Document:

EX-10.3:

 

Exhibit 10.3

NONEMPLOYEE DIRECTOR SHARE UNIT AWARD AGREEMENT

Platinum Underwriters Holdings, Ltd.

2002 Share Incentive Plan (or Successor Plan)

          This NONEMPLOYEE DIRECTOR SHARE UNIT AWARD AGREEMENT (this “Agreement”) made as of
this                                          day of                                         , 20                    , between Platinum Underwriters Holdings, Ltd., a Bermuda
company (the “Company”), and                                         (the “Participant”), is made
pursuant to the terms of the 2002 Share Incentive Plan or any successor plan (the “Plan”).
The applicable terms of the Plan are incorporated herein by reference, and capitalized terms used
herein but not defined shall have the meanings set forth in the Plan.

          Section 1. Share Unit Award. The Company hereby grants to the Participant, on the
terms and conditions set forth herein, an Award of ___ Share Units (the “Share Units”).
The Share Units are notional, non-voting units of measurement based on the Fair Market Value of the
Common Shares, which will entitle the Participant to receive a payment, subject to the terms
hereof, in Common Shares within thirty (30) days following the applicable vesting date.

          Section 2. Vesting Requirements.

          A. Time-Based Vesting. The Share Units hereunder shall become fully vested on the
earlier to occur of the first anniversary of the date hereof, and the date of the Company’s next
Annual General Meeting of Shareholders following the date hereof, subject to the Participant’s
continued service with the Company through the applicable vesting date.

          B. Accelerated Vesting. Notwithstanding the foregoing, upon the Participant’s death
or disability (within the meaning of Section 409A(a)(2)(C) of the Code (a “Disability”)),
or upon the occurrence of a Change in Control, the Share Units shall become fully vested, and
shall be payable in accordance with Section 5 hereof, to the extent that they have not previously
been forfeited in accordance with Section 3 hereof.

          Section 3. Termination of Service. In the event of the Participant’s termination of
service for any reason other than death or Disability, the Share Units shall be forfeited and
automatically cancelled without further action of the Company.

          Section 4. Dividend Equivalent Rights. In the event that any dividends are paid on
Common Shares during the term hereof, the Participant shall be credited with Dividend Equivalent
Rights in respect of the dividends paid on the Common Shares to which the Participant will be
entitled upon the vesting of the Share Units. Such Dividend Equivalent Rights will accumulate as
dollar amounts (and not as additional Share Units), subject to the terms hereof. All such Dividend
Equivalent Rights shall be subject to the same vesting requirements that apply to the Share Units
from which the Dividend Equivalent Rights are derived.

 

 

          Section 5. Payment of Award. Payment of vested Share Units shall be made in Common
Shares within thirty (30) days following the applicable vesting date (or within 30 days following
the acceleration of vesting) as set forth in Section 2 hereof. Notwithstanding the foregoing, any
Dividend Equivalent Rights credited pursuant to Section 4 hereof shall be paid to the Participant
in cash at the time that the Common Shares are paid hereunder.

          Section 6. Restrictions on Transfer. No portion of the Share Units may be sold,
assigned, transferred, encumbered, hypothecated or pledged by the Participant, other than to the
Company as a result of forfeiture of the Share Units as provided herein, unless and until the
payment of the Share Units in accordance with Section 5 hereof.

          Section 7. Limitation of Rights. The Participant shall not have any privileges of a
shareholder of the Company with respect to the Common Shares payable hereunder, including without
limitation any right to vote such shares or to receive dividends or other distributions in respect
thereof (other than as provided in Section 4 hereof), until the date of the issuance to the
Participant of a share certificate evidencing such Common Shares.

          Section 8. Changes in Capitalization. The Award shall be subject to the provisions of
the Plan relating to adjustments for changes in corporate capitalization.

          Section 9. Notices. Any notice hereunder by the Participant shall be given to the
Company in writing and such notice shall be deemed duly given only upon receipt thereof by the
Secretary of the Company. Any notice hereunder by the Company shall be given to the Participant in
writing and such notice shall be deemed duly given only upon receipt thereof at such address as the
Participant may have on file with the Company.

          Section 10. Construction. This Agreement and the Award evidenced hereby are granted
by the Company pursuant to the Plan and are in all respects subject to the terms and conditions of
the Plan. The Participant hereby acknowledges that a copy of the Plan has been delivered to the
Participant and accepts the Share Units hereunder subject to all terms and provisions of the Plan,
which is incorporated herein by reference. In the event of a conflict or ambiguity between any
term or provision contained herein and a term or provision of the Plan, then the Plan shall govern
and prevail. The construction of and decisions under the Plan and this Agreement are vested in the
Board, whose determinations shall be final, conclusive and binding upon the Participant.

          Section 11. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of New York, without giving effect to the choice of law
principles thereof.

          Section 12. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

          Section 13. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the legatees, distributees, and personal representatives of the Participant and the
successors of the Company.

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          Section 14. Entire Agreement. This Agreement and the Plan constitute the entire
agreement between the parties with respect to the subject matter hereof and thereof, merging any
and all prior agreements.

[SIGNATURES ON FOLLOWING PAGE]

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          IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement effective as
of the date first above written.

	 	 	 	 	 	 	 
	 	 	PLATINUM UNDERWRITERS HOLDINGS, LTD.
	 
	 	 	 	 	 	 
	 	 	By:
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Name:
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Title:
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT
	 
	 	 	 	 	 	 
	 	 	By:
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Print Name:	 	 
	 

	 	 	 	 	 	 

4EX-10.4:

 

Exhibit 10.4

PLATINUM UNDERWRITERS HOLDINGS, LTD.

AMENDED AND RESTATED EXECUTIVE INCENTIVE PLAN

Section 1. Purpose

     The purpose of this Platinum Underwriters Holdings, Ltd. Amended and Restated Executive
Incentive Plan is to attract, retain and motivate executive officers and other select senior
officers of the Company by providing them with an opportunity to earn long-term incentive
compensation based on the performance of the Company. The Plan is designed to promote the
interests of the Company and its shareholders by motivating superior performance by key personnel
to achieve the Company’s objectives.

Section 2. Definitions

     The following capitalized terms as used herein shall have the following meanings:

     (a) “Annual ROE” means the sum of the Quarterly ROE for each fiscal quarter in a Plan
Year.

     (b) “Average Annual ROE” means the sum of the Annual ROE for each completed Plan Year
in a Performance Cycle divided by the number of completed Plan Years in the Performance Cycle,
provided that two or more completed fiscal quarters may, in the discretion of the
Committee, constitute a completed Plan Year.

     (c) “Award” means a Share Unit Award granted to a Participant under the Plan.

     (d) “Base Salary” means, in the sole discretion of the Committee, (i) a Participant’s
annual base salary as in effect at the time determined by the Committee for purposes of an Award
hereunder, or (ii) the annual average of the base salary paid to a Participant during a Performance
Cycle, in each case, disregarding any deferrals, offsets or withholdings therefrom.

     (e) “Board” means the Board of Directors of Platinum Underwriters Holdings, Ltd., a
Bermuda company.

     (f) “Change in Control” shall have the meaning set forth in the Share Incentive Plan,
as in effect on the relevant date of determination.

     (g) “Committee” means the Compensation Committee of the Board, or such other committee
of the Board that the Board shall designate from time to time to administer the Plan.

     (h) “Common Shares” means the common shares of Platinum Underwriters Holdings, Ltd., a
Bermuda company, par value $0.01 per share.

     (i) “Company” means Platinum Underwriters Holdings, Ltd., a Bermuda company, and
its subsidiaries.

 

 

     (j) “Participant” means an employee of the Company who has been granted an Award under
the Plan.

     (k) “Performance Cycle” means any period consisting of three consecutive Plan Years in
which performance under the Plan shall be measured, or such other period as the Committee shall
determine in its sole discretion.

     (l) “Performance Percentage” means the percentage applicable to the degree of
achievement with respect to Average Annual ROE for a Performance Cycle by which the number of Share
Units subject to a Participant’s Award for such Performance Cycle shall be multiplied to determine
the payout to such Participant in respect of such Award, as determined by the Committee and set
forth in a schedule for a given Performance Cycle. The Performance Percentage for a degree of
achievement which falls between particular levels of Average Annual ROE set forth in such schedule
for a given Performance Cycle shall be determined by straight line interpolation.

     (m) “Plan”
means this Platinum Underwriters Holdings, Ltd. Amended and Restated Executive Incentive Plan,
as it may be amended and restated from time to time.

     (n) “Plan Year” means each calendar year in which the Plan shall be in effect.

     (o) “Quarterly ROE” means: (i) net income (loss) available to common shareholders as
shown on the Company’s consolidated financial statements for a fiscal quarter prepared in
accordance with accounting principles generally accepted in the United States less dividends
declared and payable to holders of the Company’s preferred shares issued and outstanding as of the
end of the fiscal quarter, divided by (ii) total shareholders’ equity as shown on such consolidated
financial statements less the aggregate par value and additional paid in capital attributable to
the Company’s preferred shares issued and outstanding as of the end of the fiscal quarter,
disregarding any unrealized capital gains and losses.

     (p) “Share Incentive Plan” means the Company’s 2006 Share Incentive Plan, as it may be
amended and restated from time to time, or any successor plan thereto.

     (q) “Share Ownership Guidelines” means the share ownership guidelines for executive
officers of the Company adopted by the Board, as may be amended by the Board from time to time in
its sole discretion.

     (r) “Share Units” means a non-voting unit of measurement based on the Common Shares,
which entitles a Participant to receive a payment in cash or Common Shares, as determined by the
Committee upon the payment of an Award.

     (s) “Share Unit Award” means an Award pursuant to the terms of the Plan and the Share
Incentive Plan entitling a Participant to a payment based on the Fair Market Value (as defined in
the Share Incentive Plan) of the Common Shares as of the date of payment of the Award.

     (t) “Threshold Average Annual ROE” means the threshold level for purposes of the Plan
of the Average Annual ROE of the Company for all Plan Years in a Performance Cycle, as

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established by the Committee in its sole discretion, below which no payment in respect of an Award shall be
made.

Section 3. Plan Administration

     (a) Committee Members. The Plan shall be administered by the Committee. The
Committee shall have such powers and authority as may be necessary or appropriate for the Committee
to carry out its functions as described in the Plan. No member of the Committee shall be liable
for any action or determination made in good faith by the Committee with respect to the Plan or any
Award hereunder.

     (b) Discretionary Authority. Subject to the express limitations of the Plan, the
Committee shall have authority in its sole discretion to determine the time or times at which
Awards may be granted, the recipients of Awards, the form of payment under an Award and all other
terms of an Award. The Committee shall also have discretionary authority to interpret the Plan, to
make all factual determinations under the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan. The Committee may prescribe, amend, and rescind
rules and regulations relating to the Plan. All interpretations, determinations, and actions by
the Committee shall be final, conclusive, and binding upon all parties.

     (c) Delegation of Authority. The Committee shall have the right, from time to time,
to delegate to one or more officers of the Company the authority of the Committee to grant and
determine the terms and conditions of Awards under the Plan, subject to such limitations as the
Committee shall determine. The Committee shall also be permitted to delegate, to any appropriate
officer or employee of the Company, responsibility for performing ministerial functions under the
Plan. In the event that the Committee’s authority is delegated to officers or employees in
accordance with the foregoing, all provisions of the Plan relating to the Committee shall be
interpreted in a manner consistent with the foregoing by treating any such reference as a reference
to such officer or employee for such purpose. Any action undertaken in accordance with the
Committee’s delegation of authority hereunder shall have the same force and effect as if such
action was undertaken directly by the Committee and shall be deemed for all purposes of the Plan to
have been taken by the Committee.

Section 4. Eligibility and Participation

     The executive officers and other senior officers of the Company who are designated by the
Committee in its sole discretion shall be eligible to participate in the Plan for any Performance
Cycle. Each such eligible employee who is designated by the Committee to receive an Award for a
Performance Cycle shall become a Participant in the Plan with respect to such Performance Cycle.
All Participants shall be designated by the Committee on a prospective basis only with respect to
Performance Cycles commencing on or after the date of participation.

Section 5. Grant of Awards

     (a) General. Within ninety (90) days following the commencement of a Performance
Cycle, the Committee may grant to a Participant under the Plan an Award specifying a number of
Share Units subject to the Award. The Committee shall establish on a prospective basis a schedule
of Performance Percentages to be applied to a Participant’s Award relative to the

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Company’s achievement of certain levels of Average Annual ROE, which shall include a Threshold Average Annual
ROE. The Committee shall also establish for each Performance Cycle the terms and conditions of
Awards under the Plan. The amount payable under an Award shall be determined by multiplying the
applicable Performance Percentage based on the degree
of achievement of Average Annual ROE for a given Performance Cycle by the number of Share
Units subject to a Participant’s Award in respect of such Performance Cycle. Any fractional Share
Units resulting from the foregoing calculation shall be rounded upwards to the nearest whole Share
Unit.

     (b) Performance Cycles. The Committee is authorized in its sole discretion to
determine the length of any Performance Cycle and to establish new Performance Cycles on an annual
basis. Performance Cycles may commence each Plan Year and may be overlapping. There shall be no
requirement of conformity among different Performance Cycles with respect to their duration, the
applicable Threshold Average Annual ROE, the Performance Percentages or the Participants.

     (c) Average Annual ROE. Awards under the Plan are based upon the Average Annual ROE
of the Company for a Performance Cycle. Average Annual ROE may be determined by the Committee
after excluding charges for restructurings, discontinued operations, extraordinary items, and other
unusual or non-recurring items, and the cumulative effects of accounting changes, or taking into
account such other factors as the Committee deems appropriate in its sole discretion to adjust the
measure of Average Annual ROE for any Plan Year during a Performance Cycle.

Section 6. Payment of Awards

     (a) Form and Timing of Payment. Payment of Awards under the Plan shall be made in
cash, Common Shares, or any combination thereof, as determined by the Committee in its sole
discretion taking into account the Company’s Share Ownership Guidelines. Subject to the
requirements of section 409A of the Internal Revenue Code, Awards shall be paid to Participants at
such time or times as the Committee shall determine in its sole discretion following the
Committee’s review and approval of the financial results for a completed Performance Cycle.

     (b) Tax Withholding. All payments under the Plan shall be subject to applicable
income and employment taxes and any other amounts that the Company is required by law to deduct and
withhold from such payments.

Section 7. Termination of Employment

     (a) General Rule. Subject to the provisions of Section 7(b) hereof, the obligation of
the Company to make payment of an Award to a Participant hereunder is conditioned upon the
continued employment of the Participant with the Company at the time of payment of an Award
hereunder. If the employment of a Participant with the Company is terminated for any reason, at
any time prior to the time of payment of an Award hereunder, the Award shall be forfeited and
automatically be cancelled without further action of the Company, unless otherwise provided by the
Committee.

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     (b) Exceptions. The Committee may, in its sole discretion, provide for the payment of
an Award in the event a Participant’s employment with the Company is terminated for any reason
including, but not limited to, a termination by the Company without cause or as a result of the
Participant’s death or disability. Such payment may be made on a pro-rated or accelerated basis as
determined by the Committee in its sole discretion. To the extent that a Participant is a
party to an employment agreement with the Company containing provisions for the treatment of
Awards under the Plan upon a termination of employment, such provisions of the employment agreement
shall govern and control for purposes of this Section 7.

Section 8. Change in Control

     In the event of a Change in Control of the Company, each Participant shall, subject to the
continued employment of the Participant with the Company at the time of the Change in Control,
receive a payment in respect of an outstanding Award on a pro rata basis, based on the period of
service by the Participant and the performance levels (Average Annual ROE vs. Threshold Average
Annual ROE) achieved by the Company for the Performance Cycle as of the end of the fiscal quarter
immediately preceding the date of the Change in Control, as determined by the Committee prior to
the Change in Control. Any payment made under this Section 8 shall be made as soon as practicable
following the occurrence of the Change in Control. To the extent that a Participant is a party to
an employment agreement with the Company containing provisions for the treatment of Awards under
the Plan upon a Change in Control, such provisions of the employment agreement shall govern and
control for purposes of this Section 8.

Section 9. General Provisions

     (a) Effective Date. The Plan shall be effective with respect to Plan Years and
Performance Cycles beginning on or after January 1, 2006.

     (b) Amendment and Termination. The Company may, from time to time, by action of the
Board, amend, suspend or terminate any or all of the provisions of the Plan, but no such amendment,
suspension or termination shall adversely affect the rights of any Participant with respect to
Awards then outstanding.

     (c) Coordination
with Section 162(m) Plan. All Awards granted under the Plan to
Participants who shall also be Participants in the Company’s “Section 162(m) Performance Incentive
Plan” for a Plan Year or Performance Cycle shall be subject to the terms and conditions of such
plan, and in the event of any conflict, the terms of the Section 162(m) Performance Incentive Plan
shall govern and control.

     (d) Section 409A Compliance. To the extent applicable, it is intended that the Plan
comply with the provisions of section 409A of the Internal Revenue Code, and the Plan shall be
construed and applied in a manner consistent with this intent. Any provision that would cause any
amount payable under the Plan to be includible in the gross income of a Participant under section
409A(a)(1) of the Internal Revenue Code shall have no force and effect. Notwithstanding any other
provision of the Plan to the contrary, the Board may amend the Plan and any outstanding Award
solely to comply with any new regulations or other guidance from

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the Internal Revenue Service under section 409A of the Internal Revenue Code without the consent of the Participant.

     (e) No Right to Employment. Nothing in the Plan shall be deemed to give any
Participant the right to remain employed by the Company or to limit, in any way, the right of the
Company to terminate, or to change the terms of, a Participant’s employment at any time.

     (f) No Presumption of Awards. Neither the adoption of the Plan by the Board nor any
of the terms of the Plan shall be deemed to create any rights of an employee to the grant of an
Award hereunder, nor to obligate the Company to grant any Awards under the Plan for any Plan Year.

     (g) Governing Law. The Plan shall be governed by and construed in accordance with the
laws of New York, without regard to choice-of-law rules thereof.

PLATINUM UNDERWRITERS HOLDINGS, LTD.

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