Document:

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Exhibit
10.3

PLEDGE AGREEMENT

PLEDGE AGREEMENT, dated as
of 17 JANUARY 2006, (this
‘‘Agreement’’) made among
Aspen Insurance Ltd, a company organized and existing under the laws of
Bermuda (the ‘‘Pledgor’’),
and Citibank, N.A. (the
‘‘Pledgee’’).

PRELIMINARY
STATEMENTS.

			
		(1) 	The Pledgor and the
Pledgee have entered into a master agreement (as form time to time
amended, the ‘‘Master Agreement’’) pursuant
to which the Pledgee may, from time to time in its sole discretion,
issue for the account of the Pledgor letters of credit or similar or
equivalent instruments (each a ‘‘Credit’’
and, collectively, the
‘‘Credits’’).

			
		(2) 	The
Pledgor has agreed to collateralize its obligations to the Pledgee that
result from time to time under the Master Agreement and in respect of
the Credits issued thereunder, whether now existing or from time to
time hereafter incurred or arising, as such obligations are more fully
defined in Section 3 of this Agreement as the Secured
Obligations.

			
		(3) 	The Pledgor and the
Pledgee desire to execute and deliver this Agreement for the purpose of
securing the Secured Obligations (as such term is defined in Section 3
below) and subjecting the property hereinafter described to the Lien of
this Agreement as security for the performance of the Secured
Obligations.

			
		(4) 	The Pledgor has
opened account number 465876 (the
‘‘Account’’) with Bank of New York, Bank at
its office at 101 Barclay Street, 8W, New York, New York 10286
U.S.A..

NOW, THEREFORE, in consideration of the
premises and in order to induce the Pledgee to enter into transactions
with and to provide services to the Pledgor and its subsidiaries
pursuant to separate agreements or arrangements between such persons
and the Pledgee, the parties hereto hereby agree as
follows:

Section 1.    Defined
Terms.    Except as otherwise expressly provided herein,
capitalized terms used herein shall have the meaning assigned to such
terms in Appendix A.

Section 2.    Grant of
Security.    Subject to and in accordance with the provisions of
this Agreement, the Pledgor hereby assigns, pledges and grants to the
Pledgee a first priority security interest in and a Lien on all of the
Pledgor’s right, title and interest, whether now owned or
hereafter acquired, in all of the following (collectively, the
‘‘Collateral’’):

(i)    the
Account;

(ii)    the Securities and any Instruments
or other Financial Assets credited to the Account or otherwise acquired
by the Pledgee in any manner and under its control as Collateral (the
‘‘Pledged Securities’’)
including, without limitation Securities of the type and in the
aggregate amounts specified in Schedule I hereto and any Securities
Account and Security Entitlement in respect of the Account, the Pledged
Securities or any of them;

(iii)    all additional
Investment Property (including without limitation) Securities, Security
Entitlements, Financial Assets, or other property and all funds, cash
or cash equivalents (together with any applicable Account or Securities
Account) from time to time (A) received, receivable or otherwise
distributed in respect of or in exchange or substitution for any other
Collateral (all such funds, cash or cash equivalents to be Financial
Assets for purpose of this Agreement) or (B) otherwise acquired by the
Pledgee in any manner and delivered to the Pledgee or under the control
of the Pledgee as Collateral; and

(iv)    All
proceeds (including, without limitation, cash proceeds) of any or all
of the foregoing, including without limitation, proceeds that
constitute property of the types described in clauses (i), (ii) and
(iii) above.

Section 3.    Security of
Obligations.    This Agreement secures the payment of all
obligations of the Pledgor now or hereafter existing under the
Insurance Letters of Credit Master Agreement 

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(including all contingent obligations with
respect to letters of credit issued by the Pledgee for the
Pledgor’s account) and this Agreement, whether for principal,
interest, fees, expenses or otherwise and the payment of any and all
expenses (including reasonable counsel fees and expenses) incurred by
the Pledgee in enforcing any rights under this Agreement (all such
obligations being the ‘‘Secured
Obligations’’).

Section
4.    Delivery of Security
Collateral.

			
		(A) 	On or prior to
the date hereof, the Pledgor shall transfer or credit, or cause to be
transferred or credited, all of the Pledged Securities to the Pledgee
or to an Account or a Securities Account under arrangements acceptable
to the Pledgee in its sole discretion. Pledgor shall deliver all other
Collateral to the Pledgee or to a Securities Intermediary subject to
the control of the Pledgee under arrangements acceptable to the Pledgee
in its sole discretion. Upon the occurrence and during the continuance
of an Event Default (as hereafter defined), the Pledgee shall have the
right, at any time it reasonably determines is necessary or desirable
to enable the Pledgee to better perfect or protect the security
interests granted hereunder, upon notice to the Pledgor, to transfer to
or to register in the name of the Pledgee or any of its nominees any or
all of the Collateral.

			
		(B) 	At any
time and upon thirty (30) days notice, the Pledgee may require the
Pledgor to transfer the Collateral from the Account to an account at
Citibank, N.A. (London, England branch)
(‘‘CBNA-UK’’) and to execute a replacement
deposit agreement (in substantially the customary form used by CBNA-UK,
a copy of which deposit agreement has been provided to Pledgor) in
substitution for this Agreement.

Section 5.    Use
of Proceeds.    Proceeds that are received in respect of any
Collateral shall be held as cash held as Collateral as provided in
Section 2 of this Agreement.

Section
6.    Representations and Warranties.    The Pledgor
represents and warrants as follows:

(a)    The Pledgor
is a corporation duly organized and, validly existing under the laws of
its incorporation and has all requisite corporate power and authority
(including, without limitation, all governmental licenses, permits and
other approvals except where such failure would not have a material
adverse effect on the Pledgor’s business), to own or lease and
operate its properties and to carry on its business as now conducted
and as proposed to be conducted. All of the outstanding capital stock
of the Pledgor has been validly issued, is fully paid and
non-assessable.

(b)    The execution, delivery and
performance by the Pledgor of this Agreement, and the consummation of
the transactions contemplated hereby, are within the Pledgor’s
corporate powers and have been duly authorized by all necessary
corporate action.

(c)    The execution, delivery and
performance by the Pledgor of this Agreement and the consummation of
the transactions contemplated hereby, do not and will not (i) violate
any provision of law, rule or regulation applicable to the Pledgor;
(ii) conflict with the charter or bylaws or substantively similar
constitutive documents of the Pledgor; or (iii) conflict with or result
in a breach of, or constitute a default under, or result in the
creation or imposition of any Lien upon any of the property or assets
of the Pledgor or any of its subsidiaries, under any indenture, loan
agreement, mortgage, deed of trust or other instrument or agreement to
which the Pledgor or any of its subsidiaries may be or become a party
or by which it may be or become bound or to which the property or
assets of the Pledgor of any of its subsidiaries may be or become
subject.

(d)    No consent of any other Person and no
authorization, approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body or other third
party is required either (i) for the grant by the Pledgor of the
assignment and security interest granted hereby, for the pledge by the
Pledgor of the Collateral pursuant hereto or for the execution,
delivery or performance of this Agreement by the Pledgor, (ii) for the
perfection or maintenance of the pledge, assignment and security
interest created hereby (including the first priority nature of such
pledge, assignment or security interest) or (iii) for the exercise by
the Pledgee of its rights 

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provided for in this Agreement or the remedies
in respect of the Collateral pursuant to this Agreement, except as may
be required in connection with the disposition of any portion of the
Collateral by laws affecting the offering and sale of securities
generally or as may be applicable to the
Pledgee.

(e)    This Agreement has been duly executed
and delivered by the Pledgor. This Agreement constitutes, or when
executed and delivered will constitute, the legal, valid and binding
obligation of the Pledgor enforceable against the Pledgor in accordance
with its terms, subject as to enforceability to applicable bankruptcy,
insolvency, and similar laws affecting creditors’ rights
generally.

(f)    The Pledgor is the legal and
beneficial owner of the Collateral and Pledgor has and shall at all
times have rights in, and good and valid title to, the Collateral, free
and clear of all Liens and ‘‘adverse
claims’’ (as such term is defined in Section 8-102(a)(1)
of the NYUCC).

(g)    To the best of the
Pledgor’s knowledge, no default has occurred under or with
respect to any Collateral as of the date
hereof.

(h)    (i) This agreement and the pledge and
assignment of the Collateral pursuant hereto create a valid security in
the Collateral, securing the payment of the Secured Obligations, (ii)
this Agreement and the related Account Control Agreement, dated
                    , by and among the Pledgor, the Pledgee
and Bank of New York are sufficient to perfect such security interest,
and (iii) assuming the Pledgee has no notice of any Liens or
‘‘adverse claims’’ (as such terms is
defined in Section 8-102(a)(1) of the NYUCC) with respect to the
collateral, the Pledgee will take the Collateral free and clear of all
Lien and adverse claims.

(i)    The Pledgor is
subject to civil and commercial law with respect to its obligations
hereunder, and the execution, delivery and performance by the Pledgor
of its obligations under this Agreement constitute private and
commercial acts rather than public or governmental acts. Neither the
Pledgor or any of its properties has any immunity from jurisdiction of
any court or from set-off or any legal process (whether through service
or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws
Bermuda.

			
		(j) 	(A) This Agreement is
in proper legal form under all applicable laws of Bermuda for the
enforcement thereof against the Pledgor in accordance with its terms.
To ensure the legality, validity, enforceability or admissibility into
evidence of this Agreement it is not necessary that this Agreement or
any other document be filed or recorded with any governmental authority
of Bermuda or that any stamp or similar tax be paid on or in respect of
this Agreement or any other document delivered pursuant
hereto.

(B) It is not necessary (X) in order for the
Pledgee to enforce any rights or remedies under this Agreement or (Y)
solely by reason of the execution delivery and performance of this
Agreement by the Pledgee, that the Pledgee be licensed or qualified
with Bermudian governmental authority or be entitled to carry on
business in Bermuda.

(k)    The Pledgor shall cause
Securities of the type specified on Schedule I to be pledged as
Collateral so that at all times the fair market value of such
Securities shall equal or exceed an amount equal to of the aggregate
amount of the then outstanding Credits; and without limiting the
foregoing, if at any time the Pledgor is not in compliance with the
requirements of this subsection (k), the Pledgor shall forthwith cause
additional Securities of the type specified on Schedule I to be held as
Collateral pursuant to Section 2 to the extent required to cause the
Pledgor to be in compliance with this subsection
(k).

Section 7.    Further
Assurances.

(a)    The Pledgor agrees that from
time to time, at the expense of the Pledgor, the Pledgor will promptly
execute and deliver all further Instruments and documents, and take all
further action, that may be necessary or desirable, or that the Pledgee
may reasonably request, in order to continue, perfect and protect any
pledge, assignment or security interest granted or purported to be
granted hereby or to enable the Pledgee to exercise and enforce its
rights and remedies 

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hereunder with respect to any Collateral.
Without limiting the generality of the foregoing, the Pledgor will
execute and file such financing or continuation statements, or
amendments thereto, and such other Instruments or notices, as may be
necessary or desirable, or as the Pledgee may request, in order to
perfect and preserve the pledge, assignment and security interest
granted or purported to be granted hereby.

(b)    The
Pledgor hereby authorizes the Pledgee to file one or more financing or
continuation statements, and amendments thereto, relating to all or any
part of the Collateral without the signature of the Pledgor where
permitted by law. A photocopy or other reproduction of this Agreement
or any financing statement covering the Collateral or any part thereof
shall be sufficient as a financing statement where permitted by
law.

Section
8.    Distributions.

(a)    Other than
upon and during the continuance of an Event of Default (as hereinafter
defined), the Pledgor shall be entitled to receive and retain any and
all distributions paid in respect of the Pledged Securities; provided,
however, that any and all

(i)    distributions paid or
payable other than in cash in respect of, and Instruments, Financial
Assets and other property received, receivable or otherwise distributed
in respect of, or in exchange for, any Collateral
and

(ii)    cash paid, payable or otherwise
distributed in respect of principal of, or in redemption of, or in
exchange for, any Collateral,

shall be, and shall be
forthwith delivered to the Pledgee to hold as Collateral subject to the
Pledgor’s right to withdraw all Collateral in excess of the
Required Account Value as Provided in Section 3 of the Account Control
Agreement and shall, if received by the Pledgor, be received in trust
for the benefit of the Pledgee, be segregated from the other property
or funds of the Pledgor and be forthwith delivered to the Pledgee as
Collateral in the same form as so received (with any necessary
endorsement) to the extent the Collateral is less than the Required
Account Value.

(b)    For the purpose of this section
8 and Sections 4 and 14 hereof, the terms ‘‘Events of
Default’’ shall mean a failure of the Pledgor to perform
in any material respect any of its obligations under the Master
Agreement or this Agreement, which failure shall continue unremedied
for five (5) business days after written notice thereof shall have been
given by the Pledgee to the Pledgor.

(c)    The
Pledgee shall execute and deliver (or cause to be executed and
delivered) to the Pledgor all such proxies and other instruments as the
Pledgor may reasonably request for the purpose of enabling the Pledgor
to receive the interest payments that it is authorized to receive and
retain pursuant to paragraph (a) above.

Section
9.    Transfer and Other Liens.    The Pledgor shall not
(i) sell, assign or otherwise dispose of, or grant any option with
respect to, any of the Collateral, or (ii) create or suffer to exist
any Lien upon or with respect to any of the Collateral, including any
right to give any Entitlement Order with respect to the Collateral,
except for the pledge, assignment and security interest created by this
Agreement.

Section 10.    Pledgee Appointed
Attorney-in-Fact.    The Pledgor hereby irrevocably appoints the
Pledgee the Pledgor’s attorney-in-fact, with full authority upon
failure to perform any of the obligations under the Master Agreement or
this Agreement in the place and stead of the Pledgor and in the name of
the Pledgor or otherwise, from time to time to take any action and to
execute any instrument that the Pledgee may deem necessary or advisable
to accomplish the purposes of this Agreement.

Section
11.    Pledgee May Perform.    If the Pledgor fails to
perform any agreement contained herein, after receipt of a written
request from the Pledgee to do so, the Pledgee may (but shall have no
obligation to) itself perform, or cause performance of, such agreement,
and the reasonable expenses of the Pledgee incurred in connection
therewith shall be payable by the Pledgor under Section 15(b)
hereof.

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Section 12.    The
Pledgee’s Duties.    The powers conferred on the Pledgee
hereunder are solely to protect its interest in the Collateral and
shall not impose any duty upon it to exercise any such powers. Except
for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Pledgee
shall have no duty as to any Collateral, as to ascertaining or taking
action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Collateral, whether or not the
Pledgee has or is deemed to have knowledge of such matters, or as to
the taking of any necessary steps to preserve rights against any
parties or any other rights pertaining to any Collateral. The Pledgee
shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral in its possession if such Collateral is
accorded treatment substantially equal to that which the Pledgee
accords its own property.

Section 13.    Security
Interest Absolute.    The obligations of the Pledgor under this
Agreement are independent of the Secured Obligations and any agreement
with respect to the Secured Obligations, and a separate action or
actions may be brought and prosecuted against the Pledgor to enforce
this Agreement, irrespective of whether any action is brought against
the Pledgor or whether the Pledgor is joined in any such action or
actions. All rights of the Pledgee and the pledge, assignment and
security interest hereunder, and all obligations of the Pledgor
hereunder, shall be absolute and unconditional, irrespective
of:

(a)    any lack of validity or enforceability of
the Master Agreement or any other agreement or instrument relating
thereto;

(b)    any change in the time, manner or
place of payment of, or in any other term of, all or any of Secured
Obligations or any other amendment or waiver of or any consent to any
departure from this Agreement or the Master Agreement, including,
without limitation, any increase in the Secured
Obligations;

(c)    any taking, exchange, release or
non-perfection of any other collateral, or any taking, release or
amendment or waiver of or consent to departure from any guaranty for
all or any of the Secured Obligations;

(d)    any
manner of application of the Collateral, or proceeds thereof, to all or
any of the Secured Obligations, or any manner of sale or other
disposition of any Collateral for all or any of the Secured Obligations
or any other assets of the Pledgor or any of its
subsidiaries;

(e)    any change, restructuring or
termination of the corporate structure or existence of the Pledgor or
any of its subsidiaries; or

(f)    any other
circumstance that might otherwise constitute a defense available to, or
a discharge of, the Pledgor or a third party grantor of a security
interest.

Section 14.    Remedies.    If an
Event of Default shall occur and be
continuing:

(a)    The Pledgee may exercise in respect
of the Collateral, in addition to other rights and remedies provided
for herein or otherwise available to it, all the rights and remedies of
a secured party upon default under the NYUCC and also may without
notice except as specified below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the
Pledgee’s offices or elsewhere, for cash, on credit or for
future delivery, and upon such other terms as the Pledgee may deem
commercially reasonable. The Pledgor agrees that, to the extent notice
of sale shall be required by law, at least ten days’ notice to
the Pledgor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable
notification. The Pledgee shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Pledgee
may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was
so adjourned.

(b)    All cash proceeds received by the
Pledgee in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral may, in the
discretion of the Pledgee, be held by the Pledgee as collateral for,
and/or then or at any time thereafter applied (after payment

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of any amounts payable to the Pledgee pursuant
to Section 15) in whole or in part by the Pledgee against, all or any
part of the Secured Obligations in such order as the Pledgee shall
elect. Any surplus of such cash or cash proceeds held by the Pledgee
and remaining after payment in full of all the Secured Obligations
shall be paid over to the Pledgor or to whomsoever may be lawfully
entitled to receive such surplus.

(c)    The Pledgee
may, without notice to the Pledgor except as required by law and at any
time or from time to time, charge, set-off and otherwise apply all or
any part of the Secured Obligations against the Collateral or any part
thereof.

Section 15.    Indemnity and
Expenses.

(a)    The Pledgor agrees to
indemnify the Pledgee and their affiliates and their officers,
directors, employees, agents, attorneys and advisors from and against
any and all claims, damages, losses and liabilities growing out of or
resulting from this Agreement (including, without limitation,
enforcement of this Agreement), except claims, damages, losses or
liabilities resulting from the Pledgee’s gross negligence or
willful misconduct.

(b)    The Pledgor will upon
demand pay to the Pledgee the amount of any and all reasonable
expenses, including the reasonable fees and expenses of its counsel and
of any experts and agents, that the Pledgee may incur in connection
with (i) the administration of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from or
other realization upon, any of the Collateral, (iii) the exercise or
enforcement (whether through negotiations, legal proceedings or
otherwise) of any of the rights of the Pledgee hereunder or
(iv) the failure by the Pledgor to perform or observe any of
the provisions hereof.

Section 16.    Amendments;
Waivers; Etc.    No amendment or waiver of any provision of this
Agreement, and no consent to any departure by the Pledgor herefor,
shall in any event be effective unless the same shall be in writing and
signed by the Pledgee, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose
for which given. No failure on the part of the Pledgee to exercise, and
no delay in exercising any right hereunder, shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any
other right.

Section 17.    Addresses for
Notices.    All notices and other communications provided for
hereunder shall be in writing (including telecopier, telegraphic, telex
or cable communication) and, mailed telegraphed, telecopied, telexed,
cabled or delivered if to the Pledgor at Aspen Reinsurance Ltd,
Victoria Hall, 11 Victoria Street, Hamilton Bermuda, as to either
party, at such other address as shall be designated by such party in a
written notice to each other party complying as to delivery with the
terms of this Section 17. All such notices and communications shall,
when mailed, telecopied, telegraphed or telexed, be effective five
Business Days after deposit in the mail, or when telecopied, delivered
to the telegraph company or confirmed by telex answerback,
respectively, except that notices and communications to the Pledgee
shall not be effective until received by the Pledgee. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of a manually
executed counterpart thereof.

Section
18.    Continuing Security Interest: Assignments.    This
Agreement shall create a continuing security interest in the Collateral
and shall (a) remain in full force and effect until the payment in full
in cash of the Secured Obligations, (b) be binding upon the Pledgor and
the Pledgee and their respective successors and assigns and (c) inure,
together with the rights and remedies of the Pledgee and its respective
successors, transferees and assigns. Without limiting the generality of
the foregoing clause (c), the Pledgee may assign or otherwise transfer
to any other Person all or any portion of its rights and obligations
under this Agreement to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof
granted to the Pledgee herein or otherwise. The Pledgor will, at its
own expense, make, execute, endorse, acknowledge, file and/or deliver
to the Pledgee such confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates,
reports and other assurances or instruments and take 

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such further steps related to the Collateral
and other property or rights covered by the security interest hereby
granted, which the Pledgee deems reasonably advisable to perfect,
preserve or protect its security interest in the Collateral, including
any actions which may be required or advisable as a result of any
amendment or supplement to applicable laws, including the
NYUCC.

Section 19.    Release and
Termination.    Upon the later of the payment in full in cash of
the Secured Obligations or any termination as provided in Master
Agreement, the pledge, assignment and security interest granted hereby
shall terminate and all rights to be Collateral shall revert to the
Pledgor. Upon any such termination, the Pledgee will, at the
Pledgor’s expense execute and deliver to the Pledgor such
documents as the Pledgor shall reasonably request to evidence such
termination.

SECTION 20.    GOVERNING
LAW; TERMS.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE
EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST
HEREUNDER IN RESPECT OF ANY PARTICULAR COLLATERAL IS MANDATORILY
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW
YORK, IN WHICH CASE THE LAWS OF SUCH OTHER JURISDICTION SHALL GOVERN
SUCH MATTERS.

Section 21.    Jurisdiction,
Venue.

(a)    The Pledgor hereby irrevocably and
unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State or Federal court (to
the extent such court has subject matter jurisdiction) sitting in New
York City and any appellate court from any thereof in any action or
proceeding arising out of or relating to this Agreement or for the
recognition and enforcement of any judgment, and the Pledgor hereby
irrevocably and unconditionally agrees that all claims in respect of
such action or proceeding may be heard and determined in such New York
State court or in such Federal court. The Pledgor hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. The Pledgor hereto irrevocably and
unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection that it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any New York State or federal court. The
Pledgor hereby irrevocably waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court. The Pledgor
irrevocably consents to the service of any and all process in any such
action or proceeding by the mailing of copies of such process to such
Pledgor at its address specified in Section 17. The Pledgor agrees that
a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by applicable
law.

(b)    Nothing in this Section 21 shall affect
the right of the Pledgee to serve legal process in any other manner
permitted by applicable law or affect any right which the Pledge would
otherwise have to bring any action or proceeding against the Pledgor or
its property in the courts of any other
jurisdiction.

(c)    To the extent that the Pledgor
has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, execution
or otherwise) with respect to itself or its property, the Pledgor to
the extent permitted by law hereby irrevocably waives such immunity in
respect of its obligations under this Agreement and, without limiting
the generality of the foregoing, agrees that the waives set forth in
this subsection (c) shall have the fullest scope permitted under the
United States Foreign Sovereign Immunities Act of 1976, as amended, and
are intended to be irrevocable for purposes of such
Act.

SECTION 22.    WAIVER OF JURY
TRIAL.    EACH OF THE PLEDGOR AND THE PLEDGEE HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, 

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TORT OR OTHERWISE) ARISING OUT OF OR RELATING
TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS
OF THE PLEDGEE IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT HEREOF.

Section 23.    Execution
in Counterparts.    This Agreement may be executed in any number
of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the
same agreement. Delivery of an executed counterpart of a signature page
to this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

Section
24.    Severability.    If any term or provision of this
Agreement is or shall become illegal, invalid or unenforceable in any
jurisdiction, all other terms and provisions of this Agreement shall
remain legal, valid and enforceable in such jurisdiction and such
illegal, invalid or unenforceable provision shall be legal, valid and
enforceable in any other jurisdiction.

Section
26.    Termination of Prior Agreement.    The parties
agree that any prior pledge agreement with respect to the Collateral is
terminated as of the effective date of this
Agreement.

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above
written.

Aspen Insurance
Ltd

CITIBANK,
N.A.

Table of Contents

SCHEDULE
1

Securities or Other Assets Acceptable as
Financial Assets:

Securities issued by the US Government
or its agencies (whose debt obligations are fully and explicitly
guaranteed as to the timely payment of principal and interest by the
full faith and credit of the US Government) or the Central government
of an OECD (Organisation for Economic Co-operation and Development)
country, in each case rated AA or AA equivalent or
better.

The initial Required Value is:
USD

Table of Contents
ANNEX
A

CERTAIN DEFINED
TERMS

Capitalized terms used herein shall have
the respective meanings ascribed to them
below:

‘‘Collateral’’
has the meaning specified therefore in Section 2
hereof.

‘‘Entitlement
Holder’’ means a Person that (i) is an
‘‘entitlement holder’’ as defined in
Section 8-102(a)(7) of the NYUCC (except in respect of a Book-entry
Security); and (ii) in respect of any book-entry Security, is an
‘‘entitlement holder’’ as defined in 31
C.F.R. §357.2 (or, as applicable to such book-entry Security, the
corresponding Federal Book-Entry Regulations governing such book-entry
Security) which, to the extent required or permitted by the Federal
Book-Entry Regulations, is also an ‘‘entitlement
holder’’ as defined in Section 8-102(a)(7) of the
NYUCC.

‘‘Entitlement
Order’’ shall have the meaning set forth in Section
8-102(a)(8) of the NYUCC and shall include, without limitation, any
notice or related instructions from the Pledgee directing the transfer
or redemption of the Collateral or any part
thereof.

‘‘Federal Book-Entry
Regulations’’ means the federal regulations contained
in Subpart B (‘‘Treasury/Reserve Automated Debt Entry
System (TRADES)’’ governing book-entry
securities consisting of United States Treasury securities, U.S.
Treasury bonds, notes and bills) and Subpart D
(‘‘Additional Provisions’’) of 31
C.F.R. Part 357, 31 C.F.R. § 357.10 through §357.14 and
§357.41 through §357.44 (including related defined terms in
31 C.F.R. §357.2), as amended by regulations published at 61 Fed.
Reg. 43626 (August 23, 1996) and as amended by an subsequent
regulations.

‘‘Insurance Letter of
Credit Master Agreement’’ means the Insurance Letter of
Credit Master Agreement delivered by the Pledgor to the
Pledgee.

‘‘Lien’’
means any mortgage, pledge, attachment, lien, charge, claim,
encumbrance, lease or security interest, easement, right of first or
last refusal, right of first offer or other option or contingent
purchase
right.

‘‘NYUCC’’
means the Uniform Commercial Code from time to time in effect in the
State of New
York.

‘‘Person’’
means any individual, corporation, partnership, joint venture,
foundation, association, joint-stock company, trust,
unincorporated organization, government or any political subdivision
thereof or any agency or instrumentality of any
thereof.

‘‘Secured
Obligations’’ has the meaning specified therefor in
Section 3 hereof.

‘‘Secured
Intermediary’’ means a Person that (i) is a
‘‘securities intermediary’’ as
defined in Section 8-102(a)(14) of the NYUCC and (ii) in respect of any
U.S. Government Obligations, is also a ‘‘securities
intermediary’’ as defined in 31 C.F.R.
§357.2.

‘‘Security
Control’’ means
‘‘control’’ as defined in Section
9-115(1)(e) of the
NYUCC.

‘‘Security
Entitlement’’ means (i) security
entitlement’’ as defined in Section 8-102(a)(17) of the
NYUCC (except in respect of a U.S. Government Obligation); and (ii) in
respect of any U.S. Government Obligation, a
‘‘security entitlement’’ as defined
in 31 C.F.R. §357.2 which, to the extent required or permitted by
the Federal Book-Entry Regulations, is also a
‘‘security entitlement’’ as defined
in Section 8-102(a)(17) of the
NYUCC.

‘‘STRIPS’’
shall have the meaning thereof set forth in Section 357.2 of the
Federal Book-Entry
Regulations.

‘‘U.S. Government
Obligations’’ means all of the United States Treasury
securities (including STRIPS) maintained in the commercial book-entry
system entitled Treasury/Reserve Automated Debt Entry System
(‘‘TRADES’’) pursuant to the Federal
Book-Entry Regulations or pursuant to a successor
system.

(b)    NYUCC Terms. Terms defined or
referenced in the NYUCC and not otherwise defined or referenced herein
are used herein as therein defined or referenced. In particular, the
following terms are used herein as defined or referenced in the
respective NYUCC sections indicated below:
‘‘Account’’: Section 9-106;
‘‘Entitlement Order’’: Section
8-102(a)(8); ‘‘Financial Asset’’:
Section 8-102(a)(9); ‘‘Instrument’’:
Section 9-105(l)(i); ‘‘Investment
Property’’: Section 9-115(1)(f);
‘‘Person’’: Section 1-201(30);
‘‘Securities Account’’: Section
8-501(a); ‘‘Security’’: Section
8-102(a)(15).Table of Contents

				
	Phil
Arch			Citibank, N.A.
	Trade Finance and
Services			Citigroup Centre
Canada Square
Canary
Wharf
LONDON E14 5LB
	 			Tel     +44 (0)
207 500 5942
Fax     +44 (0) 207 500
5452
	

27 January, 2006

    
Mr B
Astwood
                                                                                
January 27th, 2006
Aspen Insurance Ltd
Victoria
Hall
3rd Floor
11 Victoria
St
Hamilton
HM11

    
Dear
Sirs

		
	Re 	Pledge Agreement between Aspen
Insurance Ltd and Citibank London dated January 17, 2006 and Account
Control Agreement between Bank of New York and Citibank London dated
January 17, 2006

    
With reference to the above Pledge
Agreement, without prejudice to the provision of Section 2 and 6
(k), the Collateral Value and permitted securities, subject to your
counter-signature of a copy of this letter, shall be as set out in the
annex to this letter.

Save as expressly provided in this letter,
the provisions of the Pledge Agreement and the Account Control
Agreement shall remain in full force and effect.

Please
countersign and return the enclosed copy of this
letter.

    
    
Yours faithfully
for Citibank
Ireland Financial Services

    
    
We confirm our
agreement to the
above

Citibank,
N.A. is incorporated with limited liability under the National Bank Act
of the U.S.A. and has its head office at 399 Park Avenue, New York, NY
10043, U.S.A.. Citibank, N.A. London branch is registered in the U.K.
at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB under
No. BR001018 and is regulated by the FSA. VAT No. GB 429 6256 29.
Ultimately owned by Citigroup Inc., New York,
U.S.A.

Table of Contents
ANNEX

BANK of NEW YORK / ASPEN
INSURANCE COMPANY LTD

and

CITIBANK, N.A.

PLEDGE
AND ACCOUNT CONTROL AGREEMENT

SCHEDULE
1

		
	1. 	The Required Value
is:−

		
	 	US$ 50,000,000.00 (United State
Dollars Fifty Million) (or such other amount as may be agreed between
the Chargor and notified to the Pledgor from time to
time.)

		
	 	The account is currently funded with
$51,100,000 U.S. Treasury Bills due July 20th,
2006.

    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
Citibank,
N.A. is incorporated with limited liability under the National Bank Act
of the U.S.A. and has its head office at 399 Park Avenue, New York, NY
10043, U.S.A.. Citibank, N.A. London branch is registered in the U.K.
at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB under
No. BR001018 and is regulated by the FSA. VAT No. GB 429 6256 29.
Ultimately owned by Citigroup Inc., New York,
U.S.A.

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