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Exhibit 4.19    
  

WILLIS NORTH AMERICA INC.,  

                                         
                                          
                                          
             Issuer
  

 WILLIS GROUP HOLDINGS LIMITED  

 TA I LIMITED  

 TA II LIMITED  

 TA III LIMITED  

 TRINITY ACQUISITION LIMITED  

 TA IV LIMITED  

 WILLIS GROUP LIMITED  

 WILLIS PARTNERS,  

                                         
                                          
                                          
             Guarantors
  

 and  

 CITIBANK, N.A.,  

                                         
                                          
                                          
             Trustee
  

 Indenture  

 Dated as of                         

 Subordinated Debt Securities  

 
  
 

    Table of Contents    
  

	 
	 	 
	 	Page

	RECITALS OF THE ISSUER	 	1
	

ARTICLE ONE	
 	

1
	 	SECTION 1.01.	 	Definitions	 	1
	 	SECTION 1.02.	 	Compliance Certificates and Opinions	 	9
	 	SECTION 1.03.	 	Form of Documents Delivered to Trustee	 	10
	 	SECTION 1.04.	 	Acts of Holders	 	10
	 	SECTION 1.05.	 	Notices, etc. to Trustee and Issuer	 	11
	 	SECTION 1.06.	 	Notice to Holders; Waiver	 	12
	 	SECTION 1.07.	 	Conflict with Trust Indenture Act	 	12
	 	SECTION 1.08.	 	Effect of Headings and Table of Contents	 	12
	 	SECTION 1.09.	 	Successors and Assigns	 	12
	 	SECTION 1.10.	 	Separability Clause	 	12
	 	SECTION 1.11.	 	Benefits of Indenture	 	12
	 	SECTION 1.12.	 	Governing Law	 	12
	 	SECTION 1.13.	 	Legal Holidays	 	12
	

ARTICLE TWO SECURITY FORMS	
 	

13
	 	SECTION 2.01.	 	Forms Generally	 	13
	 	SECTION 2.02.	 	Form of Trustee's Certificate of Authentication	 	13
	 	SECTION 2.03.	 	Securities in Global Form	 	14
	

ARTICLE THREE THE SECURITIES	
 	

14
	 	SECTION 3.01.	 	Amount Unlimited; Issuable in Series	 	14
	 	SECTION 3.02.	 	Denominations	 	16
	 	SECTION 3.03.	 	Execution, Authentication, Delivery and Dating	 	16
	 	SECTION 3.04.	 	Temporary Securities	 	17
	 	SECTION 3.05.	 	Registration, Registration of Transfer and Exchange Global Securities Representing the Securities	 	17
	 	SECTION 3.06.	 	Mutilated, Destroyed, Lost and Stolen Securities	 	19
	 	SECTION 3.07.	 	Payment of Interest; Interest Rights Preserved	 	20
	 	SECTION 3.08.	 	Persons Deemed Owners	 	21
	 	SECTION 3.09.	 	Cancellation	 	21
	 	SECTION 3.10.	 	Computation of Interest	 	21
	 	SECTION 3.11.	 	CUSIP Numbers	 	21

i

 

	

ARTICLE FOUR SUBORDINATION OF SECURITIES	
 	

22
	 	SECTION 4.01.	 	Agreement To Subordinate	 	22
	 	SECTION 4.02.	 	Liquidation, Dissolution, Bankruptcy	 	22
	 	SECTION 4.03.	 	Default on Senior Indebtedness	 	22
	 	SECTION 4.04.	 	Acceleration of Payment of Securities	 	23
	 	SECTION 4.05.	 	When Distribution Must Be Paid Over	 	23
	 	SECTION 4.06.	 	Subrogation	 	23
	 	SECTION 4.07.	 	Relative Rights	 	23
	 	SECTION 4.08.	 	Subordination May Not Be Impaired by Issuer	 	24
	 	SECTION 4.09.	 	Rights of Trustee and Paying Agent	 	24
	 	SECTION 4.10.	 	Distribution or Notice to Representative	 	24
	 	SECTION 4.11.	 	Article Four Not to Prevent Events of Default or Limit Right to Accelerate	 	24
	 	SECTION 4.12.	 	Trust Moneys Not Subordinated	 	24
	 	SECTION 4.13.	 	Trustee Entitled to Rely	 	24
	 	SECTION 4.14.	 	Trustee to Effectuate Subordination	 	25
	 	SECTION 4.15.	 	Trustee Not Fiduciary for Holders of Senior Indebtedness	 	25
	 	SECTION 4.16.	 	Reliance by Holders of Senior Indebtedness on Subordination Provisions	 	25
	 	SECTION 4.17.	 	Trustee's Compensation Not Prejudiced	 	25
	 	SECTION 4.18.	 	Defeasance	 	26
	

ARTICLE FIVE SATISFACTION AND DISCHARGE; DEFEASANCE	
 	

26
	 	SECTION 5.01.	 	Satisfaction and Discharge of Securities of any Series	 	26
	 	SECTION 5.02.	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	27
	 	SECTION 5.03.	 	Legal Defeasance and Discharge	 	27
	 	SECTION 5.04.	 	Covenant Defeasance	 	27
	 	SECTION 5.05.	 	Conditions to Legal or Covenant Defeasance	 	28
	 	SECTION 5.06.	 	Survival of Certain Obligations	 	29
	 	SECTION 5.07.	 	Application of Trust Money	 	29
	 	SECTION 5.08.	 	Repayment of Moneys Held by Paying Agent	 	29
	 	SECTION 5.09.	 	Reinstatement	 	29
	

ARTICLE SIX REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT	
 	

30
	 	SECTION 6.01.	 	Events of Default	 	30
	 	SECTION 6.02.	 	Acceleration of Maturity; Rescission and Annulment	 	31
	 	SECTION 6.03.	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	32
	 	SECTION 6.04.	 	Trustee May File Proofs of Claim	 	32
	 	SECTION 6.05.	 	Trustee May Enforce Claims without Possession of Securities	 	33
	 	SECTION 6.06.	 	Application of Money Collected	 	33
	 	SECTION 6.07.	 	Limitation on Suits	 	33
	 	SECTION 6.08.	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	34
	 	SECTION 6.09.	 	Restoration of Rights and Remedies	 	34
	 	SECTION 6.10.	 	Rights and Remedies Cumulative	 	34
	 	SECTION 6.11.	 	Delay or Omission Not Waiver	 	34
	 	SECTION 6.12.	 	Control by Holders	 	34
	 	SECTION 6.13.	 	Waiver of Past Defaults	 	35
	 	SECTION 6.14.	 	Undertaking for Costs	 	35
	 	SECTION 6.15.	 	Waiver of Stay or Extension Laws	 	35

ii

 

	

ARTICLE SEVEN THE TRUSTEE	
 	

36
	 	SECTION 7.01.	 	Certain Duties and Responsibilities	 	36
	 	SECTION 7.02.	 	Notice of Defaults	 	36
	 	SECTION 7.03.	 	Certain Rights of Trustee	 	37
	 	SECTION 7.04.	 	Not Responsible for Recitals or Issuance of Securities	 	38
	 	SECTION 7.05.	 	May Hold Securities	 	38
	 	SECTION 7.06.	 	Money Held in Trust	 	38
	 	SECTION 7.07.	 	Compensation and Reimbursement	 	38
	 	SECTION 7.08.	 	Disqualification; Conflicting Interests	 	39
	 	SECTION 7.09.	 	Corporate Trustee Required; Eligibility	 	39
	 	SECTION 7.10.	 	Resignation and Removal; Appointment of Successor	 	39
	 	SECTION 7.11.	 	Acceptance of Appointment by Successor	 	41
	 	SECTION 7.12.	 	Merger, Conversion, Consolidation or Succession to Business	 	42
	 	SECTION 7.13.	 	Preferential Collection of Claims Against Issuer	 	42
	

ARTICLE EIGHT HOLDERS' LISTS AND REPORTS BY TRUSTEE AND ISSUER	
 	

45
	 	SECTION 8.01.	 	Issuer to Furnish Trustee Names and Addresses of Holders	 	45
	 	SECTION 8.02.	 	Preservation of Information; Communications to Holders	 	45
	 	SECTION 8.03.	 	Reports by Trustee	 	46
	

ARTICLE NINE CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	
 	

47
	 	SECTION 9.01.	 	Merger, Consolidation, etc. Only on Certain Terms	 	47
	 	SECTION 9.02.	 	Successor Corporation Substituted	 	48
	

ARTICLE TEN SUPPLEMENTAL INDENTURES	
 	

48
	 	SECTION 10.01.	 	Supplemental Indentures without Consent of Holders	 	48
	 	SECTION 10.02.	 	Supplemental Indentures with Consent of Holders	 	49
	 	SECTION 10.03.	 	Execution of Supplemental Indentures	 	50
	 	SECTION 10.04.	 	Effect of Supplemental Indentures	 	50
	 	SECTION 10.05.	 	Conformity with Trust Indenture Act	 	50
	 	SECTION 10.06.	 	Reference in Securities to Supplemental Indentures	 	50
	 	SECTION 10.07.	 	Notice of Supplemental Indenture	 	50
	

ARTICLE ELEVEN COVENANTS	
 	

51
	 	SECTION 11.01.	 	Payment of Principal, Premium and Interest	 	51
	 	SECTION 11.02.	 	Maintenance of Office or Agency	 	51
	 	SECTION 11.03.	 	Money for Securities Payments to Be Held in Trust	 	51
	 	SECTION 11.04.	 	Corporate Existence	 	52
	 	SECTION 11.05.	 	Payment of Taxes and Other Claims	 	52
	 	SECTION 11.06.	 	Maintenance of Properties	 	53
	 	SECTION 11.07.	 	Waiver of Certain Covenants	 	53
	 	SECTION 11.08.	 	Statement by Officers as to Default	 	53
	 	SECTION 11.09.	 	Reports by Parent Guarantor	 	54
	 	SECTION 11.10.	 	Further Assurances	 	54

iii

 

	

ARTICLE TWELVE REDEMPTION OF SECURITIES	
 	

54
	 	SECTION 12.01.	 	Applicability of Article	 	54
	 	SECTION 12.02.	 	Election to Redeem; Notice to Trustee	 	54
	 	SECTION 12.03.	 	Selection by Trustee of Securities to Be Redeemed	 	55
	 	SECTION 12.04.	 	Notice of Redemption	 	55
	 	SECTION 12.05.	 	Deposit of Redemption Price	 	56
	 	SECTION 12.06.	 	Securities Payable on Redemption Date	 	56
	 	SECTION 12.07.	 	Securities Redeemed in Part	 	56
	 	SECTION 12.08.	 	Securities No Longer Outstanding After Notice to Trustee and Deposit of Cash	 	56
	

ARTICLE THIRTEEN SINKING FUNDS	
 	

57
	 	SECTION 13.01.	 	Applicability of Article	 	57
	 	SECTION 13.02.	 	Satisfaction of Sinking Fund Payments with Securities	 	57
	 	SECTION 13.03.	 	Redemption of Securities for Sinking Fund	 	57
	

ARTICLE FOURTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	
 	

57
	 	SECTION 14.01.	 	Exemption from Individual Liability	 	57
	

ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES	
 	

58
	 	SECTION 15.01.	 	Purposes of Meetings	 	58
	 	SECTION 15.02.	 	Call of Meetings by Trustee	 	58
	 	SECTION 15.03.	 	Call of Meetings by Issuer or Holders	 	59
	 	SECTION 15.04.	 	Qualification for Voting	 	59
	 	SECTION 15.05.	 	Quorum; Adjourned Meetings	 	59
	 	SECTION 15.06.	 	Regulations	 	59
	 	SECTION 15.07.	 	Voting Procedure	 	60
	 	SECTION 15.08.	 	Written Consent in Lieu of Meetings	 	60
	 	SECTION 15.09.	 	No Delay of Rights by Meeting	 	60
	

ARTICLE SIXTEEN GUARANTEE OF SECURITIES	
 	

61
	 	SECTION 16.01.	 	Guarantee	 	61
	 	SECTION 16.02.	 	Limitation on Liability	 	62
	 	SECTION 16.03.	 	Successors and Assigns	 	63
	 	SECTION 16.04.	 	No Waiver	 	63
	 	SECTION 16.05.	 	Modification	 	63
	

ARTICLE SEVENTEEN MISCELLANEOUS	
 	

63
	 	SECTION 17.01.	 	Counterparts	 	63

iv

 
 
 

Reconciliation and Tie between Indenture,
  dated as of                      
  and
  Trust Indenture
Act of 1939, as amended    
  

	Trust Indenture Act Section
 
	 	Indenture

Section

	310	(a)(1)	 	 	7.09
	 	(a)(2)	 	 	7.09
	 	(a)(3)	 	 	Not applicable
	 	(a)(4)	 	 	Not applicable
	 	(b)	 	 	7.08, 7.10
	311	(a)	 	 	7.13(a)
	 	(b)	 	 	7.13(b)
	312	(a)	 	 	8.01, 8.02(a)
	 	(b)	 	 	8.02(b)
	 	(c)	 	 	8.02(c)
	313	(a)	 	 	8.03(a)
	 	(b)(1)	 	 	Not applicable
	 	(b)(2)	 	 	8.03(b)
	 	(c)	 	 	8.03(c)
	 	(d)	 	 	8.03(c)
	314	(a)	 	 	11.09
	 	(a)(4)	 	 	11.08
	 	(b)	 	 	Not applicable
	 	(c)(1)	 	 	1.02
	 	(c)(2)	 	 	1.02
	 	(c)(3)	 	 	Not applicable
	 	(d)	 	 	Not applicable
	 	(e)	 	 	1.02
	315	(a)	 	 	7.01(a)
	 	(b)	 	 	7.02, 8.03(a)(6)
	 	(c)	 	 	7.01(b)
	 	(d)(1)	 	 	7.01(a)
	 	(d)(2)	 	 	7.01(c)
	 	(d)(3)	 	 	7.01(c)
	 	(e)	 	 	6.14
	316	(a)(1)(A)	 	 	6.12
	 	(a)(1)(B)	 	 	6.13
	 	(a)(2)	 	 	Not applicable
	 	(b)	 	 	6.08
	317	(a)(1)	 	 	6.03
	 	(a)(2)	 	 	6.04
	 	(b)	 	 	11.03
	318	(a)	 	 	1.07

NOTE:
This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture. 

v

        INDENTURE, dated as of                        , among WILLIS NORTH
AMERICA INC., a Delaware corporation, as issuer, (the "Issuer"), WILLIS GROUP HOLDINGS LIMITED, a company organized and
existing under the laws of Bermuda, TA I LIMITED, a company organized and existing under the laws of United Kingdom, TA II LIMITED, a company organized and existing under the laws of United Kingdom,
TA III LIMITED, a company organized and existing under the laws of United Kingdom, TRINITY ACQUISITION LIMITED, a company organized and existing under the laws of United Kingdom, TA IV LIMITED, a
company organized and existing under the laws of United Kingdom, WILLIS GROUP LIMITED, a company organized and existing under the laws of United Kingdom, and WILLIS PARTNERS, a Delaware limited
liability partnership (collectively, the "Guarantors"), as guarantors, and Citibank, N.A., a National banking association, as trustee (the "Trustee"). 

 
 

RECITALS OF THE ISSUER    
  

        The Issuer has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured subordinated
debentures, notes or other evidences of indebtedness (the "Securities"), to be issued in one or more series as in this Indenture provided. 

        All
things necessary to make this Indenture a valid agreement of the Issuer and each Guarantor, in accordance with its terms, have been done. 

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

        For
and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows: 

 
 

ARTICLE ONE    
    
    DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION    
  

SECTION
1.01.    Definitions.    

        For
all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 

        (a)  the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 

        (b)  all
other terms used herein which are defined in the Trust Indenture Act or by Commission rule under the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein; 

        (c)  all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; and 

        (d)  the
words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision. 

        Certain
terms, used principally in Article Seven, are defined in that Article. 

        "Act"
when used with respect to any Holder, has the meaning specified in Section 1.04. 

        "Affiliate"
means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such
specified Person. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to
any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise. 

 

        "Authorized
Newspaper" shall mean a newspaper of general circulation in the Borough of Manhattan, The City of New York, and customarily published on each Business Day, currently expected
to be The Wall Street Journal (National Edition). Where successive publications are required to be made in an Authorized Newspaper, the successive
publications may be made in the same or different newspapers meeting the foregoing requirements and in each case on any Business Day. 

        "Bankruptcy
Law" means (i) the U.K. Insolvency Act 1986, as supplemented or amended, together with all rules, regulations and instruments made thereunder and applicable United
Kingdom law relating to bankruptcy, insolvency, winding up, administration, receivership and other similar matters and (ii) Title 11, United States Bankruptcy Code of 1978 as amended, or any
similar United States federal or state law relating to relief of debtors or any amendment to, succession to or change in any such law. 

        "Board
of Directors" means either the board of directors of the Issuer or a Guarantor or any committee of that board duly authorized to act hereunder. 

        "Board
Resolution" means a copy of a resolution or resolutions certified by the Secretary or an Assistant Secretary of the Issuer or a Guarantor to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification and delivered to the Trustee. 

        "Business
Day" when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place
of Payment are authorized or obligated by law to close. 

        "Capital
Stock" means (i) in the case of a corporation, corporate stock, (ii) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock, (iii) in the case of a partnership or limited liability company, partnership or membership interests
(whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person. 

        "Capitalized
Lease Obligations" means at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at such time be required
to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) in accordance with GAAP. 

        "Cash
Equivalents" means (i) United States dollars, (ii) pounds sterling, (iii) Euro, (iv) Japanese Yen, (v) Canadian dollars, (vi) Australian
dollars, (vii) securities issued or directly and fully guaranteed or insured by the United States or United Kingdom government or any agency or instrumentality thereof with maturities of
24 months or less from the date of acquisition, (viii) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of
acquisition, bankers' acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank having capital and surplus in excess of
$500.0 million, (ix) repurchase obligations for underlying securities of the types described in clauses (vii) and (viii) entered into with any financial institution meeting
the qualifications specified in clause (viii) above, (x) commercial paper rated A-1 or the equivalent thereof by Moody's or S&P and in each case maturing within one year
after the date of acquisition, (xi) investment funds investing 95% of their assets in securities of the types described in clauses (i)-(x) above, (xii) readily marketable direct
obligations issued by any state of the United States of America or any political subdivision thereof having one of the two highest rating categories obtainable from either Moody's or S&P with
maturities of 24 months or less from the date of acquisition and (xiii) Indebtedness or preferred stock issued by Persons with a rating of "A" or higher from S&P or "A2" or higher from
Moody's with maturities of 24 months or less from the date of acquisition. Notwithstanding the foregoing, Cash Equivalents shall include amounts denominated in currencies other than those set
forth in clauses (i) through (vi) above, 

2

 

 provided that such amounts are converted into any currency listed in clauses (i) through (vi) as promptly as practicable and in any event within ten Business
Days following the receipt of such amounts. 

        "Commission"
means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, or, if at any time after the execution of
this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

        "Contingent
Obligations" means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness
("primary obligations") of any other Person (the "primary obligor") in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not
contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or
payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, or
(iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation against loss in respect thereof. 

        "Corporate
Trust Office" means the principal office of the Trustee in New York, New York at which at any particular time its corporate trust business shall be administered, which at the
date hereof is Citibank N.A., 111 Wall Street, Floor 14, Zone 3, New York, NY 10043, Attn: Agency and Trust. 

        "corporation"
includes corporations, associations, companies and business trusts. 

        "Credit
Agreement" means the Credit Agreement dated as July 22, 1998, as amended and restated as of February 19, 1999, and as amended as of January 1, 2001, among
the Issuer, as borrower, Willis Group Limited and Trinity Acquisition Limited, as guarantors, the lenders thereunder and JPMorgan Chase Bank, as administrative agent and collateral agent (the "Agent
Bank"), including any collateral documents, instruments and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements or
refundings thereof and any indentures or credit facilities or commercial paper facilities with banks or other institutional lenders that replace, refund or refinance any part of the loans, notes,
other credit facilities or commitments thereunder, including any such replacement, refunding or refinancing facility or indenture that increases the amount borrowable thereunder or alters the maturity
thereof. 

        "Custodian"
means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 

        "Defaulted
Interest" has the meaning specified in Section 3.07. 

        "Designated
Senior Indebtedness" means Senior Indebtedness under the Credit Agreement and (ii) any other Senior Indebtedness the principal amount of which is $25.0 million
or more and that has been designated by the Issuer as Designated Senior Indebtedness. 

        "Dollar"
or "$" means a dollar or other equivalent unit in such coin or currency of the United States as at the time of payment is legal tender for the payment of public and private
debts. 

        "Event
of Default" has the meaning specified in Section 6.01. 

        "Existing
Notes" means the 9% Senior Subordinated Notes due 2009 issued pursuant to an indenture dated as of February 2, 1999, by and among the Issuer, Willis Partners and Willis
Group Limited, as guarantors, and The Bank of New York, as Trustee. 

        "GAAP"
shall mean generally accepted accounting principles in the United States of America set forth in the opinions and pronouncements of the Accounting Principles Board of the American 

3

 

Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a
significant segment of the accounting profession as in effect from time to time. 

        "Government
Securities" means direct obligations of, or obligations guaranteed by, the United States of America for the payment of which obligations or guarantee the full faith and
credit of the United States is pledged and which have a remaining weighted average life to maturity of not more than one year from the date of investment therein. 

        "Guarantee"
means the guarantee by any Guarantor of the Issuer's Indenture obligations. 

        "Guarantor"
means each of Willis Group Holdings Limited, a company organized and existing under the laws of Bermuda, TA I Limited, a company organized and existing under the laws of
United Kingdom, TA II Limited, a company organized and existing under the laws of United Kingdom, TA III Limited, a company organized and existing under the laws of United Kingdom, Trinity Acquisition
Limited, a company organized and existing under the laws of United Kingdom, TA IV LIMITED, a company organized and existing under the laws of United Kingdom, Willis Group Limited, a company organized
and existing under the laws of United Kingdom, and Willis Partners, a Delaware limited liability partnership, and any other subsidiary of Willis Group Holdings Limited which becomes a guarantor of the
Issuer's Indenture obligations. 

        "Hedging
Agreements" means, with respect to any Person, the obligations of such Person under (i) currency exchange, interest rate or commodity swap agreements, currency exchange,
interest rate or commodity cap agreements and currency exchange, interest rate or commodity collar agreements and (ii) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange, interest rates or commodity prices. 

        "Holder"
means a Person in whose name a Security is registered in the Security Register. 

        "Indebtedness"
means, with respect to any Person, (a) any indebtedness (including principal and premium) of such Person, whether or not contingent (i) in respect of
borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers' acceptances (or, without double counting, reimbursement agreements in respect
thereof), (iii) representing the balance deferred and unpaid of the purchase price of any property (including Capitalized Lease Obligations), except any such balance that constitutes a trade
payable or similar obligation to a trade creditor, in each case accrued in the ordinary course of business or (iv) representing any Hedging Obligations, if and to the extent that any of the
foregoing Indebtedness (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance
with GAAP, (b) to the extent not otherwise included, any obligation by such Person to be liable for, or to pay, as obligor, guarantor or otherwise, on the Indebtedness of another Person (other
than by endorsement of negotiable instruments for collection in the ordinary course of business) and (c) to the extent not otherwise included, Indebtedness of another Person secured by a Lien
on any asset owned by such Person (whether or not such Indebtedness is assumed by such Person); provided, however, that Contingent Obligations incurred
in the ordinary course of business shall be deemed not to constitute Indebtedness, and obligations under or in respect of Receivables Facilities shall not be deemed to constitute Indebtedness. 

        "Indenture"
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof and shall include the form and terms of particular series of Securities established as contemplated by Section 3.01. 

        "interest"
when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 

4

 

        "Interest
Payment Date" when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 

        "Issuer"
means Willis North America Inc., a Delaware corporation, until a successor Person shall have become such pursuant to the applicable provisions of the Indenture, and
thereafter "Issuer" shall mean such successor Person. 

        "Issuer
Request" or "Issuer Order" means a written request or order signed in the name of the Issuer by its Chairman of the Board, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 

        "Letter
of Credit Obligations" means all obligations in respect of Indebtedness of the Issuer or Trinity with respect to letters of credit issued pursuant to the Credit Agreement which
Indebtedness shall be deemed to consist of (a) the aggregate maximum amount available to be drawn under all such letters of credit (the determination of such aggregate maximum amount to assume
compliance with all conditions for drawing) and (b) the aggregate amount that has been paid by, and not reimbursed to, the issuers of such letters of credit. 

        "Lien"
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction); provided that in no event shall an operating
lease be deemed to constitute a Lien. 

        "Maturity"
when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 

        "Moody's"
means Moody's Investors Service, Inc. 

        "Non-Payment
Default" has the meaning specified in Section 4.03. 

        "obligation"
means any principal, premium, interest (including interest accruing subsequent to a bankruptcy or other similar proceeding whether or not such interest is an allowed claim
enforceable against the Issuer in a bankruptcy case under Federal Bankruptcy Law), penalties, fees, indemnifications, reimbursements, damages and other liabilities payable pursuant to the terms of the
documentation governing any Indebtedness. 

        "Officers'
Certificate" means a certificate signed by the Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Issuer or any Guarantor, as applicable, and delivered to the Trustee. 

        "Opinion
of Counsel" means a written opinion of counsel, who may be counsel for the Issuer or any Guarantor, and who shall be acceptable to the Trustee. 

        "Original
Issue Discount Security" means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.02. 

        "Outstanding"
when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 

        (i)    Securities
theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 

5

 

        (ii)  Securities
or portions thereof for whose payment or redemption money or, as provided in Section 5.02 hereof, U.S. Government Obligations, in the necessary amount
has been theretofore
deposited with the Trustee or any Paying Agent (other than the Issuer) in trust or, except for purposes of Section 5.01, set aside and segregated in trust by the Issuer (if the Issuer shall act
as its own Paying Agent) for the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee has been made; and 

        (iii)  Securities
which have been paid pursuant to Section 3.06 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant
to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Issuer; 

provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or whether a quorum is present at a meeting of Holders of Securities, (i) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon acceleration of the
maturity thereof pursuant to Section 6.01 and (ii) Securities owned by the Issuer or any other obligor upon the Securities or any Affiliate of the Issuer or of such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent
or waiver, or upon such determination as to the presence of a quorum, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Securities and that the pledgee is not the
Issuer or any other obligor upon the Securities or any Affiliate of the Issuer or of such other obligor. 

        "Parent
Guarantor" means Willis Group Holdings Limited, a company organized and existing under the laws of Bermuda, until a successor Person shall have become such pursuant to the
applicable provisions of the Indenture, and thereafter "Parent Guarantor" shall mean such successor Person. 

        "Paying
Agent" means any Person authorized by the Issuer to pay the principal of (and premium, if any) or interest on any Securities on behalf of the Issuer. 

        "Payment
Blockage Notice" has the meaning specified in Section 4.03. 

        "Payment
Blockage Period" has the meaning specified in Section 4.03. 

        "Payment
Default" has the meaning specified in Section 4.03. 

        "Person"
means any individual, corporation, partnership, joint venture, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision
thereof. 

        "Place
of Payment" when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest on the Securities of that
series are payable as specified as contemplated by Section 3.01. 

        "Predecessor
Security" of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security. 

6

  

        "principal" of a debt security, including any Security, on any day and for any purpose means the amount (including, without limitation, in the case of an Original Issue Discount
Security, any accrued original issue discount, but excluding interest) that is payable with respect to such debt security as of such date and for such purpose (including, without limitation, in
connection with any sinking fund, upon any redemption at the option of the Issuer upon any purchase or exchange at the option of the Issuer or the holder of such debt security and upon any
acceleration of the maturity of such debt security). 

        "principal
amount" of a debt security, including any Security, means the principal amount as set forth on the face of such debt security. 

        "Receivables
Facility" means one or more receivables financing facilities, as amended from time to time, pursuant to which the Issuer and/or any of its Restricted Subsidiaries sells its
accounts receivable to a Person that is not a Restricted Subsidiary. 

        "Redemption
Date" when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 

        "Redemption
Price" when used with respect to any Security to be redeemed, means the price (exclusive of accrued interest, if any) at which it is to be redeemed pursuant to this
Indenture. 

        "Regular
Record Date" for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by
Section 3.01. 

        "Reporting
Date" shall mean, when used with respect to any series of Securities, the date (and each successive anniversary thereof) established by a Board Resolution pursuant to
Section 3.01 which shall be a date no more than ten months from the date of the initial issuance of such series of Securities under this Indenture. 

        "Representative"
means the trustee, agent or representative (if any) for an issue of Senior Indebtedness of the Issuer. 

        "Responsible
Officer" when used with respect to the Trustee, means any officer assigned to and working in the corporate trust department of the Trustee, or any other officer of the
Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his or her knowledge of and familiarity with the particular subject. 

        "Restricted
Subsidiary" means, at any time, the Issuer and any direct or indirect Subsidiary of Trinity that is not then an Unrestricted Subsidiary; provided,
however, that upon the occurrence of an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be included in the definition of "Restricted
Subsidiary." 

        "S&P"
means Standard and Poor's Ratings Group. 

        "Securities"
has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture. 

        "Security
Register" and "Security Registrar" have the respective meanings specified in Section 3.05. 

        "Senior
Indebtedness" means (i) the Indebtedness under the Credit Agreement and (ii) any other Indebtedness of the Issuer, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or subordinated in right of payment to the Securities, including, with respect to clauses (i) and (ii), interest accruing
subsequent to the filing of, or which would have accrued but for the filing of, a petition for bankruptcy, in accordance with and at the rate (including any rate applicable upon any default or event
of default, to the extent lawful) specified in the 

7

 

documents evidencing or governing such Senior Indebtedness, whether or not such interest is an allowable claim in such bankruptcy proceeding. Notwithstanding anything to the contrary in the
foregoing, "Senior Indebtedness" shall not include: 

        (1)  any
liability for federal, state, local or other taxes owed or owing by the Issuer, 

        (2)  any
obligation of the Issuer to its direct or indirect parent corporations, any of its Subsidiaries or any other Affiliate of the Issuer, 

        (3)  any
accounts payable or trade liabilities (including obligations in respect of funds held for the account of third parties) arising in the ordinary course of business
(including guarantees thereof or instruments evidencing such liabilities) other than obligations in respect of letters of credit under the Credit Agreement, 

        (4)  any
Indebtedness that is incurred in violation of this Indenture, 

        (5)  Indebtedness
which, when incurred and without respect to any election under Section 1111(b) of Title 11, United States Code, is without recourse to the Issuer, 

        (6)  any
Indebtedness, guarantee or obligation of the Issuer which is evidenced by Subordinated Indebtedness, 

        (7)  Indebtedness
evidenced by the Securities, 

        (8)  Capital
Stock of the Issuer. 

        "Senior
Indebtedness" of any Guarantor has a correlative meaning. 

        "Significant
Restricted Subsidiary" means the Issuer and any other Restricted Subsidiary that would be a "significant subsidiary" as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on the date hereof. 

        "Special
Record Date" for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07. 

        "Stated
Maturity" when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable. 

        "Subordinated
Indebtedness" means (a) with respect to the Issuer, Indebtedness which ranks pari passu in right of payment to the
Securities and (b) with respect to any Guarantor, Indebtedness which ranks pari passu in right of payment to the Guarantee of such Guarantor. 

        "Subsidiary"
means, with respect to any Person, (i) any corporation, association, or other business entity (other than a partnership, joint venture, limited liability company or
similar entity) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination
thereof and (ii) any partnership, joint venture, limited liability company or similar entity of which (x) more than 50% of the capital accounts, distribution rights, total equity and
voting interests or general or limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or
a combination thereof whether in the form of membership, general, special or limited partnership or otherwise and (y) such Person or any wholly owned Restricted Subsidiary of such Person is a
controlling general partner or otherwise controls such entity. 

8

 

        "Trinity"
means Trinity Acquisition Limited, a company organized and existing under the laws of United Kingdom, until a successor Person shall have become such pursuant to the applicable
provisions of the Indenture, and thereafter "Trinity" shall mean such successor Person. 

        "Trustee"
means the Person named as the "Trustee" in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, "Trustee" as used with respect to the
Securities of any series shall mean the Trustee with respect to Securities of that series. 

        "Trust
Indenture Act" means the Trust Indenture Act of 1939, as amended, and as in force at the date as of which this instrument was executed, except as provided in Section 10.05;
provided, however, that in the event the Trust Indenture Act is amended after such date, "Trust Indenture Act" means, with respect to the Securities of any series issued after such date, the Trust
Indenture Act of 1939 as so amended. 

        "Unrestricted
Subsidiary" means means (i) Sovereign Marine & General Insurance Company Limited, in provisional liquidation ("Sovereign"), (ii) any Subsidiary of
Trinity which at the time of determination is an Unrestricted Subsidiary (as designated by the Board of Directors of Trinity, as provided below) and (iii) any Subsidiary of an Unrestricted
Subsidiary. The Board of Directors of Trinity may designate any Subsidiary of the Issuer (including any existing Subsidiary and any newly acquired or newly formed Subsidiary but excluding the Issuer)
to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on, any property
of, Trinity or any Subsidiary of Trinity (other than any Subsidiary of the Subsidiary to be so designated), provided that (a) any Unrestricted Subsidiary (other than Sovereign) must be an
entity of which shares of the Capital Stock or other equity interests (including partnership interests) entitled to cast at least a majority of the votes that may be cast by all shares or equity
interests having ordinary voting power for the election of directors or other governing body are owned, directly or indirectly, by Trinity and (b) each of (I) the Subsidiary to be so
designated and (II) its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with
respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of Trinity or any of its Restricted Subsidiaries. The Board of Directors of Trinity may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that, immediately after giving effect to such designation no Event of Default shall have occurred and be continuing. Any such
designation by the Board of Directors of Trinity shall be notified by Trinity to the Trustee by promptly filing with the Trustee a copy of the board resolution giving effect to such designation and an
Officers' Certificate of Trinity certifying that such designation complied with the foregoing provisions. 

        "U.S.
Government Obligations" has the meaning specified in Section 5.02. 

        "Vice
President" when used with respect to the Issuer, any Guarantor or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or
after the title "vice president." 

SECTION
1.02.    Compliance Certificates and Opinions.    

        Upon
any application or request by the Issuer or any Guarantor to the Trustee to take any action under any provision of this Indenture, the Issuer or such Guarantor shall furnish to the
Trustee an Officers' Certificate stating that all conditions precedent (including any covenant compliance with which constitutes a condition precedent), if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent (including any covenants compliance with which
constitutes a condition precedent), if any, have been complied with, except that in the case of any such application or request 

9

 

as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need
be furnished. 

        Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than annual certificates provided pursuant to
Section 11.08) shall include: 

        (1)  a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

        (2)  a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

        (3)  a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and 

        (4)  a
statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

SECTION
1.03.    Form of Documents Delivered to Trustee.    

        In
any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

        Any
certificate or opinion of an officer of the Issuer or any Guarantor may be based, insofar as it relates to legal matters, upon a certificate or Opinion of Counsel, or representations
by counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate or Opinion of Counsel or representation by counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Issuer or such Guarantor stating that the information with respect to such factual matters is in the possession of the Issuer or such Guarantor,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 

        Where
any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they
may, but need not, be consolidated and form one instrument. 

SECTION
1.04.    Acts of Holders.    

        (a)  Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing or by the record of the Holders voting in favor thereof at
any meeting of such Holders duly called and held in accordance with the provisions of Article Fifteen; and, except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments or any such record is delivered to the Trustee and, where it is hereby expressly required, to the Issuer or any Guarantor. Such instrument or instruments or such record (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of the Holders signing such instrument or instruments or voting at such meeting. Proof of execution of
any such instrument or of a writing appointing any such agent shall be sufficient for 

10

 

any purpose of this Indenture and conclusive in favor of the Trustee, the Issuer and any Guarantor if made in the manner provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 15.07 and the record so proved shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee, the Issuer and any
Guarantor, if made in the manner provided in this Section. 

        (b)  The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof, or may
be proved in such other manner as shall be deemed sufficient by the Trustee. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in
any other manner which the Trustee deems sufficient. 

        (c)  The
ownership of Securities shall be proved by the Security Register. 

        (d)  Any
request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and
the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or
the Issuer in reliance thereon, whether or not notation of such action is made upon such Security. 

        (e)  The
Issuer or the Trustee, as applicable, may set a date for the purpose of determining the Holders of Securities entitled to consent, vote or take any other action
referred to in this Section 1.04, which date shall be not less than 10 days nor more than 60 days prior to the taking of the consent, vote or other action. 

SECTION
1.05.    Notices, etc. to Trustee and Issuer.    

        Any
request, demand, authorization, direction, notice, consent, waiver or Act of the Holders or other document provided or permitted by this Indenture to be made upon, given or furnished
to, or filed with, 

        (1)  the
Trustee by any Holder or by the Issuer or any Guarantor shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office and, unless otherwise herein expressly provided, any such document shall be deemed to be sufficiently made, given, furnished or filed upon its receipt by a
Responsible Officer of the Trustee, or 

        (2)  the
Issuer or any Guarantor by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to the Issuer addressed to it at: 

26
Century Boulevard

Nashville, TN 37214 

        or
to any Guarantor addressed to it at: 

10
Trinity Square

London EC3P 3AX 

        or
at any other address or addresses previously furnished in writing to the Trustee by the Issuer or such Guarantor. 

11

 

SECTION
1.06.    Notice to Holders; Waiver.    

        Where
this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event,
and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver. 

        In
case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made
with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

SECTION
1.07.    Conflict with Trust Indenture Act.    

        If
any provision hereof limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of
Section 318(c), such imposed duties shall control. 

SECTION
1.08.    Effect of Headings and Table of Contents.    

        The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

SECTION
1.09.    Successors and Assigns.    

        All
covenants and agreements in this Indenture by the Issuer or any Guarantor shall bind their successors and assigns, whether so expressed or not. 

SECTION
1.10.    Separability Clause.    

        In
case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby. 

SECTION
1.11.    Benefits of Indenture.    

        Nothing
in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders and to the
extent provided in Article Four the holders of Senior Indebtedness, any benefit or any legal or equitable right, remedy or claim under this Indenture. 

SECTION
1.12.    Governing Law.    

        This
Indenture and the Securities shall be governed by and construed in accordance with the laws of the State of New York. 

SECTION
1.13.    Legal Holidays.    

        In
any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of principal of (and premium, if any) or interest, if any, on such Security need not be made at such Place of Payment on such date, but may be
made on the next succeeding Business Day at such Place of Payment with the same force and effect as 

12

 

if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no additional interest shall accrue with respect to the payment due on such date for the period from
and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 

 
 

ARTICLE TWO    
    
    SECURITY FORMS    
  

SECTION
2.01.    Forms Generally.    

        The
Securities of each series shall be in substantially the form established from time to time by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in
each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution of such Securities. Any portion of the text of any Security may be set forth on the reverse thereof, with an appropriate reference thereto on
the face of the Security. If the form of Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by
the Secretary or an Assistant Secretary of the Issuer and delivered to the Trustee at or prior to the delivery of the Issuer Order contemplated by Section 3.03 for the authentication and
delivery of such Securities. Any such Board Resolution or record of such action shall have attached thereto a true and correct copy of the form of Security referred to therein approved by or pursuant
to such Board Resolution. 

        The
Trustee's certificate of authentication shall be in substantially the form set forth in this Article. 

        The
definitive Securities shall be printed, lithographed or engraved or may be produced in any other manner, all as determined by the officers executing such Securities, as evidenced by
their execution of such Securities. 

SECTION
2.02.    Form of Trustee's Certificate of Authentication.    

        The
Trustee's certificate of authentication on all Securities shall be in substantially the following form: 

        This
is one of the Securities of the series designated therein issued under the within-mentioned Indenture. 

	 	 	Citibank, N.A., as Trustee
	

 	
 	

By	
 	

 
	

 	
 	

 	
 	

 Authorized Signatory

13

  

SECTION 2.03.    Securities in Global Form    

        If
any Security of a series is issuable in global form (a "Global Security"), such Global Security may provide that it shall represent the aggregate amount of Outstanding Securities from
time to time endorsed thereon and may also provide that the aggregate amount of Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges. Any endorsement of a
Global Security to reflect the amount, or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee and in such manner as shall be specified in
such Global Security. Any instructions by the Issuer with respect to a Global Security, after its initial issuance, shall be in writing but need not comply with Section 1.02. 

        Global
Securities may be issued in either temporary or permanent form. Permanent Global Securities will be issued in definitive form. 

 
 

ARTICLE THREE    
    
    THE SECURITIES    
  

SECTION
3.01.    Amount Unlimited; Issuable in Series.    

        The
aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. 

        The
Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution, and set forth in an Officers' Certificate, of the Issuer and each
Guarantor or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, 

        (1)  the
title of the Securities of the series (which shall distinguish the Securities of the series from all other Securities); 

        (2)  the
aggregate principal amount of the Securities of such series and any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other securities of the series
pursuant to Section 3.04, 3.05, 3.06, 10.06 or 12.07); 

        (3)  the
date or dates on which the principal (and premium, if any) of the Securities of the series is payable or the method of determination thereof; 

        (4)  the
rate or rates (which may be fixed or variable), or the method of determination thereof, at which the Securities of the series shall bear interest, if any, including
the rate of interest applicable on overdue payments of principal or interest, if different from the rate of interest stated in the title of the Security, the date or dates from which such interest
shall accrue or the method of determination thereof, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Interest Payment
Date; 

        (5)  the
Paying Agent or Paying Agents for the Securities of the series if other than the Trustee; 

        (6)  the
Place of Payment of the Securities of the series; 

        (7)  if
other than U.S. Dollars, the foreign currency or currencies in which Securities of the series shall be denominated or in which payment of the principal of (and
premium, if any) or interest on Securities of the series may be made, and the particular provisions applicable thereto and, if applicable, the amount of the Securities of the series which entitles the
Holder of a Security of the series or its proxy to one vote for purposes of Section 15.06; 

14

 

        (8)  the
right, if any, of the Issuer to redeem the Securities of such series and the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Issuer; 

        (9)  the
obligation, if any, of the Issuer to redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation; 

        (10) if
other than denominations of $1,000 and any integral multiple thereof, the denominations in which Securities of the series shall be issuable; 

        (11) whether
the Securities of the series shall be issued in whole or in part in the form of one or more Global Securities and, in such case, the depositary (the
"Depositary") for such Global Security or Securities; and the manner in which and the circumstances under which Global Securities representing Securities of the series may be exchanged for Securities
in definitive form, if other than, or in addition to, the manner and circumstances specified in Section 3.05(b); 

        (12) if
other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of
the Maturity thereof pursuant to Section 6.02; 

        (13) if
the provisions of Section 5.02 of this Indenture are to apply to the Securities of the series, a statement indicating the same; 

        (14) any
deletions from or modifications of or additions to the Events of Default set forth in Section 6.01 pertaining to the Securities of the series; 

        (15) the
form of the Securities of the series; and 

        (16) any
other terms of a particular series and any other provisions expressing or referring to the terms and conditions upon which the Securities of that series are to be
issued, which terms and provisions are not in conflict with the provisions of this Indenture or do not adversely affect the rights of Holders of any other series of Securities then Outstanding);  provided,
however, that the addition to or subtraction from or variation of Articles Four, Five, Six, Nine, Eleven, Thirteen and Sixteen (and
Section 1.01 insofar as it relates to the definition of certain terms as used in such Articles) with regard to the Securities of a particular series shall not be deemed to constitute a conflict
with the provisions of those Articles. 

        All
Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution and set forth
in such Officers'
Certificate or in any such indenture supplemental hereto. All Securities of any one series need not be issued at the same time, and unless otherwise provided, a series may be reopened for issuance of
additional Securities of such series without the consent of the holders thereof. 

        Except
as modified in a Board Resolution, Officers' Certificate or supplemental indenture establishing a series of Securities, the Securities shall be subordinated in right of payment to
Senior Indebtedness as provided in Article Four. The Securities of all series shall rank on a parity in right of payment. 

        Except
as modified in a Board Resolution, Officers' Certificate or supplemental indenture establishing a series of Securities, the Securities shall be fully and unconditionally
guaranteed, jointly and severally, by each Guarantor as provided in Article Sixteen. 

        If
any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an
Assistant 

15

 

Secretary of the Issuer or the applicable Guarantor and delivered to the Trustee at or prior to the delivery of the Officers' Certificate setting forth the terms of the series. 

SECTION
3.02.    Denominations.    

        The
Securities of each series shall be issuable in registered form without coupons in such denominations as shall be specified as contemplated by Section 3.01. In the absence of
any such provisions with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 

SECTION
3.03.    Execution, Authentication, Delivery and Dating.    

        The
Securities shall be executed on behalf of the Issuer by its Chairman of the Board, its President or one of its Vice Presidents, attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Securities may be manual or facsimile. 

        Securities
bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Issuer shall bind such Person notwithstanding that such individuals
or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of issuance of such Securities. 

        At
any time and from time to time after the execution and delivery of this Indenture, the Issuer may deliver Securities of any series executed by the Issuer to the Trustee for
authentication, together with an Issuer Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Issuer Order shall authenticate and deliver such
Securities. If any Security shall be represented by a permanent Global Security, then, for purposes of this Section and Section 3.04, the notation of a beneficial owner's interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary Global Security shall be deemed to be delivery in connection with the original issuance of such beneficial owner's
interest in such permanent Global Security. 

        In
authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive and
(subject to Section 7.01) shall be fully protected in relying upon the documents specified in Section 314 of the Trust Indenture Act, and, in addition: 

        (1)  a
Board Resolution relating thereto, and if applicable, an appropriate record of any action taken pursuant to such Board Resolution, certified by the Secretary or
Assistant Secretary of the Issuer or any Guarantor, if applicable; 

        (2)  an
executed supplemental indenture, if any; and 

        (3)  an
Opinion of Counsel which shall state; 

        (A)  that
the form and terms of such Securities have been established by or pursuant to Board Resolutions, by a supplemental indenture or by both such resolution or
resolutions and such supplemental indenture in conformity with the provisions of this Indenture; 

        (B)  that
the supplemental indenture, if any, when executed and delivered by the Issuer, any Guarantor and the Trustee, will constitute a valid and legally binding obligation
of the Issuer and such Guarantor; and 

        (C)  that
such Securities, when authenticated and delivered by the Trustee and issued by the Issuer and any Guarantor in the manner and subject to any conditions specified in
such Opinion of Counsel, will constitute valid and legally binding obligations of the Issuer and each such Guarantor, if applicable, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or 

16

 

affecting the enforcement of creditors' rights and to general equity principles, and will be entitled to the benefits of this Indenture. 

If
such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee. 

        Each
Security shall be dated the date of its authentication. 

        No
Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. 

SECTION
3.04.    Temporary Securities.    

        Pending
the preparation of definitive Securities of any series, the Issuer may execute, and upon Issuer Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, reproduced or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 

        If
temporary Securities of any series are issued, the Issuer will cause definitive Securities of that series to be prepared without unreasonable delay. After the preparation of
definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series
at the office or agency of the Issuer in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the
Issuer shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of the same series of authorized denominations. Until so
exchanged the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series. 

SECTION
3.05.    Registration, Registration of Transfer and Exchange Global Securities Representing the Securities.    

        (a)  The
Issuer shall cause to be kept at the Corporate Trust Office of the Trustee a register (the register maintained in such office and in any other office or agency of
the Issuer in a Place of Payment being herein sometimes referred to as the "Security Register") in which, subject to such reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed "Security Registrar" for the purpose of registering Securities and transfers of Securities as herein
provided. 

        Upon
surrender for registration of transfer of any Security of any series at the office or agency in a Place of Payment for that series, the Issuer shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and Stated Maturity. 

        Except
as otherwise provided in this Article Three, at the option of the Holder, Securities of any series may be exchanged for other Securities of the same series, of any authorized
denominations and of an equal aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, 

17

 

and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 

        All
Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Issuer and each Guarantor evidencing the same debt and entitled to
the same benefits under this Indenture as the Securities surrendered upon such registration of transfer or exchange. 

        Every
Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Issuer or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing with such signature guaranteed by a
commercial bank reasonably acceptable to the Trustee or by a member of a national securities exchange. 

        No
service charge shall be made for any registration of transfer or exchange of Securities, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, 10.06 or 12.07 not involving any transfer. 

        The
Issuer shall not be required (i) to issue, register the transfer of or exchange Securities of any series during a period beginning at the opening of business 15 days
before the day of the mailing of a notice
of redemption of Securities of that series selected for redemption under Section 12.03 and ending at the close of business on the day of such mailing, or (ii) to register the transfer of
or exchange of any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 

        (b)  If
the Issuer shall establish pursuant to Section 3.01 that the Securities of a series are to be issued in whole or in part in the form of one or more Global
Securities, then the Issuer shall execute and the Trustee shall, in accordance with Section 3.03 and the Issuer Order with respect to such series, authenticate and deliver one or more Global
Securities in temporary or permanent form that (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the Outstanding Securities of such series to
be represented by one or more Global Securities, (ii) shall be registered in the name of the Depositary for such Global Security or Securities or the nominee of such Depositary,
(iii) shall be delivered by the Trustee or delivered or held pursuant to such Depositary's instruction, and (iv) shall bear a legend substantially to the following effect: "This Security
may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor Depositary, unless and until this Security is exchanged in whole or in part for Securities in definitive form." 

        Each
Depositary designated pursuant to Section 3.01 must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and any other applicable statute or regulation. 

        If
at any time the Depositary for the Securities of a series notifies the Issuer that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any
time the Depositary for Securities of a series shall no longer be a clearing agency registered and in good standing under the Exchange Act or other applicable statute or regulation (as required by
this Section 3.05), the Issuer shall appoint a successor Depositary eligible under this Section 3.05 with respect to the Securities of such series. If a successor Depositary for the
Securities of such series is not appointed by the Issuer within 90 days after the Issuer receives such notice or becomes aware of such condition, the Issuer shall execute, and the Trustee, upon
receipt of an Issuer Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive 

18

 

form in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities. 

        The
Issuer may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more Global Securities shall no longer be represented by
such Global Security or Securities. In such event, the Issuer shall execute, and the Trustee, upon receipt of an Issuer Order for the authentication and delivery of definitive Securities of such
series, will authenticate and deliver, Securities of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing
such series in exchange for such Global Security or Securities. 

        If
the Securities of any series shall have been issued in the form of one or more Global Securities and if an Event of Default with respect to the Securities of such series shall have
occurred and be continuing, the Issuer may, and upon the request of the Trustee shall, promptly execute, and the Trustee, upon receipt of an Issuer Order for the authentication and delivery of
definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global
Security or Securities representing such series in exchange for such Global Security or Securities. 

        The
Depositary for such series of Securities may surrender a Global Security for such series of Securities in exchange in whole or in part for Securities of such series in definitive
form on such terms as are acceptable to the Issuer and such Depositary. Thereupon, the Issuer shall execute and the Trustee shall authenticate and deliver, without charge: 

        (i)    to
each Person specified by the Depositary a new Security or Securities of the same series, of any authorized denomination as requested by such Person in an aggregate
principal amount equal to and in exchange for such Person's beneficial interest in the Global Security; and 

        (ii)  to
the Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Securities delivered to holders thereof. 

        Upon
the exchange of a Global Security for Securities in definitive form, such Global Security shall be cancelled by the Trustee. Securities issued in exchange for a Global Security
pursuant to this subsection (b) shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Persons in whose names such Securities are so registered. 

SECTION
3.06.    Mutilated, Destroyed, Lost and Stolen Securities.    

        If
any mutilated Security is surrendered to the Trustee, the Issuer shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 

        If
there shall be delivered to the Issuer and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Issuer or the Trustee that such Security has been acquired by
a bona fide purchaser, the Issuer shall
execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding. 

        If
any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Issuer in its discretion may, instead of issuing a new Security, pay such
Security. 

19

  

        Upon the issuance of any new Security under this Section, the Issuer may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

        Every
new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the
Issuer and each Guarantor, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued hereunder. 

        The
provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities. 

SECTION
3.07.    Payment of Interest; Interest Rights Preserved.    

        Interest
on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. 

        At
the option of the Issuer, interest on the Securities of any series that bear interest may be paid by mailing a check to the address of the Person entitled thereto as such address
shall appear in the Security Register. 

        Any
interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date ("Defaulted Interest") shall forthwith cease to
be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Issuer, at its election in each case, as provided in
clause (1) or (2) below: 

        (1)  The
Issuer may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities)
are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Issuer shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Issuer shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it appears in
the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following clause (2). 

20

 

        (2)  The
Issuer may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the Trustee. 

        Subject
to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 

SECTION
3.08.    Persons Deemed Owners.    

        Prior
to due presentment of a Security for registration of transfer, the Issuer, any Guarantor, the Trustee and any agent of the Issuer, any Guarantor or the Trustee may treat the Person
in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Section 3.07) interest on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and none of the Issuer, any Guarantor, the Trustee or any agent of the Issuer, any Guarantor or the Trustee
shall be affected by notice to the contrary. 

SECTION
3.09.    Cancellation.    

        All
Securities surrendered for payment, redemption, conversion, registration of transfer or exchange or for credit against any sinking fund payment or analogous obligation shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee and promptly shall be cancelled by it and, if surrendered to the Trustee, shall be promptly cancelled by it. The Issuer or
any Guarantor may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Issuer or such Guarantor may have acquired in any manner
whatsoever, and all Securities so delivered promptly shall be cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of in accordance with the Trustee's customary procedures unless directed by an
Issuer Order. The acquisition of any Securities by the Issuer or any such Guarantor shall not operate as a redemption or satisfaction of the Indebtedness represented thereby unless and until such
Securities are surrendered to the Trustee for cancellation. Permanent Global Securities shall not be destroyed until exchanged in full for definitive Securities or until payment thereon is made in
full. 

SECTION
3.10.    Computation of Interest.    

        Except
as otherwise specified as contemplated by Section 3.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year of
twelve 30-day months. 

SECTION
3.11.    CUSIP Numbers.    

        The
Issuer in issuing the Securities may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Issuer will promptly notify the Trustee of any change in the "CUSIP" numbers. 

21

 

 
 

ARTICLE FOUR    
    
    SUBORDINATION OF SECURITIES    
  

SECTION
4.01.    Agreement To Subordinate.    

        (a)  The
Issuer agrees, and each Holder by accepting a Security of any series agrees, that the Indebtedness evidenced by the Securities is subordinated in right of payment,
to the extent and in the manner provided in this Article Four, to the prior payment in full in cash or Cash Equivalents of all Senior Indebtedness of the Issuer and that the subordination is for the
benefit of and enforceable by the holders of such Senior Indebtedness. The Securities shall in all respects rank pari passu with all other Subordinated
Indebtedness of the Issuer; and only Indebtedness of the Issuer that is Senior Indebtedness of the Issuer shall rank senior to the Securities in accordance with the provisions set forth herein. All
provisions of this Article Four shall be subject to Section 4.12. 

        (b)  Each
Guarantor agrees, and each Holder by accepting a Security of any series agrees, that the Indebtedness evidenced by the Guarantees is subordinated in right of
payment, to the extent and in the manner provided in this Article Four, to the prior payment in full in cash or Cash Equivalents of all Senior Indebtedness of such Guarantor and that the subordination
is for the benefit of and enforceable by the holders of such Senior Indebtedness. The Guarantees shall in all respects rank pari passu with all other
Subordinated Indebtedness of the Issuer; and only Indebtedness of the Guarantor that is Senior Indebtedness of such Guarantor shall rank senior to the Guarantees in accordance with the provisions set
forth herein. All provisions of this Article Four shall be subject to Section 4.12. 

SECTION
4.02.    Liquidation, Dissolution, Bankruptcy.    

        Upon
any distribution to creditors of the Issuer in a liquidation or dissolution of the Issuer or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating
to the Issuer or its property, an assignment for the benefit of creditors or any marshaling of the Issuer's assets and liabilities, the holders of Senior Indebtedness shall be entitled to receive
payment in full in cash or Cash Equivalents of such Senior Indebtedness and all outstanding Letter of Credit Obligations shall be fully cash collateralized before the Holders shall be entitled to
receive any payment with respect to the Securities, and until all Senior Indebtedness is paid in full in cash or Cash Equivalents, any distribution to which the Holders would be entitled shall be made
to the holders of Senior Indebtedness (except that Holders may receive (i) shares of stock and any debt securities that are subordinated at least to the same extent as the Securities to
(a) Senior Indebtedness and (b) any securities issued in exchange for Senior Indebtedness and (ii) payments and other distributions made from the trusts described in
Section 5.01). 

SECTION
4.03.    Default on Senior Indebtedness.    

        The
Issuer shall not make any payment upon or in respect of the Securities (except that Holders may receive (i) shares of stock and any debt securities that are subordinated at
least to the same extent as the Securities to (a) Senior Indebtedness and (b) any securities issued in exchange for Senior Indebtedness and (ii) payments and other distributions
made from the trusts described in Section 5.01) until all Senior Indebtedness has been paid in full in cash or Cash Equivalents if (i) a default in the payment of the principal of,
premium, if any, or interest on, or of unreimbursed amounts under drawn letters of credit or in respect of bankers' acceptances or fees relating to letters of credit or bankers' acceptances
constituting, Designated Senior Indebtedness occurs and is continuing beyond any applicable period of grace in the indenture, agreement or other document governing such Designated Senior Indebtedness
(a "Payment Default") or (ii) any other default occurs and is continuing with respect to Designated Senior Indebtedness that permits holders of the Designated Senior Indebtedness as to which
such default relates to accelerate its maturity without further notice (except such notice as 

22

 

may be required to effect such acceleration) or the expiration of any applicable grace periods (a "Non-Payment Default") and the Trustee receives a notice of such default (a "Payment
Blockage Notice") from a representative of holders of such Designated Senior Indebtedness. Payments on the Securities, including any missed payments, may and shall be resumed (a) in the case of
a Payment Default, upon the date on which such default is cured or waived or shall have ceased to exist or such Designated Senior Indebtedness shall have been discharged or paid in full in cash or
Cash Equivalents and all outstanding Letter of Credit Obligations shall have been fully cash collateralized and (b) in case of a Non-Payment Default, the earlier of (x) the
date on which such nonpayment default is cured or waived, (y) 179 days after the date on which the applicable Payment Blockage Notice is received (each such period, the "Payment Blockage
Period") or (z) the date such Payment Blockage Period shall be terminated by written notice to the Trustee from the requisite holders of such Designated Senior Indebtedness necessary to
terminate such period or from their representative. No new Payment Blockage Period may be commenced unless and until 365 days have elapsed since the effectiveness of the immediately preceding
Payment Blockage Notice. However, if any Payment Blockage Notice within such 365-day period is given by or on behalf of any holders of Designated Senior Indebtedness (other than the agent
under the Senior Credit Facilities), the agent under the Senior Credit Facilities may give another Payment Blockage Notice within such period. In no event, however, shall the total number of days
during which any Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate during any 365 consecutive day period. No Non-Payment Default that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice unless such default shall have been cured or
waived for a period of not less than 90 days. 

SECTION
4.04.    Acceleration of Payment of Securities.    

        If
payment of the Securities of any series is accelerated because of an Event of Default, the Issuer or the Trustee shall promptly notify the holders of the Designated Senior
Indebtedness (or their Representative) of the acceleration. If any Designated Senior Indebtedness is outstanding, the Issuer shall not pay the Securities until five Business Days after such holders or
the Representative of the
Designated Senior Indebtedness receive notice of such acceleration and, thereafter, shall pay the Securities only if this Article Four otherwise permits payment at that time. 

SECTION
4.05.    When Distribution Must Be Paid Over.    

        If
a distribution is made to Holders that because of this Article Four should not have been made to them, the Holders who receive the distribution shall hold it in trust for holders of
Senior Indebtedness of the Issuer and pay it over to them as their interests may appear. 

SECTION
4.06.    Subrogation.    

        After
all Senior Indebtedness of the Issuer is paid in full and until the Securities are paid in full, Holders shall be subrogated to the rights of holders of such Senior Indebtedness to
receive distributions applicable to Senior Indebtedness. A distribution made under this Article Four to holders of such Senior Indebtedness which otherwise would have been made to Holders is not, as
between the Issuer and Holders, a payment by the Issuer on such Senior Indebtedness. 

SECTION
4.07.    Relative Rights.    

        This
Article Four defines the relative rights of Holders and holders of Senior Indebtedness of the Issuer. Nothing in this Indenture shall: 

        (1)  impair,
as between the Issuer and Holders, the obligation of the Issuer, which is absolute and unconditional, to pay principal of and interest on and liquidated damages
in respect of, the Securities in accordance with their terms; or 

23

 

        (2)  prevent
the Trustee or any Holder from exercising its available remedies upon the occurrence of an Event of Default, subject to the rights of holders of Senior
Indebtedness of the Issuer to receive distributions otherwise payable to Holders. 

SECTION
4.08.    Subordination May Not Be Impaired by Issuer.    

        No
right of any holder of Senior Indebtedness of the Issuer to enforce the subordination of the Indebtedness evidenced by the Securities shall be impaired by any act or failure to act by
the Issuer or by its failure to comply with this Indenture. 

SECTION
4.09.    Rights of Trustee and Paying Agent.    

        Notwithstanding
Section 4.03, the Trustee or Paying Agent may continue to make payments on the Securities and shall not be charged with knowledge of the existence of facts that
would prohibit the making of any such payments unless, not less than two Business Days prior to the date of such payment, a Responsible Officer of the Trustee receives notice satisfactory to it that
payments may not be made under this Article Four. The Issuer, the Registrar, the Paying Agent, a Representative or a holder of Senior Indebtedness of the Issuer may give the notice;  provided,
however, that, if an issue of Senior Indebtedness of the Issuer has a Representative, only the
Representative may give the notice. 

        The
Trustee in its individual or any other capacity may hold Senior Indebtedness of the Issuer with the same rights it would have if it were not Trustee. The Registrar and the Paying
Agent may do the same with like rights. The Trustee shall be entitled to all the rights set forth in this Article Four with respect to any Senior Indebtedness of the Issuer which may at any time be
held by it, to the same extent as any other holder of such Senior Indebtedness; and nothing in Article Seven shall deprive the Trustee of any of its rights as such holder. Nothing in this Article Four
shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.07. 

SECTION
4.10.    Distribution or Notice to Representative.    

        Whenever
a distribution is to be made or a notice given to holders of Senior Indebtedness of the Issuer, the distribution may be made and the notice given to their Representative (if
any). 

SECTION
4.11.    Article Four Not to Prevent Events of Default or Limit Right to Accelerate.    

        The
failure to make a payment pursuant to the Securities by reason of any provision in this Article Four shall not be construed as preventing the occurrence of an Event of Default.
Nothing in this Article Four shall have any effect on the right of the Holders or the Trustee to accelerate the maturity of the Securities. 

SECTION
4.12.    Trust Moneys Not Subordinated.    

        Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds of Government Securities held in trust under Article Five by the Trustee for the payment of
principal of and interest on the Securities shall not be subordinated to the prior payment of any Senior Indebtedness of the Issuer or subject to the restrictions set forth in this Article Four, and
none of the Holders shall be obligated to pay over any such amount to the Issuer or any holder of Senior Indebtedness of the Issuer or any other creditor of the Issuer. 

SECTION
4.13.    Trustee Entitled to Rely.    

        Upon
any payment or distribution pursuant to this Article Four, the Trustee and the Holders shall be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 4.02 are pending, (ii) upon a certificate of the liquidating trustee or agent or other Person making such
payment or distribution to the Trustee or to the Holders or (iii) upon the Representatives for the holders of Senior Indebtedness of the Issuer for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the 

24

 

holders of such Senior Indebtedness and other Indebtedness of the Issuer, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Four. In the event that the Trustee determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior Indebtedness of the
Issuer to participate in any payment or distribution pursuant to this Article Four, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such
Person under this Article Four, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such
payment. The provisions of Sections 7.01 and 7.03 shall be applicable to all actions or omissions of actions by the Trustee pursuant to this Article Four. 

SECTION
4.14.    Trustee to Effectuate Subordination.    

        Each
Holder by accepting a Security of any series authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders and the holders of Senior Indebtedness of the Issuer as provided in this Article Four and appoints the Trustee as attorney-in-fact for any and
all such purposes. 

SECTION
4.15.    Trustee Not Fiduciary for Holders of Senior Indebtedness.    

        The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Issuer and shall not be liable to any such holders if it shall mistakenly pay over
or distribute to Holders or the Issuer or any other Person, money or assets to which any holders of Senior Indebtedness of the Issuer shall be entitled by virtue of this Article Four or otherwise. 

SECTION
4.16.    Reliance by Holders of Senior Indebtedness on Subordination Provisions.    

        (a)  Each
Holder by accepting a Security of any series acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a
consideration to each holder of any Senior Indebtedness of the Issuer, whether such Senior Indebtedness was created or acquired before or after the issuance of the Securities, to acquire and continue
to hold, or to continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness. 

        (b)  Without
in any way limiting the generality of paragraph (a) of this Section, the holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the Holders, without incurring responsibility to the Holders and without impairing or releasing the subordination provided in this Article Four or the
obligations hereunder of the Holders to the holders of Senior Indebtedness, do any one or more of the following: (1) change the manner, place or terms of payment or extend the time of payment
of, or renew or alter, Senior Indebtedness or any instrument evidencing the same or any agreement under which Senior Indebtedness is outstanding; (2) sell, exchange, release or otherwise deal
with any property pledged, mortgaged or otherwise securing Senior Indebtedness; (3) release any Person liable in any manner for the collection of Senior Indebtedness; and (4) exercise or
refrain from exercising any rights against the Issuer, any Guarantor or any other Person. 

SECTION
4.17.    Trustee's Compensation Not Prejudiced.    

        Nothing
in this Article Four shall apply to amounts due to the Trustee pursuant to other sections of this Indenture. 

25

  

SECTION 4.18.    Defeasance.    

        The
terms of this Article Four shall not apply to payments from money or the proceeds of U.S. Government Securities held in trust by the Trustee for the payment of principal of and
interest on the Securities pursuant to the provisions described in Section 5.03. 

 
 

ARTICLE FIVE    
    
    SATISFACTION AND DISCHARGE; DEFEASANCE    
  

SECTION
5.01.    Satisfaction and Discharge of Securities of any Series.    

        The
Issuer shall be deemed to have satisfied and discharged the entire indebtedness on all the Securities of any particular series (except as to any surviving rights of registration of
transfer or exchange of Securities herein expressly provided for), and the Trustee, upon Issuer Request and at the expense of the Issuer, shall execute such instruments as may be requested by the
Issuer acknowledging satisfaction and discharge of such Indebtedness, when 

        (a)  either

        (1)  all
Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 3.06 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in Section 11.03) have been delivered to the Trustee for cancellation; or 

        (2)  all
such Securities not theretofore delivered to the Trustee for cancellation 

        (A)  have
become due and payable, or 

        (B)  will
become due and payable at their Stated Maturity within one year, or 

        (C)  are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at
the expense, of the Issuer, 

and
the Issuer or any Guarantor, in the case of (A), (B) or (C) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire Indebtedness on such Securities not theretofore delivered to the Trustee for cancellation (other than Securities which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.06), for principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due
and payable) or to the Stated Maturity or Redemption Date, as the case may be; 

        (b)  the
Issuer or any Guarantor has paid or caused to be paid all other sums payable hereunder by the Issuer or any Guarantor; and 

        (c)  the
Issuer has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to
the satisfaction and discharge of the entire Indebtedness on all Securities of such series have been complied with. 

        Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Issuer and each Guarantor to the Trustee under Section 7.07 and, if money shall have been
deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 5.03 and the last paragraph of
Section 11.03 shall survive. 

26

 

SECTION
5.02.    Option to Effect Legal Defeasance or Covenant Defeasance.    

        The
Issuer may, at the option of its Board of Directors evidenced by a supplemental indenture or, at any time, by a Board Resolution set forth in an Officers' Certificate with respect to
the Securities of any series, unless otherwise specified pursuant to Section 3.01 with respect to a particular series of Securities, elect to have either Section 5.03 or 5.04 be applied
to all of the Outstanding Securities of that series upon compliance with the conditions set forth below in this Article Five. 

SECTION
5.03.    Legal Defeasance and Discharge.    

        Upon
the Issuer's exercise under Section 5.02 of the option applicable to this Section 5.03, the Issuer shall be deemed to have been discharged from its obligations with
respect to all Outstanding Securities of the particular series and any coupons appertaining thereto on the date the conditions set forth below are satisfied (hereinafter, "Legal Defeasance"). For this
purpose, such Legal Defeasance means that the Issuer shall be deemed to have paid and discharged all the obligations relating to the Outstanding Securities of that series, including any coupons
appertaining thereto, and the Securities of that series, including any coupons appertaining thereto, shall thereafter be deemed to be "outstanding" only for the purposes of Section 5.06 and the
other Sections of this Indenture referred to below in this Section 5.03, and to have satisfied all of its other obligations under such Securities and any coupons appertaining thereto and this
Indenture and cured all then existing Events of Default (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged hereunder: (i) the Issuer's or any Guarantor's obligations, as the case may be, with respect to Securities of such series
under Sections 3.05, 3.06, 11.02 and 11.03, (ii) rights of Holders to receive payments of the principal of (and premium, if any) and interest, if any, on the Securities of such series as they
shall become due from time to time and other rights, duties and obligations of Holders as beneficiaries hereof with respect to the amounts so deposited with the Trustee, (iii) the rights,
obligations and immunities of the Trustee hereunder (for which purposes the Securities of such series shall be deemed outstanding) and (iv) this Article Five and the obligations set forth in
Section 5.06 hereof. 

        Subject
to compliance with this Article Five, the Issuer may exercise its option under Section 5.03 notwithstanding the prior exercise of its option under Section 5.04 with
respect to the Securities of a particular series and any coupons appertaining thereto. 

SECTION
5.04.    Covenant Defeasance.    

        Upon
the Issuer's exercise under Section 5.02 of the option applicable to this Section 5.04, the Issuer shall be released from any obligations under the covenants contained
in Sections 9.01, 11.04, 11.05, 11.06, 11.08 and 11.09 hereof or established pursuant to Sections 3.01 or 10.01 hereof with respect to the Outstanding Securities of the particular series on and after
the date the conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"), and the Securities of that series and any coupons appertaining thereto shall thereafter be deemed not
"Outstanding" for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be
deemed "Outstanding" for all other purposes hereunder (it being understood that such Securities shall not be deemed outstanding for accounting purposes). For this purpose, such Covenant Defeasance
means that, with respect to the Outstanding Securities of that
series and any coupons appertaining thereto, the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a default or Event of Default under Section 6.01(4) or any Event of Default specified pursuant to Section 3.01 or 10.01 but, except as
specified above, the remainder of this Indenture and the Securities of that series shall be unaffected thereby. 

27

 

SECTION
5.05.    Conditions to Legal or Covenant Defeasance.    

        The
following shall be the conditions to the application of either Section 5.03 or Section 5.04 to the Outstanding Securities of a particular series: 

        (a)  the
Issuer must irrevocably deposit, or cause to be irrevocably deposited, with the Trustee for the Securities of that series, in trust, for the benefit of the Holders
of the Securities of that series, cash in the currency or currency unit in which the Securities of that series are payable (except as otherwise specified pursuant to Section 301 for the
Securities of that series), U.S. Government Obligations or a combination thereof in such amounts as will be sufficient to pay the principal of, premium, if any, and interest, if any, due on the
outstanding Securities of that series and any related coupons at the Stated Maturity, or on the applicable Redemption Date, as the case may be, with respect to the outstanding Securities of that
series and any related coupons; 

        (b)  in
the case of Legal Defeasance only, the Issuer shall have delivered to the Trustee for the Securities of that series (1) an Opinion of Counsel confirming that,
subject to customary assumptions and exclusions, since the date on which Securities of such series were originally issued, there has been a change in the applicable U.S. Federal income tax law, to the
effect that, and based thereon such Opinion of Counsel shall confirm that, subject to customary assumptions and exclusions, the Holders of the Outstanding Securities of that series will not recognize
income, gain or loss for U.S. Federal income tax purposes as a result of such Legal Defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred or (2) a copy of a ruling or other formal statement or action to that effect received from or published by the U.S.
Internal Revenue Service; 

        (c)  in
the case of Covenant Defeasance only, the Issuer shall have delivered to the Trustee for the Securities of that series an Opinion of Counsel confirming that, subject
to customary assumptions and exclusions, the Holders of the Outstanding Securities of that series will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such
Covenant Defeasance and will be subject to such tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

        (d)  no
Event of Default or event which with the giving of notice or the lapse of time, or both, would become an Event of Default with respect to the Securities of that
series (other than any event resulting from the borrowing of funds to be applied to make such deposit) shall have occurred and be continuing on the date of such deposit; 

        (e)  such
Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under any material agreement (other than this
Indenture) or instrument to which the Issuer is a party or by which the Issuer is bound; and 

        (f)    the
Issuer shall have delivered to the Trustee for the Securities of that series an Officers' Certificate and an Opinion of Counsel (which opinion of counsel may be
subject to customary assumptions and exclusions) each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance, as the case may be, have been
complied with. 

        As
used in this Article Five, "U.S. Government Obligations" means securities that are (i) direct obligations of the United States of America for payment of which its full faith
and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation of the United States of America, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option
of the issuer thereof, and will also include a depository receipt issued by a bank or trust Issuer as custodian with respect to any such U.S. Government Obligation or a specified payment of interest
on or principal of any such U.S. Government Obligation held by such 

28

 

custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder
of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt. 

SECTION
5.06.    Survival of Certain Obligations.    

        Notwithstanding
the satisfaction and discharge of the Securities of a particular series referred to in Sections 5.01, 5.02, 5.04, or 5.05, the respective obligations of the Issuer and
the Trustee for the Securities of a particular series under Sections 3.03, 3.04, 3.05, 3.06, 3.09, 5.07, 5.08, 5.09 and 6.08, Article Seven, and Sections 8.01, 8.02, 11.02, 11.03 and 11.04, shall
survive with respect to Securities of that series until the Securities of that series are no longer outstanding, and thereafter the obligations of the Issuer and the Trustee for the Securities of a
particular series with respect to that series under Sections 5.07, 5.08 and 5.09 shall survive. Nothing contained in this Article Five shall abrogate any of the obligations or duties of the Trustee of
any series of Securities under this Indenture. 

SECTION
5.07.    Application of Trust Money.    

        Subject
to the provisions of the last paragraph of Section 11.03, all money deposited with the Trustee pursuant to Sections 5.01 and 5.02 shall be held in trust and applied by it,
in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer or any Guarantor acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee. 

SECTION
5.08.    Repayment of Moneys Held by Paying Agent.    

        Any
money deposited with the Trustee or any other Paying Agent remaining unclaimed by the Holders of any Securities for two years after the date upon which the principal of or interest
on such Securities shall have become due and payable, shall be repaid to the Issuer by the Trustee or any such other Paying Agent and such Holders shall thereafter be entitled to look to the Issuer
only as general creditors for payment thereof (unless otherwise provided by law); provided, however, that, before the Trustee or any such other Paying
Agent is required to make any such payment to the Issuer, the Trustee may, upon the request of the Issuer and at the expense of the Issuer, cause to be published once in an Authorized Newspaper a
notice that such money remains unclaimed and that, after the date set forth in said notice, the balance of such money then unclaimed will be returned to the Issuer. 

SECTION
5.09.    Reinstatement.    

        If
the Trustee is unable to apply any money or U.S. Government Obligations in accordance with Sections 5.01 or 5.02, as the case may be, by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer's and each Guarantor's obligations under this Indenture and
the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Sections 5.01 or 5.02, as the case may be, until such time as the Trustee is permitted to apply all such
money or U.S. Government Obligations in accordance with Sections 5.01 or 5.02, as the case may be; provided that, if the Issuer or any Guarantor has
made payment of principal of, or interest on any Securities because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or U.S. Government Obligations held by the Trustee. 

29

 

 
 

ARTICLE SIX    
    
    REMEDIES OF THE TRUSTEE AND
  HOLDERS ON EVENT OF DEFAULT    
  

SECTION
6.01.    Events of Default.    

        "Event
of Default," wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 

        (1)  default
in the payment of interest upon any Security of that series when it becomes due and payable, and continuance of such default for a period of 30 days
(whether or not such default shall be by reason of the operation of the provisions of Article Four); or 

        (2)  default
in the payment of the principal of (or premium, if any, on) any Security of that series at its Maturity (whether or not such default shall be by reason of the
operation of the provisions of Article Four); or 

        (3)  default
in the deposit of any sinking fund payment, when and as due by the terms of any Security of that series (whether or not such default shall be by reason of the
operation of the provisions of Article Four); or 

        (4)  default
in the performance, or breach, of any covenant or warranty of the Issuer, Trinity, any Restricted Subsidiary or any Guarantor in this Indenture or any Security
of that series (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this
Indenture solely for the benefit of series of Securities other than that series), and continuance of such default or breach for a period of 90 days after there has been given, by registered or
certified mail, to the Issuer or any Guarantor by the Trustee or to the Issuer or any Guarantor and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that
series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or 

        (5)  the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Issuer, Trinity or any Significant Restricted
Subsidiary in an involuntary case or proceeding under any applicable Bankruptcy Law or (B) a decree or order adjudging Trinity or any Significant Restricted Subsidiary a bankrupt or insolvent,
or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of Trinity or any Significant Restricted Subsidiary under any applicable
federal or state law, or appointing a Custodian of Trinity or any Significant Restricted Subsidiary or of any substantial part of their property, or ordering the winding up or liquidation of its
affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or 

        (6)  the
commencement by the Issuer, Trinity or any Significant Restricted Subsidiary of a voluntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in
respect of the Trinity or any Significant Restricted Subsidiary in an involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law
or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable
federal or state law, or the consent by it to the filing of such petition or to the appointment of or taking 

30

 

possession by a Custodian of Trinity or any Significant Restricted Subsidiary of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by Trinity or any Significant Restricted Subsidiary in furtherance of any
such action, or the taking of any comparable action under any foreign laws relating to insolvency; or 

        (7)  any
Guarantee shall for any reason cease to be, or shall for any reason be asserted in writing by any Guarantor not to be, in full force and effect and enforceable in
accordance with its terms, except to the extent contemplated by the Indenture and any such Guarantee; or 

        (8)  any
other Event of Default provided with respect to Securities of that series. 

SECTION
6.02.    Acceleration of Maturity; Rescission and Annulment.    

        If
an Event of Default with respect to Securities of any series at the time Outstanding (other than of a type specified in Section 6.01(5) or (6)) occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal amount (or, if the Securities of that
series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Issuer or a Guarantor (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become
immediately due and payable, anything in this Indenture or
in any of the Securities of such series to the contrary notwithstanding; provided, however, that payment of principal of (and premium, if any) and
interest on the Securities of such series shall remain subordinated to the extent provided in Article Four. 

        At
any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Issuer or a Guarantor and
the Trustee, may rescind and annul such declaration and its consequences if 

        (1)  the
Issuer or any Guarantor has paid or deposited with the Trustee a sum sufficient to pay 

        (A)  all
overdue interest on all Securities of that series, 

        (B)  the
principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and interest thereon at
the rate or rates prescribed therefor in such Securities, 

        (C)  to
the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Securities, and 

        (D)  all
sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; 

and 

        (2)  all
Events of Default with respect to Securities of that series, other than the nonpayment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 6.13. 

No
such rescission shall affect any subsequent default or impair any right consequent thereon. 

        Notwithstanding
the foregoing, in the case of an Event of Default arising under Section 6.01(5) or (6), all outstanding Securities shall IPSO FACTO become due and payable without
further action or notice. 

31

 

SECTION
6.03.    Collection of Indebtedness and Suits for Enforcement by Trustee.    

        The
Issuer covenants that if 

        (1)  default
is made in the payment of interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, 

        (2)  default
is made in the payment of the principal of (or, premium, if any, on) any Security at the Maturity thereof, or 

        (3)  default
is made in the making or satisfaction of any sinking fund payment or analogous obligation when the same becomes due pursuant to the terms of any Security, 

the
Issuer, upon demand of the Trustee, will pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal, including any sinking
fund payment or analogous obligations (and premium, if any) and interest, if any, and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and
premium, if any) and on any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

        If
the Issuer fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Issuer, any Guarantor or any other obligor upon such Securities
and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Issuer, any Guarantor or any other obligor upon such Securities, wherever situated. 

        If
an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of
the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement
of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

SECTION
6.04.    Trustee May File Proofs of Claim.    

        In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Issuer, any Guarantor or any other obligor upon the Securities or the property of the Issuer, any Guarantor or of such other obligor or their creditors, the Trustee (irrespective of whether the
principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Issuer for the
payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, 

        (i)    to
file and prove a claim for the whole amount of principal (and premium, if any) and interest, if any, owing and unpaid in respect of the Securities and to file such
other papers or documents and take such other actions, including participating as a member, voting or otherwise, of any official committee of creditors appointed in such matter, as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the
Holders allowed in such judicial proceeding, and 

        (ii)  to
collect and receive any moneys or other property payable or deliverable on any such claim and to distribute the same; 

32

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. 

        Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding except as
aforesaid, to vote for the election of a trustee in bankruptcy or similar person or to participate as a member, voting or otherwise, on any committee of creditors. 

SECTION
6.05.    Trustee May Enforce Claims without Possession of Securities.    

        All
rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered. 

SECTION
6.06.    Application of Money Collected.    

        Subject
to the provisions of Article Four, any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the Securities and the notation thereon of the payment if only partially
paid and upon surrender thereof if fully paid: 

        FIRST:
To the payment of all amounts due the Trustee under Section 7.07; 

        SECOND:
To the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest on the Securities in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively; and 

        THIRD:
To the payment of the remainder, if any, to the Issuer, its successors or assigns, or to whomever may be so lawfully entitled to receive the same, or as a court of competent
jurisdiction may direct. 

SECTION
6.07.    Limitation on Suits.    

        No
Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless 

        (1)  such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series; 

        (2)  the
Holders of not less than a majority in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder; 

33

  

        (3)  such
Holder or Holders have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such
request; 

        (4)  the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and 

        (5)  no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount
of the Outstanding Securities of that series; 

it
being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such Holders. 

SECTION
6.08.    Unconditional Right of Holders to Receive Principal, Premium and Interest.    

        Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment (subject to the provisions
of Article Four) of the principal of (and premium, if any) and (subject to Section 3.07) interest on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption, on the Redemption Date) and the right to institute suit for the enforcement of any such payment and such rights shall not be impaired without the consent of such Holder. 

SECTION
6.09.    Restoration of Rights and Remedies.    

        If
the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or
has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Issuer, any Guarantor, the Trustee and the Holders
shall be
restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted. 

SECTION
6.10.    Rights and Remedies Cumulative.    

        Except
as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.06, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 

SECTION
6.11.    Delay or Omission Not Waiver.    

        No
delay or omission of the Trustee or of any Holder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of
any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be. 

SECTION
6.12.    Control by Holders.    

        The
Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any
remedy 

34

 

available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series, provided that 

        (1)  such
direction shall not be in conflict with any rule of law or with this Indenture, 

        (2)  the
Trustee shall not determine that the action so directed would be unjustly prejudicial to the Holders of the Securities of such series not taking part in such
direction, or to the Holders of the Securities of any other series, and 

        (3)  the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 

SECTION
6.13.    Waiver of Past Defaults.    

        Subject
to Section 6.02, the Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities
of such series waive any past default hereunder with respect to such series and its consequences, except a default 

        (1)  in
the payment of the principal of (or premium, if any) or interest on any Security of such series, or 

        (2)  in
respect of a covenant or provision hereof which under Article Ten cannot be modified or amended without the consent of the Holder of each Outstanding Security of such
series affected. 

        Upon
any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

SECTION
6.14.    Undertaking for Costs.    

        All
parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any
suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series, or to any suit instituted by any Holder for
the enforcement of the payment of the principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date). 

SECTION
6.15.    Waiver of Stay or Extension Laws.    

        The
Issuer and each Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Issuer and each
Guarantor (to the extent that they may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 

35

 
 
 

ARTICLE SEVEN    
    
    THE TRUSTEE    
  

SECTION
7.01.    Certain Duties and Responsibilities.    

        (a)  Except
during the continuance of an Event of Default, 

        (1)  the
Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and 

        (2)  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture but need not
verify the accuracy of the contents thereof or whether procedures specified by or pursuant to the provisions of this Indenture have been followed in the preparation thereof. 

        (b)  In
case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. 

        (c)  No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that 

        (1)  this
subsection shall not be construed to limit the effect of Subsection (a) of this Section; 

        (2)  the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; 

        (3)  the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority
in principal amount of the Outstanding Securities of any series, determined as provided in Section 6.12, relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; 

        (4)  no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers; and 

        (5)  whether
or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section. 

SECTION
7.02.    Notice of Defaults.    

        Within
90 days after the occurrence of any default hereunder with respect to the Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such
series, as their names and addresses appear in the Security Register, notice of such default hereunder known to the Trustee, 

36

 

unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of (or
premium, if any) or interest on any Security of such series or in the payment of any sinking fund or analogous obligation installment with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the
board of directors, the executive committee or a trust committee of directors or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of
the Holders of Securities of such series; and provided, further, that in the case of any default of the character specified in Section 6.01(4)
with respect to Securities of such series, no such notice to Holders shall be given until at least 30 days after the occurrence thereof. For the purpose of this Section, the term "default"
means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series. 

SECTION
7.03.    Certain Rights of Trustee.    

        Subject
to the provisions of Section 7.01: 

        (a)  the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the
proper party or parties; 

        (b)  any
request or direction of the Issuer or any Guarantor mentioned herein shall be sufficiently evidenced by a Issuer Request or Issuer Order or similar document and any
resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 

        (c)  whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers' Certificate; 

        (d)  the
Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

        (e)  the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders
pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction; 

        (f)    the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine the books, records and premises of the Issuer or any Guarantor, personally or by agent or attorney; 

        (g)  the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 

        (h)  the
Trustee shall not be deemed to have notice or knowledge of any matter unless a Responsible Officer assigned to and working in the Trustee's corporate trust
department has actual 

37

 

knowledge thereof or unless written notice thereof is received by the Trustee at the Corporate Trust Office and such notice references the Securities generally, the Issuer, a Guarantor or this
Indenture. Whenever reference is made in this Indenture to an Event of Default, such reference shall, insofar as determining any liability on the part of the Trustee is concerned, be construed to
refer only to an Event of Default of which the Trustee is deemed to have knowledge in accordance with this paragraph; 

        (i)    the
permissive right of the Trustee to take or refrain from taking any actions enumerated in this Indenture shall not be construed as a duty; 

        (j)    the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture; 

        (k)  the
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall
be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder; and 

        (l)    the
Trustee may request that the Issuer deliver an Officers' Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so authorized in
any such certificate previously delivered and not superseded. 

SECTION
7.04.    Not Responsible for Recitals or Issuance of Securities.    

        The
recitals contained herein and in the Securities, except the Trustee's certificate of authentication, shall be taken as the statements of the Issuer or any Guarantor, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for
the use or application by the Issuer or any Guarantor of Securities or the proceeds thereof. 

SECTION
7.05.    May Hold Securities.    

        The
Trustee, any Paying Agent, any Security Registrar or any other agent of the Issuer or any Guarantor, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 7.08 and 7.13, may otherwise deal with the Issuer or such Guarantor with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar or
such other agent. 

SECTION
7.06.    Money Held in Trust.    

        Money
held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any
money received by it hereunder. 

SECTION
7.07.    Compensation and Reimbursement.    

        The
Issuer and the Guarantors agree 

        (1)  to
pay to the Trustee from time to time such compensation as shall be agreed upon in writing by the Trustee and the Issuer for all services rendered by it hereunder
(which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 

        (2)  except
as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in 

38

 

accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance
as may be attributable to its negligence or bad faith; and 

        (3)  to
indemnify the Trustee for, and to hold it harmless against, any and all loss, damage, claims, liability or expense, including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee) incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses, including reasonable attorneys' fees, of defending itself against any claim (whether asserted by the Issuer, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers or duties hereunder. 

        As
security for the performance of the obligations of the Issuer and the Guarantors under this Section the Trustee shall have a lien prior to the Securities upon all property and funds
held or collected by the Trustee, except funds held in trust for the benefit of the Holders of particular Securities. 

        If
the Trustee incurs expenses or renders services after the occurrence of an Event of Default specified in clause (5) or (6) of Section 6.01, the expenses and the
compensation for the services will be intended to constitute expenses of administration under Bankruptcy Law. 

        The
provisions of this Section 7.07 shall survive the resignation or removal of the Trustee and the termination of this Indenture. 

SECTION
7.08.    Disqualification; Conflicting Interests.    

        The
Trustee for the Securities of any series issued hereunder shall be subject to the provisions of Section 310(b) of the Trust Indenture Act during the period of time provided
for therein. In determining whether the Trustee has a conflicting interest as defined in Section 310(b) of the Trust Indenture Act with respect to the Securities of any series, there shall be
excluded from the operation of this paragraph this Indenture with respect to Securities of any other series of Securities. Nothing herein shall prevent the Trustee from filing with the Commission the
application referred to in the second to last paragraph of Section 310(b) of the Trust Indenture Act. 

SECTION
7.09.    Corporate Trustee Required; Eligibility.    

        There
shall at all times be a corporate Trustee hereunder which complies with the requirements of Section 310(a) of the Trust Indenture Act, having a combined capital and surplus
of at least $50,000,000, subject to supervision or examination by federal or state authority and having its Corporate Trust Office
in the Borough of Manhattan, The City of New York. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. 

SECTION
7.10.    Resignation and Removal; Appointment of Successor.    

        (a)  No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by
the successor Trustee in accordance with the applicable requirements of Section 7.11. 

        (b)  The
Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Issuer. If the instrument of acceptance
by a successor Trustee required by Section 7.11 shall not have been delivered to the Trustee within 10 days after 

39

 

the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction, at the expense of the Issuer, for the appointment of a successor Trustee with respect
to the Securities of such series. 

        (c)  The
Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities
of such series, delivered to the Trustee and to the Issuer. 

        (d)  If
at any time: 

        (1)  the
Trustee shall fail to comply with Section 7.08(a) after written request therefor by the Issuer or by any Holder who has been a bona fide Holder of a Security
for at least six months, or 

        (2)  the
Trustee shall cease to be eligible under Section 7.09 and shall fail to resign after written request therefor by the Issuer, any Guarantor or by any such
Holder, or 

        (3)  the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any
public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then,
in any such case, (i) the Issuer or any Guarantor by a Board Resolution may remove the Trustee with respect to all Securities, or (ii) subject to Section 6.14, any Holder
who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees. 

        (e)  If
an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Issuer, any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

        (f)    If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause with respect to the Securities
of one or more series, the Issuer, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 7.11. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the
Issuer and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 7.11,
become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Issuer. If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Issuer or the Holders and accepted appointment in the manner required by Section 7.11, any Holder who has been a bona fide Holder of
a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series. 

        (g)  The
Issuer shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee
with respect to 

40

 

the Securities of any series by mailing written notice of such event to all Holders of Securities of such series as their names and addresses appear in the Security Register. Each notice shall
include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office. 

SECTION
7.11.    Acceptance of Appointment by Successor.    

        (a)  In
case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Issuer and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Issuer, any Guarantor or
the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 

        (b)  In
case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Issuer, each Guarantor, the retiring
Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring
with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee; and upon execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Issuer, any Guarantor or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates. 

        (c)  Upon
request of any such successor Trustee, the Issuer shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor
Trustee all rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be. 

        (d)  No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article. 

41

  

SECTION 7.12.    Merger, Conversion, Consolidation or Succession to Business.    

        Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 

SECTION
7.13.    Preferential Collection of Claims Against Issuer.    

        (a)  Subject
to subsection (b) of this Section, if the Trustee shall be or shall become a creditor, directly or indirectly, secured or unsecured, of the Issuer within
three months prior to a default, as defined in subsection (c) of this Section, or subsequent to such a default, then, unless and until such default shall be cured, the Trustee shall set apart
and hold in a special account for the benefit of the Trustee individually, the Holders of the Securities and the holders of other indenture securities, as defined in subsection (c) of this
Section: 

        (1)  an
amount equal to any and all reductions in the amount due and owing upon any claim as such creditor in respect of principal or interest, effected after the beginning
of such three-month period and valid as against the Issuer and its other creditors, except any such reduction resulting from the receipt or disposition of any property described in
paragraph (2) of this subsection, or from the exercise of any right of set-off which the Trustee could have exercised if a petition in bankruptcy had been filed by or against the
Issuer upon the date of such default; and 

        (2)  all
property received by the Trustee in respect of any claims as such creditor, either as security therefor, or in satisfaction or composition thereof, or otherwise,
after the beginning of such three-month period, or an amount equal to the proceeds of any such property, if disposed of, subject, however, to the rights, if any, of the Issuer and its other creditors,
in such property or such proceeds. 

Nothing
herein contained, however, shall affect the right of the Trustee: 

        (A)  to
retain for its own account (i) payments made on account of any such claim by any Person (other than the Issuer) who is liable thereon, and (ii) the
proceeds of the bona fide sale of any such claim by the Trustee to a third Person, and (iii) distributions made in cash, securities or other property in respect of claims filed against the
Issuer in bankruptcy or receivership or in proceedings for reorganization pursuant to the Federal Bankruptcy Act or applicable state law; 

        (B)  to
realize, for its own account, upon any property held by it as security for any such claim, if such property was so held prior to the beginning of such three-month
period; 

        (C)  to
realize, for its own account, but only to the extent of the claim hereinafter mentioned, upon any property held by it as security for any such claim, if such claim
was created after the beginning of such three-month period and such property was received as security therefor simultaneously with the creation thereof, and if the Trustee shall sustain the burden of
proving that at the time such property was so received the Trustee had no reasonable cause to believe that a default, as defined in subsection (c) of this Section, would occur within three
months; or 

42

 

        (D)  to
receive payment on any claim referred to in paragraph (B) or (C), against the release of any property held as security for such claim as provided in
paragraph (B) or (C), as the case may be, to the extent of the fair value of such property. 

        For
the purposes of paragraphs (B), (C) and (D), property substituted after the beginning of such three-month period for property held as security at the time of such substitution
shall, to the extent of the fair value of the property released, have the same status as the property released, and, to the extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding any pre-existing claim of the Trustee as such creditor, such claim shall have the same status as such
pre-existing claim. 

        If
the Trustee shall be required to account, the funds and property held in such special account and the proceeds thereof shall be apportioned among the Trustee, the Holders and the
holders of other indenture securities in such manner that the Trustee, the Holders and the holders of other indenture securities realize, as a result of payments from such special account and payments
of dividends on claims filed against the Issuer in bankruptcy or receivership or in proceedings for reorganization pursuant to the Federal Bankruptcy Act or applicable state law, the same percentage
of their respective claims, figured before crediting to the claim of the Trustee anything on account of the receipt by it
from the Issuer of the funds and property in such special account and before crediting to the respective claims of the Trustee and the Holders and the holders of other indenture securities dividends
on claims filed against the Issuer in bankruptcy or receivership or in proceedings for reorganization pursuant to the Federal Bankruptcy Act or applicable state law, but after crediting thereon
receipts on account of the indebtedness represented by their respective claims from all sources other than from such dividends and from the funds and property so held in such special account. As used
in this paragraph, with respect to any claim, the term "dividends" shall include any distribution with respect to such claim, in bankruptcy or receivership or proceedings for reorganization pursuant
to the Federal Bankruptcy Act or applicable state law, whether such distribution is made in cash, securities or other property, but shall not include any such distribution with respect to the secured
portion, if any, of such claim. The court in which such bankruptcy, receivership or proceeding for reorganization is pending shall have jurisdiction (i) to apportion among the Trustee, the
Holders and the holders of other indenture securities, in accordance with the provisions of this paragraph, the funds and property held in such special account and proceeds thereof, or (ii) in
lieu of such apportionment, in whole or in part, to give to the provisions of this paragraph due consideration in determining the fairness of the distributions to be made to the Trustee and the
Holders and the holders of other indenture securities with respect to their respective claims, in which event it shall not be necessary to liquidate or to appraise the value of any securities or other
property held in such special account or as security for any such claim, or to make a specific allocation of such distributions as between the secured and unsecured portions of such claims, or
otherwise to apply the provisions of this paragraph as a mathematical formula. 

        Any
Trustee which has resigned or been removed after the beginning of such three-month period shall be subject to the provisions of this subsection as though such resignation or removal
had not occurred. If any Trustee has resigned or been removed prior to the beginning of such three-month period, it shall be subject to the provisions of this subsection if and only if the following
conditions exist: 

        (i)    the
receipt of property or reduction of claim, which would have given rise to the obligation to account, if such Trustee had continued as Trustee, occurred after the
beginning of such three-month period; and 

        (ii)  such
receipt of property or reduction of claim occurred within three months after such resignation or removal. 

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        (b)  There
shall be excluded from the operation of subsection (a) of this Section a creditor relationship arising from: 

        (1)  the
ownership or acquisition of securities issued under any indenture, or any security or securities having a maturity of one year or more at the time of acquisition by
the Trustee; 

        (2)  advances
authorized by a receivership or bankruptcy court of competent jurisdiction or by this Indenture, for the purpose of preserving any property which shall at any
time be subject to the lien of this Indenture or of discharging tax liens or other prior liens or encumbrances thereon, if notice of such advances and of the circumstances surrounding the making
thereof is given to the Holders at the time and in the manner provided in this Indenture; 

        (3)  disbursements
made in the ordinary course of business in the capacity of trustee under an indenture, transfer agent, registrar, custodian, paying agent, fiscal agent or
depositary, or other similar capacity; 

        (4)  an
indebtedness created as a result of services rendered or premises rented; or an indebtedness created as a result of goods or securities sold in a cash transaction, as
defined in subsection (c) of this Section; 

        (5)  the
ownership of stock or of other securities of a corporation organized under the provisions of Section 25(a) of the Federal Reserve Act, as amended, which is
directly or indirectly a creditor of the Issuer; and 

        (6)  the
acquisition, ownership, acceptance or negotiation of any drafts, bills of exchange, acceptances or obligations which fall within the classification of
self-liquidating paper, as defined in subsection (c) of this Section. 

        (c)  For
the purposes of this Section only: 

        (1)  the
term "default" means any failure to make payment in full of the principal of or interest on any of the Securities or upon the other indenture securities when and as
such principal or interest becomes due and payable; 

        (2)  the
term "other indenture securities" means securities upon which the Issuer is an obligor outstanding under any other indenture (i) under which the Trustee is
also trustee, (ii) which contains provisions substantially similar to the provisions of this Section and (iii) under which a default exists at the time of the apportionment of the funds
and property held in such special account; 

        (3)  the
term "cash transaction" means any transaction in which full payment for goods or securities sold is made within seven days after delivery of the goods or securities
in currency or in checks or other orders drawn upon banks or bankers and payable upon demand; 

        (4)  the
term "self-liquidating paper" means any draft, bill of exchange, acceptance or obligation which is made, drawn, negotiated or incurred by the Issuer for
the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title to, possession of or a
lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security, provided the security is
received by the Trustee simultaneously with the creation of the creditor relationship with the Issuer arising from the making, drawing, negotiating or incurring of the draft, bill of exchange,
acceptance or obligation; 

        (5)  the
term "Issuer" means any obligor upon the Securities at the time in question; and 

44

 

        (6)  the
term "Federal Bankruptcy Act" means the Bankruptcy Act or Title 11 of the United States Code. 

 
 

ARTICLE EIGHT    
    
    HOLDERS' LISTS AND REPORTS
  BY TRUSTEE AND ISSUER    
  

SECTION
8.01.    Issuer to Furnish Trustee Names and Addresses of Holders.    

        The
Issuer will furnish or cause to be furnished to the Trustee 

        (a)  semi-annually,
either (i) not later than June 1 and November 1 in each year in the case of Original Issue Discount Securities of any
series which by their terms do not bear interest prior to Maturity, or (ii) not more than 15 days after each Regular Record Date in the case of Securities of any other series, a list,
each in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Securities of such series as of the preceding June 1 or November 1 or as of such
Regular Record Date, as the case may be; and 

        (b)  at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Issuer of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished; 

provided, however, that so long as the Trustee is the Security Registrar with respect to Securities of any series, no such lists need be furnished. 

SECTION
8.02.    Preservation of Information; Communications to Holders.    

        (a)  The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the
Trustee as provided in Section 8.01 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 8.01 upon receipt of a new list so furnished. 

        (b)  If
three or more Holders (herein referred to as "applicants") apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has
owned a Security for a period of at least six months preceding the date of such application, and such application states that the applicants desire to communicate with other Holders with respect to
their rights under this Indenture or under the Securities and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit to such other Holders, then
the Trustee shall, within five business days after the receipt of such application, at its election, either 

        (i)    afford
such applicants access to the information preserved at the time by the Trustee in accordance with Section 8.02(a), or 

        (ii)  inform
such applicants as to the approximate number of Holders whose names and addresses appear in the information preserved at the time by the Trustee in accordance
with Section 8.02(a), and as to the approximate cost of mailing to such Holders the form of proxy or other communication, if any, specified in such application. 

        If
the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Holder whose name and
address appear in the information preserved at the time by the Trustee in accordance with Section 8.02(a) a copy of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after
such tender the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be 

45

 

mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the Holders or would be in violation of applicable law. Such
written statement shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all
the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all such Holders with reasonable promptness after the entry of such
order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application. 

        (c)  Every
Holder of Securities, by receiving and holding the same, agrees with the Issuer and the Trustee that neither the Issuer nor the Trustee nor any agent of either of
them shall be held responsible by reason of the disclosure of any such information as to the names and addresses of the Holders in accordance with Section 8.02(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 8.02(b). 

SECTION
8.03.    Reports by Trustee.    

        (a)  Within
60 days after the first May 15th occurring subsequent to the initial issuance of Securities hereunder and within 60 days after
each May 15th occurring thereafter, the Trustee shall transmit by mail to the Holders, as hereinafter provided, a brief report (but in no event shall such report be transmitted
more than twelve months after the date of the initial issuance of the Securities in the case of the first such report and at stated intervals of more than twelve months in the case of each subsequent
report) dated as of May 15th with respect to any of the following events which may have occurred during the twelve months preceding the date of such report (but if no such event
has occurred within such period, no report need be transmitted): 

        (1)  any
change to its eligibility under Section 7.09 and its qualifications under Section 7.08, or in lieu thereof, if to the best of its knowledge it has
continued to be eligible and qualified under said Sections, a written statement to such effect; 

        (2)  the
creation of or any material change to a relationship specified in Section 310(b)(1) through Section 310(b)(10) of the Trust Indenture Act; 

        (3)  the
character and amount of any advances (and, if the Trustee elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) which
remain unpaid on the date of such report, and for the reimbursement of which it claims or may claim a lien or charge, prior to that
of the Securities, on any property or funds held or collected by it as Trustee, except that the Trustee shall not be required (but may elect) to report such advances if such advances so remaining
unpaid aggregate not more than 1/2 of 1% of the principal amount of the Securities Outstanding for which it is Trustee on the date of such report; 

        (4)  any
change to the amount, interest rate and maturity date of all other indebtedness owing by the Issuer or any Guarantor (or by any other obligor on the Securities) to
the Trustee in its individual capacity, on the date of such report, with a brief description of any property held as collateral security therefor, except an indebtedness based upon a creditor
relationship arising in any manner described in Section 7.13(b)(2), (3), (4) or (6); 

        (5)  any
change to the property and funds, if any, physically in the possession of the Trustee as such on the date of such report; 

        (6)  any
additional issue of Securities which the Trustee has not previously reported; and 

46

 

        (7)  any
action taken by the Trustee in the performance of its duties hereunder which it has not previously reported and which in its opinion materially affects the
Securities, except action in respect of a default, notice of which has been or is to be withheld by the Trustee in accordance with Section 7.02. 

        (b)  The
Trustee shall transmit by mail to the Holders, as hereinafter provided, a brief report with respect to the character and amount of any advances (and if the Trustee
elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) since the date of the last report transmitted pursuant to subsection (a) of this Section (or
if no such report has yet been so transmitted, since the date of execution of this instrument) for the reimbursement of which it claims or may claim a lien or charge, prior to that of the Securities,
on property or funds held or collected by it as Trustee and which it has not previously reported pursuant to this subsection, except that the Trustee shall not be required (but may elect) to report
such advances if such advances remaining unpaid at any time aggregate 10% or less of the principal amount of the Securities Outstanding for which it is Trustee at such time, such report to be
transmitted within 90 days after such time. 

        (c)  All
reports required by this Section 8.03, and all other reports or notices which are required by any other provision of this Indenture to be transmitted in
accordance with the provisions of this Section 8.03, shall be transmitted by mail: (i) to all registered Holders, as their names and addresses appear in the Security Register;
(ii) to such Holders of such series as have, within the two years preceding such transmission, filed their names and addresses with the Trustee for that purpose; and (iii) except in the
case of reports pursuant to subsection (b) of this Section 8.03, to all Holders of such series whose names and addresses have been furnished to or received by the Trustee pursuant to
Section 8.01. A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed, with the
Commission and with the Issuer. The Issuer will notify the Trustee when any Securities are listed or delisted from on any stock exchange. 

 
 

ARTICLE NINE    
    
    CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE    
  

SECTION
9.01.    Merger, Consolidation, etc. Only on Certain Terms.    

        Neither
the Issuer nor Trinity shall consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person,
unless: 

        (1)  the
Issuer or Trinity, as the case may be, shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, the Person formed by such consolidation or into which the Issuer or Trinity, as the case may be, is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Issuer or Trinity, as the case may be, substantially as an entirety shall be a Person organized and existing under the laws of the United States of America,
any State thereof or the District of Columbia or, in the case of Trinity, the laws of the United Kingdom and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the Issuer or Trinity, as the case may be, under this Indenture and the Securities and immediately after such transaction no Event
of Default shall have happened or be continuing; and 

        (2)  the
Issuer or Trinity, as the case may be, has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, 

47

 

such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with. 

SECTION
9.02.    Successor Corporation Substituted.    

        Upon
any consolidation by the Issuer or Trinity, as the case may be, with or merger by the Issuer or Trinity into any other Person or any conveyance, transfer or lease of the properties
and assets of the Issuer or Trinity substantially as an entirety in accordance with Section 9.01, the successor Person formed by such consolidation or into which the Issuer or Trinity is merged
or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer or Trinity, as the case may be, under this
Indenture with the same effect as if such successor Person had been named as the Issuer or Trinity herein, and thereafter, except in the case of a lease, the predecessor corporation shall be relieved
of all obligations and covenants under this Indenture and the Securities. 

 
 

ARTICLE TEN    
    
    SUPPLEMENTAL INDENTURES    
  

SECTION
10.01.    Supplemental Indentures without Consent of Holders.    

        Without
the consent of any Holders, the Issuer and each Guarantor, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 

        (1)  to
evidence the succession of another Person to the Issuer or any Guarantor and the assumption by any such successor of the covenants of the Issuer or any Guarantor
herein and in the Securities (pursuant to Article Nine, if applicable); or 

        (2)  to
add to the covenants of the Issuer or any Guarantor for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit
of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the
Issuer or any Guarantor; or 

        (3)  to
add any additional Events of Default (and if such Events of Default are to be applicable to less than all series of Securities, stating that such Events of Default
are expressly being included solely to be applicable to such series); or 

        (4)  to
add to or change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form,
registrable or not registrable as to principal, and with or without interest coupons, or to provide for uncertificated Securities (so long as any "registration-required obligation" within the meaning
of section 163(f)(2) of the Internal Revenue Code of 1986, as amended, is in registered form for purposes of such section); or 

        (5)  to
change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall become effective only when there is no Security
Outstanding of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision; or 

        (6)  to
secure the Securities; or 

        (7)  to
establish the form or terms of Securities of any series as permitted by Sections 2.01 and 3.01; or 

        (8)  to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change
any of the 

48

 

provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 7.11(b); or 

        (9)  to
cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, to eliminate any conflict between the
terms hereof and the Trust Indenture Act or to make any other provision with respect to matters or questions arising under this Indenture, provided such action shall not adversely affect the interests
of the Holders of Securities of any series in any material respect. 

SECTION
10.02.    Supplemental Indentures with Consent of Holders.    

        With
the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Issuer and the Trustee, the Issuer and each Guarantor each when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provision to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of
such series
under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby, 

        (1)  change
the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 6.02, or adversely affect any right of repayment at the option of the Holder of any Security, or reduce the amount of, or postpone the
date fixed for, the payment of any sinking fund or analogous obligation, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), in each case other than the amendment or waiver in accordance with the terms of this Indenture of any covenant or related definition included
pursuant to Section 3.01 that provides for an offer to repurchase any Securities of a series upon a sale of assets or change of control transaction, or 

        (2)  reduce
the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture,
or 

        (3)  modify
any of the provisions of this Section, Section 6.13 or Section 11.07, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby. 

A
supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of
Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of
the Holders of Securities of any other series. 

        It
shall not be necessary for any Act of the Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof. 

49

 

SECTION
10.03.    Execution of Supplemental Indentures.    

        In
executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Officers' Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee in its sole discretion may, but shall not be obligated to, enter into any such supplemental indenture which adversely affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise. 

SECTION
10.04.    Effect of Supplemental Indentures.    

        Upon
the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

SECTION
10.05.    Conformity with Trust Indenture Act.    

        Every
supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 

SECTION
10.06.    Reference in Securities to Supplemental Indentures.    

        Securities
of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation
in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Issuer shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the Trustee in exchange for Outstanding Securities of
such series. 

SECTION
10.07.    Notice of Supplemental Indenture.    

        Promptly
after the execution by the Issuer, each Guarantor and the Trustee of any supplemental indenture pursuant to Section 10.02, the Issuer shall transmit, in the manner and to
the extent provided in Section 1.05, to all Holders of any series of the Securities affected thereby, a notice setting forth in general terms the substance of such supplemental indenture. 

50

  

 
 

ARTICLE ELEVEN    
    
    COVENANTS    
  

SECTION
11.01.    Payment of Principal, Premium and Interest.    

        The
Issuer covenants and agrees for the benefit of the Holders of Securities of each series that it will duly and punctually pay the principal of (and premium, if any) and interest, if
any, on the Securities of that series in accordance with the terms of the Securities of that series and this Indenture. 

SECTION
11.02.    Maintenance of Office or Agency.    

        The
Issuer will maintain in each Place of Payment for any series of Securities an office or agency where Securities of that series may be surrendered for registration of transfer and
exchange, where notices and demands to or upon the Issuer in respect of the Securities of that series and this Indenture may be served and where the Securities may be presented for payment. The Issuer
will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuer shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the
Issuer hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 

        The
Issuer may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the
Issuer of its obligation to maintain an office or agency in each Place of Payment for Securities of any series for such purposes. The Issuer will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

SECTION
11.03.    Money for Securities Payments to Be Held in Trust.    

        If
the Issuer or any Guarantor shall at any time act as Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if
any) or interest, if any, on the Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium,
if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act or
of any failure by the Issuer or any Guarantor (or by any other obligor on the Securities of that series) to make any payment of the principal of (and premium, if any) or interest, if any, on the
Securities of such series when the same shall be due and payable. 

        Whenever
the Issuer shall have one or more Paying Agents for any series of Securities, it will, at or prior to the opening of business on each due date of the principal of (and premium,
if any) or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest, if any, so becoming due, such sum to be held
in trust for the benefit of the Persons entitled to such principal (and premium, if any) or interest, and (unless such Paying Agent is the Trustee) the Issuer will promptly notify the Trustee of its
action or failure so to act. 

        If
the Issuer shall appoint a Paying Agent other than the Trustee for any series of Securities, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in
which such Paying 

51

 

Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 

        (1)  hold
all sums held by it for the payment of the principal of (and premium, if any) or interest, if any, on the Securities of that series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 

        (2)  give
the Trustee notice of any default by the Issuer or any Guarantor (or any other obligor upon the Securities of that series) in the making of any payment of principal
(and premium, if any) or interest, if any, on the Securities of that series; and 

        (3)  at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
Agent. 

        The
Issuer may at any time, for the purpose of obtaining the satisfaction and discharge with respect to one or more or all series of Securities hereunder or for any other reason, pay or
by Issuer Order direct any Paying Agent to pay, to the Trustee all sums held in trust for any such series by the Issuer, any Guarantor or such Paying Agent, such sums to be held by the Trustee upon
the same trusts as those upon which such sums were held by the Issuer, any Guarantor or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money. 

        Any
money deposited with the Trustee or any Paying Agent, or then held by the Issuer or any Guarantor in trust for the payment of the principal of (and premium, if any) or interest on
any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Issuer or any Guarantor on
Issuer Request subject to applicable abandoned property and escheat law, or (if then held by the Issuer or any Guarantor) shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Issuer or any such Guarantor for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Issuer or any such Guarantor as trustee thereof, shall thereupon cease; provided,  however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Issuer cause to be published
once a week for two consecutive weeks (in each case on any day of the week) in an Authorized Newspaper notice that such money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer. 

SECTION
11.04.    Corporate Existence.    

        Subject
to Article Nine, the Issuer will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence. 

SECTION
11.05.    Payment of Taxes and Other Claims.    

        Trinity
will, and will cause each Restricted Subsidiary to, pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments
and governmental charges levied or imposed upon Trinity or any Restricted Subsidiary or upon the income, profits or property of Trinity or any Restricted Subsidiary, and (2) all lawful claims
for labor, materials and supplies which, if unpaid, might by law become a lien upon the property of Trinity or any Restricted Subsidiary; provided,  however,
 that none of Trinity nor any Restricted Subsidiary shall be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 

52

 

SECTION
11.06.    Maintenance of Properties.    

        Trinity
will cause all its properties used or useful in the conduct of its business to be maintained and kept in reasonably good condition, repair and working order and supplied with all
necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of Trinity may be necessary so that the
business carried on in connection therewith may be properly conducted at all times; provided, however,
that nothing in this Section shall prevent Trinity from discontinuing the operation or maintenance of any of its properties if such discontinuance is, in the judgment of Trinity desirable in the
conduct of its business and not disadvantageous in any material respect to the Holders of the Securities of any series. 

SECTION
11.07.    Waiver of Certain Covenants.    

        The
Issuer or Trinity may omit in any particular instance to comply with any term, provision or condition set forth in Sections 11.04, 11.05 and 11.06 or established pursuant to
Section 3.01 or 10.01, with respect to the Securities of any series, if before the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Securities
of such series shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or
affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Issuer or Trinity and the duties of the Trustee
in respect of any such term, provision or condition shall remain in full force and effect. 

SECTION
11.08.    Statement by Officers as to Default.    

        (a)  The
Issuer will, within 120 days after the close of each fiscal year, commencing with the first fiscal year following the issuance of Securities of any series
under this Indenture, file with the Trustee a certificate of the principal executive officer, the principal financial officer or the principal accounting officer of the Issuer, covering the period
from the date of issuance of such Securities to the end of the fiscal year in which such Securities were issued, in the case of the first such certificate, and covering the preceding fiscal year in
the case of each subsequent certificate, and stating whether or not, to the knowledge of the signer, the Issuer has complied with all conditions and covenants on its part contained in this Indenture,
and, if the signer has obtained knowledge of any default by the Issuer in the performance, observance or fulfillment of any such condition or covenant, specifying each such default and the nature
thereof. For the purpose of this Section 11.08, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture. 

        (b)  Trinity
will, within 120 days after the close of each fiscal year, commencing with the first fiscal year following the issuance of Securities of any series under
this Indenture, file with the Trustee a certificate
of the principal executive officer, the principal financial officer or the principal accounting officer of Trinity, covering the period from the date of issuance of such Securities to the end of the
fiscal year in which such Securities were issued, in the case of the first such certificate, and covering the preceding fiscal year in the case of each subsequent certificate, and stating whether or
not, to the knowledge of the signer, Trinity has complied with all conditions and covenants on its part contained in this Indenture, and, if the signer has obtained knowledge of any default by Trinity
in the performance, observance or fulfillment of any such condition or covenant, specifying each such default and the nature thereof. For the purpose of this Section 11.08, compliance shall be
determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture. 

53

 

SECTION
11.09.    Reports by Parent Guarantor.    

        The
Parent Guarantor shall: 

        (1)  file
with the Trustee, within 15 days after the Parent Guarantor is required to file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Parent Guarantor may
be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the Parent Guarantor is not required to file information,
documents or reports pursuant to either of said Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a
security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; 

        (2)  file
with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents
and reports with respect to compliance by the Parent Guarantor with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and 

        (3)  transmit
by mail to all Holders, as their names and addresses appear in the Security Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the Parent Guarantor pursuant to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission. 

SECTION
11.10.    Further Assurances.    

        From
time to time whenever reasonably demanded by the Trustee, Trinity and Issuer will make, execute and deliver or cause to be made, executed and delivered any and all such further and
other instruments and assurances as may be reasonably necessary or proper to carry out the intention or facilitate the performance of the terms of this Indenture. 

 
 

ARTICLE TWELVE    
    
    REDEMPTION OF SECURITIES    
  

SECTION
12.01.    Applicability of Article.    

        Securities
of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by
Section 3.01 for Securities of any series) in accordance with this Article. 

SECTION
12.02.    Election to Redeem; Notice to Trustee.    

        The
election of the Issuer to redeem any Securities shall be evidenced by a Board Resolution. In case of any redemption at the election of the Issuer of less than all the Securities of
any series, the Issuer shall, at least 45 days prior to the Redemption Date fixed by the Issuer (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Issuer shall furnish the Trustee with an Officers' Certificate evidencing compliance with such restriction. 

54

 

SECTION
12.03.    Selection by Trustee of Securities to Be Redeemed.    

        If
less than all the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected not more than 45 days prior to the Redemption Date by
the Trustee, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate, provided, that if at the time of
redemption such Securities are registered as a Global Security, the Depository shall determine, in accordance with its procedures, the principal amount of such Securities held by each Security
Beneficial Owner to be redeemed, and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple
thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series;  provided, however, that Securities of such series registered in the name of the Issuer shall be excluded
from any such selection for redemption until all Securities of such series not so registered shall have been previously selected for redemption. 

        The
Trustee shall promptly notify the Issuer in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed. 

        For
all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or
to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 

SECTION
12.04.    Notice of Redemption.    

        Notice
of redemption shall be given not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed. 

        All
notices of redemption shall identify the Securities to be redeemed (including CUSIP numbers) and shall state: 

        (1)  the
Redemption Date, 

        (2)  the
Redemption Price, 

        (3)  if
less than all the Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the
particular Securities to be redeemed, 

        (4)  that
on the Redemption Date the Redemption Price will become due and payable upon each such Security to be redeemed and, if applicable, that interest thereon will cease
to accrue on and after said date, 

        (5)  that
interest, if any, accrued to the date fixed for redemption will be paid as specified in said notice, 

        (6)  the
place or places where such Securities are to be surrendered for payment of the Redemption Price, and 

        (7)  that
the redemption is for a sinking fund, if such is the case. 

        Notice
of redemption of Securities to be redeemed at the election of the Issuer shall be given by the Issuer or, at the Issuer's request, by the Trustee in the name and at the expense of
the Issuer. No such notice shall be given at any time when the Issuer or the Trustee shall have received notice that there exists a default specified in the first paragraph of Section 4.03 or
that such a default will exist at the date fixed for such redemption or as a result of such redemption. 

55

 

SECTION
12.05.    Deposit of Redemption Price.    

        On
or prior to 10:00 a.m. New York City time on any Redemption Date, the Issuer shall deposit with the Trustee or with a Paying Agent (or, if the Issuer or any Guarantor is acting
as Paying Agent, segregate and hold in trust as provided in Section 11.03) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, all the Securities which are to be redeemed on that date. 

SECTION
12.06.    Securities Payable on Redemption Date.    

        Notice
of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Issuer shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Issuer at the Redemption Price, together with accrued interest to the Redemption Date,  provided, however, that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates according to their terms and the provisions of Section 3.07. 

        If
any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption
Date at the rate prescribed therefor in the Security. 

SECTION
12.07.    Securities Redeemed in Part.    

        Any
Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Issuer or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Issuer and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Issuer shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series, of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the security so surrendered. Securities in denominations larger than $1,000 may be
redeemed in part, but only in whole multiples of $1,000. 

SECTION
12.08.    Securities No Longer Outstanding After Notice to Trustee and Deposit of Cash.    

        If
the Issuer, having given notice to the Trustee as provided in Section 12.02, shall have deposited with the Trustee or a Paying Agent, for the benefit of the Holders of any
Securities of any series or portions thereof called for redemption in whole or in part cash or other form of payment if permitted by the terms of such Securities (which amount shall be immediately due
and payable to the Holders of such Securities or portions thereof), in the amount necessary so to redeem all such Securities or portions thereof on the Redemption Date and provision satisfactory to
the Trustee shall have been made for the giving of notice of such redemption, such Securities or portions thereof, shall thereupon, for all purposes of this Indenture, be deemed to be no longer
Outstanding, and the Holders thereof shall be entitled to no rights thereunder or hereunder, except the right to receive payment of the Redemption Price, together with interest accrued to the
Redemption Date, on or after the Redemption Date of such Securities or portions thereof. 

56

 

 
 

ARTICLE THIRTEEN    
    
    SINKING FUNDS    
  

SECTION
13.01.    Applicability of Article.    

        The
provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 3.01
for Securities of such series. 

        The
minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment," and any payment in
excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment." If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 13.02. Each sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series. 

SECTION
13.02.    Satisfaction of Sinking Fund Payments with Securities.    

        The
Issuer (1) may deliver Outstanding Securities of a series (other than any previously called for redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Issuer pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as
provided for by the terms of such series; provided that such Securities have not been previously so credited pursuant to the terms of such Securities.
Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly. 

SECTION
13.03.    Redemption of Securities for Sinking Fund.    

        Not
less than 45 days prior to each sinking fund payment date for any series of Securities, the Issuer will deliver to the Trustee an Officers' Certificate specifying the amount
of the next ensuing sinking
fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 13.02 and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each
such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 12.03 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Issuer in the manner provided in Section 12.04. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 12.06 and 12.07. 

 
 

ARTICLE FOURTEEN    
    
    IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
  OFFICERS AND DIRECTORS    
  

SECTION
14.01.    Exemption from Individual Liability.    

        No
recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had
against any incorporator, stockholder, officer or director, as such, past, present or future, of the Issuer, any Guarantor or of any successor Person, either directly or through the Issuer or any
Guarantor, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the
obligations issued hereunder are solely corporate obligations of the Issuer or any Guarantor, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers or directors, as such, of the Issuer, any Guarantor or of any successor Person, or any of them, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or 

57

 

agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability, either at common law or in equity or by constitution or statute,
of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director, as such, because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issuance of the Securities. 

 
 

ARTICLE FIFTEEN    
  
  MEETINGS OF HOLDERS OF SECURITIES    
  

SECTION
15.01.    Purposes of Meetings.    

        A
meeting of Holders of Securities of all or any series may be called at any time and from time to time pursuant to the provisions of this Article for any of the following purposes: 

        (1)  to
give any notice to the Issuer, any Guarantor or to the Trustee, or to give any directions to the Trustee, or to waive any default hereunder and its consequences, or
to take any other action authorized to be taken by the Holders of Securities pursuant to any of the provisions of Article Six; 

        (2)  to
remove the Trustee and appoint a successor Trustee pursuant to the provisions of Article Seven; 

        (3)  to
consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.02; or 

        (4)  to
take any other action authorized to be taken by or on behalf of the Holders of any specified percentage in aggregate principal amount of the Securities of all or any
series, as the case may be, under any other provision of this Indenture or under applicable law. 

SECTION
15.02.    Call of Meetings by Trustee.    

        The
Trustee may at any time call a meeting of Holders of Securities of all or any series to take any action specified in Section 15.01, to be held at such time and at such place
in the Borough of Manhattan, The City of New York, as the Trustee shall determine. Notice of every meeting of the Holders of Securities of all or any series, setting forth the time and place of such
meeting and in general terms the action proposed to be taken at such meeting, shall be given to all Holders of Securities of each series that may be affected by the action proposed to be taken at such
meeting by publication at least twice in an Authorized Newspaper prior to the date fixed for the meeting, the first publication to be not less than 20 nor more than 180 days prior to the date
fixed for the meeting, and the last publication to be not more than five days prior to the date fixed for the meeting, or such notice may be given to Holders by mailing the same by first class mail,
postage prepaid, to the Holders of Securities at the time Outstanding, at their addresses as they shall appear in the Security Register, not less than 20 nor more than 60 days prior to the date
fixed for the meeting. Failure to receive such notice or any defect therein shall in no case affect the validity of any action taken at such meeting. Any meeting of Holders of Securities of all or any
series shall be valid without notice if the Holders of all such Securities Outstanding, the Issuer and the Trustee are present in person or by proxy or shall have waived notice thereof before or after
the meeting. 

58

  

SECTION 15.03.    Call of Meetings by Issuer or Holders.    

        In
case at any time the Issuer or the Parent Guarantor, in each case by Board Resolution, or the Holders of at least 10% in aggregate principal amount of the Securities then Outstanding
of each series that may be affected by the action proposed to be taken at the meeting shall have requested the Trustee to call a meeting of Holders of Securities of all series that may be so affected
to take any action authorized in Section 15.01 by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed or
made the first publication of the notice of such meeting within 30 days after receipt of such request, then the Issuer or the Holders in the amount above specified may determine the time and
the place in the Borough of Manhattan, The City of New York for such meeting and may call such meeting by mailing or publishing notice thereof as provided in Section 15.02. 

SECTION
15.04.    Qualification for Voting.    

        To
be entitled to vote at any meeting of Holders a Person shall (a) be a Holder of one or more Securities of a series affected by the action proposed to be taken, or (b) be
a Person appointed by an instrument in writing as proxy by the Holder of one or more such Securities. The right of Holders to have their votes counted shall be subject to the proviso in the definition
of "Outstanding" in Section 1.01. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Issuer and its counsel. 

SECTION
15.05.    Quorum; Adjourned Meetings.    

        At
any meeting of Holders, the presence of Persons holding or representing Securities in an aggregate principal amount sufficient to take action on the business for the transaction of
which such meeting was called shall be necessary to constitute a quorum. No business shall be transacted in the absence of a quorum unless a quorum is represented when the meeting is called to order.
In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of the Holders of Securities (as provided in
Section 15.03), be dissolved. In any other case the Persons holding or representing a majority in aggregate principal amount of the Securities represented at the meeting may adjourn such a
meeting for a period of not less than 10 days with the same effect, for all intents and purposes, as though a quorum had been present. In the absence of a
quorum at any such adjourned meeting, such adjourned meeting may be similarly further adjourned for a period of not less than 10 days. Notice of the reconvening of any adjourned meeting shall
be given as provided in Section 15.02 except that, in the case of publication, such notice need be published only once but must be given not less than five days prior to the date on which the
meeting is scheduled to be reconvened, and in the case of mailing, such notice may be mailed not less than five days prior to such date. 

        Any
Holder of a Security who has executed an instrument in writing complying with the provisions of Section 1.04 shall be deemed to be present for the purposes of determining a
quorum and be deemed to have voted; provided, however, that such Holder shall be considered as present or voting only with respect to the matters
covered by such instrument in writing. 

        Any
resolution passed or decision taken at any meeting of the Holders of Securities of any series duly held in accordance with this Section shall be binding on all Holders of such series
of Securities whether or not present or represented at the meeting. 

SECTION
15.06.    Regulations.    

        Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of Securities, in regard to
proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment and duties 

59

 

of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think
fit. 

        The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Issuer or by Holders of Securities as
provided in Section 15.03, in which case the Issuer or the Holders of Securities calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman
and a permanent secretary of the meeting shall be elected by vote of the Holders of a majority in principal amount of the Securities represented at the meeting. 

        At
any meeting each Holder of a Security of a series entitled to vote at such meeting, or proxy therefor, shall be entitled to one vote for each $1,000 principal amount (in the case of
Original Issue Discount Securities, such principal amount to be determined as provided in the definition of "Outstanding") of Securities of such series held or represented by him;  provided, however,
that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the
chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote except as a Holder of Securities of such series or proxy therefor. Any meeting of Holders of
Securities duly called pursuant to the provisions of Section 15.02 or 15.03 at which a quorum
is present may be adjourned from time to time, and the meeting may be held as so adjourned without further notice. 

SECTION
15.07.    Voting Procedure.    

        The
vote upon any resolution submitted to any meeting of Holders shall be by written ballot on which shall be subscribed the signatures of the Holders of Securities entitled to vote at
such meeting, or proxies therefor, and on which shall be inscribed an identifying number or numbers or to which shall be attached a list of identifying numbers of the Securities so held or represented
by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders of Securities shall be
prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more
Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed or published as provided in Section 15.02 and, if applicable,
Section 15.05. The record shall be signed and verified by the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Issuer and the other to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 

        Any
record so signed and verified shall be conclusive evidence of the matters therein stated. 

SECTION
15.08.    Written Consent in Lieu of Meetings.    

        The
written authorization or consent by the Holders of the requisite percentage in aggregate principal amount of Securities of any series herein provided, entitled to vote at any such
meeting, evidenced as provided in Section 1.04 and filed with the Trustee, shall be effective in lieu of a meeting of the Holders of Securities of such series, with respect to any matter
provided for in this Article Fifteen. 

SECTION
15.09.    No Delay of Rights by Meeting.    

        Nothing
contained in this Article shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders of Securities of any or all series or any rights
expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights 

60

 

conferred upon or reserved to the Trustee or the Holders of Securities of any or all such series under any provisions of this Indenture or the Securities. 

 
 

ARTICLE SIXTEEN    
    
    GUARANTEE OF SECURITIES    
  

SECTION
16.01.    Guarantee.    

        Except
as otherwise set forth in a Board Resolution, Officers' Certificate or supplemental indenture establishing a series of Securities and subject to the provisions of this Article
Sixteen, each Guarantor hereby jointly and severally unconditionally and irrevocably guarantees, as a primary obligor and not merely as a surety, to each Holder and to the Trustee and its successors
and assigns (a) the full and punctual payment of principal of and interest on and liquidated damages in respect of the Securities of each series when due, whether on the Stated Maturity, by
acceleration, by redemption or otherwise, and all other monetary obligations of the Issuer under this Indenture (including obligations to the Trustee) and the Securities and (b) the full and
punctual performance within applicable grace periods of all other obligations of the Issuer whether for expenses, indemnification or otherwise under this Indenture and the Securities of each series
(all the foregoing being hereinafter collectively called the "Guaranteed Obligations"). Each Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part,
without notice or further assent from each such Guarantor, and that each such Guarantor shall remain bound under this Article Sixteen notwithstanding any extension or renewal of any Guaranteed
Obligation. 

        Each
Guarantor waives (to the extent that it may lawfully do so) (a) presentation to, demand of, payment from and protest to the Issuer of any of the Guaranteed Obligations,
(b) notice of protest for nonpayment and (c) notice of any default under Securities of any series or the Guaranteed Obligations. The obligations of each Guarantor hereunder shall not be
affected by (i) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Issuer or any other Person under this Indenture, the
Securities of any series or any other agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Securities of any series or any other agreement relating to this Indenture or the Securities; (iv) the release of any security held by any Holder or the
Trustee for the Guaranteed Obligations or any of them; (v) the failure of any Holder or the Trustee to exercise any right or remedy against any other guarantor of the Guaranteed Obligations; or
(vi) any change in the ownership of such Guarantor, except as provided in Section 16.02(b). 

        Each
Guarantor hereby waives (to the extent that it may lawfully do so) (x) any right to which it may be entitled to have its obligations hereunder divided among the Guarantors,
such that such Guarantor's obligations would be less than the full amount claimed, (y) any right to which it may be entitled to have the assets of the Issuer first be used and depleted as
payment of the Issuer's or such Guarantor's obligations hereunder prior to any amounts being claimed from or paid by such Guarantor hereunder
and (z) any right to which it may be entitled to require that the Issuer be sued prior to an action being initiated against such Guarantor. 

        Each
Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment, performance and compliance when due (and not a guarantee of collection) and waives (to the
extent that it may lawfully do so) any right to require that any resort be had by any Holder or the Trustee to any security held for payment of the Guaranteed Obligations. 

        The
Guarantee of each Guarantor is, to the extent and in the manner set forth in Section 4.01(b), subordinated and subject in right of payment to the prior payment in full of the
principal of and premium, if any, and interest on all Senior Indebtedness of the relevant Guarantor and is made subject to such provisions of this Indenture. 

61

 

        Except
as expressly set forth in Sections 5.02 and 16.02, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason
of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor herein shall not be
discharged or impaired or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the Securities of any series or
any other agreement relating to this Indenture or the Securities, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the
obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Guarantor or would otherwise operate
as a discharge of any Guarantor as a matter of law or equity. 

        Each
Guarantor agrees that its Guarantee shall remain in full force and effect until payment in full of all the Guaranteed Obligations. Each Guarantor further agrees that its Guarantee
herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or interest on any Guaranteed Obligation is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or reorganization of the Issuer or otherwise. 

        In
furtherance of the foregoing and not in limitation of any other right which any Holder or the Trustee has at law or in equity against any Guarantor by virtue hereof, upon the failure
of the Issuer to pay the principal of or interest on any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or
comply with any other Guaranteed Obligation, each Guarantor hereby promises to and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or
the Trustee an amount equal to the sum of (i) the unpaid principal amount of such Guaranteed Obligations, (ii) accrued
and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by law) and (iii) all other monetary obligations of the Issuer to the Holders and the Trustee. 

        Each
Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Guaranteed Obligations guaranteed hereby until payment in
full of all Guaranteed Obligations and all obligations to which the Guaranteed Obligations are subordinated pursuant to Section 4.01(b). Each Guarantor further agrees that, as between it, on
the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as provided in Article Six for the purposes
of any Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (y) in the event
of any declaration of acceleration of such Guaranteed Obligations as provided in Article Six, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by
such Guarantor for the purposes of this Section 16.01. 

        Each
Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys' fees and expenses) incurred by the Trustee or any Holder in enforcing any rights under
this Section 16.01. 

SECTION
16.02.    Limitation on Liability.    

        (a)  Any
term or provision of this Indenture to the contrary notwithstanding, the maximum, aggregate amount of the Guaranteed Obligations guaranteed hereunder by any
Guarantor shall not exceed the maximum amount that can be hereby guaranteed without rendering this Indenture, as it relates to such Guarantor, voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. 

62

 

        (b)  This
Guarantee as to any Guarantor shall terminate and be of no further force or effect and such Guarantor shall be deemed to be released from all obligations under this
Article Sixteen and Section 9.02 upon (i) the merger or consolidation of such Guarantor with or into any Person other than the Issuer or a Subsidiary or Affiliate of the Issuer where
such Guarantor is not the surviving entity of such consolidation or merger or (ii) the sale, exchange or transfer to any Person not an Affiliate of the Issuer of all the Capital Stock in, or
all or substantially all the assets of, such Guarantor. This Guarantee also shall be automatically released upon the release or discharge of the Indebtedness that results in the creation of such
Guarantee, as the case may be. At the request of the Issuer, the Trustee shall execute and deliver an appropriate instrument evidencing such release. 

SECTION
16.03.    Successors and Assigns.    

        This
Article Sixteen shall be binding upon each Guarantor and its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Securities of any series shall
automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture. 

SECTION
16.04.    No Waiver.    

        Neither
a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article Sixteen shall operate as a waiver thereof,
nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein
expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article Sixteen at law, in equity, by statute or otherwise. 

SECTION
16.05.    Modification.    

        No
modification, amendment or waiver of any provision of this Article Sixteen, nor the consent to any departure by any Guarantor therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on any
Guarantor in any case shall entitle such Guarantor to any other or further notice or demand in the same, similar or other circumstances. 

 
 

ARTICLE SEVENTEEN    
    
    MISCELLANEOUS    
  

SECTION
17.01.    Counterparts.    

        This
instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one
and the same instrument. 

        CITIBANK,
N.A. hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions hereinabove set forth. 

63

 
 
 

SIGNATURES    
  

        IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the date first written above. 

	 	 	WILLIS NORTH AMERICA INC.
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

WILLIS GROUP HOLDINGS LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

TA I LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

TA II LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

TA III LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

TRINITY ACQUISITION LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 

64

 

	

 	
 	

TA IV LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

WILLIS GROUP LIMITED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

WILLIS PARTNERS
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

    	
 	

 	

 	

 
	

 	
 	

CITIBANK, N.A., as Trustee
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

65

QuickLinks

Exhibit 4.19

Table of Contents

Reconciliation and Tie between Indenture, dated as of and Trust Indenture Act of 1939, as amended

RECITALS OF THE ISSUER

ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

ARTICLE TWO SECURITY FORMS

ARTICLE THREE THE SECURITIES

ARTICLE FOUR SUBORDINATION OF SECURITIES

ARTICLE FIVE SATISFACTION AND DISCHARGE; DEFEASANCE

ARTICLE SIX REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT

ARTICLE SEVEN THE TRUSTEE

ARTICLE EIGHT HOLDERS' LISTS AND REPORTS BY TRUSTEE AND ISSUER

ARTICLE NINE CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

ARTICLE TEN SUPPLEMENTAL INDENTURES

ARTICLE ELEVEN COVENANTS

ARTICLE TWELVE REDEMPTION OF SECURITIES

ARTICLE THIRTEEN SINKING FUNDS

ARTICLE FOURTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES

ARTICLE SIXTEEN GUARANTEE OF SECURITIES

ARTICLE SEVENTEEN MISCELLANEOUS

SIGNATURES<Page>

                                                                  EXECUTION COPY

================================================================================

                                CREDIT AGREEMENT

                                   dated as of

                                 March 27, 2003

                                      among

                         AXIS CAPITAL HOLDINGS LIMITED,

                  The SUBSIDIARY ACCOUNT PARTIES Party Hereto,

                            The LENDERS Party Hereto

                                       and

                              JPMORGAN CHASE BANK,
                             as Administrative Agent

                                  -------------

                                  $550,000,000

                                  -------------

                          J.P. MORGAN SECURITIES INC.,
               as Advisor, Sole Lead Arranger and Sole Bookrunner

                                 CITIBANK, N.A.,
                              THE BANK OF NEW YORK,
                               BARCLAYS BANK PLC,
                        CREDIT LYONNAIS NEW YORK BRANCH,
                          ING BANK N.V., LONDON BRANCH,
                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                               FLEET NATIONAL BANK
                                       and
                              LLOYDS TSB BANK PLC,
                            as Co-Syndication Agents

================================================================================

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                Page
<S>                                                                               <C>
ARTICLE I..........................................................................1

  DEFINITIONS......................................................................1
    SECTION 1.01.  Defined Terms...................................................1
    SECTION 1.02.  Terms Generally................................................14
    SECTION 1.03.  Accounting Terms; GAAP and SAP; Fiscal Year....................14

ARTICLE II........................................................................14

  THE CREDITS.....................................................................14
    SECTION 2.01.  Syndicated Letters of Credit...................................14
    SECTION 2.02.  Issuance and Administration....................................16
    SECTION 2.03.  Reimbursement of LC Disbursements, Etc.........................16
    SECTION 2.04.  Loans and Borrowings...........................................20
    SECTION 2.05.  Requests for Borrowings........................................21
    SECTION 2.06.  Funding of Borrowings..........................................22
    SECTION 2.07.  Interest Elections.............................................22
    SECTION 2.08.  Termination and Reduction of the Commitments...................24
    SECTION 2.09.  Repayment of Loans; Evidence of Debt...........................24
    SECTION 2.10.  Prepayment of Loans............................................25
    SECTION 2.11.  Conversion to Term Loans.......................................26
    SECTION 2.12.  Fees...........................................................27
    SECTION 2.13.  Interest.......................................................28
    SECTION 2.14.  Alternate Rate of Interest.....................................29
    SECTION 2.15.  Increased Costs................................................29
    SECTION 2.16.  Break Funding Payments.........................................30
    SECTION 2.17.  Taxes..........................................................31
    SECTION 2.18.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs....32
    SECTION 2.19.  Mitigation Obligations; Replacement of Lenders.................34

ARTICLE III.......................................................................35

  REPRESENTATIONS AND WARRANTIES..................................................35
    SECTION 3.01.  Organization; Powers...........................................35
    SECTION 3.02.  Authorization; Enforceability..................................35
    SECTION 3.03.  Governmental Approvals; No Conflicts...........................35
    SECTION 3.04.  Financial Condition; No Material Adverse Change................35
    SECTION 3.05.  Properties.....................................................36
    SECTION 3.06.  Litigation and Environmental Matters...........................36
    SECTION 3.07.  Compliance with Laws and Agreements............................37
    SECTION 3.08.  Investment and Holding Company Status..........................37
    SECTION 3.09.  Taxes..........................................................37
    SECTION 3.10.  Pension-Related Matters........................................37
    SECTION 3.11.  Disclosure.....................................................37
</Table>

                                        i
<Page>

<Table>
<S>                                                                               <C>
    SECTION 3.12.  Use of Credit..................................................37
    SECTION 3.13.  Indebtedness and Liens.........................................38
    SECTION 3.14.  Subsidiaries and Investments...................................38
    SECTION 3.15.  Withholding Taxes..............................................38
    SECTION 3.16.  Stamp Taxes....................................................38
    SECTION 3.17.  Legal Form.....................................................39

ARTICLE IV........................................................................39

  CONDITIONS......................................................................39
    SECTION 4.01.  Effective Date.................................................39
    SECTION 4.02.  Each Credit Event..............................................40

ARTICLE V.........................................................................41

  AFFIRMATIVE COVENANTS...........................................................41
    SECTION 5.01.  Financial Statements and Other Information.....................41
    SECTION 5.02.  Notices of Material Events.....................................43
    SECTION 5.03.  Existence; Conduct of Business.................................43
    SECTION 5.04.  Insurance......................................................43
    SECTION 5.05.  Maintenance of Properties......................................43
    SECTION 5.06.  Payment of Obligations.........................................43
    SECTION 5.07.  Financial Accounting Practices.................................44
    SECTION 5.08.  Compliance with Applicable Laws................................44
    SECTION 5.09.  Use of Syndicated Letters of Credit and Proceeds of Loans......44
    SECTION 5.10.  Inspection Rights..............................................45
    SECTION 5.11.  Financial Strength Rating......................................45

ARTICLE VI........................................................................45

  NEGATIVE COVENANTS..............................................................45
    SECTION 6.01.  Fundamental Changes............................................45
    SECTION 6.02.  Liens..........................................................46
    SECTION 6.03.  Transactions with Affiliates...................................47
    SECTION 6.04.  Financial Covenants............................................47
    SECTION 6.05.  Indebtedness...................................................47
    SECTION 6.06.  Investments....................................................48
    SECTION 6.07.  Restricted Payments............................................49
    SECTION 6.08.  Continuation of and Change in Businesses.......................49
    SECTION 6.09.  Private Act....................................................49

ARTICLE VII.......................................................................49

  EVENTS OF DEFAULT...............................................................49

ARTICLE VIII......................................................................52

  THE ADMINISTRATIVE AGENT........................................................52

ARTICLE IX........................................................................54

  GUARANTEE.......................................................................54
    SECTION 9.01.  The Guarantee..................................................54
    SECTION 9.02.  Obligations Unconditional......................................54
</Table>

                                       ii
<Page>

<Table>
<S>                                                                               <C>
    SECTION 9.03.  Reinstatement..................................................55
    SECTION 9.04.  Subrogation....................................................56
    SECTION 9.05.  Remedies.......................................................56
    SECTION 9.06.  Instrument for the Payment of Money............................56
    SECTION 9.06.  Continuing Guarantee...........................................56

ARTICLE X.........................................................................56

  MISCELLANEOUS...................................................................56
    SECTION 10.01.  Notices.......................................................56
    SECTION 10.02.  Waivers; Amendments...........................................58
    SECTION 10.03.  Expenses; Indemnity; Damage Waiver............................59
    SECTION 10.04.  Successors and Assigns........................................60
    SECTION 10.05.  Survival......................................................63
    SECTION 10.06.  Counterparts; Integration; Effectiveness......................64
    SECTION 10.07.  Severability..................................................64
    SECTION 10.08.  Right of Setoff...............................................64
    SECTION 10.09.  Governing Law; Jurisdiction; Etc..............................64
    SECTION 10.10.  WAIVER OF JURY TRIAL..........................................66
    SECTION 10.11.  Headings......................................................66
    SECTION 10.12.  Treatment of Certain Information; Confidentiality.............67
    SECTION 10.13.  Judgment Currency.............................................67
</Table>

SCHEDULE 1.01(1)  -   Commitments
SCHEDULE 1.01(2)  -   Investment Guidelines
SCHEDULE 3.05(b)  -   Intellectual Property
SCHEDULE 3.06(a)  -   Litigation
SCHEDULE 3.14(a)  -   Subsidiaries
SCHEDULE 6.02     -   Liens
SCHEDULE 6.05     -   Indebtedness
SCHEDULE 6.06     -   Investments

EXHIBIT A         -   Form of Assignment and Assumption
EXHIBIT B         -   Form of Subsidiary Joinder Agreement
EXHIBIT C         -   Form of Process Agent Acceptance Letter
EXHIBIT D         -   Form of Subsidiary Account Party Termination Notice
EXHIBIT E-1       -   Form of Opinion of Conyers Dill & Pearman, Bermuda Counsel
                      to AXIS Holdings
EXHIBIT E-2       -   Form of Opinion of LeBoeuf, Lamb, Greene & MacRae, LLP,
                      New York Counsel to AXIS Holdings
EXHIBIT F         -   Form of Opinion of Special New York Counsel to JPMCB

                                       iii
<Page>

          CREDIT AGREEMENT dated as of March 27, 2003, among AXIS CAPITAL
HOLDINGS LIMITED, a Bermuda limited liability corporation, the SUBSIDIARY
ACCOUNT PARTIES party hereto (or that shall become party hereto from time to
time pursuant to Section 2.03(f)), the LENDERS party hereto and JPMORGAN CHASE
BANK, as Administrative Agent.

          AXIS Holdings (as hereinafter defined) has requested that the Lenders
(as so defined) make loans and extend credit to it and certain of its
Subsidiaries in an aggregate principal or face amount not exceeding $550,000,000
at any one time outstanding, and the Lenders are prepared to extend such credit
upon the terms and conditions hereof. Accordingly, the parties hereto agree as
follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.01. DEFINED TERMS. As used in this Agreement, the following
terms have the meanings specified below:

          "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.

          "ACCOUNT PARTY" means any of AXIS Holdings and the Subsidiary Account
Parties, as the context may require, and "ACCOUNT PARTIES" means all of the
foregoing.

          "ACCOUNT PARTY JURISDICTION" means any of (a) the jurisdictions of
organization of the Account Parties and (b) any other country or countries (i)
where an Account Party is licensed or qualified to do business or (ii) from or
through which payments hereunder are made by an Account Party.

          "ADJUSTED LIBO RATE" means, for the Interest Period for any Eurodollar
Borrowing, an interest rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period MULTIPLIED
BY (b) the Statutory Reserve Rate for such Interest Period.

          "ADMINISTRATIVE AGENT" means JPMCB, in its capacity as administrative
agent for the Lenders hereunder.

          "ADMINISTRATIVE QUESTIONNAIRE" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

          "AFFILIATE" means, with respect to a specified Person, another Person
that directly, or indirectly, Controls or is Controlled by or is under common
Control with the Person specified.

                                CREDIT AGREEMENT

<Page>

                                      - 2 -

          "ALTERNATE BASE RATE" means, for any day, a rate per annum equal to
the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate for such day PLUS 1/2 of 1%. Any change in the Alternate
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, as the case may be.

          "APPLICABLE INSURANCE REGULATORY AUTHORITY" means, with respect to any
Insurance Company, the insurance department or similar administrative authority
or agency of the jurisdiction in which such Insurance Company is domiciled.

          "APPLICABLE MARGIN" means, with respect to any Eurodollar Loan, 0.50%
per annum PLUS, with respect to any Eurodollar Loan which has been converted
into a Term Loan pursuant to Section 2.11, 0.25% per annum.

          "APPLICABLE PERCENTAGE" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the total Credit Exposures or, if no Syndicated Letters of
Credit or Loans are outstanding, the Commitments most recently in effect, giving
effect to any assignments.

          "APPROVED FUND" means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

          "ASSIGNMENT AND ASSUMPTION" means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.

          "AVAILABILITY PERIOD" means the period from and including the
Effective Date to but excluding the earlier of the Commitment Termination Date
and the date of termination of the Commitments.

          "AXIS HOLDINGS" means AXIS Capital Holdings Limited, a Bermuda limited
liability corporation.

          "AXIS SPECIALTY" means AXIS Specialty Limited, a Bermuda limited
liability corporation and a wholly-owned Subsidiary.

          "BENEFIT PLAN" means (a) any Plan or (b) any plan, fund (including any
superannuation fund) or other similar program established or maintained outside
the United States by AXIS Holdings or any of its Subsidiaries, with respect to
which AXIS Holdings or such Subsidiary has an obligation to contribute, for the
benefit of employees of AXIS Holdings or such Subsidiary, which plan, fund or
other similar program provides, or results in, the type of benefits described in
Section 3(2) of ERISA and is not subject to ERISA or the Code.

                                CREDIT AGREEMENT

<Page>

                                      - 3 -

          "BOARD" means the Board of Governors of the Federal Reserve System of
the United States of America.

          "BORROWER" means either of AXIS Holdings and AXIS Specialty, as the
context may require, and "BORROWERS" means both of the foregoing.

          "BORROWING" means, with respect to either Borrower, (a) all ABR Loans
of such Borrower made, converted or continued on the same date or (b) all
Eurodollar Loans of such Borrower that have the same Interest Period.

          "BORROWING REQUEST" means a request by a Borrower for a Borrowing
consisting of Revolving Credit Loans in accordance with Section 2.05.

          "BUSINESS DAY" means any day (a) that is not a Saturday, Sunday or
other day on which commercial banks in New York City and Bermuda are authorized
or required by law to remain closed and (b) if such day relates to a borrowing
of, a payment or prepayment of principal of or interest on, a continuation or
conversion of or into, or the Interest Period for, a Eurodollar Borrowing, or to
a notice by a Borrower with respect to any such borrowing, payment, prepayment,
continuation, conversion, or Interest Period, that is also a day on which
dealings in Dollar deposits are carried out in the London interbank market.

          "CAPITAL LEASE OBLIGATIONS" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          "CHANGE IN CONTROL" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934, as amended, and the rules of the
SEC thereunder as in effect on the date hereof), of shares representing more
than 30% of the aggregate ordinary voting power represented by the issued and
outstanding capital stock of AXIS Holdings; (b) occupation of a majority of the
seats (other than vacant seats) on the board of directors of AXIS Holdings by
Persons who were neither (i) nominated by the board of directors of AXIS
Holdings nor (ii) appointed by directors so nominated; or (c) the acquisition of
direct or indirect Control of AXIS Holdings by any Person or group.

          "CHANGE IN LAW" means (a) the adoption of any law, rule or regulation
after the date hereof, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date hereof or (c) compliance by any Lender (or, for purposes of Section
2.15(b), by any lending office of such Lender or by such Lender's holding
company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date
hereof.

          "CODE" means the Internal Revenue Code of 1986, as amended from time
to time.

                                CREDIT AGREEMENT

<Page>

                                      - 4 -

          "COMMITMENT" means, with respect to each Lender, the commitment of
such Lender to issue Syndicated Letters of Credit and to make Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such
Lender's Credit Exposure hereunder. The initial amount of each Lender's
Commitment is set forth on Schedule 1.01(1), or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Commitment, as applicable,
but in each case as such Commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04. The initial
aggregate amount of the Lenders' Commitments is $550,000,000.

          "COMMITMENT TERMINATION DATE" means March 25, 2004.

          "COMMITMENT UTILIZATION DAY" means any day on which the aggregate
outstanding principal amount of Loans shall equal or exceed 50% of the Revolving
Credit Sublimit (whether or not the Commitments shall have terminated on or
prior to such day).

          "CONFIRMING LENDER" means, with respect to any Lender, any other bank
that has agreed, by delivery of an agreement in form and substance satisfactory
to the Administrative Agent, that such other bank will itself honor the
obligations of such Lender in respect of a draft complying with the terms of a
Syndicated Letter of Credit as if, and to the extent, such other bank were the
"Issuing Lender" named in such Syndicated Letter of Credit.

          "CONSOLIDATED NET WORTH" means, at any time, the consolidated
stockholders' equity of AXIS Holdings and its Subsidiaries at such time.

          "CONTROL" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"CONTROLLING" and "CONTROLLED" have meanings correlative thereto.

          "CREDIT DOCUMENTS" means, collectively, (a) this Agreement, (b) the
Letter of Credit Documents and (c) any Subsidiary Joinder Agreements.

          "CREDIT EXPOSURE" means, with respect to any Lender at any time, the
sum of the outstanding principal amount of such Lender's Loans and its LC
Exposure at such time.

          "DEFAULT" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

          "DESIGNATION DATE" has the meaning assigned to such term in Section
2.03(f)(i).

          "DISPOSITION" has the meaning assigned to such term in Section
6.01(c).

          "DOLLARS" or "$" refers to lawful money of the United States of
America.

          "EFFECTIVE DATE" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 10.02).

                                CREDIT AGREEMENT

<Page>

                                      - 5 -

          "ENVIRONMENTAL LAWS" means any Law, whether now existing or
subsequently enacted or amended, relating to (a) pollution or protection of the
environment, including natural resources, (b) exposure of Persons, including but
not limited to employees, to Hazardous Materials, (c) protection of the public
health or welfare from the effects of products, by-products, wastes, emissions,
discharges or releases of Hazardous Materials or (d) regulation of the
manufacture, use or introduction into commerce of Hazardous Materials, including
their manufacture, formulation, packaging, labeling, distribution,
transportation, handling, storage or disposal.

          "ENVIRONMENTAL LIABILITY" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of AXIS Holdings or any Subsidiary resulting from or
based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract or agreement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

          "EQUITY RIGHTS" means, with respect to any Person, any subscriptions,
options, warrants, commitments, preemptive rights or agreements of any kind
(including any shareholders' or voting trust agreements) for the issuance, sale,
registration or voting of, or securities convertible into, any additional shares
of capital stock of any class of, or partnership or other ownership interests of
any type in, such Person.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

          "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that, together with AXIS Holdings, is treated as a single employer
under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

          "ERISA EVENT" means (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by AXIS Holdings or any ERISA Affiliate of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by AXIS Holdings or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by AXIS
Holdings or any ERISA Affiliate of any liability with respect to the withdrawal
or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by
AXIS Holdings or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from AXIS Holdings or any ERISA Affiliate of any notice,
concerning the imposition of

                                CREDIT AGREEMENT

<Page>

                                      - 6 -

Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

          "EURODOLLAR", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

          "EVENT OF DEFAULT" has the meaning assigned to such term in Article
VII.

          "EXCLUDED TAXES" means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of any Account Party hereunder, (a) income or franchise Taxes imposed
on (or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits Taxes imposed by
the United States of America or any similar Tax imposed by any other
jurisdiction in which any Account Party is located or (c) with respect to any
Lender (other than an assignee pursuant to a request by AXIS Holdings pursuant
to Section 2.19(b)) any withholding Tax that (i) is in effect and would apply to
amounts payable to such Lender at the time such Lender becomes a party to this
Agreement (or designates a new lending office), other than any withholding Tax
imposed on any payment to any Lender to the extent such Lender (or its assignee,
as the case may be) was entitled, at the time of designation of a new lending
office (or assignment, as the case may be) to receive additional amounts from
any Account Party with respect to such withholding Tax pursuant to Section
2.17(a) or (ii) is attributable to such Lender's failure or inability to comply
with Section 2.17(e).

          "EXISTING CREDIT AGREEMENTS" means, collectively, (a) the $375,000,000
Credit Agreement dated as of March 28, 2002 among AXIS Specialty, the lenders
party thereto and JPMCB, as administrative agent, and (b) the $25,000,000
Revolving Credit Agreement dated as of March 28, 2002 among AXIS Specialty, the
lenders party thereto and JPMCB, as administrative agent.

          "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

          "FINANCIAL OFFICER" means the chief financial officer, principal
accounting officer, treasurer or controller of AXIS Holdings.

          "GAAP" means generally accepted accounting principles in the United
States of America.

                                CREDIT AGREEMENT

<Page>

                                      - 7 -

          "GOVERNMENTAL AUTHORITY" means the government of the United States of
America, Bermuda or any other nation, or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity (including any federal or other
association of or with which any such nation may be a member or associated)
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

          "GUARANTEE" of or by any Person (the "GUARANTOR") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "PRIMARY OBLIGOR") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
or applicant in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation; PROVIDED that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of
business.

          "GUARANTEED OBLIGATIONS" has the meaning assigned to such term in
Section 9.01.

          "HAZARDOUS MATERIALS" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

          "INDEBTEDNESS" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations, contingent or otherwise, of such Person as an account party or
applicant in respect of letters of credit and letters of guaranty and (j) all
obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor

                                CREDIT AGREEMENT

<Page>

                                      - 8 -

as a result of such Person's ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor.

          "INDEMNIFIED TAXES" means Taxes (including Other Taxes) imposed on the
Administrative Agent or any Lender on or with respect to any payment hereunder
or the execution, delivery or enforcement of, or otherwise with respect to this
Agreement other than Excluded Taxes.

          "INSURANCE COMPANY" means any Subsidiary which is subject to the
regulation of, and is required to file statements with, any governmental body,
agency or official in any jurisdiction which regulates insurance companies or
the doing of an insurance business therein.

          "INTEREST ELECTION REQUEST" means a request by a Borrower to convert
or continue a Borrowing in accordance with Section 2.07.

          "INTEREST PAYMENT DATE" means (a) with respect to any ABR Loan, each
Quarterly Date and (b) with respect to any Eurodollar Loan, the last day of each
Interest Period therefor and, in the case of any Interest Period of more than
three months' duration, each day prior to the last day of such Interest Period
that occurs at three-month intervals after the first day of such Interest
Period.

          "INTEREST PERIOD" means, for any Eurodollar Loan or Borrowing, the
period commencing on the date of such Loan or Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as specified in the applicable Borrowing Request or
Interest Election Request; PROVIDED that (a) if any Interest Period would end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day, and (b) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Loan initially shall be the
date on which such Loan is made and thereafter shall be the effective date of
the most recent conversion or continuation of such Loan, and the date of a
Borrowing comprising Loans that have been converted or continued shall be the
effective date of the most recent conversion or continuation of such Loans.

          "INVESTMENT" means, for any Person: (a) the acquisition (whether for
cash, property, services or securities or otherwise) of capital stock, bonds,
notes, debentures, partnership or other ownership interests or other securities
of any other Person or any agreement to make any such acquisition (including any
"short sale" or any sale of any securities at a time when such securities are
not owned by the Person entering into such sale); (b) the making of any deposit
with, or advance, loan or other extension of credit to, any other Person
(including the purchase of property from another Person subject to an
understanding or agreement, contingent or otherwise, to resell such property to
such Person), but excluding any such advance, loan or extension of credit having
a term not exceeding 90 days arising in connection with the sale of inventory or
supplies by such Person in the ordinary course of business; (c) the entering
into of

                                CREDIT AGREEMENT

<Page>

                                      - 9 -

any Guarantee of, or other contingent obligation with respect to, Indebtedness
or other liability of any other Person (excluding any Guarantee or other
contingent obligation arising in the ordinary course of such Person's business
as a reinsurance company) and (without duplication) any amount committed to be
advanced, lent or extended to such Person; or (d) the entering into of any Swap
Agreement.

          "INVESTMENT GUIDELINES" means, with respect to any Account Party, the
"Statement of Investment Policy and Objectives" of such Account Party (a) as in
effect on the date hereof and set forth in Schedule 1.01(2) or (b) delivered to
the Administrative Agent pursuant to clause (ii) of the last sentence of Section
2.03(f)(i), as applicable, or in either case as may be changed from time to time
by a resolution duly adopted by the board of directors of such Account Party (or
any committee thereof).

          "JPMCB" means JPMorgan Chase Bank.

          "LAW" means any law (including common law), constitution, statute,
treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of
any Governmental Authority.

          "LC DISBURSEMENT" means a payment made by a Lender pursuant to a
Syndicated Letter of Credit.

          "LC EXPOSURE" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Syndicated Letters of Credit at such time PLUS (b) the
aggregate amount of all LC Disbursements under Syndicated Letters of Credit that
have not yet been reimbursed by or on behalf of the Account Parties at such
time. The LC Exposure of any Lender at any time shall be its Applicable
Percentage of the total LC Exposure at such time.

          "LENDERS" means the Persons listed on Schedule 1.01(1) and any other
Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption.

          "LETTER OF CREDIT DOCUMENTS" means, with respect to any Syndicated
Letter of Credit, collectively, any application therefor and any other
agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Syndicated Letter of Credit) governing or
providing for (a) the rights and obligations of the parties concerned or at risk
with respect to such Syndicated Letter of Credit or (b) any collateral security
for any of such obligations, each as the same may be modified and supplemented
and in effect from time to time.

          "LIBO RATE" means, for the Interest Period for any Eurodollar
Borrowing, the rate appearing on Page 3750 of the Telerate Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Person serving as
the Administrative Agent from time to time for purposes of providing quotations
of interest rates applicable to Dollar deposits in the London interbank market)
at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for the offering of Dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the

                                CREDIT AGREEMENT

<Page>

                                     - 10 -

LIBO Rate for such Interest Period shall be the rate at which Dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period.

          "LIEN" means, with respect to any asset, (a) any mortgage, deed of
trust, pledge, lien, hypothecation, security interest, charge or other
encumbrance or security arrangement of any nature whatsoever in, on or of such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.

          "LOANS" means the loans made by the Lenders to the Borrowers pursuant
to Section 2.04.

          "MARGIN STOCK" means "margin stock" within the meaning of Regulations
T, U and X of the Board.

          "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
business, operations, property, condition (financial or otherwise) or prospects
of AXIS Holdings and its Subsidiaries taken as a whole, (b) the ability of any
Account Party to perform any of its obligations under this Agreement or any of
the other Credit Documents or (c) the validity of this Agreement or any of the
other Credit Documents or the rights of or benefits available to the
Administrative Agent and/or the Lenders hereunder or thereunder.

          "MATERIAL INDEBTEDNESS" means Indebtedness (other than the Loans and
Syndicated Letters of Credit), or obligations in respect of one or more Swap
Agreements, of any one or more of AXIS Holdings and its Subsidiaries in an
aggregate principal amount exceeding $25,000,000. For purposes of determining
Material Indebtedness, the "PRINCIPAL AMOUNT" of the obligations of any Person
in respect of any Swap Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that such Person would be
required to pay if such Swap Agreement were terminated at such time.

          "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          "NAIC" means the National Association of Insurance Commissioners.

          "NAIC APPROVED LENDER" means (a) any Lender that is a bank listed on
the most current Bank List of banks approved by the NAIC (the "NAIC LENDER
LIST") or (b) any Lender as to which its Confirming Lender is a bank listed on
the NAIC Lender List.

          "OTHER TAXES" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made under, or from the execution, delivery or enforcement of,
or otherwise with respect to, this Agreement or any other Credit Document.

                                CREDIT AGREEMENT

<Page>

                                     - 11 -

          "PARTICIPANT" has the meaning assigned to such term in Section
10.04(e).

          "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

          "PERMITTED INVESTMENTS" means, with respect to any Account Party,
investments made consistent with, and subject to, the Investment Guidelines of
such Account Party; PROVIDED that the aggregate amount of Permitted Investments
with respect to any Account Party in non-fixed income investments shall not
exceed 10% of the aggregate amount of all Permitted Investments with respect to
such Account Party at any time.

          "PERSON" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

          "PLAN" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which AXIS Holdings
or any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

          "PRIME RATE" means the rate of interest per annum publicly announced
from time to time by JPMCB as its prime rate in effect at its principal office
in New York City; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

          "PRIVATE ACT" means separate legislation enacted in Bermuda with the
intention that such legislation apply specifically to AXIS Holdings, in whole or
in part.

          "QUARTERLY DATES" means the last Business Day of March, June,
September and December in each year, the first of which shall be the first such
day after the date hereof.

          "REGISTER" has the meaning assigned to such term in Section 10.04(c).

          "RELATED PARTIES" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

          "REQUIRED LENDERS" means, at any time, Lenders having Credit Exposures
and unused Commitments representing more than 50% of the sum of the total Credit
Exposures and unused Commitments at such time.

          "RESTRICTED PAYMENT" means any dividend or other distribution (whether
in cash, securities or other property) with respect to any shares of any class
of capital stock of AXIS Holdings or any of its Subsidiaries, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such shares of capital stock of
AXIS Holdings or any option, warrant or other right to acquire any such shares
of capital stock of AXIS Holdings.

                                CREDIT AGREEMENT

<Page>

                                     - 12 -

          "REVOLVING CREDIT LOAN" means a Loan made to a Borrower pursuant to
Section 2.04.

          "REVOLVING CREDIT SUBLIMIT" has the meaning assigned to such term in
Section 2.04(a).

          "SAP" means, as to each Insurance Company, the statutory accounting
practices prescribed or permitted by the Applicable Insurance Regulatory
Authority for the preparation of its financial statements and other reports by
insurance corporations of the same type as such Insurance Company in effect on
the date such statements or reports are to be prepared, except if otherwise
notified by AXIS Holdings pursuant to Section 1.03.

          "SEC" means the United States Securities and Exchange Commission or
any successor entity.

          "STATUTORY RESERVE RATE" means, for the Interest Period for any
Eurodollar Borrowing, a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one MINUS the
arithmetic mean, taken over each day in such Interest Period, of the aggregate
of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to
which the Person serving as the Administrative Agent is subject for eurocurrency
funding (currently referred to as "Eurocurrency liabilities" in Regulation D of
the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation. The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

          "STATUTORY STATEMENT" means, for any Insurance Company, for any fiscal
year of such Insurance Company, the most recent annual statement filed with the
Applicable Insurance Regulatory Authority, which annual statements shall be
prepared in accordance with SAP.

          "SUBSIDIARY" means, with respect to any Person (the "PARENT"), at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or, in the case
of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, controlled or held by the parent or one or more subsidiaries
of the parent or by the parent and one or more subsidiaries of the parent.
Unless otherwise specified, "Subsidiary" means a Subsidiary of AXIS Holdings.

          "SUBSIDIARY ACCOUNT PARTY" means each Subsidiary that is listed under
the caption "Subsidiary Account Parties" on the signature pages hereof and each
other Subsidiary that shall

                                CREDIT AGREEMENT

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                                     - 13 -

become a Subsidiary Account Party pursuant to Section 2.03(f), so long as such
Subsidiary shall remain a Subsidiary Account Party hereunder.

          "SUBSIDIARY JOINDER AGREEMENT" means a Subsidiary Joinder Agreement
entered into by AXIS Holdings and a Subsidiary pursuant to Section 2.03(f),
substantially in the form of Exhibit B or any other form approved by the
Administrative Agent.

          "SWAP AGREEMENT" means any agreement with respect to any swap,
forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; PROVIDED that
no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of AXIS Holdings or its Subsidiaries shall be a Swap Agreement.

          "SYNDICATED LETTERS OF CREDIT" means letters of credit issued pursuant
to Section 2.01.

          "TAXES" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          "TERM LOAN" means a Loan that has been converted into a Term Loan
pursuant to Section 2.11.

          "TERM LOAN MATURITY DATE" means the first anniversary of the
Commitment Termination Date, or, if such day is not a Business Day, the next
succeeding Business Day unless such Business Day falls in another calendar
month, in which case the Term Loan Maturity Date shall be the next preceding
Business Day.

          "TERM LOAN NOTICE" has the meaning assigned to such term in Section
2.11(a).

          "TOTAL FUNDED DEBT" means, at any time, all Indebtedness of AXIS
Holdings and its Subsidiaries which would at such time be classified in whole or
in part as a liability on the consolidated balance sheet of AXIS Holdings in
accordance with GAAP.

          "TRANSACTIONS" means the execution, delivery and performance by the
Account Parties of this Agreement and the other Credit Documents, the borrowing
of Loans, the use of the proceeds thereof and the issuance of Syndicated Letters
of Credit hereunder.

          "TYPE", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans constituting such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

          "WITHDRAWAL LIABILITY" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

                                CREDIT AGREEMENT

<Page>

                                     - 14 -

          SECTION 1.02. TERMS GENERALLY. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

          SECTION 1.03. ACCOUNTING TERMS; GAAP AND SAP; FISCAL YEAR. Except as
otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP or SAP, as the context
requires, each as in effect from time to time; PROVIDED that, if AXIS Holdings
notifies the Administrative Agent that AXIS Holdings requests an amendment to
any provision hereof to eliminate the effect of any change occurring after the
date hereof in GAAP or SAP, as the case may be, or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies AXIS
Holdings that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or SAP, as the case may be, or in the application
thereof, then such provision shall be interpreted on the basis of GAAP or SAP,
as the case may be, as in effect and applied immediately before such change
shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith. To enable the ready and consistent
determination of compliance with the covenants set forth in Article VI, AXIS
Holdings will not change the last day of its fiscal year from December 31, or
the last days of the first three fiscal quarters in each of its fiscal years
from March 31, June 30 and September 30, respectively.

                                   ARTICLE II

                                   THE CREDITS

          SECTION 2.01. SYNDICATED LETTERS OF CREDIT.

          (a) GENERAL. Subject to the terms and conditions set forth herein, at
the request of an Account Party each Lender agrees at any time and from time to
time during the Availability Period to issue Syndicated Letters of Credit
denominated in Dollars for account of such Account Party in an aggregate amount
that will not result in (i) such Lender's Credit Exposure exceeding such
Lender's Commitment or (ii) the total Credit Exposures exceeding the total
Commitments.

                                CREDIT AGREEMENT

<Page>

                                     - 15 -

Each Syndicated Letter of Credit shall be in such form as such Account Party
shall request and which (x) the Administrative Agent shall determine in good
faith and on a commercially reasonable basis does not contain any obligations,
or diminish any rights, of any Lender with respect thereto that are inconsistent
with the terms hereof or (y) the Required Lenders shall approve; PROVIDED that,
without the prior consent of each Lender, no Syndicated Letter of Credit may be
issued that would vary the several (and not joint) nature of the obligations of
the Lenders thereunder as provided in Section 2.01(e). Each Syndicated Letter of
Credit shall be issued by all of the Lenders, acting through the Administrative
Agent, at the time of issuance as a single multi-bank letter of credit, but the
obligation of each Lender thereunder shall be several and not joint as provided
in Section 2.01(e).

          (b) NOTICE OF ISSUANCE, AMENDMENT, RENEWAL OR EXTENSION. To request
the issuance of a Syndicated Letter of Credit (or the amendment, renewal or
extension of an outstanding Syndicated Letter of Credit), an Account Party shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Administrative Agent) to the
Administrative Agent (if by hand delivery or telecopy, not later than 11:00
a.m., New York City time, one Business Day prior to the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of a
Syndicated Letter of Credit, or identifying the Syndicated Letter of Credit to
be amended, renewed or extended, and specifying the date of issuance, amendment,
renewal or extension, as the case may be (which shall be a Business Day), the
date on which such Syndicated Letter of Credit is to expire (which shall comply
with paragraph (d) of this Section), the amount of such Syndicated Letter of
Credit, the name and address of the beneficiary thereof and the terms and
conditions of (and such other information as shall be necessary to prepare,
amend, renew or extend, as the case may be) such Syndicated Letter of Credit. If
any Syndicated Letter of Credit shall provide for the automatic extension of the
expiry date thereof unless the Administrative Agent gives notice in accordance
with the terms of such Syndicated Letter of Credit that such expiry date shall
not be extended, then the Administrative Agent will give such notice if
requested to do so by the Required Lenders in a notice given to the
Administrative Agent not more than 60 days, but not less than 45 days, prior to
the current expiry date of such Syndicated Letter of Credit; PROVIDED that,
unless all of the Lenders shall otherwise agree, if any Syndicated Letter of
Credit is outstanding on the Commitment Termination Date, the Administrative
Agent shall thereafter give such notice of non-extension in accordance with the
terms of such Syndicated Letter of Credit. If requested by the Administrative
Agent, an Account Party also shall submit a letter of credit application on
JPMCB's standard form in connection with any request for a Syndicated Letter of
Credit. In the event of any inconsistency between the terms and conditions of
this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by an Account Party to, or entered into
by an Account Party with, the Administrative Agent relating to any Syndicated
Letter of Credit, the terms and conditions of this Agreement shall control.

          (c) LIMITATIONS ON AMOUNTS. A Syndicated Letter of Credit shall be
issued, amended, renewed or extended only if (and upon such issuance, amendment,
renewal or extension of each Syndicated Letter of Credit the applicable Account
Party shall be deemed to represent and warrant that), after giving effect to
such issuance, amendment, renewal or extension, (A) the aggregate Credit
Exposure of the Lenders shall not exceed the aggregate amount of the Commitments
and (B) the Credit Exposure of each Lender at the time outstanding shall not
exceed the Commitment of such Lender.

                                CREDIT AGREEMENT

<Page>

                                     - 16 -

          (d) EXPIRY DATE. Each Syndicated Letter of Credit shall expire at or
prior to the close of business on the date one year after the date of the
issuance of such Syndicated Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension).

          (e) OBLIGATION OF LENDERS. The obligation of any Lender under any
Syndicated Letter of Credit shall be several and not joint and shall at any time
be in an amount equal to such Lender's Applicable Percentage of the aggregate
undrawn amount of such Syndicated Letter of Credit, and each Syndicated Letter
of Credit shall expressly so provide.

          (f) ADJUSTMENT OF APPLICABLE PERCENTAGES. Upon the assignment of all
or a portion of the Commitment and interests in outstanding Loans and Syndicated
Letters of Credit of a Lender pursuant to Section 2.19(b) or 10.04(b), the
Administrative Agent shall promptly notify each beneficiary under an outstanding
Syndicated Letter of Credit of the Lenders that are parties to such Syndicated
Letter of Credit, after giving effect to such assignment, and their respective
Applicable Percentages as of the effective date of such assignment.

          SECTION 2.02. ISSUANCE AND ADMINISTRATION. Each Syndicated Letter of
Credit shall be executed and delivered by the Administrative Agent in the name
and on behalf of, and as attorney-in-fact for, each Lender party to such
Syndicated Letter of Credit, and the Administrative Agent shall act under each
Syndicated Letter of Credit, and each Syndicated Letter of Credit shall
expressly provide that the Administrative Agent shall act, as the agent of each
Lender to (a) receive drafts, other demands for payment and other documents
presented by the beneficiary under such Syndicated Letter of Credit, (b)
determine whether such drafts, demands and documents are in compliance with the
terms and conditions of such Syndicated Letter of Credit and (c) notify such
Lender and the applicable Account Party that a valid drawing has been made and
the date that the related LC Disbursement is to be made; PROVIDED that the
Administrative Agent shall have no obligation or liability for any LC
Disbursement under such Syndicated Letter of Credit, and each Syndicated Letter
of Credit shall expressly so provide. Each Lender hereby irrevocably appoints
and designates the Administrative Agent as its attorney-in-fact, acting through
any duly authorized officer of the Person serving as the Administrative Agent,
to execute and deliver in the name and on behalf of such Lender each Syndicated
Letter of Credit to be issued by such Lender hereunder. Promptly upon the
request of the Administrative Agent, each Lender will furnish to the
Administrative Agent such powers of attorney or other evidence as any
beneficiary of any Syndicated Letter of Credit may reasonably request in order
to demonstrate that the Administrative Agent has the power to act as
attorney-in-fact for such Lender to execute and deliver such Syndicated Letter
of Credit. Upon the request of any Lender following the issuance of any
Syndicated Letter of Credit, the Administrative Agent will furnish to such
Lender a copy of such Syndicated Letter of Credit.

          SECTION 2.03. REIMBURSEMENT OF LC DISBURSEMENTS, ETC.

          (a) REIMBURSEMENT. If any Lender shall make any LC Disbursement in
respect of any Syndicated Letter of Credit, the applicable Account Party agrees
that it shall reimburse such Lender in respect of such LC Disbursement by paying
to the Administrative Agent an amount equal to such LC Disbursement not later
than noon, New York City time, on (i) the Business Day

                                CREDIT AGREEMENT

<Page>

                                     - 17 -

that such Account Party receives notice of such LC Disbursement, if such notice
is received prior to 10:00 a.m., New York City time, or (ii) the Business Day
immediately following the day that such Account Party receives such notice, if
such notice is not received prior to such time.

          (b) REIMBURSEMENT OBLIGATIONS ABSOLUTE. The Account Parties'
obligations to reimburse LC Disbursements as provided in paragraph (a) of this
Section shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Syndicated Letter of Credit, or any term or provision
therein, (ii) any draft or other document presented under a Syndicated Letter of
Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment under
a Syndicated Letter of Credit against presentation of a draft or other document
not complying strictly with the terms of such Syndicated Letter of Credit, (iv)
at any time or from time to time, without notice to any Account Party, the time
for any performance of or compliance with any of such reimbursement obligations
of any other Account Party shall be waived, extended or renewed, (v) any of such
reimbursement obligations of any other Account Party shall be amended or
otherwise modified in any respect, or any guarantee of any of such reimbursement
obligations or any security therefor shall be released, substituted or exchanged
in whole or in part or otherwise dealt with, (vi) any lien or security interest
granted to, or in favor of, the Administrative Agent or any of the Lenders as
security for any of such reimbursement obligations shall fail to be perfected,
(vii) the occurrence of any Default, (vi) the existence of any proceeding of the
type described in clause (h) or (i) of Article VII with respect to any other
Account Party, AXIS Holdings (if it is not an Account Party) or any other
guarantor of any of such reimbursement obligations, (vii) any lack of validity
or enforceability of any of such reimbursement obligations against any other
Account Party, AXIS Holdings (if it is not an Account Party) or any other
guarantor of any of such reimbursement obligations or (viii) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of the obligations of an Account Party hereunder.

          Neither the Administrative Agent nor any Lender nor any of their
Related Parties shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Syndicated Letter of Credit or
any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Syndicated Letter of
Credit (including any document required to make a drawing thereunder), any error
in interpretation of technical terms or any consequence arising from causes
beyond their control; PROVIDED that the foregoing shall not be construed to
excuse the Administrative Agent or a Lender from liability to an Account Party
to the extent of any direct damages (as opposed to consequential damages, claims
in respect of which are hereby waived by each Account Party to the extent
permitted by applicable law) suffered by such Account Party that are caused by
the gross negligence or wilful misconduct of the Administrative Agent or a
Lender when determining whether drafts and other documents presented under a
Syndicated Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that:

                                CREDIT AGREEMENT

<Page>

                                     - 18 -

          (A) the Administrative Agent may accept documents that appear on their
     face to be in substantial compliance with the terms of a Syndicated Letter
     of Credit without responsibility for further investigation, regardless of
     any notice or information to the contrary, and may make payment upon
     presentation of documents that appear on their face to be in substantial
     compliance with the terms of such Syndicated Letter of Credit;

          (B) the Administrative Agent shall have the right, in its sole
     discretion, to decline to accept such documents and to make such payment if
     such documents are not in strict compliance with the terms of such
     Syndicated Letter of Credit; and

          (C) this sentence shall establish the standard of care to be exercised
     by the Administrative Agent when determining whether drafts and other
     documents presented under a Syndicated Letter of Credit comply with the
     terms thereof (and the parties hereto hereby waive, to the extent permitted
     by applicable law, any standard of care inconsistent with the foregoing).

          (c) DISBURSEMENT PROCEDURES. The Administrative Agent shall, within a
reasonable time following its receipt thereof, examine all documents purporting
to represent a demand for payment under any Syndicated Letter of Credit. The
Administrative Agent shall promptly after such examination (i) notify each of
the Lenders and the applicable Account Party by telephone (confirmed by
telecopy) of such demand for payment and (ii) deliver to each Lender a copy of
each document purporting to represent a demand for payment under such Syndicated
Letter of Credit; PROVIDED that any failure to give or delay in giving such
notice or delivering such documents shall not relieve any Account Party of its
obligation to reimburse the Lenders with respect to any such LC Disbursement.
With respect to any drawing determined by the Administrative Agent to be
properly made under a Syndicated Letter of Credit, each Lender will make an LC
Disbursement in respect of such Syndicated Letter of Credit in accordance with
its liability under such Syndicated Letter of Credit and this Agreement, such LC
Disbursement to be made to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative
Agent will make any such LC Disbursement available to the beneficiary of such
Syndicated Letter of Credit by promptly crediting the amounts so received, in
like funds, to the account identified by such beneficiary in connection with
such demand for payment. Promptly following any LC Disbursement by any Lender in
respect of any Syndicated Letter of Credit, the Administrative Agent will notify
the applicable Account Party of such LC Disbursement; PROVIDED that any failure
to give or delay in giving such notice shall not relieve such Account Party of
its obligation to reimburse the Lenders with respect to any such LC Disbursement
or (if such Account Party is a Subsidiary Account Party) AXIS Holdings of its
guarantee of such obligation.

          (d) INTERIM INTEREST. If any LC Disbursement with respect to a
Syndicated Letter of Credit is made, then, unless the applicable Account Party
shall reimburse such LC Disbursement in full on the date such LC Disbursement is
made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that
such Account Party reimburses such LC Disbursement, at the rate per annum then
applicable to ABR Loans; PROVIDED that if such Account Party fails to reimburse

                                CREDIT AGREEMENT

<Page>

                                     - 19 -

such LC Disbursement when due pursuant to paragraph (a) of this Section, then
Section 2.13(c) shall apply.

          (e) CASH COLLATERALIZATION. If an Event of Default shall occur and be
continuing and AXIS Holdings receives notice from the Administrative Agent or
the Required Lenders demanding the deposit of cash collateral for the aggregate
LC Exposure of all the Lenders pursuant to this paragraph, AXIS Holdings shall
immediately deposit into an account established and maintained on the books and
records of the Administrative Agent, which account may be a "securities account"
(within the meaning of Section 8-501 of the Uniform Commercial Code as in effect
in the State of New York (the "UNIFORM COMMERCIAL CODE")), in the name of the
Administrative Agent and for the benefit of the Lenders, an amount in cash in
Dollars equal to the total LC Exposure as of such date PLUS any accrued and
unpaid interest thereon; PROVIDED that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default described in clause (h) or (i) of Article
VII. Such deposit shall be held by the Administrative Agent as collateral for
the LC Exposure under this Agreement, and for this purpose AXIS Holdings hereby
grants a security interest to the Administrative Agent for the benefit of the
Lenders in such collateral account and in any financial assets (as defined in
the Uniform Commercial Code) or other property held therein.

          (f) ADDITION AND TERMINATION OF SUBSIDIARY ACCOUNT PARTIES.

          (i) ADDITION OF SUBSIDIARY ACCOUNT PARTY. AXIS Holdings may, by notice
to the Administrative Agent, which shall promptly notify the Lenders, request
from time to time that any wholly-owned Subsidiary become a party to this
Agreement as a Subsidiary Account Party; PROVIDED that such request shall be
made in writing and specify the proposed date, which shall be at least 15
Business Days after the date of such request (the "DESIGNATION DATE"), on which
the designation of such Subsidiary as a Subsidiary Account Party would be
effective and shall be accompanied by final drafts of the documentation required
by clause (ii) of the last sentence of this paragraph. Each Lender, acting in
its sole discretion, shall, by notice to AXIS Holdings and the Administrative
Agent given on or before the Designation Date, advise AXIS Holdings whether or
not such Lender agrees to such designation; PROVIDED that each Lender that
determines not to agree to such designation shall notify AXIS Holdings and the
Administrative Agent of such fact promptly after such determination (but in any
event no later than the Designation Date) and any Lender that does not advise
AXIS Holdings on or before the Designation Date shall be deemed not to have
consented to such designation. If (and only if), on or before the Designation
Date, (i) each Lender shall have consented to the designation of a Subsidiary as
a Subsidiary Account Party and (ii) such Subsidiary shall have delivered to the
Administrative Agent a Subsidiary Joinder Agreement executed by such Subsidiary
and AXIS Holdings (together with a copy of the Investment Guidelines of such
Subsidiary Account Party as in effect on the Designation Date, a process agent
acceptance letter in respect of such Subsidiary Account Party substantially in
the form of Exhibit C hereto and such other documents as the Administrative
Agent shall reasonably request, which may include other documents that are
consistent with conditions set forth in Section 4.01, each in form and substance
reasonably satisfactory to the Administrative Agent), the Administrative Agent
shall accept such Subsidiary Joinder Agreement on the Designation Date, and upon
such acceptance (x) the Administrative

                                CREDIT AGREEMENT

<Page>

                                     - 20 -

Agent shall promptly notify the Lenders thereof and (y) such Subsidiary shall
become a party to this Agreement as an Account Party.

          (ii) TERMINATION OF SUBSIDIARY ACCOUNT PARTY. AXIS Holdings may, at
any time at which a Subsidiary Account Party shall not be an Account Party with
respect to an outstanding Syndicated Letter of Credit and shall have no unpaid
LC Disbursements or (in the case of AXIS Specialty) unpaid Loans or unpaid
interest thereon, terminate such Subsidiary Account Party as an Account Party
and (in the case of AXIS Specialty) as a Borrower hereunder by delivering an
executed notice thereof, substantially in the form of Exhibit D hereto, to the
Administrative Agent (which shall promptly notify the Lenders). Immediately upon
the receipt by the Administrative Agent of such notice, all commitments of the
Lenders to issue Syndicated Letters of Credit for account of such Subsidiary
Account Party and (in the case of AXIS Specialty) to make Revolving Credit Loans
to such Subsidiary Account Party and all rights of such Subsidiary Account Party
hereunder shall terminate and such Subsidiary Account Party shall immediately
cease to be an Account Party and (in the case of AXIS Specialty) a Borrower
hereunder; PROVIDED that all obligations of such Subsidiary Account Party as an
Account Party and (in the case of AXIS Specialty) a Borrower hereunder arising
in respect of any period in which such Subsidiary Account Party was, or on
account of any action or inaction by such Subsidiary Account Party as, an
Account Party or (in the case of AXIS Specialty) a Borrower hereunder shall
survive such termination.

          SECTION 2.04. LOANS AND BORROWINGS.

          (a) GENERAL. Subject to the terms and conditions set forth herein, in
addition to the Syndicated Letters of Credit provided for in Section 2.01,
either Borrower may request each Lender, and each Lender hereby agrees, to make
Revolving Credit Loans to such Borrower from time to time during the
Availability Period in an aggregate principal amount that will not result in (i)
such Lender's Credit Exposure exceeding such Lender's Commitment, (ii) the total
Credit Exposures exceeding the total Commitments or (iii) the aggregate
principal amount of all outstanding Revolving Credit Loans exceeding
$100,000,000 (the "REVOLVING CREDIT SUBLIMIT"). Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrowers may borrow,
prepay and reborrow Revolving Credit Loans.

          (b) OBLIGATIONS OF LENDERS. Each Loan shall be made as part of a
Borrowing of a Borrower consisting of Loans of the same Type made by the Lenders
ratably in accordance with their respective Commitments. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; PROVIDED that the Commitments of the
Lenders are several and no Lender shall be responsible for any other Lender's
failure to make Loans as required.

          (c) TYPE OF LOANS. Subject to Section 2.14, each Borrowing shall be
constituted entirely of ABR Loans or of Eurodollar Loans as the applicable
Borrower may request in accordance herewith. Each Lender at its option may make
any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; PROVIDED that any exercise of such option shall
not affect the obligation of the Borrowers to repay such Loan in accordance with
the terms of this Agreement.

                                CREDIT AGREEMENT

<Page>

                                     - 21 -

          (d) MINIMUM AMOUNTS; LIMITATION ON NUMBER OF BORROWINGS. Each
Eurodollar Borrowing shall be in an aggregate amount of $5,000,000 or a larger
multiple of $1,000,000. Each ABR Borrowing shall be in an aggregate amount equal
to $5,000,000 or a larger multiple of $1,000,000; PROVIDED that an ABR Borrowing
may be in an aggregate amount that is equal to the entire unused balance of the
total Commitments or that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.03(a). Borrowings of more than one
Type may be outstanding at the same time; PROVIDED that there shall not at any
time be more than a total of five Eurodollar Borrowings for both Borrowers
outstanding.

          (e) LIMITATIONS ON INTEREST PERIODS. Notwithstanding any other
provision of this Agreement, neither Borrower shall be entitled to request (or
to elect to convert to or continue as a Eurodollar Borrowing) any Borrowing if
the Interest Period requested therefor would end after the Commitment
Termination Date, in the case of Revolving Credit Loans, or the Term Loan
Maturity Date, in the case of Term Loans.

          SECTION 2.05. REQUESTS FOR BORROWINGS.

          (a) NOTICE BY THE BORROWERS. To request a Borrowing consisting of
Revolving Credit Loans, a Borrower shall notify the Administrative Agent of such
request by telephone (i) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (ii) in the case of an ABR Borrowing, not later than 11:00
a.m., New York City time, one Business Day before the date of the proposed
Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent
of a written Borrowing Request in a form approved by the Administrative Agent
and signed by such Borrower.

          (b) CONTENT OF BORROWING REQUESTS. Each telephonic and written
Borrowing Request shall specify the following information in compliance with
Section 2.04:

          (i) the aggregate amount of the requested Borrowing;

          (ii) the date of such Borrowing, which shall be a Business Day;

          (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
     Borrowing;

          (iv) in the case of a Eurodollar Borrowing, the Interest Period
     therefor, which shall be a period contemplated by the definition of the
     term "Interest Period" and permitted under Section 2.04(e); and

          (v) the location and number of the applicable Borrower's account to
     which funds are to be disbursed.

                                CREDIT AGREEMENT

<Page>

                                     - 22 -

          (c) NOTICE BY THE ADMINISTRATIVE AGENT TO THE LENDERS. Promptly
following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

          (d) FAILURE TO ELECT. If no election as to the Type of a Borrowing is
specified in the applicable Borrowing Request, then the requested Borrowing
shall be an ABR Borrowing. If no Interest Period is specified in the applicable
Borrowing Request with respect to any requested Eurodollar Borrowing, then the
requested Borrowing shall be made instead as an ABR Borrowing.

          SECTION 2.06. FUNDING OF BORROWINGS.

          (a) FUNDING BY LENDERS. Each Lender shall make each Loan to be made by
it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 12:00 noon, New York City time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders. The Administrative Agent will make such Loans available to the
applicable Borrower by promptly crediting the amounts so received, in like
funds, to an account of such Borrower (if any) maintained with the
Administrative Agent in New York City and designated by such Borrower (or such
other account of such Borrower designated by it) in the applicable Borrowing
Request; PROVIDED that ABR Borrowings made to finance the reimbursement of an LC
Disbursement as provided in Section 2.03(a) shall be remitted by the
Administrative Agent to the Lenders in accordance with Section 2.18.

          (b) PRESUMPTION BY THE ADMINISTRATIVE AGENT. Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing that such Lender will not make available to the Administrative Agent
such Lender's share of such Borrowing, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with
paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the applicable Borrower a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then such Lender and such Borrower severally agree to
pay, without duplication, to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the
date such amount is made available to such Borrower to but excluding the date of
payment to the Administrative Agent, at (i) in the case of such Lender, the
Federal Funds Effective Rate or (ii) in the case of such Borrower, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

          SECTION 2.07. INTEREST ELECTIONS.

          (a) ELECTIONS BY THE BORROWERS. The Revolving Credit Loans
constituting each Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall
have the Interest Period specified in such Borrowing Request. Thereafter, the
applicable Borrower may elect to convert such Borrowing to a Borrowing of a
different Type or to continue such Borrowing as a Borrowing of the same Type
and, in the case of a Eurodollar Borrowing, may elect the Interest Period
therefor, all as provided

                                CREDIT AGREEMENT

<Page>

                                     - 23 -

in this Section. A Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans constituting such
Borrowing, and the Loans constituting each such portion shall be considered a
separate Borrowing.

          (b) NOTICE OF ELECTIONS. To make an election pursuant to this Section,
the applicable Borrower shall notify the Administrative Agent of such election
by telephone by the time that a Borrowing Request would be required under
Section 2.05 if such Borrower were requesting a Borrowing of the Type resulting
from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Interest Election Request in a form approved by the Administrative Agent and
signed by such Borrower.

          (c) CONTENT OF INTEREST ELECTION REQUESTS. Each telephonic and written
Interest Election Request shall specify the following information in compliance
with Section 2.04:

          (i) the Borrowing to which such Interest Election Request applies and,
     if different options are being elected with respect to different portions
     thereof, the portions thereof to be allocated to each resulting Borrowing
     (in which case the information to be specified pursuant to clauses (iii)
     and (iv) of this paragraph shall be specified for each resulting
     Borrowing);

          (ii) the effective date of the election made pursuant to such Interest
     Election Request, which shall be a Business Day;

          (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
     Eurodollar Borrowing; and

          (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
     Interest Period therefor after giving effect to such election, which shall
     be a period contemplated by the definition of the term "Interest Period"
     and permitted under Section 2.04(e).

          (d) NOTICE BY THE ADMINISTRATIVE AGENT TO THE LENDERS. Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender's portion of
each resulting Borrowing.

          (e) FAILURE TO ELECT; EVENTS OF DEFAULT. If the applicable Borrower
fails to deliver a timely and complete Interest Election Request with respect to
a Eurodollar Borrowing prior to the end of the Interest Period therefor, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders,
so notifies AXIS Holdings, then, so long as an Event of Default is continuing
(i) no outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each

                                CREDIT AGREEMENT

<Page>

                                     - 24 -

Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period therefor.

          SECTION 2.08. TERMINATION AND REDUCTION OF THE COMMITMENTS.

          (a) SCHEDULED TERMINATION. Unless previously terminated, the
Commitments shall terminate at the close of business on the Commitment
Termination Date.

          (b) VOLUNTARY TERMINATION OR REDUCTION. AXIS Holdings may at any time
terminate, or from time to time reduce, the Commitments; PROVIDED that (i) each
reduction of the Commitments shall be in an amount that is $10,000,000 or a
larger multiple of $5,000,000, (ii) AXIS Holdings shall not terminate or reduce
the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.10, the total Credit Exposures would exceed
the total Commitments and (iii) each reduction of the Commitments shall result
in a proportionate reduction in the Revolving Credit Sublimit.

          (c) NOTICE OF VOLUNTARY TERMINATION OR REDUCTION. AXIS Holdings shall
notify the Administrative Agent of any election to terminate or reduce the
Commitments under paragraph (b) of this Section at least three Business Days
prior to the effective date of such termination or reduction, specifying such
election and the effective date thereof. Promptly following receipt of any
notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by AXIS Holdings pursuant to this Section shall
be irrevocable.

          (d) EFFECT OF TERMINATION OR REDUCTION. Any termination or reduction
of the Commitments shall be permanent. Each reduction of the Commitments shall
be made ratably among the Lenders in accordance with their respective
Commitments.

          SECTION 2.09. REPAYMENT OF LOANS; EVIDENCE OF DEBT.

          (a) REPAYMENT. Each Borrower hereby unconditionally promises to pay to
the Administrative Agent for account of the Lenders (i) on the Commitment
Termination Date, the then unpaid principal amount of the Revolving Credit Loans
made to such Borrower which are outstanding at the close of business on the
Commitment Termination Date and which are not converted into Term Loans pursuant
to Section 2.11 and (ii) on the Term Loan Maturity Date, the then unpaid
principal amount of the Term Loans made to such Borrower, if any.

          (b) MANNER OF PAYMENT. Prior to any repayment of any Borrowings
hereunder, the applicable Borrower shall select the Borrowing or Borrowings of
such Borrower to be paid and shall notify the Administrative Agent by telephone
(confirmed by telecopy) of such selection not later than 11:00 a.m., New York
City time, three Business Days before the scheduled date of such repayment;
PROVIDED that each repayment of Borrowings shall be applied to repay any
outstanding ABR Borrowings before any other Borrowings. If the applicable
Borrower fails to make a timely selection of the Borrowing or Borrowings to be
repaid (in accordance with the immediately preceding sentence) or prepaid (in
accordance with Section 2.10(b)), such payment shall be applied, first, to pay
any outstanding ABR Borrowings and, second, to other Borrowings in the order of
the remaining duration of their respective Interest Periods (the Borrowing with
the

                                CREDIT AGREEMENT

<Page>

                                     - 25 -

shortest remaining Interest Period to be repaid first). Each payment of a
Borrowing shall be applied ratably to the Loans included in such Borrowing.

          (c) MAINTENANCE OF RECORDS BY LENDERS. Each Lender shall maintain in
accordance with its usual practice records evidencing the indebtedness of the
Borrowers to such Lender resulting from each Loan made by such Lender, including
the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (d) MAINTENANCE OF RECORDS BY THE ADMINISTRATIVE AGENT. The
Administrative Agent shall maintain records in which it shall record (i) the
amount of each Loan made hereunder, the Borrower to which such Loan was made,
the Type thereof and each Interest Period therefor, (ii) the amount of any
principal or interest due and payable or to become due and payable from a
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for account of the Lenders and each Lender's
share thereof.

          (e) EFFECT OF ENTRIES. The entries made in the records maintained
pursuant to paragraph (c) or (d) of this Section shall be PRIMA FACIE evidence
of the existence and amounts of the obligations recorded therein; PROVIDED that
the failure of any Lender or the Administrative Agent to maintain such records
or any error therein shall not in any manner affect the obligation of the
Borrowers to repay the Loans in accordance with the terms of this Agreement.

          (f) PROMISSORY NOTES. Any Lender may request that Loans made by it to
either Borrower be evidenced by a promissory note of such Borrower. In such
event, such Borrower shall prepare, execute and deliver to such Lender a
promissory note payable to such Lender (or, if requested by such Lender, to such
Lender and its registered assigns) and in a form approved by the Administrative
Agent. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section
10.04) be represented by one or more promissory notes in such form payable to
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

          SECTION 2.10. PREPAYMENT OF LOANS.

          (a) RIGHT TO PREPAY BORROWINGS. Each Borrower shall have the right at
any time and from time to time to prepay any Borrowing of such Borrower in whole
or in part, subject to the requirements of this Section.

          (b) NOTICES, ETC. The applicable Borrower shall notify the
Administrative Agent by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later
than 11:00 a.m., New York City time, three Business Days before the date of
prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than
11:00 a.m., New York City time, one Business Day before the date of prepayment.
Each such notice shall be irrevocable and shall specify the prepayment date and
the principal amount of each Borrowing or portion thereof to be prepaid.
Promptly following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of a Borrowing of the same Type as provided in Section
2.04(d). Each prepayment of a Borrowing shall be applied ratably to the Loans
included in the prepaid

                                CREDIT AGREEMENT

<Page>

                                     - 26 -

Borrowing. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.13 and shall be made in the manner specified in Section
2.09(b).

          SECTION 2.11. CONVERSION TO TERM LOANS. (a) AXIS Holdings may, by
notice (the "TERM LOAN NOTICE") to the Administrative Agent (i) in the case of a
conversion into Term Loans that are Eurodollar Loans, not later than 11:00 a.m.,
New York City time, three Business Days before the Commitment Termination Date
or (ii) in the case of a conversion into Term Loans that are ABR Loans, not
later than 11:00 a.m., New York City time, on the Business Day prior to the
Commitment Termination Date, convert all Loans that are outstanding on the
Commitment Termination Date into Term Loans maturing on the Term Loan Maturity
Date; PROVIDED that, both on the date such Term Loan Notice is delivered to the
Administrative Agent and on the Commitment Termination Date, (i) no Default
shall have occurred and be continuing and (ii) the representations and
warranties of the Account Parties set forth in this Agreement and the other
Credit Documents shall be true and correct on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date). The Term Loan Notice shall specify (x)
whether the Term Loans are to be ABR Loans or Eurodollar Loans and (y) in the
case of a Eurodollar Loan, the Interest Period therefor after giving effect to
such conversion, which shall be a period contemplated by the definition of the
term "Interest Period" and permitted under Section 2.04(e). Promptly following
receipt of a Term Loan Notice, the Administrative Agent shall advise each Lender
of the details thereof and of such Lender's portion of the resulting Borrowing.
If a Term Loan Notice fails to specify the Type of Term Loan into which a Loan
is to be converted, then such Loan shall be converted into an ABR Term Loan. If
a Term Loan Notice fails to specify an Interest Period with respect to any
requested conversion into a Eurodollar Term Loan, then the requested conversion
shall be made instead into an ABR Term Loan.

          (b) If any Loan has been converted into a Term Loan pursuant to
paragraph (a) of this Section, the applicable Borrower may thereafter elect to
convert all or any part of such Term Loan to a Term Loan of a different Type or
to continue such Term Loan as a Term Loan of the same Type and, in the case of a
Eurodollar Loan, may elect the Interest Period therefor, all as provided in this
Section. A Borrower may elect different options with respect to different
portions of the affected Term Loans, in which case each such portion shall be
allocated ratably among the Lenders holding the Term Loans, and the Term Loans
constituting each such portion shall be considered a separate Borrowing. To make
an election pursuant to this paragraph (b), a Borrower shall deliver notice of
such election to the Administrative Agent by the time and in the manner
specified in Section 2.05(a) with respect to Interest Election Requests and
shall include in such notice of election the information required to be included
in Interest Election Requests pursuant to Section 2.05(b). Promptly following
receipt of such notice of election, the Administrative Agent shall advise each
Lender of the details thereof and of such Lender's portion of each resulting
Borrowing. If the applicable Borrower fails to deliver a timely and complete
notice of election with respect to Term Loans constituting a Eurodollar
Borrowing prior to the end of the Interest Period therefor, then, unless such
Term Loans are repaid, at the end of such Interest Period such Borrowing shall
be converted to an ABR Borrowing.

          (c) Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies AXIS Holdings, then, so long as an
Event of Default is continuing (i) no outstanding

                                CREDIT AGREEMENT

<Page>

                                     - 27 -

Term Loan may be converted to or continued as a Eurodollar Loan and (ii) unless
repaid, each Eurodollar Term Loan shall be converted to an ABR Term Loan at the
end of the Interest Period therefor.

          (d) Each Term Loan shall bear interest, until the payment in full
thereof, at the rate that Loans of the same Type bear pursuant to Section 2.13,
and such interest shall be payable for each Interest Period pursuant to the
payment provisions contained in Section 2.13 for Loans of the same Type.

          (e) The Commitments shall terminate on the Commitment Termination Date
and the Lenders shall have no further obligation to make any additional Loans
thereafter regardless of any conversion of Loans into Term Loans. If a Borrower
prepays or repays at any time all or any portion of the Term Loans made to such
Borrower, neither Borrower shall be entitled under this Agreement to reborrow
the amount so prepaid or repaid.

          SECTION 2.12. FEES.

          (a) COMMITMENT FEE. AXIS Holdings agrees to pay to the Administrative
Agent for account of each Lender a commitment fee, which shall accrue at a rate
per annum equal to 0.10% on the average daily unused amount of the Commitment of
such Lender during the period from and including the Effective Date to but
excluding the earlier of the date such Commitment terminates and the Commitment
Termination Date. Accrued commitment fees shall be payable on the third Business
Day following each Quarterly Date and on the earlier of the date the Commitments
terminate and the Commitment Termination Date, commencing on the first such date
to occur after the date hereof; PROVIDED that after the termination of the
Commitments, commitment fees shall be payable on demand. All commitment fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day).

          (b) SYNDICATED LETTER OF CREDIT FEE. AXIS Holdings agrees to pay to
the Administrative Agent for account of each Lender a letter of credit fee,
which shall accrue at a rate per annum equal to 0.50% on such Lender's
Applicable Percentage of the average daily aggregate undrawn amount of all
outstanding Syndicated Letters of Credit during the period from and including
the Effective Date to but excluding the later of the date on which such Lender's
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure. Accrued letter of credit fees shall be payable on the third Business
Day following each Quarterly Date and on the earlier of the date the Commitments
terminate and the Commitment Termination Date, commencing on the first such date
to occur after the date hereof; PROVIDED that after the termination of the
Commitments, letter of credit fees shall be payable on demand. Letter of credit
fees shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding the
last day).

          (c) LETTER OF CREDIT COMMISSIONS, ETC. AXIS Holdings agrees to pay, on
demand, to the Administrative Agent for its own account all commissions,
charges, costs and expenses with respect to the issuance, amendment, renewal and
extension of each Syndicated Letter of Credit and drawings and other
transactions relating thereto in amounts customarily

                                CREDIT AGREEMENT

<Page>

                                     - 28 -

charged from time to time in like circumstances by the Person serving as the
Administrative Agent and notified to AXIS Holdings in writing by the
Administrative Agent.

          (d) AGENT FEES. AXIS Holdings agrees to pay to the Administrative
Agent, for its own account, fees payable in the amounts and at the times
separately agreed upon between AXIS Holdings and the Administrative Agent.

          (e) PAYMENT OF FEES. All fees payable hereunder shall be paid on the
dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of the commitment fees and letter of credit fees
referred to in paragraphs (a) and (b), respectively, of this Section, to the
Lenders entitled thereto. Fees paid shall not be refundable under any
circumstances.

          SECTION 2.13. INTEREST.

          (a) ABR LOANS. The Loans constituting each ABR Borrowing shall bear
interest at a rate per annum equal to the Alternate Base Rate PLUS, for any
Commitment Utilization Day, 0.125% per annum.

          (b) EURODOLLAR LOANS. The Loans constituting each Eurodollar Borrowing
shall bear interest at a rate per annum equal to the Adjusted LIBO Rate for the
Interest Period for such Borrowing PLUS the Applicable Margin PLUS, for any
Commitment Utilization Day, 0.125% per annum.

          (c) DEFAULT INTEREST. Notwithstanding the foregoing, if any
reimbursement of an LC Disbursement or any principal of or interest on any Loan
or any fee or other amount payable by an Account Party hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of any overdue reimbursement of an LC
Disbursement or overdue principal of any Loan, 2% PLUS the rate otherwise
applicable to such LC Disbursement or such Loan as provided above or (ii) in the
case of any other amount, 2% PLUS the rate applicable to ABR Loans as provided
in paragraph (a) of this Section.

          (d) PAYMENT OF INTEREST. Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan and upon
termination of the Commitments prior to the Commitment Termination Date;
PROVIDED that (i) interest accrued pursuant to paragraph (c) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Loan prior to the Commitment
Termination Date), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Borrowing prior to the end of the
Interest Period therefor, accrued interest on such Borrowing shall be payable on
the effective date of such conversion.

          (e) COMPUTATION. All interest hereunder shall be computed on the basis
of a year of 360 days, except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime
Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of

                                CREDIT AGREEMENT

<Page>

                                     - 29 -

days elapsed (including the first day but excluding the last day). The
applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent manifest
error.

          SECTION 2.14. ALTERNATE RATE OF INTEREST. If prior to the commencement
of the Interest Period for any Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be
     conclusive absent manifest error) that adequate and reasonable means do not
     exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

          (b) the Administrative Agent is advised by the Required Lenders that
     the Adjusted LIBO Rate for such Interest Period will not adequately and
     fairly reflect the cost to such Lenders of making or maintaining their
     respective Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to AXIS Holdings and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies AXIS Holdings and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or the
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and such Borrowing (unless prepaid) shall be continued as, or converted to, an
ABR Borrowing and (ii) if any Borrowing Request requests a Eurodollar Borrowing,
such Borrowing shall be made as an ABR Borrowing.

          SECTION 2.15. INCREASED COSTS.

          (a) INCREASED COSTS GENERALLY. If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit or
     similar requirement against assets of, deposits with or for account of, or
     credit extended by, any Lender (except any such reserve requirement
     reflected in the Adjusted LIBO Rate); or

          (ii) impose on any Lender or the London interbank market any other
     condition affecting this Agreement or Eurodollar Loans made by such Lender
     or any Syndicated Letter of Credit;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender of
issuing or maintaining any Syndicated Letter of Credit or to reduce the amount
of any sum received or receivable by such Lender hereunder (whether of
principal, interest or otherwise), then AXIS Holdings will pay to such Lender
such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

          (b) CAPITAL REQUIREMENTS. If any Lender determines that any Change in
Law regarding capital requirements has or would have the effect of reducing the
rate of return on such

                                CREDIT AGREEMENT

<Page>

                                     - 30 -

Lender's capital or on the capital of such Lender's holding company, if any, as
a consequence of this Agreement or the Loans made by, or Syndicated Letters of
Credit issued by, such Lender to a level below that which such Lender or such
Lender's holding company could have achieved but for such Change in Law (taking
into consideration such Lender's policies and the policies of such Lender's
holding company with respect to capital adequacy), then from time to time AXIS
Holdings will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender's holding company for any such reduction
suffered.

          (c) CERTIFICATES FROM LENDERS. A certificate of a Lender setting forth
the amount or amounts necessary to compensate such Lender or its holding
company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to AXIS Holdings and shall be conclusive absent
manifest error. AXIS Holdings shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof by AXIS Holdings.

          (d) DELAY IN REQUESTS. Failure or delay on the part of any Lender to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's right to demand such compensation; PROVIDED that AXIS Holdings
shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than six months prior to the date
that such Lender notifies AXIS Holdings of the Change in Law giving rise to such
increased costs or reductions and of such Lender's intention to claim
compensation therefor; PROVIDED FURTHER that, if the Change in Law giving rise
to such increased costs or reductions is retroactive, then the six-month period
referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.16. BREAK FUNDING PAYMENTS. In the event of (a) the payment
of any principal of any Eurodollar Loan other than on the last day of an
Interest Period therefor (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of an Interest
Period therefor, (c) the failure to borrow, convert, continue or prepay any Loan
on the date specified in any notice delivered pursuant hereto or (d) the
assignment as a result of a request by AXIS Holdings pursuant to Section 2.19(b)
of any Eurodollar Loan other than on the last day of an Interest Period
therefor, then, in any such event, AXIS Holdings shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, the loss to any Lender attributable to any such event shall be
deemed to include an amount determined by such Lender to be equal to the excess,
if any, of (i) the amount of interest that such Lender would pay for a deposit
equal to the principal amount of such Loan for the period from the date of such
payment, conversion, failure or assignment to the last day of the then current
Interest Period for such Loan (or, in the case of a failure to borrow, convert
or continue, the duration of the Interest Period that would have resulted from
such borrowing, conversion or continuation) if the interest rate payable on such
deposit were equal to the Adjusted LIBO Rate for such Interest Period, OVER (ii)
the amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for Dollar deposits from other banks in the eurodollar market at the
commencement of such period. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to AXIS Holdings and shall be conclusive absent
manifest error. AXIS Holdings shall

                                CREDIT AGREEMENT

<Page>

                                     - 31 -

pay such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.

          SECTION 2.17. TAXES.

          (a) PAYMENTS FREE OF TAXES. Any and all payments by or on account of
any obligation of an Account Party hereunder or under any other Credit Document
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; PROVIDED that if an Account Party shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent or Lender (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) such Account Party shall make such deductions and (iii) such Account
Party shall pay the full amount deducted to the relevant Governmental Authority
in accordance with applicable law.

          (b) PAYMENT OF OTHER TAXES BY THE ACCOUNT PARTIES. In addition, an
Account Party shall pay any Other Taxes in respect of such Account Party to the
relevant Governmental Authority in accordance with applicable law.

          (c) INDEMNIFICATION BY THE ACCOUNT PARTIES. An Account Party shall
indemnify the Administrative Agent and each Lender, within 10 days after written
demand to such Account Party therefor, for the full amount of any Indemnified
Taxes or Other Taxes in respect of such Account Party (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section) paid by the Administrative Agent or such Lender, as the case
may be, and any penalties, interest and reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability delivered to an
Account Party by a Lender, or by the Administrative Agent on its own behalf or
on behalf of a Lender, shall be conclusive absent manifest error.

          (d) EVIDENCE OF PAYMENTS. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by an Account Party to a Governmental
Authority, such Account Party shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) EXEMPTIONS. Each Lender and the Administrative Agent shall, at the
written request of an Account Party, provide to such Account Party such form,
certification or similar documentation, if any (each duly completed, accurate
and signed) as is currently required by any Account Party Jurisdiction or any
other jurisdiction, or comply with such other requirements, if any, as is
currently applicable in any Account Party Jurisdiction or any other
jurisdiction, in order to obtain an exemption from, or reduced rate of,
deduction, payment or withholding of Indemnified Taxes or Other Taxes to which
such Lender or the Administrative Agent is entitled pursuant to an applicable
tax treaty or the law of any Account Party Jurisdiction or any other

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                                     - 32 -

jurisdiction; PROVIDED that such Account Party shall have furnished to such
Lender or the Administrative Agent in a reasonably timely manner copies of such
documentation and notice of such requirements together with applicable
instructions. No Account Party shall be required to indemnify any Lender or the
Administrative Agent under clauses (a) or (c) of this Section for any
Indemnified Taxes or Other Taxes to the extent such Indemnified Taxes or Other
Taxes would not be imposed but for the failure by such Lender or the
Administrative Agent, as the case may be, to comply with the provisions of the
preceding sentence. Upon the written request of an Account Party, each Lender
and the Administrative Agent will provide to such Account Party such form,
certification or similar documentation (each duly completed, accurate and
signed) as may in the future be required by any Account Party Jurisdiction or
any other jurisdiction, or comply with such other requirements, if any, as may
be applicable in any Account Party Jurisdiction or any other jurisdiction in
order to obtain an exemption from, or reduced rate of, deduction, payment or
withholding of Indemnified Taxes or Other Taxes to which such Lender or the
Administrative Agent is entitled pursuant to an applicable tax treaty or the law
of the relevant jurisdiction; PROVIDED that neither such Lender nor the
Administrative Agent shall have any obligation to provide such form,
certification or similar document if it would be unduly burdensome, would
require such Lender or the Administrative Agent to disclose any confidential
information or would otherwise be materially disadvantageous to such Lender or
the Administrative Agent; and PROVIDED FURTHER that such Account Party shall
have furnished to such Lender or the Administrative Agent in a reasonably timely
manner copies of such documentation and notice of such requirements together
with applicable instructions.

          SECTION 2.18. PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF
SET-OFFS.

          (a) PAYMENTS BY THE ACCOUNT PARTIES. Each Account Party shall make
each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or under Section 2.15, 2.16
or 2.17, or otherwise) or under any other Credit Document (except to the extent
otherwise provided therein) prior to 12:00 noon, New York City time, on the date
when due, in immediately available funds, without set-off or counterclaim. Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received either on such date or on
the next succeeding Business Day for purposes of calculating interest thereon.
All such payments shall be made to the Administrative Agent at its offices at
270 Park Avenue, New York, New York, except payments pursuant to Sections 2.15,
2.16, 2.17 and 10.03, which shall be made directly to the Persons entitled
thereto. The Administrative Agent shall distribute any such payments received by
it for account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that
is not a Business Day, the date for payment shall be extended to the next
succeeding Business Day and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
hereunder or under any other Credit Document shall be made in Dollars.

          (b) APPLICATION OF INSUFFICIENT PAYMENTS. If at any time insufficient
funds are received by and available to the Administrative Agent to pay fully all
amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder, such funds shall be applied (i) first, to pay interest and fees then
due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, to pay
principal and unreimbursed LC Disbursements then due hereunder, ratably

                                CREDIT AGREEMENT

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                                     - 33 -

among the parties entitled thereto in accordance with the amounts of principal
and unreimbursed LC Disbursements then due to such parties.

          (c) PRO RATA TREATMENT. Except to the extent otherwise provided
herein: (i) each reimbursement of LC Disbursements shall be made to the Lenders,
each Borrowing shall be made from the Lenders, each payment of fees under
Section 2.12 shall be made for account of the Lenders, and each termination or
reduction of the amount of the Commitments under Section 2.08 shall be applied
to the respective Commitments of the Lenders, pro rata according to the amounts
of their respective Commitments; (ii) each Borrowing shall be allocated pro rata
among the Lenders according to the amounts of their respective Commitments (in
the case of the making of Loans) or their respective Loans that are to be
included in such Borrowing (in the case of conversions and continuations of
Loans); (iii) each payment or prepayment of principal of Loans by a Borrower
shall be made for account of the Lenders pro rata in accordance with the
respective unpaid principal amounts of the Loans held by them; and (iv) each
payment of interest on Loans by a Borrower shall be made for account of the
Lenders pro rata in accordance with the amounts of interest on such Loans then
due and payable to the respective Lenders.

          (d) SHARING OF PAYMENTS BY LENDERS. If any Lender shall, by exercising
any right of set-off or counterclaim or otherwise, obtain payment in respect of
any principal of or interest on any of its Loans or any LC Disbursements
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and LC Disbursements and accrued interest thereon
then due than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans and LC Disbursements of other Lenders to the extent
necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and LC Disbursements; PROVIDED that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded
and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to
apply to any payment made by an Account Party pursuant to and in accordance with
the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or LC Disbursements to any assignee or participant, other than to an
Account Party or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply). Each Account Party consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Account Party rights of set-off and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor
of such Account Party in the amount of such participation.

          (e) PRESUMPTIONS OF PAYMENT. Unless the Administrative Agent shall
have received notice from an Account Party prior to the date on which any
payment is due from such Account Party to the Administrative Agent for account
of the Lenders hereunder that such Account Party will not make such payment, the
Administrative Agent may assume that such Account Party has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if such Account Party
has not in fact made such payment, then each of the Lenders severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed
to such Lender with

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                                     - 34 -

interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the Federal Funds Effective Rate.

          (f) CERTAIN DEDUCTIONS BY THE ADMINISTRATIVE AGENT. If any Lender
shall fail to make any payment required to be made by it pursuant to Section
2.06(b) or 2.18(e), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for account of such Lender to satisfy such
Lender's obligations under such Sections until all such unsatisfied obligations
are fully paid.

          SECTION 2.19. MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS.

          (a) DESIGNATION OF A DIFFERENT LENDING OFFICE. If any Lender requests
compensation under Section 2.15, or if an Account Party is required to pay any
additional amount to any Lender or any Governmental Authority for account of any
Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts
to designate a different lending office for funding or booking its Loans and
Syndicated Letters of Credit hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or Affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. AXIS Holdings
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

          (b) REPLACEMENT OF LENDERS. If any Lender requests compensation under
Section 2.15, or if an Account Party is required to pay any additional amount to
any Lender or any Governmental Authority for account of any Lender pursuant to
Section 2.17 or if any Lender ceases to be an NAIC Approved Lender, then AXIS
Holdings may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 10.04), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); PROVIDED that (i) AXIS Holdings
shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and the
amount of its LC Disbursements, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the applicable Account
Party (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.15 or
payments required to be made pursuant to Section 2.17, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling AXIS
Holdings to require such assignment and delegation cease to apply.

                                CREDIT AGREEMENT

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                                     - 35 -

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

          Each of AXIS Holdings and (except with respect to Section 3.04, the
first sentence of Section 3.11 and Sections 3.13 and 3.14) the other Account
Parties represents and warrants to the Lenders that:

          SECTION 3.01. ORGANIZATION; POWERS. Such Account Party and each of its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

          SECTION 3.02. AUTHORIZATION; ENFORCEABILITY. The Transactions are
within such Account Party's corporate powers and have been duly authorized by
all necessary corporate and, if required, by all necessary shareholder action.
This Agreement has been duly executed and delivered by such Account Party and
constitutes, and each of the other Credit Documents when executed and delivered
will constitute, a legal, valid and binding obligation of such Account Party,
enforceable against such Account Party in accordance with its terms, except as
such enforceability may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium, examination or similar laws of general applicability
affecting the enforcement of creditors' rights and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

          SECTION 3.03. GOVERNMENTAL APPROVALS; NO CONFLICTS. The Transactions
(a) do not require any consent or approval of (including any exchange control
approval), registration or filing with, or any other action by, any Governmental
Authority (including the Bermuda Monetary Authority), except such as have been
obtained or made and are in full force and effect, (b) will not violate any
applicable law or regulation (including regulations of the Bermuda Monetary
Authority) or the charter, by-laws or other organizational documents of such
Account Party or any of its Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon such Account Party or any of its
Subsidiaries or assets, or give rise to a right thereunder to require any
payment to be made by any such Person, and (d) will not result in the creation
or imposition of any Lien on any asset of such Account Party or any of its
Subsidiaries.

          SECTION 3.04. FINANCIAL CONDITION; NO MATERIAL ADVERSE CHANGE.

          (a) FINANCIAL CONDITION. AXIS Holdings has heretofore furnished to the
Lenders (i) its consolidated balance sheet and statements of income,
shareholders' equity and cash flows as of and for the fiscal year ended December
31, 2002, audited by Deloitte & Touche LLP, independent public accountants, and
(ii) the unaudited balance sheet and statement of income of each Subsidiary
Account Party as of such date and for such fiscal year. Such financial
statements present fairly, in all material respects, the financial condition and
results of operations and cash flows of AXIS Holdings and its consolidated
Subsidiaries (in the case of the financial

                                CREDIT AGREEMENT

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                                     - 36 -

statements referred to in clause (i) of the first sentence of this paragraph)
and the financial condition and results of operations of each Subsidiary Account
Party ((in the case of the financial statements referred to in clause (ii) of
the first sentence of this paragraph) as of such date and for such fiscal year
in accordance with GAAP. None of AXIS Holdings and its Subsidiaries has on the
date hereof any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments, except as referred to or reflected or provided for in
such balance sheet as of December 31, 2002.

          (b) NO MATERIAL ADVERSE CHANGE. Since December 31, 2002, there has
been no event, development or circumstance that has had or could reasonably be
expected to result in a Material Adverse Effect.

          SECTION 3.05. PROPERTIES.

          (a) PROPERTY GENERALLY. Such Account Party and its Subsidiaries has
good title to, or valid leasehold interests in, all its real and personal
property material to its business, subject only to Liens permitted by Section
6.02 and except for minor defects in title that do not interfere with its
ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes.

          (b) INTELLECTUAL PROPERTY. Except as disclosed in Schedule 3.05(b),
such Account Party and each of its Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by such Account Party and its
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.06. LITIGATION AND ENVIRONMENTAL MATTERS.

          (a) ACTIONS, SUITS AND PROCEEDINGS. Except as disclosed in Schedule
3.06(a), there are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority now pending against or, to the knowledge of such
Account Party, threatened against or affecting such Account Party or any of its
Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect or (ii)
that involve this Agreement or the Transactions.

          (b) ENVIRONMENTAL MATTERS. Except with respect to any other matters
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, neither such Account Party nor any of its
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or
(iv) knows of any basis for any Environmental Liability.

          (c) DISCLOSED MATTERS. Since the date hereof, there has been no change
in the status of the matters disclosed in Schedule 3.06(a) that, individually or
in the aggregate, has resulted in, or materially increased the likelihood of, a
Material Adverse Effect.

                                CREDIT AGREEMENT

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                                     - 37 -

          SECTION 3.07. COMPLIANCE WITH LAWS AND AGREEMENTS. Such Account Party
and each of its Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has
occurred and is continuing.

          SECTION 3.08. INVESTMENT AND HOLDING COMPANY STATUS. Neither such
Account Party nor any of its Subsidiaries is (a) an "investment company" as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a "holding company" as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935.

          SECTION 3.09. TAXES. Such Account Party and each of its Subsidiaries
has timely filed or caused to be filed all Tax returns and reports required to
have been filed and has paid or caused to be paid all Taxes required to have
been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which such Person has set aside on its books
adequate reserves or (b) to the extent that the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10. PENSION-RELATED MATTERS. Except as could not reasonably
be expected to result in a Material Adverse Effect, (i) all contributions
required to be made by such Account Party or any of its Subsidiaries with
respect to a Benefit Plan have been timely made, (ii) each Benefit Plan has been
maintained in compliance with its terms and with the requirements of any and all
applicable laws and has been maintained, where required, in good standing with
the applicable Governmental Authority and (iii) neither such Account Party nor
any of its Subsidiaries has incurred any obligation in connection with the
termination or withdrawal from any Benefit Plan.

          SECTION 3.11. DISCLOSURE. AXIS Holdings has disclosed to the Lenders
all agreements, instruments and corporate or other restrictions to which it or
any of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. None of the reports, financial statements, certificates
or other information furnished by or on behalf of AXIS Holdings or any other
Account Party to the Lenders in connection with the negotiation of this
Agreement and the other Credit Documents or delivered hereunder or thereunder as
modified or supplemented by other information so furnished contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; PROVIDED that, with respect to projected financial
information, AXIS Holdings represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

          SECTION 3.12. USE OF CREDIT. Neither such Account Party nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose, whether immediate, incidental
or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any extension of credit hereunder will be used to buy or carry any Margin Stock.

                                CREDIT AGREEMENT

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                                     - 38 -

          SECTION 3.13. INDEBTEDNESS AND LIENS.

          (a) INDEBTEDNESS. Schedule 6.05 is a complete and correct list of each
credit agreement, loan agreement, indenture, purchase agreement, guarantee,
letter of credit or other arrangement providing for or otherwise relating to any
Indebtedness or any extension of credit (or commitment for any extension of
credit) to, or guarantee by, AXIS Holdings or any of its Subsidiaries
outstanding on the date hereof, and the aggregate principal or face amount
outstanding or that may become outstanding under each such arrangement is
correctly described in Schedule 6.05.

          (b) LIENS. Schedule 6.02 is a complete and correct list of each Lien
securing Indebtedness of any Person outstanding on the date hereof covering any
property of AXIS Holdings or any of its Subsidiaries, and the aggregate
Indebtedness secured (or that may be secured) by each such Lien and the property
covered by each such Lien is correctly described in Schedule 6.02.

          SECTION 3.14. SUBSIDIARIES AND INVESTMENTS.

          (a) SUBSIDIARIES. Set forth in Schedule 3.14(a) is a complete and
correct list of all of the Subsidiaries of AXIS Holdings as of the date hereof,
together with, for each such Subsidiary, the jurisdiction of organization of
such Subsidiary. Except as disclosed in Schedule 3.14(a), (i) each such
Subsidiary is a directly or indirectly wholly-owned Subsidiary, (ii) each of
AXIS Holdings and its Subsidiaries owns, free and clear of Liens, and has the
unencumbered right to vote, all outstanding ownership interests in each Person
shown to be held by it in Schedule 3.14(a), (iii) all of the issued and
outstanding capital stock of each such Person organized as a corporation is
validly issued, fully paid and nonassessable and (iv) there are no outstanding
Equity Rights with respect to such Person.

          (b) INVESTMENTS. Set forth in Schedule 6.06 is a complete and correct
list of all Investments (other than Investments disclosed in Schedule 3.14(a)
and other than Investments of the types referred to in clauses (b), (c), (d),
(e), (f) and (g) of Section 6.06) held by AXIS Holdings or any of its
Subsidiaries in any Person on the date hereof and, for each such Investment, (x)
the identity of the Person or Persons holding such Investment and (y) the nature
of such Investment. Except as disclosed in Schedule 6.06, each of AXIS Holdings
and its Subsidiaries owns, free and clear of all Liens, all such Investments.

          SECTION 3.15. WITHHOLDING TAXES. Based upon information with respect
to each Lender provided by each Lender to the Administrative Agent, as of the
date hereof, the payment of the Loans and LC Disbursements and interest thereon,
the fees under Section 2.12 and all other amounts payable hereunder will not be
subject, by withholding or deduction, to any Taxes imposed by any Account Party
Jurisdiction.

          SECTION 3.16. STAMP TAXES. To ensure the legality, validity,
enforceability or admissibility in evidence of this Agreement, it is not
necessary that this Agreement or any other document be filed or recorded with
any Governmental Authority or that any stamp or similar tax be paid on or in
respect of this Agreement, or any other document other than such filings and

                                CREDIT AGREEMENT

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                                     - 39 -

recordations that have already been made and such stamp or similar taxes that
have already been paid.

          SECTION 3.17. LEGAL FORM. Each of the Credit Documents is in proper
legal form under the law of the jurisdiction of organization of each Account
Party for the enforcement thereof against each Account Party under such law, and
if each of the Credit Documents were stated to be governed by such law, they
would constitute legal, valid and binding obligations of each Account Party
under such law, enforceable in accordance with their respective terms. All
formalities required in the jurisdiction of organization of each Account Party
for the validity and enforceability of each of the Credit Documents (including
any necessary registration, recording or filing with any court or other
authority in such jurisdiction) have been accomplished, and no Indemnified Taxes
or Other Taxes are required to be paid to such jurisdiction, or any political
subdivision thereof or therein, and no notarization is required, for the
validity and enforceability thereof.

                                   ARTICLE IV

                                   CONDITIONS

          SECTION 4.01. EFFECTIVE DATE. The obligations of the Lenders to issue
or continue Syndicated Letters of Credit and to make Loans hereunder are subject
to the receipt by the Administrative Agent of each of the following documents,
each of which shall be satisfactory to the Administrative Agent (and to the
extent specified below, to each Lender) in form and substance (or such condition
shall have been waived in accordance with Section 10.02):

          (a) EXECUTED COUNTERPARTS. From each party hereto either (i) a
     counterpart of this Agreement signed on behalf of such party or (ii)
     written evidence satisfactory to the Administrative Agent (which may
     include telecopy transmission of a signed signature page to this Agreement)
     that such party has signed a counterpart of this Agreement.

          (b) OPINIONS OF COUNSEL TO AXIS HOLDINGS. Opinions, each addressed to
     the Administrative Agent and the Lenders and dated the Effective Date, of
     (i) Conyers Dill & Pearman, Bermuda counsel to AXIS Holdings, substantially
     in the form of Exhibit E-1, and (ii) LeBoeuf, Lamb, Greene & MacRae, LLP,
     New York counsel to AXIS Holdings, substantially in the form of Exhibit
     E-2.

          (c) OPINION OF SPECIAL NEW YORK COUNSEL TO JPMCB. An opinion, dated
     the Effective Date, of Milbank, Tweed, Hadley & McCloy LLP, special New
     York counsel to JPMCB, substantially in the form of Exhibit F (and JPMCB
     hereby instructs such counsel to deliver such opinion to the Lenders).

          (d) ORGANIZATIONAL DOCUMENTS. Such documents and certificates as the
     Administrative Agent or its counsel may reasonably request relating to the
     organization, existence and good standing of the Account Parties, the
     authorization of the Transactions and any other legal matters relating to
     the Account Parties, this Agreement or the Transactions, all in form and
     substance reasonably satisfactory to the Administrative Agent and its
     counsel.

                                CREDIT AGREEMENT

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                                     - 40 -

          (e) OFFICER'S CERTIFICATE. A certificate, dated the Effective Date and
     signed by the President, a Vice President or a Financial Officer of AXIS
     Holdings, confirming that (i) the representations and warranties of AXIS
     Holdings set forth in this Agreement are true and correct on and as of such
     date (or, if any such representation or warranty is expressly stated to
     have been made as of a specific date, as of such specific date), (ii) no
     Default has occurred and is continuing on such date and (iii) the condition
     set forth in clause (f) of this Section has been satisfied.

          (f) EXISTING CREDIT AGREEMENTS. Evidence that (i) AXIS Specialty shall
     have paid in full all principal of and interest accrued on the outstanding
     loans under each of the Existing Credit Agreements and all fees, expenses
     and other amounts owing by it thereunder (to the extent that reasonably
     detailed statements for such fees, expenses and other amounts have been
     delivered to it prior to the Effective Date), (ii) the commitments of the
     lenders thereunder shall have terminated and (iii) any letters of credit
     issued thereunder shall have expired or been terminated or replaced with
     Syndicated Letters of Credit issued hereunder.

          (g) PROCESS AGENT ACCEPTANCE LETTERS. A process agent acceptance
     letter in respect of each Account Party substantially in the form of
     Exhibit C.

          (h) OTHER DOCUMENTS. Such other documents as the Administrative Agent
     or any Lender or special New York counsel to JPMCB may reasonably request.

          The obligation of any Lender to make its initial extension of credit
hereunder is also subject to the payment by AXIS Holdings of such fees as AXIS
Holdings shall have agreed to pay to any Lender or the Administrative Agent in
connection herewith, including the reasonable fees and expenses of Milbank,
Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB, in connection
with the negotiation, preparation, execution and delivery of this Agreement and
the other Credit Documents and the extensions of credit hereunder (to the extent
that reasonably detailed statements for such fees and expenses have been
delivered to AXIS Holdings prior to the Effective Date).

          The Administrative Agent shall notify AXIS Holdings and the Lenders of
the Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to issue or
continue Syndicated Letters of Credit and make Loans hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 10.02) on or prior to 5:00 p.m., New York City time, on
March 27, 2003 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time).

          SECTION 4.02. EACH CREDIT EVENT. The obligation of each Lender to make
any Loan or issue, amend, renew or extend any Syndicated Letter of Credit is
additionally subject to the satisfaction of the following conditions:

          (a) the representations and warranties of the Account Parties set
     forth in this Agreement and in the other Credit Documents shall be true and
     correct on and as of the date of issuance, amendment, renewal or extension
     of such Syndicated Letter of Credit or

                                CREDIT AGREEMENT

<Page>

                                     - 41 -

     the date of such Loan, as applicable (or, if any such representation or
     warranty is expressly stated to have been made as of a specific date, as of
     such specific date); and

          (b) at the time of and immediately after giving effect to such Loan or
     the issuance, amendment, renewal or extension of such Syndicated Letter of
     Credit, as applicable, no Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a
Syndicated Letter of Credit shall be deemed to constitute a representation and
warranty by AXIS Holdings and (if different) the applicable Account Party on the
date thereof as to the matters specified in the preceding sentence.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

          Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Syndicated Letters of Credit shall have expired or
terminated and all LC Disbursements shall have been reimbursed, AXIS Holdings
covenants and agrees with the Lenders that:

          SECTION 5.01. FINANCIAL STATEMENTS AND OTHER INFORMATION. AXIS
Holdings will furnish to the Administrative Agent and each Lender:

          (a) within 90 days after the end of each fiscal year of AXIS Holdings,
     the audited consolidated balance sheet and related consolidated statements
     of operations, stockholders' equity and cash flows of AXIS Holdings and its
     Subsidiaries as of the end of and for such year, setting forth in each case
     in comparative form the figures for (or, in the case of the balance sheet,
     as of the end of) the previous fiscal year (if such figures were already
     produced for such corresponding period or periods), all reported on by
     Deloitte & Touche LLP or other independent public accountants of recognized
     national standing (without a "going concern" or like qualification or
     exception and without any qualification or exception as to the scope of
     such audit) to the effect that such consolidated financial statements
     present fairly in all material respects the financial condition and results
     of operations of AXIS Holdings and its Subsidiaries on a consolidated basis
     in accordance with GAAP consistently applied;

          (b) within 45 days after the end of each of the first three fiscal
     quarters of each fiscal year of AXIS Holdings, the consolidated balance
     sheet and related consolidated statements of operations, stockholders'
     equity and cash flows of AXIS Holdings and its Subsidiaries as of the end
     of and for such fiscal quarter and the then elapsed portion of such fiscal
     year, setting forth in each case in comparative form the figures for (or,
     in the case of the balance sheet, as of the end of) the corresponding
     period or periods of the previous fiscal year (if such figures were already
     produced for such corresponding period or periods), all certified by a
     Financial Officer as presenting fairly in all material respects the
     financial condition and results of operations of AXIS Holdings and its
     consolidated

                                CREDIT AGREEMENT

<Page>

                                     - 42 -

     Subsidiaries on a consolidated basis in accordance with GAAP consistently
     applied, subject to normal year-end audit adjustments and the absence of
     footnotes;

          (c) concurrently with any delivery of financial statements under
     clause (a) or (b) of this Section, a certificate signed by a Financial
     Officer (i) certifying as to whether a Default has occurred and, if a
     Default has occurred, specifying the details thereof and any action taken
     or proposed to be taken with respect thereto, (ii) setting forth reasonably
     detailed calculations demonstrating compliance with Sections 6.04, 6.05,
     6.06 and 6.07 and (iii) stating whether any material change in GAAP or in
     the application thereof has occurred since the date of the financial
     statements referred to in Section 3.04 and, if any such material change has
     occurred, specifying the effect of such material change on the financial
     statements accompanying such certificate;

          (d) within five days after the filing of Statutory Statements by any
     Insurance Company, a copy of such Statutory Statements of such Insurance
     Company for the relevant fiscal year, accompanied by a certificate of a
     senior financial officer of such Insurance Company (i) certifying that such
     Statutory Statements present the financial condition and results of
     operations of such Insurance Company in accordance with SAP and (ii)
     stating whether any material change in SAP or in the application thereof
     has occurred since the date of the Statutory Statements most recently filed
     with the Applicable Insurance Regulatory Authority by such Insurance
     Company prior to the date hereof and, if any such material change has
     occurred, specifying the effect of such material change on the Statutory
     Statements accompanying such certificate;

          (e) concurrently with any delivery of financial statements under
     clause (a) of this Section, a certificate of the accounting firm that
     reported on such financial statements stating whether they obtained
     knowledge during the course of their examination of such financial
     statements of any Default (which certificate may be limited to the extent
     required by accounting rules or guidelines);

          (f) promptly after the same become publicly available, copies of all
     periodic and other reports, proxy statements and other materials filed by
     AXIS Holdings or any of its Subsidiaries with the SEC, or any Governmental
     Authority succeeding to any or all of the functions of said Commission, or
     with any U.S., Bermuda or other securities exchange, or distributed by AXIS
     Holdings to its shareholders generally, as the case may be;

          (g) within 30 days prior to the end of each fiscal year of AXIS
     Holdings, projections for AXIS Holdings and its Subsidiaries for the
     immediately succeeding fiscal year;

          (h) promptly after any amendment or modification of the Investment
     Guidelines of any Account Party by the board of directors of such Account
     Party, a copy of such Investment Guidelines as so amended or modified; and

          (i) promptly following any request therefor, such other information
     regarding the operations, business affairs and financial condition of AXIS
     Holdings or any of its

                                CREDIT AGREEMENT

<Page>

                                     - 43 -

     Subsidiaries, or compliance with the terms of this Agreement or any other
     Credit Document, as the Administrative Agent or any Lender may reasonably
     request.

          SECTION 5.02. NOTICES OF MATERIAL EVENTS. AXIS Holdings will furnish
to the Administrative Agent and each Lender prompt written notice of the
following:

          (a) the occurrence of any Default;

          (b) the filing or commencement of any action, suit or proceeding by or
     before any arbitrator or Governmental Authority against or affecting AXIS
     Holdings or any of its Affiliates that, if adversely determined, could
     reasonably be expected to result in a Material Adverse Effect; and

          (c) any other development that results in, or could reasonably be
     expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of AXIS Holdings setting forth
the details of the event or development requiring such notice and any action
taken or proposed to be taken by AXIS Holdings with respect thereto.

          SECTION 5.03. EXISTENCE; CONDUCT OF BUSINESS. AXIS Holdings will, and
will cause each of its Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; PROVIDED that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under Section
6.01. AXIS Holdings will, and will cause each of its Subsidiaries to, qualify
and remain qualified as a foreign corporation in each jurisdiction in which
failure to receive or retain such qualification could reasonably be expected to
result in a Material Adverse Effect.

          SECTION 5.04. INSURANCE. AXIS Holdings will, and will cause each of
its Subsidiaries to, maintain with financially sound and reputable insurers
insurance with respect to its directors, officers and physical plant in such
amounts and against such risks as are customarily maintained by companies
engaged in the same or similar businesses operating in the same or similar
locations.

          SECTION 5.05. MAINTENANCE OF PROPERTIES. AXIS Holdings will, and will
cause each of its Subsidiaries to, keep and maintain all property material to
the conduct of its business in good working order and condition, ordinary wear
and tear excepted.

          SECTION 5.06. PAYMENT OF OBLIGATIONS. AXIS Holdings will, and will
cause each of its Subsidiaries to, pay or discharge:

          (a) on or prior to the date on which penalties attach thereto, all
     taxes, assessments and other governmental charges or levies imposed upon it
     or any of its properties or income;

                                CREDIT AGREEMENT

<Page>

                                     - 44 -

          (b) on or prior to the date when due, all lawful claims of
     materialmen, mechanics, carriers, warehousemen, landlords and other like
     Persons which, if unpaid, might result in the creation of a Lien upon any
     such property;

          (c) on or prior to the date when due, all other lawful claims which,
     if unpaid, might result in the creation of a Lien upon any such property
     (other than Liens not prohibited by Section 6.02) or which, if unpaid,
     might give rise to a claim entitled to priority over general creditors of
     AXIS Holdings or such Subsidiary in any proceeding under the Bermuda
     Companies Law or Bermuda Insurance Law or the applicable Laws of such
     Subsidiary's jurisdiction of organization, or any insolvency proceeding,
     liquidation, receivership, rehabilitation, dissolution or winding-up
     involving AXIS Holdings or such Subsidiary; and

          (d) on or prior to the date when the same shall become delinquent or
     be in default, all other obligations that, if not paid, could reasonably be
     expected to result in a Material Adverse Effect;

PROVIDED that, unless and until foreclosure, distraint, levy, sale or similar
proceedings shall have been commenced, neither AXIS Holdings nor any of its
Subsidiaries shall be required to pay or discharge any such tax, assessment,
charge, levy or claim so long as (i) the validity thereof is contested in good
faith and by appropriate proceedings diligently conducted, (ii) such reserves or
other appropriate provisions as may be required by GAAP or SAP, as the case may
be, shall have been made therefor and (iii) such failure to pay or discharge
(individually in the aggregate) could not reasonably be expected to result in a
Material Adverse Effect.

          SECTION 5.07. FINANCIAL ACCOUNTING PRACTICES. AXIS Holdings will, and
will cause each of its Subsidiaries to, make and keep books, records and
accounts which, in reasonable detail, accurately and fairly reflect its
transactions and dispositions of its assets and maintain a system of internal
accounting controls sufficient to provide reasonable assurances that
transactions are recorded as necessary to permit preparation of financial
statements required under Section 5.01 in conformity with GAAP and SAP, as
applicable, and to maintain accountability for assets.

          SECTION 5.08. COMPLIANCE WITH APPLICABLE LAWS. AXIS Holdings will, and
will cause each of its Subsidiaries to, comply with all applicable Laws
(including but not limited to the Bermuda Companies Law, Bermuda Insurance Laws
and Environmental Laws) in all respects, except where failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

          SECTION 5.09. USE OF SYNDICATED LETTERS OF CREDIT AND PROCEEDS OF
LOANS. The proceeds of the Loans will be used only for general corporate
purposes of AXIS Holdings and its Subsidiaries and the Syndicated Letters of
Credit will be issued only in the ordinary course of business of AXIS Holdings
and its Subsidiaries. No part of the proceeds of any Loan and no Syndicated
Letter of Credit will be used, whether directly or indirectly, for any purpose
that entails a violation of any of the Regulations of the Board, including
Regulations T, U and X of the Board.

                                CREDIT AGREEMENT

<Page>

                                     - 45 -

          SECTION 5.10. INSPECTION RIGHTS. AXIS Holdings will, and will cause
each of its Subsidiaries to, permit such Persons as the Administrative Agent or
any Lender may designate, upon reasonable prior notice, to visit and inspect any
of its properties, to examine and make extracts from its books and records, to
discuss its affairs, finances and condition with its officers and independent
accountants, and provide such other information relating to its business,
financial condition and prospects at such times as the Administrative Agent or
such Lender, as the case may be, may reasonably request.

          SECTION 5.11. FINANCIAL STRENGTH RATING. AXIS Holdings will cause each
of the Subsidiary Account Parties to maintain a financial strength rating of at
least "B++" from A.M. Best & Co. (or its successor) at all times or, in the case
of Sheffield Insurance Company only, at all times from and after the date on
which such Subsidiary Account Party initially receives a financial strength
rating from such Person.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

          Until the Commitments have expired or terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in full
and all Syndicated Letters of Credit have expired or terminated and all LC
Disbursements have been reimbursed, AXIS Holdings covenants and agrees with the
Lenders that:

          SECTION 6.01. FUNDAMENTAL CHANGES.

          (a) MERGERS, CONSOLIDATIONS, ETC. AXIS Holdings will not, nor will it
permit any of its Subsidiaries to, enter into any transaction of merger or
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution).

          (b) ACQUISITIONS. AXIS Holdings will not, nor will it permit any of
its Subsidiaries to, acquire any business or property from, or capital stock of,
or be a party to any acquisition of, any Person except for purchases of property
to be sold or used in the ordinary course of business and Investments permitted
under Section 6.06.

          (c) DISPOSITIONS. AXIS Holdings will not, nor will it permit any of
its Subsidiaries to, convey, sell, assign, lease, abandon, transfer or otherwise
dispose of, voluntarily or involuntarily, in one transaction or a series of
transactions, all or substantially all of its assets, or all or substantially
all of the stock of any of its Subsidiaries, whether now owned or hereafter
acquired (any of the foregoing being referred to in this Section as a
"DISPOSITION").

          (d) PERMITTED MERGERS, ACQUISITIONS, DISPOSITIONS, ETC.
Notwithstanding the foregoing provisions of this Section:

          (i) any Subsidiary of AXIS Holdings may be merged or consolidated with
     or into any other such Subsidiary; PROVIDED that if any such transaction
     shall be between a

                                CREDIT AGREEMENT

<Page>

                                     - 46 -

     Subsidiary and a wholly owned Subsidiary, the wholly owned Subsidiary shall
     be the continuing or surviving corporation;

          (ii) any Subsidiary of AXIS Holdings may make a Disposition of any or
     all of its property to AXIS Holdings or any wholly owned Subsidiary of AXIS
     Holdings;

          (iii) a Disposition of the capital stock of any Subsidiary of AXIS
     Holdings may be made to AXIS Holdings or any wholly owned Subsidiary of
     AXIS Holdings;

          (iv) AXIS Holdings or any of its Subsidiaries may make a Disposition
     in the ordinary course of business and on ordinary business terms; and

          (v) Axis Specialty Europe Management Services Ltd may liquidate, wind
up or dissolve itself.

          SECTION 6.02. LIENS. AXIS Holdings will not, nor will it permit any of
its Subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or assets, tangible or intangible, now owned or hereafter acquired by
it, except:

          (a) Liens existing on the date hereof (and extension, renewal and
     replacement Liens upon the same property) listed on Schedule 6.02; PROVIDED
     that (i) no such Lien shall extend to any other property or asset of AXIS
     Holdings or any of its Subsidiaries and (ii) any such Lien shall secure
     only those obligations which it secures on the date hereof and extensions,
     renewals and replacements thereof that do not increase the outstanding
     principal amount thereof;

          (b) Liens arising from taxes, assessments, charges, levies or claims
     described in Section 5.06 that are not yet due or that remain payable
     without penalty or to the extent permitted to remain unpaid under Section
     5.06;

          (c) Liens on fixed or capital assets acquired, constructed or improved
     by AXIS Holdings or any Subsidiary; PROVIDED that (i) such security
     interests secure Indebtedness permitted by Section 6.05(g), (ii) such
     security interests and the Indebtedness secured thereby are incurred prior
     to or within 90 days after such acquisition or the completion of such
     construction or improvement, (iii) the Indebtedness secured thereby does
     not exceed 100% of the cost of acquiring, constructing or improving such
     fixed or capital assets and (iv) such security interests shall not apply to
     any other property or assets of AXIS Holdings or any Subsidiary;

          (d) zoning restrictions, easements, minor restrictions on the use of
     real property, minor irregularities in title thereto and other minor Liens
     that do not in the aggregate materially detract from the value of a
     property or asset to, or materially impair its use in the business of, AXIS
     Holdings or any such Subsidiary;

          (e) statutory and common law Liens of materialmen, mechanics,
     carriers, warehousemen and landlords and other similar Liens arising in the
     ordinary course of business;

                                CREDIT AGREEMENT

<Page>

                                     - 47 -

          (f) Liens on cash and securities of AXIS Holdings or its Subsidiaries
     incurred as part of the management of an Account Party's investment
     portfolio in accordance with the Investment Guidelines of such Account
     Party;

          (g) Liens on (i) assets received, and on actual or imputed investment
     income on such assets received, relating and identified to specific
     insurance payment liabilities or to liabilities arising in the ordinary
     course of AXIS Holdings' or any of its Subsidiary's business as an
     insurance or reinsurance company, or the proceeds thereof, in each case
     held in a segregated trust or other account and securing such liabilities
     or (ii) any other assets subject to any trust or other account arising out
     of or as a result of contractual, regulatory or any other requirements;
     PROVIDED that in no case shall any such Lien secure Indebtedness and any
     Lien which secures Indebtedness shall not be permitted under this clause
     (g);

          (h) Liens arising in the ordinary course of business on operating
     accounts (including any related securities accounts) maintained by AXIS
     Holdings or any of its Subsidiaries in the ordinary course of business; and

          (i) Liens in favor of the Administrative Agent for the benefit of the
     Lenders arising pursuant to Section 2.03(e).

          SECTION 6.03. TRANSACTIONS WITH AFFILIATES. AXIS Holdings will not,
nor will it permit any of its Subsidiaries to, enter into or carry out any
transaction with (including, without limitation, sell, lease or otherwise
transfer any property or assets or services to, purchase, lease or otherwise
acquire any property or assets or services from, loan or advance to or enter
into, suffer to remain in existence or amend any contract, agreement or
arrangement with) any Affiliate of AXIS Holdings, or directly or indirectly
agree to do any of the foregoing, except (i) transactions between or among AXIS
Holdings and its wholly-owned Subsidiaries not involving any other Affiliate,
(ii) transactions with Affiliates in good faith in the ordinary course of AXIS
Holdings' business and at prices and on terms and conditions no less favorable
to AXIS Holdings or such Subsidiary than those that could have been obtained in
a comparable transaction on an arm's length basis from an unrelated Person and
(iii) any Restricted Payment permitted by Section 6.07.

          SECTION 6.04. FINANCIAL COVENANTS.

          (a) RATIO OF TOTAL FUNDED DEBT TO TOTAL CAPITALIZATION. AXIS Holdings
will not permit the ratio of (a) Total Funded Debt to (b) the sum of Total
Funded Debt PLUS Consolidated Net Worth to be greater than 0.35:1.00 at any
time.

          (b) CONSOLIDATED NET WORTH. AXIS Holdings will not permit its
Consolidated Net Worth to be less than $1,373,000,000 at any time.

          SECTION 6.05. INDEBTEDNESS. AXIS Holdings will not, nor will it permit
any of its Subsidiaries to, at any time create, incur, assume or permit to exist
any Indebtedness, or agree, become or remain liable (contingent or otherwise) to
do any of the foregoing, except:

                                CREDIT AGREEMENT

<Page>

                                     - 48 -

          (a)  Indebtedness created hereunder;

          (b) Indebtedness existing on the date hereof and described in Schedule
     6.05 and extensions, renewals and replacements of any such Indebtedness
     that do not increase the outstanding principal amount thereof;

          (c) Indebtedness incurred by AXIS Re Limited or AXIS Specialty Europe
     Limited pursuant to a credit facility providing for the making of loans and
     the issuance of letters of credit in an aggregate principal or face amount
     not exceeding $50,000,000 at any time outstanding;

          (d) Indebtedness incurred in transactions described in Section
     6.02(f);

          (e) Indebtedness of AXIS Holdings to any Subsidiary and of any
     Subsidiary to AXIS Holdings or any other Subsidiary;

          (f) Guarantees by AXIS Holdings of Indebtedness of any Subsidiary and
     by any Subsidiary of Indebtedness of AXIS Holdings or any other Subsidiary;

          (g) Indebtedness of AXIS Holdings or any Subsidiary incurred to
     finance the acquisition, construction or improvement of any fixed or
     capital assets, including Capital Lease Obligations, and any Indebtedness
     assumed in connection with the acquisition of any such assets or secured by
     a Lien on any such assets prior to the acquisition thereof, and extensions,
     renewals and replacements of any such Indebtedness that do not increase the
     outstanding principal amount thereof; PROVIDED that (i) such Indebtedness
     is incurred prior to or within 90 days after such acquisition or the
     completion of such construction or improvement and (ii) the aggregate
     principal amount of Indebtedness permitted by this clause (g) shall not
     exceed $25,000,000 at any time outstanding; and

          (h) other Indebtedness of AXIS Holdings and/or any of its Subsidiaries
     in an aggregate principal amount not exceeding $300,000,000 at any time
     outstanding.

          SECTION 6.06. INVESTMENTS. AXIS Holdings will not, nor will it permit
any of its Subsidiaries to, make or permit to remain outstanding any Investments
except:

          (a) Investments outstanding on the date hereof and identified in
     Schedule 6.06;

          (b) operating accounts (including any related securities accounts)
     maintained by AXIS Holdings or any of its Subsidiaries in the ordinary
     course of business;

          (c) Permitted Investments of any Account Party;

          (d) Investments by AXIS Holdings and its Subsidiaries in Subsidiaries;

          (e) Swap Agreements entered into in the ordinary course of AXIS
     Holdings' or any Subsidiary's financial planning and not for speculative
     purposes;

                                CREDIT AGREEMENT

<Page>

                                     - 49 -

          (f) Investments consisting of security deposits with utilities and
     other like Persons made in the ordinary course of business; and

          (g) Guarantees by AXIS Holdings of obligations of any of its
     Subsidiaries with respect to operating leases of office space not exceeding
     $25,000,000 in the aggregate.

          SECTION 6.07. RESTRICTED PAYMENTS. AXIS Holdings will not, nor will it
permit any of its Subsidiaries to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, except that (a) AXIS Holdings
may declare and pay dividends with respect to its capital stock consisting
solely of additional shares of its common stock, (b) AXIS Holdings may declare
and pay cash dividends with respect to its capital stock after the Effective
Date in an aggregate amount that, when combined with the amount of all other
dividends paid pursuant to this clause (b), does not exceed $150,000,000 and (c)
AXIS Holdings may make Restricted Payments pursuant to and in accordance with
stock option plans or other benefit plans for management or employees of AXIS
Holdings and its Subsidiaries. Nothing herein shall be deemed to prohibit the
payment of dividends by any Subsidiary of AXIS Holdings to AXIS Holdings or to
any other Subsidiary of AXIS Holdings.

          SECTION 6.08. CONTINUATION OF AND CHANGE IN BUSINESSES. AXIS Holdings
will not, nor will it permit any of its Subsidiaries to, engage to any material
extent in any business or businesses other than the business or businesses
engaged in (or which AXIS Holdings or any of its Subsidiaries, as the case may
be, proposes to engage in) on the date hereof and businesses related or
incidental thereto.

          SECTION 6.09. PRIVATE ACT. AXIS Holdings will not become subject to a
Private Act.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

          If any of the following events ("EVENTS OF DEFAULT") shall occur:

          (a) any Account Party shall fail to pay any principal of any Loan or
     any reimbursement obligation in respect of any LC Disbursement when and as
     the same shall become due and payable, whether at the due date thereof or
     at a date fixed for prepayment thereof or otherwise;

          (b) any Account Party shall fail to pay any interest on any Loan or LC
     Disbursement or any fee payable under this Agreement or any other amount
     (other than an amount referred to in clause (a) of this Article) payable
     under this Agreement or under any other Credit Document, when and as the
     same shall become due and payable, and such failure shall continue
     unremedied for a period of three or more days;

          (c) any representation or warranty made or deemed made by any Account
     Party in or in connection with this Agreement or any other Credit Document
     or any amendment or modification hereof or thereof, or in any report,
     certificate, financial statement or other

                                CREDIT AGREEMENT

<Page>

                                     - 50 -

     document furnished pursuant to or in connection with the provisions hereof
     or any other Credit Document or any amendment or modification hereof or
     thereof, shall prove to have been incorrect in any material respect as of
     the time made (or deemed made) or furnished;

          (d) AXIS Holdings shall fail to observe or perform any covenant,
     condition or agreement contained in Section 5.02(a), 5.03 (with respect to
     any Account Party's existence), 5.09, 5.11 or in Article VI;

          (e) any Account Party shall fail to observe or perform any covenant,
     condition or agreement contained in this Agreement (other than those
     specified in clause (a), (b) or (d) of this Article) or any other Credit
     Document and such failure shall continue unremedied for a period of 30 or
     more days after notice thereof from the Administrative Agent (given at the
     request of any Lender) to AXIS Holdings;

          (f) AXIS Holdings or any of its Subsidiaries shall fail to make any
     payment (whether of principal or interest and regardless of amount) in
     respect of any Material Indebtedness, when and as the same shall become due
     and payable;

          (g) any event or condition occurs that results in any Material
     Indebtedness becoming due prior to its scheduled maturity or that enables
     or permits (with or without the giving of notice, the lapse of time or
     both) the holder or holders of any Material Indebtedness or any trustee or
     agent on its or their behalf to cause any Material Indebtedness to become
     due, or to require the prepayment, repurchase, redemption or defeasance
     thereof, prior to its scheduled maturity; PROVIDED that this clause (g)
     shall not apply to secured Indebtedness that becomes due as a result of the
     voluntary sale or transfer of the property or assets securing such
     Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary
     petition shall be filed seeking (i) liquidation, reorganization or other
     relief in respect of any Account Party or its debts, or of a substantial
     part of its assets, under the Bermuda Companies Law or any other similar
     applicable Law or (ii) the appointment of a receiver, trustee, custodian,
     sequestrator, conservator or similar official for any Account Party or for
     a substantial part of its assets, and, in any such case, such proceeding or
     petition shall continue undismissed for a period of 60 or more days or an
     order or decree approving or ordering any of the foregoing shall be
     entered;

          (i) any Account Party shall institute proceedings to be adjudicated a
     voluntary bankrupt, or shall consent to the filing of a bankruptcy
     proceeding against it, or shall file a petition or answer or consent
     seeking reorganization under the Bermuda Companies Law or any other similar
     applicable Law, or shall consent to the filing of any such petition, or
     shall consent to the appointment of an examiner, receiver or liquidator or
     trustee or assignee in bankruptcy or insolvency of it or a substantial part
     of its property, or shall make an assignment for the benefit of creditors,
     or shall admit in writing its inability to pay its debts generally as they
     become due, or corporate or other action shall be taken by any Account
     Party in furtherance of any of the aforesaid purposes;

                                CREDIT AGREEMENT

<Page>

                                     - 51 -

          (j) one or more judgments for the payment of money in an aggregate
     amount in excess of $25,000,000 shall be rendered against AXIS Holdings or
     any of its Subsidiaries or any combination thereof and the same shall
     remain undischarged for a period of 30 consecutive days during which
     execution shall not be effectively stayed, or any action shall be legally
     taken by a judgment creditor to attach or levy upon any assets of AXIS
     Holdings or any of its Subsidiaries to enforce any such judgment;

          (k) an ERISA Event (or any event similar to an ERISA Event with
     respect to any non-U.S. Benefit Plan) shall have occurred that, in the
     opinion of the Required Lenders, when taken together with all other such
     similar events that have occurred, could reasonably be expected to result
     in liability of AXIS Holdings and its Subsidiaries in an aggregate amount
     exceeding $25,000,000;

          (l) the Guarantee of AXIS Holdings under Article IX shall for whatever
     reason be terminated or cease to be in full force and effect, or the
     validity or enforceability thereof shall be contested by AXIS Holdings; or

          (m) a Change in Control shall occur;

then, and in every such event (other than an event with respect to any Account
Party described in clause (h) or (i) of this Article), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to AXIS Holdings,
take either or both of the following actions, at the same or different times:
(i) terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding and all fees and other
obligations of the Account Parties accrued hereunder to be due and payable in
whole (or in part, in which case any principal and any fees and other
obligations not so declared to be due and payable may thereafter be declared to
be due and payable) and thereupon the principal of the Loans so declared to be
due and payable, together with accrued interest thereon, and such fees and other
obligations shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
each Account Party; and in case of any event with respect to any Account Party
described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the
Account Parties accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by each Account Party.

          If an Event of Default shall occur and be continuing, the
Administrative Agent or the Required Lenders may require AXIS Holdings (or, in
case of any Event of Default described in clause (h) or (i) of this Article,
AXIS Holdings shall become immediately obligated) to deposit cash collateral
pursuant to Section 2.03(e).

                                CREDIT AGREEMENT

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                                     - 52 -

                                  ARTICLE VIII

                            THE ADMINISTRATIVE AGENT

          Each of the Lenders hereby irrevocably appoints the Administrative
Agent as its agent hereunder and under the other Credit Documents and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto.

          The Person serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and such
Person and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with AXIS Holdings or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein and in the other Credit Documents.
Without limiting the generality of the foregoing, (a) the Administrative Agent
shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent
shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Credit Documents that the Administrative
Agent is required to exercise in writing by the Required Lenders, and (c) except
as expressly set forth herein and in the other Credit Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to AXIS Holdings or
any of its Subsidiaries that is communicated to or obtained by the bank serving
as Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or, to the extent
required by this Agreement, all of the Lenders) or in the absence of its own
gross negligence or willful misconduct. The Administrative Agent shall be deemed
not to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by AXIS Holdings or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Credit Document, (ii) the contents
of any certificate, report or other document delivered hereunder or thereunder
or in connection herewith or therewith, (iii) the performance or observance of
any of the covenants, agreements or other terms or conditions set forth herein
or therein, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement, any other Credit Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere herein or therein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or

                                CREDIT AGREEMENT

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                                     - 53 -

by telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for AXIS Holdings), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

          The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

          The Administrative Agent may resign at any time by notifying the
Lenders and AXIS Holdings. Upon any such resignation, the Required Lenders shall
have the right, with the consent of AXIS Holdings (which consent shall not be
unreasonably withheld), to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent's resignation shall
nonetheless become effective and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and (2) the Required
Lenders shall perform the duties of the Administrative Agent (and all payments
and communications provided to be made by, to or through the Administrative
Agent shall instead be made by or to each Lender directly) until such time as
the Required Lenders, with the consent of AXIS Holdings (which consent shall not
be unreasonably withheld), appoint a successor agent as provided for above in
this paragraph. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder (if not already discharged therefrom
as provided above in this paragraph). The fees payable by AXIS Holdings to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between AXIS Holdings and such successor.
After the Administrative Agent's resignation hereunder, the provisions of this
Article and Section 10.03 shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

          Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Credit Document or any related agreement or any document furnished
hereunder or thereunder.

                                CREDIT AGREEMENT

<Page>

                                     - 54 -

          Except as otherwise provided in Section 10.02(b) with respect to this
Agreement, the Administrative Agent may, with the prior consent of the Required
Lenders (but not otherwise), consent to any modification, supplement or waiver
under any of the Credit Documents.

          Notwithstanding anything herein to the contrary, the Adviser, Sole
Lead Arranger and Sole Bookrunner and Co-Syndication Agents named on the cover
page of this Agreement shall not have any duties or liabilities under this
Agreement, except in their capacity, if any, as Lenders.

                                   ARTICLE IX

                                    GUARANTEE

          SECTION 9.01. THE GUARANTEE. AXIS Holdings hereby guarantees to each
Lender and the Administrative Agent and their respective successors and assigns
the prompt payment in full when due (whether by acceleration or otherwise) of
all principal of and interest on the Loans made by the Lenders to AXIS Specialty
pursuant to this Agreement, all reimbursement obligations in respect of LC
Disbursements and all interest thereon payable by each Subsidiary Account Party
pursuant to this Agreement and all other amounts from time to time owing to the
Lenders or the Administrative Agent by each Subsidiary Account Party under this
Agreement or under any of the other Credit Documents, in each case strictly in
accordance with the terms thereof (such obligations being herein collectively
called the "GUARANTEED OBLIGATIONS"). AXIS Holdings hereby further agrees that
if any Subsidiary Account Party shall fail to pay in full when due (whether by
acceleration or otherwise) any of the Guaranteed Obligations, AXIS Holdings will
promptly pay the same, without any demand or notice whatsoever, and that in the
case of any extension of time of payment or renewal of any of the Guaranteed
Obligations, the same will be promptly paid in full when due (whether by
acceleration or otherwise) in accordance with the terms of such extension or
renewal.

          SECTION 9.02. OBLIGATIONS UNCONDITIONAL. The obligations of AXIS
Holdings under Section 9.01 are absolute and unconditional, irrespective of the
value, genuineness, validity, regularity or enforceability of the obligations of
the Subsidiary Account Parties under this Agreement or any other agreement or
instrument referred to herein, or any substitution, release or exchange of any
other guarantee of or security for any of the Guaranteed Obligations, and, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this
Section that the obligations of AXIS Holdings hereunder shall be absolute and
unconditional under any and all circumstances. Without limiting the generality
of the foregoing, it is agreed that the occurrence of any one or more of the
following shall not alter or impair the liability of AXIS Holdings hereunder,
which shall remain absolute and unconditional as described above:

          (i) at any time or from time to time, without notice to AXIS Holdings,
     the time for any performance of or compliance with any of the Guaranteed
     Obligations shall be extended, or such performance or compliance shall be
     waived;

                                CREDIT AGREEMENT

<Page>

                                     - 55 -

          (ii) any of the acts mentioned in any of the provisions of this
     Agreement or any other agreement or instrument referred to herein shall be
     done or omitted;

          (iii) the maturity of any of the Guaranteed Obligations shall be
     accelerated, or any of the Guaranteed Obligations shall be modified,
     supplemented or amended in any respect, or any right under this Agreement
     or any other agreement or instrument referred to herein shall be waived or
     any other guarantee of any of the Guaranteed Obligations or any security
     therefor shall be released or exchanged in whole or in part or otherwise
     dealt with; or

          (iv) any lien or security interest granted to, or in favor of, the
     Administrative Agent or any Lender or Lenders as security for any of the
     Guaranteed Obligations shall fail to be perfected.

AXIS Holdings hereby expressly waives diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that the Administrative
Agent or any Lender exhaust any right, power or remedy or proceed against any
Subsidiary Account Party under this Agreement or any other agreement or
instrument referred to herein, or against any other Person under any other
guarantee of, or security for, any of the Guaranteed Obligations.

          SECTION 9.03. REINSTATEMENT. The obligations of AXIS Holdings under
this Article shall be automatically reinstated if and to the extent that for any
reason any payment by or on behalf of any Subsidiary Account Party in respect of
the Guaranteed Obligations is rescinded or must be otherwise restored by any
holder of any of the Guaranteed Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, and AXIS Holdings
agrees that it will indemnify the Administrative Agent and each Lender on demand
for all reasonable costs and expenses (including fees of counsel) incurred by
the Administrative Agent or such Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending against
any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law.

          SECTION 9.04. SUBROGATION. AXIS Holdings hereby agrees that until the
payment and satisfaction in full of all Guaranteed Obligations and the
expiration and termination of the Commitments of the Lenders under this
Agreement it shall not exercise any right or remedy arising by reason of any
performance by it of its guarantee in Section 9.01, whether by subrogation or
otherwise, against any Subsidiary Account Party or any other guarantor of any of
the Guaranteed Obligations or any security for any of the Guaranteed
Obligations.

          SECTION 9.05. REMEDIES. AXIS Holdings agrees that, as between AXIS
Holdings on the one hand and the Administrative Agent and the Lenders on the
other, the obligations of each Subsidiary Account Party under this Agreement may
be declared to be forthwith due and payable as provided in Article VII (and
shall be deemed to have become automatically due and payable in the
circumstances provided in Article VII) for purposes of Section 9.01
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such obligations from becoming automatically due and payable) as
against such Subsidiary Account Party and that, in the event of such declaration
(or such obligations being

                                CREDIT AGREEMENT

<Page>

                                     - 56 -

deemed to have become automatically due and payable), such obligations (whether
or not due and payable by such Subsidiary Account Party) shall forthwith become
due and payable by AXIS Holdings for purposes of Section 9.01.

          SECTION 9.06. INSTRUMENT FOR THE PAYMENT OF MONEY. AXIS Holdings
hereby acknowledges that the guarantee in this Article constitutes an instrument
for the payment of money, and consents and agrees that any Lender or the
Administrative Agent, at its sole option, in the event of a dispute by AXIS
Holdings in the payment of any moneys due hereunder, shall have the right to
bring motion-action under New York CPLR Section 3213.

          SECTION 9.06. CONTINUING GUARANTEE. The guarantee in this Article is a
continuing guarantee, and shall apply to all Guaranteed Obligations whenever
arising.

                                    ARTICLE X

                                  MISCELLANEOUS

          SECTION 10.01. NOTICES. (a) Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to
paragraph (b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy, as follows:

          (i) if to AXIS Holdings, to it at 106 Pitts Bay Road, Pembroke HM 08,
     Bermuda, Attention of Andrew Cook (Telecopy No. (441) 296-3140);

          (ii) if to a Subsidiary Account Party listed below, to it at the
     address (or telecopy number) set forth below for such Subsidiary Account
     Party:

          AXIS Specialty Limited
          106 Pitts Bay Road
          Pembroke, Bermuda
          HM 08
          Attention: Andrew Cook
          Telecopy No.: (441) 296-3140
          Telephone No.: (441) 296-2600

          AXIS Reinsurance Company
          430 Park Avenue, 15th Floor
          New York, New York  10022
          Attention: Phillip McCrorie
          Telecopy No.: (212) 7150-3530
          Telephone No.: (212) 715-3500

                                CREDIT AGREEMENT

<Page>

                                     - 57 -

          AXIS Specialty Insurance Company
          628 Hebron Avenue, Building Two
          Suite 200
          Glastonbury, Connecticut  06033
          Attention: Phillip McCrorie
          Telecopy No.: (860) 734-0725
          Telephone No.: (860) 734-0700

          Sheffield Insurance Company
          11680 Great Oaks Way
          Suite 400
          Alpharetta, Georgia  30022
          Attention: Phillip McCrorie
          Telecopy No.: (678) 746-9444
          Telephone No.: (678) 746-9000

          (iii) if to a Subsidiary Account Party not listed in clause (ii)
     above, to it at the address (or telecopy number) set forth in the
     Subsidiary Joinder Agreement to which it is a party or (if such Subsidiary
     Account Party is not a party to any Subsidiary Joinder Agreement or if no
     such address is set forth in such Subsidiary Joinder Agreement) to it at
     the address set forth in clause (i) above;

          (iv) if to the Administrative Agent, to JPMorgan Chase Bank, 1111
     Fannin, 10th Floor, Houston, Texas 77002-8069, Attention of Loan and Agency
     Services Group (Telecopy No. (713) 750-2782; Telephone No. (713) 750-2102),
     WITH A COPY to JPMorgan Chase Bank, 270 Park Avenue, 4th Floor, New York,
     New York 10017, Attention of Heather Lindstrom (Telecopy No. (212)
     270-1511; Telephone No. (212) 270-9839); and

          (v) if to a Lender, to it at its address (or telecopy number) set
     forth in its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; PROVIDED that the foregoing shall not
apply to notices to any Lender pursuant to Article II unless otherwise agreed by
the Administrative Agent and such Lender. The Administrative Agent or any
Account Party may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; PROVIDED that approval of such procedures may be
limited to particular notices or communications.

          (c) Any party hereto may change its address or telecopy number for
notices and other communications hereunder by notice to the other parties hereto
(or, in the case of any such change by a Lender, by notice to AXIS Holdings and
the Administrative Agent, or, in the case of any such change by the
Administrative Agent, by notice to AXIS Holdings and the Lenders). All notices
and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt.

<Page>

                                     - 58 -

          SECTION 10.02. WAIVERS; AMENDMENTS.

          (a) NO DEEMED WAIVERS; REMEDIES CUMULATIVE. No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or
the exercise of any other right or power. The rights and remedies of the
Administrative Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by an Account Party
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Syndicated Letter of Credit shall not be construed as a waiver of
any Default, regardless of whether the Administrative Agent or any Lender may
have had notice or knowledge of such Default at the time.

          (b) AMENDMENTS. Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Account Parties and the Required Lenders or by the
Account Parties and the Administrative Agent with the consent of the Required
Lenders; PROVIDED that no such agreement shall:

          (i) increase the Commitment of any Lender without the written consent
     of such Lender or increase the Revolving Credit Sublimit without the
     consent of each Lender affected thereby,

          (ii) reduce the principal amount of any Loan or the amount of any
     reimbursement obligation of an Account Party in respect of any LC
     Disbursement or reduce the rate of interest thereon, or reduce any fees
     payable hereunder, without the written consent of each Lender affected
     thereby,

          (iii) postpone the scheduled date for payment of the principal amount
     of any Loan or reimbursement of any LC Disbursement, or any interest
     thereon, or any fees payable hereunder, or reduce the amount of, waive or
     excuse any such payment, or postpone the scheduled date of expiration of
     any Commitment or any Syndicated Letter of Credit (other than an extension
     thereof pursuant to an "evergreen" provision with respect to any Syndicated
     Letter of Credit), without the written consent of each Lender affected
     thereby,

          (iv) change Section 2.18(c) or 2.18(d) without the consent of each
     Lender affected thereby,

          (v) change or terminate the obligations of AXIS Holdings pursuant to
     Article IX without the written consent of each Lender or

          (vi) change any of the provisions of this Section or the percentage in
     the definition of the term "Required Lenders" or any other provision hereof
     specifying the

                                CREDIT AGREEMENT

<Page>

                                     - 59 -

     number or percentage of Lenders required to waive, amend or modify any
     rights hereunder or make any determination or grant any consent hereunder,
     without the written consent of each Lender;

and PROVIDED FURTHER that no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent hereunder without the
prior written consent of the Administrative Agent.

          SECTION 10.03. EXPENSES; INDEMNITY; DAMAGE WAIVER.

          (a) COSTS AND EXPENSES. The Account Parties shall, jointly and
severally, pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent, in connection with
the syndication of the credit facilities provided for herein, the preparation
and administration of this Agreement and the other Credit Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender, including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement and
the other Credit Documents, including its rights under this Section, or in
connection with the Loans made or Syndicated Letters of Credit issued hereunder,
including in connection with any workout, restructuring or negotiations in
respect thereof and (iii) all transfer, stamp, documentary or other similar
taxes, assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any other Credit Document or any other document
referred to herein or therein.

          (b) INDEMNIFICATION BY AXIS HOLDINGS. The Account Parties shall,
jointly and severally, indemnify the Administrative Agent and each Lender, and
each Related Party of any of the foregoing Persons (each such Person being
called an "INDEMNITEE"), against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related expenses, including the
fees, charges and disbursements of any counsel for any Indemnitee, incurred by
or asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement or any agreement or
instrument contemplated hereby, the performance by the parties hereto of their
respective obligations hereunder or the consummation of the Transactions or any
other transactions contemplated hereby, (ii) any Loan or the use of the proceeds
thereof, or any Syndicated Letter of Credit or the use thereof (including any
refusal by any Lender to honor a demand for payment under a Syndicated Letter of
Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Syndicated Letter of Credit), (iii) any actual or
alleged presence or release of Hazardous Materials on or from any property owned
or operated by AXIS Holdings or any of its Subsidiaries, or any Environmental
Liability related in any way to AXIS Holdings or any of its Subsidiaries, or
(iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; PROVIDED
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or

                                CREDIT AGREEMENT

<Page>

                                     - 60 -

related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee.

          (c) REIMBURSEMENT BY LENDERS. To the extent that the Account Parties
fail to pay any amount required to be paid by them to the Administrative Agent
under paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent such Lender's Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; PROVIDED that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent in its capacity
as such.

          (d) WAIVER OF CONSEQUENTIAL DAMAGES, ETC. To the extent permitted by
applicable law, no Account Party shall assert, and each Account Party hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or the use of the proceeds thereof, or any Syndicated Letter of Credit
or the use thereof.

          (e) PAYMENTS. All amounts due under this Section shall be payable
promptly after written demand therefor.

          SECTION 10.04. SUCCESSORS AND ASSIGNS.

          (a) ASSIGNMENTS GENERALLY. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that no Account Party may assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer
by such Account Party without such consent shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) ASSIGNMENTS BY LENDERS. Any Lender may assign to one or more NAIC
Approved Lenders all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) and under any Syndicated Letter of Credit to which it is a
party (if such Syndicated Letter of Credit permits such assignment or the
beneficiary consents thereto); PROVIDED that

          (i) except in the case of an assignment to a Lender, an Affiliate of a
     Lender or an Approved Fund, AXIS Holdings must give its prior written
     consent to such assignment (which consent shall not be unreasonably
     withheld),

          (ii) except in the case of an assignment to a Lender, the
     Administrative Agent must give its prior written consent to such assignment
     (which consent shall not be unreasonably withheld),

                                CREDIT AGREEMENT

<Page>

                                     - 61 -

          (iii) except in the case of an assignment to a Lender or an Affiliate
     of a Lender or an assignment of the entire remaining amount of the
     assigning Lender's Commitment, the amount of the Commitment of the
     assigning Lender subject to each such assignment (determined as of the date
     the Assignment and Assumption with respect to such assignment is delivered
     to the Administrative Agent) shall not be less than $5,000,000 unless each
     of AXIS Holdings and the Administrative Agent otherwise consent,

          (iv) each partial assignment shall be made as an assignment of a
     proportionate part of all the assigning Lender's rights and obligations
     under this Agreement,

          (v) the parties to each assignment shall execute and deliver to the
     Administrative Agent an Assignment and Assumption, together with a
     processing and recordation fee of $3,500, and

          (vi) the assignee, if it shall not be a Lender, shall deliver an
     Administrative Questionnaire to the Administrative Agent;

PROVIDED FURTHER that any consent of AXIS Holdings otherwise required under this
paragraph shall not be required if an Event of Default under clause (a), (b),
(h) or (i) of Article VII has occurred and is continuing. Upon acceptance and
recording pursuant to paragraph (d) of this Section, from and after the
effective date specified in each Assignment and Assumption, the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 10.03). Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.

          Notwithstanding anything to the contrary contained herein, any Lender
(a "GRANTING LENDER") may grant to a special purpose vehicle (an "SPV") of such
Granting Lender, identified as such in writing from time to time by the Granting
Lender to the Administrative Agent and AXIS Holdings, the option to provide to
the Account Parties all or any part of any Loan or LC Disbursement that such
Granting Lender would otherwise be obligated to make to the Account Parties
pursuant to Section 2.04 or Section 2.01, respectively; PROVIDED that (i)
nothing herein shall constitute a commitment by any SPV to make any Loan or LC
Disbursement, (ii) if an SPV elects not to exercise such option or otherwise
fails to provide all or any part of such Loan or LC Disbursement, the Granting
Lender shall be obligated to make such Loan or LC Disbursement pursuant to the
terms hereof and (iii) any Account Party may bring any proceeding against the
Granting Lender or the SPV in order to enforce any rights of such Account Party
under any of the Credit Documents. The making of a Loan or LC Disbursement by an
SPV hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan or LC Disbursement were made by the Granting
Lender. Each party hereto hereby agrees that no SPV shall be liable for any
payment under this Agreement for which a

                                CREDIT AGREEMENT

<Page>

                                     - 62 -

Lender would otherwise be liable, for so long as, and to the extent, the related
Granting Lender makes such payment. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness
of any SPV, it will not institute against, or join any other person in
instituting against, such SPV any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or similar proceedings under the laws of
the United States or any State thereof arising out of any claim against such SPV
under this Agreement. In addition, notwithstanding anything to the contrary
contained in this Section, any SPV may with notice to, but without the prior
written consent of, AXIS Holdings or the Administrative Agent and without paying
any processing fee therefor, assign all or a portion of its interests in any
Loan or Syndicated Letter of Credit to its Granting Lender or to any financial
institutions (consented to by AXIS Holdings and the Administrative Agent)
providing liquidity and/or credit support (if any) with respect to commercial
paper issued by such SPV to fund such Loans or issue such Syndicated Letters of
Credit and such SPV may disclose, on a confidential basis, confidential
information with respect to AXIS Holdings and its Subsidiaries to any rating
agency, commercial paper dealer or provider of a surety, guarantee or credit
liquidity enhancement to such SPV. This paragraph may not be amended without the
consent of any SPV at the time holding Loans or LC Disbursements under this
Agreement.

          (c) MAINTENANCE OF REGISTER BY THE ADMINISTRATIVE AGENT. The
Administrative Agent, acting for this purpose as an agent of each Account Party,
shall maintain at one of its offices in New York City a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of the
Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the "REGISTER"). The entries in the Register shall be
conclusive, and the Account Parties, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by AXIS Holdings and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

          (d) EFFECTIVENESS OF ASSIGNMENTS. Upon its receipt of a duly completed
Assignment and Assumption executed by an assigning Lender and an assignee, the
assignee's completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept
such Assignment and Assumption and record the information contained therein in
the Register. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.

          (e) PARTICIPATIONS. Any Lender may, without the consent of any Account
Party or the Administrative Agent, sell participations to one or more banks or
other entities (a "PARTICIPANT") in all or a portion of such Lender's rights and
obligations under this Agreement and the other Credit Documents (including all
or a portion of its Commitment and the Loans owing to it); PROVIDED that (i)
such Lender's obligations under this Agreement and the other Credit Documents
shall remain unchanged, (ii) such Lender shall remain solely responsible to

                                CREDIT AGREEMENT

<Page>

                                     - 63 -

the other parties hereto for the performance of such obligations and (iii) the
Account Parties, the Administrative Agent and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement and the other Credit Documents. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and the other Credit Documents and to approve any amendment,
modification or waiver of any provision of this Agreement or the other Credit
Documents; PROVIDED that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 10.02(b) that
affects such Participant. Subject to paragraph (f) of this Section, each Account
Party agrees that each Participant shall be entitled to the benefits of Sections
2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to paragraph (b) of this Section.

          (f) LIMITATIONS ON RIGHTS OF PARTICIPANTS. A Participant shall not be
entitled to receive any greater payment under Section 2.15 or 2.17 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with AXIS Holdings' prior written consent.

          (g) CERTAIN PLEDGES. Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any such pledge or assignment to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; PROVIDED that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such assignee for such Lender as a party hereto.

          (h) NO ASSIGNMENTS TO AXIS HOLDINGS OR AFFILIATES. Anything in this
Section to the contrary notwithstanding, no Lender may assign or participate any
interest in any Loan or LC Exposure held by it hereunder to AXIS Holdings or any
of its Affiliates or Subsidiaries without the prior consent of each Lender.

          SECTION 10.05. SURVIVAL. All covenants, agreements, representations
and warranties made by the Account Parties herein and in the certificates or
other instruments delivered in connection with or pursuant to this Agreement
shall be considered to have been relied upon by the other parties hereto and
shall survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Syndicated Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Syndicated Letter
of Credit is outstanding and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.15, 2.16, 2.17, 10.03 and 10.13 and
Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Syndicated Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

                                CREDIT AGREEMENT

<Page>

                                     - 64 -

          SECTION 10.06. COUNTERPARTS; INTEGRATION; EFFECTIVENESS. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement and
any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract between and among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page to this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

          SECTION 10.07. SEVERABILITY. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 10.08. RIGHT OF SETOFF. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender to or
for the credit or the account of any Account Party against any of and all the
obligations of such Account Party now or hereafter existing under this Agreement
held by such Lender, irrespective of whether or not such Lender shall have made
any demand under this Agreement and although such obligations may be unmatured.
The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

          SECTION 10.09. GOVERNING LAW; JURISDICTION; ETC.

          (a) GOVERNING LAW. This Agreement shall be construed in accordance
with and governed by the law of the State of New York.

          (b) SUBMISSION TO JURISDICTION. Each Account Party hereby agrees that
any suit, action or proceeding with respect to this Agreement, the other Credit
Documents or any judgment entered by any court in respect thereof may be brought
in the United States District Court for the Southern District of New York, in
the Supreme Court of the State of New York sitting in New York County (including
its Appellate Division), or in any other appellate court in the State of New
York, as the party commencing such suit, action or proceeding may elect in its
sole discretion; and each Account Party hereby irrevocably submits to the
jurisdiction of such courts for the purpose of any such suit, action, proceeding
or judgment. Each Account Party further submits, for the purpose of any such
suit, action, proceeding or judgment brought or rendered against it, to the
appropriate courts of the jurisdiction of its domicile.

                                CREDIT AGREEMENT

<Page>

                                     - 65 -

          (c) WAIVER OF VENUE. Each Account Party hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Credit Document in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

          (d) APPOINTMENT OF AGENT FOR SERVICE OF PROCESS. Each Account Party
irrevocably designates and appoints CT Corporation System, at its office in New
York City, New York, U.S.A., as its authorized agent, to accept and acknowledge
on its behalf, service of any and all process which may be served in any suit,
action or proceeding of the nature referred to in Section 10.09(b) in any
federal or New York State court sitting in New York City. Each Account Party
represents and warrants that such agent has agreed in writing to accept such
appointment and that a true copy of such designation and acceptance has been
delivered to the Administrative Agent. Said designation and appointment shall be
irrevocable by each such Account Party until all reimbursement obligations,
Loans, interest thereon and all other amounts payable hereunder and under the
other Credit Documents shall have been paid in full in accordance with the
provisions hereof and thereof or, if earlier, in the case of any Subsidiary
Account Party, when such Subsidiary Account Party is terminated as an Account
Party hereunder pursuant to Section 2.03(f)(ii). If such agent shall cease so to
act, each Account Party covenants and agrees to designate irrevocably and
appoint without delay another such agent satisfactory to the Administrative
Agent and to deliver promptly to the Administrative Agent evidence in writing of
such other agent's acceptance of such appointment.

          (e) SERVICE OF PROCESS. Each party to this Agreement (other than the
Account Parties) irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Each Account Party hereby consents to
process being served in any suit, action or proceeding of the nature referred to
in Section 10.09(b) in any federal or New York State court sitting in New York
City by service of process upon its agent appointed as provided in Section
10.09(d); PROVIDED that, to the extent lawful and possible, notice of said
service upon such agent shall be mailed by registered or certified air mail,
postage prepaid, return receipt requested, to such Account Party at its address
for notices set forth or referred to in clause (i) or (ii), as applicable, of
Section 10.01(a) or to any other address of which such Account Party shall have
given written notice to the applicable Lender. Each Account Party irrevocably
waives, to the fullest extent permitted by law, all claim of error by reason of
any such service in such manner and agrees that such service shall be deemed in
every respect effective service of process upon such Account Party in any such
suit, action or proceeding and shall, to the fullest extent permitted by law, be
taken and held to be valid and personal service upon and personal delivery to
such Account Party. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          (f) NO IMMUNITY. To the extent that an Account Party may be or become
entitled, in any jurisdiction in which judicial proceedings may at any time be
commenced with respect to this Agreement or any other Credit Document, to claim
for itself or its properties or revenues any immunity from suit, court
jurisdiction, attachment prior to judgment, attachment in aid of execution of a
judgment, execution of a judgment or from any other legal process or

                                CREDIT AGREEMENT

<Page>

                                     - 66 -

remedy relating to its obligations under this Agreement or any other Credit
Document, and to the extent that in any such jurisdiction there may be
attributed such an immunity (whether or not claimed), such Account Party hereby
irrevocably agrees not to claim and hereby irrevocably waives such immunity to
the fullest extent permitted by the laws of such jurisdiction.

          SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 10.11. HEADINGS. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

          SECTION 10.12. TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY.

          (a) TREATMENT OF CERTAIN INFORMATION. AXIS Holdings acknowledges that
from time to time financial advisory, investment banking and other services may
be offered or provided to AXIS Holdings or one or more of its Subsidiaries (in
connection with this Agreement or otherwise) by any Lender or by one or more
subsidiaries or affiliates of such Lender and AXIS Holdings hereby authorizes
each Lender to share any information delivered to such Lender by AXIS Holdings
and its Subsidiaries pursuant to this Agreement, or in connection with the
decision of such Lender to enter into this Agreement, to any such subsidiary or
affiliate, it being understood that any such subsidiary or affiliate receiving
such information shall be bound by the provisions of paragraph (b) of this
Section as if it were a Lender hereunder. Such authorization shall survive the
repayment of the Loans, the expiration or termination of the Syndicated Letters
of Credit and the Commitments or the termination of this Agreement or any
provision hereof.

          (b) CONFIDENTIALITY. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (i) to its and its Affiliates'
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (ii) to the extent requested
by any regulatory authority or self-regulatory body, (iii) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (iv) to any other party to this Agreement, (v) in connection with the
exercise of any remedies hereunder or under any other Credit Document or any
suit, action or proceeding relating to this Agreement or any other Credit
Document or the enforcement

                                CREDIT AGREEMENT

<Page>

                                     - 67 -

of rights hereunder or thereunder, (vi) subject to an agreement in writing
containing provisions substantially the same as those of this paragraph and for
the benefit of AXIS Holdings, to (a) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (b) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to AXIS Holdings and
its obligations, (vii) with the consent of AXIS Holdings or (viii) to the extent
such Information (A) becomes publicly available other than as a result of a
breach of this paragraph or (B) becomes available to the Administrative Agent or
any Lender on a nonconfidential basis from a source other than AXIS Holdings.
For the purposes of this paragraph, "INFORMATION" means all information received
from AXIS Holdings relating to AXIS Holdings or its business, other than any
such information that is available to the Administrative Agent or any Lender on
a nonconfidential basis prior to disclosure by AXIS Holdings; PROVIDED that, in
the case of information received from AXIS Holdings after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

          Notwithstanding the foregoing, the Administrative Agent, the Lenders
and the Account Parties (and each of their respective employees, representatives
or other agents) may disclose to any and all persons, without limitation of any
kind, the tax treatment and tax structure of the transactions contemplated by
this Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to such person relating to such tax treatment and
tax structure.

          SECTION 10.13. JUDGMENT CURRENCY. This is an international loan
transaction in which the specification of Dollars and payment in New York City
is of the essence, and the obligations of the Account Parties under this
Agreement to make payment to (or for account of) a Lender in Dollars shall not
be discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any other currency or in another place except to
the extent that such tender or recovery results in the effective receipt by such
Lender in New York City of the full amount of Dollars payable to such Lender
under this Agreement. If for the purpose of obtaining judgment in any court it
is necessary to convert a sum due hereunder in Dollars into another currency (in
this Section called the "JUDGMENT CURRENCY"), the rate of exchange that shall be
applied shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase such Dollars at the principal office of the
Administrative Agent in New York City with the judgment currency on the Business
Day next preceding the day on which such judgment is rendered. The obligation of
the Account Parties in respect of any such sum due from it to the Administrative
Agent or any Lender hereunder or under any other Credit Document (in this
Section called an "ENTITLED PERSON") shall, notwithstanding the rate of exchange
actually applied in rendering such judgment, be discharged only to the extent
that on the Business Day following receipt by such Entitled Person of any sum
adjudged to be due hereunder in the judgment currency such Entitled Person may
in accordance with normal banking procedures purchase and transfer Dollars to
New York City with the amount of the judgment currency so adjudged to be due;
and each Account Party hereby, as a separate obligation and notwithstanding any
such judgment, agrees to indemnify such Entitled

                                CREDIT AGREEMENT

<Page>

                                     - 68 -

Person against, and to pay such Entitled Person on demand, in Dollars, the
amount (if any) by which the sum originally due to such Entitled Person in
Dollars hereunder exceeds the amount of the Dollars so purchased and
transferred.

                                CREDIT AGREEMENT

<Page>

                                     - 69 -

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                     AXIS CAPITAL HOLDINGS LIMITED

                                     By          /s/ ANDREW COOK
                                          --------------------------------------
                                          Name:  Andrew Cook
                                          Title: Chief Financial Officer

                                     SUBSIDIARY ACCOUNT PARTIES

                                     AXIS SPECIALTY LIMITED

                                     By          /s/ ANDREW COOK
                                          --------------------------------------
                                          Name:  Andrew Cook
                                          Title: Chief Financial Officer

                                     AXIS REINSURANCE COMPANY

                                     By          /s/ ANDREW COOK
                                          --------------------------------------
                                          Name:  Andrew Cook
                                          Title: Director

                                     AXIS SPECIALTY INSURANCE COMPANY

                                     By          /s/ ANDREW COOK
                                          --------------------------------------
                                          Name:  Andrew Cook
                                          Title: Director

                                CREDIT AGREEMENT

<Page>

                                     - 70 -

                                     SHEFFIELD INSURANCE COMPANY

                                     By          /s/ ANDREW COOK
                                          --------------------------------------
                                          Name:  Andrew Cook
                                          Title: Director

                                CREDIT AGREEMENT

<Page>

                                     - 71 -

                                     LENDERS

                                     JPMORGAN CHASE BANK,
                                       individually and as Administrative Agent

                                     By          /s/ HEATHER A. LINDSTROM
                                          --------------------------------------
                                          Name:  Heather A. Lindstrom
                                          Title: Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 72 -

                                     CITIBANK, N.A.

                                     By          /s/ MICHAEL A. TAYLOR
                                          --------------------------------------
                                          Name:  Michael A. Taylor
                                          Title: Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 73 -

                                     THE BANK OF NEW YORK

                                     By          /s/ DAVID TRICK
                                          --------------------------------------
                                          Name:  David Trick
                                          Title: Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 74 -

                                     BARCLAYS BANK PLC

                                     By          /s/ NEIL HOLMES
                                          --------------------------------------
                                          Name:  Neil Holmes
                                          Title: Relationship Director

                                CREDIT AGREEMENT

<Page>

                                     - 75 -

                                     CREDIT LYONNAIS NEW YORK BRANCH

                                     By          /s/ PETER RASMUSSEN
                                          --------------------------------------
                                          Name:  Peter Rasmussen
                                          Title: First Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 76 -

                                     ING BANK N.V., LONDON BRANCH

                                     By          /s/ N. MARCHANT
                                          --------------------------------------
                                          Name:  N. Marchant
                                          Title: Director

                                     By          /s/ M. SHARMAN
                                          --------------------------------------
                                          Name:  M. Sharman
                                          Title: Managing Director

                                CREDIT AGREEMENT

<Page>

                                     - 77 -

                                     WACHOVIA BANK, NATIONAL ASSOCIATION

                                     By          /s/ KIMBERLY SHAFFER
                                          --------------------------------------
                                          Name:  Kimberly Shaffer
                                          Title: Director

                                CREDIT AGREEMENT

<Page>

                                     - 78 -

                                     FLEET NATIONAL BANK

                                     By          /s/ GEORGE J. URBAN
                                          --------------------------------------
                                          Name:  George J. Urban
                                          Title: Portfolio Manager

                                CREDIT AGREEMENT

<Page>

                                     - 79 -

                                     LLOYDS TSB BANK PLC

                                     By          /s/ MICHAEL J. GILLIGARR
                                          --------------------------------------
                                          Name:  Michael J. Gilligarr
                                          Title: Director Financial
                                                 Institutions, USA

                                     By          /s/ MATTHEW S. H. TUCK
                                          --------------------------------------
                                          Name:  Matthew S. H. Tuck
                                          Title: Vice President, Financial
                                                 Institutions, USA

                                CREDIT AGREEMENT

<Page>

                                     - 80 -

                                     DEUTSCHE BANK AG, NEW YORK AND/OR
                                     CAYMAN ISLANDS BRANCH

                                     By          /s/ RUTH LEUNG
                                          --------------------------------------
                                          Name:  Ruth Leung
                                          Title: Director

                                     By          /s/ CLINTON M. JOHNSON
                                          --------------------------------------
                                          Name:  Clinton M. Johnson
                                          Title: Managing Director

                                CREDIT AGREEMENT

<Page>

                                     - 81 -

                                     COMERICA BANK

                                     By          /s/ MARTIN G. ELLIS
                                          --------------------------------------
                                          Name:  Martin G. Ellis
                                          Title: Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 82 -

                                     ABN AMRO BANK N.V.

                                     By          /s/ NEIL R. STEIN
                                          --------------------------------------
                                          Name:  Neil R. Stein
                                          Title: Group Vice President

                                     By          /s/ MICHAEL DEMARCO
                                          --------------------------------------
                                          Name:  Michael DeMarco
                                          Title: Assistant Vice President

                                CREDIT AGREEMENT

<Page>

                                     - 83 -

                                     THE ROYAL BANK OF SCOTLAND PLC

                                     By          /s/ IAN GRINSLEY
                                          --------------------------------------
                                          Name:  Ian Grinsley
                                          Title: Director, Insurance City
                                                 Markets Group

                                CREDIT AGREEMENT

<Page>

                                                                SCHEDULE 1.01(1)

                                   COMMITMENTS

<Table>
<Caption>
Name of Lender                                                    Commitment ($)
--------------                                                    --------------
<S>                                                               <C>
JPMORGAN CHASE BANK                                                   50,000,000

CITIBANK, N.A.                                                        50,000,000

THE BANK OF NEW YORK                                                  45,000,000

BARCLAYS BANK PLC                                                     45,000,000

CREDIT LYONNAIS NEW YORK BRANCH                                       45,000,000

ING BANK N.V., LONDON BRANCH                                          45,000,000

WACHOVIA BANK, NATIONAL ASSOCIATION                                   45,000,000

FLEET NATIONAL BANK                                                   45,000,000

LLOYDS TSB BANK PLC                                                   45,000,000

DEUTSCHE BANK AG, NEW YORK AND/OR CAYMAN ISLANDS BRANCH               40,000,000

COMERICA BANK                                                         35,000,000

ABN AMRO BANK N.V.                                                    30,000,000

THE ROYAL BANK OF SCOTLAND PLC                                        30,000,000

--------------------------------------------------------------    --------------
TOTAL:                                                            $  550,000,000
</Table>

                                SCHEDULE 1.01(1)

<Page>

                                                                SCHEDULE 1.01(2)

                              INVESTMENT GUIDELINES

Part A  -  Statement of Investment Policy and Objectives of AXIS Capital
           Holdings Limited

Part B  -  Statement of Investment Policy and Objectives of AXIS Specialty
           Limited

Part C  -  Statement of Investment Policy and Objectives of AXIS Reinsurance
           Company

Part D  -  Statement of Investment Policy and Objectives of AXIS Specialty
           Insurance Company

Part E  -  Statement of Investment Policy and Objectives of Sheffield Insurance
           Company

                                SCHEDULE 1.01(2)

<Page>

PART A

                          AXIS CAPITAL HOLDINGS LIMITED

                  STATEMENT OF INVESTMENT POLICY AND OBJECTIVES

                               SEPTEMBER 18, 2002

                                SCHEDULE 1.01(2)

<Page>

PART B

                             AXIS SPECIALTY LIMITED

                  STATEMENT OF INVESTMENT POLICY AND OBJECTIVES

                               SEPTEMBER 18, 2002

                                SCHEDULE 1.01(2)

<Page>

PART C

                            AXIS REINSURANCE COMPANY

                  STATEMENT OF INVESTMENT POLICY AND OBJECTIVES

                                  JANUARY 2003

                                SCHEDULE 1.01(2)

<Page>

PART D

                        AXIS SPECIALTY INSURANCE COMPANY

                  STATEMENT OF INVESTMENT POLICY AND OBJECTIVES

                                  JANUARY 2003

                                SCHEDULE 1.01(2)

<Page>

PART E

                           SHEFFIELD INSURANCE COMPANY

                  STATEMENT OF INVESTMENT POLICY AND OBJECTIVES

                                SCHEDULE 1.01(2)

<Page>

                                                                SCHEDULE 3.05(b)

                              INTELLECTUAL PROPERTY

                                      None.

                                SCHEDULE 3.05(b)

<Page>

                                                                SCHEDULE 3.06(a)

                                   LITIGATION

                                      None.

                                SCHEDULE 3.06(a)

<Page>

                                                                SCHEDULE 3.14(a)

                                  SUBSIDIARIES

<Table>
<Caption>
Company Name                                                 Country of Domicile
------------                                                 -------------------
<S>                                                          <C>
Axis Specialty Limited                                       Bermuda
Axis Mergeco Limited (dormant)                               Bermuda
Axis Specialty (Barbados) Limited                            Barbados
Axis Specialty U.S. Services, Inc.                           U.S.A.
Sheffield Insurance Company (to be renamed                   U.S.A.
Axis Indemnity Company)
Axis Specialty U.S. Holdings, Inc.                           U.S.A.
Axis Reinsurance Company                                     U.S.A.
Axis Specialty Insurance Company                             U.S.A.
Axis Specialty Holdings Ireland Limited                      Ireland
Axis Re Limited                                              Ireland
Axis Specialty Europe Limited                                Ireland
Axis Specialty Europe Management Services Ltd                Ireland
(dormant)
Axis Specialty UK Limited                                    United Kingdom
Axis Specialty UK Holdings Limited                           United Kingdom
</Table>

The organizational documents of AXIS Holdings and certain of its Subsidiaries
require such entity to seek direction from its shareholders as to how to vote
ownership interests in each Person shown to be held by it in this Schedule.

                                SCHEDULE 3.14(a)

<Page>

                                                                   SCHEDULE 6.02

                                      LIENS

                                      None.

                                  SCHEDULE 6.02

<Page>

                                                                   SCHEDULE 6.05

                                  INDEBTEDNESS

Intercompany Indebtedness as follows:

1.   US $200 million Promissory Note between Axis Re Limited and Axis Specialty
     U.S. Holdings, Inc.

2.   US $92.5 million Promissory Note between Axis Specialty Europe Limited and
     Axis Specialty U.S. Holdings, Inc

                                  SCHEDULE 6.05

<Page>

                                                                   SCHEDULE 6.06

                                   INVESTMENTS

                                      None.

                                  SCHEDULE 6.06

<Page>

                                                                       EXHIBIT A

                       [Form of Assignment and Assumption]

                            ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the "ASSIGNMENT AND ASSUMPTION") is
dated as of the Effective Date set forth below and is entered into by and
between the Assignor identified below (the "ASSIGNOR") and the Assignee
identified below (the "ASSIGNEE"). Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the "CREDIT AGREEMENT"), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in
Annex 1 attached hereto (the "STANDARD TERMS AND CONDITIONS") are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

          For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including any letters of credit and guarantees
included in such facilities) and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right of
the Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims and
all other claims at law or in equity related to the rights and obligations sold
and assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as the "ASSIGNED INTEREST"). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

1.   Assignor:                       _____________________________________

2.   Assignee:                       _____________________________________
                                     [and is an [Affiliate] [Approved Fund] of
                                     [IDENTIFY LENDER]]

3.   Account Parties:                _____________________________________

4.   Administrative Agent:           JPMorgan Chase Bank, as the administrative
                                     agent under the Credit Agreement

                            ASSIGNMENT AND ASSUMPTION

<Page>

                                      - 2 -

5.   Credit Agreement:               The $550,000,000 Credit Agreement dated as
                                     of March 27, 2003 among AXIS Capital
                                     Holdings Limited, the Subsidiary Account
                                     Parties party thereto, the Lenders party
                                     thereto and JPMorgan Chases Bank, as
                                     Administrative Agent

6.   Assigned Interest:

<Table>
<Caption>
                                                             Percentage Assigned
                                                                      of
                      Aggregate Amount of     Amount of        Commitment/Loans/
                       Commitment/Loans    Commitment/Loans  Syndicated Letters of
Facility Assigned(1)    for all Lenders        Assigned            Credit(2)
--------------------  -------------------  ----------------  ---------------------
<S>                   <C>                  <C>               <C>
                      $                    $                              %
--------------------  -------------------  ----------------  ---------------------
                      $                    $                              %
--------------------  -------------------  ----------------  ---------------------
                      $                    $                              %
--------------------  -------------------  ----------------  ---------------------
</Table>

Effective Date: _____________ ___, 200_ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

                                          ASSIGNOR
                                          [NAME OF ASSIGNOR]

                                          By:
                                             ------------------------------
                                             Name:
                                             Title:

                                          ASSIGNEE
                                          [NAME OF ASSIGNEE]

                                          By:
                                             ------------------------------
                                             Name:
                                             Title:

----------
(1) Fill in the appropriate terminology for the types of facilities under the
    Credit Agreement that are being assigned under this Assignment (e.g.
    "Revolving Commitment," "Tranche A Commitment," "Tranche B Commitment,"
    etc.)
(2) Set forth, to at least 9 decimals, as a percentage of the
    Commitment/Loans/Syndicated Letters of Credit of all Lenders thereunder.

                            ASSIGNMENT AND ASSUMPTION

<Page>

                                      - 3 -

[Consented to and](3) Accepted:

JPMORGAN CHASE BANK, as
  Administrative Agent

By:
   ------------------------------
   Name:
   Title:

[Consented to:](4)

AXIS CAPITAL HOLDINGS LIMITED

By:
   ------------------------------
   Name:
   Title:

----------
(3) To be added only if the consent of the Administrative Agent is required by
    the terms of the Credit Agreement.
(4) To be added only if the consent of AXIS Holdings is required by the terms of
    the Credit Agreement.

                            ASSIGNMENT AND ASSUMPTION

<Page>

                                                                         ANNEX 1

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

          1. REPRESENTATIONS AND WARRANTIES.

          1.1 ASSIGNOR. The Assignor (a) represents and warrants that (i) it is
the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect
to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Credit Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Credit Documents or any collateral thereunder, (iii) the financial condition of
any Account Party, any Subsidiaries or Affiliates of any Account Party or any
other Person obligated in respect of any Credit Document or (iv) the performance
or observance by any Account Party, any Subsidiaries or Affiliates of any
Account Party or any other Person of any of their respective obligations under
any Credit Document.

          1.2. ASSIGNEE. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire the Assigned Interest and
become a Lender, (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the extent
of the Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it has received a copy of the Credit Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 5.01(a) or
5.01(b) thereof, as applicable, and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter
into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) attached to
the Assignment and Assumption is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by
the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are
required to be performed by it as a Lender.

          2. PAYMENTS. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the

                            ASSIGNMENT AND ASSUMPTION

<Page>

Effective Date and to the Assignee for amounts which have accrued from and after
the Effective Date.

          3. GENERAL PROVISIONS. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

                            ASSIGNMENT AND ASSUMPTION

<Page>

                                                                       EXHIBIT B

                     [Form of Subsidiary Joinder Agreement]

                          SUBSIDIARY JOINDER AGREEMENT

____________, 200__

To JPMorgan Chase Bank,
 as Administrative Agent
1111 Fannin, 10th Floor
Houston, Texas 77002-8069

Each of the Lenders party to the
Credit Agreement referred to below

                        Re: SUBSIDIARY JOINDER AGREEMENT

Ladies and Gentlemen:

          Reference is made to the Credit Agreement (the "CREDIT AGREEMENT")
dated as of March 27, 2003 between AXIS Capital Holdings Limited ("AXIS
HOLDINGS"), the Subsidiary Account Parties party thereto, the Lenders party
thereto and JPMorgan Chase Bank, as Administrative Agent (the "ADMINISTRATIVE
AGENT"). Capitalized terms used but not defined herein shall have the respective
meanings assigned to such terms in the Credit Agreement.

          AXIS Holdings and the "Subsidiary Account Party" (as identified on the
signature pages below) (the "SUBSIDIARY ACCOUNT PARTY") have executed and hereby
deliver this Subsidiary Joinder Agreement pursuant to Section 2.03(f) of the
Credit Agreement, in order to designate the Subsidiary Account Party as a
Subsidiary Account Party under the Credit Agreement.

          Accordingly, AXIS Holdings and the Subsidiary Account Party hereby
represent and warrant and agree that as of the "Effective Date" (as defined
below):

          1.   The Subsidiary Account Party is a wholly-owned Subsidiary of AXIS
     Holdings;

          2.   The Subsidiary Account Party is subject to and bound by each of
     the obligations of an Account Party (including a Subsidiary Account Party)
     contained in the Credit Agreement as if the Subsidiary Account Party were
     an original signatory to such Credit Agreement;

          3.   Each of the representations and warranties contained in the
     Credit Agreement and in the other Credit Documents (to the extent the same
     relate to a Subsidiary of AXIS Holdings) is true and correct as to the
     Subsidiary Account Party on and as of the Effective Date (or, if any such
     representation or warranty is expressly stated to have been made as of a
     specific date, as of such specific date);

                          SUBSIDIARY JOINDER AGREEMENT

<Page>

                                      - 2 -

          4.   The Subsidiary Account Party's addresses for notices, other
     communications and service of process provided for in the Credit Agreement
     shall be given in the manner, and with the effect, specified in Section
     10.01 of the Credit Agreement to it at its "Address for Notices" specified
     on the signature pages below or (if no such address is so specified) to it
     at the address set forth in clause (i) of Section 10.01(a) of the Credit
     Agreement; and

          5.   As of the Effective Date, the payment of the Loans and LC
     Disbursements and interest thereon and all other amounts under the Credit
     Agreement will not be subject, by withholding or deduction, to any Taxes
     imposed by the Account Party Jurisdiction(s) for the Subsidiary Account
     Party.

          In addition to the foregoing, AXIS Holdings hereby represents and
warrants and agrees that as of the Effective Date:

          1.   Each of the representations and warranties contained in the
     Credit Agreement and in the other Credit Documents is true and correct on
     and as of the Effective Date (or, if any such representation or warranty is
     expressly stated to have been made as of a specific date, as of such
     specific date);

          2.   No Default has occurred and is continuing;

          3.   The Guarantee of AXIS Holdings contained in Article IX of the
     Credit Agreement applies to all of the obligations of the Subsidiary
     Account Party under the Credit Documents; and

          4.   The Lenders have consented to the addition of the Subsidiary
     Account Party as an Account Party under the Credit Agreement pursuant to
     Section 2.03(f) thereof.

          This Subsidiary Joinder Agreement shall become effective as of the
date (the "EFFECTIVE DATE") on which the Administrative Agent accepts this
Subsidiary Joinder Agreement as provided on the signature pages below. As of the
Effective Date, the Subsidiary Account Party shall be entitled to the rights,
and subject to the obligations, of an Account Party (including a Subsidiary
Account Party) contained in the Credit Agreement. Except as expressly herein
agreed with respect to the joinder of the Subsidiary Account Party as a
Subsidiary Account Party, the Credit Agreement shall remain unchanged and in
full force and effect.

          This Subsidiary Joinder Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
agreement. This Subsidiary Joinder Agreement shall be governed by, and construed
in accordance with, the law of the State of New York.

                          SUBSIDIARY JOINDER AGREEMENT

<Page>

                                      - 3 -

                                              AXIS CAPITAL HOLDINGS LIMITED

                                              By:
                                                 --------------------------
                                                 Name:
                                                 Title:

                                              SUBSIDIARY ACCOUNT PARTY

                                              ---------------------,
                                              a __________________ [corporation]

                                              By:
                                                 --------------------------
                                                 Name:
                                                 Title:

                                              ADDRESS FOR NOTICES

                                              ----------------------

                                              ----------------------

                                              ----------------------

                                              Attn:
                                                   -----------------

                                              Tel:
                                                  ------------------
                                              Fax:
                                                  ------------------

                          SUBSIDIARY JOINDER AGREEMENT

<Page>

                                      - 4 -

ACCEPTED:

this ___ day of
_____________, 200__

JPMORGAN CHASE BANK,
  as Administrative Agent

By:
   --------------------------
   Name:
   Title:

                          SUBSIDIARY JOINDER AGREEMENT

<Page>

                                                                       EXHIBIT C

                    [Form of Process Agent Acceptance Letter]

                              CT Corporation System

                                                               ___________, 200_

To:  JPMorgan Chase Bank,
      as administrative agent under the
      Credit Agreement referred to below
      (the "ADMINISTRATIVE AGENT")

                     Re: [___________] (THE "ACCOUNT PARTY")

Ladies and Gentlemen:

          In respect of the Credit Agreement (the "CREDIT AGREEMENT") dated as
of March 27, 2003 among AXIS Capital Holdings Limited ("AXIS HOLDINGS"), the
subsidiary account parties party thereto, the lenders party thereto and the
Administrative Agent, the undersigned hereby accepts the irrevocable designation
and appointment of it as of the date hereof as agent for the Account Party to
accept and acknowledge service of any and all process, as contemplated by
Section 10.09(e) of the Credit Agreement and otherwise as provided thereby, such
acceptance to remain in effect until the Credit Agreement shall have been
terminated and all obligations thereunder of the Account Party shall have been
paid in full.

          The undersigned agrees to give the Administrative Agent or AXIS
Holdings, as applicable, immediate notice by telephone, fax, telex, cable or any
other means of instant communication upon receipt of all papers served upon the
undersigned pursuant to such appointment and to forward promptly to the
Administrative Agent or AXIS Holdings, as applicable, all such papers served
pursuant to such appointment by reputable overnight carrier.

                                     Very truly yours,

                                     CT CORPORATION SYSTEM

                                     By:
                                        ----------------------------
                                     Title:
                                           -------------------------

                         PROCESS AGENT ACCEPTANCE LETTER

<Page>

                                                                       EXHIBIT D

              [Form of Subsidiary Account Party Termination Notice]

                   SUBSIDIARY ACCOUNT PARTY TERMINATION NOTICE

                                                             ____________, 200__

To JPMorgan Chase Bank,
 as Administrative Agent
1111 Fannin, 10th Floor
Houston, Texas 77002-8069

Each of the Lenders party to the
Credit Agreement referred to below

        Re: TERMINATION OF [__________] (THE "SUBSIDIARY ACCOUNT PARTY")
                           AS SUBSIDIARY ACCOUNT PARTY

          AXIS Capital Holdings Limited ("AXIS HOLDINGS") hereby gives notice
pursuant to Section 2.03(f)(ii) of the Credit Agreement dated as of March 27,
2003 between AXIS Holdings, the Subsidiary Account Parties party thereto, the
Lenders party thereto (the "LENDERS") and the Administrative Agent (the "CREDIT
AGREEMENT") that, effective as of the date hereof, the Subsidiary Account Party
is terminated as an Account Party [and as a Borrower]* under the Credit
Agreement and all commitments by the Lenders to issue Syndicated Letters of
Credit for account of such Account Party [and to make Revolving Credit Loans to
such Account Party]* under the Credit Agreement are hereby terminated.

          Pursuant to Section 2.03(f)(ii) of the Credit Agreement, AXIS Holdings
hereby certifies that there is no Credit Exposure outstanding with respect to
any Syndicated Letter of Credit for which the Subsidiary Account Party is an
Account Party [or any Loans made to the Subsidiary Account Party]*.

          All obligations of the Subsidiary Account Party arising in respect of
any period in which the Subsidiary Account Party was, or on account of any
action or inaction taken by the Subsidiary Account Party as, an Account Party
[or a Borrower]* under the Credit Agreement shall survive the termination
effected by this notice.

          Terms used herein have the meanings assigned to them in the Credit
Agreement.

                                     AXIS CAPITAL HOLDINGS LIMITED

                                     By
                                       ---------------------------
                                            Authorized Officer

* Insert bracketed language only if terminated Subsidiary Account Party is AXIS
Specialty Limited.

                   SUBSIDIARY ACCOUNT PARTY TERMINATION NOTICE

<Page>

                                                                     EXHIBIT E-1

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

March 27, 2003

The Lenders party to the Credit Agreement
referred to below and

JPMorgan Chase Bank, as administrative agent for such lenders
1111 Fannin, 10th Floor
Houston, Texas 77002-8069

Dear Sirs:

AXIS CAPITAL HOLDINGS LIMITED

We have acted as special legal counsel in Bermuda to AXIS Capital Holdings
Limited ("AXIS HOLDINGS") in connection with a $550,000,000 credit agreement
dated as of 27 March, 2003 (the "CREDIT AGREEMENT") among AXIS Holdings, the
subsidiary account parties party thereto, the lenders party thereto and JPMorgan
Chase Bank ("JPMORGAN CHASE"), as administrative agent (the "ADMINISTRATIVE
AGENT").

For the purposes of giving this opinion, we have examined facsimile copies of
the executed Credit Agreement (which term does not include any other instrument
or agreement whether or not specifically referred to therein or attached as an
exhibit or schedule thereto).

We have also reviewed (a) the memorandum of association and the bye-laws of AXIS
Holdings, each certified by the Secretary of AXIS Holdings on 27 March, 2003,
(b) resolutions of the directors of AXIS Holdings dated 14th March, 2003
certified by the Secretary of AXIS Holdings on 27 March, 2003 (the "AXIS
HOLDINGS RESOLUTIONS"), (c) the memorandum of association and the bye-laws of
AXIS Specialty Limited ("AXIS SPECIALTY" and, together with AXIS Holdings, the
"BERMUDA ACCOUNT PARTIES"), each certified by the Secretary of AXIS Specialty on
27 March, 2003, (d) resolutions of the directors of AXIS Specialty dated 14th
March, 2003 certified by the Secretary of AXIS Specialty on 27 March, 2003
(together with the AXIS Holdings Resolutions, the "RESOLUTIONS") and (e) such
other documents and made such enquiries as to questions of law as we have deemed
necessary in order to render the opinion set forth below.

We have assumed (a) the genuineness and authenticity of all signatures and the
conformity to the originals of all copies (whether or not certified) examined by
us and the authenticity and completeness of the originals from which such copies
were taken, (b) that where a document has been examined by us in draft form, it
will be or has been executed in the form of that draft, and where a number of
drafts of a document have been examined by us all changes thereto have been

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 2 -

marked or otherwise drawn to our attention, (c) the capacity, power and
authority of the Lenders and the Administrative Agent to enter into and perform
their respective obligations under the Credit Agreement, (d) the due execution
of the Credit Agreement by the Lenders and the Administrative Agent and the
delivery thereof by each of the parties thereto, (e) the accuracy and
completeness of all factual representations made in the Credit Agreement and
other documents reviewed by us, (f) that the Resolutions remain in full force
and effect and have not been rescinded or amended, (g) that there is no
provision of the law of any jurisdiction, other than Bermuda, which would have
any implication in relation to the opinions expressed herein, (h) the validity
and binding effect under the laws of the State of New York (the "FOREIGN Laws")
of the Credit Agreement which are expressed to be governed by such Foreign Laws
in accordance with their respective terms, (i) the validity and binding effect
under the Foreign Laws of the submission by the Bermuda Account Parties pursuant
to the Credit Agreement to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York, in the Supreme Court of
the State of New York sitting in New York County (including its appellate
division), or in any other appellate court in the State of New York (the
"FOREIGN COURTS"), (j) that none of the parties to the Credit Agreement has
carried on or will carry on activities, other than the performance of its
obligations under the Credit Agreement, which would constitute the carrying on
of investment business in or from within Bermuda and that none of the parties to
the Credit Agreement, other than each of the Bermuda Account Parties, will
perform its obligations under the Credit Agreement in or from within Bermuda,
and (k) that on the date of entering into the Credit Agreement each of the
Bermuda Account Parties is and after entering into the Credit Agreement will be
able to pay its liabilities as they become due.

The obligations of the Bermuda Account Parties under the Credit Agreement (a)
will be subject to the laws from time to time in effect relating to bankruptcy,
insolvency, liquidation, possessory liens, rights of set off, reorganisation,
amalgamation, moratorium or any other laws or legal procedures, whether of a
similar nature or otherwise, generally affecting the rights of creditors, (b)
will be subject to statutory limitation of the time within which proceedings may
be brought, (c) will be subject to general principles of equity and, as such,
specific performance and injunctive relief, being equitable remedies, may not be
available, and (d) may not be given effect to by a Bermuda court, whether or not
it was applying the Foreign Laws, if and to the extent they constitute the
payment of an amount which is in the nature of a penalty and not in the nature
of liquidated damages. Notwithstanding any contractual submission to the
jurisdiction of specific courts, a Bermuda court has inherent discretion to stay
or allow proceedings in the Bermuda courts.

We have assumed that at all material times AXIS Specialty will comply with the
conditions attached to its registration as an insurer under the Insurance Act
1978 (the "INSURANCE ACT") and the regulations promulgated thereunder. In
addition, the ability of AXIS Specialty to fulfill its obligations pursuant to
the Credit Agreement will be subject to any directions which may be issued in
respect of AXIS Specialty by the Bermuda Monetary Authority (the "BMA") under
section 32 of the Insurance Act ("SECTION 32"). Such directions may be issued if
it appears to the BMA that the business of AXIS Specialty is being conducted so
that there is a significant risk of AXIS Specialty becoming insolvent or that
AXIS Specialty is in breach of a provision of the Insurance Act or of the
regulations promulgated thereunder or any condition imposed on its registration.
In such circumstances, the BMA may direct AXIS Specialty to take or refrain from

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 3 -

taking any of the steps listed in Section 32, including, INTER ALIA, that AXIS
Specialty cease or limit its underwriting or that there be a prohibition or
restriction on the payment of dividends or other distributions by AXIS
Specialty, and/or the BMA may direct AXIS Specialty to maintain in, or transfer
to and keep in the custody of, a specified bank, assets of AXIS Specialty of
such value and description as are specified in the direction. It should be noted
that the documents of public record maintained by the Registrar of Companies do
not reveal whether a direction under Section 32 has been issued.

We express no opinion as to the enforceability of any provision of the Credit
Agreement which provides for the payment of a specified rate of interest on the
amount of a judgment after the date of judgment or which purports to fetter the
statutory powers of either or both of the Bermuda Account Parties.

We have made no investigation of and express no opinion in relation to the laws
of any jurisdiction other than Bermuda. This opinion is to be governed by and
construed in accordance with the laws of Bermuda and is limited to and is given
on the basis of the current law and practice in Bermuda. This opinion is issued
solely for your benefit and the benefit of the Lenders and is not to be relied
upon by any other person, firm or entity or in respect of any other matter.

On the basis of and subject to the foregoing, we are of the opinion that:

1.   Each of the Bermuda Account Parties is duly incorporated and existing under
     the laws of Bermuda in good standing (meaning solely that it has not failed
     to make any filing with any Bermuda government authority or to pay any
     Bermuda government fee or tax which would make it liable to be struck off
     the Register of Companies and thereby cease to exist under the laws of
     Bermuda).

2.   Each of the Bermunda Account Parties has the necessary corporate power and
     authority to enter into and perform its obligations under the Credit
     Agreement. The execution and delivery of the Credit Agreement by each of
     the Bermuda Account Parties and the performance by each of the Bermunda
     Account Parties of its obligations thereunder will not violate (i) the
     memorandum of association or bye-laws of such Bermuda Account Party or (ii)
     any applicable law, regulation, order or decree in Bermuda.

3.   Each of the Bermunda Account Parties has taken all corporate action
     required to authorise its execution, delivery and performance of the Credit
     Agreement. The Credit Agreement has been duly executed and delivered by or
     on behalf of each of the Bermunda Account Parties, and constitutes the
     valid and binding obligations of each of the Bermunda Account Parties in
     accordance with the terms thereof.

4.   No order, consent, approval, licence, authorisation or validation of or
     exemption by any government or public body or authority of Bermuda or any
     sub-division thereof is required to authorise or is required in connection
     with the execution, delivery, performance and enforcement of the Credit
     Agreement.

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 4 -

5.   Based solely upon a search of the Cause Book of the Supreme Court of
     Bermuda conducted at 11:05 am on 26 March 2003 (which would not reveal
     details of proceedings which have been filed but not actually entered in
     the Cause Book at the time of our search), there are no judgments against
     either Bermuda Account Party, nor any legal or governmental proceedings
     pending in Bermuda to which either Bermuda Account Party is subject.

6.   It is not necessary or desirable to ensure the enforceability in Bermuda of
     the Credit Agreement that they be registered in any register kept by, or
     filed with, any governmental authority or regulatory body in Bermuda.
     However, to the extent that the Credit Agreement creates a charge over
     assets of either Bermuda Account Party, it may be desirable to ensure the
     priority in Bermuda of the charge that it be registered in the Register of
     Charges in accordance with Section 55 of the Companies Act 1981. On
     registration, to the extent that Bermuda law governs the priority of a
     charge, such charge will have priority in Bermuda over any unregistered
     charges created after 11 July 1984, and over any subsequently registered
     charges, in respect of the assets which are the subject of the charge. A
     registration fee of $446 will be payable in respect of the registration.

     While there is no exhaustive definition of a charge under Bermuda law, a
     charge normally has the following characteristics:

     (i)    it is a proprietary interest granted by way of security which
            entitles the chargee to resort to the charged property only for the
            purposes of satisfying some liability due to the chargee (whether
            from the chargor or a third party); and

     (ii)   the chargor retains an equity of redemption to have the property
            restored to him when the liability has been discharged.

     However, as the Credit Agreement is governed by the Foreign Laws, the
     question of whether they would possess these particular characteristics
     would be determined under the Foreign Laws.

7.   There is no income or other tax of Bermuda imposed by withholding or
     otherwise on any payment to be made to or by either Bermuda Account Party
     pursuant to the Credit Agreement. The Credit Agreement will not be subject
     to ad valorem stamp duty in Bermuda and no registration, documentary,
     recording, transfer or other similar tax, fee or charge is payable in
     Bermuda in connection with the execution, delivery, filing, registration or
     performance of the Credit Agreement other than as stated in paragraph 6
     hereof.

8.   The Credit Agreement is an acceptable legal form under the laws of Bermuda
     for enforcement thereof in Bermuda.

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 5 -

9.   The Lenders and the Administrative Agent have standing to bring an action
     or proceedings before the appropriate courts in Bermuda for the enforcement
     of the Credit Agreement. It is not necessary or advisable in order for the
     Lenders or the Administrative Agent to enforce their rights under the
     Credit Agreement, including the exercise of remedies thereunder, that it be
     licensed, qualified or otherwise entitled to carry on business in Bermuda.

10.  Neither Bermuda Account Party is entitled to any immunity under the laws of
     Bermuda, whether characterised as sovereign immunity or otherwise, from any
     legal proceedings to enforce the Credit Agreement in respect of itself or
     its property.

11.  The Lenders or the Administrative Agent will not be deemed to be resident,
     domiciled or carrying on business in Bermuda by reason only of the
     execution, performance and/or enforcement of the Credit Agreement by the
     Lenders or the Administrative Agent.

12.  The choice of the Foreign Laws as the governing law of the Credit Agreement
     is a valid choice of law and would be recognised and given effect to in any
     action brought before a court of competent jurisdiction in Bermuda, except
     for those laws (i) which such court considers to be procedural in nature,
     (ii) which are revenue or penal laws or (iii) the application of which
     would be inconsistent with public policy, as such term is interpreted under
     the laws of Bermuda. The submission in the Credit Agreement to the
     non-exclusive jurisdiction of the Foreign Courts is valid and binding upon
     each of the Bermuda Account Parties.

13.  The courts of Bermuda would recognise as a valid judgment, a final and
     conclusive judgment in personam obtained in the Foreign Courts against
     either of the Bermuda Account Parties based upon the Credit Agreement under
     which a sum of money is payable (other than a sum of money payable in
     respect of multiple damages, taxes or other charges of a like nature or in
     respect of a fine or other penalty) and would give a judgment based thereon
     provided that (a) such courts had proper jurisdiction over the parties
     subject to such judgment, (b) such courts did not contravene the rules of
     natural justice of Bermuda, (c) such judgment was not obtained by fraud,
     (d) the enforcement of the judgment would not be contrary to the public
     policy of Bermuda, (e) no new admissible evidence relevant to the action is
     submitted prior to the rendering of the judgment by the courts of Bermuda
     and (f) there is due compliance with the correct procedures under the laws
     of Bermuda.

Yours faithfully,

CONYERS DILL & PEARMAN

               FORM OF OPINION OF BERMUDA COUNSEL TO AXIS HOLDINGS

<Page>

                                                                     EXHIBIT E-2

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

                                                                  March 27, 2003

To Each of the Parties set forth
  on Schedule A Hereto

        Re: AXIS CAPITAL HOLDINGS LIMITED - $550,000,000 CREDIT AGREEMENT

Ladies and Gentlemen:

          We have acted as New York counsel to AXIS Capital Holdings Limited, a
Bermuda limited liability corporation ("AXIS HOLDINGS"), in connection with the
Credit Agreement, dated as of March 27, 2003 (the "CREDIT AGREEMENT"), among
AXIS Holdings, the Subsidiary Account Parties party thereto (collectively,
together with AXIS Holdings, the "ACCOUNT PARTIES"), the Lenders party thereto
and JPMorgan Chase Bank, as Administrative Agent, providing for the issuance of
Syndicated Letters of Credit for the account of the Account Parties and the
making of Loans to the Account Parties in an aggregate amount not exceeding
 $550,000,000. Capitalized terms not defined herein shall have the meanings set
forth in the Credit Agreement. This opinion letter is being delivered pursuant
to Section 4.01(b)(ii) of the Credit Agreement.

          In rendering the opinions expressed below, we have examined copies,
certified or otherwise identified to our satisfaction, of such documents and
instruments as we have deemed relevant for the purposes of this opinion,
including, without limitation, a copy of the executed Credit Agreement and the
exhibits and schedules attached thereto and the certificates of incorporation
and by-laws of the parties defined below as the U.S. Account Parties.

          In our examination, we have assumed without inquiry the genuineness of
all signatures on all documents examined by us, the authenticity of all
documents submitted to us as originals and the conformity with authentic
original documents of all documents submitted to us as copies. As to any
questions of fact material to our opinion, we have relied upon the factual
representations, warranties and covenants of the Account Parties contained in
the Credit Agreement. We have also assumed (i) the due incorporation and valid
existence of each party to the Credit Agreement (other than each Subsidiary
Account Party referred to in Schedule B hereto (each a "U.S. ACCOUNT PARTY" and
collectively the "U.S. Account Parties")); (ii) the power and authority of each
party to the Credit Agreement (other than each U.S. Account Party) to execute,
deliver and perform its obligations under the Credit Agreement; (iii) the due
authorization, execution and delivery of the Credit Agreement by the parties
thereto (other than the U.S. Account Parties); and (iv) that the Credit
Agreement is the valid and binding agreement of each party thereto (other than
the Account Parties), enforceable against such party in accordance with its
respective terms.

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 2 -

          Based upon and subject to the foregoing and subject also to the
further qualifications, assumptions and limitations set forth herein, we are of
the opinion that:

          1.   Each U.S. Account Party is validly existing and in good standing
     as a corporation under the laws of the jurisdiction of its incorporation.
     Each U.S. Account Party has all requisite corporate power to carry on its
     business as now conducted.

          2.   The Transactions are within each U.S. Account Party's corporate
     powers and have been duly authorized by all necessary corporate and, if
     required, by all necessary shareholder action.

          3.   The Credit Agreement has been duly executed and delivered by each
     U.S. Account Party.

          4.   The Credit Agreement constitutes the valid and binding obligation
     of each Account Party, enforceable against each Account Party in accordance
     with its terms, subject to (a) the effect of any applicable bankruptcy,
     insolvency, reorganization, fraudulent conveyance, rehabilitation,
     reorganization, moratorium, liquidation, conservatorship, transfer or other
     similar laws relating to or affecting the rights of creditors generally,
     (b) general principles of equity (regardless of whether considered in a
     proceeding in equity or at law), including (i) the possible unavailability
     of specific performance, injunctive relief or any other equitable remedy
     and (ii) concepts of materiality, reasonableness, good faith and fair
     dealing, and (c) possible judicial action giving effect to foreign
     governmental actions or foreign laws, in either case, affecting creditors'
     rights. No opinion is expressed in this paragraph as to (x) the
     enforceability in Bermuda of a New York judgment relating to the Credit
     Agreement or the effect of Bermuda law on the enforcement by a Bermuda
     court of a judgment against a Bermuda company or (y) whether a court, other
     than a New York court, would apply the choice of law or choice of forum
     provisions of the Credit Agreement.

          5.   Neither the execution and delivery by the Account Parties of the
     Credit Agreement nor the consummation of the transactions contemplated
     thereby (a) requires any consent or approval of, registration or filing
     with, or any other action by, any Governmental Authority in United States
     of America or the State of New York, (b) violates any provision of any
     United States Federal or New York State law, rule or regulation (including,
     without limitation, Regulations U and X of the Federal Reserve Board)
     applicable to any Account Party, or (c) violates the charter, by-laws or
     other organizational documents of any U.S. Account Party or any Subsidiary
     of any U.S. Account Party.

          6.   To our knowledge, which is based solely on a certificate of AXIS
     Holdings and without independent inquiry, no Account Party is (a) an
     "investment company" as defined in the Investment Company Act of 1940, as
     amended or (b) a "holding company" as defined in the Public Utility Holding
     Company Act of 1935, as amended.

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 3 -

          Our opinions above are subject to the following additional
qualifications and assumptions:

          In connection with our opinion set forth in paragraph 1 as to valid
existence, we have relied solely on certificates of good standing from the
secretaries of state of Illinois and Connecticut and, in the case of the U.S.
Account Party incorporated in New York, on an oral confirmation by a corporation
services company.

          In connection with our opinion set forth in paragraph 5(b), we have
assumed that no Account Party will use the proceeds of any extension of credit
under the Credit Agreement for the purpose of buying or carrying "margin stock"
as defined in Regulation U of the Federal Reserve Board and that no Lender is
subject to Regulation T of the Federal Reserve Board.

          In connection with our opinion set forth in paragraph 6, we have
assumed that (i) no entity which directly or indirectly owns, controls or holds
the power to vote five (5) per centum or more of the outstanding voting
securities of any Account Party also owns, controls or holds the power to vote
five (5) per centum of the outstanding voting securities of any company which
owns or operates any facility used for the generation, transmission or
distribution of electric energy for sale or any facility used for the
distribution at retail of natural or manufactured gas for heat, light or power
and (ii) no entity which owns, holds or controls the power to vote five (5) per
centum or more of the outstanding voting securities of any Account Party has
been determined by the Securities and Exchange Commission, after notice and
opportunity for hearing, to be subject to any provisions of the Public Utility
Holding Company Act of 1935, as amended. As used herein, the term "voting
security" is understood to mean any security or other interest which entitles
the owner or holder to vote in the direction or management of the affairs of a
company.

          We express no opinion as to: (i) the effect of the laws of any
jurisdiction in which any Lender may be located (other than New York State) that
limit the interest, fees or other charges such Lender may impose; (ii) the
enforceability of any indemnification provision insofar as such indemnification
would violate public policy; (iii) the creation or perfection of any security
interest in any cash collateral account that may be established pursuant to
Section 2.03(e) of the Credit Agreement; (iv) Section 2.18 of the Credit
Agreement to the extent that it calls for payments to be made without
recoupment, set-off or counterclaim; (v) Section 10.09(b) of the Credit
Agreement as such Section relates to the subject matter jurisdiction of the
United States Federal Court for the Southern District of New York; (vi) the
waiver of inconvenient forum set forth in Section 10.09(c); and (vii) Section
10.13 of the Credit Agreement providing for additional indemnification for
shortfall due to judgments given in a currency other than Dollars.

          The opinions herein are limited to the Federal law of the United
States and the law of New York State, and we express no opinion as to the effect
on the matters covered in this letter of the laws of any other jurisdiction. Our
opinion set forth in paragraph 2 at to the U.S. Account Parties incorporated in
Illinois and Connecticut is based solely on our review of their organizational
documents. We do not purport to be experts on the law of Bermuda and, to the
extent such law may be relevant to this letter, we have, with your permission
but without having

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 4 -

made any independent investigation with respect thereto, relied solely upon and
assumed the correctness of, and this letter is subject to the qualifications
contained within, the legal opinion of Conyers Dill & Pearman addressed to you
and dated the date hereof.

          The opinions rendered herein are given on the date hereof and such
opinions are rendered only with respect to laws, rules and regulations
thereunder in effect as of such date. This letter is solely for your benefit in
connection with the Credit Agreement and is not to be relied upon, used,
circulated or quoted or otherwise referred to by any other Person (other than
your permitted assignees and participants under the Credit Agreement) or for any
other purpose without our prior written consent.

                                     Very truly yours,

                                     LEBOEUF, LAMB, GREENE &
                                     MACRAE, LLP

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 5 -

                                                                      SCHEDULE A

                                   ADDRESSEES

JPMorgan Chase Bank, as Administrative Agent and Lender

Citibank, N.A.

The Bank of New York

Barclays Bank PLC

Credit Lyonnais New York Branch

ING Bank N.V., London Branch

Wachovia Bank, National Association

Fleet National Bank

Lloyds TSB Bank PLC

Deutsche Bank AG, New York and/or Cayman Islands Branch

Comerica Bank

ABN Amro Bank N.V.

The Royal Bank of Scotland PLC

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                      - 6 -

                                                                      SCHEDULE B

                              U.S. ACCOUNT PARTIES

AXIS Reinsurance Company

AXIS Specialty Insurance Company

Sheffield Insurance Company

              FORM OF OPINION OF NEW YORK COUNSEL TO AXIS HOLDINGS

<Page>

                                                                       EXHIBIT F

          FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO JPMORGAN CHASE

                                                                  March 27, 2003

To the Lenders party to the Credit Agreement referred to below and JPMorgan
Chase Bank, as Administrative Agent

Ladies and Gentlemen:

          We have acted as special New York counsel to JPMorgan Chase Bank
("JPMORGAN CHASE") in connection with the Credit Agreement (the "CREDIT
AGREEMENT") dated as of March 27, 2003 among AXIS Capital Holdings Limited
("AXIS Holdings"), the subsidiary account parties party thereto (collectively,
together with AXIS Holdings, the "ACCOUNT Parties"), the lenders party thereto
and JPMorgan Chase, as Administrative Agent, providing for extensions of credit
to be made by said lenders to the Account Parties in an aggregate principal or
face amount not exceeding $550,000,000. Terms defined in the Credit Agreement
are used herein as defined therein. This opinion letter is being delivered
pursuant to Section 4.01(c) of the Credit Agreement.

          In rendering the opinions expressed below, we have examined the Credit
Agreement. In our examination, we have assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and
the conformity with authentic original documents of all documents submitted to
us as copies. When relevant facts were not independently established, we have
relied upon representations made in or pursuant to the Credit Agreement. We have
also assumed that all authorizations, approvals or consents of (including any
exchange control approval), and all filings or registrations with, any
governmental or regulatory authority or agency of Bermuda (including of the
Bermuda Monetary Authority) or any other jurisdiction of organization of any
Account Party have been obtained and are in effect.

          In rendering the opinions expressed below, we have assumed, with
respect to all of the documents referred to in this opinion letter, that:

          (i)   such documents have been duly authorized by, have been duly
                executed and delivered by, and (except to the extent set forth
                in the opinions expressed below as to each Account Party)
                constitute legal, valid, binding and enforceable obligations of,
                all of the parties to such documents;

          (ii)  all signatories to such documents have been duly authorized; and

          (iii) all of the parties to such documents are duly organized and
                validly existing and have the power and authority (corporate or
                other) to execute, deliver and perform such documents.

          FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO JPMORGAN CHASE

<Page>

                                      - 2 -

          Based upon and subject to the foregoing and subject also to the
comments and qualifications set forth below, and having considered such
questions of law as we have deemed necessary as a basis for the opinions
expressed below, we are of the opinion that the Credit Agreement constitutes the
legal, valid and binding obligation of each Account Party, enforceable against
each Account Party in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
moratorium or other similar laws relating to or affecting the rights of
creditors generally (including the possible judicial application of foreign laws
or governmental action affecting the enforcement of creditors' rights) and
except as the enforceability of the Credit Agreement is subject to the
application of general principles of equity (regardless of whether considered in
a proceeding in equity or at law), including (a) the possible unavailability of
specific performance, injunctive relief or any other equitable remedy and (b)
concepts of materiality, reasonableness, good faith and fair dealing.

          The foregoing opinions are subject to the following comments and
qualifications:

          (A) The enforceability of Section 10.03 of the Credit Agreement may be
     limited by (i) laws rendering unenforceable indemnification contrary to
     Federal or state securities laws and the public policy underlying such laws
     and (ii) laws limiting the enforceability of provisions exculpating or
     exempting a party, or requiring indemnification of a party for, liability
     for its own action or inaction, to the extent the action or inaction
     involves gross negligence, recklessness, willful misconduct or unlawful
     conduct.

          (B) The enforceability of provisions in the Credit Agreement to the
     effect that terms may not be waived or modified except in writing may be
     limited under certain circumstances.

          (C) We express no opinion as to (i) the effect of the laws of any
     jurisdiction in which any Lender is located (other than the State of New
     York) that limit the interest, fees or other charges such Lender may
     impose, (ii) the last sentence of Section 2.18(d), (iii) the first sentence
     of Section 10.09(b) of the Credit Agreement, insofar as such sentence
     relates to the subject matter jurisdiction of the United States District
     Court for the Southern District of New York to adjudicate any controversy
     related to the Credit Agreement, (iv) the waiver of inconvenient forum set
     forth in Section 10.09(c) of the Credit Agreement with respect to
     proceedings in the United States District Court for the Southern District
     of New York, (v) Section 10.09(e) of the Credit Agreement to the extent it
     purports to be a waiver of immunity acquired after the execution and
     delivery of the Credit Agreement and (vi) Section 10.13 of the Credit
     Agreement.

          The foregoing opinions are limited to matters involving the Federal
laws of the United States of America and the law of the State of New York, and
we do not express any opinion as to the laws of any other jurisdiction.

          At the request of our client, this opinion letter is, pursuant to
Section 4.01(c) of the Credit Agreement, provided to you by us in our capacity
as special New York counsel to JPMorgan Chase and may not be relied upon by any
Person for any purpose other than in

          FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO JPMORGAN CHASE

<Page>

                                      - 3 -

connection with the transactions contemplated by the Credit Agreement without,
in each instance, our prior written consent.

                                              Very truly yours,

WJM/WRC

          FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO JPMORGAN CHASE

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