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EXHIBIT 4.4  

 
 

$125,000,000
  
    RFS PARTNERSHIP, L.P.
  RFS 2002 FINANCING, INC.
  
    9.75% Senior Notes due 2012
  
    REGISTRATION RIGHTS AGREEMENT    
  

February 26, 2002  

Credit
Suisse First Boston Corporation

Banc of America Securities LLC

c/o Credit Suisse First Boston Corporation

Eleven Madison Avenue

New York, New York 10010-3629 

Dear
Sirs: 

        RFS
Partnership L.P., a Tennessee limited partnership (the "Company"), and RFS 2002 Financing, Inc., a Tennessee corporation
("Finance," and together with the Company, the "Issuers"), proposes to issue and sell to Credit Suisse
First Boston Corporation and Banc of America Securities LLC (collectively, the "Initial Purchasers"), as representatives of the purchasers listed on
Schedule A to the Purchase Agreement, dated February 21, 2002 (the "Purchase Agreement"), among the Issuers, the Guarantors (as defined
below) and the Initial Purchasers, upon the terms set forth in the Purchase Agreement, $125,000,000 aggregate principal amount of their 9.75% Senior Notes due 2012 (the
"Initial Notes") to
be guaranteed by RFS Hotel Investors, Inc., a Tennessee corporation, and RFS Leasing VII, Inc., a Tennessee corporation (collectively, the
"Guarantors," and together with the Issuers and any future guarantor of the Notes, the "Obligors"). The
Initial Notes will be issued pursuant to an Indenture, dated February 26, 2002 (the "Indenture"), among the Issuers, the Guarantors and U.S. Bank
National Association, as trustee (the "Trustee"). As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Obligors hereby
agree with the Initial Purchasers, for the benefit of the Initial Purchasers and the holders of the Notes (as defined below) (collectively the
"Holders"), as follows: 

        1.    Registered Exchange Offer. Unless not permitted by applicable law, the Obligors shall prepare and, not later than
60 days (such 60th day being a "Filing Deadline") after the date on which the Initial Purchasers purchase the Initial Notes pursuant to the
Purchase Agreement (the "Closing Date"), file with the Securities and Exchange Commission (the
"Commission") a registration statement (the "Exchange Offer Registration Statement") on an appropriate
form under the Securities Act of 1933, as amended (the "Securities Act"), with respect to a proposed offer (the "Registered
Exchange Offer") to the Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Notes, a like aggregate principal amount of debt securities of the Obligors issued
under the Indenture, identical (other than with respect to registration rights, liquidated damages and transfer restrictions) in all material respects to the Initial Notes and registered under the
Securities Act (the "Exchange Notes"). The Obligors shall use their best efforts to (i) cause such Exchange Offer Registration Statement to
become effective under the Securities Act at the earliest possible time, but in any event within 150 days after the Closing Date (such 150th day being an "Effectiveness
Deadline") and (ii) keep the Exchange Offer Registration Statement effective for not less than 20 business days (or longer, if required by applicable law) after the date
notice of the Registered Exchange Offer is mailed to the Holders (such period being called the "Exchange Offer Registration Period"). 

        If
the Obligors commence the Registered Exchange Offer, the Obligors (i) will be entitled to consummate the Registered Exchange Offer 20 business days after such commencement
(provided that the Obligors have accepted all the Initial Notes theretofore validly tendered in accordance with the terms of the Registered Exchange
Offer) and (ii) will be required to consummate the Registered Exchange Offer no later than 30 business days after the date on which the Exchange Offer Registration Statement is declared
effective (such 30th business day being the "Consummation Deadline"). Subject to the provisions contained in Section 2 hereof, following the
consummation of the Registered Exchange Offer and the issuance of the Exchange Notes thereunder, the Company will have no further obligation to register any Initial Notes hereunder. 

        Following
the declaration of the effectiveness of the Exchange Offer Registration Statement, the Obligors shall promptly commence the Registered Exchange Offer, it being the objective of
such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities electing to exchange the Initial Notes for Exchange Notes (assuming that such Holder is not an affiliate of any
Obligor within the meaning of the Securities Act, acquires the Exchange Notes in the ordinary course of such Holder's business and has no arrangements or understandings (or any intention to engage in
any
arrangement or understanding) with any person to participate in the distribution of the Exchange Notes and is not prohibited by any law or policy of the Commission from participating in the Registered
Exchange Offer) to trade such Exchange Notes from and after their receipt without any limitations or restrictions under the Securities Act and without material restrictions under the Notes laws of the
several states of the United States. 

        The
Obligors and Initial Purchasers acknowledge that, pursuant to current interpretations by the Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer electing to exchange Initial Notes, acquired for its own account as a result of market making activities or other
trading activities, for Exchange Notes (an "Exchanging Dealer"), is required to deliver a prospectus containing the information in substantially the
same form set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer" section, and
(c) Annex C hereto in the "Plan of Distribution" section of such prospectus in connection with a sale of any such Exchange Notes received by such Exchanging Dealer pursuant to the Registered
Exchange Offer and (ii) an Initial Purchaser that elects to sell Notes (as defined below) acquired in exchange for Initial Notes constituting any portion of an unsold allotment, is required to
deliver a prospectus containing the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale. The content and
location of Annexes A, B and C may be altered if so requested by the staff of the Commission. 

        The
Obligors shall use their best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the prospectus contained therein, in order to permit
such prospectus to be lawfully delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must comply with such requirements
in order to resell the Exchange Notes; provided, however, that (i) in the case where such
prospectus and any amendment or supplement thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of 180 days and the date on which all
Exchanging Dealers and the Initial Purchasers have sold all Exchange Notes held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Obligors shall make
such prospectus and any amendment or supplement thereto available to any broker-dealer for use in connection with any resale of any Exchange Notes for a period of not less than 180 days after
the consummation of the Registered Exchange Offer. 

        If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds Initial Notes acquired by it as part of its initial distribution, the Obligors, simultaneously with
the delivery of the Exchange Notes pursuant to the Registered Exchange Offer, shall issue and deliver to such Initial Purchaser upon the written request of such Initial Purchaser (delivered at least
two days in advance of the consummation of the Registered Exchange Offer), in exchange (the "Private Exchange") for the Initial Notes held by such
Initial Purchaser, a like principal amount of debt securities of the Obligors 

issued under the Indenture and identical in all material respects to the Initial Notes (the "Private Exchange Notes"). The Initial Notes, the Exchange
Notes and the Private Exchange Notes are herein collectively called the "Notes". 

        In
connection with the Registered Exchange Offer, the Obligors shall: 

        (a)  mail
to each Holder a copy of the prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related
documents; 

        (b)  keep
the Registered Exchange Offer open for not less than 20 business days (or longer, if required by applicable law) after the date notice thereof is mailed to the
Holders; 

        (c)  utilize
the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee; 

        (d)  permit
Holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and 

        (e)  otherwise
comply with all applicable laws. 

        As
soon as practicable after the close of the Registered Exchange Offer or the Private Exchange, as the case may be, the Obligors shall: 

        (x)  accept
for exchange all the Notes validly tendered and not withdrawn pursuant to the Registered Exchange Offer and the Private Exchange; 

        (y)  deliver
to the Trustee for cancellation (or authorize the Trustee as custodian of the Initial Notes to cancel) all the Initial Notes so accepted for exchange; and 

        (z)  cause
the Trustee to authenticate and deliver promptly to each Holder of the Initial Notes, Exchange Notes or Private Exchange Notes, as the case may be, equal in
principal amount to the Initial Notes of such Holder so accepted for exchange. 

        The
Indenture will provide that the Exchange Notes will not be subject to the transfer restrictions set forth in the Indenture and that all the Notes will vote and consent together on
all matters as one class and that none of the Notes will have the right to vote or consent as a class separate from one another on any matter. 

        Interest
on each Exchange Note and Private Exchange Note issued pursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment date on
which interest was paid on the Initial Notes surrendered in exchange therefor or, if no interest has been paid on the Initial Notes, from the date of original issue of the Initial Notes. 

        Each
Holder participating in the Registered Exchange Offer shall be required to represent to the Obligors that at the time of the consummation of the Registered Exchange Offer
(i) any Exchange Notes received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no arrangements or understanding with any person to
participate in the distribution of the Notes within the meaning of the Securities Act, (iii) such Holder is not an "affiliate," as defined in Rule 405 of the Securities Act, of the
Obligors or if it is an affiliate, such Holder will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not
a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the Exchange Notes, (v) if such Holder is a broker-dealer, that it will receive Exchange Notes
for its own account in exchange for Initial Notes that were acquired as a result of market-making activities or other trading activities and that it will be required to acknowledge that it will
deliver a prospectus in connection with any resale of such Exchange Notes, and (vi) any other representations and warranties required by law or Commission policy.. 

        Notwithstanding
any other provisions hereof, the Obligors will ensure that (i) any Exchange Offer Registration Statement and any amendment thereto and any prospectus forming part
thereof and any 

supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

        2.    Shelf Registration. If, (i) because of any change in law or Commission policy or in applicable interpretations of
such law or policy by the staff of the Commission, the Obligors are not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange
Offer is not consummated by the Consummation Deadline and such consummation could not reasonably be expected to occur within 45 days after the Consummation Deadline, or (iii) any Holder
of Notes which are Transfer Restricted Securities notifies the Company prior to the 20thbusiness day following the consummation of the Registered Exchange Offer that (a) it is
prohibited by law or Commission policy from participating in the Registered Exchange Offer, (b) it may not resell the Notes acquired by it in the Registered Exchange Offer to the public without
delivering a prospectus, and the prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by it, or (c) it is a broker-dealer and holds
Notes acquired directly from the Issuers or any of the Issuer's affiliates, the Obligors shall take the following actions (the date on which any of the
conditions described in the foregoing clauses (i), (ii) or (iii) occur, including in the case of clause (iii) the receipt of the required notice, being a
"Trigger Date"): 

        (a)  The
Obligors shall promptly (but in no event more than 30 days after the Trigger Date (such 30th day being a "Filing
Deadline")) file with the Commission and thereafter use their best efforts to cause to be declared effective no later than 60 days after the Trigger Date (such 60th day
being an "Effectiveness Deadline") a registration statement (the "Shelf Registration Statement" and,
together with the Exchange Offer Registration Statement, a "Registration Statement") on an appropriate form under the Securities Act relating to the
offer and sale of the Transfer Restricted Securities by the Holders thereof from time to time in accordance with the methods of distribution set forth in the Shelf Registration Statement and
Rule 415 under the Securities Act (hereinafter, the "Shelf Registration"); provided,  however, that no
Holder (other than an Initial Purchaser) shall be entitled to have the Notes held by it covered by such Shelf Registration Statement
unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder. 

        (b)  The
Obligors shall use their best efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Notes, for a period of two years (or for such longer period if extended pursuant to Section 3(j) below) from the date of its effectiveness or
such shorter period that will terminate when all the Notes covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as
defined in Rule 144 under the Securities Act, or any successor rule thereof). The Obligors shall be deemed not to have used their best efforts to keep the Shelf Registration Statement effective
during the requisite period if any of them voluntarily takes any action that would result in Holders of Notes covered thereby not being able to offer and sell such Notes during that period, unless
such action is required by applicable law. 

        (c)  Notwithstanding
any other provisions of this Agreement to the contrary, the Obligors shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements
of the Securities Act and the rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or 

necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

        3.    Registration Procedures. In connection with any Shelf Registration contemplated by Section 2 hereof and, to the
extent applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply: 

        (a)  The
Obligors shall (i) furnish to each Initial Purchaser, prior to the filing thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement,
if any, to the prospectus included therein and, in the event that an Initial Purchaser (with respect to any portion of an unsold allotment from the original offering) is participating in the
Registered Exchange Offer or the Shelf Registration, the Obligors shall use their best efforts to reflect in each such document, when so filed with the Commission, such comments as such Initial
Purchaser reasonably may propose in a timely manner so as not to interfere materially with the Obligors' ability to meet the deadlines provided herein; (ii) include the information set forth in
Annex A hereto on the cover, in Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer" section and in Annex C hereto in the "Plan of Distribution" section of
the prospectus forming a part of the Exchange Offer Registration Statement and include the information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered
Exchange Offer; (iii) if requested by an Initial Purchaser, include the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in
the prospectus forming a part of the Exchange Offer Registration Statement; (iv) include within the prospectus contained in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution," reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or policies made by the staff of the Commission with respect to the
potential "underwriter" status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Notes Exchange Act of 1934, as amended (the "Exchange Act")) of
Exchange Notes received by such broker-dealer in the Registered Exchange Offer (a "Participating Broker-Dealer"), whether such positions or policies
have been publicly disseminated by the staff of the Commission or such positions or policies, in the reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the Commission; and (v) in the case of a Shelf Registration Statement, include the names of the Holders who propose
to sell Notes pursuant to the Shelf Registration Statement as selling securityholders. Any information required by Initial Purchasers or Holders, or their respective representatives, shall be provided
to the Obligors in a timely manner so as not to interfere materially with the Obligors' ability to meet any deadline provided herein. 

        (b)  The
Obligors shall give written notice to the Initial Purchasers, the Holders of the Notes and any Participating Broker-Dealer from whom the Obligors have received prior
written notice that it will be a Participating Broker-Dealer in the Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend
the use of the prospectus until the requisite changes have been made): 

        (i)    when
the Registration Statement or any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective; 

        (ii)  of
any request by the Commission for amendments or supplements to the Registration Statement or the prospectus included therein or for additional information; 

        (iii)  of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

        (iv)  of
the receipt by the Obligors or their legal counsel of any notification with respect to the suspension of the qualification of the Notes for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; and 

        (v)  of
the happening of any event that requires the Obligors to make changes in the Registration Statement or the prospectus in order that the Registration Statement or the
prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the
prospectus, in light of the circumstances under which they were made) not misleading. 

        (c)  The
Obligors shall make every reasonable effort to obtain the withdrawal at the earliest possible time of any order suspending the effectiveness of the Registration
Statement. 

        (d)  The
Obligors shall furnish to each Holder of Notes included within the coverage of the Shelf Registration, without charge, one copy of the Shelf Registration Statement
and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including those, if any,
incorporated by reference). 

        (e)  The
Obligors shall deliver to each Exchanging Dealer and each Initial Purchaser, and to any other Holder who so requests, without charge, at least one copy of the
Exchange Offer Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder requests, all
exhibits thereto (including those incorporated by reference). 

        (f)    The
Obligors shall, during the Shelf Registration Period, deliver to each Holder of Notes included within the coverage of the Shelf Registration, without charge, as many
copies of the prospectus (including each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably request. The
Obligors hereby consent, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by each of the selling Holders of the Notes in connection with
the offering and sale of the Notes covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 

        (g)  The
Obligors shall deliver to each Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer Registration Statement and any amendment or supplement thereto as such
persons may reasonably request. The Obligors hereby consent, subject to the provisions of this Agreement, to the use of the
prospectus or any amendment or supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer and such other persons required to deliver a prospectus following the
Registered Exchange Offer in connection with the offering and sale of the Exchange Notes covered by the prospectus, or any amendment or supplement thereto, included in such Exchange Offer Registration
Statement. 

        (h)  Prior
to any public offering of the Notes pursuant to any Registration Statement the Obligors shall register or qualify or cooperate with the Holders of the Notes
included therein and their respective counsel in connection with the registration or qualification of the Notes for offer and sale under the Notes or "blue sky" laws of such states of the United
States as any Holder of Notes reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Notes covered by
such Registration Statement; provided, however, that the Obligors shall not be required to
(i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in
any jurisdiction where it is not then so subject. 

        (i)    The
Obligors shall cooperate with the Holders of the Notes to facilitate the timely preparation and delivery of certificates representing the Notes to be sold pursuant
to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request a reasonable period of time prior to sales of the Notes
pursuant to such Registration Statement. 

        (j)    Upon
the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the Obligors are
required to maintain an effective Registration Statement, the Obligors shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to
the related prospectus and any other required document so that, as thereafter delivered to Holders of the Notes or purchasers of Notes, the prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If
the Obligors notify the Initial Purchasers, the Holders of the Notes and any known Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 3(b) above
to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of the Notes and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement provided for
in Section 1 above shall each be extended by the number of days from and including the date of the giving of such notice to and including the date when the Initial Purchasers, the Holders of
the Notes and any known Participating Broker-Dealer shall have received such amended or supplemented prospectus pursuant to this Section 3(j). 

        (k)  Not
later than the effective date of the applicable Registration Statement, the Obligors will provide a CUSIP number for the Initial Notes, the Exchange Notes or the
Private Exchange Notes, as the case
may be, and provide the applicable trustee with printed certificates for the Initial Notes, the Exchange Notes or the Private Exchange Notes, as the case may be, in a form eligible for deposit with
The Depository Trust Company. 

        (l)    The
Obligors will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registered Exchange Offer or the Shelf
Registration and will make generally available to their security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning
with the first month of the Obligors' first fiscal quarter commencing after the effective date of the Registration Statement, which statement shall cover such 12-month period. 

        (m)  The
Obligors shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and containing such changes, if any, as
shall be necessary for such qualification. In the event that such qualification would require the appointment of a new trustee under the Indenture, the Obligors shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture. 

        (n)  The
Obligors may require each Holder of Notes to be sold pursuant to the Shelf Registration Statement to furnish to the Obligors such information regarding the Holder
and the distribution of the Notes as the Obligors may from time to time reasonably require for inclusion in the Shelf Registration Statement, and the Obligors may exclude from such registration the
Notes of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. To the extent any such Holder is excluded from the Shelf Registration
Statement pursuant to this clause (n), such Holder shall not be entitled to Liquidated Damages provided for herein from and after the date of such exclusion. 

        (o)  The
Obligors shall enter into such customary agreements (including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as
any Holder of Notes shall reasonably request in order to facilitate the disposition of the Notes pursuant to any Shelf Registration; provided that in no
event shall the Obligors be responsible for the payment of broker, dealer or underwriting discounts or commissions (or their attorney's or expert's fees or expenses) or transfer taxes with respect to
the sale of the Notes. 

        (p)  In
the case of any Shelf Registration, the Obligors shall (i) make reasonably available for inspection by the Holders of the Notes, any underwriter participating
in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders of the Notes or any such underwriter all relevant financial and
other records, pertinent corporate documents and properties of the Obligors and (ii) cause the Obligors' officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Notes or
any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however, that the
foregoing inspection and information gathering shall be coordinated on behalf of the Initial Purchasers by you and on behalf of the other parties, by one counsel designated by and on behalf of such
other parties as described in Section 4 hereof. 

        (q)  In
the case of any Shelf Registration, the Obligors, if requested by any Holder of Notes covered thereby, shall cause (i) their counsel to deliver an opinion and
updates thereof relating to the Notes in customary form and substantially similar in scope to the opinion provided under the Purchase Agreement, with such changes as are customary with the preparation
of a Registration Statement (and (if appropriate) such changes as are customary in connection with an underwritten offering) addressed to such Holders and the Managing Underwriters, if any, thereof
and dated, in the case of the initial opinion, the effective date of such Shelf Registration Statement (it being agreed that the matters to be covered by such opinion shall include, without
limitation, the due incorporation and good standing of the Obligors and their subsidiaries; the qualification of the Obligors and their subsidiaries to transact business as foreign corporations; the
due authorization, execution and delivery of any relevant agreement referred to in Section 3(o) hereof; the due authorization, execution, authentication and issuance, and the validity and
enforceability, of the applicable Notes; the absence of material legal or governmental proceedings involving the Obligors and their subsidiaries; the absence of governmental approvals required to be
obtained in connection with the Shelf Registration Statement, the offering and sale of the applicable Notes, or any agreement of the type referred to in Section 3(o) hereof; the compliance as
to form of such Shelf Registration Statement and any documents incorporated by reference therein and of the Indenture with the requirements of the Securities Act and the Trust Indenture Act,
respectively; and, as of the date of the opinion and as of the effective date of the Shelf Registration Statement or most recent post-effective amendment thereto, as the case may be, the
absence from such Shelf Registration Statement and the prospectus included therein, as then amended or supplemented, and from any documents incorporated by reference therein of an untrue statement of
a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any such documents, in the
light of the circumstances existing at the time that such documents were filed with the Commission under the Exchange Act); (ii) their respective officers to execute and deliver all customary
documents and certificates and updates thereof requested by any underwriters of the applicable Notes and (iii) their independent public accountants and the independent public accountants with
respect to any other entity for which financial information is provided in the Shelf Registration Statement to provide to the selling Holders of the applicable Notes and any underwriter therefor a
comfort letter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary underwritten offerings, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72. 

        (r)  In
the case of the Registered Exchange Offer, if requested by any Initial Purchaser or any known Participating Broker-Dealer, the Obligors shall cause (i) their
counsel to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed opinion in the form set forth in Section 6(c) of the Purchase Agreement with such changes as are
customary in connection with the preparation of a Registration Statement and (ii) their independent public accountants and the independent public accountants with respect to any other entity
for which financial information is provided in the Registration Statement to deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort letter, in customary form, meeting the
requirements as to the substance 

thereof as set forth in Sections 6(a) and 6(f) of the Purchase Agreement, with appropriate date changes. 

        (s)  If
a Registered Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Initial Notes by Holders to the Obligors (or to such other Person as
directed by the Obligors) in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, the Obligors shall mark, or caused to be marked, on the Initial Notes so exchanged that
such Initial Notes are being canceled in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be; in no event shall the Initial Notes be marked as paid or otherwise
satisfied. 

        (t)    The
Obligors will use their best efforts to (a) if the Initial Notes have been rated prior to the initial sale of such Initial Notes, confirm such ratings will
apply to the Notes covered by a Registration Statement, or (b) if the Initial Notes were not previously rated, cause the Notes covered by a Registration Statement to be rated with the
appropriate rating agencies, if so requested by Holders of a majority in aggregate principal amount of Notes covered by such Registration Statement, or by the Managing Underwriters, if any. 

        (u)  In
the event that any broker-dealer registered under the Exchange Act shall underwrite any Notes or participate as a member of an underwriting syndicate or selling group
or "assist in the distribution" (within the meaning of the Conduct Rules (the "Rules") of the National Association of Notes Dealers, Inc.
("NASD")) thereof, whether as a Holder of such Notes or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Obligors will assist such broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall
so require, engaging a "qualified independent underwriter" (as defined in Rule 2720) to participate in the preparation of the Registration Statement relating to such Notes, to exercise usual
standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent,
to recommend the yield of such Notes, (ii) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 5 hereof and
(iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 

        (v)  The
Obligors shall use their best efforts to take all other steps reasonably necessary to effect the registration of the Notes covered by a Registration Statement
contemplated hereby. 

        4.    Registration Expenses. (a) All expenses incident to the Obligors' performance of and compliance with this Agreement
will be borne by the Obligors, regardless of whether a Registration Statement is ever filed or becomes effective, including, without limitation: 

        (i)    all
registration and filing fees and expenses; 

        (ii)  all
fees and expenses of compliance with federal securities and state "blue sky" or securities laws; 

        (iii)  all
expenses of printing (including printing certificates for the Notes to be issued in the Registered Exchange Offer and the Private Exchange and printing of
prospectuses), reasonable messenger and delivery services and telephone; 

        (iv)  all
fees and disbursements of counsel for the Obligors; and 

        (v)  all
fees and disbursements of independent certified public accountants of the Obligors (including the expenses of any customary audit and comfort letters required by or
incident to such performance). 

        The
Obligors will bear their internal expenses (including, without limitation, all salaries and expenses of their respective officers and employees performing legal or accounting
duties), the expenses of any annual audit, the fees and expenses of any person, including special experts, retained by the 

Obligors; provided, however, that the Obligors shall not be responsible for the payment of broker, dealer or underwriter discounts (or their attorney's or expert's fees) or commissions or transfer
taxes. 

        5.    Indemnification. (a) The Obligors agree to indemnify and hold harmless each Holder of Notes, any Participating
Broker-Dealer and each person, if any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act (each Holder, any Participating
Broker-Dealer and such controlling persons are referred to collectively as the "Indemnified Parties") from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of the Notes) to
which each Indemnified Party may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action in respect thereof; provided, however, that
(i) the Obligors shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon
and in conformity with written information pertaining to such Holder and furnished to
the Obligors by or on behalf of such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating
Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities purchased the Notes concerned, to the extent that a prospectus relating to such Notes was required to be
delivered by such Holder or Participating Broker-Dealer under the Securities Act in connection with such purchase and any such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Notes to such person, a copy of the final prospectus if
the Obligors had previously furnished copies thereof to such Holder or Participating Broker-Dealer; and provided,  further, that this indemnity agreement
will be in addition to any liability which the Obligors may otherwise have to such Indemnified Party. The
Obligors shall also indemnify any underwriters, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same
extent as provided above with respect to the indemnification of the Holders of the Notes if requested by such Holders. 

        (b)  Each
Holder of Notes, severally and not jointly, will indemnify and hold harmless the Obligors and each person, if any, who controls the Obligors within the meaning of
the Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which the Obligors or any such controlling person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise
out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Obligors by or on
behalf of such Holder specifically for inclusion therein; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Obligors for any legal or other
expenses reasonably incurred by the Obligors or any such controlling person in 

connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Obligors or any of their controlling persons. 

        (c)  Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above, unless such failure to notify materially prejudices the indemnifying party's ability to defend the against the action. In case any such
action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except
with the
consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this Section 5 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such
indemnified party in connection with the defense thereof. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes an unconditional
release of such indemnified party from all liability on any claims that are the subject matter of such action, and does not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party. 

        (d)  If
the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the
one hand and the indemnified party on the other from the exchange of the Notes, pursuant to the Registered Exchange Offer, or (ii) if the allocation provided by the foregoing clause (i)
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Obligors on the one hand or such Holder or such other
indemnified party, as the case may be, on the other, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount
paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other
provision of this Section 5(d), the Holders of the Notes shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale
of the Notes pursuant to a Registration Statement exceeds the amount of damages which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to 

contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such indemnified party within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such indemnified party and each person, if any, who controls the Obligors within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution as the Obligors. 

        (e)  The
agreements contained in this Section 5 shall survive the sale of the Notes pursuant to a Registration Statement and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 

        6.    Liquidated Damages Under Certain Circumstances. (a) Liquidated damages ("Liquidated
Damages") with respect to the Notes shall be assessed as follows if any of the following events occur (each such event in clauses (i) through (iv) below being
herein called a "Registration Default"): 

        (i)    the
Exchange Offer Registration Statement required by this Agreement is not filed with the Commission on or prior to the applicable Filing Deadline; 

        (ii)  the
Shelf Registration Statement required by this Agreement is not filed with the Commission on or prior to the applicable Filing Deadline; 

        (iii)  any
Registration Statement required by this Agreement is not declared effective by the Commission on or prior to the applicable Effectiveness Deadline; 

        (iv)  the
Registered Exchange Offer has not been consummated on or prior to the Consummation Deadline; or 

        (v)  any
Registration Statement required by this Agreement has been declared effective by the Commission but (A) such Registration Statement thereafter ceases to be
effective or (B) such Registration Statement or the related prospectus ceases to be usable in connection with resales of Transfer Restricted Securities during the periods specified herein
because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statement would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 

        Each
of the foregoing will constitute a Registration Default whatever the reason for any such event and whether it is voluntary or involuntary or is beyond the control of the Obligors or
pursuant to operation of law or as a result of any action or inaction by the Commission. 

        (b)  The
Obligors jointly and severally agree to pay to each Holder of Transfer Restricted Securities affected by a Registration Default an amount equal to $0.05 per week per
$1,000 in principal amount of Transfer Restricted Securities held by such Holder for each week or portion thereof that the Registration Default continues for the first 90-day period
immediately following the occurrence of such Registration Default. The amount of Liquidated Damages shall increase by an additional $0.05 per week per $1,000 in principal amount of Transfer Restricted
Securities with respect to each subsequent 90-day period until all Registration Defaults have been cured. The Obligors shall not be required to pay
Liquidated Damages for more than one Registration Default at any given time. Following the cure of all Registration Defaults, the accrual of Liquidated Damages will cease. 

        (c)  A
Registration Default referred to in Section 6(a)(v) hereof shall be deemed not to have occurred and be continuing in relation to a Shelf Registration
Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to such Shelf
Registration Statement to incorporate annual audited financial information with respect to the Obligors where such post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other material events, with respect to the Obligors that would need to be described in such Shelf 

Registration Statement or the related prospectus and (ii) in the case of clause (y), the Obligors are proceeding promptly and in good faith to amend or supplement such Shelf
Registration Statement and related prospectus to describe such events; provided, however, that in any
case if such Registration Default occurs for a continuous period in excess of 30 days, Liquidated Damages shall be payable in accordance with the above paragraph from the day such Registration
Default occurs until such Registration Default is cured. 

        (d)  Any
amount of Liquidated Damages due pursuant to Section 6(a) hereof will be payable in cash on the regular interest payment dates with respect to the Notes. 

        (e)  "Transfer Restricted Securities" means each Note until the earliest of: (i) the date on which such Note has been
exchanged by a person other than a broker-dealer for a freely transferable Exchange Note in the Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of an Initial Note for an Exchange Note, the date on which such Exchange Note is sold pursuant to the "Plan of Distribution" contemplated by the Exchange Offer Registration Statement to
a purchaser who receives from such broker-dealer on or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which
such Note has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement, or (iv) the date on which such Note is distributed to the
public pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act. 

        7.    Rules 144 and 144A. The Obligors shall use their best efforts to file the reports required to be filed by it under
the Securities Act and the Exchange Act in a timely manner and, if at any time the Obligors are not required to file such reports, they will, upon the reasonable request of any Holder of Notes, make
publicly available other information so long as legally required to permit sales of their Notes pursuant to Rules 144 and 144A under the Securities Act. The Obligors covenant that it will take
such further action as any Holder of Notes may reasonably request, all to the extent required from time to time to enable such Holder to sell Notes without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A under the Securities Act (including the requirements of Rule 144A(d)(4) under the Securities Act). The Obligors will
provide a copy of this Agreement to prospective purchasers of Initial Notes identified to the Obligors by the Initial Purchasers upon request. Upon the request of any Holder of Initial Notes, the
Obligors shall deliver to
such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Obligors to
register any of their Notes pursuant to the Exchange Act. 

        8.    Underwritten Registrations. If any of the Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the offering (the "Managing
Underwriters") will be selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted Securities to be included in such offering. 

        No
person may participate in any underwritten registration hereunder unless such person (i) agrees to sell such person's Transfer Restricted Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

        In
any underwritten registration, the Obligors shall not be responsible for (i) the payment of brokers' dealers' and underwriting discounts and commissions and brokers', dealers'
and underwriters' counsel or other expert fees, or (ii) transfer taxes with respect to the sale of the Notes. 

        9.    Miscellaneous. 

        (a)  Remedies. The Obligors hereby acknowledge and agree that any failure by any of them to comply with their obligations
under Sections 1 and 2 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that 

it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Obligors' obligations under Sections 1 and 2 hereof. The Obligors further agree to waive the defense in any action for specific performance that a remedy at law would be
adequate. 

        (b)  No Inconsistent Agreements. The Obligors will not on or after the date of this Agreement enter into any agreement with
respect to the Notes that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not
in any way conflict with and are not inconsistent with the rights granted to the holders of the Obligors' Notes under any agreement in effect on the date hereof. 

        (c)  Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by the Obligors and the written consent of the Holders of a majority in principal amount of the Notes affected by such
amendment, modification, supplement, waiver or consents. 

        (d)  Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, first-class mail, facsimile transmission or air courier which guarantees overnight delivery: 

        (1)  if
to a Holder of Notes, at the most current address given by such Holder to the Obligors. 

        (2)  if
to the Initial Purchasers, to: 

Credit
Suisse First Boston Corporation

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group

with
a copy to: 

Skadden,
Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071

Fax No.: (213) 687-5600

Attention: Nicholas P. Saggese, Esq.

        (3)  if
to any Obligor, at its address as follows: 

850
Ridge Lake Boulevard, Suite 300

Memphis, TN 38120

Fax No.: (901) 818-5260

Attention: Kevin Luebbers, Executive Vice President, Treasurer and Chief Financial Officer

with
a copy to: 

Hunton &
Williams

Riverfront Plaza—East Tower

951 E. Byrd Street

Richmond, VA 23219

Fax No.: (804) 788-8218

Attention: David C. Wright, Esq.

        All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days after being deposited in the
mail, postage 

prepaid, if mailed; when receipt is acknowledged by recipient's facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier guaranteeing
next day delivery. 

        (e)  Third Party Beneficiaries. The Holders shall be third party beneficiaries to the agreements made hereunder between the
Obligors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such enforcement necessary or
advisable to protect their rights or the rights of Holders hereunder. 

        (f)    Successors and Assigns. This Agreement shall be binding upon the Obligors and their respective successors and assigns. 

        (g)  Counterparts. This Agreement may be executed in any number of counterparts and by the 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. 

        (h)  Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. 

        (i)    Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 

        (j)    Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby. 

        (k)  Notes Held by the Obligors. Whenever the consent or approval of Holders of a specified percentage of principal amount of
Notes is required hereunder, any Notes held by the Obligors or their affiliates (other than subsequent Holders of Notes if such subsequent Holders are deemed to be affiliates solely by reason of their
holdings of such Notes) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

        (l)    Service of Process; Submission to Jurisdiction; Waiver of Immunities. By the execution and delivery of this Agreement,
each of the Obligors hereby (i) submits to the nonexclusive jurisdiction of any suit or proceeding arising out of or relating to this Agreement that may be instituted in any federal or state
court in the State of New York or brought under federal or state securities laws, and (ii) agrees that service of process to its address in Section 9(d) hereof shall be deemed in every
respect effective service of process upon it in any such suit or proceeding. To the extent that any Obligor may acquire any immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, it hereby irrevocably waives such immunity in
respect of this Agreement, to the fullest extent permitted by law. 

        (m)  Business Days. For purposes of this Agreement, a "business day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York, New York are authorized or obligated by law or executive order to close. If any deadline contained herein falls on a day that is
not a business day, such deadline shall be deemed to be the next business day. In connection with any Effectiveness Deadline or Filing Deadline, in addition to the foregoing a "day" shall mean a day
the Commission is open during normal business hours and accepting filings. 

[remainder of page intentionally left blank; signature pages follow] 

        If
the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Initial Purchasers and the Obligors in accordance with its terms. 

	

 	
 	

 	
 	

Very truly yours,
	

 	
 	

 	
 	

RFS PARTNERSHIP, L.P.
	

 	
 	

 	
 	

By:	
 	

/s/  RFS HOTEL INVESTORS, INC.      

	 	 	 	 	Its:	 	General Partner
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS 2002 FINANCING, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS HOTEL INVESTORS, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS LEASING VII, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer

	

The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above written.	
 	

 	
 	

 
	

CREDIT SUISSE FIRST BOSTON CORPORATION	
 	

 	
 	

 
	

By:	
 	

/s/  DON KINSEY      	
 	

 	
 	

 
	 	 	
	 	 	 	 
	Title:	 	Managing Director	 	 	 	 
	

BANC OF AMERICA SECURITIES LLC	
 	

 	
 	

 
	

By:	
 	

/s/  STEPHAN JAEGER      
	
 	

 	
 	

 
	Title:	 	Vice President	 	 	 	 

ANNEX A  

        Each
broker-dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Notes. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Notes received in exchange
for Initial Notes where such Initial Notes were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Issuers have agreed that, for a period of
180 days after the Expiration Date (as defined herein), it will make this Prospectus available to any broker-dealer for use in connection with any such resale. See "Plan of Distribution." 

ANNEX B  

        Each
broker-dealer that receives Exchange Notes for its own account in exchange for Initial Notes, where such Initial Notes were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Notes. See "Plan of Distribution." 

ANNEX C  

PLAN OF DISTRIBUTION  

        Each broker-dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Notes. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Notes
received in exchange for Initial Notes where such Initial Notes were acquired as a result of market-making activities or other trading activities. The Issuers have agreed that, for a period of
180 days after the Expiration Date, it will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale. In addition, until
                        , 200    , all dealers effecting transactions in the Exchange Notes may be required to
deliver a prospectus.(1) 

	(1)
	In
addition, the legend required by Item 502(e) of Regulation S-K will appear on the back cover page of the Exchange Offer prospectus. 

        The
Issuers will not receive any proceeds from any sale of Exchange Notes by broker-dealers. Exchange Notes received by broker-dealers for their own account pursuant to the Exchange
Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Notes
or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made
directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any such Exchange
Notes. Any broker-dealer that resells Exchange Notes that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such
Exchange Notes may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit on any such resale of Exchange Notes and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

        For
a period of 180 days after the Expiration Date the Issuers will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any
broker-dealer that requests such documents in the Letter of Transmittal. The Issuers have agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Notes) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Notes (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act. 

ANNEX D  

o    CHECK
HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO. 

	

 	
 	

Name:	
 	

 	
 	

 
	 	 	 	 	
	 	 
	

 	
 	

Address:	
 	

 	
 	

 
	 	 	 	 	
	 	 

        If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange
Notes. If the undersigned is a broker-dealer that will receive Exchange Notes for its own account in exchange for Initial Notes that were acquired as a result of market-making activities or other
trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a prospectus, the undersigned
will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

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$125,000,000 RFS PARTNERSHIP, L.P. RFS 2002 FINANCING, INC. 9.75% Senior Notes due 2012 REGISTRATION RIGHTS AGREEMENT<Page>

                                                                   EXHIBIT 4.5

                                                                  CONFORMED COPY

                             SHAREHOLDERS AGREEMENT

                                  BY AND AMONG

                        THE SHAREHOLDERS SIGNATORY HERETO

                                       AND

                             ARCH CAPITAL GROUP LTD.

                          DATED AS OF NOVEMBER 20, 2001

                              CONFORMED TO REFLECT
               AMENDMENTS DATED JANUARY 3, 2002 AND MARCH 15, 2002

<Page>

                                TABLE OF CONTENTS

                                                                          PAGE

                                    ARTICLE I

                               CERTAIN DEFINITIONS

Section 1.1.   Certain Definitions.........................................2

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

Section 2.1.   Representations and Warranties of the Company...............9
Section 2.2.   Representations and Warranties of Warburg...................9
Section 2.3.   Representations and Warranties of H&F......................10
Section 2.4.   Representations and Warranties of GE.......................10
Section 2.5.   Representations and Warranties of Trident..................10
Section 2.6.   Representations and Warranties of Farallon.................11

                                   ARTICLE III

                          VOTING; BOARD REPRESENTATION

Section 3.1.   Board of Directors.........................................11
Section 3.2.   Committees of the Board....................................13
Section 3.3.   Investor Protection Matters................................14
Section 3.4.   Voting.....................................................16
Section 3.5.   Chairman of the Company....................................17
Section 3.6.   Certain Transactions.......................................17

                                   ARTICLE IV

                               REGISTRATION RIGHTS

Section 4.1.   Demand Registrations.......................................17
Section 4.2.   Shelf Registration.........................................20
Section 4.3.   Piggy-Back Registration....................................20
Section 4.4.   Allocation of Shares to be Registered......................20
Section 4.5.   Registration Procedures....................................21
Section 4.6.   Registration Expenses......................................25
Section 4.7.   Indemnification; Contribution..............................25

<Page>

                                    ARTICLE V

                      TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS;
                     RESTRICTIONS ON TRANSFER AND CONVERSION

Section 5.1.   Tag-Along Rights; Drag-Along Rights........................27
Section 5.2.   Restrictions on Transfer...................................28
Section 5.3.   Restrictions on Conversion.................................29

                                   ARTICLE VI

                 RESTRICTIONS ON DIVIDENDS AND SHARE REPURCHASES

                                   ARTICLE VII

                          EFFECTIVENESS AND TERMINATION

Section 7.1.   Effectiveness..............................................30
Section 7.2.   Termination................................................30

                                  ARTICLE VIII

                                  MISCELLANEOUS

Section 8.1.   Injunctive Relief..........................................31
Section 8.2.   Successors and Assigns.....................................31
Section 8.3.   Amendments; Waiver.........................................31
Section 8.4.   Notices....................................................32
Section 8.5.   Applicable Law.............................................33
Section 8.6.   Headings...................................................33
Section 8.7.   Integration................................................34
Section 8.8.   Severability...............................................34
Section 8.9.   Consent to Jurisdiction....................................34
Section 8.10.  Counterparts...............................................34

                                      -ii-
<Page>

            SHAREHOLDERS AGREEMENT, dated as of November 20, 2001 (this
"AGREEMENT"), by and among ARCH Capital Group Ltd., a company registered under
the laws of Bermuda (the "COMPANY"), WARBURG PINCUS (BERMUDA) PRIVATE EQUITY
VIII, L.P., a limited partnership organized under the laws of Bermuda, WARBURG
PINCUS (BERMUDA) INTERNATIONAL PARTNERS, L.P., a limited partnership organized
under the laws of Bermuda, WARBURG PINCUS NETHERLANDS INTERNATIONAL PARTNERS I,
C.V., an entity organized under the laws of the Netherlands, WARBURG PINCUS
NETHERLANDS INTERNATIONAL PARTNERS II, C.V., an entity organized under the laws
of the Netherlands (each, a "WARBURG PURCHASER," and collectively, "WARBURG"),
HFCP IV (BERMUDA), L.P., a limited partnership organized under the laws of
Bermuda, H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P., a limited partnership
organized under the laws of Bermuda, H&F INTERNATIONAL PARTNERS IV-B (BERMUDA),
L.P., a limited partnership organized under the laws of Bermuda, and H&F
EXECUTIVE FUND IV (BERMUDA), L.P., a limited partnership organized under the
laws of Bermuda (each, a "H&F PURCHASER," and collectively, "H&F," and together
with Warburg and such other Persons that are, or may hereafter become, parties
hereto (in either case for purposes of such provisions hereof as may be
indicated immediately above the signature of such other Persons) pursuant to the
terms of Section 8.2 hereof, the "INVESTORS").

                              W I T N E S S E T H :
                              - - - - --- - - - -

            WHEREAS, the Company and certain of the Investors have entered into
a Subscription Agreement, dated as of October 24, 2001, as amended November 20,
2001 (the "SUBSCRIPTION AGREEMENT"), pursuant to the terms of which, among other
things, the Company shall issue and sell to the Investors, and Investors shall
acquire from the Company, (1) Series A Convertible Preference Shares, par value
U.S. $0.01 per share, of the Company (the "PREFERENCE SHARES"), and (2) Class A
Warrants to purchase common shares, par value U.S. $0.01 per share, of the
Company (the "COMMON SHARES") (the "CLASS A WARRANTS," and together with the
Preference Shares, the "PURCHASED SECURITIES") (such sale and purchase and the
other transactions contemplated by the Subscription Agreement or described in
the following recitals, the "TRANSACTIONS");

            WHEREAS, the Company and the purchasers named therein (the
"MANAGEMENT PURCHASERS") have entered into a Management Subscription Agreement,
dated as of October 24, 2001 (the "MANAGEMENT SUBSCRIPTION AGREEMENT"), pursuant
to the terms of which, among other things, the Company shall issue and sell to
the Management Purchasers, and the Management Purchasers shall acquire from the
Company, Purchased Securities;

<Page>
                                      -2-

            WHEREAS, the Company, Warburg, H&F and Trident have entered into a
letter agreement, dated as of November 8, 2001, pursuant to the terms of which,
among other things, Warburg assigned to Trident its right, and Trident assumed
from Warburg its obligation, under the Subscription Agreement to purchase
certain Purchased Securities;

            WHEREAS, the Company, Warburg, H&F and GE have entered into a letter
agreement, dated as of November 20, 2001, pursuant to the terms of which, among
other things, Warburg assigned to GE its right, and GE assumed from Warburg its
obligation, under the Subscription Agreement to purchase certain Purchased
Securities;

            WHEREAS, the Company, Warburg, H&F and Farallon have entered into a
letter agreement, dated as of November 20, 2001, pursuant to the terms of which,
among other things, H&F assigned to Farallon its right, and Farallon assumed
from H&F its obligation, under the Subscription Agreement to purchase certain
Purchased Securities;

            WHEREAS, the execution of this Agreement is a condition to the
obligation of the parties to consummate the Transactions; and

            WHEREAS, the Company and Investors desire to establish in this
Agreement certain terms and conditions concerning the acquisition of Purchased
Securities and related provisions concerning the Investors' relationship with
and investment in the Company following the consummation of the Transactions;

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

                                    ARTICLE I

                               CERTAIN DEFINITIONS

            Section 1.1. CERTAIN DEFINITIONS. In addition to other terms defined
elsewhere in this Agreement, as used in this Agreement, the following terms
shall have the meanings ascribed to them below:

            "AFFILIATE" shall mean, with respect to any Person, any other Person
that directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such first Person (including
with respect to individuals, any trusts, foundations, family limited
partnerships or similar entities); PROVIDED, HOWEVER, that no portfolio
investment of either Warburg or H&F, or any of their respective Affiliates,
shall be

<Page>
                                      -3-

deemed to be an Affiliate of Warburg or H&F, as the case may be; PROVIDED,
FURTHER, that none of the Farallon Purchasers or Farallon, or any of their
respective Affiliates, shall be deemed to be an Affiliate of H&F. As used in
this definition, "control" (including, with correlative meanings, "controlled
by" and "under common control with") shall mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies
(whether through ownership of securities or partnership or other ownership
interests, by contract or otherwise).

            "AGREEMENT" shall have the meaning assigned to such term in the
preamble hereto.

            "APPROVAL DATE" shall mean the later of the dates on which the
Requisite Shareholder Approval and the Requisite Regulatory Approval occur.

            "BENEFICIALLY OWN" shall mean, with respect to any securities,
having "beneficial ownership" of such securities for purposes of Rule 13d-3 or
13d-5 under the Exchange Act as in effect on the date hereof, and "BENEFICIAL
OWNERSHIP" shall have the corresponding meaning.

            "BLACKOUT PERIOD" shall have the meaning assigned in Section 4.1(c).

            "BOARD" shall mean the duly elected Board of Directors of the
Company in office at the applicable time.

            "BUSINESS DAY" shall mean any day that is not a Saturday, Sunday or
other day on which the commercial banks in New York City are authorized or
required by law to remain closed.

            "BYE-LAWS" shall mean the bye-laws of the Company.

            "CLAIMS" shall have the meaning assigned in Section 4.7(a).

            "CLASS A WARRANTS" shall have the meaning assigned in the recitals
hereto.

            "CLOSING" shall mean the consummation of the Transactions pursuant
to the terms of the Subscription Agreement.

            "COMMON SHARES" shall have the meaning assigned in the recitals
hereto.

            "COMPANY" shall have the meaning assigned in the preamble hereto.

            "DEMAND REGISTRATION" shall mean any registration effected pursuant
to a Warburg Demand Request or a H&F Demand Request.

<Page>
                                      -4-

            "DIRECTOR" shall mean any member of the Board.

            "EFFECTIVE PERIOD" shall have the meaning assigned in Section
4.5(a)(3).

            "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations that may from time to time be promulgated
thereunder.

            "EXISTING REGISTRATION RIGHTS" shall have the meaning assigned in
Section 4.1(a) hereof.

            "FARALLON" shall mean Farallon Capital Partners, L.P., Farallon
Capital Institutional Partners II, L.P., Farallon Capital Institutional Partners
III, L.P. and RR Capital Partners, L.P., collectively, with each individually
being a "FARALLON PURCHASER".

            "FARALLON PERMITTED TRANSFEREE" shall mean, with respect to any
Farallon Purchaser, any Person or entity that directly or indirectly through one
or more intermediaries controls, or is controlled by or is under common control
with such Farallon Purchaser or an entity over which such Farallon Purchaser has
management rights.

            "GE" shall mean Insurance Private Equity Investors, L.L.C. and
Orbital Holdings, Ltd., collectively, with each individually being a "GE
PURCHASER".

            "GE PERMITTED TRANSFEREE" shall mean, with respect to any GE
Purchaser, any Person or entity that directly or indirectly through one or more
intermediaries controls, or is controlled by or is under common control with
such GE Purchaser or an entity over which such GE Purchaser has management
rights, or any successor trustees or trust (if applicable).

            "H&F" shall have the meaning assigned in the preamble hereto.

            "H&F DEMAND REQUEST" shall have the meaning assigned in Section
4.1(b) hereof.

            "H&F DEMAND SHARES" shall have the meaning assigned in Section
4.1(b) hereof.

            "H&F DIRECTORS" shall have the meaning assigned in Section 3.1(c)
hereof.

            "H&F PURCHASER" shall have the meaning assigned the preamble hereto.

            "H&F REGISTRABLE SHARES" shall have the meaning assigned in Section
4.1(b) hereof.

<Page>
                                      -5-

            "INDEPENDENT DIRECTOR" means a Director who is not an Affiliate of
either Warburg or H&F.

            "INITIAL H&F DIRECTOR" shall have the meaning assign in Section
3.1(b).

            "INITIAL INVESTMENT" shall mean, with respect to any Investor, the
total number of Common Shares issuable (a) upon conversion of the Preference
Shares acquired by such Investor at the Closing, (b) upon conversion of any
additional Preference Shares acquired by such Investor with respect to the
Preference Shares referred to in clause (a) pursuant to the terms of the
Subscription Agreement (or the Management Subscription Agreement), (c) upon
exercise for cash of the Class A Warrants acquired by such Investor at Closing,
(d) upon exercise for cash of any additional Class A Warrants acquired by such
Investor pursuant to the terms of the Subscription Agreement (or the Management
Subscription Agreement) and (e) any other securities issued in respect of the
securities described in clauses (a) though (d) of this definition or into which
such securities shall be converted in connection with stock splits, reverse
stock splits, stock dividends or distributions, or combinations or similar
recapitalizations.

            "INITIAL SHARES" shall mean, with respect to any Investor, (a) the
Preference Shares acquired by such Investor at the Closing, (b) any additional
Preference Shares acquired by such Investor with respect to the Preference
Shares referred to in clause (a) pursuant to the terms of the Subscription
Agreement (or the Management Subscription Agreement), (c) the Class A Warrants
acquired by such Investor at Closing, (d) any additional Class A Warrants
acquired by such Investor pursuant to the terms of the Subscription Agreement
(or the Management Subscription Agreement) and (e) any other securities issued
in respect of the securities described in clauses (a) though (d) of this
definition or into which such securities shall be converted in connection with
stock splits, reverse stock splits, stock dividends or distributions, or
combinations or similar recapitalizations. References to the "THE NUMBER OF
INITIAL SHARES" shall mean the number of Common Shares comprising the Initial
Shares (based, in the case of Preference Shares and Class A Warrants, upon the
number of Common Shares issuable upon conversion or exercise for cash thereof).

            "INITIAL WARBURG DIRECTOR" shall have the meaning assigned in
Section 3.1(b) hereof.

<Page>
                                      -6-

            "INTERESTED PARTY TRANSACTION" shall mean any transaction between
the Company or any of its Subsidiaries and any officer or Director, or Affiliate
of any officer or Director, of the Company.

            "INVESTORS" shall have the meaning assigned in the preamble hereto.

            "INVESTOR SHARES" shall mean, at any time, any Common Shares
issuable in respect of Initial Shares acquired by an Investor and any Common
Shares acquired by an Investor after the Closing (and any Common Shares or other
securities issued in respect thereof or into which such Common Shares shall be
converted in connection with stock splits, reverse stock splits, stock dividends
or distributions, or combinations or similar recapitalizations).

            "MANAGEMENT PURCHASERS" shall have the meaning set forth in the
recitals hereto.

            "MANAGEMENT SUBSCRIPTION AGREEMENT" shall have the meaning set forth
in the recitals hereto.

            "MANDATORY CONVERSION DATE" shall have the meaning set forth in
Section 3.3 hereof.

            "MARKET VALUE" shall mean, as of any date, the average of the daily
high and low sales prices per Common Share on the Nasdaq for each of the twenty
full trading days immediately preceding (but not including) such date.

            "MATERIAL TRANSACTION" shall have the meaning assigned in Section
4.1(c).

            "MAXIMUM NUMBER" shall have the meaning assigned in Section 4.4.

            "NASDAQ" shall mean The Nasdaq Stock Market, Inc.

            "NASDAQ INDEPENDENT DIRECTOR" shall have the meaning specified in
Rule 4200(a)(14) of the Rules of the National Association of Securities Dealers,
Inc.

            "PARTICIPATING INVESTOR" shall have the meaning assigned in Section
4.5(a)(2) hereof.

            "PER SHARE PRICE" shall have the meaning assigned in the
Subscription Agreement.

            "PERSON" shall mean any individual, corporation, partnership,
limited liability company, association, trust or other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

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                                      -7-

            "PIGGY-BACK REGISTRATION" shall have the meaning assigned in Section
4.3.

            "PIGGY-BACK REQUEST" shall have the meaning assigned in Section 4.3.

            "PREFERENCE SHARES" shall have the meaning assigned in the recitals
hereto.

            "PURCHASED SECURITIES" shall have the meaning assigned in the
recitals hereto.

            "REGISTRABLE SHARES" shall have the meaning assigned in Section
4.1(b) hereof.

            "REQUISITE NASDAQ APPROVAL" shall have the meaning assigned in the
Certificate of Designations for the Preference Shares.

            "REQUISITE REGULATORY APPROVAL" shall have the meaning assigned in
the Certificate of Designations for the Preference Shares.

            "REQUISITE SHAREHOLDER APPROVAL" shall have the meaning assigned in
the Certificate of Designations for the Preference Shares.

            "RETAINED INVESTMENT" shall mean, with respect to any Investor, at
any time, the amount of the Initial Investment Beneficially Owned by such
Investor at such time.

            "RETAINED PERCENTAGE" shall mean, with respect to any Investor, at
any time, the quotient, expressed as a percentage, of (a) such Investor's
Retained Investment, over (b) such Investor's Initial Investment.

            "SEC" shall mean the United States Securities and Exchange
Commission.

            "SECURITIES ACT" shall mean the Securities Act of 1933, as amended,
and the rules and regulations that may from time to time be promulgated
thereunder.

            "SELLING INVESTOR" shall have the meaning assigned in Section 5.1(a)
hereof.

            "SHELF REGISTRATION STATEMENT" shall have the meaning assigned in
Section 4.2 hereof.

            "SUBSCRIPTION AGREEMENT" means the Subscription Agreement, dated as
of October 24, 2001, by and between the Company and each of the Purchasers named
therein, as amended from time to time in accordance with its terms.

            "SUBSIDIARY" shall mean, with respect to any Person, any other
entity of which securities or other ownership interests having ordinary power to
elect a majority of the board

<Page>
                                      -8-

of directors or other persons performing similar functions are at any time
directly or indirectly owned by such Person.

            "TAG-ALONG INVESTOR" shall have the meaning assigned in Section
5.1(a) hereof.

            "THIRD PARTY SALE" shall have the meaning assigned in Section 5.1(a)
hereof.

            "THIRD PARTY SALE NOTICE" shall have the meaning assigned in Section
5.1(a) hereof.

            "TRANSACTIONS" shall have the meaning assigned in the recitals
hereto.

            "TRIDENT" shall mean Trident II, L.P., Marsh & McLennan Capital
Professionals Fund, L.P. and Marsh & McLennan Employee's Securities Company,
L.P., collectively, with each individually a "TRIDENT PURCHASER."

            "VOTES" shall mean votes entitled to be cast generally in the
election of Directors.

            "VOTING POWER" shall mean, calculated at a particular point in time,
the ratio, expressed as a percentage, of (a) the Votes represented by the Voting
Securities with respect to which the Voting Power is being determined, to (b)
the aggregate Votes represented by all then outstanding Voting Securities. For
this purpose, the votes attributable to the Preference Shares shall be on an
as-converted basis, without regard to the limitations imposed under the
Certificate of Designations.

            "VOTING SECURITIES" shall mean (a) the Common Shares, (b) the
Preference Shares and (c) shares of any other class of securities of the Company
then entitled to vote generally in the election of Directors.

            "WARBURG" shall have the meaning assigned in the preamble hereto.

            "WARBURG DEMAND REQUEST" shall have the meaning assigned in Section
4.1(a) hereof.

            "WARBURG DEMAND SHARES" shall have the meaning assigned in Section
4.1(a) hereof.

            "WARBURG DIRECTORS" shall have the meaning assigned in Section
3.1(c) hereof.

            "WARBURG PURCHASER" shall have the meaning assigned in the preamble
hereto.

<Page>
                                      -9-

            "WARBURG REGISTRABLE SHARES" shall have the meaning assigned in
Section 4.1(a) hereof.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

            Section 2.1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The
Company represents and warrants to each Investor as follows:

            (a) The Company has been duly formed and is validly existing as a
      company in good standing under the laws of Bermuda and has all necessary
      corporate power and authority to enter into this Agreement and to carry
      out its obligations hereunder.

            (b) This Agreement has been duly and validly authorized by the
      Company and the Company has taken all necessary and appropriate action to
      execute and deliver this Agreement and to perform its obligations
      hereunder.

            (c) This Agreement has been duly executed and delivered by the
      Company and, assuming due authorization and valid execution and delivery
      by each other party hereto, is a valid and binding obligation of the
      Company, enforceable against it in accordance with its terms.

            Section 2.2. REPRESENTATIONS AND WARRANTIES OF WARBURG. Each Warburg
Purchaser represents and warrants to each other party hereto as follows:

            (a) Such Warburg Purchaser has been duly formed and is validly
      existing and in good standing, to the extent applicable, under the laws of
      its respective jurisdiction of formation and has all necessary power and
      authority to enter into this Agreement and to carry out its obligations
      hereunder.

            (b) This Agreement has been duly and validly authorized by such
      Warburg Purchaser and such Warburg Purchaser has taken all necessary and
      appropriate action to execute and deliver this Agreement and to perform
      its obligations hereunder.

<Page>
                                      -10-

            (c) This Agreement has been duly executed and delivered by such
      Warburg Purchaser and, assuming due authorization and valid execution and
      delivery by the Company, is a valid and binding obligation of such Warburg
      Purchaser, enforceable against it in accordance with its terms.

            Section 2.3. REPRESENTATIONS AND WARRANTIES OF H&F. Each H&F
Purchaser represents and warrants to each other party hereto as follows:

            (a) Such H&F Purchaser has been duly formed and is validly existing
      under the laws of its respective jurisdiction of formation and has all
      necessary power and authority to enter into this Agreement and to carry
      out its obligations hereunder.

            (b) This Agreement has been duly and validly authorized by such H&F
      Purchaser and such H&F Purchaser has taken all necessary and appropriate
      action to execute and deliver this Agreement and to perform its
      obligations hereunder.

            (c) This Agreement has been duly executed and delivered by such H&F
      Purchaser and, assuming due authorization and valid execution and delivery
      by the Company, is a valid and binding obligation of such H&F Purchaser,
      enforceable against it in accordance with its terms.

            Section 2.4. REPRESENTATIONS AND WARRANTIES OF GE. Each GE Purchaser
represents and warrants to each other party hereto as follows:

            (a) Such GE Purchaser has been duly formed and is validly existing
      under the laws of its respective jurisdiction of formation and has all
      necessary power and authority to enter into this Agreement and to carry
      out its obligations hereunder.

            (b) This Agreement has been duly and validly authorized by such GE
      Purchaser and such GE Purchaser has taken all necessary and appropriate
      action to execute and deliver this Agreement and to perform its
      obligations hereunder.

            (c) This Agreement has been duly executed and delivered by such GE
      Purchaser and, assuming due authorization and valid execution and delivery
      by the Company, is a valid and binding obligation of such GE Purchaser,
      enforceable against it in accordance with its terms.

            Section 2.5. REPRESENTATIONS AND WARRANTIES OF TRIDENT. Each Trident
Purchaser represents and warrants to each other party hereto as follows:

<Page>
                                      -11-

            (a) Such Trident Purchaser has been duly formed and is validly
      existing under the laws of its respective jurisdiction of formation and
      has all necessary power and authority to enter into this Agreement and to
      carry out its obligations hereunder.

            (b) This Agreement has been duly and validly authorized by such
      Trident Purchaser and such Trident Purchaser has taken all necessary and
      appropriate action to execute and deliver this Agreement and to perform
      its obligations hereunder.

            (c) This Agreement has been duly executed and delivered by such
      Trident Purchaser and, assuming due authorization and valid execution and
      delivery by the Company, is a valid and binding obligation of such Trident
      Purchaser, enforceable against it in accordance with its terms.

            Section 2.6. REPRESENTATIONS AND WARRANTIES OF FARALLON. Each
Farallon Purchaser represents and warrants to each other party hereto as
follows:

            (a) Such Farallon Purchaser has been duly formed and is validly
      existing under the laws of its respective jurisdiction of formation and
      has all necessary power and authority to enter into this Agreement and to
      carry out its obligations hereunder.

            (b) This Agreement has been duly and validly authorized by such
      Farallon Purchaser and such Farallon Purchaser has taken all necessary and
      appropriate action to execute and deliver this Agreement and to perform
      its obligations hereunder.

            (c) This Agreement has been duly executed and delivered by such
      Farallon Purchaser and, assuming due authorization and valid execution and
      delivery by the Company, is a valid and binding obligation of such
      Farallon Purchaser, enforceable against it in accordance with its terms.

                                   ARTICLE III

                          VOTING; BOARD REPRESENTATION

            Section 3.1. BOARD OF DIRECTORS. (a) The Company shall be managed by
its duly elected officers subject to the overall direction and supervision of
the Board. Each of Warburg and H&F shall, and shall cause its controlled
Affiliates to, vote all Voting Securities that such Investor and its controlled
Affiliates Beneficially Own and take any and all actions as may be reasonably
necessary to cause the provisions of this Section 3.1, including the election of
the Warburg Directors and H&F Directors, to be effectuated.

<Page>
                                      -12-

            (b) Prior to the Closing, and as a condition to the Closing, the
Company shall use its best efforts to secure the resignation of a number of
Directors such that there remain seven Directors immediately following the
Closing (the "PRE-CLOSING DIRECTORS"), of whom at least two shall qualify as
Nasdaq Independent Directors. Immediately following the Closing, the size of the
Board shall be decreased such that the Board shall consist of nine Directors,
and one Director designated by Warburg, (the "INITIAL WARBURG DIRECTOR") and one
Director designated by H&F (the "INITIAL H&F DIRECTOR") shall each be appointed
by the Board as a director to serve in such classes of Directors as may be
necessary to assure that each class in Directors is as near in equal in number
as possible and that the Initial Warburg Director and the Initial H&F Director
are distributed among different classes.

            (c) Effective as of 12:00 a.m. on the date immediately following
the Approval Date, the size of the Board shall be increased such that the Board
shall then and thereafter consist of 17 Directors (such number not to be
increased without the consent of Warburg and H&F) and (i) five individuals
designated by Warburg (together with the Initial Warburg Director, and any other
replacements or substitutions therefor, the "WARBURG DIRECTORS"), and (ii) two
individuals designated by H&F (together with the Initial H&F Director, and any
other replacements or substitutions therefor, the "H&F DIRECTORS") shall each be
appointed by the Board as a Director to serve in such classes of Directors as
may be necessary to assure that each class in Directors is as near in equal in
number as possible and that the Warburg Directors and the H&F Directors,
respectively, are distributed among different classes.

            (d) Following the Approval Date, for so long as Warburg's Retained
Percentage is "x" as set forth in the table below, the slate of nominees
recommended by the Board to shareholders for election as directors of the
Company at each annual meeting of shareholders shall include such number of
individuals designated by Warburg, which together with the number of Warburg
Directors whose term is not scheduled to expire, is equal to the number set
forth opposite such Warburg's Retained Percentage in the table below:

<Table>
<Caption>

                      Warburg's Retained         Number of
                          Percentage             Nominees
                     --------------------      -------------
<S>                                                  <C>
                           x > 75%                  6
                             -
                         60% < x < 75%               5
                             -
                         45% < x < 60%               4
                             -
                         30% < x < 45%               3
                             -
                         20% < x < 30%               2
                             -
                         10% < x < 20%               1;
                             -
</Table>

PROVIDED that, if the Approval Date has not occurred, for so long as Warburg's
Retained Percentage is equal to or exceeds 10%, at least one Warburg Director
shall be included in the slate of nominees recommended by the Board to
shareholders for election as directors of the

<Page>
                                      -13-

Company at each annual general meeting of shareholders at which a Warburg
Director's term is scheduled to expire. For so long as Warburg has the power to
have at least two Directors included in the slate of nominees recommended by the
Board, power with respect to one such Director shall be exercised by Warburg
Pincus (Bermuda) Private Equity VIII, L.P. and power with respect to one such
Director shall be exercised by Warburg Pincus (Bermuda) International Partners,
L.P.

            (e) Following the Approval Date, for so long as H&F's Retained
Percentage is "x" as set forth in the table below, the slate of nominees
recommended by the Board to shareholders for election as directors of the
Company at each annual meeting of shareholders shall include such number of
individuals designated by H&F, which together with the number of H&F Directors
whose term is not scheduled to expire, is equal to the number set forth opposite
such H&F's Retained Percentage in the table below:

<Table>
<Caption>

                         H&F's Retained          Number of
                           Percentage             Nominees
                         --------------          ---------
<S>                                                 <C>
                           x > 60%                  3
                             -
                         35% < x < 60%               2
                             -
                         20% < x < 35%               1;
                             -
</Table>

PROVIDED that, if the Approval Date has not occurred, for so long as H&F's
Retained Percentage is equal to or exceeds 20%, at least one H&F Director shall
be included in the slate of nominees recommended by the Board to shareholders
for election as directors of the Company at each annual general meeting of
shareholders at which an H&F Director's term is scheduled to expire. For so long
as H&F has the power to have at least one Director included in the slate of
nominees recommended by the Board, such power shall be exercised by HFCP IV
(Bermuda), L.P.

            (f) Each of Warburg and H&F shall provide to the Company in a timely
manner all information required by Regulation 14A and Schedule 14A under the
Exchange Act with respect to each Warburg Director and each H&F Director,
respectively.

            (g) The Company shall use its best efforts (i) to cause a special
meeting of the Board to be called upon the request of at least three Directors
and (ii) to cause to be submitted, at the 2002 annual general meeting of the
Company's shareholders, a proposal to amend Bye-Law 20 of the Company to replace
"by a majority of the total number of Directors" with "by three Directors or a
majority of the total number of Directors (whichever is fewer)".

            Section 3.2. COMMITTEES OF THE BOARD. The Company and the Investors
agree that (1) for so long as there is at least one Warburg Director on the
Board, each com-

<Page>
                                      -14-

mittee of the Board shall include at least one Warburg Director, and (2) for so
long as there is at least one H&F Director on the Board, each committee of the
Board shall include at least one H&F Director. The foregoing is subject to any
restrictions on service on the audit committee as may be applicable under the
rules of the National Association of Securities Dealers, Inc. or the SEC.

            Section 3.3. INVESTOR PROTECTION MATTERS. Except as specifically
set forth herein, in accordance with the Company's Bye-laws, the Board shall
act by the vote of a majority of the Directors present at a meeting, and the
required quorum for a meeting of the Board shall be a majority of the whole
Board. Notwithstanding the foregoing, and except as specifically set forth in
the Subscription Agreement, (a) prior to the Approval Date, unless also
approved by the Initial Warburg Director and the Initial H&F Director, and
(b) following the Approval Date, unless also approved by (i) at least one
Warburg Director, if at such time Warburg's Retained Percentage equals or
exceeds 25%, and (ii) at least one H&F Director, if at such time H&F's
Retained Percentage equals or exceeds 50%, the Company shall not (and shall
not permit any of its Subsidiaries to):

            (1) amend, or propose to amend, its certificate of incorporation,
      memorandum of association, bye-laws, or other organizational documents, or
      amend, terminate or waive any provision under, the Subscription Agreement
      or any other Agreement entered into in connection therewith;

            (2) split, consolidate, combine, subdivide, redeem or reclassify its
      share capital or other equity interests, or amend any term of the
      outstanding securities of the Company or its Subsidiaries;

            (3) declare, set aside, make or pay any dividend or other
      distribution in respect of its share capital or other equity interests, or
      purchase or redeem, directly or indirectly, any share capital or other
      equity interests (other than (A) dividends by a Subsidiary of the Company
      to the Company or a Subsidiary of the Company, and (B) dividends or other
      distributions by any entity in which the Company or any Subsidiary owns a
      minority interest, made in the normal course of business, consistent with
      past practice);

            (4) other than (A) in respect of grants or exercises under the 1999
      Long Term Incentive and Share Award Plan, the 1995 Long Term Incentive and
      Share Award Plan and the Long Term Incentive Plan for New Employees, (B)
      issuances of securities pursuant to the Subscription Agreement and the
      Management Subscription Agreement, and (C) issuances of securities upon
      conversion or exercise of securities issued pursuant to clause (B) or of
      securities outstanding on the date hereof, issue, deliver or sell, or
      authorize the issuance, delivery or sale of, any share capital of any
      class, any equity interest, or any options, warrants, conversion or other
      rights to pur-

<Page>
                                      -15-

      chase any such shares or equity interests, or any securities convertible
      into or exchangeable for such shares or equity interests, or issue or
      authorize the issuance of any other security in respect of or in lieu of
      or in substitution for shares of capital or equity interests, or enter
      into any agreements restricting the transfer of, or affecting the rights
      of holders of, Common Shares, grant any preemptive or anti-dilutive rights
      to any holder of any class of securities of the Company, or grant
      registration rights with respect to any of the Company's securities;

            (5) amend or waive any rights under any grants made under the Long
      Term Incentive Plan for New Employees;

            (6) incur any indebtedness for borrowed money, guarantee any such
      indebtedness or issue or sell any debt securities, in excess of $5,000,000
      in the aggregate, or prepay or refinance any indebtedness for borrowed
      money;

            (7) engage in any Interested Party Transaction;

            (8) acquire any assets or properties for cash or otherwise for an
      amount in excess of $5,000,000 in the aggregate;

            (9) acquire, whether by means of merger, stock or asset purchase,
      joint venture or other similar transaction, any equity interest in, or all
      or substantially all of the assets of any Person, or any business or
      division of any Person;

            (10) replace the independent auditors of the Company or make any
      material change in any method of financial accounting or accounting
      practice, except for any such change required by reason of a concurrent
      change in U.S. generally accepted accounting principles;

            (11) sell or otherwise dispose of assets material to the Company and
      its Subsidiaries taken as a whole, except as specifically contemplated by
      the Subscription Agreement;

            (12) increase by 5% or more the annual base compensation of any
      officer or key employee of the Company, or enter into or make any material
      change in any severance contract or arrangement with any such officer or
      key employee;

            (13) consummate a complete liquidation or dissolution of the
      Company, a merger or consolidation (A) in which the Company or any
      Subsidiary is a constituent corporation or (B) with respect to which the
      Common Shares would have the right to vote under applicable law, a sale of
      all or substantially all of the Company's assets, or any similar business
      combination; PROVIDED, HOWEVER, that the foregoing shall not ap-

<Page>
                                      -16-

      ply to any merger or consolidation solely between or among wholly owned
      Subsidiaries of the Company, other than any such transaction between
      Subsidiaries which are considered "Core Insurance Operations" under
      Section E, and Subsidiaries which are not considered "Core Insurance
      Operations";

            (14) enter into any transaction involving in excess of $1,000,000,
      or, if such transaction is in the ordinary course of business consistent
      with past practice, $5,000,000;

            (15) approve the annual plan, annual capital expenditure budget or
      the five-year plan of the Company and its Subsidiaries, taken as a whole;

            (16) remove the Chief Executive Officer or Chairman of the Company,
      or appoint a new Chief Executive Officer or Chairman of the Company; or

            (17) enter into any agreement with respect to the foregoing;
      PROVIDED, HOWEVER, transactions solely between or among the Company and/or
      one or more of its wholly owned Subsidiaries shall be excluded from
      clauses (6), (8), (9), (11) and (14) (and from clause (17) to the extent
      relating to an agreement with respect to a transaction excluded by this
      proviso), other than any such transaction between Subsidiaries which are
      considered "Core Insurance Operations" under Section E, and Subsidiaries
      which are not considered "Core Insurance Operations."

In addition, prior to the Approval Date, and after the Approval Date for so long
as the Warburg Directors and the H&F Directors together constitute a majority of
the Board, (i) the notice for each meeting of the Board called by the Chairman
of the Board, the President of the Company, the Warburg Directors or the H&F
Directors shall include a list of topics to be discussed at the meeting (the
"AGENDA") and (ii) the Board shall not act on any matter that is not within the
Agenda without the consent of at least one Warburg Director and at least one H&F
Director. Nothing in this Section 3.3 shall grant either H&F or Warburg any
right or consent to the extent that such right would result in such party being
deemed to "control" an insurance subsidiary of the Company that is domiciled in
any state in the United States, where the exercise of such control would
otherwise require the prior approval of such state. In addition, the rights of
Warburg and H&F set forth in this Section 3.3 shall, in any event, terminate
upon the mandatory conversion of the Preference Shares under paragraph (g)(2) of
the Certificate of Designations for the Preference Shares (the "MANDATORY
CONVERSION DATE") or the earlier conversion of all Preference Shares in
accordance with their terms.

            Section 3.4. VOTING. Each Investor agrees to vote all Voting
Securities Beneficially Owned by such Investor or by any controlled Affiliate of
such Investor in favor of (a) the proposals to be submitted for approval of the
shareholders of the Company at the special general meeting of the Company's
shareholders to be held in connection with the

<Page>
                                      -17-

Transactions and (b) the proposals to approve the grant to Robert Clements of
1,689,629 restricted shares and the grant to John M. Pasquesi of options to
purchase 1,126,419 Common Shares at $20.00 per share, which grants were made in
connection with the Transactions, which such proposals will be submitted for
approval of the shareholders of the Company at the 2002 annual general meeting
of the Company's shareholders.

            Section 3.5. CHAIRMAN OF THE COMPANY. For so long as he is willing
and able to serve as the Chairman of the Company, Warburg and H&F agree to take
such actions as may be necessary to cause Robert Clements to be duly elected as
Chairman of the Company.

            Section 3.6. CERTAIN TRANSACTIONS. For a period of two years after
the Closing, except for transactions specifically contemplated by this
Agreement, the Related Agreements (as defined in the Subscription Agreement) or
the Purchased Securities, neither Warburg nor H&F nor any of their respective
Affiliates will, directly or indirectly, without the prior approval of a
majority of the Independent Directors: (a) acquire securities or assets from the
Company or any of its Subsidiaries, (b) engage in any "Rule 13e-3 transaction"
(as such term is defined in Rule 13e-3(a)(3) under the Securities Exchange Act
of 1934, as amended) involving the Company, or (c) engage in any other
transaction that would result in the compulsory acquisition of Common Shares.
The Company shall not agree to amend this Section 3.6, without the prior
approval of a majority of the Independent Directors. The Company, Warburg and
H&F shall endeavor to include at all times two Independent Directors on the
Board.

                                   ARTICLE IV

                               REGISTRATION RIGHTS

            Section 4.1. DEMAND REGISTRATIONS. (a) Warburg may at any time
following the date hereof and on not more than five separate occasions in the
aggregate and not more frequently than once during any 180 day period, require
the Company to file a registration statement under the Securities Act in respect
of all or a portion of the Investor Shares then Beneficially Owned by Warburg or
by any other person that Beneficially Owns Investor Shares and who acquired such
Investor Shares in connection with such person's status as a partner in any
partnership in which Warburg or any of its Affiliates is the general partner
(all such Investor Shares, the "WARBURG REGISTRABLE SHARES") (PROVIDED that such
request covers Warburg Registrable Shares with a Market Value on the date of the
Demand Request of at least $25 million), by delivering to the Company a written
notice stating that such right is being exercised, specifying the number of
Common Shares to be included in such registration (the shares subject to such
request, the "WARBURG DEMAND SHARES") and describing the in-

<Page>
                                      -18-

tended method of distribution thereof (a "WARBURG DEMAND REQUEST"). Upon
receiving a Warburg Demand Request, the Company shall (1) provide written notice
of the Warburg Demand Request, pursuant to Section 4.3 hereof, to H&F and each
other Investor, (2) use reasonable efforts to file as promptly as reasonably
practicable a registration statement on such form as the Company may reasonably
deem appropriate providing for the registration of the sale of such Warburg
Demand Shares and any other Investor Shares to be included pursuant to Sections
4.3 and 4.4 hereof pursuant to the intended method of distribution and (3) after
the filing of an initial version of the registration statement, use reasonable
efforts to cause such registration statement to be declared effective under the
Securities Act as promptly as practicable after the date of filing of such
registration statement. Any Demand Registration filed pursuant to the request of
Warburg may, subject to the provisions of Section 4.4 below, include other
Common Shares that the Company is required to include in such registration
statement by virtue of existing agreements between the holders of such Common
Shares and the Company (the "EXISTING REGISTRATION RIGHTS").

            (b) H&F may at any time following the date hereof and on not more
than five separate occasions in the aggregate and not more frequently than once
during any 180 day period, require the Company to file a registration statement
under the Securities Act in respect of all or a portion of the Investor Shares
then Beneficially Owned by H&F or by any other person that Beneficially Owns
Investor Shares and who acquired such Investor Shares in connection with such
person's status as a partner in any partnership in which H&F or any of its
Affiliates is the general partner (all such Common Shares, the "H&F REGISTRABLE
SHARES," and together with the Warburg Registrable Shares, the "REGISTRABLE
SHARES") (PROVIDED that such request covers H&F Registrable Shares with a Market
Value on the date of the Demand Request of at least $25 million), by delivering
to the Company a written notice stating that such right is being exercised,
specifying the number of Common Shares to be included in such registration (the
shares subject to such request, the "H&F DEMAND SHARES") and describing the
intended method of distribution thereof (a "H&F DEMAND REQUEST"). Upon receiving
a H&F Demand Request, the Company shall (1) provide written notice of the H&F
Demand Request, pursuant to Section 4.3 hereof, to Warburg and each other
Investor, (2) use reasonable efforts to file as promptly as reasonably
practicable a registration statement on such form as the Company may reasonably
deem appropriate providing for the registration of the sale of such H&F Demand
Shares and any other Investor Shares to be included therein pursuant to Sections
4.3 and 4.4 hereof pursuant to the intended method of distribution, and (3)
after the filing of an initial version of the registration statement, use
reasonable efforts to cause such registration statement to be declared effective
under the Securities Act as promptly as practicable after the date of filing of
such registration statement. Any Demand Registration filed pursuant to the
request of H&F may, subject to the provisions of Section 4.4 below, include
other Common Shares that the Company is required to include in such registration
statement by virtue of the Existing Registration Rights.

<Page>
                                      -19-

            (c) Notwithstanding anything in this Agreement to the contrary, the
Company shall be entitled to postpone and delay, for reasonable periods of time
not to exceed 60 consecutive days and in no event to exceed more than an
aggregate of 90 days during any 360-day period (a "BLACKOUT PERIOD"), the filing
or effectiveness of any Demand Registration if the Board shall determine that
any such filing or the offering of any Registrable Shares would (1) in the good
faith judgment of the Board, impede, delay or otherwise interfere with any
pending or contemplated acquisition, corporate reorganization or other similar
material transaction involving the Company (each, a "MATERIAL TRANSACTION"), (2)
based upon advice from the Company's investment banker or financial advisor,
adversely affect any pending or contemplated financing, offering or sale of any
class of securities by the Company, or (3) in the good faith judgment of the
Board, require disclosure of material non-public information (other than
information relating to an event described in clauses (1) or (2) above) which,
if disclosed at such time, would be harmful to the best interests of the Company
and its shareholders. Upon notice by the Company to each Investor of any such
determination, such Investor shall keep the fact of any such notice strictly
confidential, and during any Blackout Period promptly halt any offer, sale,
trading or transfer by it or any of its Subsidiaries of any Common Shares for
the duration of the Blackout Period set forth in such notice (or until such
Blackout Period shall be earlier terminated in writing by the Company) and
promptly halt any use, publication, dissemination or distribution of the Demand
Registration, each prospectus included therein, and any amendment or supplement
thereto by it for the duration of the Blackout Period set forth in such notice
(or until such Blackout Period shall be earlier terminated in writing by the
Company) and, if so directed by the Company, will deliver to the Company any
copies then in its possession of the prospectus covering such Registrable
Shares.

            (d) In case a Demand Registration has been filed, if a Material
Transaction has occurred, the Company may cause such Demand Registration to be
withdrawn and its effectiveness terminated or may postpone amending or
supplementing such Demand Registration for a reasonable period of time;
PROVIDED, HOWEVER, that in no event shall a Demand Registration so withdrawn by
the Company count for the purposes of determining the number of Demand
Registrations to which either Warburg or H&F is entitled under Section 4.1(a) or
(b).

            (e) In connection with any underwritten offering under this Section
4.1, the managing underwriter for such Demand Registration shall be jointly
selected by Warburg and H&F, PROVIDED that such managing underwriter shall be a
nationally recognized investment banking firm.

            (f) Nothing in this Article IV shall affect or supersede any of the
transfer restrictions set forth in Article V hereof or any of the other
provisions of this Agreement.

<Page>
                                      -20-

            Section 4.2. SHELF REGISTRATION. At the request of either Warburg or
H&F, the Company shall use reasonable best efforts to file a registration
statement on Form S-3, or any successor form thereto, covering the offering of
Investor Shares by all Investors (subject to the provisions of Section 5.2
hereof) on a delayed or continuous basis (the "SHELF REGISTRATION STATEMENT") to
be effective as soon as reasonably practicable following the Closing Date. Upon
effectiveness of the Shelf Registration Statement, the Company will use its
reasonable best efforts to keep the Shelf Registration Statement effective with
the SEC until such time the Investor Shares held by all Investors are freely
tradable under Rule 144(k) under the Securities Act. Notwithstanding the
foregoing, the Company may suspend the effectiveness of the Shelf Registration
Statement during any Blackout Period.

            Section 4.3. PIGGY-BACK REGISTRATION. If, at any time following the
date hereof, the Company proposes to register any Common Shares under the
Securities Act on its behalf or on behalf of any of its shareholders (including
pursuant to a Demand Registration), on a form and in a manner that would permit
registration of Common Shares (other than in connection with dividend
reinvestment plans, rights offerings or a registration statement on Form S-4 or
S-8 or any similar successor form), the Company shall give reasonably prompt
written notice to each Investor of its intention to do so. Upon the written
election of any Investor (a "PIGGY-BACK REQUEST"), given within ten Business
Days following the receipt by such Investor of any such written notice (which
election shall specify the number of the Investor Shares intended to be disposed
of by such Investor), the Company shall include in such registration statement
(a "PIGGY-BACK REGISTRATION"), subject to the provisions of Section 4.4 hereof,
such number of the Investor Shares as shall be set forth in such Piggy-Back
Request. Notwithstanding anything herein to the contrary, no Investor shall be
entitled to written notice of any such registration or be entitled to make a
Piggy-Back Request or Piggy-Back Registration with respect to the first such
registration and offering of Common Shares following the date hereof; provided
that such offering shall close on or prior to June 30, 2002.

            Section 4.4. ALLOCATION OF SHARES TO BE REGISTERED. In the event
that the Company proposes to register Common Shares in connection with an
underwritten offering and a nationally recognized investment banking firm
selected by the Company, or in the case of a Demand Registration selected by
Warburg and H&F, to act as managing underwriter thereof reasonably and in good
faith shall have advised the Company and each Investor in writing that, in its
opinion, the inclusion in the registration statement of some or all of the
Investor Shares sought to be registered in a Piggy-Back Request would adversely
affect the price or success of the offering, the Company shall include in such
registration statement such number of Common Shares as the Company is advised
can be sold in such offering without such an effect (the "MAXIMUM NUMBER") as
follows and in the following order of priority: (a) FIRST, if such registration
is not in connection with a Demand Registration, such number of Common Shares,
if any, as the Company intended to be registered by the Company for its own
account, or to be registered pursuant to Existing Registration Rights, to the

<Page>
                                      -21-

extent such Existing Registration Rights so require; (b) SECOND, if and to the
extent that the number of Common Shares to be registered under clause (a) is
less than the Maximum Number (or because the registration is a Demand
Registration, in which case the Company is not permitted to offer Common
Shares), such number of Investor Shares as Warburg, H&F, Trident, Farallon and
GE (and, to the extent required by any Existing Registration Rights, any other
holder of Common Shares having such rights) shall have intended to register
which, when added to the number of Common Shares to be registered under clause
(a), is less than or equal to the Maximum Number, it being understood that the
number of shares included by Warburg, H&F, Trident, Farallon and GE (and such
other holders under Existing Registration Rights) shall be cut back, if
necessary, in proportion to their relative ownership at the time; and (c) THIRD,
if and to the extent that the number of Common Shares to be registered under
clause (b) is less than the Maximum Number, such number of Investor Shares as
the Participating Investors (other than Warburg, H&F, Trident, Farallon and GE
(and such other holders under Existing Registration Rights)) shall have intended
to register which, when added to the number of Common Shares to be registered
under clauses (a) and (b), is less than or equal to the Maximum Number, it being
understood that the number of shares included by the Participating Investors
(other than Warburg, H&F, Trident, Farallon and GE (and such other holders under
Existing Registration Rights)) shall be cut back, if necessary, in proportion to
their relative ownership.

            Section 4.5. REGISTRATION PROCEDURES. (a) In connection with each
registration statement prepared pursuant to this Article IV, and in accordance
with the intended method or methods of distribution of the Investor Shares as
described in such registration statement, the Company shall, as soon as
reasonably practicable and to the extent practicable:

            (1) prepare and file with the SEC a registration statement on an
      appropriate registration form and use reasonable efforts to cause such
      registration statement to become and remain effective as promptly as
      reasonably practicable; PROVIDED that before filing a registration
      statement or prospectus or any amendments or supplements thereto, the
      Company shall furnish to counsel to H&F and Warburg, if disposing of
      Registrable Shares under such registration statement, draft copies of all
      such documents proposed to be filed at least five days prior to such
      filing, which documents will be subject to the reasonable review of each
      of H&F and Warburg, as appropriate, and its agents and representatives;

            (2) furnish without charge to each Investor seeking to dispose of
      Investor Shares thereunder (each, a "PARTICIPATING INVESTOR"), and the
      managing underwriter or underwriters, if any, at least one conformed copy
      of the registration statement and each post-effective amendment or
      supplement thereto (but excluding schedules, all documents incorporated or
      deemed incorporated therein by reference and all exhibits, unless
      requested in writing by such Participating Investor or such underwriter)
      and such

<Page>
                                      -22-

      number of copies of the summary, preliminary, final, amended or
      supplemented prospectuses included in such registration statement as such
      Participating Investor or such underwriter may reasonably request;

            (3) except with respect to a Shelf Registration Statement, the
      obligations of the Company with respect to the effectiveness thereof to be
      governed by Section 4.2, use reasonable best efforts to keep such
      registration statement effective for the earlier of (A) 180 days and (B)
      such time as all of the securities covered by the registration statement
      have been disposed (the "EFFECTIVE PERIOD"); prepare and file with the SEC
      such amendments, post-effective amendments and supplements to the
      registration statement and the prospectus as may be necessary to maintain
      the effectiveness of the registration for the Effective Period and to
      cause the prospectus (and any amendments or supplements thereto) to be
      filed;

            (4) use reasonable efforts to register or qualify the Investor
      Shares covered by such registration statement under such other securities
      or "blue sky" laws of such jurisdictions in the United States as are
      reasonably necessary, keep such registrations or qualifications in effect
      for so long as the registration statement remains in effect, and do any
      and all other acts and things which may be reasonably necessary to enable
      each Participating Investor or any underwriter to consummate the
      disposition of the Investor Shares in such jurisdictions;

            (5) use reasonable efforts to cause the Investor Shares to be
      registered with or approved by such other governmental agencies or
      authorities as may be necessary to enable each Participating Investor to
      consummate the disposition of the Investor Shares;

            (6) use reasonable efforts to cause all Investor Shares covered by
      such registration statement to be listed on the Nasdaq or on the principal
      securities exchange on which the Common Shares are then listed;

            (7) promptly notify each Participating Investor and the managing
      underwriter or underwriters, if any, after becoming aware thereof, (A)
      when the registration statement or any related prospectus or any amendment
      or supplement thereto has been filed, and, with respect to the
      registration statement or any post-effective amendment, when the same has
      become effective, (B) of any request by the SEC for amendments or
      supplements to the registration statement or the related prospectus or for
      additional information, (C) of the issuance by the SEC of any stop order
      suspending the effectiveness of the registration statement or the
      initiation of any proceedings for that purpose, (D) of the receipt by the
      Company of any notification with respect to the suspension of the
      qualification of the Investor Shares to be registered for sale in any
      jurisdiction or the initiation of any proceeding for such purpose or (E)
      within the Effective Pe-

<Page>
                                      -23-

      riod of the happening of any event or the existence of any fact that makes
      any statement in the registration statement or any post-effective
      amendment thereto, prospectus or any amendment or supplement thereto, or
      any document incorporated therein by reference untrue in any material
      respect or which requires the making of any changes in the registration
      statement or post-effective amendment thereto or any prospectus or
      amendment or supplement thereto so that they will not contain any untrue
      statement of a material fact or omit to state any material fact required
      to be stated therein or necessary to make the statements therein, in light
      of the circumstances under which they were made, not misleading;

            (8) during the Effective Period, use its reasonable efforts to
      obtain the withdrawal of any order enjoining or suspending the use or
      effectiveness of the registration statement or any post-effective
      amendment thereto;

            (9) deliver promptly to each of Warburg and H&F, if disposing of
      Investor Shares under such registration statement, copies of all
      correspondence between the SEC and the Company, its counsel or auditors
      and all memoranda relating to discussions with the SEC or its staff with
      respect to the registration statement and permit each of Warburg and H&F,
      if disposing of Investor Shares under such registration statement, to do
      such investigation, with respect to information contained in or omitted
      from the registration statement, as it reasonably deems necessary;

            (10) in the case of an underwritten offering, use best efforts to
      enter into an underwriting agreement customary in form and scope for
      underwritten secondary offerings of the nature contemplated by the
      applicable registration statement;

            (11) provide a transfer agent and registrar for all such Investor
      Shares covered by such registration statement not later than the effective
      date of such registration statement, subject to any applicable laws or
      regulations; and

            (12) cooperate with each Participating Investor and the managing
      underwriter or underwriters, if any, to facilitate the timely preparation
      and delivery of certificates representing such Investor Shares to be sold
      under the registration statement; and, in the case of an underwritten
      offering, enable such Investor Shares to be in such denominations and
      registered in such names as the managing underwriter or underwriters, if
      any, may request in writing at least two Business Days prior to any sale
      of the Investor Shares to the underwriters.

            (b) In the event that the Company would be required, pursuant to
Section 4.5(a)(7)(E) above, to notify each Participating Investor or the
managing underwriter or underwriters, if any, of the happening of any event
specified therein, the Company shall, subject to the provisions of Section
4.1(c) hereof, as promptly as practicable, prepare and furnish to

<Page>
                                      -24-

each Participating Investor and to each such underwriter a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to purchasers of Investor Shares that have been registered pursuant to this
Agreement, such prospectus shall not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading. Each Participating Investor agrees that, upon
receipt of any notice from the Company pursuant to Section 4.5(a)(7)(E) hereof,
it shall, and shall use its reasonable best efforts to cause any sales or
placement agent or agents for the Investor Shares and the underwriters, if any,
to, forthwith discontinue disposition of the Investor Shares until such Person
shall have received copies of such amended or supplemented prospectus and, if so
directed by the Company, to destroy or to deliver to the Company all copies,
other than permanent file copies, then in its possession of the prospectus
(prior to such amendment or supplement) covering such Investor Shares as soon as
practicable after such Participating Investor's receipt of such notice.

            (c) Each Participating Investor shall furnish to the Company in
writing its intended method of distribution of the Investor Shares it proposes
to dispose of and such other information as the Company may from time to time
reasonably request in writing, but only to the extent that such information is
required in order for the Company to comply with its obligations under all
applicable securities and other laws and to ensure that the prospectus relating
to such Investor Shares conforms to the applicable requirements of the
Securities Act. Each Participating Investor shall notify the Company as promptly
as practicable of any inaccuracy or change in information previously furnished
by such Participating Investor to the Company or of the occurrence of any event,
in either case as a result of which any prospectus relating to the Investor
Shares contains or would contain an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading, and promptly furnish to the Company any additional
information required to correct and update any previously furnished information
or required so that such prospectus shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

            (d) In the case of any registration under Section 4.1 hereof
pursuant to an underwritten offering, or in the case of a registration under
Section 4.3 hereof if the Company has determined to enter into an underwriting
agreement in connection therewith, all Investor Shares to be included in such
registration shall be subject to the applicable underwriting agreement and no
Person may participate in such registration unless such Person agrees to sell
such Person's securities on the basis provided therein and completes and
executes all questionnaires, indemnities, underwriting agreements and other
documents (other than powers of attorney) which must be executed in connection
therewith, and provides such other informa-

<Page>
                                      -25-

tion to the Company or the underwriter as may be reasonably requested to
register such Person's Investor Shares.

            Section 4.6. REGISTRATION EXPENSES. The Company shall bear all
registration and filing fees, fees and expenses of compliance with securities or
blue sky laws, fees and expenses in connection with the review of underwriting
arrangements by the NASD Regulation, Inc. (including the fees of any "qualified
independent underwriter"), agent fees and commissions, printing costs and fees
and disbursements of its counsel, and of one counsel as may be reasonably
selected by Warburg and H&F on behalf of the Participating Investors, and
accountants, in each case, in connection with any registration and listing of
any Investor Shares pursuant to Section 4.1, 4.2 or 4.3, other than underwriting
discounts or commissions in connection with the Investor Shares disposed of by
any Participating Investor, which shall be borne by such Participating Investor.

            Section 4.7. INDEMNIFICATION; CONTRIBUTION. (a) The Company shall,
and it hereby agrees to, indemnify and hold harmless each Participating Investor
and its partners, members, officers, directors, employees and controlling
Persons, if any, and each underwriter, its partners, officers, directors,
employees and controlling Persons, if any, in any offering or sale of Common
Shares, against any losses, claims, damages or liabilities to which each such
indemnified party may become subject, insofar as such losses, claims, damages or
liabilities, or actions or proceedings in respect thereof, including any amounts
paid in settlement as provided herein (collectively, "CLAIMS"), arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in any registration statement, or any preliminary or final
prospectus contained therein, or any amendment or supplement thereto, or any
document incorporated by reference therein, or arise out of or are based upon
any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, and the Company shall,
and it hereby agrees to, reimburse each Participating Investor or any such
underwriter for any legal or other out-of-pocket expenses reasonably incurred by
it in connection with investigating or defending any such Claims; PROVIDED,
HOWEVER, that the Company shall not be liable to any such Person in any such
case to the extent that any such Claims arise out of or are based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, or preliminary or final prospectus, or amendment or
supplement thereto, in reliance upon and in conformity with information
furnished in writing to the Company by such Participating Investor or any
underwriter expressly for use therein.

            (b) Each Participating Investor shall, and hereby agrees to (1)
indemnify and hold harmless the Company, its directors, officers, employees and
controlling Persons, if any, and each underwriter, its partners, officers,
directors, employees and controlling Persons, if any, in any offering or sale of
Common Shares, against any Claims to which each such in-

<Page>
                                      -26-

demnified party may become subject, insofar as such Claims arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
contained in such registration statement, or any preliminary or final prospectus
contained therein, or any amendment or supplement thereto, or any document
incorporated by reference therein, or arise out of or are based upon any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
each case only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such
Participating Investor expressly for use therein, and (2) reimburse the Company
for any legal or other out-of-pocket expenses reasonably incurred by the Company
in connection with investigating or defending any such Claim.

            (c) Promptly after receipt by an indemnified party under Section
4.7(a) or Section 4.7(b) of written notice of the commencement of any action or
proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may
be requested, such indemnified party shall notify the indemnifying party in
writing of the commencement of such action or proceeding, but the omission so to
notify the indemnifying party shall not relieve it from any liability which it
may have to any indemnified party in respect of such action or proceeding
hereunder unless the indemnifying party was materially prejudiced by such
failure of the indemnified party to give such notice, and in no event shall such
omission relieve the indemnifying party from any other liability it may have to
such indemnified party. In case any such action or proceeding shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall determine, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party, and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, such indemnifying party shall not be liable to such
indemnified party for any legal or any other expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than
reasonable costs of investigation. If the indemnifying party is not entitled to,
or elects not to, assume the defense of a claim, it will not be obligated to pay
the fees and expenses of more than one counsel for each indemnified party with
respect to such claim. The indemnifying party will not be subject to any
liability for any settlement made without its consent, which consent shall not
be unreasonably withheld or delayed. No indemnifying party shall, without the
prior written consent of the indemnified party, compromise or consent to entry
of any judgment or enter into any settlement agreement with respect to any
action or proceeding in respect of which indemnification is sought under Section
4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or
potential party thereto), unless such compromise, consent or settlement includes
an unconditional release of the indemnified party from all liability in respect
of such claim or litigation and does not subject the indemnified party to any
material injunctive relief or other material equitable remedy.

<Page>
                                      -27-

            (d) Each Participating Investor and the Company agree that if, for
any reason, the indemnification provisions contemplated by Sections 4.7(a) or
4.7(b) hereof are unavailable to or are insufficient to hold harmless an
indemnified party in respect of any Claims referred to therein (other than as a
result of the provisos thereto), then each indemnifying party shall contribute
to the amount paid or payable by such indemnified party as a result of such
Claims in such proportion as is appropriate to reflect the relative fault of and
benefits derived by the indemnifying party, on the one hand, and the indemnified
party, on the other hand, as well as other equitable considerations. The amount
paid or payable by an indemnified party as a result of the Claims referred to
above shall be deemed to include (subject to the limitations set forth in
Section 4.7(c) hereof) any legal or other fees or expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
action, proceeding or claim. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

                                    ARTICLE V

                      TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS;
                     RESTRICTIONS ON TRANSFER AND CONVERSION

            Section 5.1. TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS. (a) In the event
that Warburg, H&F or GE proposes to sell, convey, dispose or otherwise transfer
Initial Shares (such party proposing to sell, the "SELLING INVESTOR") in a bona
fide transaction to an un-Affiliated third party, or in a series of related bona
fide transactions to multiple un-Affiliated third parties, and the net proceeds
of such sale are reasonably expected to exceed $50 million (such a transaction,
or series of related transactions, a "THIRD PARTY SALE"), such Selling Investor
shall notify the other Investors having rights under this Section 5.1 (each such
other Investor, a "TAG-ALONG INVESTOR") in writing of such Third Party Sale,
which notice shall set forth the material terms of such Third Party Sale,
including, without limitation, the number of Initial Shares proposed to be sold
and the per share price thereof (the "THIRD PARTY SALE NOTICE"). Such Tag-Along
Investor shall have the right, but not the obligation, to participate in such
Third Party Sale with respect to Initial Shares upon providing the Selling
Investor written notice of intent to exercise such right within ten Business
Days of the receipt of Third Party Sale Notice; PROVIDED, HOWEVER, that (i) GE
shall have such rights only (A) if Warburg is the Selling Investor, or (B) if
H&F is the Selling Investor and Warburg shall have exercised its rights to
become a Tag-Along Investor under this Section 5.1, and (ii) Farallon shall have
such rights only (A) if H&F is the Selling Investor, or (B) if Warburg is the
Selling Investor and H&F shall have exercised its rights to become a Tag-Along
Investor under this Section 5.1. Such notice shall set forth the number of
Initial Shares that such Tag-Along In-

<Page>
                                      -28-

vestor desires to sell in such Third Party Sale, which such number shall not
exceed that number of Initial Shares equal to the product of (i) the number of
Initial Shares set forth in the Third Party Sale Notice, and (ii) the quotient
of (A) the Retained Investment of such Tag-Along Investor, over (B) the sum of
(I) the Retained Investment of the Selling Investor, and (II) the Retained
Investment of all Tag-Along Investors. Notwithstanding the foregoing, this
Section 5.1 shall not be applicable to any sale effected in the public markets
(including by means of a "block trade" effected through any registered
broker-dealer), or to any distribution to partners of any partnership in which
either Warburg or H&F, or any of their respective Affiliates, is the general
partner.

            (b) In the event that Warburg or H&F proposes to become a Selling
Investor under Section 5.1(a), Trident shall have the rights of a Tag-Along
Investor under Section 5.1(a).

            (c) In the event that Warburg and/or H&F proposes to sell, convey,
dispose or otherwise transfer Initial Shares representing either 51% of the
votes then entitled to be cast in the election of directors, or 51% of the then
outstanding Common Shares (taking into account Common Shares issuable upon
conversion of the Preference Shares) in a transaction, or in a series of related
transactions, to a single Person or group, Warburg and H&F shall have the right
to require that Trident, and Trident shall have the obligation to, participate
in such transaction, up to a number of Initial Shares then Beneficially Owned by
Trident that shall not exceed that number of Initial Shares equal to the product
of (i) the number of Initial Shares proposed to be transferred, and (ii) the
quotient of (A) the Retained Investment of Trident, over (B) the sum of (I) the
Retained Investment of Warburg and H&F, and (II) the Retained Investment of
Trident and all other Investors participating in such sale.

            (d) No Tag-Along Investor under this Section 5.1 shall be required
to assume any responsibility for any indemnification obligations arising under
such Third Party Sale in excess of the proportion of the number of Initial
Shares sold by such party to the total number of Initial Shares sold in such
Third Party Sale; PROVIDED, HOWEVER, that the limitation provided in this
Section 5.1(d) shall not be applicable to any indemnification obligations
resulting from representations or warranties specifically relating to, and made
by or on behalf of, such party.

            Section 5.2. RESTRICTIONS ON TRANSFER. Until the earliest to occur
of (a) the first anniversary of the Closing, (b) the occurrence of any event
that would cause Company's outstanding Class B Warrants to vest and/or become
exercisable, or (c) the completion by the Company of a registered public
offering of Common Shares the net proceeds to the Company of which exceed $25
million, each of Warburg, H&F, Farallon, GE and Trident, and each Management
Purchaser, agrees that it or he will not sell, dispose, convey or otherwise
transfer any of such Investor's Initial Shares if, following the consummation of
such sale, the Re-

<Page>
                                      -29-

tained Percentage of such Investor would be less than 66%; PROVIDED, HOWEVER,
that GE and Farallon shall have the right to sell, dispose, convey or otherwise
transfer Initial Shares to any GE Permitted Transferee or any Farallon Permitted
Transferee, respectively; PROVIDED, FURTHER, that such GE Permitted Transferee
or such Farallon Permitted Transferee, as the case may be, shall become a party
hereto and agree to be bound by the terms hereof. The foregoing shall not
prohibit any transfer by a Management Purchaser of his Initial Shares (i) as a
bona fide gift to members of his immediate family, (ii) made to any trust for
the benefit of such Management Purchaser or members of his immediate family or
(iii) to a corporation, limited liability company, limited partnership or
general partnership all of the equity interests are owned by such Management
Purchaser, members of his immediate family and/or one or more trusts described
in clause (ii); provided that the transferee thereof agrees, subject to the next
sentence, not to sell, dispose, convey or otherwise transfer any of the Initial
Shares as to which such Management Purchaser is relying on the exception
provided by this sentence (it being understood that, with respect to Sound View
Partners, L.P. and Otter Capital LLC, references to "Management Purchaser" in
this sentence shall include Robert Clements and John M. Pasquesi, respectively).
Following the earliest to occur of clauses (a), (b) or (c) in this Section 5.2,
there shall be no restrictions on transfer of any Initial Shares, except as may
be imposed by applicable law, including by the Securities Act. Nothing in this
Section 5.2 shall be deemed to affect any disposition of Initial Shares pursuant
to the terms of any merger, consolidation or other business combination
transaction, or to the tender of any Initial Shares into any tender or exchange
offer, PROVIDED, that such merger, consolidation or other business combination
has been approved by, or such tender or exchange offer has been recommended to,
the shareholders of the Company by, the Board.

            Section 5.3. RESTRICTIONS ON CONVERSION. Prior to the receipt of the
Requisite Nasdaq Approval, no Investor shall convert any Preference Share or
exercise any Class A Warrant, if the number of Common Shares to be issued to
such Investor upon such conversion or exercise, together with all Common Shares
issued upon prior conversions or exercise by such holder, would exceed such
Investor's Permissible Conversion Amount. An Investor's "PERMISSIBLE CONVERSION
AMOUNT" shall be a number of Common Shares equal to the product of (a) the total
number of Common Shares issuable to such Investor upon conversion or exercise of
all such Investor's Initial Shares, and (b) a fraction the numerator of which is
(i) (A) the lesser of (x) the product of .199 times the total number of Common
Shares issued and outstanding on November 19, 2001 and (y) the product of .199
times the total voting power of the Common Shares issued and outstanding on
November 19, 2001, minus (B) the 140,380 Common Shares issued on November 20,
2001, and the denominator of which is (ii) the total number of Common Shares
issuable upon conversion or exercise of all Initial Shares. Prior to the Receipt
of the Requisite Shareholder Approval, each holder of Preference Shares and
Class A Warrants issued under the Subscription Agreement or the Management
Subscription Agreement shall require any transferee of Preference Shares or
Class A Warrants to agree to this restriction, such that it applies to such
transferee as if such trans-

<Page>
                                      -30-

feree had acquired such securities at Closing, and attributing to such
transferee a pro rata portion of any conversion or exercise by the transferor,
prior to such transfer. Prior to receipt of the Requisite Regulatory Approval,
no Investor shall convert any Preference Shares into Common Shares or exercise
any Class A Warrants unless all necessary approvals for such ownership of Common
Shares have been obtained, it being understood that, subject to Section 5.2
hereof, this restriction on conversion and exercise shall not restrict an
Investor from converting or exercising and selling, or otherwise disposing of,
the shares received on conversion or exercise in such a manner as would not
result in violation of any applicable regulation. GE shall not convert any
Preference Shares, or exercise any Class A Warrant, until such time as any
required waiting period, including extensions thereof, under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, shall have
expired or been terminated.

                                   ARTICLE VI

                 RESTRICTIONS ON DIVIDENDS AND SHARE REPURCHASES

            The Company shall not declare any dividend or make any other
distribution on, or in respect of, any Common Shares, and shall not repurchase
any Common Shares, until such time as the Company has repurchased from Warburg
and H&F, in proportion to their respective Retained Investments at the time of
such repurchase, Initial Shares having an aggregate value of $250 million, at a
per share price acceptable to Warburg and H&F.

                                   ARTICLE VII

                          EFFECTIVENESS AND TERMINATION

            Section 7.1. EFFECTIVENESS. This Agreement shall take effect
immediately upon the Closing and shall remain in effect until it is terminated
pursuant to Section 7.2 hereof.

            Section 7.2. TERMINATION. Other than with respect to Article IV
hereof and with respect to the termination provisions specifically elsewhere set
forth in this Agreement as may be applicable to any particular Section of this
Agreement, this Agreement shall terminate upon the earliest to occur of the
following:

            (a) the tenth anniversary of the Closing; or

<Page>
                                      -31-

            (b) mutual written agreement of the Company, Warburg and H&F at any
      time to terminate this Agreement.

                                  ARTICLE VIII

            MISCELLANEOUS

            Section 8.1. INJUNCTIVE RELIEF. Each party hereto acknowledges that
it would be impossible to determine the amount of damages that would result from
any breach of any of the provisions of this Agreement and that the remedy at law
for any breach, or threatened breach, of any of such provisions would likely be
inadequate and, accordingly, agrees that each other party shall, in addition to
any other rights or remedies which it may have, be entitled to seek such
equitable and injunctive relief as may be available from any court of competent
jurisdiction to compel specific performance of, or restrain any party from
violating, any of such provisions. In connection with any action or proceeding
for injunctive relief, each party hereto hereby waives the claim or defense that
a remedy at law alone is adequate and agrees, to the maximum extent permitted by
law, to have each provision of this Agreement specifically enforced against it,
without the necessity of posting bond or other security against it, and consents
to the entry of injunctive relief against it enjoining or restraining any breach
or threatened breach of such provisions of this Agreement.

            Section 8.2. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon, and shall inure to the benefit of and be enforceable by the Company,
Warburg and H&F, and for the purposes of such provisions hereof as may be
indicated immediately above the signatures of Farallon, GE, Trident and each
Management Purchaser, and their respective successors and permitted assigns, and
no such term or provision is for the benefit of, or intended to create any
obligations to, any other Person, except as otherwise specifically provided in
this Agreement. Neither this Agreement nor any rights or obligations hereunder
shall be assignable without the consent of each other party; PROVIDED, HOWEVER,
that in connection with any sale or transfer by Warburg or H&F of any Investor
Shares, the transferee of such Investor Shares may become a party hereto solely
for purposes of Article IV and Sections 3.4, 5.2 and 5.3 hereof and have the
rights of, and be subject to the obligations of, an "Investor" upon due
execution and delivery of a counterpart signature page hereto. Notwithstanding
the foregoing, GE or Farallon may assign its rights hereunder to any GE
Permitted Transferee or any Farallon Permitted Transferee, respectively,
PROVIDED such GE Permitted Transferee or Farallon Permitted Transferee, as the
case may be, becomes a party hereto and agrees to be bound by the terms hereof.

            Section 8.3. AMENDMENTS; WAIVER. This Agreement may be amended only
by an agreement in writing executed by the parties hereto. Any party may waive
in whole or

<Page>
                                      -32-

in part any benefit or right provided to it under this Agreement, such waiver
being effective only if contained in a writing executed by the waiving party. No
failure by any party to insist upon the strict performance of any covenant,
duty, agreement or condition of this Agreement or to exercise any right or
remedy consequent upon breach thereof shall constitute a waiver of any such
breach or of any other covenant, duty, agreement or condition, nor shall any
delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it thereafter.

            Section 8.4. NOTICES. Except as otherwise provided in this
Agreement, all notices, requests, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, when delivered personally or by facsimile
transmission if promptly electronically confirmed, as follows, or as set forth
on the signature page executed by any Investor:

            If to Company:

            Arch Capital Group, Ltd.
            20 Horseneck Lane
            Greenwich, Connecticut 06830
            Attention: General Counsel
            Telephone: (203) 862-4300
            Fax: (203) 861-7240

            with a copy to:

            Cahill Gordon & Reindel
            80 Pine Street
            New York, New York 10005
            Attention: Immanuel Kohn, Esq.
            Telephone: (212) 701-3000
            Fax: (212) 269-5420

            If to Warburg:

            c/o Warburg, Pincus Equity Partners, L.P.
            466 Lexington Avenue
            New York, New York 10017
            Attention: Scott A. Arenare, Esq.
            Telephone: (212) 878-0600
            Fax: (212) 878-9200

<Page>
                                      -33-

            with a copy to:

            Wachtell, Lipton, Rosen & Katz
            51 West 52nd Street
            New York, NY  10019
            Attention: Andrew R. Brownstein, Esq.
            Telephone: (212) 403-1000
            Fax: (212) 403-2000

            If to H&F:

            c/o Hellman & Friedman LLC
            One Maritime Plaza
            Suite 1200
            San Francisco, CA 94111
            Attention: Richard M. Levine, Esq.
            Telephone: (415) 788-5111
            Fax: (415) 788-0176

            with a copy to:

            Wachtell, Lipton, Rosen & Katz
            51 West 52nd Street
            New York, NY  10019
            Attention: Patricia A. Vlahakis, Esq.
            Telephone: (212) 403-1000
            Fax: (212) 403-2000

or to such other address, facsimile number or telephone as either party may,
from time to time, designate in a written notice given in a like manner.

            Section 8.5. APPLICABLE LAW. Except to the extent of the
applicability of the Companies Law of Bermuda to this Agreement, this Agreement
shall be governed by and construed in accordance with the laws of the State of
New York with regard to contracts formed and to be entirely performed within
such state without giving effect to principles of conflicts of law.

            Section 8.6. HEADINGS. The descriptive headings of the several
sections in this Agreement are for convenience only and do not constitute a part
of this Agreement and shall not be deemed to limit or affect in any way the
meaning or interpretation of this Agreement. References to "Sections" and
"Articles" herein shall be to the Sections or Articles of this Agreement, unless
the context requires otherwise.

<Page>
                                      -34-

            Section 8.7. INTEGRATION. This Agreement and the other writings
referred to herein or delivered pursuant hereto which form a part hereof contain
the entire understanding of the parties with respect to its subject matter. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to its subject matter.

            Section 8.8. SEVERABILITY. If any term or provision of this
Agreement or any application thereof shall be declared or held invalid, illegal
or unenforceable, in whole or in part, whether generally or in any particular
jurisdiction, such provision shall be deemed amended to the extent, but only to
the extent, necessary to cure such invalidity, illegality or unenforceability,
and the validity, legality and enforceability of the remaining provisions, both
generally and in every other jurisdiction, shall not in any way be affected or
impaired thereby.

            Section 8.9. CONSENT TO JURISDICTION. In connection with any suit,
claim, action or proceeding arising out of this Agreement, the parties each
hereby consent to the in personam jurisdiction of the United States federal
courts and state courts located in the Borough of Manhattan, City of New York,
State of New York; the Company, Warburg and H&F each agree that service in the
manner set forth in Section 8.4 hereof shall be valid and sufficient for all
purposes; and the parties each agree to, and irrevocably waive any objection
based on forum non conveniens or venue, appear in any United States federal
court or state court located in the Borough of Manhattan, City of New York,
State of New York.

            Section 8.10. COUNTERPARTS. This Agreement may be executed by the
parties hereto in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

<Page>

            IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed by their respective authorized officers as of the date set forth
at the head of this Agreement.

                                    ARCH CAPITAL GROUP LTD.

                                    By:  /s/ Louis T. Petrillo
                                         -------------------------------
                                         Name:  Louis T. Petrillo
                                         Title: Senior Vice President and
                                                General Counsel

                                    HFCP IV (BERMUDA), L.P.

                                    By:  H&F Investors IV (Bermuda), L.P.,
                                         its General Partner,

                                         By: H&F Corporate Investors IV
                                             (Bermuda) Ltd., its General Partner

                                    By:  /s/ David R. Tunnell
                                         -------------------------------
                                         Name:  David R. Tunnell
                                         Title: Authorized Signatory

                                    H&F INTERNATIONAL PARTNERS
                                       IV-A (BERMUDA), L.P.

                                    By:  H&F Investors IV (Bermuda), L.P.,
                                         its General Partner,

                                         By: H&F Corporate Investors IV
                                             (Bermuda) Ltd., its General Partner

                                    By:  /s/ David R. Tunnell
                                         -------------------------------
                                         Name:  David R. Tunnell
                                         Title: Authorized Signatory

<Page>

                                    H&F INTERNATIONAL PARTNERS
                                       IV-B (BERMUDA), L.P.

                                    By:  H&F Investors IV (Bermuda), L.P.,
                                         its General Partner,

                                         By: H&F Corporate Investors IV
                                             (Bermuda) Ltd., its General Partner

                                    By:  /s/ David R. Tunnell
                                         -------------------------------
                                         Name:  David R. Tunnell
                                         Title: Authorized Signatory

                                    H&F EXECUTIVE FUND IV
                                       (BERMUDA), L.P.

                                    By:  H&F Investors IV (Bermuda), L.P.,
                                         its General Partner,

                                         By: H&F Corporate Investors IV
                                             (Bermuda) Ltd., its General Partner

                                    By:  /s/ David R. Tunnell
                                         -------------------------------
                                         Name:  David R. Tunnell
                                         Title: Authorized Signatory

<Page>

                                    WARBURG PINCUS NETHERLANDS
                                       INTERNATIONAL PARTNERS I, C.V.

                                         By: Warburg, Pincus & Co.,
                                             its General Partner,

                                    By:  /s/ Kewsong Lee
                                         -------------------------------
                                         Name:  Kewsong Lee
                                         Title: Partner

                                    WARBURG PINCUS NETHERLANDS
                                       INTERNATIONAL PARTNERS II, C.V.

                                         By: Warburg, Pincus & Co.,
                                             its General Partner,

                                    By:  /s/ Kewsong Lee
                                         -------------------------------
                                         Name:  Kewsong Lee
                                         Title: Partner

                                    WARBURG PINCUS (BERMUDA)
                                       INTERNATIONAL PARTNERS, L.P.

                                         By: Warburg, Pincus (Bermuda)
                                             International Ltd.
                                             its General Partner,

                                    By:  /s/ Kewsong Lee
                                         -------------------------------
                                         Name:  Kewsong Lee
                                         Title: Partner

<Page>

                                    WARBURG PINCUS (BERMUDA)
                                       PRIVATE EQUITY VIII, L.P.

                                         By: Warburg, Pincus (Bermuda)
                                             Private Equity Ltd.
                                             its General Partner,

                                    By:  /s/ Kewsong Lee
                                         -------------------------------
                                         Name:  Kewsong Lee
                                         Title: Partner

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    TRIDENT II, L.P.

                                         By: MMC Capital, Inc.,
                                             as Manager

                                    By:  /s/ David J. Wermuth
                                         -------------------------------
                                         Name:  David J. Wermuth
                                         Title: Principal

                                    Notice Information for Trident II, L.P.:

                                    c/o Maples and Calder Ugland House
                                    South Church Street
                                    George Town Grand Cayman
                                    Cayman Islands, British West Indies
                                    Attention:  Charles Jennings
                                    Facsimile:  (345) 949-8080

                                    and

                                    c/o MMC Capital, Inc.
                                    20 Horseneck Lane
                                    Greenwich, CT  06830
                                    Attention:  David Wermuth
                                    Facsimile:  (203) 862-2925

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    MARSH & MCLENNAN CAPITAL
                                       PROFESSIONALS FUND, L.P.

                                         By: MMC Capital, Inc.,
                                             as Manager

                                    By:  /s/ David J. Wermuth
                                         -------------------------------
                                         Name:  David J. Wermuth
                                         Title: Principal

                                    Notice Information for Trident II, L.P.:

                                    c/o Maples and Calder Ugland House
                                    South Church Street
                                    George Town Grand Cayman
                                    Cayman Islands, British West Indies
                                    Attention:  Charles Jennings
                                    Facsimile:  (345) 949-8080

                                    and

                                    c/o MMC Capital, Inc.
                                    20 Horseneck Lane
                                    Greenwich, CT 06830
                                    Attention:  David Wermuth
                                    Facsimile:  (203) 862-2925

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    MARSH & MCLENNAN EMPLOYEES'
                                       SECURITIES COMPANY, L.P.

                                         By: MMC Capital, Inc.,
                                             as Manager

                                    By:  /s/ David J. Wermuth
                                         -------------------------------
                                         Name:  David J. Wermuth
                                         Title: Principal

                                    Notice Information for Trident II, L.P.:

                                    c/o Maples and Calder Ugland House
                                    South Church Street
                                    George Town Grand Cayman
                                    Cayman Islands, British West Indies
                                    Attention:  Charles Jennings
                                    Facsimile:  (345) 949-8080

                                    and

                                    c/o MMC Capital, Inc.
                                    20 Horseneck Lane
                                    Greenwich, CT  06830
                                    Attention:  David Wermuth
                                    Facsimile:  (203) 862-2925

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    FARALLON CAPITAL PARTNERS, L.P.

                                         By: Farallon Partners, L.L.C.,
                                             its General Partner

                                    By:  /s/ Monica R. Landry
                                         -------------------------------
                                         Name:  Monica R. Landry
                                         Title: Managing Member

                                    Notice Information for Farallon Capital
                                    Partners, L.P.:

                                    c/o Farallon Capital Management, L.L.C.
                                    One Maritime Plaza
                                    Suite 1325
                                    San Francisco, CA 94111
                                    Attention: Mark Wehrly and
                                               Sarah Aitcheson
                                    Telephone:  (415) 421-2132
                                    Facsimile:  (415) 421-2133

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    FARALLON CAPITAL INSTITUTIONAL
                                       PARTNERS II, L.P.

                                         By: Farallon Partners, L.L.C.,
                                             its General Partner

                                    By:  /s/ Monica R. Landry
                                         -------------------------------
                                         Name:  Monica R. Landry
                                         Title: Managing Member

                                    Notice Information for Farallon Capital
                                    Institutional Partners II, L.P.:

                                    c/o Farallon Capital Management, L.L.C.
                                    One Maritime Plaza
                                    Suite 1325
                                    San Francisco, CA 94111
                                    Attention: Mark Wehrly and
                                               Sarah Aitcheson
                                    Telephone:  (415) 421-2132
                                    Facsimile:  (415) 421-2133

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    FARALLON CAPITAL INSTITUTIONAL
                                       PARTNERS III, L.P.

                                         By: Farallon Partners, L.L.C.,
                                             its General Partner

                                    By:  /s/ Monica R. Landry
                                         -------------------------------
                                         Name:  Monica R. Landry
                                         Title: Managing Member

                                    Notice Information for Farallon Capital
                                    Institutional Partners III, L.P.:

                                    c/o Farallon Capital Management, L.L.C.
                                    One Maritime Plaza
                                    Suite 1325
                                    San Francisco, CA 94111
                                    Attention: Mark Wehrly and
                                               Sarah Aitcheson
                                    Telephone:  (415) 421-2132
                                    Facsimile:  (415) 421-2133

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    RR CAPITAL PARTNERS, L.P.

                                         By: Farallon Partners, L.L.C.,
                                             its General Partner

                                    By:  /s/ Monica R. Landry
                                         -------------------------------
                                         Name:  Monica R. Landry
                                         Title: Managing Member

                                    Notice Information for RR Capital Partners,
                                    L.P.:

                                    c/o Farallon Capital Management, L.L.C.
                                    One Maritime Plaza
                                    Suite 1325
                                    San Francisco, CA 94111
                                    Attention: Mark Wehrly and
                                               Sarah Aitcheson
                                    Telephone:  (415) 421-2132
                                    Facsimile:  (415) 421-2133

<Page>

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    INSURANCE PRIVATE EQUITY
                                       INVESTORS, L.L.C.

                                         By: GE Asset Management Incorporated,
                                             its Manager,

                                    By:  /s/ Patrick McNeela
                                         -------------------------------
                                         Name:  Patrick McNeela
                                         Title: Vice President

                                    Notice Information for Insurance Private
                                    Equity Investors, L.L.C.:

                                    c/o GE Asset Management Incorporated
                                    3003 Summer Street
                                    Stamford, CT  06905
                                    Attention:  Michael M. Pastore, Esq.

                                    FOR PURPOSES OF ARTICLES II, IV AND V AND
                                    SECTION 3.4 HEREOF:

                                    ORBITAL HOLDINGS, LTD.

                                    By:  /s/ Lorraine Hliboki
                                         -------------------------------
                                         Name:  Lorraine Hliboki
                                         Title: Attorney-in-fact

                                    Notice Information for Orbital Holdings,
                                    Ltd.:

                                    c/o GE Capital
                                    120 Longridge Rd.
                                    Stamford, CT  06927

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    SOUND VIEW PARTNERS LP

                                         By: Robert Clements,
                                             its General Partner

                                    By:  /s/ Robert Clements
                                         -------------------------------
                                         Name:  Robert Clements
                                         Title: General Partner

                                    Notice Information for Sound View Partners
                                    LP:

                                    c/o Arch Capital Group Ltd.
                                    20 Horseneck Lane
                                    Greenwich, CT 06830
                                    Attention:  Robert Clements
                                    Facsimile:  (203) 625-8366

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    OTTER CAPITAL LLC

                                         By: John Pasquesi,
                                             its Managing Member

                                    By:  /s/ John Pasquesi
                                         -------------------------------
                                         Name:  John Pasquesi
                                         Title: Managing Member

                                    Notice Information for Otter Capital LLC:

                                    One Maritime Plaza, 12th Floor
                                    San Francisco, CA  94111
                                    Attention:  John Pasquesi
                                    Facsimile:  (415) 788-0176

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    PETER A. APPEL

                                    By:  /s/ Peter A. Appel
                                         -------------------------------
                                         Name: Peter A. Appel

                                    Notice Information for Peter A. Appel:

                                    c/o Arch Capital Group Ltd.
                                    20 Horseneck Lane
                                    Greenwich, CT  06830
                                    Attention:  Robert Clements
                                    Facsimile:  (203) 625-8366

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    PAUL B. INGREY

                                    By:  /s/ Paul B. Ingrey
                                         -------------------------------
                                         Name: Paul B. Ingrey

                                    Notice Information for Paul B. Ingrey:

                                    c/o Arch Reinsurance Ltd.
                                    Wessex House
                                    45 Reid Street
                                    Hamilton HM 12
                                    Bermuda
                                    Attention:  Paul B. Ingrey
                                    Facsimile:  (441) 296-8241

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    DWIGHT R. EVANS

                                    By:  /s/ Dwight R. Evans
                                         -------------------------------
                                         Name: Dwight R. Evans

                                    Notice Information for Dwight R. Evans:

                                    8 Kent Place
                                    Westfield, NJ 07090
                                    Attention:  Dwight R. Evans

<Page>

                                    FOR PURPOSES OF ARTICLE IV AND SECTIONS 3.4,
                                    5.2 AND 5.3 HEREOF:

                                    MARC GRANDISSON

                                    By:  /s/ Marc Grandisson
                                         -------------------------------
                                         Name: Marc Grandisson

                                    Notice Information Marc Grandisson:

                                    c/o Arch Reinsurance Ltd.
                                    Wessex House
                                    45 Reid Street
                                    Hamilton HM 12
                                    Bermuda
                                    Attention:  Marc Grandisson
                                    Facsimile:  (441) 296-8241

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