Document:

EX-10.1:

 

Exhibit 10.1

PLATINUM UNDERWRITERS HOLDINGS, LTD.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08 Bermuda

	 	 	 
	 

	 	February 26, 2006

Mr. Gregory E. A. Morrison

Platinum Underwriters Holdings, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08 Bermuda

Dear Gregory:

     I am writing this letter (this “Letter Agreement”) to amend and restate the letter agreement
between you and Platinum Underwriters Holdings, Ltd., an exempted company incorporated in Bermuda
(“Platinum”), dated June 20, 2003, as amended January 7, 2004 and October 27, 2005 (the “Prior
Agreement”), and to specify the terms and conditions of your employment with Platinum commencing on
the date hereof (the “Effective Date”) through May 14, 2006 (the “Termination Date”) and the terms
and conditions that will continue to apply to you thereafter.

1. Term of Employment.

     Your employment hereunder will commence on the Effective Date. Subject to termination as
provided in Section 10 hereof, your employment by the Company shall end on the Termination Date.
Such employment period through the Termination Date or the date of any earlier termination pursuant
to Section 10 hereof shall hereinafter be referred to as the “Term.”

2. Title and Duties.

     (a) During the Term, you will be employed by Platinum as Vice Chairman and you will have such
duties and responsibilities and power and authority as are assigned to you by the Chairman of the
Board.

     (b) You will continue to serve as a member of the board of directors of Platinum (the “Board”)
until the 2006 annual general meeting of shareholders unless the Board requests your resignation on
a date prior thereto. You agree that you will not seek

 

 

re-nomination or re-election to the Board at the 2006 annual general meeting of shareholders
or thereafter.

3. Salary.

     During the Term, Platinum will pay you a salary (the “Salary”) at an annual rate of
US$700,000, payable in cash in accordance with Platinum’s payroll practices as in effect from time
to time. You will not be entitled to any additional compensation or fees for your services as a
member of the Board or as an employee of Platinum.

4. Bonus, Executive Incentive Plan Awards and Options.

     (a) You acknowledge that you will not be eligible to receive any bonus in respect of the year
ended December 31, 2005 or any period following December 31, 2005.

     (b) Pursuant to the terms of the Company’s Executive Incentive Plan, all awards granted to you
thereunder are hereby forfeited, cancelled and of no further force and effect.

     (c) All options granted to you under the Company’s 2002 Share Incentive Plan that are unvested
as of the Termination Date or as of the date of any earlier termination of your employment for any
reason shall, in accordance with the terms of such options, be forfeited, cancelled and of no
further force and effect as of such date.

5. Share Ownership.

     Effective as of Effective Date, you shall no longer be subject to the share ownership
guidelines applicable to senior executives of Platinum.

6. Employee Benefits.

     During the Term, you and your eligible dependents will receive benefits substantially similar
to the employee benefit plans that are generally available to senior executives of Platinum,
subject to the terms and conditions of such plans. The Board reserves the right to amend or
terminate any employee benefit plan at any time, and to adopt any new plan.

7. Housing and Car Allowance.

     During the Term, you will continue to receive a housing allowance at a monthly rate of US
$25,000, and a car allowance at a monthly rate of US$900, prorated in each case for any partial
months of the Term. You acknowledge that you will not be entitled to receive any housing allowance
or car allowance thereafter.

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8. Perquisites.

    During the Term, Platinum will reimburse you for reasonable dues and fees for a golf and a
health club membership.

9. Business Expenses.

     During the Term, Platinum shall reimburse you for all reasonable expenses and disbursements in
carrying out your duties and responsibilities under this Letter Agreement in accordance with
Platinum’s policy for senior executives as in effect from time to time.

10. Termination of Employment/Termination Payments.

     (a) Termination Payment. Promptly following the effectiveness of the release of
claims to be executed by you pursuant to Section 11 hereof, you will be paid US$800,000 in cash,
subject to any applicable withholding as required by law (the “Termination Payment”), provided that
you are employed by Platinum through the Termination Date. You hereby acknowledge that you will
not be entitled to the “2006 Payment” as defined in the Prior Agreement.

     (b) Termination for Good Reason or Without Cause. If you terminate your employment
during the Term for “Good Reason” (as defined below) or if your employment is terminated during the
Term by Platinum without “Cause” (as defined below), you will receive the Termination Payment
promptly following the effectiveness of the release of claims to be executed by you pursuant to
Section 11 hereof. You will also be paid any earned but unpaid Salary or other amounts (including
reimbursement of expenses and any vested amounts or benefits under Platinum’s employee benefit
plans or programs) accrued or owing through the effective date of such termination.

     (c) Termination Other than for Good Reason. If you terminate your employment during
the Term other than for Good Reason, you will not receive the Termination Payment and you will
receive no further payments, compensation or benefits under this Letter Agreement, except you will
be eligible to receive amounts (including reimbursable expenses and any vested amounts or benefits
under Platinum’s employee benefit plans or programs) accrued or owing prior to the effective date
of such termination.

     (d) Termination for Cause. If your employment is terminated by Platinum during the
Term for Cause, you will not receive the Termination Payment and you will receive no further
payments, compensation or benefits under this Letter Agreement, except you will be eligible to
receive amounts (including reimbursable expenses and any vested amounts or benefits under
Platinum’s employee benefit plans or programs) accrued or owing prior to the effective date of such
termination.

     (e) Death. Upon the termination of your employment during the Term on account of your
death, you or your beneficiaries will receive no further payments under this Letter Agreement other
than (i) any unpaid Salary through the effective date of such

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termination, (ii) all other unpaid amounts (including reimbursable expenses and any vested
amounts or benefits under Platinum’s employee benefit plans or programs) accrued or owing prior to
the effective date of such termination, and (iii) the Termination Payment.

     (f) Definitions.

	 	(i)	 	Cause. For purposes of this Letter Agreement,
“Cause” means (i) your willful and continued failure to substantially perform
your duties hereunder; (ii) your conviction of, or plea of guilty or nolo
contendere to, a felony or other crime involving moral turpitude; or (iii)
your engagement in any malfeasance or fraud or dishonesty of a substantial
nature in connection with your position with Platinum or its subsidiaries, or
other willful act that materially damages the reputation of Platinum or its
subsidiaries; provided, however, no such act, omission or
event shall be treated as “Cause” under this Letter Agreement unless you have
been provided a detailed, written statement of the basis for Platinum’s belief
that such act, omission or event constitutes “Cause” and have had at least a
thirty (30) day period to take corrective action. For purposes of this
Section, no act or failure to act will be considered “willful” unless it is
done, or omitted to be done, in bad faith and without reasonable belief that
the action was in the best interests of Platinum.
	 
	 	(ii)	 	Good Reason. For purposes of this Letter Agreement,
“Good Reason” means (i) Platinum reduces your Salary without your express
written consent; (ii) Platinum requires you to report to anyone other than the
Chairman or the Board; (iii) Platinum requires you to be principally based
other than in Platinum’s offices in Bermuda; and (iv) Platinum breaches any
other material provision of this Letter Agreement; provided,
however, that if you voluntarily consent to any reduction or change
described above in lieu of exercising your right to resign for Good Reason and
deliver such consent to Platinum in writing, then such reduction or change
shall not constitute “Good Reason” hereunder, but you shall have the right to
resign for Good Reason under this Letter Agreement as a result of any
subsequent reduction or change described above.

11. Release.

     You agree to execute a general release of claims against Platinum and its affiliates
substantially in the form of Exhibit A hereto on the Termination Date or the date of any earlier
termination pursuant to Section 10(b) hereof. You acknowledge that your failure to execute such
release will result in the forfeiture of your right to any further payments or benefits under this
Letter Agreement including, without limitation, the Termination Payment.

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12. Covenants.

     In exchange for the remuneration outlined above, in addition to providing service to Platinum
as set forth in this Letter Agreement, you agree to the following covenants:

     (a) Confidentiality. During the period of your employment and following any
termination of your employment for any reason, you will keep confidential any trade secrets and
confidential or proprietary information of Platinum (and its subsidiaries and affiliates) which are
now known to you or which hereafter may become known to you as a result of your employment or
association with Platinum and will not at any time directly or indirectly disclose any such
information to any person, firm or corporation, or use the same in any way other than in connection
with the business of Platinum (or its subsidiaries or affiliates) during, and at all times after,
the termination of your employment. For purposes of this Letter Agreement, “trade secrets and
confidential or proprietary information” means information unique to Platinum (or its subsidiaries
or affiliates) which has a significant business purpose and is not known or generally available
from sources outside Platinum (or its subsidiaries or affiliates) or typical of industry practice,
but shall not include any of such information (i) that becomes a matter of public record or is
published in a newspaper, magazine or other periodical available to the general public, other than
as a result of any act or omission of you or (ii) that is required to be disclosed by any law,
regulation or order of any court or regulatory commission, department or agency, provided that you
give prompt notice of such requirement to Platinum (or its subsidiaries or affiliates), as
appropriate, to enable Platinum (or its subsidiaries or affiliates), as appropriate, to seek an
appropriate protective order or confidential treatment.

     (b) Non-Competition. You further covenant that during the period of your employment
with Platinum and during the twelve month period following termination of your employment for any
reason, you will not, without the express written approval of Platinum, anywhere where Platinum (or
its subsidiaries of affiliates) has engaged in business during the term of your employment with
Platinum, for yourself or on behalf of any other person, partnership, company or corporation,
directly or indirectly, acquire any financial or beneficial interest, be employed by, or own,
manage, operate or control any entity which is primarily engaged in the reinsurance business;
provided, however, that, subject to the last sentence of this Section 12(b), (i)
you may have an interest in up to 2% of the capital stock of a corporation whose capital stock is
traded publicly; (ii) for the period beginning on March 6, 2006 and ending on the Termination Date,
you may provide the following specified services on a
consulting basis only directly to a company or companies approved by Platinum in
writing prior to your providing any such services (each, an
“Approved Company”): (A) advice regarding
an Approved Company’s compensation policies and the
administration thereof, (B) advice regarding an Approved Company’s
presentations to rating agencies, and (C) advice
regarding an Approved Company’s business plans, it
being understood that the services specified in clauses (A) through (C) above may include visits to
an Approved Company’s offices; and (iii) commencing on the day after the Termination Date, you may serve as
Chief Executive Officer or Executive Chairman of an Approved Company. The foregoing proviso shall not limit
the application of Sections 12(a) and 12(c) hereof, which shall continue to apply in accordance
with their terms. Clauses (ii) and (iii) above shall be revoked and have no force and effect in
the

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event that you terminate your employment during the Term other than for Good Reason or your
employment is terminated by Platinum during the Term for Cause.

     (c) Non-Solicitation. You further covenant that during the period of your employment
with Platinum and during the twelve month period following termination of your employment for any
reason, you will not, directly or indirectly, hire, or cause to be hired by an employer with whom
you may ultimately become associated, including without limitation
an Approved Company, any senior executive
of Platinum (or its subsidiaries or affiliates) on the Effective Date or at the time of termination
of your employment with Platinum (defined for such purposes to include the Chief Executive Officer
and executives that report directly to the Chief Executive Officer or that report directly to such
executives that report directly to the Chief Executive Officer).

     (d) Enforcement.

	 	(i)	 	You acknowledge that if you breach any provision of this
Section 12, Platinum (or its subsidiaries or affiliates) will suffer
irreparable injury. It is therefore agreed that Platinum (or its subsidiaries
or affiliates) shall have the right to enjoin any such breach, without posting
any bond, if permitted by a court of the applicable jurisdiction. You hereby
waive the adequacy of a remedy at law as a defense to such relief. The
existence of this right to injunctive or other equitable relief shall not
limit any other rights or remedies which Platinum (or its subsidiaries or
affiliates) may have at law or in equity including, without limitation, the
right to monetary, compensatory and punitive damages. You acknowledge and
agree that the provisions of this Section 12 are reasonable and necessary for
the successful operation of Platinum. In the event an arbitrator or a court
of competent jurisdiction determines that you have breached your obligations
in any material respect under this Section 12, Platinum, in addition to
pursuing all available remedies under this Letter Agreement, at law or
otherwise, and without limiting its right to pursue the same, shall cease all
payments to you under this Letter Agreement. If any provision of this Section
12 is determined by a court of competent jurisdiction or an arbitrator to be
not enforceable in the manner set forth in this Letter Agreement, you and
Platinum agree that it is the intention of the parties that such provision
should be enforceable to the maximum extent possible under applicable law. If
any provisions of this Section 12 are held to be invalid or unenforceable,
such invalidation or unenforceability shall not affect the validity or
enforceability of any other provision of this Letter Agreement (or any portion
thereof).
	 
	 	(ii)	 	You (A) hereby irrevocably submit to the exclusive
jurisdiction of the state and federal courts sitting in the State of New York,
City and County of New York, for the purpose of Section 12(d)(i)

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	 	 	 	hereof, and (B) hereby waive to the extent not prohibited by applicable
law, and agree not to assert, by way of motion, as a defense or otherwise,
in any such action, any claim that you are not subject personally to the
jurisdiction of the above-named courts, that such courts are an
inconvenient forum, that your property is exempt or immune from attachment
or execution, that any such proceeding brought in one of such courts is
improper, or that this Letter Agreement or the subject matter hereof or
thereof may not be enforced in or by such court. You hereby consent to
service of process in any such proceeding in any manner permitted by the
laws of the State of New York, and agree that service of process by
registered or certified mail, return receipt requested, is reasonably
calculated to give actual notice.

13. Miscellaneous Provisions.

     (a) This Letter Agreement may not be amended or terminated without the prior written consent
of you and Platinum.

     (b) This Letter Agreement may be executed in any number of counterparts which together will
constitute but one agreement.

     (c) This Letter Agreement will be binding on and inure to the benefit of our respective
successors and, in your case, your heirs and other legal representatives. Other than as provided
herein, the rights and obligations described in this Letter Agreement may not be assigned by either
party without the prior written consent of the other party.

     (d) Subject to Section 12(d) hereof, all disputes arising under or related to this Letter
Agreement will be settled by arbitration under the Commercial Arbitration Rules of the American
Arbitration Association then in effect as the sole and exclusive remedy of either party. Such
arbitration shall be held in New York City. Any judgment on the award rendered by such arbitration
may be entered in the state and federal courts sitting in the State of New York, City and County of
New York pursuant to Section 12(d)(ii) hereof or in any other court having jurisdiction over such
matters. Each party’s costs and expenses of such arbitration, including reasonable attorney fees
and expenses, shall be borne by such party, unless you are, in whole, and not in part, the
prevailing party in the award entered in such arbitration, in which case, all such costs and
expenses shall be borne by Platinum.

     (e) All notices under this Letter Agreement will be in writing and will be deemed effective
when delivered in person, or five (5) days after deposit thereof in the mails, postage prepaid, for
delivery as registered or certified mail, addressed to the respective party at the address set
forth below or to such other address as may hereafter be designated by like notice. Unless
otherwise notified as set forth above, notice will be sent to each party as follows:

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     If to you, to:

The address maintained in Platinum’s records.

     If to Platinum, to:

Platinum Underwriters Holdings, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08 Bermuda

	 	 	 	 	 
	 

	 	Attention:
	 	Michael E. Lombardozzi, Esq.
	 

	 	 	 	Executive Vice President,
	 

	 	 	 	General Counsel and Secretary

In lieu of personal notice or notice by deposit in the mail, a party may give notice by confirmed
telegram, telex or fax, which will be effective upon receipt.

     (f) This Letter Agreement will be governed by and construed and enforced in accordance with
the laws of the State of New York without reference to rules relating to conflict of laws.

     (g) This Letter Agreement supersedes any inconsistent provisions of any plan or arrangement
that would otherwise be applicable to you to the extent such provisions would limit any rights
granted to you hereunder or expand any restrictions imposed on you hereby.

     (h) By executing this Letter Agreement below, you acknowledge that this Letter Agreement, as
an amendment and restatement of the Prior Agreement, supersedes the Prior Agreement and that you
waive all rights under the Prior Agreement, in each case as of the Effective Date.

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     This Letter Agreement is intended to be a binding obligation upon Platinum and yourself. If
this Letter Agreement correctly reflects our understanding, please sign and return one copy for
Platinum’s records.

	 	 	 	 	 	 	 
	 	 	Platinum Underwriters Holdings, Ltd.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven H. Newman
 

	 	 
	 

	 	 	 	Name: Steven H. Newman	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 

The above Letter Agreement correctly reflects our understanding, and I hereby confirm my agreement
to the same.

	 	 	 
	/s/ Gregory E.A. Morrison
 

	 	 
	Gregory E.A. Morrison
	 	 
	 
	 	 
	Dated as of February 26, 2006
	 	 

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EXHIBIT A

FULL AND COMPLETE RELEASE

     I, Gregory E.A. Morrison, in consideration of the rights and benefits provided pursuant to the
letter agreement dated February 26, 2006, which specifies the terms and conditions of my employment
with Platinum Underwriters Holdings, Ltd. (the “Letter Agreement”), for myself and my heirs,
executors, administrators and assigns, do hereby knowingly and voluntarily release and forever
discharge Platinum Underwriters Holdings, Ltd., its subsidiaries and affiliates (collectively, the
“Companies”) and their respective current and former directors, officers and employees from, and
covenant not to sue or proceed against any of the foregoing on the basis of, any and all claims,
actions and causes of action upon or by reason of any matter arising out of my employment by the
Companies and the cessation of said employment, and including, but not limited to, any alleged
violation of any applicable law prohibiting employment discrimination based on age, sex, race,
color, national origin, religion, disability, veteran or marital status, sexual orientation, or any
other protected trait or characteristic, or retaliation for engaging in any protected activity,
including, without limitation, the Employment Act 2000 of Bermuda, Human Rights Act 1981 of
Bermuda, whether KNOWN OR UNKNOWN, fixed or contingent, which I ever had, now have, or may have, or
which I, my heirs, executors, administrators or assigns hereafter can, shall or may have, from the
beginning of time through the date on which I sign this Full and Complete Release (this “Release”),
including without limitation those arising out of or related to my employment or separation from
employment with the Companies (collectively the “Released Claims”).

     I warrant and represent that I have made no sale, assignment, or other transfer, or attempted
sale, assignment, or other transfer, of any of the Released Claims. I fully understand and agree
that:

	1.	 	This Release is in exchange for the rights and benefits provided pursuant to the Letter
Agreement to which I would otherwise not be entitled;
	 
	2.	 	No rights or claims are released or waived that may arise after the date this Release is
signed by me;
	 
	3.	 	I am hereby advised to consult with an attorney before signing this Release;
	 
	4.	 	I have 21 days from my receipt of this Release within which to consider whether or not to
sign it;
	 
	5.	 	I have 7 days following my signature of this Release to revoke the Release; and
	 
	6.	 	This Release shall not become effective or enforceable until the revocation period of 7 days
has expired.

     If I choose to revoke this Release, I must do so by notifying the Companies in writing. This
written notice of revocation must be faxed and mailed by first class mail within the 7 day
revocation period and addressed as follows:

A-1

 

Platinum Underwriters Holdings, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM 08

Bermuda

Attention: General Counsel

Fax: 441-295-4605

With a copy to:

Dewey Ballantine LLP

1301 Avenue of the Americas

New York, New York 10019

Attention: Paul J. Wessel, Esq.

Fax: 212-259-6333

     This Release is the complete understanding between me and the Companies in respect of the
subject matter of this Release and supersedes all prior agreements relating to the same subject
matter. I have not relied upon any representations, promises or agreements of any kind except
those set forth herein in signing this Release.

     In the event that any provision of this Release should be held to be invalid or unenforceable,
each and all of the other provisions of this Release shall remain in full force and effect. If any
provision of this Release is found to be invalid or unenforceable, such provision shall be modified
as necessary to permit this Release to be upheld and enforced to the maximum extent permitted by
law. This Release is to be governed by and construed and enforced in accordance with the laws of
the State of New York without reference to rules relating to conflict of laws. This Release inures
to the benefit of the Companies and their successors and assigns. I have carefully read this
Release, fully understand each of its terms and conditions, and intend to abide by this Release in
every respect. As such, I knowingly and voluntarily sign this Release.

 

	 	 	 
	 

Gregory E.A. Morrison

	 	 
	 
	 	 
	Dated:                                         , 2006
	 	 

A-2EX-10.2:

 

Exhibit 10.2

PLATINUM UNDERWRITERS BERMUDA, LTD.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08 Bermuda

  February 26, 2006

Mr. Robert S. Porter

Platinum Re (UK) Limited

Fitzwilliam House

10 St. Mary Axe

London, EC3A 8EN

United Kingdom

Dear Robert:

          I am writing this letter (this “Letter Agreement”) to confirm the terms and conditions of your
employment with Platinum Underwriters Bermuda, Ltd. (“Platinum Bermuda”), a wholly owned subsidiary
of Platinum Underwriters Holdings, Ltd. (“Platinum Holdings”).

     1. Term of Employment.

          Your employment hereunder will commence on March 1, 2006 or such later date that you shall
have received the approval of the Bermuda Department of Immigration (the “Effective Date”) and,
subject to termination as provided in Section 11, shall end on the third anniversary of the
Effective Date; provided that, on the third anniversary and each anniversary thereafter, the term
of your employment shall automatically be extended by an additional year unless Platinum Bermuda or
you give the other party written notice, at least 90 days prior to such anniversary, that Platinum
Bermuda has determined or you have determined that the term shall not be so extended. Such
employment period, as extended, shall hereinafter be referred to as the “Term.”

     2. Title and Duties.

          During the Term, you will serve as Chief Executive Officer of Platinum Bermuda. You will have
such duties and responsibilities and power and authority as those normally associated with such
position, plus any additional duties and responsibilities or power and authority assigned to you by
the Chairman of Platinum Bermuda.

 

 

     3. Base Salary.

          During the Term, Platinum Bermuda will pay you a minimum base salary (“Base Salary”) at an
annual rate of US$425,000, payable in cash in accordance with Platinum Bermuda’s payroll practices
as in effect from time to time. Your Base Salary shall be reviewed annually by the Chairman of
Platinum Bermuda.

     4. Bonus.

          During each fiscal year of the Term, you will be eligible for an annual performance bonus
(“Annual Bonus”) pursuant to the terms of Platinum Holdings’ Amended and Restated Annual Incentive
Plan. Your Annual Bonus will have an incentive target equal to 100% of Base Salary (the “Target
Bonus”) with the range of bonus payout to be from 0% to 200% of Base Salary, depending upon the
achievement of performance objectives established under the Amended and Restated Annual Incentive
Plan. For purposes of your Annual Bonus for fiscal year 2006, your Base Salary shall be
US$425,000. Your Annual Bonus will be paid in accordance with the terms of the Amended and
Restated Annual Incentive Plan following the end of the applicable fiscal year, subject to such
terms and conditions as the Compensation Committee of the Board of
Directors of Platinum Holdings (the “Committee”)
shall require and in such form as determined by the Committee. A portion of your bonus will be
paid in the form of restricted share units (the “Bonus
RSUs”), the terms of which will be set forth in an Award
Agreement for Restricted Share Units between you and Platinum Holdings.

     5. Equity Awards.

          (a) Grant of Restricted Common Shares. On February 28, 2006, you will be granted by
Platinum Holdings under the terms of Platinum Holdings’ 2002 Share Incentive Plan (the “2002 Plan”)
an award of restricted shares (the “Restricted Shares”), the terms of which will be provided for in a
Restricted Share Award Agreement between you and Platinum Holdings.

          (b) Grant of Options. On February 28, 2006, you will be granted by Platinum Holdings
under the terms of the 2002 Plan an award of options (the
“Options”) to purchase common shares, par value US$0.01 per
share, of Platinum Holdings (the “Common Shares”) with an exercise
price per Common Share equal to the “Fair Market Value” (as defined in the 2002 Plan) of a Common
Share on the date of grant. The terms of the Options will be provided for in a Nonqualified Share
Option Agreement between you and Platinum Holdings; provided, however, that, notwithstanding any provision in the
Nonqualified Share Option Agreement to the contrary, the Options shall become fully and immediately
vested and exercisable upon the termination of your employment for Good Reason or without Cause.

 

 

          (c) You shall not be entitled to receive any additional awards of Common Shares, restricted
Common Shares, options or other equity securities of Platinum Holdings until March 2009.

     6. Executive Incentive Plan Awards.

          During the Term, you will be a participant in Platinum Holdings’ Amended and Restated
Executive Incentive Plan. During each year of the Term, it is expected that you will be granted a
target annual award opportunity of 75% of your Base Salary, payable if certain performance
objectives are achieved by Platinum Holdings over a multi-year period (each, an “EIP Award”). The
actual amount, the terms and conditions and the form of payment of any EIP Award will be determined
by the Committee in its sole discretion, in accordance with the terms of the Amended and Restated
Executive Incentive Plan.

     7. Share Ownership Guidelines.

          You will be required to accumulate 30,000 Common Shares in accordance with the Share Ownership
Guidelines adopted by the Board of Directors of Platinum Holdings (the “Guidelines”) before selling
any Common Shares received under any of Platinum Holdings’ compensation plans, subject to certain
exceptions set forth in the Guidelines.

     8. Employee Benefits.

          During the Term, you will be eligible to participate in the employee benefit plans and
arrangements that are generally available to senior executives of Platinum Bermuda, subject to the
terms and conditions of such plans and arrangements. The Board of Directors of Platinum Bermuda
reserves the right to amend or terminate any employee benefit plan or arrangement at any time, and
to adopt any new plan or arrangement.

     9. Platinum Expatriate Benefits.

          Platinum Bermuda will pay you US$50,000 for the costs and expenses reasonably incurred by you
(including duty taxes) in connection with your family’s relocation to Bermuda. Platinum Bermuda
will provide you with a housing and living allowance of US$22,500 per month and a car allowance of
US$700 per month during the Term. You will be responsible for any tax liability associated with
these payments.

     10. Business Expenses.

          During the Term, Platinum Bermuda will reimburse you for all reasonable expenses incurred by
you in carrying out your duties and responsibilities under this Letter Agreement in accordance with
its policies for senior executives as in effect from time to time.

     11. Termination of Employment.

          (a) Termination for Good Reason or Without Cause. If you terminate your employment
during the Term for Good Reason or if your employment is terminated during the Term by Platinum
Bermuda without Cause, (i) you will receive, immediately upon the

 

 

effectiveness of such termination, a lump sum cash payment equal to the sum of (A) one year’s
Base Salary and Target Bonus and (B) any earned but unpaid Base Salary and other amounts (including
reimbursable expenses and any vested amounts or benefits under Platinum Bermuda’s employee benefit
plans or arrangements) accrued or owing through the date of effectiveness of such termination under
the terms of the applicable arrangement; and (ii) your Bonus RSUs, Restricted Shares, Options and
EIP Awards will vest in accordance with their respective terms except as otherwise set forth
herein. The foregoing payment and vesting will be conditioned upon you executing and honoring a
standard waiver and release of claims in favor of Platinum Bermuda in a form determined by Platinum
Bermuda.

          (b) Termination Other than for Good Reason; Termination for Cause. If you terminate
your employment during the Term other than for Good Reason or if your employment is terminated by
Platinum Bermuda during the Term for Cause, all Bonus RSUs, Restricted Shares, Options and EIP
Awards will be forfeited in accordance with their respective terms and you will receive no further
payments, compensation or benefits under this Letter Agreement, except you will receive, upon the
effectiveness of such termination, any earned but unpaid Base Salary and other amounts (including
reimbursable expenses and any vested amounts or benefits under Platinum Bermuda’s employee benefit
plans or arrangements) accrued or owing through the date of effectiveness of such termination under
the terms of the applicable arrangement.

          (c) Death or Disability. Upon the termination of your employment during the Term on
account of your death or “Disability” (as defined below), (i) you or your beneficiaries will
receive (A) a pro-rata portion through the date of effectiveness of such termination of your Target
Bonus for the year of termination and (B) any earned but unpaid Base Salary and other amounts
(including reimbursable expenses and any vested amounts or benefits under Platinum Bermuda’s
employee benefit plans or arrangements) accrued or owing through the date of effectiveness of such
termination under the terms of the applicable arrangement; and (ii) your Bonus RSUs, Restricted
Shares, Options and EIP Awards will vest in accordance with their respective terms except as
otherwise set forth herein.

     (d) Definitions.

          (i) Cause. For purposes of this Letter Agreement, “Cause” means (A) your
willful and continued failure to substantially perform your duties hereunder; (B) your
conviction of, or plea of guilty or nolo contendere to, a felony or other crime involving
moral turpitude; (C) your engagement in any malfeasance or fraud or dishonesty of a
substantial nature in connection with your position with Platinum Bermuda, or other willful
act that materially damages the reputation of Platinum Bermuda; (D) your breach of any
restrictive covenants in Section 12 hereof or in any option or other award agreement between
you and Platinum Holdings; or (E) prior to the accumulation of 30,000 Common Shares by you,
the sale, transfer or hypothecation by you during the Term of Common Shares in violation of
the Guidelines.

          (ii) Good Reason. For purposes of this Letter Agreement, “Good Reason” means,
without your express written consent, (A) Platinum Bermuda reduces your Base Salary or your
Target Bonus; (B) Platinum Bermuda reduces the scope of your duties, responsibilities or
authority; (C) you are required to report to anyone other than the

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Chairman of Platinum Bermuda; (D) you are required to be principally based other than
in Platinum Bermuda’s offices in Bermuda; or (E) Platinum Bermuda breaches any other
material provision of this Letter Agreement; provided, however, that if you
voluntarily consent to any reduction or change described above in lieu of exercising your
right to resign for Good Reason and deliver such consent to Platinum Bermuda in writing,
then such reduction or change shall not constitute “Good Reason” hereunder, but you shall
have the right to resign for Good Reason under this Letter Agreement as a result of any
subsequent reduction or change described above.

          (iii) Disability. For purposes of this Letter Agreement, “Disability” means a
termination of your employment by Platinum Bermuda, if you have been rendered incapable of
performing your duties by reason of any medically determined physical or mental impairment
that can be expected to result in death or that can be expected to last for a period of
either (A) six or more consecutive months from the first date of your absence due to the
disability or (B) nine or more months during any twelve-month period.

12. Covenants.

          In exchange for the remuneration outlined above, in addition to providing services to Platinum
Bermuda as set forth in this Letter Agreement, you agree to the following covenants, which you
agree are intended to survive the Term and any termination or expiration of this Letter Agreement:

          (a) Confidentiality. During the period of your employment and for all periods
following any termination of your employment for any reason, you will keep confidential any trade
secrets and confidential or proprietary information of Platinum Bermuda or Platinum Re (UK) Limited
(“Platinum UK”) which are now known to you or which hereafter may become known to you as a result
of your employment or association with Platinum Bermuda or Platinum UK, and will not at any time,
directly or indirectly, disclose any such information to any person, firm or corporation, or use
the same in any way other than in connection with the business of Platinum Bermuda during, and at
all times after, the termination of your employment. For purposes of this Letter Agreement, “trade
secrets and confidential or proprietary information” means information unique to Platinum Bermuda
or Platinum UK which has a significant business purpose and is not known or generally available
from sources outside Platinum Bermuda or Platinum UK or typical of industry practice, but shall not
include any of the foregoing (i) information that becomes a matter of public record or is published
in a newspaper, magazine or other periodical available to the general public, other than as a
result of any act or omission by you or (ii) information that is required to be disclosed by any
law, regulation or order of any court or regulatory commission, department or agency, provided that
you give prompt notice of such requirement to Platinum Bermuda or Platinum UK to enable Platinum
Bermuda or Platinum UK to seek an appropriate protective order or confidential treatment.

          (b) Non-Solicitation. You further covenant that during the term of your employment
with Platinum Bermuda and during the fifteen-month period following termination of such employment
for any reason, you will not, without the prior written consent of Platinum Bermuda or Platinum UK,
directly or indirectly, hire, or cause to be hired by an enterprise with which you may ultimately
become associated, any senior executive of Platinum Bermuda or

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Platinum UK at the time of termination of your employment with Platinum Bermuda (defined for
such purposes to include executives to whom you report, that report directly to you or that report
directly to such executives that report directly to you).

          (c) Enforcement. You acknowledge that if you breach any provision of this Section 12,
Platinum Bermuda will suffer irreparable injury. It is therefore agreed that Platinum Bermuda
shall have the right to enjoin any such breach, without posting any bond, if permitted by a court
of the applicable jurisdiction. You hereby waive the adequacy of a remedy at law as a defense to
such relief. The existence of this right to injunctive, or other equitable relief, shall not limit
any other rights or remedies which Platinum Bermuda may have at law or in equity including, without
limitation, the right to monetary, compensatory and punitive damages. You acknowledge and agree
that the provisions of this Section 12 are reasonable and necessary for the successful operation of
Platinum Bermuda. In the event an arbitrator or a court of competent jurisdiction determines that
you have breached your obligations in any material respect under this Section 12, Platinum Bermuda,
in addition to pursuing all available remedies under this Letter Agreement, at law or otherwise,
and without limiting its right to pursue the same shall cease all payments to you under this Letter
Agreement. If any provision of this Section 12 is determined by a court of competent jurisdiction
to be not enforceable in the manner set forth in this Letter Agreement, you and Platinum Bermuda
agree that it is the intention of the parties that such provision should be enforceable to the
maximum extent possible under applicable law. If any provisions of this Section 12 are held to be
invalid or unenforceable, such invalidation or unenforceability shall not affect the validity or
enforceability of any other provision of this Letter Agreement (or any portion thereof).

     13. Miscellaneous Provisions.

          (a) All compensation paid to you under this Letter Agreement shall be subject to all
applicable income tax, employment tax and all other federal, state and local tax withholdings and
deductions.

          (b) This Letter Agreement constitutes the entire agreement between you and Platinum Bermuda
with respect to the subject matter hereof and supercedes any and all prior agreements or
understandings between you and Platinum Bermuda or any of its subsidiaries or affiliates with
respect to the subject matter hereof, whether written or oral. This Letter Agreement may not be
amended or terminated without the prior written consent of you and Platinum Bermuda.

          (c) This Letter Agreement may be executed in any number of counterparts which together will
constitute but one agreement.

          (d) This Letter Agreement will be binding on and inure to the benefit of Platinum Bermuda’s
respective successors and, in your case, your heirs and other legal representatives. Other than as
provided herein, the rights and obligations described in this Letter Agreement may not be assigned
by either party without the prior written consent of the other party.

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          (e) Subject to Section 12(c) of this Letter Agreement, all disputes arising under or related
to this Letter Agreement will be settled by arbitration under the Commercial Arbitration Rules of
the American Arbitration Association then in effect as the sole and exclusive remedy of either
party. Such arbitration shall be held in New York City. Any judgment on the award rendered by
such arbitration may be entered in any court having jurisdiction over such matters. Each party’s
costs and expenses of such arbitration, including reasonable attorney fees and expenses, shall be
borne by such party, unless you are, in whole, and not in part, the prevailing party in the award
entered in such arbitration, in which case, all such costs and expenses shall be borne by Platinum
Bermuda.

          (f) All notices under this Letter Agreement will be in writing and will be deemed effective
when delivered in person, or five (5) days after deposit thereof in the mails, postage prepaid, for
delivery as registered or certified mail, addressed to the respective party at the address set
forth below or to such other address as may hereafter be designated by like notice. Unless
otherwise notified as set forth above, notice will be sent to each party as follows:

          Robert S. Porter, to:

               The address maintained in Platinum Bermuda’s records

          Platinum Bermuda, to:

Platinum Underwriters Bermuda, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08, Bermuda

Attention: Chairman

In lieu of personal notice or notice by deposit in the mail, a party may give notice by confirmed
fax or e-mail, which will be effective upon receipt.

          (g) This Letter Agreement will be governed by and construed and enforced in accordance with
the laws of the State of New York without reference to rules relating to conflict of laws.

          (h) This Letter Agreement supercedes any inconsistent provisions of any plan or arrangement
that would otherwise be applicable to you to the extent such provisions would limit any rights
granted to you hereunder or expand any restrictions imposed on you hereby.

          If this Letter Agreement correctly reflects your understanding, please sign and return one
copy to me for Platinum Bermuda’s records.

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	 	Platinum Underwriters Bermuda, Ltd.

 	 
	 	By:  	/s/
Michael D. Price	 
	 	 	Michael D. Price 	 
	 	 	Chairman 	 

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The above Letter Agreement correctly reflects our understanding, and I hereby confirm my agreement
to the same.

	 	 	 
	 
	

/s/ Robert S. Porter

 

Robert S. Porter

	 	 
	 
	 	 
	Dated
as of February 26, 2006
	 	 

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