Document:

Execution Copy
                                                                --------------

                              Employment Agreement

          This EMPLOYMENT AGREEMENT (the "Agreement"), dated as of March 29,
2004, is made and entered into by and between Scottish Re Holdings Limited (the
"Company") and Deborah G. Percy (the "Executive").

                              W I T N E S S E T H:

          WHEREAS, the Company desires to ensure that it retains the Executive's
management and executive services by directly engaging Executive as its
Executive Vice President Human Resources;

          WHEREAS, in order to induce the Executive to continue to serve in such
position, the Company desires to provide the Executive with compensation and
other benefits on the terms and conditions set forth in this Agreement; and

          WHEREAS, the Executive is willing to accept such employment and
perform services for the Company, on the terms and conditions hereinafter set
forth.

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

1.  Certain Defined Terms.
    ---------------------

     In addition to terms defined elsewhere herein, the following terms have the
     following meanings when used in this Agreement with initial capital
     letters:

     (a)  "Act" means the Securities Exchange Act of 1934, as amended.

     (b)  "Change in Control" means the occurrence during the Term of any of the
          following events:

          (i)  the acquisition by any individual, entity or group, within the
               meaning of Section 13(d)(3) or 14(d)(2) of the Act (a "Person"),
               including as a result of a Business Combination (as defined in
               Section 1(b)(iii)), of beneficial ownership, within the meaning
               of Rule 13d-3 promulgated under the Act, of 25% or more of the
               combined voting power of the then outstanding Voting Stock of
               Holdings; provided, however, that for purposes of this Section
               1(b)(i), the following acquisitions shall not constitute a Change
               in Control: (A) any acquisition by Holdings of Voting Stock of
               Holdings, or (B) any acquisition of Voting Stock of

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               Holdings by any employee benefit plan (or related trust)
               sponsored or maintained by Holdings or any Subsidiary; or

          (ii) individuals who, as of the date hereof, constitute the Holdings
               Board (the "Incumbent Board," (as modified by this Section
               1(b)(ii))) cease for any reason to constitute at least a majority
               of the Holdings Board; provided, however, that any individual
               becoming a Director subsequent to the date hereof whose election,
               or nomination for election by the shareholders of Holdings, was
               approved by a vote of at least two-thirds of the Directors then
               comprising the Incumbent Board (either by a specific vote or by
               approval of the proxy statement of Holdings in which such person
               is named as a nominee for director, without objection to such
               nomination) shall be deemed to have been a member of the
               Incumbent Board, but excluding, for this purpose, any such
               individual whose initial assumption of office occurs as a result
               of an actual or threatened election contest (within the meaning
               of Rule 14a-11 of the Act) with respect to the election or
               removal of Directors or other actual or threatened solicitation
               of proxies or consents by or on behalf of a Person other than the
               Holdings Board; or

          (iii) consummation of a reorganization, merger or consolidation, a
               sale or other disposition of all or substantially all of the
               assets of Holdings, or other transaction (each, a "Business
               Combination"), unless, in each case, immediately following such
               Business Combination, either (A)(I) the individuals and entities
               who were the beneficial owners of Voting Stock of Holdings
               immediately prior to such Business Combination beneficially own
               in the aggregate, directly or indirectly, more than 50% of the
               combined voting power of the then outstanding shares of Voting
               Stock of the entity resulting from such Business Combination
               (including, without limitation, an entity which as a result of
               such transaction owns Holdings or all or substantially all of the
               assets of Holdings either directly or through one or more
               subsidiaries), (II) no Person (other than Holdings, such entity
               resulting from such Business Combination, or any employee benefit
               plan (or related trust) sponsored or maintained by Holdings, any
               Subsidiary or such entity resulting from such Business
               Combination) beneficially owns, directly or indirectly, 25% or
               more of the combined voting power of the then outstanding shares
               of Voting Stock of the entity resulting from such Business
               Combination, and (III) at least a majority of the members of the
               board of directors of the entity

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               resulting from such Business Combination were members of the
               Incumbent Board at the time of the execution of the initial
               agreement or of the action of the Holdings Board providing for
               such Business Combination, or (B) the same as Section
               1(b)(iii)(A), except in clause (I), substituting "one-third" for
               "50%," and in clause (III), substituting "two-thirds" for "a
               majority";

          (iv) approval by the shareholders of Holdings of a complete
               liquidation or dissolution of Holdings, except pursuant to a
               Business Combination that complies with clause (A) or (B) of
               Section 1(b)(iii); or

          (v)  a sale or other disposition of (A) shares of Voting Stock of the
               Company representing at least 50% of the combined voting power of
               the then outstanding shares of Voting Stock of the Company, or
               (B) all or substantially all of the assets of the Company,
               unless, in either case, the individuals and entities who were the
               beneficial owners of Voting Stock of Holdings immediately prior
               to such sale or disposition beneficially own in the aggregate,
               directly or indirectly, more than 50% of the combined voting
               power of the then outstanding shares of Voting Stock of the
               entity acquiring such Voting Stock or assets of the Company.

     (c)  "Company Board" means the Board of directors of the Company.

     (d)  "Competitive Activity" means the Executive's participation, without
          the written consent of the Company Board, in the management of any
          business enterprise if such enterprise engages in substantial and
          direct competition with the Company and such enterprise engages in
          substantial and direct competition with the Company if such
          enterprise's sales of any product or service competitive with any
          product or service of the Company amounted to 10% of such enterprise's
          net sales for its most recently completed fiscal year and if the
          Company's net sales of said product or service amounted to 10% of the
          Company's net sales for its most recently completed fiscal year.
          "Competitive Activity" shall not include (i) the mere ownership of
          securities in any such enterprise (which is a company whose shares are
          quoted or dealt in on any recognized investment exchange (as defined
          by Section 207(1) of the Financial Services Act 1986) and the exercise
          of rights appurtenant thereto or (ii) participation in the management
          of any such enterprise other than in connection with the competitive
          operations of such enterprise.

     (e)  "Director" means a member of the Holdings Board.

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     (f)  "Holdings" means Scottish Re Group Limited, a Cayman Islands, British
          West Indies company.

     (g)  "Holdings Board" means the Board of Directors of Holdings
          ("Holdings").

     (h)  "Incapacity" means sickness or injury rendering the Executive
          incapable of performing services in accordance with the provisions of
          this Agreement.

     (i)  "Ordinary Shares" means the ordinary shares, par value $0.01 per
          share, of Holdings.

     (j)  "Subsidiary" means an entity in which Holdings directly or indirectly
          beneficially owns 50% or more of the outstanding Voting Stock.

     (k)  "Total Cash Compensation" means the sum of the (i) highest annual Base
          Salary in effect during the Term; and (ii) highest annual Incentive
          Bonus (as set forth in Section 6(b)) earned during the prior three (3)
          fiscal years.

     (l)  "Voting Stock" means securities entitled to vote generally in the
          election of directors.

2.   Employment.
     ----------

     The Company hereby agrees to employ Executive, and Executive hereby agrees
     to be employed with the Company for the Term, upon the terms and conditions
     herein set forth.

3.   Term.
     ----

     The term of employment under this Agreement (the "Initial Term") shall
     commence on March 29, 2004 ("Commencement Date") and subject to earlier
     termination pursuant to Section 7, expire on the third anniversary of the
     Commencement Date; provided, however, that commencing on the third
     anniversary of the Commencement Date, this Agreement will automatically be
     renewed for successive one-year periods (the "Additional Term"), subject to
     earlier termination pursuant to Section 7, unless either party provides
     written notice of non-renewal to the other pursuant to Section 14 at least
     ninety (90) days prior to the end of the Initial Term or any Additional
     Term. The Initial Term and any Additional Term shall be referred to under
     this Agreement as the "Term"; provided, however, that if a Change in
     Control occurs during the Term (as determined without regard to this
     clause), then the Term shall include the period ending on the second
     anniversary of the first occurrence of a Change in Control.

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4.   Positions and Duties; Hours of Work; Suspension.
     -----------------------------------------------

     (a)  During the Term, Executive will serve in the position of Executive
          Vice President Human Resources of the Company, or such other positions
          as may be agreed upon by the Company and the Executive, and will have
          such duties, functions, responsibilities and authority as are (i)
          reasonably assigned to her by the Holdings' Chief Executive Officer,
          consistent with Executive's position as Executive Vice President Human
          Resources or (ii) assigned to her office in the Company's Articles of
          Association. Executive will report directly to the Chief Executive
          Officer of Holdings.

     (b)  During the Term, Executive will be the Company's full-time employee
          and, except as may otherwise be approved in advance in writing by the
          Company Board, and except during vacation periods and reasonable
          periods of absence due to sickness, personal injury or other
          disability, Executive will devote substantially all of her business
          time and attention to the performance of her duties to the Company.
          Notwithstanding the foregoing, Executive may (i) subject to the
          approval of the Company Board, serve as a director of a company,
          provided such service does not constitute a Competitive Activity, (ii)
          serve as an officer, director or otherwise participate in purely
          educational, welfare, social, religious and civic organizations, (iii)
          serve as an officer, director or trustee of, or otherwise participate
          in, any organizations and activities with respect to which Executive's
          participation was disclosed to the Company in writing prior to the
          date hereof and (iv) manage personal and family investments.

     (c)  The Executive shall carry out her duties between 09.00 and 17.00
          Monday to Friday (inclusive) with a one hour break for lunch. The
          Executive's normal working week shall be 35 hours. However, the
          Executive will also be required to work (without any additional
          remuneration) any additional hours as are reasonably necessary or
          appropriate from time to time to carry out her duties properly and
          effectively. The Executive agrees that any cap on the average working
          time imposed by the Working Time Regulations 1998 will not apply to
          her.

     (d)  Notwithstanding the foregoing or any other provision of this Agreement
          the Company will not be under any obligation to provide the Executive
          with any work and the Company may immediately upon commencing any
          disciplinary investigation into the activities or conduct of the
          Executive without notice suspend the Executive and/or exclude her from
          all or any premises of the Company for any period not exceeding three
          months provided that throughout such period the Executive's Base
          Salary and other contractual benefits shall continue to be paid or
          provided by the Company and provided further that at any time during
          such period the

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          Executive will at the request of the Board immediately resign without
          claim for compensation from office as a director of the Company and
          any Associated Company and from any other office held by her in the
          Company or any Associated Company and in the event of her failure to
          do so the Company hereby irrevocably authorised to appoint some person
          in her name and on her behalf to sign and deliver such resignations to
          the Board.

5.   Place of Performance.
     --------------------

     In connection with her employment during the Term, unless otherwise agreed
     by Executive, Executive will be based at the Company's principal executive
     offices in Windsor, England; provided, however, that Executive agrees and
     acknowledges that in view of the nature of Company's business operations,
     Executive may be required in the performance of her duties to undertake
     substantial travel on behalf of the Company and, if necessary, requested to
     relocate to another executive office of the Company within the United
     Kingdom.

6.   Compensation and Related Matters.
     --------------------------------

     As compensation and consideration for the performance by Executive of her
     obligations pursuant to this Agreement, Executive shall be entitled to the
     following:

     (a)  Base Salary. During the Term, the Company shall pay Executive an
          annual base salary ("Base Salary") of (pound) 125,000, payable at the
          times and in the manner consistent with the Company's policies
          regarding compensation of executive employees but not less frequently
          than monthly. The Company agrees to review such compensation not less
          frequently than annually during the Term. Once increased, the Base
          Salary may not be decreased. The Base Salary as increased from time to
          time shall be referred to herein as "Base Salary".

     (b)  Incentive Bonus. The Company may pay a cash bonus to Executive based
          upon pre-established performance goals established by the Company (the
          "Incentive Bonus"). Any Incentive Bonus shall be payable at the times
          and in the manner consistent with the Company's policies regarding
          compensation of executive employees.

     (c)  Executive Benefits. During the Term, the Company will make available
          to Executive and her eligible dependents, participation in all
          Company-sponsored employee benefit plans including all employee
          retirement income and welfare benefit policies, plans, programs or
          arrangements in which senior executives of the Company participate,
          including any stock

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          option, stock purchase, stock appreciation, savings, pension,
          supplemental executive retirement or other retirement income or
          welfare benefit, disability, salary continuation, and any other
          deferred compensation, incentive compensation, group and/or executive
          life, health, medical/hospital or other insurance, expense
          reimbursement or other employee benefit policies, plans, programs or
          arrangements, including without limitation financial counseling
          services or any equivalent successor policies, plans, programs or
          arrangements that may now exist or be adopted hereafter by the
          Company. Details of such plans will be provided to the Executive when
          available, and save as provided therein, the terms of such plans may
          be amended at the Company's discretion.

     (d)  Expenses. The Company will promptly reimburse Executive for all
          reasonable business expenses Executive incurs in order to perform her
          duties to the Company under this Agreement in a manner commensurate
          with Executive's position and level of responsibility with the
          Company, and in accordance with the Company's policy regarding
          substantiation of expenses.

     (e)  Vacation and Holidays.
          ---------------------

          (i)  The Executive will (in addition to the usual public and bank
               holidays) be entitled during the continuance of her employment to
               28 working day's paid holiday in each period of 12 months
               commencing on 1 January (the "Holiday Year").

          (ii) Holiday shall be taken at such times as may be approved by the
               Chairman of the Company.

          (iii) The Executive may not, without the prior written consent of the
               Chairman of the Company carry forward more than six days unused
               holiday entitlement from one Holiday Year to another.

          (iv) On the termination of her employment the Executive's entitlement
               to accrued holiday pay will be calculated on a pro rata basis in
               respect of each completed month of service in the Holiday Year in
               which her employment terminates and the appropriate amount will
               be paid to the Executive provided that if the Executive shall
               have taken more days' holiday than her accrued entitlement the
               Company is hereby authorised to make an appropriate deduction
               from any amounts due from the Company to the Executive.

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          (f)  Indemnification. The Executive shall be offered an opportunity to
               enter into Holdings' Indemnification Agreement substantially in
               the form attached hereto as Exhibit A effective as of the
               Commencement Date.

          (g)  Initial Equity Compensation Grant. The Company shall grant
               Executive an option (the "Option") to purchase 50,000 Ordinary
               Shares of Holdings. Additionally, the Company shall grant
               Executive 20,000 restricted shares (the "Restricted Shares") of
               Holdings (collectively the "Grants"). Any such issuance of
               Options and/or Restricted Shares shall be subject to shareholder
               approval of the 2004 Equity Incentive Compensation Plan (the
               "2004 Plan"). Additionally, any grant to Executive under the 2004
               Equity Incentive Compensation Plan shall be subject to the terms
               and conditions of the 2004 Plan as well as the performance
               requirements expressly adopted by the Holdings' Board and/or
               Compensation Committee. A copy of the 2004 Equity Incentive
               Compensation Plan is attached hereto as Exhibit B.

          (h)  Incapacity.

               (i)  The Executive shall, subject to complying with the Company's
                    rules governing notification and evidence of absence by
                    reason of Incapacity for the time being in force, be
                    entitled to payment of her salary (which shall include any
                    entitlement to statutory sick pay or social security
                    benefits to which he may be entitled) in respect of absence
                    by reason of Incapacity in respect of the first 180 days'
                    absence in any 12-month period PROVIDED THAT whilst the
                    Executive is entitled to be paid during Incapacity there
                    shall be deducted therefrom the aggregate of any amounts
                    receivable by the Executive by virtue of any sickness,
                    accident benefit or permanent health scheme operated by or
                    on behalf of the Company (except insofar as such amounts
                    represent reimbursement of medical or nursing fees or
                    expenses incurred by the Executive) and the amount of any
                    social security sickness or other benefit to which the
                    Executive may be entitled.

               (ii) If the Executive shall have been absent from work due to
                    sickness injury or other incapacity for 180 days or more in
                    any 12-month period then he shall receive such benefits (if
                    any) as the Company may in its absolute discretion decide.

               (iii) If any Incapacity is caused by any alleged action or wrong
                    of a third party and the Executive decides to claim damages
                    in respect thereof, then the Executive will use all
                    reasonable endeavours to recover damages for loss of
                    earnings over the period for which

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                    salary has been or will be paid to her by the Company under
                    Clause 6(i)(i), and will account to the Company for any such
                    damages recovered (net of the reasonable costs of recovery
                    and in an amount not exceeding the actual salary paid or
                    payable to her by the Company under Clause 6(i)(i) in
                    respect of the said period.) The Executive will keep the
                    Company informed of the commencement, progress and outcome
                    of any such claim.

          (i) Disciplinary and Grievance Procedure.

               (i)  For statutory purposes there are no formal disciplinary or
                    grievance procedures in relation to the Executive's
                    employment. The Executive will be expected to maintain the
                    highest standards of integrity and behaviour.

               (ii) If the Executive is not satisfied with any disciplinary
                    decision taken in relation to her she may appeal in writing
                    within 14 days of that decision to the Chairman of the
                    Company whose decision shall be final.

               (iii) If the Executive has a grievance regarding her employment
                    it should in the first instance be taken up with the
                    Chairman of the Company.

          (j)  There are no collective agreements which apply to the Executive's
               employment.

7.   Termination.
     -----------

     (a)  Termination by the Company with Cause. The Company shall have the
          right to terminate Executive's employment at any time with Cause by
          providing a Notice of Termination to Executive in accordance with
          Section 7(g) not more than sixty (60) days after the Company's actual
          knowledge of the Cause event, and such termination shall not be deemed
          to be a breach of this Agreement. For purposes of this Agreement,
          "Cause" shall mean: (i) habitual drug or alcohol use which impairs
          Executive's ability to perform her or her duties hereunder; (ii)
          Executive's conviction during the Term by a court of competent
          jurisdiction, or a pleading of "no contest" or guilty to an arrestable
          criminal offense resulting in the imposition of a custodial sentence;
          (iii) Executive's engaging in fraud, embezzlement or any other illegal
          conduct with respect to the Company or Holdings, which acts are
          materially harmful to, either financially, or to the business
          reputation of the Company or Holdings; (iv) Executive's willful breach
          of Section 9 hereof; (v) Executive's willful

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<PAGE>

          and continued failure or refusal to perform her duties hereunder
          (other than such failure caused by Executive's Disability), after a
          written demand for performance is delivered to Executive by the
          Company that specifically identifies the manner in which the Company
          believes that Executive has failed or refused to perform her duties;
          or (vi) Executive otherwise breaches any material provision of this
          Agreement which is not cured, if curable, within thirty (30) days
          after written notice thereof. No act or failure to act on the part of
          Executive shall be deemed "intentional" if it was due primarily to an
          error in judgment or negligence, but shall be deemed "intentional"
          only if done or omitted to be done by Executive not in good faith and
          without reasonable belief that her action or omission was in the best
          interest of the Company and Holdings.

     (b)  Death. In the event Executive dies during the Term, her employment
          shall automatically terminate effective on the date of her death, such
          termination shall not be deemed to be a breach of this Agreement, and
          the Company shall pay or provide to the Executive's beneficiaries or
          estate, as appropriate, as soon as practicable after the Executive's
          death, the amounts and benefits provided for in Section 8(d).

     (c)  Disability. In the event Executive shall suffer from a mental or
          physical disability which shall have prevented her from performing her
          material duties hereunder for a period of at least one-hundred eighty
          (180) non-consecutive days within any 365 day period, the Company
          shall have the right to terminate Executive's employment for
          "Disability," such termination to be effective upon the giving of
          notice thereof to the Executive in accordance with Section 7(g)
          hereof, such termination shall not be deemed to be a breach of this
          Agreement, and the Company shall provide to the Executive the amounts
          and benefits provided for in Section 8(d). Executive's employment
          hereunder shall terminate effective on the 30th day after receipt of
          such notice by Executive (the "Disability Effective Date"); provided
          that Executive shall not have returned to full-time performance of her
          duties hereunder within thirty (30) days following receipt of such
          notice.

          Providing always that the Company warrants that Executive's employment
          will not be terminated by the Company if Executive is receiving
          benefits under the Company PHI scheme or is awaiting a decision from
          the PHI scheme insurers in respect of benefits under the PHI scheme,
          where continuing employment is a prerequisite to the Executive's
          receipt of benefits under such scheme.

     (d)  Good Reason.
          -----------

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<PAGE>

          (i)  Executive may terminate her employment with the Company for "Good
               Reason" and such termination shall not be deemed to be a breach
               of this Agreement. Executive shall have Good Reason if Executive
               has knowledge that one of the events described in Section
               7(d)(ii) has occurred without Executive's written consent and (A)
               if the event is not curable, Executive gives a Notice of
               Termination to the Company pursuant to Section 7(g) within sixty
               (60) days after having knowledge of the event, or (B) if the
               event is curable, (I) Executive gives written notice to the
               Company thereof in accordance with Section 14 within sixty (60)
               days after having knowledge of the event, (II) such event has not
               been cured within thirty (30) days after the Executive gives
               notice of the event to the Company, and (III) Executive gives a
               Notice of Termination to the Company in accordance with Section
               7(g) within thirty (30) days after the expiration of the
               Company's 30-day cure period.

          (ii) For purposes of this Agreement, "Good Reason" shall mean (A)
               prior to a Change in Control, (I) a failure by the Company to
               comply with any material provision of this Agreement; (II) the
               liquidation, dissolution, merger, consolidation or reorganization
               of the Company or all of its business and/or assets, unless the
               successor(s) assume all duties and obligations of the Company
               pursuant to Section 13(a); or (III) upon the provision of notice
               by the Company under Section 3 of non-renewal of the Agreement,
               and (B) on or after a Change in Control, (I) any of the events
               set forth in Section 7(d)(ii)(A); (II) any material and adverse
               change to Executive's duties or authority which are inconsistent
               with her title and position set forth herein; (III) a diminution
               of Executive's title or position; (IV) the relocation of
               Executive's office; (V) a reduction in Executive's Base Salary;
               or (VI) a material reduction of Executive's benefits provided
               pursuant to Section 6 other than a reduction permitted under
               terms and conditions of the applicable Company policy or benefit
               plan.

     (e)  Without Good Reason. Executive may voluntarily terminate her
          employment with the Company without Good Reason by giving written
          notice to the Company as provided in Section 7(g). Such notice must be
          provided to the Company at least thirty (30) days prior to such
          termination. Such termination shall not be deemed to be a breach of
          this Agreement.

     (f)  Without Cause. This Company shall have the right to terminate
          Executive's employment hereunder without Cause by providing written
          notice to Executive as provided in Section 7(g), and such termination
          shall

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<PAGE>

          not be deemed to be a breach of this Agreement. "Without Cause" shall
          mean for any reason other than Cause, death or Disability, as provided
          in Sections 7(a), 7(b) and 7(c).

     (g)  Notice of Termination; Garden Leave.
          -----------------------------------

          (i)  Any termination of Executive's employment by the Company pursuant
               to Section 7(a), 7(c) or 7(f), or by Executive pursuant to
               Section 7(d) or 7(e), shall be communicated by a Notice of
               Termination to the other party hereto in accordance with this
               Section 7(g) and Section 14. For purposes of this Agreement, a
               "Notice of Termination" means a written notice that (A) indicates
               the specific termination provision in this Agreement relied upon,
               (B) to the extent applicable, sets forth in reasonable detail the
               facts and circumstances claimed to provide a basis for
               termination of the Executive's employment under the provision so
               indicated and (C) if the Date of Termination (as defined in
               Section 7(h)) is other than the date of receipt of such notice,
               specifies the Date of Termination. The failure by the Executive
               or the Company to set forth in the Notice of Termination any fact
               or circumstance that contributes to a showing of Good Reason or
               Cause shall not waive any right of the Executive or the Company,
               respectively, hereunder or preclude the Executive or the Company,
               respectively, from asserting such fact or circumstance in
               enforcing the Executive's or Company's rights hereunder.

          (ii) Any Notice of Termination by the Company for Cause shall be
               ratified by a resolution duly adopted by the affirmative vote of
               not less than two-thirds of the Company Board then in office
               (excluding, for this purpose, the Executive, if the Executive is
               then a member of the Company Board) at a meeting of the Company
               Board called and held for such purpose, after reasonable notice
               to the Executive and an opportunity for the Executive, together
               with her counsel (if the Executive chooses to have counsel
               present at such meeting), to be heard before the Company Board,
               finding that, in the good faith opinion of the Company Board, the
               Executive had committed an act constituting "Cause" as defined in
               Section 7(a) and specifying the particulars thereof in detail.

          (iii) After notice of termination has been given by the Executive, or
               if the Executive seeks to resign without notice or by giving
               shorter notice than that required under this Agreement then
               provided the Company continues to pay the Executive's contractual
               benefits in accordance with the terms of this Agreement, the
               Company has at

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               its discretion the right for the notice period or balance of the
               notice period then outstanding until the date of termination to:

               (A)  exclude the Executive from the Company's premises and
                    require the Executive not to attend at the Company's
                    premises; and/or

               (B)  require the Executive to carry out no duties; and/or

               (C)  require the Executive not to communicate or deal with
                    employees, agents, consultants, clients or other
                    representatives of the Company.

          (h)  Date of Termination. "Date of Termination" means (i) if the
               Executive's employment is terminated by the Company for Cause or
               by the Executive for Good Reason, the date of receipt of the
               Notice of Termination or any later date specified therein (but
               not more than thirty (30) days thereafter), as the case may be
               (although such Date of Termination shall retroactively cease to
               apply if the circumstances providing the basis of termination for
               Cause or Good Reason are cured in accordance with Section 7(a) or
               7(d) of this Agreement, as the case may be), (ii) if Executive's
               employment is terminated by the Company other than for Cause or
               Disability, the Date of Termination shall be the date set forth
               in the Notice of Termination (iii) if Executive's employment is
               terminated by Executive without Good Reason, the Date of
               Termination shall be the date set forth in the Notice of
               Termination, but no sooner than thirty (30) days after such
               Notice of Termination is received by the Company and (iv) if
               Executive's employment is terminated by reason of death or
               Disability, the Date of Termination shall be the date of the
               Executive's death or the Disability Effective Date, as the case
               may be.

8.   Compensation upon Termination.
     -----------------------------

     If the Company or Executive terminates the Executive's employment during
     the Term, the Company shall pay to the Executive the amount(s) set forth
     below. The Compensation Payments described in Section 8(a) shall be paid,
     subject to all required deductions, in a lump sum to the Executive's bank
     account five (5) business days after the Date of Termination or date of
     expiration of this Agreement, as the case may be. Severance Pay and the
     Termination Bonus under Section 8(b) shall be paid, subject to all
     applicable deductions, into the Executive's bank account in six (6) equal
     monthly installments, the first installment to be paid five (5) business
     days after the effective date of the release described in Section 8(b):

                                  Page 13 of 25

<PAGE>

     (a)  Compensation upon Termination for Cause or Without Good Reason. In the
          event of termination of Executive's employment by the Company for
          Cause or by the Executive without Good Reason, or by reason of
          expiration of the Term (if applicable), the Company shall pay the
          Executive her accrued, but unpaid Base Salary, accrued vacation pay
          and unpaid business expenses through the Date of Termination (the
          "Compensation Payments"), and the Executive shall be entitled to no
          other compensation, except as otherwise due to the Executive under
          applicable law. The Executive shall not be entitled to the payment of
          any bonus or other incentive compensation for any portion of the
          fiscal year in which such termination occurs.

     (b)  Compensation upon Termination by the Company Without Cause or upon
          Termination by the Executive for Good Reason. Subject to Section 8(c),
          in the event of the termination of the Executive's employment by the
          Company without Cause or upon termination of the Executive's
          employment by the Executive for Good Reason, the Company shall pay the
          Executive the Compensation Payments. In addition, conditioned upon
          receipt of the Executive's release of claims substantially in the form
          attached hereto as Exhibit C, subject to such changes as may be
          required to preserve the intent thereof for changes in applicable law,
          the Company shall pay or provide to the Executive, in lieu of notice
          and any statutory entitlement in respect of the termination of her
          employment, (i) as "Severance Pay", an amount equal to the sum of the
          Total Cash Compensation that Executive would have received during the
          Initial Term, such amount to be calculated from the date the
          Executive's employment was terminated to the date that is the third
          anniversary of the Commencement Date (the "Severance Calculation
          Period"), (ii) earned, but unpaid Incentive Bonus for the year of
          termination, as determined in the good faith opinion of the Company
          based upon the relative achievement of performance targets through the
          Date of Termination (the "Termination Bonus"), and (iii) the welfare
          benefits set forth in Section 8(f). Notwithstanding the foregoing
          provisions of this Section 8(b), (x) where the Severance Calculation
          Period is for twelve (12) calendar months or less or where termination
          takes place during the Additional Term, the sum payable under Section
          8(b)(i) shall be an amount equal to the sum of one (1) full year's
          Total Cash Compensation and (y) any right of the Executive to receive
          termination payments and benefits under Section 8(b) shall be
          forfeited to the extent of any amounts payable or benefits to be
          provided after a material breach of any covenant set forth in Section
          9.

                                  Page 14 of 25

<PAGE>

     (c)  Compensation upon Termination in Connection with a Change in Control
          of the Company. If, within the period of time commencing on the date
          of the first occurrence of a Change in Control and continuing until
          the second anniversary of such occurrence of a Change in Control or,
          if earlier, until the Executive's death, the Executive's employment is
          terminated by the Company without Cause or by the Executive for Good
          Reason, then the provisions of Section 8(b) shall be applicable,
          except that an amount equal to 300% of the Executive's Total Cash
          Compensation shall be substituted in lieu of the amount set forth in
          Section 8(b)(i), and the Severance Calculation Period shall be
          inapplicable. For purposes of the preceding sentence, if a Change in
          Control occurs and not more than one-hundred twenty (120) days prior
          to the date on which the Change in Control occurs, the Executive's
          employment is terminated by the Company without Cause, such
          termination of employment shall be deemed a termination of employment
          after a Change in Control if the Executive has reasonably demonstrated
          that such termination of employment (i) was at the request of a third
          party who has taken steps reasonably calculated to effect a Change in
          Control, or (ii) otherwise arose in connection with or in anticipation
          of a Change in Control.

     (d)  Compensation upon Death or Disability. In the event of the Executive's
          death or the termination of employment due to Disability, the Company
          shall pay to the Executive (or beneficiaries, or estate, as the case
          may be) an amount equal to the sum of (i) the Compensation Payments
          and (ii) the Termination Bonus. Executive shall be entitled to any
          other rights, compensation and/or benefits as may be due to Executive
          in accordance with the terms and provision of any agreements, plans or
          programs of the Company.

     (e)  Set-Off, Counterclaim or Late Payment. There shall be no right of
          set-off or counterclaim in respect of any claim, debt or obligation
          against any payment to or benefit for the Executive provided for in
          this Agreement. Without limiting the rights of the Executive at law or
          in equity, if the Company fails to make any payment required to be
          made hereunder on a timely basis, the Company shall pay interest on
          the amount or value thereof at an annualized rate of interest equal to
          the "prime rate" as set forth from time to time during the relevant
          period in The Wall Street Journal "Money Rates" column, plus four
          (4)%. Such interest shall be payable as it accrues on demand. Any
          change in such prime rate shall be effective on and as of the date of
          such change.

     (f)  Welfare Benefits. If the Executive becomes entitled to the benefits
          provided by Section 8(b) or 8(c), then in addition to such benefits,
          for a period following the Date of Termination equal to the greater of
          the

                                  Page 15 of 25

<PAGE>

          remaining Term or twelve (12) months (the "Continuation Period"), the
          Company shall arrange to provide the Executive with health insurance,
          life insurance, and other medical benefits substantially similar to
          those that the Executive was receiving or entitled to receive
          immediately prior to the Date of Termination (or, if greater,
          immediately prior to the reduction, termination, or denial described
          in Section 7(d)(ii)(B)(VI), if applicable). If and to the extent that
          any benefit described in this Section 8(f) is not or cannot be paid or
          provided under any policy, plan, program or arrangement of the
          Company, then the Company will itself pay or provide for the payment
          to the Executive, her dependents and beneficiaries, of such benefits
          along with, in the case of any benefit described in this Section 8(f)
          that is subject to tax because it is not or cannot be paid or provided
          under any such policy, plan, program or arrangement of the Company, an
          additional amount such that after payment by the Executive, or her
          dependents or beneficiaries, as the case may be, of all taxes so
          imposed, the recipient retains an amount equal to such taxes.

     (g)  Scope and Nonduplication. The provision or payment of termination
          benefits under this Section 8 shall not affect any rights the
          Executive may have pursuant to any agreement, plan, policy, program or
          arrangement of the Company providing employee benefits, which rights
          shall be governed by the terms thereof or by the release described in
          Section 8; provided, however, that to the extent, and only to the
          extent, a payment or benefit that is paid or provided under this
          Section 8 would also be paid or provided under the terms of any
          applicable plan, program, or arrangement, including, without
          limitation, any severance program, such applicable plan, program,
          agreement or arrangement shall be deemed to have been satisfied by the
          payment made or benefit provided under this Agreement.

     (h)  Mitigation. In the event of the termination of the Executive by the
          Company without Cause, or by the Executive with Good Reason, the
          Executive shall not be required to mitigate damages by seeking other
          employment or otherwise as a condition to receiving termination
          payments or benefits under this Agreement. No amounts earned by the
          Executive after the Executive's termination by the Company without
          Cause or by the Executive with Good Reason, whether from
          self-employment, as a common law employee, or otherwise, shall reduce
          the amount of any payment or benefit under any provision of this
          Agreement. Notwithstanding the foregoing, the Executive's coverage
          under the Company's group medical insurance as provided in Section
          8(f) shall be reduced to the extent comparable welfare benefits are
          actually received by

                                  Page 16 of 25

<PAGE>

          the Executive as soon as the Executive becomes covered under any group
          medical plan made available by another employer. The Executive shall
          report to the Company any such coverage actually received by the
          Executive.

     (i)  Resignations. Except to the extent requested by the Company, upon any
          termination of the Executive's employment with the Company, the
          Executive shall immediately resign all positions and directorships
          with the Company, Holdings and each of their subsidiaries and
          affiliates.

9.   Competitive Activity; Confidentiality; Non-solicitation.
     -------------------------------------------------------

     (a)  Executive acknowledges that during the course of her employment with
          the Company the Executive will learn business information valuable to
          the Company and Holdings and will form substantial business
          relationships with the Company's and Holdings' clients. To protect the
          Company's and Holdings' legitimate business interests in preserving
          its valuable confidential business information and client
          relationships, the Executive shall not without the prior written
          consent of the Company or Holdings, which consent shall not be
          unreasonably withheld, engage in any Competitive Activity during the
          Term or for a period of six (6) months following the termination of
          the Executive's employment.

     (b)  During the Term, and in consideration for the Executive's agreement to
          enter into this Agreement, the Company agrees that it will disclose or
          cause to be disclosed to Executive its Confidential or Proprietary
          Information (as defined in this Section 9(b)) to the extent necessary
          for Executive to carry out her obligations to the Company. The
          Executive hereby acknowledges the Company has a legitimate business
          interest in protecting its Confidential or Proprietary Information and
          hereby covenants and agrees that he will not without the prior written
          consent of the Company, during the Term or thereafter (i) disclose to
          any person not employed by the Company, or use in connection with
          engaging in competition with the Company, any Confidential or
          Proprietary Information of the Company or (ii) remove, copy or retain
          in her possession any Company files or records. For purposes of this
          Agreement, the term "Confidential or Proprietary Information" will
          include all information of any nature and in any form that is owned by
          the Company or by Holdings and that is not publicly available (other
          than by Executive's breach of this Section 9(b)) or generally known to
          persons engaged in businesses similar or related to those of the
          Company or Holdings. Confidential or Proprietary Information will
          include, without limitation, the Company's and Holdings' financial
          matters, customers, employees, industry contacts, strategic business
          plans, product

                                  Page 17 of 25

<PAGE>

          development (or other proprietary product data), marketing plans, and
          all other secrets and all other information of a confidential or
          proprietary nature. Confidential or Proprietary Information shall not
          be deemed to have become public for purposes of this Agreement where
          it has been disclosed or made public by or through anyone acting in
          violation of a contractual, ethical, or legal responsibility to
          maintain its confidentiality. The foregoing obligations imposed by
          this Section 9(b) shall not apply (x) during the Term, in the course
          of the business of and for the benefit of the Company or Holdings, (y)
          if such Confidential or Proprietary Information will have become,
          through no fault of the Executive, generally known to the public or
          (z) if the Executive is required by law to make disclosure (after
          giving the Company notice and an opportunity to contest such
          requirement).

     (c)  The Executive hereby covenants and agrees that during the Term and for
          six (6) months after the Date of Termination Executive will not,
          without the prior written consent of the Company, which consent shall
          not unreasonably be withheld, on behalf of Executive or on behalf of
          any person, firm or company, directly or indirectly, attempt to
          influence, persuade or induce, or assist any other person in so
          persuading or inducing, any senior employee of the Company or Holdings
          with whom the Executive has had direct contact during the course of
          her employment to give up employment or a business relationship with
          the Company or Holdings, and the Executive shall not directly or
          indirectly solicit or hire such employees of the Company or Holdings
          for employment with any other employer.

     (d)  The Executive agrees that on or before the Date of Termination the
          Executive shall return all Company property, including without
          limitation all credit, identification and similar cards, keys and
          documents, books, records and office equipment. The Executive agrees
          that he shall abide by, through the Date of Termination, the Company's
          and Holdings' policies and procedures for worldwide business conduct.

     (e)  Executive and the Company agree that the covenants contained in this
          Section 9 are reasonable under the circumstances, and further agree
          that if in the opinion of any court of competent jurisdiction any such
          covenant is not reasonable in any respect, such court will have the
          right, power and authority to excise or modify any provision or
          provisions of such covenants as to the court will appear not
          reasonable and to enforce the remainder of the covenants as so
          amended. Executive acknowledges and agrees that the remedy at law
          available to the Company for breach of any of her obligations under
          this Section 9 would be inadequate and that damages flowing from such
          a breach may not readily be susceptible to

                                  Page 18 of 25

<PAGE>

          being measured in monetary terms. Accordingly, Executive acknowledges,
          consents and agrees that, in addition to any other rights or remedies
          that the Company may have at law, in equity or under this Agreement,
          upon adequate proof of her violation of any such provision of this
          Agreement, the Company will be entitled to immediate injunctive relief
          and may obtain a temporary order restraining any threatened or further
          breach, without the necessity of proof of actual damage.

     (f)  Representations of the Executive. The Executive represents and
          warrants to the Company that:

          (i)  (A) There are no restrictions, agreements or understandings
               whatsoever to which the Executive is a party that would prevent
               or make unlawful the Executive's execution of this Agreement or
               the Executive's employment under this Agreement, or that is or
               would be inconsistent, or in conflict with this Agreement or the
               Executive's employment under this Agreement, or would prevent,
               limit or impair in any way the performance by the Executive of
               the obligations under this Agreement; and (B) the Executive has
               disclosed to the Company all restraints, confidentiality
               commitments or other employment restrictions that the Executive
               has with any other employer, person or entity.

          (ii) Upon and after the Executive's termination or cessation of
               employment with the Company, and until such time as no
               obligations of the Executive to the Company hereunder exist, the
               Executive: (A) shall provide a complete copy of this Agreement to
               any prospective employer or other person, entity or association
               in a competing business with whom or which the Executive proposes
               to be employed, affiliated, engaged, associated or to establish
               any business or remunerative relationship prior to the
               commencement thereof, provided that Executive shall first cause
               the compensation amounts hereunder to be deleted or not
               disclosed; and (B) shall notify the Company of the name and
               address of any such person, entity or association prior to the
               Executive's employment, affiliation, engagement, association or
               the establishment of any business or remunerative relationship.

10.  Intellectual Property.
     ---------------------

     (a)  Subject to the relevant provisions of the Patents Act 1977, the
          Registered Designs Act 1949 and the Copyright Designs and Patents Act
          1988 if at any time in the course of her employment the Executive
          makes or discovers or participates in the making or discovery of any
          Intellectual

                                  Page 19 of 25

<PAGE>

          Property relating to or capable of being used in the business of the
          Company or Holdings he will immediately disclose full details of such
          to the Company Board and at the request and expense of the Company he
          will do all things which may be necessary or desirable for obtaining
          appropriate forms of protection for the Intellectual Property in such
          parts of the world as may be specified by the Company and for vesting
          all rights in the same in the Company or its nominee.

     (b)  The Executive hereby irrevocably appoints the Company to be her
          attorney in her name and on her behalf to sign, execute or do any
          instrument or thing and generally to use her name for the purpose of
          giving to the Company or its nominee the full benefit of the
          provisions of Clause 10(a) and in favour of any third party a
          certificate in writing signed by any director or the secretary of the
          Company that any instrument or act falls within the authority
          conferred by Clause 10(a) shall be conclusive evidence that such is
          the case.

     (c)  The Executive hereby waives all of her moral rights (as defined in the
          Copyright Designs and Patents Act 1988) in respect of any acts of the
          Company or any acts of third parties done with the Company's authority
          in relation to any Intellectual Property which is the property of the
          Company by virtue of Clause 10(a).

     (d)  All rights and obligations under this Clause in respect of
          Intellectual Property made or discovered by the Executive during her
          employment will continue in full force and effect after the
          termination of her employment and will be binding upon the Executive's
          personal representatives.

11.  Legal Fees and Expenses.
     -----------------------

     If it should appear to Executive that the Company has failed to comply with
     any of its obligations under this Agreement or in the event that the
     Company or any other person takes or threatens to take any action to
     declare this Agreement void or unenforceable, or institutes any litigation
     or other action or proceeding designed to deny, or to recover from,
     Executive the benefits provided or intended to be provided to Executive
     hereunder, the Company irrevocably authorizes Executive from time to time
     to retain counsel of Executive's choice at the expense of the Company as
     hereafter provided, to advise and represent Executive in connection with
     any such interpretation, enforcement or defense, including without
     limitation the initiation or defense of any litigation or other legal
     action, whether by or against the Company or any director, officer,
     stockholder or other person affiliated with the Company, in any
     jurisdiction. Notwithstanding any existing or prior attorney-client
     relationship between the

                                  Page 20 of 25

<PAGE>

     Company and such counsel, the Company irrevocably consents to Executive's
     entering into an attorney-client relationship with such counsel, and in
     that connection the Company and Executive agree that a confidential
     relationship shall exist between Executive and such counsel. Without
     respect to whether Executive prevails, in whole or in part, in connection
     with any of the foregoing, the Company will pay and be solely financially
     responsible for any and all attorneys, and related fees and expenses
     incurred by Executive in connection with any of the foregoing; provided
     that, in regard to such matters, the Executive has not acted in bad faith
     or with no colorable claim of success. Such payments shall be made within
     five (5) business days after delivery of Executive's written requests for
     payment, accompanied by such evidence of fees and expenses incurred as the
     Company may reasonably require. Notwithstanding the foregoing provisions of
     this Section 11, the obligations of the Company under this Section 11 shall
     not exceed, in the aggregate, (pound)15,000.00.

12.  Withholding of Taxes.
     --------------------

     The Company may withhold from any amounts payable under this Agreement all
     applicable taxes that the Company is required to withhold pursuant to any
     applicable law, regulation or ruling.

13.  Successors and Binding Agreement.
     --------------------------------

     (a)  The Company will require any successor (whether direct or indirect, by
          purchase, merger, consolidation, reorganization or otherwise) to all
          or substantially all of the business or assets of the Company, by
          agreement in form and substance reasonably satisfactory to Executive,
          expressly to assume and agree to perform this Agreement in the same
          manner and to the same extent the Company would be required to perform
          if no such succession had taken place. This Agreement will be binding
          upon and inure to the benefit of the Company and any successor to the
          Company, including without limitation any persons acquiring directly
          or indirectly all or substantially all of the business or assets of
          the Company whether by purchase, merger, consolidation, reorganization
          or otherwise (and such successor shall thereafter be deemed the
          "Company" for the purposes of this Agreement), but will not otherwise
          be assignable, transferable or delegable by the Company.

     (b)  This Agreement will inure to the benefit of and be enforceable by
          Executive's personal or legal representatives, executors,
          administrators, successors, heirs, distributees and legatees.

     (c)  This Agreement is personal in nature and neither of the parties hereto
          shall, without the consent of the other, assign, transfer or delegate
          this

                                  Page 21 of 25

<PAGE>

          Agreement or any rights or obligations hereunder except as expressly
          provided in Sections 13(a) and 13(b). Without limiting the generality
          or effect of the foregoing, Executive's right to receive payments
          hereunder will not be assignable, transferable or delegable, whether
          by pledge, creation of a security interest, or otherwise, other than
          by a transfer by Executive's will or by the laws of descent and
          distribution and, in the event of any attempted assignment or transfer
          contrary to this Section 13(c), the Company shall have no liability to
          pay any amount so attempted to be assigned, transferred or delegated.

14.  Notices.
     -------

     For all purposes of this Agreement, all communications, including without
     limitation notices, consents, requests or approvals, required or permitted
     to be given hereunder shall be in writing and shall be deemed to have been
     duly given when hand delivered or dispatched by electronic facsimile
     transmission (with receipt thereof orally confirmed), or five (5) business
     days after having been mailed by United States registered or certified
     mail, return receipt requested, postage prepaid, or three (3) business days
     after having been sent by an internationally recognized overnight courier
     service, addressed to the Company (to the attention of the Chief Executive
     Officer of the Company) at its principal executive office and to Executive
     at her principal residence, or to such other address as any party may have
     furnished to the other in writing and in accordance herewith, except that
     notices of changes of address shall be effective only upon receipt.

15.  Governing Law.
     -------------

     The validity, interpretation, construction and performance of this
     Agreement will be governed by and construed in accordance with the
     substantive laws of England, without giving effect to the principles of
     conflict of laws, except as expressly provided herein. In the event the
     Company exercises its discretion under Section 9(e) to bring an action to
     enforce the covenants contained in Section 9 in a court of competent
     jurisdiction where the Executive has breached or threatened to breach such
     covenants, and in no other event, the parties agree that the court may
     apply the law of the jurisdiction in which such action is pending in order
     to enforce the covenants to the fullest extent permissible. Notwithstanding
     the foregoing, to the extent that Bermuda law restricts the ability of the
     Company to fully comply with the express terms of this Agreement, the
     Company may modify this Agreement to the extent necessary to comply with
     such law and such modification shall not be deemed to be a breach of this
     Agreement by the Company.

                                  Page 22 of 25

<PAGE>

16.  Validity.
     --------

     Any provision of this Agreement that is deemed invalid, illegal or
     unenforceable in any jurisdiction shall, as to that jurisdiction, be
     ineffective, to the extent of such invalidity, illegality or
     unenforceability, without affecting in any way the remaining provisions
     hereof in such jurisdiction or rendering that or any other provisions of
     this Agreement invalid, illegal or unenforceable in any other jurisdiction.
     If any covenant in Section 9 should be deemed invalid, illegal or
     unenforceable because its time, geographical area, or restricted activity,
     is considered excessive, such covenant shall be modified to the minimum
     extent necessary to render the modified covenant valid, legal and
     enforceable.

17.  Miscellaneous.
     -------------

     No provision of this Agreement may be modified, waived or discharged unless
     such waiver, modification or discharge is agreed to in writing signed by
     the Executive and the Company. No waiver by either party hereto at any time
     of any breach by the other party hereto or compliance with any condition or
     provision of this Agreement to be performed by such other party will be
     deemed a waiver of similar or dissimilar provisions or conditions at the
     same or at any prior or subsequent time. No agreements or representations,
     oral or otherwise, expressed or implied with respect to the subject matter
     hereof have been made by either party that are not set forth expressly in
     this Agreement. The headings used in this Agreement are intended for
     convenience or reference only and shall not in any manner amplify, limit,
     modify or otherwise be used in the construction or interpretation of any
     provision of this Agreement. References to Sections are references to
     Sections of this Agreement. Any reference in this Agreement to a provision
     of a statute, rule or regulation shall also include any successor thereto.

18.  Survival.
     --------

     Notwithstanding any provision of this Agreement to the contrary, the
     parties' respective rights and obligations under Sections 8, 9, 10, 11, 12
     and 13(b) will survive any termination or expiration of this Agreement or
     the termination of the Executive's employment for any reason whatsoever.

19.  Beneficiaries.
     -------------

     The Executive shall be entitled to select (and change, to the extent
     permitted under any applicable law) a beneficiary or beneficiaries to
     receive any compensation or benefit payable hereunder following the
     Executive's death, and may change such election, in either case by giving
     the Company written notice thereof in accordance with Section 14. In the
     event of the Executive's death or a

                                  Page 23 of 25

<PAGE>

     judicial determination of the Executive's incompetence, reference in this
     Agreement to the "Executive" shall be deemed, where appropriate, to the
     Executive's beneficiary, estate or other legal representative.

20.  Counterparts.
     ------------

     This Agreement may be executed in one or more counterparts, each of which
     shall be deemed to be an original but all of which together will constitute
     one and the same agreement.

21.  Entire Agreement.
     ----------------

     The terms of this Agreement are intended by the parties to be the final
     expression of their agreement with respect to the Executive's employment by
     the Company and may not be contradicted by evidence of any prior or
     contemporaneous agreement. The parties further intend that this Agreement
     shall constitute the complete and exclusive statement of its terms and that
     no extrinsic evidence whatsoever may be introduced in any judicial,
     administrative, or other legal proceedings to vary the terms of this
     Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                  Page 24 of 25

<PAGE>

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

                                               /s/ Deborah G. Percy
                                               --------------------------------
                                               Deborah G. Percy

                                               SCOTTISH RE GROUP LIMITED

                                               By:   /s/ Scott Willkomm
                                                     --------------------------
                                               Name: Scott Willkomm
                                               Title: Director

                                  Page 25 of 252003 STOCK INCENTIVE PLAN
                                     OF
                            RF MICRO DEVICES, INC.

                           Stock Option Agreement
                              (Senior Officers)

THIS AGREEMENT (together with Schedule A, attached hereto, the "Agreement"),
effective as of the date specified as the "Grant Date" on Schedule A attached
hereto, between RF MICRO DEVICES, INC., a North Carolina corporation (the
"Corporation"), and the individual identified on Schedule A attached hereto,
an employee of the Corporation or a related corporation (the "Participant");

                               R E C I T A L S:

	In furtherance of the purposes of the 2003 Stock Incentive Plan of RF
Micro Devices, Inc., as it may be hereafter amended (the "Plan"), the
Corporation and the Participant hereby agree as follows:

	1.	Incorporation of Plan.  The rights and duties of the Corporation
and the Participant under this Agreement shall in all respects be subject to
and governed by the provisions of the Plan, the terms of which are
incorporated herein by reference.  In the event of any conflict between the
provisions in the Agreement and those of the Plan, the provisions of the
Plan shall govern. Unless otherwise defined herein, capitalized terms in
this Agreement shall have the same definitions as set forth in the Plan.

	2.	Grant of Option; Term of Option.  The Corporation hereby grants
to the Participant pursuant to the Plan, as a matter of separate inducement
and agreement in connection with his employment or service to the
Corporation, and not in lieu of any salary or other compensation for his
services, the right and Option (the "Option") to purchase all or any part of
such aggregate number of shares (the "shares") of common stock of the
Corporation (the "Common Stock") at a purchase price (the "option price") as
specified on Schedule A, attached hereto, and subject to such other terms
and conditions as may be stated herein or in the Plan or on Schedule A.  The
Participant expressly acknowledges that the terms of Schedule A shall be
incorporated herein by reference and shall constitute part of this
Agreement.  The Corporation and the Participant further acknowledge that the
Corporation's signature on the signature page hereof, and the Participant's
signature on the Grant Letter contained in Schedule A, shall constitute
their acceptance of all of the terms of this Agreement.  The Option (or any
portion thereof) shall be designated as an Incentive Option or Nonqualified
Option, as stated on Schedule A.  To the extent that the Option or any
portion thereof is designated as an Incentive Option and such Option does
not qualify as an Incentive Option, the Option or portion thereof shall be
treated a as a Nonqualified Option.  Except as otherwise provided in the
Plan or this Agreement, this Option will expire if not exercised in full by
the date specified on Schedule A.

	3.	Exercise of Option.  Subject to the terms of the Plan and this
Agreement, the Option shall become exercisable on the date or dates set
forth on Schedule A attached hereto.  To the extent that an Option which is
exercisable is not exercised, such Option shall accumulate and be
exercisable by the Participant in whole or in part at any time prior to
expiration of the Option, subject to the terms of the Plan and this
Agreement.  The Participant expressly acknowledges that the Option may vest
and be exercisable only upon such terms and conditions as are provided in
Schedule A of this Agreement and otherwise in accordance with the terms of
the Plan.  Upon the exercise of an Option in whole or in part and payment of
the option price in accordance with the provisions of the Plan and this
Agreement, the Corporation shall as soon thereafter as practicable deliver
to the Participant a certificate or certificates for the shares purchased.
Payment of the option price may be made in the form: (i) of cash or check;
(ii) by delivery (by either actual delivery or attestation) of shares of
Common Stock owned by the Participant at the time of exercise for a

<PAGE>

period of at least one year and otherwise acceptable to the Administrator;
(iii) to the extent permitted by the Administrator and in accordance with
applicable law, by delivery of written notice of exercise to the Corporation
and delivery to a broker of written notice of exercise and irrevocable
instructions to promptly deliver to the Corporation the amount of sale or
loan proceeds to pay the option price; or (iv) by a combination of the
foregoing methods.  Shares delivered in payment of the option price shall be
valued at their fair market value on the date of exercise, as determined by
the Administrator by applying the provisions of the Plan.

	4.	No Right of Continued Employment.  Nothing contained in this
Agreement or the Plan shall confer upon the Participant any right to
continue in the employment or service of the Corporation or a related
corporation or interfere with the right of the Corporation or a related
corporation to terminate the Participant's employment or service at any
time.  Except as otherwise expressly provided in the Plan and this Agreement
(including but not limited to Schedule A), all rights of the Participant
under the Plan with respect to the unexercised portion of his Option shall
terminate upon termination of the employment of the Participant with the
Corporation or a related corporation.

	5.	Nontransferability of Option.  To the extent that this Option is
designated as an Incentive Option, the Option shall not be transferable
other than by will or the laws of intestate succession.  To the extent that
this Option is designated as a Nonqualified Option, the Option shall not be
transferable other than by will or the laws of intestate succession, except
as may be permitted by the Administrator of the Plan in a manner consistent
with the registration provisions of the Securities Act of 1933, as amended
(the "Securities Act").  Except as may be permitted by the preceding
sentence, this Option shall be exercisable during the Participant's lifetime
only by the Participant.

	6.	Superseding Agreement; Binding Effect.  This Agreement
supersedes any statements, representations or agreements of the Corporation
with respect to the grant of the Options or any related rights, and the
Participant hereby waives any rights or claims related to any such
statements, representations or agreements.  This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their
respective executors, administrators, heirs, successors and assigns.  This
Agreement does not supersede or amend any existing Change in Control
Agreement, Inventions, Confidentiality and Nonsolicitations Agreement,
Employment Agreement or any other similar agreement between the Participant
and the Company, including, but not limited to, any restrictive covenants
contained in such agreements.

	7.	Governing Law.  Except as otherwise provided in the Plan or
herein, this Agreement shall be construed and enforced according to the laws
of the State of North Carolina, without regard to the conflict of laws
provisions of any state.

	8. 	Amendment and Termination; Waiver.  Subject to the terms of the
Plan, this Agreement may be modified or amended only by the written
agreement of the parties hereto.  The waiver by the Corporation of a breach
of any provision of the Agreement by the Participant shall not operate or be
construed as a waiver of any subsequent breach by the Participant.

	9. 	No Rights as Shareholder.  The Participant or his legal
representative, legatees or distributees shall not be deemed to be the
holder of any shares subject to the Option and shall not have any rights of
a shareholder unless and until certificates for such shares have been issued
and delivered to him or them.

	10. 	Withholding.  The Participant acknowledges that the Corporation
shall require the Participant to pay the Corporation the amount of any
federal, state, local or other tax or other amount required by any
governmental authority to be withheld and paid over by the Corporation to
such authority for the account of the Participant, and the Participant
agrees, as a condition to the grant of the Option, to satisfy such
obligations.

                                     Page 2
<PAGE>

	11. 	Administration.  The authority to construe and interpret this
Agreement and the Plan, and to administer all aspects of the Plan, shall be
vested in the Administrator, and the Administrator shall have all powers
with respect to this Agreement as are provided in the Plan.  Any
interpretation of the Agreement by the Administrator and any decision made
by it with respect to the Agreement is final and binding.

	12. 	Notices.  Except as may be otherwise provided by the Plan, any
written notices provided for in this Agreement or the Plan shall be in
writing and shall be deemed sufficiently given if either hand delivered or
if sent by fax or overnight courier, or by postage paid first class mail.
Notices sent by mail shall be deemed received three business days after
mailed but in no event later than the date of actual receipt.  Notice may
also be provided by electronic submission, if and to the extent permitted by
the Administrator.  Notices shall be directed, if to the Participant, at the
Participant's address indicated by the Corporation's records, or if to the
Corporation, at the Corporation's principal office, attention Treasurer, RF
Micro Devices, Inc.

	13. 	Severability.  The provisions of this Agreement are severable
and if any one or more provisions may be determined to be illegal or
otherwise unenforceable, in whole or in part, the remaining provisions shall
nevertheless be binding and enforceable.

       14.	Restrictions on Option and Shares.  The Corporation may impose
such restrictions on the Option and any shares issued pursuant to the
exercise of the Option as it may deem advisable, including without
limitation restrictions under the federal securities laws, the requirements
of any stock exchange or similar organization and any blue sky or state
securities laws applicable to such shares.  Notwithstanding any other
provision in the Plan or the Agreement to the contrary, the Corporation
shall not be obligated to issue, deliver or transfer shares of Common Stock,
to make any other distribution of benefits, or to take any other action,
unless such delivery, distribution or action is in compliance with all
applicable laws, rules and regulations (including but not limited to the
requirements of the Securities Act).  The Corporation may cause a
restrictive legend to be placed on any certificate issued pursuant to the
exercise of the Option in such form as may be prescribed from time to time
by applicable laws and regulations or as may be advised by legal counsel.

       15.	Counterparts; Further Instruments.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  The parties hereto agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out
the purposes and intent of this Agreement.

	IN WITNESS WHEREOF, this Agreement has been executed on behalf of the
Corporation and by the Participant effective as of the Grant Date noted on
Schedule A, attached hereto.

						RF MICRO DEVICES, INC.

                                    By:/s/ROBERT A. BRUGGEWORTH
                                       -----------------------------------
                                       Robert A. Bruggeworth
                                       President & Chief Executive Officer

Attest:

/s/WILLIAM PRIDDY
---------------------------------------------
William Priddy
Assistant Secretary & Chief Financial Officer

[Signature page of Participant to follow on Schedule A/Grant Letter]

                                      Page 3

<PAGE>

                2003 Stock Incentive Plan of RF Micro Devices, Inc.
                             Stock Option Agreement
                              (Senior Officers)

                          Schedule A/Grant Letter
                          ------------------------

       1.	Pursuant to the terms and conditions of the Company's 2003 Stock
Incentive Plan (the "Plan"), you (the "Participant") have been granted an
Incentive Stock Option to purchase ________ shares (the "Option") of our
Common Stock as outlined below.

                 Granted To:
                              --------------------------
                 Grant Date:                     , 20
                              -------------------     --
            Options Granted:
                              --------------------------
     Option Price Per Share:  $
                               -------------------------
            Expiration Date:                     , 20
                               ------------------     --

	Vesting Schedule:	[25% per year for 4 years]
		_____ on ___/___/20__
		_____ on ___/___/20__
		_____ on ___/___/20__
		_____ on ___/___/20__

	2.	The following provisions shall apply with respect to the Option:

            (a)  In the event of the Participant's termination of employment
                 other than for cause (as defined in Section 6(d)(iii)(E) of
                 the Plan), and subject to Section 2(b), below, the following
                 provisions shall apply with respect to the Option:

                (i) The Option shall continue to vest according to the Vesting
                    Schedule stated in Section 1 above of this Schedule A as
                    if the Participant had remained an employee of the
                    Company; and

               (ii) That portion of the Option which was vested at the time of
                    the Participant's termination of employment or service or
                    which becomes vested following termination of employment
                    shall remain exercisable until the expiration of the term
                    of the Option (that is, the "Option Period," such period
                    to expire on the Expiration Date, stated above).

             (iii)  If the employment of the Participant is terminated for
                    cause, the Option shall be terminated immediately and the
                    Participant shall have no further rights related thereto
                    (unless the Administrator, in its discretion, determines
                    otherwise).

              (iv)  The Administrator shall have discretion to determine the
                    basis for termination and to interpret this provision.

            (b)  Notwithstanding Section 2(a) herein, the Administrator in its
                 sole discretion may determine that all or any part of the
                 Option shall not continue to vest following the Participant's
                 termination of employment and/or that all or any part of the
                 Option shall not remain exercisable for the full Option
                 Period, such determination to be based on such factors as may
                 be considered by the Administrator in its discretion
                 (including but in no way limited to factors related to the
                 conduct of the Participant), in which case the Option or
                 portion thereof shall, unless the Administrator determines
                 otherwise, be subject to the vesting and post-termination
                 exercise provisions of Section 6(d)(iii) of the Plan.  The
                 Administrator shall

                                      Page A-1
<PAGE>

                 exercise its discretion not to continue vesting of, and/or
                 not to extend the post-termination exercise period of, all or
                 a portion of the Option within thirty (30) days following the
                 date of termination of the Participant's employment.

       By my signature below, I, the Participant, hereby acknowledge receipt
of this Grant Letter and the Option Agreement (the "Agreement") dated
__________ ___, 2004, between the Participant and RF Micro Devices, Inc.
(the "Company") which is attached to this Grant Letter.  I understand that
the Grant Letter and other provisions of Schedule A herein are incorporated
by reference into the Agreement and constitute a part of the Agreement.  By
my signature below, I further agree to be bound by the terms of the Plan and
the Agreement, including but not limited to the terms of this Grant Letter
and the other provisions of Schedule A contained herein.  The Company
reserves the right to treat the Option and the Agreement as cancelled, void
and of no effect if the Participant fails to return a signed copy of the
Grant Letter within 30 days of grant date stated above.

Signature:                                                Date:
           ------------------------------------                 -----------

Note:  If there are any discrepancies in the name or address shown above,
please make the appropriate corrections on this form.  Please retain a copy
of the Agreement, including this Grant Letter, for your files.

                                      Page A-2

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