, as set forth in Paragraph 4 below, are valid
and enforceable. Executive acknowledges that the Company is relying on his representations in this
Paragraph 3(c) in entering into this Agreement, and it shall have the right to recoup all amounts
and benefits (including, without limitation, the vesting of 100,000 of the Restricted Stock Awards)
provided to Executive under this Agreement, as well as obtaining injunctive relief as set forth in
Section 4.2 of the Amended Employment Agreement, should Executive breach any of the restrictive
covenants referenced in Paragraph 4 (or directly or indirectly challenge the lawfullness of any of
these covenants).

4. Executive acknowledges that as the Company’s President and Chief Executive Officer, he had
access to substantial Confidential Information, including but not limited to information regarding
the Company’s clients, customers, goals, strategies, pricing, and trade secrets. Executive further
acknowledges that should he become employed by or in any way affiliated with a competitor of the
Company, he inevitably would disclose the Company’s Confidential Information in the course of
providing services to such competitor. Therefore, and in light of the substantial compensation and
severance payments Executive is eligible to receive under this Agreement, Executive hereby
covenants as follows: All terms and covenants in Article IV of the Amended Employment Agreement
(including Sections 4.1(a), (b), (c), (d), and (e) and Section 4.2 thereof) shall continue in full
force and effect; provided however that Executive’s obligations to the Company under
Section 4.1(c) shall continue only until June 30, 2008. In addition, from the date of his
resignation through June 30, 2008, Executive shall not directly or indirectly (a) solicit, hire,
attempt to hire, retain, contract with, compensate, or work at the same business or venture with
any individual who (i) as of December 31, 2006, is an employee, officer, director, or consultant of
any of the Designated Entities (as defined in the Amended Employment Agreement) or (ii) has been an
employee, officer, director, or consultant of any of the Designated Entities at any time since
January 1, 2006; (b) solicit, interfere with, contract with, or endeavor to entice away from any of
the Designated Entities (i) any of the Designated Entities’ current clients or customers, (ii) any
persons or entities that were customers or clients of any of the Designated Entities at any time
since January 1, 2006, or (iii) any potential client or customer that any of the Designated
Entities were actively pursuing or contemplating actively pursuing during Executive’s employment;
or (c) compete with, or participate in any business or venture that competes with, any of the
Designated Entities, including but not limited to participating in any business or venture in the
insurance or reinsurance industry, any business or venture that underwrites insurance or
reinsurance, or any business or venture that focuses in whole or in part on risk transfer for
clients in the property & casualty or life & annuity insurance markets.

5. Equity Awards.

(a) Warrants. Nothing in this Agreement shall have any effect on the terms and
conditions of the Warrants the Company has issued to Executive to purchase the Company’s Common
Shares, and those Warrants shall continue to be governed under the terms and conditions of the
applicable Warrant Agreement.

(b) Stock Options. Nothing in this Agreement shall have any effect on the terms and
conditions of the Nonqualified Stock Options the Company has granted Executive pursuant to the
terms and conditions of the Company’s 2000 Stock Incentive Plan (the “Plan”). Such stock options
shall continue to be governed under the terms and conditions of the applicable stock option
agreement.

(c) Restricted Stock. Notwithstanding the terms and conditions of the Amended
Employment Agreement, the Restricted Stock Award Agreement, dated February 16, 2006, between the
Company and Executive; the Restricted Stock Award Agreement, dated February 7, 2005, between the
Company and Executive; the Restricted Stock Award Agreement, dated August 1, 2004, between the
Company and Executive; and the Restricted Stock Award Agreement, dated January 30, 2004, between
the Company and Executive (collectively, the “Restricted Stock Awards”), in final and complete
settlement of Executive’s rights under the Restricted Stock Awards, the parties agree that of the
295,000 shares of the Company’s common stock subject to restriction, 219,163 vested on October 29,
2006 and 75,837 were permanently forfeited on October 29, 2006, all as set forth in Schedule B.

(d) Schedule B. Schedule B hereto sets forth all of Executive’s outstanding equity
awards with the Company and his rights with respect thereto as of his termination of employment.

6. Any rights Executive may have to indemnification or advancement of expenses to which he is
otherwise entitled under applicable law, the Company’s Bye-Laws, or the Amended Employment
Agreement shall be unaffected by this Agreement. As of the date of this Agreement, the Company has
made no determination that Executive is not entitled to indemnification or advancement of expenses.

7. Following the Consulting Period set forth in Paragraph 2, above, and through the Severance
Pay Period, Executive agrees that he will make reasonable efforts to answer Company inquiries that
may arise regarding matters on which he may have knowledge or information. Company agrees that
Executive’s cooperation shall be subject to reasonable accommodations that will avoid or minimize
disruption of his personal or professional obligations.

8. In consideration of the mutual promises and covenants contained in this Agreement, and
after consultation with counsel:

(a) Executive for himself and each of his respective heirs, representatives, agents,
successors, and assigns, irrevocably and unconditionally releases and forever discharges the
Company and its respective current and former officers, directors, shareholders, employees,
representatives, heirs, attorneys, and agents, as well as its respective predecessors, parent
companies, subsidiaries, affiliates, divisions, successors, and assigns and its respective current
and former officers, directors, shareholders, employees, representatives, attorneys, and agents,
from any and all causes of action, claims, actions, rights, judgments, obligations, damages,
demands, accountings, or liabilities of whatever kind or character, which Executive may have
against them, or any of them, by reason of or arising out of, touching upon, or concerning
Executive’s employment and/or directorship with the Company or his separation from the Company, or
any statutory claims, or any and all other matters of whatever kind, nature, or description,
whether known or unknown. Executive acknowledges that this release of claims specifically
includes, but is not limited to, any and all claims for fraud; breach of contract; breach of the
implied covenant of good faith and fair dealing; inducement of breach; interference with
contractual rights; wrongful or unlawful discharge or demotion; violation of public policy;
invasion of privacy; intentional or negligent infliction of emotional distress; intentional or
negligent misrepresentation; conspiracy; failure to pay wages, benefits, vacation pay, expenses,
severance pay, attorneys’ fees, or other compensation of any sort; defamation; unlawful effort to
prevent employment; discrimination on the basis of race, color, sex, sexual orientation, national
origin, ancestry, religion, age, disability, handicap, medical condition, or marital status; any
claim under Title VII of the Civil Rights Act of 1964 (Title VII, as amended), 42 U.S.C. § 2000, et
seq., the Civil Rights Act of 1991, the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §
621, et seq., the Older Workers Benefit Protection Act (“OWBPA”), 29 U.S.C. § 626(f), the Equal Pay
Act, the Family and Medical Leave Act (“FMLA”), the Fair Labor Standards Act (“FLSA”), the
Americans with Disabilities Act (“ADA”), the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”), the Occupational Safety and Health Act (“OSHA”) or any other health and/or safety laws,
statutes, or regulations, the Employee Retirement Income Security Act of 1974 (“ERISA”), the
Internal Revenue Code of 1986, as amended; the Bermuda Employment Act 2000; the Bermuda Human
Rights Act 1981; and any and all other foreign, federal, state, or local laws, common law, or case
law, including but not limited to all statues, regulations, common law, and other laws in place in
Bermuda or the state of New York.

(b) Executive shall have up to twenty-one (21) days from the date of his receipt of this
Agreement to consider its terms and conditions. If Executive does not sign and return this
Agreement within twenty-one (21) days, the Company’s offer to enter into this Agreement shall be
withdrawn and the Agreement shall be null and void. This Agreement shall not become effective
until the eighth (8th) day following Executive’s signing of the Agreement. Executive
may revoke this Agreement by delivering written notice of revocation before the end of the seventh
(7th) day following his signing of this Agreement (the “Revocation Period”) to: Sarene
Bourdages, General Counsel, Max Re Capital Ltd. If the last day of the Revocation Period falls on
a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next
business day thereafter. In the event that Executive revokes this Agreement prior to the eighth
(8th) day after signing it, this Agreement and the promises contained herein (including,
but not limited to the obligation of the Company to provide the severance payments, benefits and
other things of value set forth in this Agreement or the Amended Employment Agreement) shall
automatically be null and void.

(c) Executive agrees never to file a lawsuit of any kind with any court or arbitrator against
the Company or any Company Released Parties, asserting any claims that are released in this
Agreement. Executive represents and agrees that, prior to signing this Agreement, he has not filed
or pursued any complaints, charges, or lawsuits of any kind with any court, governmental or
administrative agency, or arbitrator against the Company, or any other person or entity released
under Paragraph 8(a) above, asserting any claims whatsoever.

(d) Executive represents and warrants that he has not assigned or subrogated any of his
rights, claims, and/or causes of action, including any claims referenced in this Agreement, or
authorized any other person or entity to assert such claim or claims on his behalf, and he agrees
to indemnify and hold harmless the Company against any assignment of said rights, claims, and/or
causes of action.

(e) If Executive should breach any of his obligations under this Agreement or the terms of
Section 4.1 of the Amended Employment Agreement, the Company shall have no further obligation to
make the payments and benefits described in this Agreement or the Amended Employment Agreement, and
Executive shall return all amounts paid or provided to him thereunder (including, without
limitation, the fair market value of 100,000 shares of the Restricted Stock Awards that vested in
accordance herewith).

9. Any disputes arising under this Agreement shall be subject to the same terms set forth in
the Amended Employment Agreement.

10. No failure by either party hereto at any time to give notice of any breach by the other
party of, or to require compliance with, any condition or provision of this Agreement shall (i) be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time or (ii) preclude insistence upon strict compliance in the future.

11. If a court of competent jurisdiction determines that any provision of this Agreement is
invalid or unenforceable, then the invalidity or unenforceability of that provision shall not
affect the validity or enforceability of any other provision of this Agreement, and all other
provisions shall remain in full force and effect and such invalid or unenforceable provision shall
be reformulated by such court to preserve the intent of the parties hereto.

12. All of the terms and provisions contained in this Agreement shall inure to the benefit of
and shall be binding upon the parties hereto and their respective heirs, legal representatives,
successors, and assigns.

13. This Agreement may be executed in counterparts, each of which shall be deemed an original.

14. This Agreement shall not in any way be construed as an admission that the Company,
Executive, or any other individual or entity has any liability to or acted wrongfully in any way
with respect to Executive, the Company, or any other person.

15. The Company represents that it has the authority to enter into this Agreement and has
obtained all necessary corporate approvals necessary to do so. Executive represents and warrants
that he has been advised in writing to consult with an attorney before signing this Agreement; that
he has had an opportunity to be represented by independent legal counsel of his own choosing
throughout all of the negotiations preceding the execution of this Agreement; that he has executed
this Agreement after the opportunity for consultation with his independent legal counsel; that he
is of sound mind and body, competent to enter into this Agreement, and is fully capable of
understanding the terms and conditions of this Agreement; that he has carefully read this Agreement
in its entirety; that he has had the opportunity to have the provisions of the Agreement explained
to him by his own counsel, who has answered to his satisfaction any questions he has asked with
regard to the meaning of any of the provisions of the Agreement; that he fully understands the
terms and significance of all provisions of this Agreement; that he voluntarily assents to all the
terms and conditions contained in this Agreement; and that he is signing the Agreement of his own
force and will, without any coercion or duress.

16. This Agreement shall be deemed to satisfy all Notice requirements under the Employment
Agreement, including but not limited to those regarding the termination of Executive’s employment,
and no additional notices shall be required to or by either the Company or Executive.

17. Nothing in this Agreement shall have any effect on the terms and conditions of any loans
previously made by the Company to Executive which shall continue to be governed under the terms and
conditions of the applicable loan agreements, including, without limitation, accelerated payment
upon a termination of employment.

18. Except as otherwise specifically provided herein, this Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof, contains all the covenants,
promises, representations, warranties, and agreements between the parties with respect to
Executive’s resignation from the Company and all positions therewith, and supersedes all prior
employment or severance or other agreements between Executive and the Company, whether written or
oral, or any of its predecessors or affiliates, including, but not limited to, the Amended
Employment Agreement. Executive acknowledges and agrees that the consideration provided for herein
is adequate consideration for Executive waiving his rights under any other agreement, whether
written or oral, between Executive and the Company. Except as otherwise provided herein, Executive
acknowledges that no representation, inducement, promise, or agreement, oral or written, has been
made by either party, or by anyone acting on behalf of either party, which is not embodied herein,
and that no agreement, statement, or promise relating to Executive’s resignation from the Company
that is not contained in this Agreement shall be valid or binding. Except as specifically provided
herein, Executive acknowledges and agrees that he is not entitled to any other payments or benefits
from the Company upon his termination of employment (or in conjunction with his termination of
service as a director). Any modification of this Agreement will be effective only if it is in
writing and signed by both parties.

19. This Agreement is entered into under, and shall be governed for all purposes by, the laws
of the State of New York without giving effect to any choice of law principles.

WHEREFORE, the parties, by their signatures below, evidence their agreement to the provisions
stated above:

MAX RE CAPITAL LTD.

Dated:   By:      

Signature:      

Title:      

I HAVE READ AND UNDERSTOOD THIS AGREEMENT AND AM IN AGREEMENT WITH ITS TERMS.

Dated:        

Robert Cooney

1

SCHEDULE A

October 29, 2006

Max Re Ltd.

Max Re House

2 Front Street

Hamilton HM 11

Bermuda

Attn: Sarene A. Bourdages

Senior Vice President & General Counsel

To Whom It May Concern:

Effective as of October 29, 2006, I hereby tender my resignations from any and all positions I hold
as a director, officer, employee, agent, or representative of Max Re Capital Ltd. and/or its
subsidiaries, including but not limited to the following:

President of Max Re Capital Ltd.

Chief Executive Officer of Max Re Capital Ltd.

Chairman of Max Re Capital Ltd.

President of Max Re Ltd.

Chief Executive Officer of Max Re Ltd.

Chairman of Max Re Ltd.

Director of Max Re Capital Ltd. (including but not limited to my positions on the Executive
Committee and the Finance and Investment Committee of the Board of Directors of Max Re Capital
Ltd.)

Director of Max Re Ltd.

Director of Max Europe Holdings

Director of Max Insurance Europe

Director of Max Re Diversified

Director of Grand Central Re Limited (Grand Central Re)

Director of Re Managers

Director of Max Re Europe

Sincerely,

Robert J. Cooney, Esq.

2

SCHEDULE B

1. Warrants.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Post-Termination
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Exercise Period
	 	 	 	 	 	 	 	 	 	 	Shares Subject to	 	Number Still	 	 	 	 	 	(w/o cause or for
	Grant Date	 	Grant Number	 	Exercise Price ($)	 	Award	 	Outstanding	 	Vested Status	 	good reason)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	December 22, 1999
	 	 	 	 	 	 	15	 	 	 	397,227	 	 	 	397,227	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	March 31, 2000
	 	 	W 21A	 	 	 	15	 	 	 	228,109	 	 	 	228,109	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	June 29, 2000
	 	 	W 24	 	 	 	15	 	 	 	864	 	 	 	864	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	January 1, 2001
	 	 	W 31	 	 	 	16	 	 	 	8,081	 	 	 	8,081	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	May 22, 2001
	 	 	W 38	 	 	 	18	 	 	 	15,000	 	 	 	15,000	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6-months from
	August 17, 2001
	 	 	W 45	 	 	 	16	 	 	 	233,000	 	 	 	233,000	 	 	Vested
	 	termination

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

2. Stock Options.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Shares Subject to	 	Number Still	 	 	 	 	 	 	 	Post-Termination
	Grant Date	 	Option	 	Outstanding	 	Exercise Price ($)	 	Vested Status	 	Exercise Period
	January 1, 2001

	 	 	90,000	 	 	 	90,000	 	 	 	16	 	 	Vested
	 	90-days from termination
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	January 1, 2002

	 	 	160,000	 	 	 	160,000	 	 	 	15.66	 	 	Vested
	 	90-days from termination
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

3. Restricted Stock.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Shares Subject to	 	Vesting Date set	 	Amount Vested on	 	Amount Forfeited on
	Grant Date	 	Awards	 	forth in Agreement	 	October 29, 2006	 	October 29, 2006
	 
	 	 	 	 	 	100% on January 30,	 	 	 	 	 	 	 	 
	January 30, 2004
	 	 	84,000	 	 	 	2007	 	 	 	77,020	 	 	 	6,980	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	August 1, 2004
	 	 	100,000	 	 	Performance Vesting
	 	 	100,000	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	100% on February 7,	 	 	 	 	 	 	 	 
	February 7, 2005
	 	 	48,000	 	 	 	2008	 	 	 	27,529	 	 	 	20,471	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	100% on February	 	 	 	 	 	 	 	 
	February 16, 2006
	 	 	63,000	 	 	 	16, 2009	 	 	 	14,614	 	 	 	48,386	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	295,000	 	 	 	 	 	 	 	219,163	 	 	 	75,837	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

3

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