Document:

Prepared and filed by St Ives Burrups

Exhibit 10.3 

CONFORMED EXECUTION COPY 

ACCOUNT CONTROL AGREEMENT 

AGREEMENT
      (as amended, modified, restated and/or supplemented from time to time,
    this “Agreement”), dated as of August 6, 2004, among each undersigned grantor (each, a “Grantor” and, together with any other entity that becomes a Grantor hereunder pursuant to Section 17 hereof, the “Grantors”),
      The Bank of New York, as Collateral Agent (the “Collateral
      Agent”), and The Bank of New York, as Custodian (the “Custodian”),
      (i) with which one or more deposit accounts (as defined in Section 9-102
      of the UCC) as identified on Annex A attached hereto are maintained by
      each Grantor (with all such deposit accounts now or at any time in the
      future maintained by the Grantors with the Custodian as “Collateral
      Accounts” (as defined in the Security Agreement (as defined below))
      being herein called the “Deposit Accounts” and each, a “Deposit
      Account”) and (ii) with which one or more securities accounts
      (as defined in Section 8-501 of the UCC) as identified on Annex A attached
      hereto are maintained by each Grantor (with all such securities accounts
      now or at any time in the future maintained by the Grantors with the Custodian
      as “Collateral Accounts” (as defined in the Security Agreement)
      being herein called the “Securities Accounts” and each
      a “Securities Account”) and together with the Deposit
      Accounts, the “Collateral Accounts” and each, a “Collateral
      Account”). Except as otherwise defined herein, all capitalized
      terms used herein and defined in the Security Agreement (as defined below)
      shall be used herein
as therein defined. 

W I T N E S S E T H :  

WHEREAS,
    Endurance Specialty Holdings Ltd. (the “Parent Borrower”), various
    Designated Subsidiary Borrowers, the lenders from time to time party thereto
    (the “Lenders”),
    JPMorgan Chase Bank, as Administrative Agent (together with any successor
    Administrative Agent, the “Administrative Agent”), and Wachovia
    Bank, National Association, as Syndication Agent, have entered into a Credit
    Agreement, dated as of August 6, 2004 (as amended, modified, supplemented
    or amended and restated from time to time, the “Credit Agreement”),
    providing for the making of Loans to the Borrowers and the issuance of, and
    participation in, Letters of Credit for the account of the Designated Subsidiary
    Borrowers, all as contemplated therein (the Lenders, the Administrative Agent,
    the Collateral Agent and each other agent under the Credit Agreement are
    herein called the “Secured
Creditors”); 

  WHEREAS, each Grantor, the Collateral Agent, the Custodian and the Administrative Agent have entered into a Security Agreement, dated as of August 6, 2004 (as amended, amended and restated, modified or supplemented from time to time, the “Security
        Agreement”), under which, among other things, in order to secure
        the payment of its respective Secured Obligations (as defined in the
        Security Agreement), such Grantor has severally granted a security interest
        to the Collateral Agent for the benefit of the Secured Creditors in all
        of the right, title and interest of such Grantor in and to such Grantor’s
  Collateral (as defined in the Security Agreement);  

WHEREAS,
    each Grantor desires that the Custodian enter into this Agreement in order
    (i)
    to establish “control” (as defined in Section 9-104 of the UCC) of the Collateral Agent over each Deposit Account of such Grantor at any time or from time to time maintained by such Grantor with the Custodian and all Cash, instruments, credit balances and other property credited thereto from time to time and (ii) to establish “control” (as
      defined in Section 8-106 of the UCC) of the Collateral Agent over each
    Securities Account of such Grantor at any time or from time to time maintained
    by such
      Grantor with the Custodian and all Securities, Security Entitlements, Financial
      Assets, Cash, credit balances and other property credited thereto from
    time to time, and in order to otherwise perfect the security interest of
    the Collateral
      Agent in the Deposit Accounts and Securities Accounts and (iii) to provide
      for the rights of the parties under this Agreement with respect to such
    Collateral Accounts, it being understood that the Custodian has no responsibility
    with
      respect to the validity or perfection of the security interest otherwise
than to act in accordance with the terms of this Agreement; 

  NOW, THEREFORE, in consideration of the premises and the mutual promises and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:  

1.   Definitions.   As
      used herein the following terms shall have the following meanings: 

  “Entitlement
        Holder” shall mean a person identified in the records of the
        Custodian as the person having a Security Entitlement (as defined in
  the Security Agreement) against the Custodian.  

“Entitlement
      Order” shall
    mean a notification communicated to the Custodian directing transfer or redemption
    of a Financial Asset (as defined in the Security Agreement) in which the
Entitlement Holder has a Security Entitlement.

  2.   The
          Collateral Accounts.   Annex
          A attached hereto (and as it may be amended, modified and restated
          from time to time) contains a complete and accurate description of
          each Deposit
      Account and each Securities Account maintained by each Grantor with the
      Custodian. Each
  Grantor and the Custodian agree to maintain at all times such Collateral Accounts
  in the name of the respective Grantor. The Custodian shall not change the name
  or account number of any Collateral Account without the prior written consent
  of the Collateral Agent. The Collateral Accounts listed on Annex A hereto do
  not contain Collateral which is registered in the name of, payable to or to
      the order of, or specifically indorsed to a Grantor or any other Person
      other than
  the Custodian, which has not been indorsed to the Custodian or in blank, and
  the Securities Accounts contain only securities that are primarily cleared
      and settled within the United States. To the Custodian’s knowledge,
      the Security Entitlements arising out of the Collateral carried in the
      Securities Accounts
  are valid and legally binding obligations of the Custodian, and the Custodian
  has not been notified in writing of any claim to or interest in the Collateral,
  except for the claims and interest of the Collateral Agent and the Grantors
  in the Collateral. 

  3.   Control;
Collateral Agent’s Right to Give Instructions as to Collateral Accounts.   (a) Notwithstanding
any separate agreement that any Grantor may have with the Custodian or any other
Person, the Collateral Agent shall be entitled, for purposes of this Agreement,
at any 

  2 

time to give the Custodian Entitlement Orders and instructions as to the withdrawal or disposition of any funds, property or Securities from time to time credited to any Collateral Account, or as to any other matters relating to any Collateral Account or any other Collateral, without further consent from the Grantor or any other Person. Each Grantor hereby irrevocably authorizes and instructs the Custodian, and the Custodian hereby agrees, to comply with any and all Entitlement Orders and instructions originated by the Collateral Agent without any further consent from such Grantor or any other Person. Such instructions may include the giving of stop payment orders for any items being presented to any Deposit Account for payment.  The Custodian shall not comply with any Entitlement Order or other instruction concerning Collateral held in any Collateral Account from any Grantor or any other Person, other than the Collateral Agent or its authorized
 representatives, unless such Entitlement Order or instruction has been consented to in writing by the Collateral Agent. The Custodian shall be fully entitled to rely on, and shall comply with, such instructions from the Collateral Agent even if such instructions are contrary to any instructions or demands that the Grantor or any other Person may give to the Custodian. In case of any conflict between any Entitlement Orders or instructions received by the Custodian from the Collateral Agent and any Entitlement Orders or instructions received by the Custodian from any Grantor or any other Person other than the Collateral Agent, the Entitlement Orders and instructions originated by the Collateral Agent shall prevail. 

(b)   It
      is understood and agreed that the Custodian’s duty to comply with
      instructions and Entitlement Orders from the Collateral Agent regarding
      the Collateral
      Accounts is absolute, and the Custodian shall be under no duty or obligation,
      nor shall it have the authority, to inquire or determine whether or not
      such instructions are in accordance with the Security Agreement or any
      other Credit
Document, nor seek confirmation thereof from any Grantor or any other Person.

  4.   Standard
          of Care.   Notwithstanding
          any provision contained herein or in any other document or instrument
          to the contrary, neither the Custodian nor any of its officers,
        employees or agents shall be liable (i) for following the instructions
        of the Collateral Agent and (ii) in all other respects, for any action
        taken or not taken by it (or them) under or in connection with this Agreement,
        except for the Custodian’s (or their) own negligence or willful
        misconduct. In no event shall the Custodian be liable for indirect, special
        or consequential
        damages of any kind whatsoever (including lost profits and lost business
        opportunity) even if it is advised of the possibility of such damages
        and regardless of the form of action in which any such damages may be
        claimed.
        Without limiting the foregoing, and notwithstanding any provision to
        the contrary elsewhere, the Custodian, its affiliates and their respective
  officers, directors, employees and agents:  

(a)   shall have no responsibilities, obligations or duties other than those expressly set forth in this Agreement, and no implied duties, responsibilities or obligations shall be read into this Agreement against the Custodian; without limiting the foregoing, the Custodian shall have no duty to preserve, exercise or enforce rights in the Collateral (against prior parties or otherwise); 

  (b)   may in any instance where the Custodian determines that it lacks or is uncertain as to its authority to take or refrain from taking certain action, or as to the requirements of this Agreement under any circumstance before it, delay or refrain from taking action unless and until
it has
received instructions from the Collateral Agent or advice from legal counsel
(or other appropriate advisor), as the case may be; 

   3 

(c)   so long as it and they shall have acted (or refrained from acting) in good faith, shall not be liable for any error of judgment in any action taken, suffered or omitted by, or for any act done or step taken, suffered or omitted by, or for any mistake of fact or law, unless such action constitutes gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable decision) on its (or their) part; 

  (d)   may consult with legal counsel selected by it (or other experts for the Collateral Agent or any Grantor), and shall not be liable for any action taken or not taken by it or them in good faith in accordance with the advice of such experts;  

(e)   will not be responsible to any Person for any statement, warranty or representation made by any party other than the Custodian in connection with this Agreement; 

  (f)   will have no duty to ascertain or inquire as to the performance or observance by any Grantor of any of the terms, conditions or covenants of any security agreement with the Collateral Agent;  

(g)   will not be responsible to any Person for the due execution, legality, validity, enforceability, genuineness, effectiveness or sufficiency of this Agreement (provided, however, that the Custodian warrants below that the Custodian has legal capacity to enter into this Agreement);

  (h)   will not incur any liability by acting or not acting in reliance upon any notice, consent, certificate, statement or other instrument or writing believed by it or them to be genuine and signed or sent by the proper party or parties;  

(i)   will not incur liability for any notice, consent, certificate, statement, wire instruction, telecopy or other writing which is delayed, canceled or changed without the actual knowledge of the Custodian; 

  (j)   shall not be deemed to have or be charged with notice or knowledge of any fact or matter unless a written notice thereof has been received by the Custodian at the address and to the person designated in (or as subsequently designated pursuant to) this Agreement;  

(k)   shall
      not be obligated or required by any provision of this Agreement to expend
      or risk the Custodian’s own funds, or to take any action (including
      but not limited to the institution or defense of legal proceedings) which
      in its or their judgment may cause it or them to incur or suffer any expense
      or liability; provided, however, if
      the Custodian elects to take any such action, it shall be entitled to security
      or indemnity satisfactory to the Custodian for the payment of the costs,
      expenses (including but not limited to reasonable attorneys’ fees)
and liabilities which may be incurred therein or thereby; 

  (l)   shall not incur any liability for acts or omissions of any domestic or foreign depository or book-entry system for the central handling of Financial Assets or any domestic or foreign custodian or subcustodian;  

   4 

(m)   shall not be responsible for the title, validity or genuineness of any item of Collateral in or delivered into any Collateral Account; and 

  (n)   shall not be responsible for, or have any liability with respect to, any losses due to forces beyond its or their control, including without limitation, strikes, work stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or act of God, and interruptions, loss or malfunction of utilities, communications or computer (software or hardware) services.  

5.   Grantor’s
          Exculpation and Indemnification of Custodian.   Each
          Grantor hereby irrevocably authorizes and instructs the Custodian to
          follow any and all instructions and Entitlement Orders originated
          by the Collateral Agent regarding the Collateral Accounts, even if
          the result of following such instructions or Entitlement Orders from
          the
          Collateral Agent is that the Custodian dishonors items presented for
          payment from any Deposit Account. Each Grantor further confirms that
          the Custodian shall have no liability to such Grantor for complying
          with any instructions or Entitlement Orders originated by the Collateral
          Agent
          or for wrongful dishonor of such items in following such instructions
          from the Collateral Agent. The Custodian shall have no duty to inquire
          or determine whether any Grantor’s obligations to the Collateral
          Agent are in default or whether the Collateral Agent is entitled under
          any separate agreement between such Grantor and the Collateral Agent
          to give any such instructions or Entitlement Orders. The Parent Borrower
          agrees to be responsible for the Custodian’s
          customary charges and to indemnify the Custodian from and to hold the
          Custodian harmless against any loss, cost or expense that the Custodian
          may sustain or incur in acting upon instructions or Entitlement Orders
          which the Custodian believes in good faith to be instructions from
the Collateral Agent. 

  6.   Subordination
    of Security Interests; Custodian’s Recourse to Deposit Accounts.   The Custodian hereby subordinates any claims and security interests it may have against, or with respect to, any Collateral Account at any time established or maintained with it by any Grantor (including any amounts, securities, investments, instruments, credit balances, Financial Assets or other property from time to time on deposit or carried therein or credited thereto) to the security interests of the Collateral Agent (for the benefit of the Secured Creditors) in any and all of the Collateral, and agrees that no amounts shall be charged by the Custodian to, or withheld or set-off or otherwise recouped by the Custodian from, any Collateral Account of such Grantor or any amounts, investments, instruments or other Collateral from time to time on deposit therein. 

  7.   Representations,
Warranties and Covenants of Custodian.   The Custodian
      represents
and warrants to the Collateral Agent that: 

  (a)   The
      Custodian is a “bank” (as defined
      in Section
      9-102 of the UCC)
  and, regardless
  of any provision in any other agreement, the jurisdiction (determined in accordance
  with Section 9-304 of the UCC) of the Custodian for purposes of each Deposit
Account maintained by the Grantor with the Custodian is the State of New York. 

(b)   The
      Custodian is a “securities intermediary” (as defined in Section
      8-102(a)(14) of the UCC) and is acting in that capacity and, regardless
      of any provision in any other agreement, the jurisdiction (determined in
      accordance
with Sections 9-305 and 8-110(e) of the UCC) of the Custodian for purposes of
      each Securities Account maintained by the Grantor with the Custodian is
the State of New York.

 5 

(c)   The account agreements between the Custodian and the Grantor relating to the establishment and general operation of the Collateral Accounts provide, whether specifically or generally, that the laws of New York govern the Collateral Accounts and, regardless of any provision in any other agreement, that the Custodian’s “jurisdiction” for purposes of Sections 9-304, 9-305 and 8-110(e) of the UCC in respect of the Collateral Accounts is the State of New York. The Custodian will not, without the Collateral Agent’s prior written consent, amend any such account agreement so that the Custodian’s jurisdiction for purposes of Section 9-304, 9-305 or 8-110(e) of the UCC is not the State of New York.  

(d)   The Custodian has not granted and will not grant its creditors or any other Person a security interest in any of the Collateral and the Custodian will not sell, assign, transfer, hypothecate, rehypothecate, pledge, repledge, use or otherwise dispose of any of the Collateral (other than Cash) and will keep all Collateral (other than Cash) segregated from the assets of the Custodian and from the assets of its other customers.  

(e)   The Custodian has not entered and will not enter into any agreement with any Person other than the Collateral Agent under which the Custodian agrees to comply with any Entitlement Orders or instructions from such other Person as to the disposition of funds from any Collateral Account.  

(f)   Any item of Collateral received by the Custodian for a Grantor’s account in accordance with Section 4.03 of the Security Agreement will be credited to the appropriate Collateral Account listed on Annex A hereto for such Grantor in accordance with Section 4.02(b) of the Security Agreement.  

(g)   No item of Collateral will be released by the Custodian to any Grantor or to any other Person except in accordance with Section 4.04 of the Security Agreement.  

(h)   All Collateral which is a Financial Asset held by the Custodian shall be registered in the name of the Custodian or its nominee, payable to the order of the Custodian or specially indorsed to the Custodian or in blank, and in the event that any Financial Asset held by the Custodian is inadvertently registered in the name of, payable to the order of or specially indorsed to another Person and is not indorsed to the Custodian or in blank, the Custodian shall hold such Financial Asset as agent and bailee of the Collateral Agent.  

8.   Further
      Representations.   Each
      Grantor (severally for itself) represents and warrants that (i) it is duly
      incorporated or organized and is validly existing in good standing in its
      jurisdiction of incorporation or organization, (ii) the execution, delivery
      and performance of this Agreement and all documents and instruments to
      be delivered hereunder or thereunder have been duly authorized, (iii) the
      person executing this Agreement on its behalf has been duly authorized
      to act on its behalf, (iv) this Agreement constitutes its legal, valid,
      binding and enforceable agreement, and (v) its entry into this Agreement
      will not violate any agreement, law, rule or regulation by which it is
      bound or by which any of its assets or property are affected.  

 6  

9.   Account
      Statements and Information.   The
      Custodian agrees, and is hereby authorized and instructed by each Grantor,
      to furnish to the Collateral Agent, at its address indicated below, copies
      of all account statements and other information relating to each Collateral
      Account that the Custodian sends to such Grantor and to disclose to the
      Collateral Agent all information requested by the Collateral Agent regarding
      any Collateral Account. If any person notifies the Custodian of its assertion
      of any lien, encumbrance or adverse claim against any of the Collateral
      Accounts or in any item of Collateral contained therein, the Custodian
      will promptly notify the Collateral Agent and the relevant Grantor thereof.  

10.   Conflicting
      Agreements.   This
      Agreement shall have control over any conflicting agreement between the
      Custodian and any Grantor.  

11.   Merger or Consolidation of Custodian.   Without
      the execution or filing of any paper or any further act on the part of
      any of the parties hereto, any bank into which the Custodian may be merged
      or with which it may be consolidated, or any bank resulting from any merger
      to which the Custodian shall be a party, shall be the successor of the
      Custodian hereunder and shall be bound by all provisions hereof which are
      binding upon the Custodian and shall be deemed to affirm as to itself all
      representations and warranties of the Custodian contained herein.  

12.   Notices.   (a)   All
    notices and other communications provided for in this Agreement shall be
    in writing (including facsimile) and sent to the intended recipient at
    its address or telex or facsimile number set forth below:  

	 	 	If to the Collateral
    Agent, at:   
	 	 	 
	 	 	The Bank of New
    York
	 	 	Corporate Trust – Dealing & Trading Dept.
	 	 	101 Barclay Street, 8E
	 	 	New York, New York, 10286
	 	 	Attention: Fernando Acebedo
	 	 	Telephone: (212) 815-2915
	 	 	Facsimile: (212) 815-2830
	 	 	 
	 	 	If to a Grantor,
    at:
	 	 	 
	 	 	The address for
    notices specified for such Grantor in the Credit Agreement.
	 	 	 
	 	 	If to the Custodian,
    at:
	 	 	 
	 	 	The Bank of New
    York
	 	 	One Wall Street, 14th Floor
	 	 	New York, New York, 10286
	 	 	Attention: Michael Jaime
	 	 	Telephone: (212) 635-4614
	 	 	Facsimile: (212) 635-8844/8845

or, as to any party, to such other address or telex or facsimile number as such party may designate from time to time by notice to the other parties.  

7
 

(b)   Except as otherwise provided herein, all notices and other communications hereunder shall be delivered by hand or by commercial overnight courier (delivery charges prepaid), or mailed, postage prepaid, or telexed or faxed, addressed as aforesaid, and shall be effective (i) three business days after being deposited in the mail (if mailed), (ii) when delivered (if delivered by hand or courier) and (iii) or when transmitted with receipt confirmed (if telexed or faxed); provided that notices to the Collateral Agent shall not be effective until actually received by it.  

13.   Amendment.   This
    Agreement may not be amended, modified or supplemented except in writing
    executed and delivered by all the parties hereto.  

14.   Binding
      Agreement.   This
      Agreement shall bind the parties hereto and their successors and assigns
      and shall inure to the benefit of the parties hereto and their successors
      and assigns. Without limiting the provisions of the immediately preceding
      sentence, the Collateral Agent at any time or from time to time may designate
      in writing to the Custodian a successor Collateral Agent (at such time,
      if any, as such entity becomes the Collateral Agent under the Security
      Agreement, or at any time thereafter) who shall thereafter succeed to the
      rights of the existing Collateral Agent hereunder and shall be entitled
      to all of the rights and benefits provided hereunder.  

15.   Continuing
      Obligations.   The
      rights and powers granted herein to the Collateral Agent have been granted
      in order to protect and further perfect its security interests in the Collateral
      Accounts and other Collateral and are powers coupled with an interest and
      will not be affected by any purported revocation by any Grantor of this
      Agreement or the rights granted to the Collateral Agent hereunder or by
      the bankruptcy, insolvency, conservatorship or receivership of any Grantor
      or the Custodian or by the lapse of time. The rights of the Collateral
      Agent hereunder and in respect of the Collateral Accounts and the other
      Collateral, and the obligations of each Grantor and the Custodian hereunder,
      shall continue in effect until the security interests of the Collateral
      Agent in such Collateral Accounts and such other Collateral pursuant to
      the Security Agreement have been terminated and the Collateral Agent has
      notified the Custodian of such termination in writing. The termination
      of this Agreement shall not terminate any Collateral Account or alter the
      obligations of the Custodian to each Grantor pursuant to other agreements
      with respect to any Collateral Account.  

16.   Financial
      Assets.   Each
      Grantor, the Custodian and the Collateral Agent hereby agree that the Custodian
      will treat any and all Securities and any and all other Property and assets
      (other than Cash) credited from time to time to each Grantor’s Securities
      Account as Financial Assets.  

17.   Additional
      Grantors.   It
      is understood and agreed that any Person that has become a Grantor under
      the Security Agreement after the date hereof pursuant to the requirements
      of the Credit Agreement or any other Credit Document shall become a Grantor
      hereunder by (x) executing a counterpart hereof and delivering same to
      the Collateral Agent, or by executing an assumption agreement in form and
      substance satisfactory to the Collateral Agent, (y) delivering a supplement
      to Annex A as is necessary to cause such Annex to be complete and accurate
      with respect to such additional Grantor on such date and (z) taking all
      actions as specified in the Security Agreement, the Credit Agreement and
      this Agreement as would have been taken by  

 8  

  such Grantor had it been an original party to this Agreement on the Closing Date, in each case with all documents required above to be delivered to the Collateral Agent and with all documents and actions required above to be taken to the reasonable satisfaction of the Collateral Agent and the Administrative Agent.  

18.   Governing
      Law; Jurisdiction; Consent to Service of Process.   (a)   This
      Agreement shall be construed in accordance with and governed by the law
      of the State of New York. Regardless of any provision in any other
    agreement, in respect of the Custodian, the State of New York shall be the “bank’s
    jurisdiction” for purposes of Section 9-304 of the UCC and the “securities
    intermediary’s jurisdiction” for purposes of Sections 9-305 and
    8-110 of the UCC.  

(b)   Each
    party hereto hereby irrevocably and unconditionally submits, for itself and
    its property, to the non-exclusive jurisdiction of the Supreme Court of the
    State of New York sitting in New York County and of the United States District
    Court of the Southern District of New York, and any appellate court from
    any thereof, in any action or proceeding arising out of or relating to this
    Agreement, or for recognition or enforcement of any judgment, and each of
    the parties hereto hereby irrevocably and unconditionally agrees that all
    claims in respect of any such action or proceeding may be heard and determined
    in such New York State court or, to the extent permitted by law, in such
    Federal court. Each of the parties 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. Nothing in this Agreement shall affect any right that the Custodian,
    the Collateral Agent or any Secured Creditor may otherwise have to bring
    any action or proceeding relating to this Agreement against any Grantor or
    its properties in the courts of any jurisdiction.  

(c)   Each
    party hereto hereby irrevocably and unconditionally waives, to the fullest
    extent it may legally and effectively do so, any objection which 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 court referred to in
    paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
    waives, to the fullest extent permitted by law, the defense of an inconvenient
    forum to the maintenance of such action or proceeding in any such court.  

(d)   Each
    party to this Agreement irrevocably consents to service of process in the
    manner provided for notices in Section 11.01 of the Credit Agreement. Nothing
    in this Agreement will affect the right of any party to this Agreement to
    serve process in any other manner permitted by law.  

(e)   Each
    Grantor hereby irrevocably designates, appoints and empowers C T Corporation,
    with offices on the date hereof at 111 Eighth Avenue, 13th Floor, New York, New York 10011, as its designee, appointee and agent to receive, accept and acknowledge for and on its behalf, and in respect of its property, service of any and all legal process, summons, notices and documents which may be served in any such action or proceeding. If for any reason such designee, appointee and agent shall cease to be available to act as such, each Grantor agrees to designate a new designee, appointee and agent in New York City on the terms and for the purposes of this provision reasonably satisfactory to the Custodian and the Collateral Agent under this Agreement.  

9
 

19.   WAIVER
      OF JURY TRIAL.   EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
      LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
      OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
      EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
      OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
      PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
      WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
      INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
      WAIVERS AND CERTIFICATIONS IN THIS SECTION.  

20.   Counterparts.   This
    Agreement may be executed in any number of counterparts, all of which shall
    constitute one and the same instrument, and any party hereto may execute
    this Agreement by signing and delivering one or more counterparts.  

[Remainder of this page intentionally left blank; signature page follows] 
 

10
 

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

	 	       Grantors:
    
	 	 
	 	 
      ENDURANCE SPECIALTY HOLDINGS LTD. 
	 	 	 
	 	By:	/s/
    John Del Col
	 	 	

	 	 	Name:
        John Del Col

        Title: General Counsel and Secretary  

	 	 	 
	 	
      ENDURANCE SPECIALTY INSURANCE LTD. 
	 	 	 
	 	By:	/s/ John Del Col
	 	 	

	 	 	Name:
      John Del Col

      Title: General Counsel and Secretary 
	 	 	 
	 	
      ENDURANCE U.S. HOLDINGS CORP.  
	 	 	 
	 	By:	/s/
    Steven Carlsen
	 	 	

	 	 	Name:
      Steven Carlsen

      Title: President 
	 	 	 
	 	ENDURANCE
      WORLDWIDE HOLDINGS  LIMITED
       
	 	 	 
	 	By:	/s/ Mark Boucher
	 	 	

	 	 	Name:
      Mark Boucher

      Title: Chief Executive Officer 
	 	 	 
	 	ENDURANCE
      WORLDWIDE INSURANCE LIMITED
       
	 	 	 
	 	By: 	/s/
    Mark Boucher
	 	 	

	 	 	Name:
      Mark Boucher

      Title: Chief Executive Officer 

11 

	 	Custodian:
	 	 
	 	 THE BANK
        OF NEW YORK  
	 	 
	 	By:	/s/
        Michael Jesse
	 	 	

    
	 	 	Name: Michael Jesse

      Title: Vice President

12 

	 	Collateral
      Agent: 
       
	 	 
	 	 THE
      BANK OF NEW YORK  
	 	 	 
	 	By:	/s/ Andres E. Serrano
	 	 	

	 	 	Name: Andres E. Serrano

      Title: Vice President

13 

 Annex
  A 

 

	Grantor:	 Securities
      Account(s):
      	Deposit
      Account(s):Prepared and filed by St Ives Burrups

Exhibit 10.4

EMPLOYMENT AGREEMENT

This
    Employment Agreement (this “Agreement”)
  is entered into as of April 30, 2004 (the “Effective Date”) between
  Endurance Services Limited, an English company (the “Company”), and
  Steven W. Carlsen (the “Executive”).

   WHEREAS, it is deemed by the Company to be in
    the best interest of the Company to assure continuation of Executive’s
    employment;  

   WHEREAS, the Company and the Executive have
    determined to enter into this Agreement pursuant to which the Company will
    continue to employ the Executive on the terms and conditions set forth herein;
    and  

   WHEREAS, this Agreement replaces that certain
    Employment Agreement, dated as of January 1, 2003, between the Company and
    the Executive (the “Agreement”).  

   NOW, THEREFORE, in consideration of the premises
    and the mutual agreements contained herein, the Company and the Executive
    hereby agree as follows:  

   1. 
    Defined Terms.
    For purposes of this Agreement, the following
    terms shall have the meanings indicated
    below:  

   (a) “Business”
    shall mean any property or casualty coverages underwritten by Endurance Specialty
    Insurance Ltd. or any of its subsidiaries as an insurer or reinsurer during
    the Employment Period or the one-year period immediately preceding the commencement
    of the Employment Period.  

   (b) “Cause”
    for termination by the Company of the Executive’s employment shall mean
    (i) any intentional act of fraud, embezzlement or theft by the Executive in
    connection with his duties hereunder or in the course of his employment hereunder
    or the Executive’s admission or conviction of, or plea of nolo contendere
    to, a felony or of any crime involving moral turpitude, fraud, embezzlement,
    theft or misrepresentation; (ii) any gross negligence or willful misconduct
    of the Executive resulting in a loss to the Company or any of its subsidiaries,
    or damage to the reputation of the Company or any of its subsidiaries; (iii)
    any breach by the Executive of any one or more of the covenants contained
    in Section 11, 12 or 13 hereof; or (iv) any violation of any statutory or
    common law duty of loyalty to the Company or any of its subsidiaries. 
  

   (c)
    A “Change in Control” shall have
    the meaning ascribed to such term in the Stock Option Plan, as such meaning
    may be amended from time to time; provided, that any amendment adverse to
    the Executive shall not be binding upon him under this Agreement without his
    written consent. Notwithstanding the foregoing, a “Change in Control”
    shall not be deemed to have occurred by virtue of an initial public offering
    of the ordinary shares, par value $1.00 per share, of the Company. 
  

        (d) “Disability” shall
            be deemed the reason for the termination by the Company of the Executive’s
              employment, if, (i) as a result of the Executive’s incapacity
              due to physical or mental
              illness, fails to perform the essential functions of the Executive’s
              position required of the Executive hereunder for a continuous period
              of 120 days or any 360 days during the Employment Period Term,
              and (ii) the Company shall have given the Executive a Notice of
              Termination for Disability.

 1 

(e) “Employment
    Period” shall mean the period (which in no event shall extend beyond
    the expiration of the Term and may end earlier pursuant to Section 3(b) hereof)
    during which Executive has an obligation to render services hereunder, as
    described in Section 4 hereof.

   (f)
    “Equity Incentive Awards” shall
    mean any equity incentive award granted by the Company to the Executive under
    the Stock Option Plan or any equity incentive plan of the Company operating
    as a successor thereto. 

   (g) “Good
    Reason” for termination by the Executive of the Executive’s employment
    shall mean a breach by the Company of any material provision of this Agreement
    which breach remains uncured for a period of 30 days following the Company’s
    receipt of notice of such breach by the Executive. The Executive’s right
    to terminate the Executive’s employment for Good Reason shall not be
    affected by the Executive’s incapacity due to physical or mental illness.
     

   (h)
    “Holdings” shall mean Endurance
    Specialty Holdings Ltd,, a Bermuda company.  

   (i)
    “Stock Option Plan” shall mean
    the Amended and Restated 2002 Stock Option Plan of Endurance Specialty Holdings
    Ltd., as it may be amended from time to time  

     2. Employment. The
          Company hereby agrees to employ the Executive and the Executive hereby
          agrees to be employed by the Company upon the terms and subject to
          the conditions contained in this Agreement. 

     3.  Term 

   (a)
    Duration of Term.
    Unless earlier terminated as provided in Section 3(b) hereof, the Executive’s
    employment with the Company under this Agreement shall commence at the Effective
    Date and shall end on December 17, 2006 (the “Term”). 
  

   (b)
    Termination of Employment during
    the Term. Nothing in this Section 3 shall limit
    the right of the Company or the Executive to terminate the Executive’s
    employment under this Agreement during the Term hereof on the terms and conditions
    set forth in Section 7 hereof. 

   4. Position
    and Duties. The
    Company shall employ the Executive during the Employment Period as its President.
    During the Employment Period, the Executive shall perform faithfully and loyally
    and to the best of the Executive’s abilities the duties assigned to the
    Executive from time to time by the Company. The Executive shall perform such
    duties in accordance with the policies and procedures adopted by the Company
    from time to time. The Executive shall devote his full business time, attention
    and effort to the affairs of the Company 
    and its subsidiaries and shall use his reasonable best efforts to promote
    the interests of the Company and its subsidiaries. Notwithstanding the foregoing,
    the Executive may engage in charitable, civic or community activities, provided
    that such activities do not interfere with the Executive’s duties hereunder
    or violate the terms of any of the covenants contained in Sections 11, 12
    or 13 hereof. 

 2  

5. Place
      of Performance. The principal place of employment
      and office of the Executive shall be in White Plains, New York, or such
      other location as may be agreed to in writing by the Executive.

   6. 
    Compensation.
    (a) Base Salary. During
    the Employment Period, the Company
    shall pay to the Executive a base salary at rate no less than US $600,000
    per annum (“Base Salary”), payable in accordance with the Company’s
    executive payroll policy. 

   (b)
    Annual Bonus.
    The Executive shall be eligible to receive an annual incentive bonus payable
    in cash, Equity Incentive Awards or some combination thereof (“Annual
    Bonus”) with respect to each fiscal year which ends during the Employment
    Period and the fiscal year ending December 31, 2006. The Annual Bonus shall
    be based upon (i) the performance of the Company, (ii) the performance of
    the business unit or units of the Company for which the Executive is responsible
    and (iii) the Executive’s personal contribution to the success of the
    Company, each as determined by the Chief Executive Officer of Holdings in
    his sole discretion. The Annual Bonus shall not exceed 150% of the Executive’s
    Base Salary. Such Annual Bonus shall be paid after the end of the fiscal year
    at the same time as annual bonuses are paid to other executives. 

   (c)
    Other Benefits.
    During the Employment Period, the Executive shall be entitled to participate
    in (i) the Company’s medical and dental plans, (ii) a suitable pension
    arrangement in accordance with New York State and United States Federal law
    and (iii) any other employee benefit plans made generally available to
    executives of the Company (such benefits set forth in items (i), (ii) and
    (iii) hereof being hereinafter referred to as the “Employee Benefits”).
    The Executive shall be entitled to five weeks of paid vacation. The Executive
    also shall be entitled to take time off for illness in accordance with the
    Company’s policy for executives and to receive all other fringe benefits
    as are from time to time made generally available to executives of the Company.
     

   (d)
    Expense Reimbursement.
    During the Employment Period, the Company
    shall reimburse the Executive, in accordance
    with the Company’s policies and procedures, for all proper and reasonable
    expenses incurred by the Executive in the performance of the Executive’s
    duties hereunder. 

             7. Termination. The
                  Executive’s employment hereunder may be terminated, and
                  the Employment Period hereunder shall be ended, as follows:  

    (a) Death. The Executive’s
    employment shall terminate upon the Executive’s death. Upon such a termination,
    this Agreement shall automatically terminate and all rights of the Executive
    and the Executive’s heirs, executors and administrators to compensation
    and other benefits under this Agreement shall cease immediately, except that
    the Executive’s heirs,  executors or administrators,
    as the case may be, shall become entitled
    to the payments and benefits provided in Section
    8(b) hereof in accordance with the terms of such Section.  

 3  

(c) Disability.
      The Company may terminate the Executive’s employment hereunder for
      Disability. Upon such a termination, the Executive shall become entitled
      to the payments and benefits provided in Section 8(b) hereof in accordance
      with the terms of such Section.

   (d)
    Cause.
    The Company may terminate the Executive’s employment hereunder for Cause.
    Upon such a termination, the Executive shall become entitled to the payments
    and benefits provided in Section 8(a) hereof in accordance with the terms
    of such Section.  

   (e)
    Without Cause.
    The Company may terminate the Executive’s employment hereunder without
    Cause. Upon such a termination, the Executive shall become entitled to the
    payments and benefits provided in Section 8(b) hereof in accordance with the
    terms of such Section.  

	 
        (f)  Termination
        by the Executive. 
         

	 	 
	(i) 
        The Executive may terminate the Executive’s
        employment hereunder for Good Reason. Upon a Good Reason termination,
        the Executive shall become entitled to the payments and benefits provided
        in Section 8(b) hereof in accordance with the terms of such Section.

	 	 
	
        (ii)  The
        Executive may terminate the Executive’s employment hereunder without
        Good Reason, upon giving notice of thirty (30) days to the Company. In
        the event of such a termination, the Executive shall comply with any reasonable
        request of the Company to assist in providing for an orderly transition
        of authority, but such assistance shall not delay the Executive’s
        termination of employment longer than sixty (60) days beyond the submission
        by the Executive of a Notice of Termination. Upon such a termination,
        the Executive shall become entitled to the payments and benefits provided
        in Section 8(a) hereof in accordance with the terms of such Section. 
      

	 	 

(g) Notice of
        Termination. Any purported termination
        of the Executive’s employment (other than termination pursuant to
        Section 7(a) hereof) shall be communicated by written Notice of Termination
        to the other party hereto in accordance with Section 19 hereof. For purposes
        of this Agreement, a “Notice of Termination” shall mean a
        notice that shall indicate the specific termination provision in this
        Agreement relied upon and shall set forth in reasonable detail the facts
        and circumstances claimed to provide a basis for termination of the Executive’s
        employment under the provision so indicated.

  (h) Date
            of Termination. For purposes of this
            Agreement, “Date of Termination” shall
            mean the following: (i) if the Executive’s employment is terminated
            by the Executive’s death, the date of the Executive’s death;
            (ii) if the Executive’s employment is terminated for Disability
            pursuant to Section 7(b) hereof, thirty (30) days after the Notice
            of Termination is given (provided that the Executive shall not have
            returned to the full-time performance of the Executive’s duties
            during such thirty (30) day period); (iii) if the Executive’s employment
            is terminated for Cause pursuant to Section 7(c) hereof, the date
            specified in the Notice of Termination; (iv) if the Executive’s
            employment is terminated by the Executive without Good Reason pursuant
            to Section 7(e)(ii) hereof, the date determined in accordance with
            said Section; and (v) if the Executive’s employment is terminated
            for any other reason, the date specified in the Notice of Termination
            (which, in the case of a termination by the Company, shall not be
            less than thirty (30) days and, in the case of a termination by the
            Executive, shall not be less than fifteen (15) days nor more than
            sixty (60) days, respectively, from the date such Notice of Termination
            is given). 

4  

8.  Compensation
        Upon Termination of Employment.

  (a) Termination
            by the Company with Cause or by the Executive without Good Reason.
          If the Executive’s employment hereunder is terminated by the Company
          with Cause or by the Executive without Good Reason, then all obligations
          of the Company hereunder shall cease, except that the Executive shall
          be entitled to (i) accrued Base Salary through and including the Date
          of Termination, (ii) reimbursement for any expenses which are properly
          incurred by the Executive prior to the Date of Termination, but for
          which the Executive has not yet been reimbursed by the Company (“Unreimbursed
          Expenses”), (iii) a cash payment equal to the pro rata portion
          of the Executive’s Base Salary for any vacation days accrued and
          unused in the calendar year in which the Date of Termination occurs
          (“Accrued Vacation”) and (iv) the Employee Benefits to which
          the Executive was entitled as of the Date of Termination in accordance
          with the terms of the plans and programs of the Company under which
          such Employee Benefits are provided. The vesting, ability to exercise
          and termination of the Executive’s
          Equity Incentive Awards shall be determined in accordance with the
          terms of the Stock Option Plan and the incentive award agreements governing
          such Equity Incentive Awards. The Company shall have no additional
          obligations to the Executive under this Agreement except to the extent
          provided in this Section 8(a) and Section 17 hereof. 

   

   (b) Termination
    by the Company without Cause, by Death, for Disability or
    by the Executive with Good Reason. If the Executive’s employment
    hereunder is terminated by the Company without Cause, by the Executive’s
    Death, by the Company for Disability or by the Executive with Good Reason,
    then: 

	 	 
	 
        (i) the
        Company shall pay the Executive’s Base Salary to the Executive through
        the Date of Termination at the rate in effect immediately prior to the
        Date of Termination, together with all compensation and benefits to which
        the Executive was entitled through the Date of Termination under the terms
        of the Company’s compensation and benefit plans, programs or arrangements
        as in effect immediately prior to the Date of Termination;  

	 	 
	
        (ii) the
        Company shall pay or deliver to the Executive any Annual Bonus which has
        been allocated or awarded (but not yet paid or delivered) to the Executive
        for a completed fiscal year preceding the Date of Termination under any
        Annual Bonus plan;  

	 	 
	
        (iii) in
        lieu of any severance benefit otherwise payable to the Executive, the
        Company shall continue to pay the Executive (or his heirs, executors or
        administrators) his Base Salary as in effect immediately prior to the
        Date of Termination, in accordance  with
        the Company’s executive payroll policy, through December 17, 2006
        (the  “Severance Period”
        ); provided, however, that (I) in the event the Date of Termination follows
        a Change in Control, the payments requirement to be made to the Executive
        under this Section 8(b)(iii) shall be made in one lump sum as soon as
        practicable following the Date of Termination and (II) in the event of
        a Change in Control during the Severance Period, any amounts to which
        the Executive is entitled under this Section 8(b)(iii) which remain unpaid
        as of the date of such Change in Control shall be paid to the Executive
        in one lump sum as soon as practicable following the date of such Change
        in Control;   

	 	 

 5  

	
        (iv)  during
        the Severance Period, the Company shall arrange to provide the Executive
        and his eligible dependents Employee Benefits similar to those provided
        to the Executive and his eligible dependents immediately prior to the
        Date of Termination; provided, however, that, benefits otherwise receivable
        pursuant to this Section 8(b)(iv) shall be reduced to the extent benefits
        of the same type are received by or made available to Executive during
        the Severance Period (and any such benefits received by or made available
        to the Executive shall be reported to the Company by the Executive); 
      

	 	

	
        (v)  the
        vesting, ability to exercise and termination of the Executive’s Equity
        Incentive Awards shall be determined in accordance with the terms of the
        Stock Option Plan and the incentive award agreements governing such Equity
        Incentive Awards;  

	 	

	
        (vi)  the
        Company shall make a cash payment to the Executive for (x) Unreimbursed
        Expenses and (y) Accrued Vacation; and  

	 	

	
        (vii)  the
        Company shall have no additional obligations to the Executive under this
        Agreement except to the extent provided in Section 17 hereof. 
      

	 	 

(c) General.
      Amounts which are vested benefits or which the Executive is otherwise entitled
      to receive under any plan, policy, practice or program of or any contract
      or agreement with the Company or its subsidiaries at or subsequent to the
      Date of Termination shall be payable in accordance with such plan, policy,
      practice or program or contract or agreement except as explicitly modified
      by this Agreement. The Executive must (i) return all Company property in
      the possession of the Executive and (ii) execute the General Release attached
      hereto as Exhibit A in order to receive any of the payments or benefits
      set forth in this Section 8.

     9.  No
              Mitigation; Limited Offset. The
              Company agrees that, if the Executive’s
              employment with the Company terminates during the Term, then, except
              as may be required by applicable law, the Executive is not required
              to seek other employment or to attempt in any way to reduce any
              amounts payable to the Executive by the Company pursuant to Section
              8 hereof. However, such amounts shall be reduced by the amount
              of salary, bonus or other compensation which the Executive earns
              from a subsequent employer that relates to the period for which
              the amount is payable to the Executive hereunder. The Executive
              shall promptly notify the Company of his acceptance of employment
              with another employer during the Severance Period.  

 6  

10. Tax
      Withholding. The
      Company shall deduct from the amounts payable to the Executive pursuant
      to this Agreement the amount of taxes that the Company is required to withhold
      pursuant to applicable laws, rules and regulations.

   11.
    Noncompetition; Nonsolicitation.
    (a) General. The
    Executive acknowledges that in the course
    of the Executive’s employment with the Company the Executive will become
    familiar with trade secrets and other confidential information concerning
    Holdings and its subsidiaries and that the Executive’s services will
    be of special, unique and extraordinary value to Holdings and its subsidiaries.
     

   (b)
    Noncompetition.
    The Executive agrees that during the Employment Period the Executive shall
    not in any manner, directly or indirectly, through any person, firm or corporation,
    alone or as a member of a partnership or as an officer, director, stockholder,
    investor or employee of or consultant to any other corporation or enterprise
    or otherwise, engage or be engaged, or assist any other person, firm, corporation
    or enterprise in engaging or being engaged, in the Business in any geographic
    area in which Holdings or any of its subsidiaries is then conducting such
    Business. 

   (c)
    Nonsolicitation.
    The Executive further agrees that during the Employment Period and for a period
    of one year thereafter the Executive shall not (i) in any manner, directly
    or indirectly, induce or attempt to induce any employee of the Company or
    any of its subsidiaries to terminate or abandon his or her employment for
    any purpose whatsoever or (ii) in connection with the Business, call on, service,
    solicit or otherwise do business with any customer of Holdings or any of its
    subsidiaries.  

   (d)
    Exceptions.
    Nothing in this Section 11 shall prohibit the Executive from being (i) a stockholder
    in a mutual fund or a diversified investment company or (ii) an owner of not
    more than two percent of the outstanding stock of any class of a corporation,
    any securities of which are publicly traded, so long as the Executive has
    no active participation in the business of such corporation. 
  

   (e)
    Reformation.
    If, at any time of enforcement of this Section 11, a court or an arbitrator
    holds that the restrictions stated herein are unreasonable and/or unenforceable
    under circumstances then existing, the parties hereto agree that the maximum
    period, scope or geographical area reasonable and/or enforceable under such
    circumstances shall be substituted for the stated period, scope or area and
    that the court or arbitrator shall be allowed to revise the restrictions contained
    herein to cover the maximum period, scope and area permitted by law. This
    Agreement shall not authorize a court or arbitrator to increase or broaden
    any of the restrictions in this Section 11.  

   12.
    Confidentiality.
    The Executive shall not, at any time during
    the Employment Period or thereafter, make use of or disclose, directly or
    indirectly, any (i) trade secret or other confidential or secret information
    of Holdings or of any of its subsidiaries or (ii) other technical, business,
    proprietary or financial information of Holdings or of any of its subsidiaries
    not available to the public generally or to the competitors of Holdings or
    to the competitors of any of its subsidiaries (“Confidential Information”),
    except to the extent that such Confidential Information (a) becomes a matter
    of public record or is published in a newspaper,  magazine
    or other periodical or on electronic or other media available to the general
    public, other than as a result of any act or omission of the Executive, (b)
    is required to be disclosed by any law, regulation or order of any court or
    regulatory commission, department or agency, provided that the Executive gives
    prompt notice of such requirement to the Company to enable the Company or
    one of its affiliates to seek an appropriate protective order, or (c) is required
    to be used or disclosed by the Executive to perform properly the Executive’s
    duties under this Agreement. Promptly following the termination of the Executive’s
    employment with the  Company, the Executive
    shall surrender to the Company all records, memoranda, notes, plans, reports,
    computer tapes and software and other documents and data which constitute
    Confidential Information which the Executive may then possess or have under
    the Executive’s control (together with all copies thereof).  

 7  

13. Inventions. The
    Executive hereby assigns to the Company the Executive’s entire right, title
          and interest in and to all discoveries and improvements, patentable
          or otherwise, trade secrets and ideas, writings and copyrightable material,
          which may be conceived by the Executive or developed or acquired by
          the Executive during the Employment Period, which may pertain directly
          or indirectly to the business of Holdings or any of its subsidiaries.
          The Executive agrees to disclose fully all such developments to the
          Company upon its request, which disclosure shall be made in writing
          promptly following any such request. The Executive shall, upon the
          Company’s request, execute, acknowledge and deliver to the Company
          all instruments and do all other acts which are necessary or desirable
          to enable the Company or any of its affiliates to file and prosecute
          applications for, and to acquire, maintain and enforce, all patents,
          trademarks and copyrights in all countries.

     14. Enforcement. The
          parties hereto agree that the Company and its affiliates would be damaged
          irreparably in the event that any provision of Sections 11, 12 or 13
          of this Agreement was not performed in accordance with its terms or
          was otherwise breached and that money damages would be an inadequate
          remedy for any such nonperformance or breach. Accordingly, the Company and its successors
          and permitted assigns shall be entitled, in addition to other rights
          and remedies existing in their favor, to an injunction or injunctions
          to prevent any breach or threatened breach of any of such provisions
          and to enforce such provisions specifically (without posting a bond
          or other security). The Executive agrees that the Executive will submit
          to the personal jurisdiction of the courts of the State of New York
          in any action by the Company to enforce an arbitration award against
          the Executive or to obtain interim injunctive or other relief pending
          an arbitration decision.  

     15. Representations. The
          Executive represents and warrants to the Company that (a) the execution,
          delivery and performance of this Agreement by the Executive does not
          and will not conflict with, breach, violate or cause a default under
          any contract, agreement, instrument, order, judgment or decree to which
          the Executive is a party or by which the Executive is bound, (b) the
          Executive is not a party to or bound by any employment agreement, noncompetition
          agreement or confidentiality agreement with any other person or entity
          and (c) upon the execution and delivery of this Agreement by the Company,
          this Agreement shall be the valid and binding obligation of the Executive,
          enforceable in accordance with its terms.  

 8 

16. Survival. Sections
    11, 12, 13 and 14 of this Agreement shall survive and continue in full force
    and effect in accordance with their respective terms, notwithstanding any
    termination of the Employment Period.

   17. Arbitration. Except
          as otherwise set forth in Section 14 hereof, any dispute or controversy
          between the Company and the Executive, whether arising out of or relating
          to this Agreement, the breach of this Agreement, or otherwise, shall
          be settled by arbitration in New York, New York administered by the
          American Arbitration Association, with any such dispute or controversy
          arising under this Agreement being so administered in accordance with
          its Commercial Rules then in effect, and judgment on the award rendered
          by the arbitrator may be entered in any court having jurisdiction thereof.
          The arbitrator shall have the authority to award any remedy or relief
          that a court of competent jurisdiction could order or grant, including,
          without limitation, the issuance of an injunction. However, either
          party may, without inconsistency with this arbitration provision, apply
          to any court having jurisdiction over such dispute or controversy and
          seek interim provisional, injunctive or other equitable relief until
          the arbitration award is rendered or the controversy is otherwise resolved.
          Except as necessary in court proceedings to enforce this arbitration
          provision or an award rendered hereunder, or to obtain interim relief,
          neither a party nor an arbitrator may disclose the existence, content
          or results of any arbitration hereunder without the prior written consent
          of the Company and the Executive. 

     18. Indemnification.  With
          respect to any claim, loss, damage or expense (including attorneys’ fees)
          arising from the performance by the Executive of his duties as an officer
          or director of the Company, the Executive shall be entitled to indemnification
          by the Company to the fullest extent permitted by law and to reimbursement
          under any directors’ and officers’ liability insurance of
          the Company that may be in effect from time to time.  

     19.  Notices. All
          notices and other communications required or permitted hereunder shall
          be in writing and shall be deemed given when (a) delivered personally
          or by overnight courier to the following address of the other party
          hereto (or such other address for such party as shall be specified
          by notice given pursuant to this Section) or (b) sent by facsimile
          to the following facsimile number of the other party hereto (or such
          other facsimile number for such party as shall be specified by notice
          given pursuant to this Section), with the confirmatory copy delivered
          by overnight courier to the address of such party pursuant to this
          Section 14:  

 9 

  	If to the Company, to: 
      
	 
	 	 Endurance Services Limited 

        333 Westchester Avenue 

        White Plains, NY 10604 

        Attention: Counsel  
	 	 
	 with a copy to:  
	 	 
	 	 Endurance Specialty Holdings Ltd. 

        Wellesley House

        90 Pitts Bay Road 

        Pembroke HM 08, Bermuda 

        Attention: General Counsel 

        Facsimile: (441) 278-0401 
	 	 

If to the Executive, to the residence address or
  residence facsimile number of the Executive set forth in the records of the
  Company.

   20. Severability. Whenever
          possible, each provision of this Agreement shall be interpreted in
          such manner as to be effective and valid under applicable law, but
          if any provision of this Agreement is held to be invalid, illegal or
          unenforceable in any respect under applicable law or rule in any jurisdiction,
          such invalidity, illegality or unenforceability shall not affect the
          validity, legality or enforceability of any other provision of this
          Agreement or the validity, legality or enforceability of such provision
          in any other jurisdiction, but this Agreement shall be reformed, construed
          and enforced in such jurisdiction as if such invalid, illegal or unenforceable
          provision had never been contained herein.  

     21. Entire
              Agreement. This
              Agreement, including Exhibits A and B hereto, constitutes the entire
              agreement and understanding between the parties with respect to
              the subject matter hereof and supersedes and preempts any prior
              understandings, agreements (including any employment agreements)
              or representations by or between the parties, written or oral,
              which may have related in any manner to the subject matter hereof.
              Any employment agreement entered into between the Company and the
              Executive prior to the date of this Agreement shall be of no further
              force or effect.  

   22.
    Successors and Assigns.
    This Agreement shall be enforceable by
    the Executive and the Executive’s
    heirs, executors, administrators and legal representatives, and by the Company
    and its successors and assigns. In the event that following the termination
    of the Executive’s employment the Executive shall die at a time when
    the Executive is entitled to the continuation of any payments or benefits
    hereunder, such payments or benefits shall continue to be provided to the
    Executive’s heirs, executors, administrators or legal representatives.
    

     23. Governing
              Law. This
              Agreement shall be governed by and construed and enforced in accordance
              with the internal laws of the State of New York, without regard
              to principles of conflict of laws. 
 

 10  

 

24. Amendment
        and Waiver. The provisions of this Agreement
                  may be amended or waived only by the
                  written agreement of the Company and the Executive, and no
                  course of conduct or failure or delay in enforcing the provisions
                  of this Agreement shall affect the validity, binding effect
                  or enforceability of this Agreement. 
   25. Counterparts. This
                  Agreement may be executed in two counterparts, each of which
                  shall be deemed to be an original and both of which together
                  shall constitute one and the same instrument.  

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

	 	 Endurance Services Limited 
    
	 	 
	 	 By: /s/ Kenneth J.
      LeStrange                              
       
	 	 Title: Chairman                                                      
    
	 	 
	 	                     /s/
          Steven W. Carlsen                      

                                 Steve
    W. Carlsen    

 

11 

 EXHIBIT A 

 GENERAL RELEASE

This
    General Release is executed by Steven W. Carlsen (the “Executive”).

   WHEREAS, the Executive’s employment with
    Endurance Services Limited, an English company (the “Company”) is
    terminating; 

   WHEREAS, the Executive has had 21 days to consider
    the form of this General Release;  

   WHEREAS, the Company advised the Executive in
    writing to consult with an attorney before signing this General Release; 
  

   WHEREAS, the Executive acknowledges that the
    amounts to be paid and the benefits to be provided to the Executive pursuant
    to Section 8 of the employment agreement, dated as of April 30, 2004, between
    the Company and the Executive (the “Employment Agreement”), are
    in consideration of, and are sufficient to support, the general release set
    forth in Section 2 of this General Release; and 

   WHEREAS, the Executive understands that the
    Company regards the representations and covenants by the Executive in this
    General Release as material and that the Company is relying on such representations
    and covenants in paying the Executive the amount set forth in Section 8 of
    the Employment Agreement and in providing the Executive the benefits set forth
    in Section 8 of the Employment Agreement.  

   THE EXECUTIVE THEREFORE AGREES AS FOLLOWS: 
  

   1. Payments.
    The Executive’s employment with the Company shall terminate on [ ], and
    the Executive shall receive a certain amount pursuant to Section 8 of the
    Employment Agreement and certain benefits pursuant to Section 8 of the Employment
    Agreement in accordance with the terms and subject to the conditions thereof.
     

   2. General
    Release. (a) General. The Executive,
    on behalf of the Executive and anyone claiming through the Executive, hereby
    agrees not to sue the Company or any division, subsidiary, affiliate or other
    related entity of the Company (whether or not such entity is wholly owned)
    or any of the past, present or future directors, officers, administrators,
    trustees, fiduciaries, employees, agents, attorneys or shareholders of the
    Company or any of such other entities, or the predecessors, successors or
    assigns of any of them (hereinafter referred to as the “Released Parties”),
    and agrees to release and discharge, fully, finally and forever, the Released
    Parties from any and all claims, causes of action, lawsuits, liabilities,
    debts, accounts, covenants, contracts, controversies, agreements, promises,
    sums of money, damages, judgments and demands of any nature whatsoever, in
    law or in equity, both known and unknown, asserted or not asserted, foreseen
    or unforeseen, which the Executive ever had or may presently have against
    any of the Released Parties arising from the beginning of time up to and including
    the effective date of this General Release, including, without limitation,
    all matters in any way related to the  Executive’s
    employment by the Company or any of its affiliates, the terms and conditions
    thereof, any failure to promote the Executive and the termination or cessation
    of the Executive’s employment with the Company or any of its affiliates,
    and including, without limitation, any and all claims arising under the Civil
    Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of
    1866, the Age Discrimination in Employment Act, the Older Workers’ Benefit
    Protection Act, the Family and Medical Leave Act, the Americans With Disabilities
    Act or the Employee Retirement Income Security Act of 1974, each enacted in
    the United States and as may be amended from time to time, or any other United
    States or foreign statute, regulation, ordinance or order, or pursuant to
    any common law doctrine; provided, however, that nothing contained
    in this General Release shall apply to, or release the Company from, any obligation
    of the Company contained in the Employment Agreement or this General Release.
    The consideration payable to the Executive pursuant to Section 8 of the Employment
    Agreement is accepted by the Executive as being in full accord, satisfaction,
    compromise and settlement of any and all claims or potential claims, and the
    Executive expressly agrees that, except for the amount payable to the Executive
    under Section 8 of the Employment Agreement, the benefits to be provided to
    the Executive under Section 8 of the Employment Agreement and as provided
    in Section 2(b) of this General Release, (i) the Executive is not entitled
    to, and shall not receive, any further recovery of any kind from the Company
    or any of the other Released Parties and (ii) in the event of any further
    proceedings whatsoever based upon any matter released herein, neither the
    Company nor any of the other Released Parties shall have any further monetary
    or other obligation of any kind to the Executive, including any obligation
    for any costs, expenses or attorneys’ fees incurred by or on behalf of
    the Executive. The Executive agrees that the 
    Executive has no present or future right to employment with the Company or
    any of the other Released Parties.  

 A-1

(b) Unenforceability.
      In the event that the general release set forth in Section 2(a) of this
      General Release is found by an arbitrator or other appropriate decisionmaker
      to be unenforceable and the Executive subsequently obtains a monetary award
      payable by the Company or any of the other Released Parties, the arbitrator
      or other decisionmaker shall have the authority to reduce such monetary
      award by the lesser of (i) the General Release Consideration and (ii) the
      amount of the monetary award.

   (c)
    Representations.
    The Executive expressly represents and warrants that the Executive is the
    sole owner of the actual and alleged claims, demands, rights, causes of action
    and other matters that are released herein; that the same have not been transferred
    or assigned or caused to be transferred or assigned to any other person, firm,
    corporation or other legal entity; and that the Executive has the full right
    and power to grant, execute and deliver the general release, undertakings
    and agreements contained herein.  

   3. 
    ACKNOWLEDGMENT BY EXECUTIVE.
    BY EXECUTING THIS GENERAL
    RELEASE, THE EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT THE EXECUTIVE HAS READ
    THIS GENERAL RELEASE CAREFULLY, THAT THE  EXECUTIVE
    FULLY UNDERSTANDS ITS TERMS AND CONDITIONS, THAT THE EXECUTIVE HAS BEEN ADVISED
    TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS GENERAL RELEASE, THAT
    THE EXECUTIVE HAS BEEN ADVISED THAT THE EXECUTIVE HAS 21 DAYS WITHIN
    WHICH TO DECIDE WHETHER OR NOT TO EXECUTE THIS GENERAL RELEASE AND THAT THE
    EXECUTIVE INTENDS  TO BE LEGALLY BOUND
    BY IT. DURING A PERIOD OF SEVEN DAYS FOLLOWING THE DATE OF THE EXECUTIVE’S
    EXECUTION OF THIS GENERAL RELEASE, THE EXECUTIVE SHALL HAVE THE RIGHT TO REVOKE
    THIS GENERAL RELEASE BY SERVING WITHIN SUCH PERIOD WRITTEN NOTICE OF REVOCATION.
     

  

 A-2 

4. Entire
        Agreement. The Employment Agreement and
        this General Release constitute the entire understanding between the
        parties. The Executive has not relied on any oral statements that are
        not included in the Employment Agreement or this General Release.

   5. Severability.
    If any provision of this General Release shall be held invalid or unenforceable,
    such invalidity or unenforceability shall not affect any other provision hereof,
    and this General Release shall be construed and enforced as if such provision
    had not been included herein.  

   6. Governing
    Law. This General Release shall be construed,
    interpreted and applied in accordance with the internal laws of the State
    of New York without regard to the principles of conflicts of laws. 

	Date: _____________________________________	 	 ____________________________________________
	 	 	Steven W. Carlsen 

 A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]