Document:

Exhibit 10.3

 

 

AMENDED AND
RESTATED

 

FLAGSTONE
REINSURANCE HOLDINGS LIMITED

 

PERFORMANCE SHARE
UNIT PLAN

 

 

November     ,
2006

 

 

Flagstone Reinsurance Holdings Limited
Performance Share Unit
Plan

 

1.                                      PURPOSE

 

The purpose of this Plan is to advance the interests
of the Company and its shareholders by providing PSUs as incentive compensation
to certain key Employees of the Company and its subsidiaries, as well as, at
the discretion of the Compensation Committee, employees of companies that
provide operational support or other services to the Company.

 

2.                                      DEFINITIONS

 

(a)                                  “Adverse Change in
the Plan” is defined in paragraph 12.

 

(b)                                 “Board” means
the Board of Directors of the Company.

 

(c)                                  “Change in Control”
is defined in paragraph 9.

 

(d)                                 “Common Shares”
shall mean common shares of the Company.

 

(e)                                  “Company”
means Flagstone Reinsurance Holdings Limited.

 

(f)                                    “Compensation
Committee” means the Compensation Committee of the Board.

 

(g)                                 “Constructive
Termination” is defined in paragraph 11.

 

(h)                                 “Employee” means
any person, including officers, employed by the Company or any Subsidiary of
the Company. Such term shall also include directors of the Company or any
Subsidiary of the Company. Such term shall also include, at the discretion of
the Compensation Committee, employees of companies that provide operational
support or other services to the Company. A person shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company
or (ii) transfers between locations of the Company or between the Company,
any Subsidiary or any successor. Notwithstanding anything else contained
herein, Mark Byrne shall not be considered an Employee for purposes of the
Plan.

 

(i)                                     “Exchange Act”
means the U.S. Securities Exchange Act of 1934, as amended.

 

(j)                                     “Hostile
Takeover Termination” is defined in paragraph 13.

 

(k)                                  “Maximum Award”
shall mean the maximum number of Common Shares that an Employee would be
entitled to receive if all of the performance

 

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goals set forth in a particular PSU were satisfied over the Performance
Period(s) set forth in such PSU.

 

(l)                                     “Performance
Period(s)” means the period(s) during which an employee must perform
pursuant to the grant of a PSU; provided, however, that any such period must
end on December 31 of the relevant fiscal year.

 

(m)                               “Plan” means this
Flagstone Reinsurance Holdings Limited Performance Share Unit Plan.

 

(n)                                 “PSU” means a
Performance Share Unit.

 

(o)                                 “Subsidiary”,
as used herein, has the meaning assigned to the term “subsidiary company” in
the Companies Act, 1981 of Bermuda.

 

(p)                                 “Termination
Without Cause” is defined in paragraph 10.

 

3.                                      ADMINISTRATION OF THE PLAN

 

(a)                                  Administration.
The Plan shall be administered by the Compensation Committee. No member of the
Compensation Committee shall be an Employee of the Company eligible to receive
PSUs under the Plan or shall have been eligible within one year prior to his
appointment to receive PSUs under the Plan or to receive awards under any other
plan of the Company or any of its subsidiaries under which participants are
entitled to acquire shares, share options or share appreciation rights of the
Company or any of its subsidiaries.

 

(b)                                 Powers of the
Administrator. The Compensation Committee shall have exclusive authority to
select the Employees to be granted PSUs, to determine the number of PSUs to be
granted and the terms (including the performance goals and Performance
Period(s)) of such PSUs and to prescribe the form of the instruments embodying
such PSUs. The Compensation Committee shall be authorized to interpret the Plan
and the PSUs granted under the Plan, to establish, amend and rescind any rules and
regulations relating to the Plan and to make any other determinations which it
believes necessary or advisable for the administration of the Plan. The
Compensation Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any PSU grant instrument in the
manner and to the extent the Compensation Committee deems desirable to carry it
into effect. Any decision of the Compensation Committee in the administration
of the Plan, as described herein, shall be final and conclusive. The
Compensation Committee may act only by a majority of its members in office,
except that the members thereof may authorize any one or more of their number
or any officer of the Company to execute and deliver documents on behalf of the
Compensation Committee. No member of the Company shall be liable for anything

 

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done, or for any failure to act, by him or by any other member of the
Compensation Committee in connection with the Plan, except for his own willful
misconduct or as expressly provided by statute.

 

(c)                                  Eligibility. PSUs
may be granted only to Employees, excluding Employees whose employment
contracts specify that they are not entitled to receive PSUs.

 

4.                                      AWARDS

 

(a)                                  Type of Awards
Under the Plan. Awards under the Plan shall be limited to PSUs.

 

(b)                                 Maximum Number PSUs
and Maximum Number of Common Shares that may be Issued Pursuant to PSUs Under
the Plan. The maximum number of PSUs that may be granted under the Plan shall
be 2,800,000 PSUs. The maximum number of PSUs that may be granted under the
Plan to any one Employee shall be half the maximum number of PSUs that may be
granted under the Plan to all Employees. The aggregate Maximum Awards that
shall be issuable under the Plan shall not exceed 5,600,000 Common Shares. If a
PSU is forfeited or otherwise cancelled, or if an Employee does not achieve the
Maximum Award pursuant to a PSU, the Common Shares underlying such PSU shall
become available for future grant under PSUs pursuant the Plan (unless the Plan
has terminated).

 

5.                                      RIGHTS WITH RESPECT TO PSUs

 

An Employee to whom PSUs are granted (and any
person succeeding to such employee’s rights pursuant to the Plan) shall have no
rights as a shareholder with respect to any Common Shares issuable pursuant
thereto until such Employee’s name is entered into the Register of Members of
the Company and until the date of the issuance of a share certificate (whether
or not delivered) therefor. Except as provided in paragraph 14, no adjustment
shall be made for dividends, distributions or other rights (whether ordinary or
extraordinary, and whether in cash, securities or other property) the record
date for which is prior to the date such share certificate is issued.

 

6.                                      PSUs

 

The grant of PSUs to an Employee will entitle
him to receive, without payment to the Company, all or a portion of the Maximum
Award, as determined by the Compensation Committee, if the terms and conditions
specified herein and in the PSU are satisfied. Payment in respect of a PSU
shall be made as provided in subparagraph 6(f). Each grant of PSUs shall be
subject to the following terms and conditions:

 

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(a)                                  The Compensation
Committee shall determine the number of PSUs to be granted to each Employee. PSUs
may be issued in different classes or series having different terms and
conditions.

 

(b)                                 Subject to
subparagraph 6(f), at the end of the Performance Period(s) specified in the
grant of a PSU, an Employee shall be entitled to receive the Maximum Award if
the performance objectives set forth in the grant of such PSU are attained in
full. If  the performance objectives
specified in the grant are attained in part but not in full, the Compensation
Committee, in its sole discretion, shall determine the percentage of the
Maximum Award, if any, to which the Employee is entitled under the PSU.

 

(c)                                  PSUs shall be
cancelled if the Employee’s continuous employment with the Company or any of
its subsidiaries or with any company that provides operational support or other
services to the Company shall terminate for any reason prior to the end of the
Performance Period(s), unless such termination results in Related Employment
(as defined in paragraph 8), and except as otherwise specified in this
subparagraph 6(c) or in subparagraphs 6(d) or 6(e). Notwithstanding
the foregoing and without regard to subparagraph 6(b):

 

(i)                                     if an Employee
shall, while employed by the Company or any of its subsidiaries or by any
company that provides operational support or other services to the Company or
while engaged in Related Employment, die or become disabled (within the meaning
of paragraph 7) prior to the end of the Performance Period(s), the PSUs granted
to such Employee shall be cancelled at the end of the next ending Performance
Period and he, or his legal representative, as the case may be, shall become
entitled to receive a cash payment (determined in accordance with subparagraph
6(f)) in respect of the Common Shares he would have received had he been in
continuous employment with the Company through the end of such Performance
Period and had the performance objectives, if any, that were imposed been
achieved; or

 

(ii)                                  if an Employee shall
retire under an approved retirement program of the Company or a Subsidiary (or
such other plan as may be approved by the Compensation Committee, in its sole
discretion, for this purpose) prior to the end of the Performance Period(s),
then:

 

(A)                              if at the time of his
retirement the Employee is 65 years old or older, the PSUs shall be cancelled
at the end of the next ending Performance Period, and he shall become entitled
to receive a cash payment (determined in accordance with subparagraph 6(f)) in
respect of the Common Shares he would have received had he been in continuous

 

5

 

employment with the Company through the end of the Performance Period
and had the performance objectives, if any, that were imposed been achieved,

 

(B)                                if at the time of his
retirement the Employee is less than 65 years old and his retirement occurs
before 24 months have elapsed since the grant of the PSUs, the PSUs shall be
cancelled and the Employee shall become entitled to receive a cash payment
(determined in accordance with subparagraph 6(f)) in respect one-ninth of the
Common Shares he would have received had he been in continuous employment with
the Company through the end of the next ending Performance Period and had the
performance objectives, if any, that were imposed been achieved, or

 

(C)                                if at the time of his
retirement the Employee is less than 65 years old and his retirement occurs
after 24 months or more have elapsed since the grant of the PSUs, the PSUs
shall be cancelled and the Employee shall become entitled to receive a cash
payment (determined in accordance with subparagraph 6(f)) in respect two-ninths
of the Common Shares he would have received had he been in continuous
employment with the Company through the end of the next ending Performance
Period and had the performance objectives, if any, that were imposed been
achieved.

 

(d)                                 If within 24 months
after a Change in Control of the Company as defined in paragraph 9 and prior to
the end of a Performance Period:

 

(i)                                     there is a
Termination Without Cause, as defined in paragraph 10, of the employment of an
Employee;

 

(ii)                                  there is a
Constructive Termination, as defined in paragraph 11, of the employment of an
Employee; or

 

(iii)                               there occurs an Adverse
Change in the Plan, as defined in paragraph 12, in respect of an Employee,
then:

 

(A)                              the Employee shall become
entitled to receive:

 

(1)                                  The Maximum Award
multiplied by a fraction the numerator of which is the number of full months
which have elapsed since the date of the PSU grant to the end of the first
month in which occurs one of the events described in clauses (i), (ii) or (iii) of
subparagraph 6(d) and the denominator of which is

 

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the total number of months in the Performance Period(s), plus

 

(2)                                  If the number of
Common Shares determined pursuant to subclause (1) above is less than the
Maximum Award (such difference being referred to herein as the “Deficiency”),
the Employee shall receive Common Shares equal to all or a portion of such
Deficiency as follows:

 

•                                          if
the Compensation Committee shall have determined, prior to the Change in
Control and based on the most recent performance status reports, that the
performance objectives for the particular grant were being met at the date of
the determination, the Employee shall receive Common Shares equal to the full
Deficiency, and

 

•                                          if
the determination of the Compensation Committee was that the performance
objectives for the particular grant were not being met at the date of such
determination, the Compensation Committee shall at the time of such
determination have also made a determination as to the percentage of the
Deficiency as to which the Employee is entitled to receive Common Shares, but
in no event shall such percentage be less than fifty percent (50%).

 

(B)                                Payment of any amount
in respect of PSUs as described above in this subparagraph 6(d) shall be
made as promptly as possible after the occurrence of one of the events
described in clauses 6(d)(i) through (iii).

 

(e)                                  Notwithstanding any
other provision in the Plan, in the event of a Hostile Takeover Termination,
the Employee shall immediately become entitled to the Maximum Award with
respect to all PSUs granted to such Employee. Such Maximum Award shall be
payable, in the sole discretion of the Compensation Committee, either by
issuance of Common Shares or in cash based on the market price per Common Share
as of the close of trading on the date of a Hostile Takeover Termination.

 

(f)                                    Payment of any
amount due to an Employee in respect of the PSUs shall be made by the Company
as promptly as practicable or shall be deferred to such other time or times as
the Compensation Committee shall determine,

 

7

 

and may be made in cash, by issuance of Common Shares, or partly in
cash and partly by issuance of Common Shares as determined by the Compensation
Committee. The amount of cash, if any, to be paid in lieu of issuance of Common
Shares shall be determined based on the market price per Common Share as of the
close of trading on the date on which an Employee becomes entitled to payment,
whether or not such payment is deferred. Such deferred payments may be made by
undertaking to pay cash in the future, together with such additional amounts as
may accrue thereon until the date or dates of payment, as determined by the
Compensation Committee in its sole discretion. In the case of issuance of
Common Shares to an Employee, such Employee’s services rendered to the Company
shall be deemed to constitute full payment to the Company of the par value of
such Common Shares.

 

7.                                      DISABILITY

 

For the purposes of this Plan, an Employee
shall be deemed to be disabled if the Compensation Committee shall determine
that the physical or mental condition of the Employee is such as would entitle
him to payment of monthly disability benefits under any disability plan of the
Company or a Subsidiary in which he is a participant.

 

8.                                      RELATED EMPLOYMENT

 

For the purposes of this Plan, Related
Employment shall mean the employment of an Employee by an employer which is
neither the Company nor a Subsidiary provided: (i) such employment is
undertaken by the individual and continued at the request of the Company or a
Subsidiary; (ii) immediately prior to undertaking such employment, the
individual was an officer or employee of the Company or a Subsidiary, or was
engaged in Related Employment as herein defined; and (iii) such employment
is recognized by the Compensation Committee, in its sole discretion, as Related
Employment for the purposes of this paragraph 7. The death or disability of an
individual during a period of Related Employment as herein defined shall be
treated, for purposes of this Plan, as if the death or onset of disability had
occurred while the individual was an officer or employee of the Company.

 

9.                                      CHANGE IN CONTROL

 

For purposes of this Plan, a “Change in Control of the Company” shall
occur if:

 

(a)                                  Any person or group
(within the meaning of Section 13(d) and 14(d)(2) of the
Exchange Act), excluding the initial subscribers to the Company, becomes the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
of fifty percent (50%) or more of the Company’s then outstanding shares; or

 

8

 

(b)                                 the business of the
Company for which the participant’s services are principally performed is
disposed of by the Company pursuant to a sale or other disposition of all or
substantially all of the business or business related assets of the Company
(including shares of a Subsidiary of the Company).

 

10.                               TERMINATION WITHOUT CAUSE

 

For purposes of this Plan, “Termination
Without Cause” shall mean a termination of the Employee’s employment with the
Company or a Subsidiary by the Company or the Subsidiary other than for (i) disability
as described in paragraph 7 or (ii) Cause. “Cause” shall mean (a) a
material breach by the Employee of any contract between the Employee and the
Company or a Subsidiary; (b) the willful and continued failure or refusal
by the Employee to perform any duties reasonably required by the Company or a
Subsidiary, after notification by the Company or the Subsidiary of such failure
or refusal, and failing to correct such behaviour within 20 days of such
notification; (c) commission by the Employee of a criminal offence or
other offence of moral turpitude; (d) perpetration by the Employee of a
dishonest act or common law fraud against the Company or a Subsidiary or a client
of either; or (e) the Employee willfully engaging in misconduct which is
materially injurious to the Company or a Subsidiary, including without
limitation, the disclosure of any trade secrets, financial models, or computer
software to persons outside the Company or a Subsidiary without the consent of
the Company or a Subsidiary. Notwithstanding anything herein to the contrary,
if the Employee’s employment with the Company or a Subsidiary shall terminate
due to a Change in Control of the Company as described in paragraph 9, where
the purchaser, as described in such paragraph, formally assumes the Company’s
obligations under this Plan or places the Employee in a similar or like plan
with no diminution of the value of the grants, such termination shall not be
deemed to be a “Termination Without Cause.”

 

11.                               CONSTRUCTIVE TERMINATION

 

For purposes of this plan, a “Constructive
Termination” shall mean a termination of employment with the Company or a
Subsidiary at the initiative of the Employee that the Employee declares by
prior written notice delivered to the Secretary of the Company to be a
Constructive Termination by the Company or a Subsidiary and which follows (a) a
material decrease in his salary or (b) a material diminution in the
authority, duties or responsibilities of his position with the result that the
Employee makes a determination in good faith that he cannot continue to carry
out his job in substantially the same manner as it was intended to be carried
out immediately before such diminution. Notwithstanding anything herein to the
contrary, Constructive Termination shall not occur

 

9

 

within the meaning of this paragraph 11 until
and unless 30 days have elapsed from the date the Company receives such written
notice without the Company curing or causing to be cured the circumstance or
circumstances described in this paragraph 11 on the basis of which the
declaration of Constructive Termination is given.

 

12.                               ADVERSE CHANGE IN THE PLAN

 

For purposes of this plan, an “Adverse Change
in the Plan” shall mean:

 

(a)                                  termination of the
Plan pursuant to subparagraph 18(a);

 

(b)                                 amendment of the Plan
pursuant to paragraph 17 that materially diminishes the value of PSU grants,
either to individual Employees or in the aggregate, unless there is substituted
concurrently authority to grant PSUs of comparable value to individual
Employees in the Plan or in the aggregate, as the case may be; or,

 

(c)                                  in respect of any
holder of a PSU a material diminution in his rights held under such PSU (except
as may occur under the terms of the PSU as originally granted) unless there is
substituted concurrently a PSU grant with a value at least comparable to the
loss in value attributable to such diminution in rights.

 

13.                               HOSTILE TAKEOVER TERMINATION

 

For purposes of this plan, a “Hostile
Takeover Termination” shall mean an Adverse Change in the Plan as described in
paragraph 12 or any termination (including, but not limited to, a Termination
Without Cause as described in paragraph 10 or a Constructive Termination as
described in paragraph 11) of an Employee’s employment with the Company or a
Subsidiary of the Company at any time following a Change in Control of the
Company, as described in paragraph 9, that was opposed by the two Board members
nominated by Haverford (Bermuda) Ltd.

 

14.                               DILUTION AND OTHER ADJUSTMENTS

 

In the event of any change in the issued and outstanding
Common Shares of the Company by reason of any share split, share dividend,
recapitalization, merger, consolidation, reorganization, amalgamation,
combination or exchange of Common Shares or other similar event, and if the
Compensation Committee shall determine, in its sole discretion, that such
change equitably requires an adjustment in the number or kind of Common Shares
that may be issued pursuant to PSUs under the Plan pursuant to paragraph 6 or
in any measure of performance, then such adjustment shall be made by the
Compensation Committee and shall be conclusive and binding for all purposes of
the Plan.

 

10

 

15.                               DESIGNATION OF BENEFICIARY BY EMPLOYEE

 

An Employee may name in writing to the
Compensation Committee a beneficiary to receive any payment to which he may be
entitled in respect of PSUs under the Plan in the event of his death. An
Employee may change his beneficiary from time to time in the same manner. If no
designated beneficiary is living on the date on which any amount becomes
payable to an Employee’s executors or administrators, the term “beneficiary” as
used in the Plan shall include such person or persons.

 

16.                               MISCELLANEOUS PROVISIONS

 

(a)                                  No employee or other
person shall have any claim or right to receive a grant of PSUs under the Plan.
Neither the Plan nor any action taken hereunder shall be construed as giving an
employee any right to be retained in the employ of the Company or any
Subsidiary.

 

(b)                                 An Employee’s rights
and interest under the Plan may not be assigned or transferred in whole or in
part either directly or by operation of law or otherwise (except in the event
of an Employee’s death), including but not limited to, execution, levy,
garnishment, attachment, pledge, bankruptcy or in any other manner and no such
right or interest of any Employee in the Plan shall be subject to any
obligation or liability or such Employee.

 

(c)                                  No Common Shares
shall be issued hereunder unless counsel for the Company shall be satisfied
that such issuance will be in compliance with applicable laws and Bermuda law.

 

(d)                                 The Company and its
subsidiaries shall have the right to deduct from any payment made under the
Plan any taxes required by law to be withheld with respect to such payment. It
shall be a condition to the obligation of the Company to issue Common Shares
upon payment of a PSU that the Employee pay to the Company, upon its demand,
such amount as may be required by the Company for the purpose of satisfying any
liability to withhold taxes. If the amount requested is not paid, the Company
may refuse to issue Common Shares.

 

(e)                                  The expenses of the
Plan shall be borne by the Company. However, if a grant of PSUs is made to an
employee of a Subsidiary:

 

(i)                                     if such grant
results in payment of cash to the Employee, such Subsidiary shall pay to the
Company an amount equal to such cash payment; and

 

(ii)                                  if the grant results
in the issuance to the Employee of Common Shares, such Subsidiary shall pay to
the Company an amount equal

 

11

 

to fair market value thereof, as determined by the Compensation
Committee, on the date such Common Shares are issued.

 

(f)                                    The Plan shall be
unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of assets to assure any payment
under the Plan.

 

(g)                                 By accepting any grant
or other benefit under the Plan, each Employee and each person claiming under
or through him shall be conclusively deemed to have indicated his acceptance
and ratification of, and consent to, any action taken under the Plan by the
Company, the Board or the Compensation Committee.

 

17.                               AMENDMENT

 

The Plan may be amended at any time and from
time to time by the Board in accordance with the bye-laws of the Company, but
no amendment which increases the aggregate number of Common Shares which may be
issued pursuant to the Plan or the class of employees eligible to participate
shall be effective unless and until the same is approved by the shareholders of
the Company. For the avoidance of doubt, any action taken by the Compensation
Committee pursuant to paragraph 14 does not require shareholder approval. No
amendment of the Plan shall adversely affect any right of any Employee with
respect to any previous grant without such Employee’s written consent.

 

18.                               TERMINATION

 

This Plan shall terminate upon the earlier of
the following dates or events to occur:

 

(a)                                  the adoption of a
resolution of the Board terminating the Plan; or

 

(b)                                 ten years from the
date the Plan is initially or subsequently approved and adopted by the
shareholders of the Company in accordance with paragraph 18 hereof.

 

No termination of the Plan shall alter or
impair any of the rights or obligations of any person, without his consent,
under any previous grant under the Plan.

 

19.                               SHAREHOLDER ADOPTION

 

The Plan shall be submitted to the
shareholders of the Company for their approval or adoption. The Plan shall not
be effective and no grant shall be made hereunder unless and until the Plan has
been so approved and adopted by the shareholders in the manner required by the
laws of Bermuda.

 

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20.                               GOVERNING LAW

 

The Plan shall be governed by and construed
and interpreted in accordance with the laws of Bermuda.

 

13

 

Schedule of Amendments

 

	
  Clause

  	
   

  	
  Amendment

  	
   

  	
  Approved

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule of Amendments

  	
   

  	
  New Schedule of Amendments included

  	
   

  	
  Board of Directors meeting held on [•] April, 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Definition of “Performance Period(s)”

  	
   

  	
  Language added to clarify that any such period must end on December 31.

  	
   

  	
  Board meeting held on [•] November , 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause 2(h)

  	
   

  	
  Definition of “Employee” changed to delete David Brown as an excluded
  party.

  	
   

  	
  Board of Directors meeting held on [•] April,
  2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause 4(b)

  	
   

  	
  Increase
  maximum number of PSUs to[•] and increase aggregate
  Maximum Awards to [•]Common
  Shares.

  	
   

  	
  Board
  meeting held on [•] November  , 2006.

  

  Shareholders’ meeting held on [•] November, 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause 6(e)

  	
   

  	
  Compensation Committee given the option to pay the Maximum Award
  either in cash or by issuance of Common Shares in the event of a Hostile
  Takeover Termination. Cash value of Common Shares based on market value
  rather than net asset value as of the date of a Hostile Takeover Termination.

  	
   

  	
  Board of Directors meeting held on [•] November,
  2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause 6(f)

  	
   

  	
  Cash value of Common Shares based on market value rather than net
  asset value as of the date employee becomes entitled 

  	
   

  	
  Board of Directors meeting held on [•] November,
  2006.

  

 

14

 

	
   

  	
   

  	
  to payment.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paragraph 17

  	
   

  	
  Language added to clarify that Compensation Committee action taken
  pursuant to Paragraph 14 does not require shareholder approval.

  	
   

  	
  Board of Directors meeting held on [•] November ,
  2006.

  

 

15Exhibit 10.4

 

Execution

November 2006

 

Amended and Restated Flagstone Reinsurance Holdings Limited

Employee Restricted Share Unit Plan

 

Section  1 – Purpose of the Plan

 

1.01
– Flagstone Reinsurance Holdings Limited (the “Company”) adopted this Amended
and Restated Flagstone Reinsurance Holdings Limited Employee Restricted Share
Unit Plan (the “Plan”), effective as of November    , 2006 for
the benefit of the Directors, officers, and Employees of the Company. The
purpose of the Plan is to promote a proprietary interest in the Company and its
Subsidiaries among its Directors, officers, and employees; encourage the
Directors, officers, and Employees of the Company to further the development of
the Company; and to attract and retain the key employees necessary for the
Company’s long-term success. This Plan amends and restates in its entirety the
Flagstone Reinsurance Holdings Limited Employee Restricted Share Unit Plan
adopted on July 1, 2006.

 

Section
2 – Definitions

 

2.01
– General – Whenever the following terms are used in the Plan with the first
letter capitalized, they shall have the meanings specified below unless the
context clearly indicates to the contrary or as provided under Section 7 of the
Plan.

 

2.02
– “Account” of a Participant means his or her individual account, if any, or
the account of a Director’s employer, as established in accordance with Section
6.

 

2.03
– “Beneficiary” means the person or persons designated by a Participant, on a
form provided by the Plan Administrator, to receive payments under the Plan in
the event of the Participant’s death.

 

2.04   – “Board”
means Board of Directors of the Company.

 

2.05
– “Cause” shall mean (a) a material breach by a Participant of any contract
between the Participant and the Company or a Subsidiary; (b) the willful and
continued failure or refusal by the Participant to perform any duties
reasonably required by the Company or a Subsidiary, after notification by the
Company or the Subsidiary of such failure or refusal, and failure to correct
such behaviour within 20 days of such notification; (c) commission by the
Participant of a criminal offence or other offence of moral turpitude; (d)
perpetration by the Participant of a dishonest act or common law fraud against
the Company or a Subsidiary or a client of either; or (e) the Participant
willfully engaging in misconduct which is materially injurious to the Company
or a Subsidiary, including without limitation, the disclosure of any trade
secrets, financial models, or computer software to persons outside the Company
or a Subsidiary without the consent of the Company or a Subsidiary.

 

2.07
– “Compensation Committee” means the Compensation Committee of the Board of
Directors of the Company.

 

2.08
– “Common Stock” means common shares of the Company.

 

2.09
– “Company” means Flagstone Reinsurance Holdings Limited.

 

2.10
– “Director” means a member of the board of directors of the Company or its
Subsidiaries.

 

2.11 – “Disability” means a condition by which the Compensation
Committee has determined that the physical or mental condition of the
Participant is such as would entitle him to receive payment of monthly benefits
under any disability plan of the Company or a Subsidiary in which the
individual participates.

 

2.12
– “Employee” means an employee of the Company or its Subsidiaries.

 

 

2.13
– “Grant Certificate” means a certificate evidencing the credit of or grant to
a Participant of a Restricted Share Unit under the Plan (sample attached as
Appendix 4).

 

2.14
– “Participant” means any Employee, officer, or Director, except for Management
Directors, of the Company or its Subsidiaries who (1) are eligible for RSU
credits or grants under the Plan and (2) the Compensation Committee decides
pursuant to its authority under Section 3.01 of the Plan to grant or credit an
RSU award.

 

2.15
– “Plan” means the Flagstone Reinsurance Holdings Limited Employee Restricted
Share Unit Plan, as it may be amended from time to time.

 

2.16
– “Plan Administrator” means the Compensation Committee, or the person or
persons appointed by the Compensation Committee to serve under Section 4 of the
Plan.

 

2.17
– “Restricted Share Unit” (or “RSU”) means a right to receive a payment, in
cash or in actual Common Stock of the Company, of the value of Common Stock of
the Company, subject to the terms of this Plan and the respective Grant Certificate.

 

2.18
– “Subsidiary” means a subsidiary of the Company.

 

Section
3 – Awards Subject to the Plan

 

3.01
– Under the Plan, the Compensation Committee, in its sole discretion, may grant
RSUs to Participants or credit RSUs to Directors’ Accounts. The total stock
credits or grants under the Plan shall not exceed (a) that amount required to
satisfy the Director requests for fees to be paid in shares, plus (b) 0.2
percent of the total issued and outstanding share capital of the Company per
annum or as decided by the Compensation Committee. To the extent that any RSU
granted or credited under the Plan expires, terminates, or is cancelled, such
unissued stock credits or grants shall again be available for grant or credit
under the Plan.

 

3.02
- The RSUs will be normally be settled by delivery of Common Stock, but can in
be settled to the Participant on distribution in cash, by issuance of shares of
Common Stock, or partly in cash and partly by issuance of shares of Common
Stock as determined by the Compensation Committee; provided that Participants
who are UK domiciled for tax purposes may only receive distributions by
issuance of shares of Common Stock.

 

3.03
- The amount of cash, if any, to be paid in lieu of issuance of shares of
Common Stock under the Plan shall be determined based on the net book value per
share of Common Stock (or market value, if the Company’s shares are freely tradable
on an exchange) as of the date on which a Participant becomes entitled to payment,
whether or not such payment is deferred.

 

Section
4 – Administration

 

4.01
– The Plan shall be administered by the Compensation Committee, and the Compensation
Committee shall have the sole authority to interpret the Plan, to establish and
revise rules and regulations relating to the Plan (including this Plan
document), and to make any other determinations that it believes necessary or
advisable for the administration of the Plan. All of the powers and
responsibilities of the Compensation Committee under the Plan may be delegated
by the Compensation Committee, in writing, to any Compensation Subcommittee or
appropriate

 

2

 

Company
personnel thereof. The Board of Directors or the Shareholders of the Company
can overrule the Compensation Committee.

 

Section
5 – Participation

 

5.01
– The Management Committee of the Company will recommend, and the Compensation
Committee will approve, the Participants in the Plan. Participation in the Plan
will be limited to officers, Employees, and Directors (excluding Management
Directors) of the Company or its Subsidiaries. Participants in the Plan may
also participate in the Flagstone Reinsurance Holdings Limited Performance
Share Unit Plan (the “PSU Plan”) sponsored by the Company, however such persons
shall not be eligible to receive grants of RSUs and Performance Share Units in the
same calendar year. In addition, participation in the Plan shall be limited
only to those individuals who are approved by the Compensation Committee and
whose participation in the Plan is evidenced by a Grant Certificate executed by
the Company.

 

Section
6 – Terms of the Grant or Credit of RSUs

 

6.01
– The Compensation Committee may grant RSUs to a Participant pursuant to the
Plan. In addition, a Director of the Company may elect to substitute all or a
percentage of his/her compensation for services performed for the Company with
RSUs issued under the Plan, such amount to be credited to his/her Account as
RSUs. A Director who serves on the Board on behalf of his/her employer may
stipulate that amounts be credited to such employer’s Account as RSUs. Grants
or credits of RSUs shall be evidenced by a Grant Certificate in such form as
the Compensation Committee shall from time to time approve.

 

6.02 — A Director
who is a Participant in the Plan shall elect no later than December 31 of the
year prior to the year with respect to which the compensation is earned (or for
the first year of the plan, no later than the last day of the month prior to
the Plan’s effective date), the dollar amount or percentage of compensation for
such year to be converted into RSUs and credited to his/her Account pursuant to
the written terms of the Plan and the Grant Certificate.

 

6.03
– Upon a grant or credit of an award of RSUs under the Plan, as applicable, a
Participant’s Account shall be credited with the amount of such grant or
credit.

 

6.04
– Actual shares of Company Common Stock or cash (as determined by the
Committee), equal in amount to the number of RSUs that have vested, will be
distributed to the Participant upon the earlier of the following: (a)
separation from service other than for cause, (b) satisfaction of the
applicable vesting period(s), (c) a specific date, or (d) such other time as
the Committee may in its sole discretion determine (collectively, the “Distribution
Dates”). The Company shall deliver the shares of Common Stock of the Company
and/or cash to the Participant as soon as administratively feasible after the
identified date of distribution.

 

6.05
– Grants of RSUs under the Plan will normally fully vest on the date that is
specified in the applicable Grant Certificate, subject to the following:

 

6.05.1
– Upon a Participant’s death or Disability, he/she shall become fully vested in
all RSUs that have been credited or granted under the Plan.

 

6.05.2
– Except as otherwise provided herein, the unvested RSU’s of Participants who
are Employees or Officers shall be canceled upon notice of termination from the
Employer to the Employee or the notice of resignation of the Employee.

 

3

 

6.05.3
– Notwithstanding 6.06.2, at the discretion of the Compensation Committee,
vesting of RSUs that are granted under the Plan may continue for Employees who
separate from service with the Company after at least five years’ service.

 

6.05.4
– If an Employee is terminated for Cause all of his RSU’s will be automatically
canceled.

 

6.05.5
– The RSU’s of a Director shall normally vest on the date noted on the Grant
Certificate, unless accelerated under 6.04.1, and regardless of whether that
Director continues to serve. The Compensation Committee can cancel the RSU’s of
a Director, whether vested or not, if that director engages in action deemed to
be materially hostile to the interests of the Company, as judged by the Board
of Directors.

 

6.05.6
– The Compensation Committee may, in its sole discretion, accelerate the
vesting of any RSUs credited or granted under the Plan at any time.

 

6.06
– RSUs and the rights and privileges conferred therewith shall not be sold,
transferred, encumbered, hypothecated, or otherwise anticipated by the
Participant, except as provided for under the terms of the Plan. This Award is
not liable for or subject to, in whole or in part, the debts, contracts,
liabilities, or torts of the Participant, nor shall it be subject to
garnishment, attachment, execution, levy, or other legal or equitable process.

 

Section
7 – Special Provisions

 

7.01
– The Plan has special provisions which apply variously to citizens, residents,
domiciliaries, of certain countries, or employees of Company subsidiaries
located in certain countries. These provisions form part of this plan and are
attached as Appendix 3.

 

7.02
– The Company may extend or amend Appendix 3 from time to time in order to
accommodate the development of the Company in new countries, to maintain the
most tax-favorable status available in various countries under the applicable
laws and further modifications/amendments carried out from time to time. Such
technical amendments require the approval of the Management Compensation
Committee of the Company, and the Chairman of the Compensation Committee.

 

Section
8 – Taxation 

 

8.01
– Participants shall be responsible for all individual tax consequences of the
RSU grants under the Plan. Where feasible, the Plan will be interpreted and
administered to provide favorable tax treatment to the Participant, subject to
the compliance with the applicable laws of their respective jurisdiction.

 

Section
9 – Designation of Beneficiary

 

9.01
– A Participant, by filing the prescribed form (the “Beneficiary Designation
Form”, sample attached as Appendix 1) with the Plan Administrator, may
designate one or more Beneficiaries and successor Beneficiaries who shall be
given the rights to the RSUs in accordance with the terms of the Plan in the
event of the Participant’s death. A Participant may change the designation of a
Beneficiary at any time by completing a new Beneficiary Designation

 

4

 

Form
that shall revoke and supersede all earlier forms. In the event a Participant
does not file a Beneficiary Designation Form designating one or more
Beneficiaries, or no designated Beneficiary survives the Participant, the RSUs
shall be given to the individual to whom such right passes by will or the laws
of descent and distribution and/or succession.

 

Section
10 – Expenses of the Plan

 

10.01
– Costs of administration of the Plan will be paid by the Company.

 

Section
11 – Claims Procedure

 

11.01
– In general, any claim for benefits under the Plan shall be filed by the
Participant or beneficiary (“claimant”) on the form prescribed for such purpose
with the Plan Administrator. If a claim for benefits under the Plan is wholly
or partially denied, notice of the decision shall be furnished to the claimant
by the Plan Administrator within a reasonable period of time after receipt of
the claim by the Plan Administrator. A Participant who is denied a claim for
benefits may appeal to the Compensation Committee for a review of the Plan
Administrator’s decision. The decision of the Compensation Committee shall be
furnished to the Participant within a reasonable period of receipt of the
request for review and the decision of the Compensation Committee shall be
final and binding to the Participant.

 

Section
12 – Termination or Amendment of the Plan

 

12.01
– The Plan may be amended in whole or in part from time to time, or may be
terminated, by the Board in accordance with the bye-laws of the Company,
provided that in event of such amendment or termination, the rights of the
Participants related to an RSU that have been granted under the Plan shall be
preserved and maintained and no amendment may confer additional benefits upon
Participants without prior approval by the Board. Notice of any amendment or
termination of the Plan shall be given in writing to the Participant.

 

Section
13 –Term of the Plan

 

13.01
– The Plan shall become effective on the date it is adopted by the Company and
shall continue in effect as amended from time to time until terminated pursuant
to Section 12.

 

Section
14 – Rights as a Stockholder

 

14.01
– No Participant shall have any rights (including voting or dividend rights) as
a shareholder of the Company with respect to any Common Stock covered by, or
related to, any RSU granted or credited pursuant to the Plan until the date of
the delivery of a stock certificate with respect to such Common Stock.

 

Section
15  – Anti-Dilution and Other Adjustments

 

15.01 – In the event of any change in the issued and
outstanding shares of Common Stock of the Company by reason of any share split,
share dividend, recapitalization, merger, consolidation, reorganization,
amalgamation, combination or exchange of shares of Common Stock or other
similar event, and if the Compensation Committee shall determine, in its sole
discretion, that such change equitably requires an adjustment in the number or
kind of shares of Common Stock of the Company that may be issued pursuant to
RSUs under the Plan pursuant to paragraph 6, then such adjustment shall be made
by the Compensation Committee and shall be conclusive and binding for all
purposes of the Plan.

 

5

 

Section
16 – Miscellaneous

 

16.01
– If any provision of this Plan shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provisions hereof,
and this Plan shall be construed and enforced as if such provisions had not
been included.

 

16.02
– Except by will or the laws of descent and distribution and/or succession, a
Participant’s rights and interest under the Plan may not be assigned or
transferred in whole or in part either directly or by operation of law or
otherwise (except in the event of Participant’s 
death), including but not limited to, execution, levy, garnishment,
attachment, pledge, bankruptcy or in any other manner and no such right or
interest of any Participant in the Plan shall be subject to any obligation or
liability or such Participant; provided that Directors shall be permitted to assign
their rights under the Plan to their employer or an affiliate of their
employer, as approved by the Compensation Committee.

 

16.03
– Except to the extent specifically set forth in the Grant Certificate, the
Participant’s rights under the Plan shall be governed in all aspects by the
terms of the Plan, including the provisions that authorize the Plan
Administrator to administer and interpret the Plan and that provide that the
Plan Administrator’s decisions, determinations, and interpretations with respect
to the Plan are final and conclusive on all persons affected hereby. Additionally,
This Plan shall be construed in accordance with, and governed by the laws of
the Bermuda.

 

16.04
– Nothing in this Plan, nor any action taken pursuant to this Plan, shall be
deemed to give any Participant any right to remain in the employ of the Company
or affect the right of the Company to terminate a Participant’s employment at
any time, with or without Cause.

 

*              *              *              *              *

 

As
evidence of its adoption of the Plan, Flagstone Reinsurance Holdings Limited
has caused this instrument to be signed by its officer of representative duly
authorized on this     day of November, 2006.

 

	
   

  	
  Flagstone
  Reinsurance Holdings Limited

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

6

 

APPENDIX 1

 

Beneficiary Designation Form

 

To:  The Plan Administrator of the Flagstone
Reinsurance Holdings Limited Employee Restricted Share Unit Plan

 

	
  From:

  	
   

  	
   

  

 

 

*              *              *              *              *

 

 

Pursuant
to Section 9 of the Flagstone Reinsurance Holdings Limited Employee Restricted
Share Unit Plan (the “Plan”), I hereby designate the following person(s) as
beneficiar(ies) who on my death shall be entitled to receive amounts under the
Plan and respective Grant Certificate:

 

 

	
  Primary Beneficiary Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Secondary Beneficiary Name:

  	
   

  	
   

  
					

 

 

In making the above
designation, I reserve the right to revoke this beneficiary designation or
change the beneficiar(ies) designated at any time or times and without the
consent of any beneficiary.

 

This beneficiary
designation cancels and supersedes any beneficiary designation previously made
with respect to this Plan and respective Grant Certificate.

 

 

	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  

 

7

 

APPENDIX 2

 

Director Participant Election and Account Designation Form

 

To:  The Plan Administrator of the Flagstone
Reinsurance Holdings Limited Employee Restricted Share Unit Plan

 

	
  From:

  	
   

  	
   

  

 

*              *              *              *              *

 

Amount
of Compensation Deferred

 

I
hereby elect to have the following amounts of compensation for services
performed for the Company for the 20    year converted into
RSUs.

 

              %  or $           

 

Distribution
Date(s)

 

                                Separation from service

 

                                A date certain (please specify date:                           )

 

Employer
Account Designation (for Directors providing services on behalf of their
Employer)

 

Pursuant
to Section 6.01 of the Flagstone Reinsurance Holdings Limited Employee
Restricted Share Unit Plan (the “Plan”), I hereby designate the following as my
employer on whose behalf I provide services to the Board of Directors, and to
whose account RSUs shall be credited:

 

	
   

  	
  Employer
  Account Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Director
  Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  
						

 

8

 

APPENDIX
3

 

 Special Provisions for citizens or residents
of certain countries

 

United
States Provisions

 

Coverage:
These provisions apply to Participants to whom Section 409A of the United
States Internal Revenue Code of 1986 (as amended from time to time)(“the Code”)
applies.

 

Provisions:

 

1.
Each grant and credit of RSUs shall comply with the minimum requirements of
Code Section 409A,

 

2.
any action that may be taken (and, to the extent possible, any action actually
taken) by the Company or the Participant shall not be taken (or shall be void
and without effect), if such action violates the requirements of Section 409A.

 

3.
The definitions contained within this Plan and the respective Grant Certificate
shall be interpreted and construed to comply with the minimum requirements of
Section 409A.

 

Canada
Provisions

 

Coverage:
These provisions apply to Participants who are tax resident in Canada.

 

Provisions:
Distributions to Participants to whom this section applies shall be made only
upon the respective Participant’s separation from service or retirement from
the Company or its Subsidiary, and shall me made within one year of such
separation or retirement..

 

India
Provisions

 

Coverage:
These provisions apply to Participants who are employees of West End Capital
Management BPO Services (India) Pvt. Ltd., or any other Subsidiary of the
Company incorporated and existing under the laws of India (“Indian Subsidiary)
(collectively, “Indian Participants”)

 

Provisions:
the following provisions shall apply with respect to any RSUs granted prior to
a public offering of the capital stock of the Company/Indian Subsidiary, and
only to the extent required by applicable law:

 

(a)          The
aggregate number of RSUs which may be granted to Indian Participants under this
Plan shall not exceed 300,000 or as decided by the Compensation Committee, and
subject to the provisions of Section 3.01 hereof. RSU credits or grants subject
to increase in accordance with the terms of the plan pursuant to the approval
received from the Board of Directors/Shareholders of the Company

 

(b)         The
RSUs will be actually paid to the Indian Participants in accordance with the
Section 3.02 and 3.03 of the Plan.

 

(c)          The
approval of the Board of the Company to the Plan was accorded on 16 June 2006.
The assent of the Board of the Company, approving the adoption of the Plan
including this Appendix, for the Indian Subsidiary was accorded on 16 June 2006.
The assent of the board of directors of the Indian Subsidiary approving the
adoption of the Plan including this Appendix, for the Indian Subsidiary was
accorded on [          ].

 

9

 

(d)         Participation
in the Plan and the grant of Awards shall be awarded to such Indian Participant
providing bona fide services to or for, one or more Indian Subsidiary as may be
selected by the Board or such Compensation Committee as designated by the
Board, in consultation with the board of directors of the Indian Subsidiary,
from time to time. The Board may also grant RSUs to individuals in connection
with hiring, retention or otherwise, prior to the date the individual first
performs services for an Indian Subsidiary, provided that such RSUs shall not
become vested or exercisable prior to the date the individual first commences
performance of such services. Provided, however, that an Employee who is a
Promoter or belongs to the Promoter Group or a director who either by himself
or through his relative or through any body corporate, directly or indirectly
holds more than 10% of the outstanding shall not be eligible to participate in
the Plan

 

(e)          For
purposes of the above paragraph (d)

 

a.               “Promoter” means –

 

i.      the person or persons who are in over-all
control of the Indian Subsidiary;

 

ii.               the
person or persons who are instrumental in the formation of the Indian
Subsidiary or programme pursuant to which shares of the Indian Subsidiary may
be offered to the public;

 

iii.            the
person or persons who are named in the offer document (inviting subscription
from the public to the shares of the Indian Subsidiary) as promoter(s), in the
event the Indian Subsidiary decided to offer shares to the public.

 

Provided
that a director or officer of the Indian Subsidiary, if he is acting as such
only in his professional capacity, will not be deemed to be a Promoter, and
that where a Promoter of the Indian Subsidiary is a body corporate, the
promoter of that body corporate shall also be deemed to be a Promoter of the
Indian Subsidiary.

 

b.              “Promoter Group” means:

 

i.                  an immediate relative of the Promoter (i.e.
spouse of that person, or any parent, brother, sister or child of the person or
of the spouse); and,

 

ii.               persons
whose shareholding is aggregated for the purpose of disclosing in the offer
document (inviting subscription from the public to the shares of the Indian
Subsidiary) “shareholding of the promoter group”

 

c.               “Relative” means immediate relative namely
spouse, parent, brother, sister or child of the person or the spouse.

 

(f)            All defined terms that are not otherwise
defined under this Appendix shall have the meaning attributed to them under the
provisions of the Plan.

 

(g)         Except to the extent as set forth in this Appendix and where not
contrary to the meaning or intention herein, the provisions of the Plan shall
apply to the Indian Participants granted the RSU.

 

UK
Provisions

 

Distributions
to Participants who are UK [resident domiciled for tax purposes]  shall be made only in shares, notwithstanding
the provisions Section 3.02, above.

 

10

 

APPENDIX 4

 

Sample RSU Grant Certificate

 

This
CERTIFICATE, effective as of the                       
day of                   ,
20    (the “Award Date”), certifies that Flagstone Reinsurance
Holdings Limited (the “Company”) has awarded to                                      
(the “Participant”) Restricted Share Units (“RSUs”) in the amounts and on the
terms set forth below, subject to and in accordance with the Flagstone
Reinsurance Holdings Limited Restricted Share Unit Plan, dated [•] (“the RSU Plan”).

 

The Company awards to the Participant on the Award Date an amount of
RSUs as follows:

 

	
  RSU Holder

  	
  «Column1»

  
	
   

  	
   

  
	
  Restricted Share Units

  	
  «Column2»

  
	
   

  	
   

  
	
  RSU Series

  	
  [•]

  
	
   

  	
   

  
	
  Grant Date

  	
  [•]

  
	
   

  	
   

  
	
  Vesting Date

  	
  [Normal Vesting: Grants of these RSUs under the Plan will fully vest on
  the date that is two years after the Grant Date immediately above, except as
  may be modified by section by the terms of the RSU Plan, and in particular
  section [6.05]. 

  

        -or-

  

  [The Participant is a Director and is fully and immediately vested in RSUs
  that are credited to his/her Account under the Plan.]

  

 

 

Upon occurrence of a Distribution Date, the shares of Company Common
Stock or cash (as determined solely by the Compensation Committee of the Board
of Directors of the Company) shall be payable to the Participant and shall be
delivered to the Participant as soon as administratively feasible.

 

This RSU grant is subject to the terms and conditions described in the
RSU Plan, as such plan may be properly amended from time to time. The terms of the RSU Plan are incorporated
herein, and capitalized words, if not defined herein, shall be given the same
meaning as under the terms of the Plan, unless the context requires a different
meaning.

 

This
RSU grant is not transferable, and will lapse upon the occasion of an
assignment, charge, disposal or other dealing with the rights conveyed by it in
any other circumstances.

 

 

 

	
   

  	
   

  
	
  Signed

  
	
  Mark Byrne, Chairman

  

 

11

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