Document:

EX-4.15

 

Exhibit 4.15

AGREEMENT

     This
Agreement (“Agreement”) is effective as of
August 10, 2007 (the “Effective
Date”), by and among Max Capital Group Ltd., a Bermuda holding company (the “Requesting Party”),
located at Max House, 2 Front Street, Hamilton HM 11, Bermuda, Max Capital Trust I, a Delaware
Trust (“Trust”), located at 9020 Stony Point Parkway, Suite 325, Richmond, Virginia 23235, and C T
Corporation Staffing, Inc., a Delaware corporation (“CT”), located at 1209 Orange Street,
Wilmington, Delaware 19801.

     WHEREAS, CT provides the service of acting as “trustee in state” under the Delaware Business
Trust Act under certain limited circumstances; and

     WHEREAS, Requesting Party has requested that CT provide such service with respect to the Trust
under the circumstances set forth in Rider A attached hereto; and

     WHEREAS, CT and the Trust have agreed that CT shall provide such service.

     NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows.

     1. Contract Period and Termination. The term of this Agreement will be initially for one (1)
year from the Effective Date and will be automatically extended for successive one (1) year
periods, unless at anytime any party elects to terminate this Agreement and gives at least thirty
(30) days prior written notice of termination to each other party.

     2. Services. At the request of the Requesting Party, the Trust hereby retains CT to serve the
Trust solely to fulfill the Trust’s obligation pursuant to Section 3807(a) of the Delaware
Statutory Trust Act (the “Act”) to have at least one trustee who has its principal place of
business in the State of Delaware, subject to the terms and conditions of this Agreement.

     3. Fees. During the term of this Agreement, the Trust shall pay CT on the Effective Date, and
on every annual anniversary of the Effective Date thereafter, the then-current annual fee in
effect. Such annual fee may be reviewed and revised on an annual basis at the sole discretion of
CT. In the event of an early termination of this Agreement by CT, CT will provide a pro-rata
refund of any fees paid in advance for the year in which such termination is effectuated. In
addition, the Trust shall promptly reimburse CT for any expense incurred under or relating to this
Agreement or the services of CT, including the fees and expenses of outside counsel or other
advisors retained by CT.

     4. Obligations of the Trust. The Trust agrees to take each of the following actions:

     a. Upon termination of this Agreement, not to obstruct or otherwise interfere with the
resignation by CT as a trustee of the Trust;

     b. Upon the Effective Date, name CT as an insured party under the Trust’s errors and
omissions liability insurance policy (if applicable) in a manner acceptable to CT in the
reasonable exercise of its discretion and deliver a certificate to

 

 

CT evidencing such
coverage, and maintain such policy during the term of this Agreement or notify CT of any
material changes thereto, including changes in the amount or conditions of coverage; and

     c. In the event any matter comes before CT in its capacity as trustee for its
consideration, the Trust agrees, upon the request of CT and at its sole discretion, to
provide CT with reasonable time and assistance to investigate the matter and perform
adequate due diligence in connection therewith. Such due diligence may include, at CT’s
sole discretion, the engagement of independent legal counsel or other advisors to provide
additional guidance and assistance to CT.

     5. Governing Instrument of Trust. The Trust and the Requesting Party hereby agree to the
terms and conditions of the following italicized language in this Paragraph. The declaration of
trust (or other governing instrument) of the Trust (the “Declaration of Trust”) shall include or be
amended to include the following italicized language or language substantially similar thereto:

CT is serving the Trust solely to fulfill the Trust’s obligation pursuant to Section
3807(a) of the Act to have at least one trustee who has its principal place of
business in the State of Delaware;

the Trust shall have at least one other trustee other than CT to perform all
obligations and duties other than fulfilling the Trust’s obligations pursuant to
Section 3807(a) of the Act;

CT shall not be liable to the Trust or its beneficiaries for any of its acts or
omissions except for acts or omissions constituting bad faith or willful misconduct;

CT shall not have any duty or obligation to manage or deal with the Trust’s
property, or to otherwise take or refrain from taking any action under, or in
connection with, any document contemplated hereby to which CT is a party, except as
expressly provided by the terms of this Declaration of Trust, and no implied duties
or obligations shall be read herein against CT, including without limitation that no
action requested of CT shall require the performance of any investigation, analysis,
or other due diligence activities by CT in respect to such action or the performance
of its duties on behalf of the Trust generally;

pursuant to Section 3803(b) of the Act, CT shall not be liable to any person other
than the Trust or a beneficiary of the Trust for any act, omission or obligation of
the Trust or any trustee thereof and all persons having any claim against CT by
reason of the transactions contemplated by this Declaration of Trust or any other
agreement or instrument related to the Trust shall look only to the Trust’s property
for payment or satisfaction thereof; and

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pursuant to Section 3806(c) of the Act, to the extent that at law or in equity CT,
as trustee, has duties (including fiduciary duties) and liabilities relating to the
Trust or to beneficiaries thereof, CT’s duties and liabilities are hereby eliminated
and restricted to the fullest extent allowable under applicable law and CT shall not
be liable to the Trust or to any beneficial owner of the Trust for any action taken
in good faith reliance on the terms of this Declaration of Trust.

All capitalized terms in the above italicized language not otherwise defined in the above
italicized language, shall be defined in the Declaration of Trust or other governing instrument to
have the same meaning as set forth in this Agreement.

     6. Indemnification. The Trust and the Requesting Party, and their respective affiliates
(collectively, the “Indemnifying Party”), shall jointly and severally indemnify, defend and hold
CT, its affiliated companies, and all of such companies’ employees, agents, officers and directors
(collectively, the “Indemnified Parties”) harmless from and against any and all claims, actions,
suits, demands, assessments, judgments, losses, liabilities, damages, costs, taxes, and expenses
(including, without limitation, reasonable attorneys’ and accounting fees and investigation costs)
that may be incurred by the Indemnified Parties arising out of or relating to any breach of any
representation or warranty, covenant, obligation or agreement of the Indemnifying Party contained
herein or in the Declaration of Trust or in anyway arising from the services provided or functions
performed by CT hereunder or thereunder, other than those arising solely from the bad faith or
willful misconduct of CT. In any event of the foregoing, CT may elect to retain counsel of its
choosing to represent the Indemnified Parties, and the Indemnifying Party shall pay such retained
counsel the reasonable fees associated therewith. In the event CT or any of its employees is
called upon to investigate or provide testimony in a matter to which this indemnity applies, it
shall be entitled to be reimbursed the reasonable charges related thereto.

     7. Covenant Not to Sue. Each of the Trust and the Requesting Party, and their respective
affiliates, represents, agrees and covenants that it will not file any complaint, proceeding,
lawsuit, or other legal or equitable action against CT based upon or arising out of any of the
services provided by CT hereunder or the Declaration of Trust, other than for reason of alleged bad
faith or willful misconduct by CT.

     8. Additional Representations, Warranties and Covenants of Trust and Requesting Party. Each
of the Trust and the Requesting Party represents, warrants and covenants to CT and to each other
that, as of the Effective Date: (i) it has the right, power, and authority to enter into and to
perform its obligations under this Agreement; (ii) the execution, delivery and performance by it of
this Agreement have been duly authorized by all necessary trust or corporate action on its part;
and (iii) this Agreement constitutes its legal, valid, and binding obligation, enforceable against
it in accordance with its terms. In addition, the Trust represents, warrants and covenants to CT
that it has taken all appropriate acts under its Declaration of Trust to duly appoint CT to serve
as a trustee. The Trust and the Requesting Party
acknowledge that CT has expressly relied on each of the foregoing representations, warranties,
and covenants in entering into this Agreement.

3

 

     9. Independent Contractor Status and Authority. Each party to this Agreement hereby agrees,
and represents and warrants, that it is an independent contractor and is not any other party’s
agent or employee or partner or joint venturer for any purpose whatsoever.

     10. Governing Law. This Agreement and the rights and duties of the parties hereto shall be
governed by the laws of the State of Delaware (without regard to principles of conflicts of law).

     11. Additions or Modifications. No additions or modifications from the terms and conditions
of this Agreement will be binding upon any party hereto unless agreed to in writing by each party
hereto.

     12. Assignment. No party may assign its rights and obligations under this Agreement without
the prior written consent of each other party.

     13. Notices. All notices, requests, consents and invoices required or permitted under this
Agreement shall be in writing and delivered personally or sent by mail to the applicable party at
the addresses set forth on the first page of this Agreement or at such other address as shall be
given to each other party in writing.

     14. No Damages. Each of the Requesting Party and the Trust agrees that in no event shall CT
be liable for lost profits, third-party claims or consequential or exemplary damages or, in
addition thereto, for any matters relating to any actions taken by the Trust prior to the Effective
Date.

     15. Entire Agreement. This Agreement represents the entire understanding of the parties with
respect to the specific subject matter of this Agreement and supersedes all previous
understandings, written or oral, among the parties with respect to such subject matter.

[signature page follows]

4

 

[Signature Page to Trust Agreement]

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

	 	 	 	 	 	 	 
	 	 	MAX CAPITAL GROUP LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Peter Minton	 	 
	 

	 	Name:
	 	 

Peter Minton
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Executive Vice President and Chief
Operating Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	/s/ Peter Minton	 	 
	 	 	 	 	 
	 	 	as Regular Trustee	 	 
	 

	 	Name:	 	Peter Minton	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	/s/ Joseph Roberts	 	 
	 	 	 	 	 
	 	 	as Regular Trustee	 	 
	 

	 	Name:	 	Joseph Roberts	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	C T CORPORATION STAFFING, INC.,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jennifer A. Schwartz	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Jennifer A. Schwartz	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

5

 

EXHIBIT A

DECLARATION OF TRUST OF MAX CAPITAL TRUST I

6

 

EXHIBIT B

CERTIFICATE OF TRUST OF MAX CAPITAL TRUST I

7EX-4.16

 

Exhibit 4.16

      

FORM OF

PREFERRED SECURITIES GUARANTEE AGREEMENT

MAX CAPITAL GROUP LTD.

Dated as of [ ]

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INTERPRETATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Definitions and Interpretation 
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 TRUST INDENTURE ACT
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Trust Indenture Act; Application
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.02. Lists of Holders of Securities
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.03. Reports by the Preferred Guarantee Trustee
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.04. Periodic Reports to Preferred Guarantee Trustee
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.05. Evidence of Compliance with Conditions Precedent
	 	 	5	 
	 
	 	 	 	 
	SECTION 2.06. Events of Default; Waiver
	 	 	5	 
	 
	 	 	 	 
	SECTION 2.07. Event of Default; Notice
	 	 	5	 
	 
	 	 	 	 
	SECTION 2.08. Conflicting Interests
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3 POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Powers and Duties of the Preferred Guarantee Trustee
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.02. Certain Rights of Preferred Guarantee Trustee
	 	 	7	 
	 
	 	 	 	 
	SECTION 3.03. Not Responsible for Recitals or Issuance of Guarantee
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 4 PREFERRED GUARANTEE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Preferred Guarantee Trustee; Eligibility
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.02. Appointment, Removal and Resignation of Preferred Guarantee Trustee
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 5 GUARANTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Guarantee
	 	 	10	 
	 
	 	 	 	 
	SECTION 5.02. Waiver of Notice and Demand
	 	 	10	 
	 
	 	 	 	 
	SECTION 5.03. Obligations Not Affected
	 	 	10	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 5.04. Rights of Holders
	 	 	11	 
	 
	 	 	 	 
	SECTION 5.05. Guarantee of Payment
	 	 	11	 
	 
	 	 	 	 
	SECTION 5.06. Subrogation
	 	 	12	 
	 
	 	 	 	 
	SECTION 5.07. Independent Obligations
	 	 	12	 
	 
	 	 	 	 
	SECTION 5.08. Net Payments
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 6 LIMITATION OF TRANSACTIONS; SUBORDINATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Limitation of Transactions
	 	 	13	 
	 
	 	 	 	 
	SECTION 6.02. Ranking
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 7 TERMINATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Termination
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 8 INDEMNIFICATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Exculpation
	 	 	14	 
	 
	 	 	 	 
	SECTION 8.02. Indemnification
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 9 MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Successors and Assigns
	 	 	16	 
	 
	 	 	 	 
	SECTION 9.02. Amendments
	 	 	16	 
	 
	 	 	 	 
	SECTION 9.03. Notices
	 	 	16	 
	 
	 	 	 	 
	SECTION 9.04. Benefit
	 	 	17	 
	 
	 	 	 	 
	SECTION 9.05. Governing Law
	 	 	17	 

ii

 

PREFERRED SECURITIES GUARANTEE AGREEMENT

     This PREFERRED SECURITIES GUARANTEE AGREEMENT (the “Preferred Securities Guarantee”), dated as
of [   ], is executed and delivered by Max Capital Group Ltd., a company incorporated
in Bermuda as a holding company (the “Guarantor”), and [   ], as trustee (the “Preferred Guarantee Trustee”), for the benefit of the Holders (as defined
herein) from time to time of the Preferred Securities (as defined herein) of Max Capital Trust I, a
Delaware statutory trust (the “Issuer”).

     WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated
as of [   ], among the trustees of the Issuer named therein, the Guarantor, as Sponsor, and
the holders from time to time of undivided beneficial interests in the assets of the Issuer, the
Issuer is issuing on the date hereof [ ] Preferred Securities, having an aggregate stated
liquidation preference of [ ], designated the [ ]% Preferred Securities (the “Preferred
Securities”); and

     WHEREAS, as incentive for the Holders to purchase the Preferred Securities, the Guarantor
desires irrevocably and unconditionally to agree, to the extent set forth in this Preferred
Securities Guarantee, to pay to the Holders the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase by each Holder of Preferred Securities, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Preferred Securities Guarantee for the benefit of the Holders.

ARTICLE 1

DEFINITIONS AND INTERPRETATION

     SECTION 1.01. Definitions and Interpretation.

     In this Preferred Securities Guarantee, unless the context otherwise requires:

     (a) Capitalized terms used in this Preferred Securities Guarantee but not defined in the
preamble above have the respective meanings assigned to them in this Section 1.01;

     (b) a term defined anywhere in this Preferred Securities Guarantee has the same meaning
throughout;

     (c) all references to “the Preferred Securities Guarantee” or “this Guarantee” are to this
Preferred Securities Guarantee as modified, supplemented or amended from time to time;

     (d) all references in this Preferred Securities Guarantee to Articles and Sections are to
Articles and Sections of this Preferred Securities Guarantee unless otherwise specified;

     (e) a term defined in the Trust Indenture Act has the same meaning when used in this Preferred
Securities Guarantee unless otherwise defined in this Preferred Securities Guarantee or unless the
context otherwise requires; and

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     (f) a reference to the singular includes the plural and vice versa.

     “Additional Amounts” means any additional amounts which are required hereby or by the terms of
the Preferred Securities, under circumstances specified herein or therein, to be paid by the
Guarantor in respect of certain taxes, assessments or other governmental charges imposed on Holders
specified therein and which are owing to such Holders.

     “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act of
1933, as amended, or any successor rule thereunder.

     “Common Securities” means the common securities representing common undivided beneficial
interests in the assets of the Issuer.

     “Covered Person” means any Holder or beneficial owner of Preferred Securities.

     “Debentures” means the series of junior subordinated debentures of the Guarantor designated [
]% Junior Subordinated Debentures due [   ] held by the Institutional Trustee of the
Issuer (as defined in the Declaration).

     “Event of Default” means a default by the Guarantor on any of its payment or other obligations
under this Preferred Securities Guarantee.

     “Guarantee Payments” means the following payments or distributions, without duplication, with
respect to the Preferred Securities, to the extent not paid or made by the Issuer: (i) any accrued
and unpaid Distributions (as defined in Annex I to the Declaration) that are required to be paid on
such Preferred Securities to the extent the Issuer has funds available therefor, (ii) the amount
payable upon redemption to the extent the Issuer has funds available therefor, with respect to any
Preferred Securities called for redemption by the Issuer, and (iii) upon a voluntary or involuntary
dissolution, winding-up or termination of the Issuer (other than in connection with the
distribution of Debentures to the Holders in exchange for Preferred Securities as provided in the
Declaration or the redemption of all of the Preferred Securities upon the maturity or redemption of
all of the Debentures as provided in the Declaration), the lesser of (a) the aggregate of the
liquidation preference and all accrued and unpaid Distributions on the Preferred Securities to the
date of payment, to the extent the Issuer shall have funds available therefor, and (b) the amount
of assets of the Issuer remaining available for distribution to Holders upon liquidation of the
Issuer (in either case, the “Liquidation Distribution”).

     “Holder” shall mean any holder, as registered on the books and records of the Issuer of any
Preferred Securities; provided, however, that, in determining whether the holders of the requisite
percentage of Preferred Securities have given any request, notice, consent or waiver hereunder,
“Holder” shall not include the Guarantor or any Affiliate of the Guarantor.

     “Indemnified Person” means the Preferred Guarantee Trustee, any Affiliate of the Preferred
Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees,
representatives or agents of the Preferred Guarantee Trustee.

2

 

     “Indenture” means the Indenture dated as of [     ], among the Guarantor (the
“Debenture Issuer”) and [     ], as trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued to the Institutional Trustee of the
Issuer.

     “Majority in liquidation preference of the Securities” means, except as provided by the Trust
Indenture Act, Holders, voting separately as a class, representing more than 50% of the stated
liquidation preference (including the stated amount that would be paid on redemption, liquidation
or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages
are determined) of all Preferred Securities.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by two duly
authorized officers of such Person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Preferred Securities Guarantee shall include:

     (a) a statement that each officer signing the Officers’ Certificate has read the covenant or
condition and the definition relating thereto;

     (b) a brief statement of the nature and scope of the examination or investigation undertaken
by each officer in rendering the Officers’ Certificate;

     (c) a statement that each such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

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

     “Person” means a legal person, including any individual, corporation, estate, company, limited
liability company, trust, partnership, limited liability partnership, joint venture, association,
joint stock company, unincorporated association, or government or any agency or political
subdivision thereof, or any other entity of whatever nature.

     “Preferred Guarantee Trustee” means [     ] until a Successor Preferred
Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of
this Preferred Securities Guarantee and thereafter means each such Successor Preferred Guarantee
Trustee.

     “Responsible Officer” means, with respect to the Preferred Guarantee Trustee, any
vice-president, any assistant vice-president, any assistant treasurer, any trust officer or
assistant trust officer or any other officer of the Preferred Guarantee 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 that officer’s knowledge of and familiarity with the particular subject.

     “Successor Preferred Guarantee Trustee” means a successor Preferred Guarantee Trustee
possessing the qualifications to act as Preferred Guarantee Trustee under Section 4.1.

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     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time to time, or
any successor legislation.

ARTICLE 2

TRUST INDENTURE ACT

     SECTION 2.01. Trust Indenture Act; Application.

     (a) This Preferred Securities Guarantee is subject to the provisions of the Trust Indenture
Act that are required to be part of this Preferred Securities Guarantee, which are incorporated by
reference hereto, and shall, to the extent applicable, be governed by such provisions; and

     (b) if and to the extent that any provision of this Preferred Securities Guarantee limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties shall control.

     SECTION 2.02. Lists of Holders of Securities.

     (a) The Guarantor shall provide the Preferred Guarantee Trustee (i) within 15 days after each
record payment date of Distributions, a list, in such form as the Preferred Guarantee Trustee may
reasonably require, of the names and addresses of the Holders (“List of Holders”) as of such date,
and (ii) at any other time, within 30 days of receipt by the Guarantor of a written request for a
List of Holders as of a date no more than 15 days before such List of Holders is given to the
Preferred Guarantee Trustee, provided that the Guarantor shall not be obligated to provide such
List of Holders at any time the List of Holders does not differ from the most recent List of
Holders given to the Preferred Guarantee Trustee by the Guarantor. The Preferred Guarantee Trustee
may destroy any List of Holders previously given to it on receipt of a new List of Holders.

     (b) The Preferred Guarantee Trustee shall comply with its obligations under Sections 311(a),
311(b) and 312(b) of the Trust Indenture Act.

     SECTION 2.03. Reports by the Preferred Guarantee Trustee.

     Within 60 days after May 15 of each year, the Preferred Guarantee Trustee shall provide to the
Holders such reports, if any, as are required by Section 313 of the Trust Indenture Act in the form
and in the manner provided by Section 313 of the Trust Indenture Act. The Preferred Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act.

     SECTION
2.04. 3Periodic Reports to Preferred Guarantee Trustee.

     The Guarantor shall provide to the Preferred Guarantee Trustee such documents, reports and
information, if any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in the manner and at
the times required by Section 314 of the Trust Indenture Act.

4

 

     SECTION 2.05. Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Preferred Guarantee Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Preferred Securities Guarantee that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) may be
given in the form of an Officers’ Certificate.

     SECTION 2.06. Events of Default; Waiver.

     The Holders of a Majority in liquidation preference of Preferred Securities may, by vote, on
behalf of the Holders of all of the Preferred Securities, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose of this Preferred
Securities Guarantee, but no such waiver shall extend to any subsequent or other default or Event
of Default or impair any right consequent thereon.

     SECTION 2.07. Event of Default; Notice.

     (a) The Preferred Guarantee Trustee shall, within 90 days after the occurrence of an Event of
Default, transmit by mail, first class postage prepaid, to the Holders, notices of all Events of
Default known to a Responsible Officer of the Preferred Guarantee Trustee, unless such defaults
have been cured before the giving of such notice, provided, that, the Preferred Guarantee Trustee
shall be protected in withholding such notice if and so long as or a Responsible Officer of the
Preferred Guarantee Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders.

     (b) The Preferred Guarantee Trustee shall not be deemed to have knowledge of any Event of
Default except any Event of Default as to which the Preferred Guarantee Trustee shall have received
written notice or a Responsible Officer charged with the administration of the Declaration shall
have received written notice.

     SECTION 2.08. Conflicting Interests.

     The Declaration shall be deemed to be specifically described in this Preferred Securities
Guarantee for the purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

ARTICLE 3

POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE

     SECTION 3.01. Powers and Duties of the Preferred Guarantee Trustee.

     (a) This Preferred Securities Guarantee shall be held by the Preferred Guarantee Trustee for
the benefit of the Holders, and the Preferred Guarantee Trustee shall not transfer its rights,
title and interest in this Preferred Securities Guarantee to any Person except a Holder exercising
his or her rights pursuant to Section 5.04(b) or to a Successor Preferred Guarantee Trustee on
acceptance by such Successor Preferred Guarantee Trustee of its appointment to act as Successor

5

 

Preferred Guarantee Trustee. The right, title and interest of the Preferred Guarantee Trustee
shall automatically vest in any Successor Preferred Guarantee Trustee, and such vesting and
cessation of title shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Preferred Guarantee Trustee.

     (b) Upon written notice that an Event of Default has occurred and is continuing, the Preferred
Guarantee Trustee shall enforce this Preferred Securities Guarantee for the benefit of the Holders
of the Preferred Securities.

     (c) The Preferred Guarantee Trustee, before the occurrence of any Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Preferred Securities Guarantee, and no implied
covenants shall be read into this Preferred Securities Guarantee against the Preferred Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to
Section 2.06), the Preferred Guarantee Trustee shall exercise such of the rights and powers vested
in it by this Preferred Securities Guarantee, and use the same degree of care and skill in its
exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs.

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

     (i) prior to the occurrence of any Event of Default and after the curing or waiving of
all such Events of Default that may have occurred:

     (A) the duties and obligations of the Preferred Guarantee Trustee shall be
determined solely by the express provisions of this Preferred Securities Guarantee,
and the Preferred Guarantee Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Preferred
Securities Guarantee, and no implied covenants or obligations shall be read into
this Preferred Securities Guarantee against the Preferred Guarantee Trustee; and

     (B) in the absence of bad faith on the part of the Preferred Guarantee Trustee,
the Preferred Guarantee Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Preferred Guarantee Trustee and conforming
to the requirements of this Preferred Securities Guarantee; but in the case of any
such certificates or opinions that by any provision hereof are specifically required
to be furnished to the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Preferred Securities Guarantee;

     (ii) the Preferred Guarantee Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer of the Preferred Guarantee Trustee, unless it

6

 

shall be proved that the Preferred Guarantee Trustee was negligent in ascertaining the
pertinent facts upon which such judgment was made;

     (iii) the Preferred Guarantee 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 not less than a Majority in liquidation preference of the Preferred Securities at
the time outstanding, relating to the time, method and place of conducting any proceeding
for any remedy available to the Preferred Guarantee Trustee, or exercising any trust or
power conferred upon the Preferred Guarantee Trustee under this Preferred Securities
Guarantee; and

     (iv) no provision of this Preferred Securities Guarantee shall require the Preferred
Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of its rights or
powers, if the Preferred Guarantee Trustee shall have reasonable grounds for believing that
the repayment of such funds or liability is not reasonably assured to it under the terms of
this Preferred Securities Guarantee or indemnity satisfactory to it against such risk or
liability is not reasonably assured to it.

     SECTION 3.02. Certain Rights of Preferred Guarantee Trustee.

     (a) Subject to the provisions of Section 3.01:

     (i) the Preferred Guarantee Trustee may conclusively rely and shall be fully 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, sent or presented by the proper party or parties;

     (ii) any direction or act of the Preferred Securities Guarantor contemplated by this
Preferred Securities Guarantee shall be sufficiently evidenced by an Officers’ Certificate;

     (iii) whenever, in the administration of this Preferred Securities Guarantee, the
Preferred Guarantee Trustee shall deem it desirable that a matter be proved or established
before taking, suffering or omitting any action hereunder, the Preferred Guarantee Trustee
(unless other evidence is herein specifically prescribed) may, in the absence of bad faith
on its part, request and conclusively rely upon an Officers’ Certificate which, upon receipt
of such request, shall be promptly delivered by the Guarantor;

     (iv) the Preferred Guarantee Trustee shall have no duty to see to any recording, filing
or registration of any instrument (or any rerecording, refiling or registration thereof);

     (v) the Preferred Guarantee Trustee may consult with counsel of its selection, and the
advice or opinion of such counsel with respect to legal matters 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 accordance with such advice or opinion. Such counsel may be
counsel to the Guarantor or any of its Affiliates and may include any of

7

 

the Guarantor’s employees. The Preferred Guarantee Trustee shall have the right at any
time to seek instructions concerning the administration of this Preferred Securities
Guarantee from any court of competent jurisdiction;

     (vi) the Preferred Guarantee Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Preferred Securities Guarantee at the request or
direction of any Holder, unless such Holder shall have provided to the Preferred Guarantee
Trustee such adequate security and indemnity satisfactory to it, against the costs, expenses
(including reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in complying with such request or direction, including such reasonable advances as may
be requested by the Preferred Guarantee Trustee; provided that nothing contained in this
Section 3.02(a)(vi) shall be taken to relieve the Preferred Guarantee Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights and powers
vested in it by this Preferred Securities Guarantee;

     (vii) the Preferred Guarantee 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 Preferred Guarantee Trustee may make such
further inquiry or investigation into such facts or matters as it may see fit;

     (viii) the Preferred Guarantee 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 Preferred Guarantee 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;

     (ix) any action taken by the Preferred Guarantee Trustee or its agents hereunder shall
bind the Holders of the Preferred Securities, and the signature of the Preferred Guarantee
Trustee or its agents alone shall be sufficient and effective to perform any such action.
No third party shall be required to inquire as to the authority of the Preferred Guarantee
Trustee to so act or as to its compliance with any of the terms and provisions of this
Preferred Securities Guarantee, both of which shall be conclusively evidenced by the
Preferred Guarantee Trustee’s or its agent’s taking such action; and

     (x) whenever in the administration of this Preferred Securities Guarantee the Preferred
Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing
any remedy or right or taking any other action hereunder, the Preferred Guarantee Trustee
(i) may request instructions from the Holders of a Majority in liquidation preference of the
Preferred Securities or the Guarantor, (ii) may refrain from enforcing such remedy or right
or taking such other action until such instructions are received, and (iii) shall be
protected in acting in accordance with such instructions.

     (b) No provision of this Preferred Securities Guarantee shall be deemed to impose any duty or
obligation on the Preferred Guarantee Trustee to perform any act or acts or exercise any right,
power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be
illegal, or in which the Preferred Guarantee Trustee shall be unqualified or incompetent in

8

 

accordance with applicable law, to perform any such act or acts or to exercise any such right,
power, duty or obligation. No permissive power or authority available to the Preferred Guarantee
Trustee shall be construed to be a duty.

     SECTION 3.03. Not Responsible for Recitals or Issuance of Guarantee.

     The recitals contained in this Preferred Securities Guarantee shall be taken as the statements
of the Guarantor, and the Preferred Guarantee Trustee does not assume any responsibility for their
correctness. The Preferred Guarantee Trustee makes no representations as to the validity or
sufficiency of this Preferred Securities Guarantee.

ARTICLE 4

PREFERRED GUARANTEE TRUSTEE

     SECTION 4.01. Preferred Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Preferred Guarantee Trustee which shall:

     (i) not be an Affiliate of the Guarantor; and

     (ii) be a corporation organized and doing business under the laws of the United States
of America or any State or Territory thereof or of the District of Columbia, or a
corporation or Person permitted by the Securities and Exchange Commission to act as an
institutional trustee under the Trust Indenture Act, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least 50 million U.S.
dollars ($50,000,000), and subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the supervising or
examining authority referred to above, then, for the purposes of this Section 4.01(a)(ii),
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.

     (b) If at any time the Preferred Guarantee Trustee shall cease to be eligible to so act under
Section 4.01(a), the Preferred Guarantee Trustee shall immediately resign in the manner and with
the effect set out in Section 4.02(c).

     (c) If the Preferred Guarantee Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Preferred Guarantee Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

     SECTION 4.02. Appointment, Removal and Resignation of Preferred Guarantee Trustee.

     (a) Subject to Section 4.02(b), the Preferred Guarantee Trustee may be appointed or removed
without cause at any time by the Guarantor.

     (b) The Preferred Guarantee Trustee shall not be removed in accordance with Section 4.02(a)
until a Successor Preferred Guarantee Trustee has been appointed and has

9

 

accepted such appointment by written instrument executed by such Successor Preferred Guarantee
Trustee and delivered to the Guarantor.

     (c) The Preferred Guarantee Trustee appointed to office shall hold office until a Successor
Preferred Guarantee Trustee shall have been appointed or until its removal or resignation. The
Preferred Guarantee Trustee may resign from office (without need for prior or subsequent
accounting) by an instrument in writing executed by the Preferred Guarantee Trustee and delivered
to the Guarantor, which resignation shall not take effect until a Successor Preferred Guarantee
Trustee has been appointed and has accepted such appointment by instrument in writing executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor and the resigning
Preferred Guarantee Trustee.

     (d) If no Successor Preferred Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 4.02 within 60 days after delivery to the Guarantor of an
instrument of resignation, the resigning Preferred Guarantee Trustee may petition any court of
competent jurisdiction at the expense of the Guarantor for appointment of a Successor Preferred
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a Successor Preferred Guarantee Trustee.

ARTICLE 5

GUARANTEE

     SECTION 5.01. Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when
due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or
assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment
of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such
amounts to the Holders.

     SECTION 5.02. Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Preferred Securities Guarantee and of
any liability to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Issuer or any other Person before proceeding against the
Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

     SECTION 5.03. Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under this Preferred
Securities Guarantee shall in no way be affected or impaired by reason of the happening from time
to time of any of the following:

     (a) the release or waiver, by operation of law or otherwise, of the performance or observance
by the Issuer of any express or implied agreement, covenant, term or condition relating to the
Preferred Securities to be performed or observed by the Issuer;

10

 

     (b) the extension of time for the payment by the Issuer of all or any portion of the
Distributions, the amount payable upon redemption, Liquidation Distribution or any other sums
payable under the terms of the Preferred Securities or the extension of time for the performance of
any other obligation under, arising out of, or in connection with, the Preferred Securities (other
than an extension of time for payment of Distributions, the amount payable upon redemption,
Liquidation Distribution or other sum payable that results from the extension of any interest
payment period on the Debentures or any extension of the maturity date of the Debentures permitted
by the Indenture);

     (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce,
assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the
terms of the Preferred Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;

     (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the
Issuer or any of the assets of the Issuer;

     (e) any invalidity of, or defect or deficiency in the Preferred Securities;

     (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or

     (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor, it being the intent of this Section 5.03 that the obligations
of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.

     There shall be no obligation of the Holders or any other Person to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.

     SECTION 5.04. Rights of Holders.

     (a) The Holders of a Majority in liquidation preference of the Preferred Securities have the
right to direct the time, method and place of conducting any proceeding for any remedy available to
the Preferred Guarantee Trustee in respect of this Preferred Securities Guarantee or exercising any
trust or power conferred upon the Preferred Guarantee Trustee under this Preferred Securities
Guarantee.

     (b) If the Preferred Guarantee Trustee fails to enforce this Preferred Securities Guarantee,
any Holder may, after such Holder makes a written request to the Preferred Guarantee Trustee to
enforce this Preferred Securities Guarantee, institute a legal proceeding directly against the
Guarantor to enforce its rights under this Preferred Securities Guarantee, without first
instituting a legal proceeding against the Issuer, the Preferred Guarantee Trustee or any other
Person.

     SECTION 5.05. Guarantee of Payment.

     This Preferred Securities Guarantee creates a guarantee of payment and not of collection.

11

 

     SECTION 5.06. Subrogation.

     The Guarantor shall be subrogated to all (if any) rights of the Holders of Preferred
Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under
this Preferred Securities Guarantee; provided, however, that the Guarantor shall not (except to the
extent required by mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all
cases as a result of payment under this Preferred Securities Guarantee, if, at the time of any such
payment, any amounts are due and unpaid under this Preferred Securities Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

     SECTION 5.07. Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Preferred Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this
Preferred Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.03.

     SECTION 5.08. Net Payments.

     All Guarantee Payments required to be made hereunder shall be made by the Guarantor without
withholding or deduction at source for, or on account of, any present or future taxes, fees,
duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of
the Islands of Bermuda or such other jurisdiction in which the Guarantor (or any of its successors
under the Preferred Securities Guarantee) may be organized (each, a “taxing jurisdiction”) or any
political subdivision or taxing authority thereof or therein, unless such taxes, fees, duties,
assessments or governmental charges are required to be withheld or deducted by (i) the laws (or any
regulations or ruling promulgated thereunder) of a taxing jurisdiction or any political subdivision
or taxing authority thereof or therein or (ii) an official position regarding the application,
administration, interpretation or enforcement of any such laws, regulations or rulings (including,
without limitation, a holding by a court of competent jurisdiction or by a taxing authority in a
taxing jurisdiction or any political subdivision thereof). If a withholding or deduction at source
is required, the Guarantor shall, subject to certain limitations and exceptions set forth below,
pay to any Holder such Additional Amounts as may be necessary so that every Guarantee Payment made
to such Holder, after such withholding or deduction, shall not be less than the amount provided for
in this Guarantee Agreement to be then due and payable; provided, however, that the Guarantor shall
not be required to make payment of such Additional Amounts for or on account of:

     (a) any tax, fee, duty, assessment or governmental charge of whatever nature which would not
have been imposed but for the fact that such Holder: (A) was a resident, domiciliary or national
of, or engaged in business or maintained a permanent establishment or was physically present in,
the relevant taxing jurisdiction or any political subdivision thereof or otherwise had some
connection with the relevant taxing jurisdiction other than by reason of the mere ownership of, or
receipt of payment under, such Preferred Security; (B) presented, where presentation is

12

 

required, such Preferred Security for payment in the relevant taxing jurisdiction or any
political subdivision thereof, unless such Preferred Security could not have been presented for
payment elsewhere; or (C) presented, where presentation is required, such Preferred Security more
than thirty (30) days after the date on which the payment in respect of such Preferred Security
first became due and payable or provided for, whichever is later, except to the extent that the
Holder would have been entitled to such Additional Amounts if it had presented such Preferred
Security for payment on any day within such period of thirty (30) days;

     (b) any estate, inheritance, gift, sale, transfer, personal property or similar tax,
assessment or other governmental charge;

     (c) any tax, assessment or other governmental charge that is imposed or withheld by reason of
the failure by the Holder or the beneficial owner of such Preferred Security to comply with any
reasonable request by the Guarantor or the Trust addressed to the Holder within 90 days of such
request (A) to provide information concerning the nationality, residence or identity of the Holder
or such beneficial owner or (B) to make any declaration or other similar claim or satisfy any
information or reporting requirement, which is required or imposed by statute, treaty, regulation
or administrative practice of the relevant taxing jurisdiction or any political subdivision thereof
as a precondition to exemption from all or part of such tax, assessment or other governmental
charge;

     (d) any withholding or deduction required to be made pursuant to EU Council Directive
2003/48/EC of June 3, 2003 on the taxation of savings income in the form of interest payments (the
“EU Directive”), or any law implementing or complying with, or introduced in order to conform to
such EU Directive; or

     (e) any combination of items (a), (b), (c) and (d);

nor shall Additional Amounts be paid with respect to any Guarantee Payment to any Holder who is a
fiduciary or partnership or other than the sole beneficial owner of the related Preferred Security,
but only to the extent such payment would be required by the laws of the relevant taxing
jurisdiction (or any political subdivision or relevant taxing authority thereof or therein) to be
included in the income for tax purposes of a beneficiary or partner or settlor with respect to such
fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to
such Additional Amounts had it been the Holder of such Preferred Security.

ARTICLE 6

LIMITATION OF TRANSACTIONS; SUBORDINATION

     SECTION 6.01. Limitation of Transactions.

     So long as any Preferred Securities remain outstanding, if there shall have occurred an Event
of Default, an event that, with the giving of notice or the lapse of time or both, would constitute
an Event of Default under the Indenture or a selection by the Guarantor of an Extended Interest
Payment Period as provided in the Indenture and such period, or any extension thereof, shall be
continuing, then (a) the Guarantor shall not declare or pay any dividend on, or make any
distribution with respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock (other than stock dividends declared and paid by the Guarantor

13

 

which stock dividends consist of the stock of the same class as that on which the dividend is
being paid), (b) the Guarantor shall not make any payment of interest, principal or premium, if
any, on or repay, purchase or redeem any debt securities issued by the Guarantor which rank pari
passu with or junior to the Debentures and (c) shall not make any guarantee payments with respect
to the foregoing (other than pursuant to the Preferred Securities Guarantee).

     Notwithstanding the foregoing, the Guarantor may at any time (a) purchase or acquire its
capital stock in connection with the satisfaction by the Guarantor of its obligations under any
employee benefit plans or pursuant to any contract or security outstanding on the first day of any
such event requiring the Guarantor to purchase its capital stock; (b) reclassify its capital stock
or exchange or convert one class or series of its capital stock for another class or series of its
capital stock; (c) purchase fractional interests in its capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being converted or exchanged; (d) declare
dividends or distributions in its capital stock, including stock dividends paid by the Guarantor
which consist of the stock of the same class as that on which any dividend is being paid; (e)
redeem or purchase any rights pursuant to a rights agreement; and (f) make payments under any
Guarantee related to any Preferred Securities.

     SECTION 6.02. Ranking.

     This Preferred Securities Guarantee will constitute an unsecured obligation of the Guarantor
and will rank (i) subordinate and junior in right of payment to all other liabilities of the
Guarantor, except any liabilities that may be made pari passu expressly by their terms, (ii) pari
passu with the most senior preferred or preference stock now or hereafter issued by the Guarantor
and with any guarantee now or hereafter entered into by the Guarantor in respect of any preferred
or preference stock or Preferred Security of any Affiliate of the Guarantor, and (iii) senior to
the Guarantor’s common stock.

ARTICLE 7

TERMINATION

     SECTION 7.01. Termination.

     This Preferred Securities Guarantee shall terminate upon (i) full payment of the amount
payable upon redemption of all Preferred Securities, (ii) the distribution of the Debentures to the
Holders of all of the Preferred Securities or (iii) full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer. Notwithstanding the foregoing,
this Preferred Securities Guarantee will continue to be effective or will be reinstated, as the
case may be, if at any time any Holder must restore payment of any sums paid under the Preferred
Securities or under this Preferred Securities Guarantee.

ARTICLE 8

INDEMNIFICATION

     SECTION 8.01. Exculpation.

     (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise
to the Guarantor or any Covered Person for all and any loss, damage, claim or expense

14

 

(including taxes, other than those based upon, measured by or determined by the income of the
Guarantee Trustee) incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Preferred Securities Guarantee and in a
manner that such Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Preferred Securities Guarantee or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person’s negligence, fraud, dishonesty, bad faith or willful misconduct with respect to
such acts or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Guarantor and upon such information, opinions, reports or statements presented to the
Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with reasonable care by
or on behalf of the Guarantor, including information, opinions, reports or statements as to the
value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the
existence and amount of assets from which Distributions to Holders of Preferred Securities might
properly be paid.

     SECTION 8.02. Indemnification.

     (a) To the fullest extent permitted by applicable law, the Guarantor shall indemnify and hold
harmless each Indemnified Person from and against any and all loss, damage, claim or expense
(including taxes, other than those based upon, measured by or determined by the income of the
Guarantee Trustee) incurred by such Indemnified Person by reason of any act or omission performed
or omitted by such Indemnified Person in good faith in accordance with this Preferred Securities
Guarantee and in a manner such Indemnified Person reasonably believed to be within the scope of
authority conferred on such Indemnified Person in accordance with this Preferred Securities
Guarantee, except that no Indemnified Person shall be entitled to be indemnified in respect of any
loss, damage, claim or expense incurred by such Indemnified Person by reason of negligence, fraud,
dishonesty, bad faith or willful misconduct with respect to such acts or omissions.

     (b) To the fullest extent permitted by applicable law, expenses (including reasonable legal
fees and expenses) incurred by an Indemnified Person in defending any claim, demand, action, suit
or proceeding shall, from time to time, be advanced by the Guarantor prior to the final disposition
of such claim, demand, action, suit or proceeding upon receipt by the Guarantor of an undertaking
by or on behalf of the Indemnified Person to repay such amount if it shall be determined that the
Indemnified Person is not entitled to be indemnified as authorized in Section 8.02(a).

     (c) The provisions of this Section shall survive the termination of this agreement.

15

 

ARTICLE 9

MISCELLANEOUS

     SECTION 9.01. Successors and Assigns.

     All guarantees and agreements contained in this Preferred Securities Guarantee shall bind the
successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to
the benefit of the Holders of the Preferred Securities then outstanding. Except in connection with
any permitted amalgamation, merger or consolidation of the Guarantor with or into another entity or
any permitted sale, transfer or lease of the Guarantor’s assets to another entity, the Guarantor
may not assign its rights or delegate its obligations under the Preferred Securities Guarantee
without the prior approval of the Holders of at least 66 2/3% of the aggregate stated liquidation
preference of the Preferred Securities then outstanding.

     SECTION 9.02. Amendments.

     Except with respect to any changes that do not adversely affect the rights of Holders (in
which case no consent of Holders will be required), this Preferred Securities Guarantee may only be
amended with the prior approval of the Holders of not less than a Majority in liquidation
preference of all the outstanding Securities. The provisions of Section 12.02 of the Declaration
with respect to meetings of Holders apply to the giving of such approval.

     SECTION 9.03. Notices.

     All notices provided for in this Preferred Securities Guarantee shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or mailed by registered
or certified mail, as follows:

     (a) If given to the Preferred Guarantee Trustee, at the Preferred Guarantee Trustee’s mailing
address set forth below (or such other address as the Preferred Guarantee Trustee may give notice
of to the Holders):

[                ]

[                ]

[                ]

Attn: [      ]

Fax: [      ]

     (b) If given to the Guarantor, at the Guarantor’s mailing address set forth below (or such
other address as the Guarantor may give notice of to the Holders):

Max Capital Group Ltd.

Max House

2 Front Street

Hamilton, HM II, Bermuca

Attn: General Counsel

Fax: [      ]

16

 

     (c) If given to any Holder of Preferred Securities, at the address set forth on the books and
records of the Issuer.

     All such notices shall be deemed to have been given when received in person, telecopied with
receipt confirmed, or mailed by first class mail, postage prepaid except that if a notice or other
document is refused delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered on the date of such
refusal or inability to deliver.

     SECTION 9.04. Benefit.

     This Preferred Securities Guarantee is solely for the benefit of the Holders of the Preferred
Securities and, subject to Section 3.01(a), is not separately transferable from the Preferred
Securities.

     SECTION 9.05. Governing Law.

     THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY
SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

     THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year first above written.

	 	 	 	 	 
	 	MAX CAPITAL GROUP LTD.,

as Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	[       ] 	 
	 	 	Title:  	[       ] 	 
	 
	 	[       ], as

Preferred Guarantee Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	[       ] 	 
	 	 	Title:  	[       ] 	 
	 

17

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