Document:

10.2          Fee  Agreement  for  Professional  Services  with  Richard O. Weed

                         [Letterhead of Weed & Co. LLP]

                                 October 9, 2004

Mr.  Robert  Russell
Chief  Executive  Officer
B2Digital,  Inc.
9171  Wilshire  Blvd.,  Suite  B
Beverly  Hills,  CA  90210

Telephone:  310.281.2571
Facsimile:  310.281.0042
email:  rrussell@tellapro.com

     RE:  Fee  Agreement  for  Professional  Services

Dear  Mr.  Russell:

The purpose of this letter is to memorialize a fee agreement for legal services.
This  fee agreement is between B2Digital, Inc., a Delaware corporation ("BTWO"),
and  Weed  &  Co.  LLP, a California limited liability partnership ("Weed LLP").

Weed  LLP  shall  render  the  following  legal  services described in Exhibit A
attached  hereto  and  BTWO may engage Weed LLP on any new matters referenced in
Exhibit  A  in  exchange  for payment of fees determined in accordance with this
agreement.  Weed  LLP  makes  no promises or guarantees regarding the outcome of
matters  upon  which  Weed  LLP  is  engaged  to  represent  BTWO.

To  protect  both of the parties and to comply with professional obligations, we
have  already  discussed with each other and resolved any potential conflicts of
interest  with  present  or  former  clients.  The  services  that Weed LLP will
provide  shall  be  in  accordance  with the following terms and conditions.  We
advise  you  to  seek  the  advice  of  independent  counsel before signing this
agreement.

Professional  Fees

Fees are based upon the reasonable value of Weed LLP's services as determined in
accordance  with  the  American  Bar  Association  Model  Code  of  Professional
Responsibility  and  the California & Texas Rules of Professional Conduct.  Fees
are  based  on  the  rates  charged  by  Weed  LLP.

Weed  LLP's rate is $300 per hour. It is anticipated that BTWO and Weed LLP will
agree  on  a  fixed  fee  for special projects from time to time.  The fixed fee
arrangements  for special projects will be agreed to in writing. Weed LLP's fees
will  be  paid  in  cash  or  as  follows:

Initial  Retainer

To  commence  the  relationship and to insure the availability of Weed LLP, BTWO
shall  provide  a  cash  retainer  of $4,000 and 2,000,000 shares (the "Retainer
Shares")  of  BTWO  common  stock  issued  with a Rule 144 legend in the name of
Richard  O.  Weed  within  10  days  of  signing  this  agreement.

Terms  for  Payment  in  Stock  instead  of  Cash.

As  a  non-cash alternative form of payment for professional services, beginning
October  10,  2004, BTWO has proposed and Weed LLP has agreed that BTWO place an
initial  block of 2,000,000 shares of BTWO's stock in Richard O. Weed's name, as
designee  for  Weed  LLP.  At  least  once  a  month,  Weed LLP will send BTWO a
statement  for fees and costs.  Unless objection is made to the bill, sufficient
stock,  net  of commission, shall then be liquidated forthwith at the prevailing
market  rate  to  satisfy  such  statement.

In  the course of Weed LLP's representation of BTWO, if all the initial block of
stock is liquidated, a new block of stock sufficient to cover projected fees, in
an  amount contemporaneously agreed to by the parties, will again be placed with
Weed  LLP,  under the terms and conditions outlined above.  At the conclusion of
Weed LLP's representation of Client and the payment of all final fees and costs,
any  unused  stock  shall  forthwith  be  returned  to  BTWO.

BTWO  has  agreed  to  register  such blocks of stock pursuant to a registration
statement  filed  at  its  own  expense.  The  foregoing 2,000,000 shares are in
addition  to  the  Retainer  Shares.

BTWO  shall  cause any subsidiary or parent corporation to adopt and be bound by
this  agreement  and  all  its  provisions.

Stock  Option

As  an  incentive  for  Weed  LLP  to  represent BTWO and to increase Weed LLP's
proprietary interest in the success of BTWO, thereby encouraging him to maintain
the  relationship  with BTWO, BTWO hereby grants to Richard O. Weed, as designee
for  Weed  LLP  options  to purchase shares of BTWO common stock.  As an initial
option,  BTWO  hereby  grants  Richard  O.  Weed the right to purchase 2,000,000
shares  of  BTWO  common  stock  at  a  price  of  three cents ($.03) per share.
Further,  every six months following the date hereof that this agreement remains
in  effect,  BTWO  shall  grant  to  Richard  O.  Weed  an option to purchase an
additional 1,000,000 shares of BTWO common stock at a price equal to 125% of the
average  closing  bid price for the 10 days immediately prior to the date of the
grant.  All  stock options are non-transferable and will expire unless exercised
on  or before December 31, 2010 or 5 years from the date of the grant, whichever
is later.  BTWO has agreed to register the shares of common stock underlying the
stock  options  at  its  own  expense.

The  options  granted will not be subject to dilution (i.e. no adjustment to the
number  of  shares  or  the  exercise price) based upon any reverse split of the
BTWO's common stock.  The stock options shall be exercisable in whole or in part
with  a  promissory  note of less than 45 days duration or upon common "cashless
exercise"  terms.

There  may  be  risks  inherent in the issuance of securities to Richard O. Weed
and/or  Weed  LLP  as compensation for services in lieu of cash.  Such risks may
include  that the securities may ultimately be worth more or less than the value
of  our services or that by the exercise of our options, we may be in a position
earn more than our hourly rate or exert some degree of control over the company.
Further, the issuance of securities as compensation may dilute the percentage of
ownership  of  your existing shareholders in the company and change the value of
their  shares.  Moreover,  the GAPP accounting treatment is frequently different
when a company issues securities in lieu of cash for services.  This occurs when
shares  are  issued  in  exchange  for  services  and  the  price  of the shares
fluctuates  during  the service period.  A declining share price may require the
company  to  issue  additional  securities  to us and cause the company's income
statement  to  reflect  higher  expenses for professional services in subsequent
accounting  periods  than  cash payment for services.  Similarly, an increase in
the  company's  share  price may cause the company's income statement to reflect
lower  expenses  for professional services in subsequent accounting periods than
cash  payment  for  services.

The  decision  about  whether or not to exercise any stock options is subject to
our  control.  In  the  past,  although  not  required,  this  decision was made
following consultation with the company's management.  It is anticipated that we
will continue to consult with management concerning the timing and amount of the
exercise  of  any  stock  options.

Costs  and  Expenses

BTWO  understands  that in the course of representation, it may be necessary for
Weed  LLP  to  incur certain costs or expenses. BTWO will reimburse Weed LLP for
certain  costs  or  expenses  actually  incurred  and  reasonably  necessary for
completing  the  assigned  matter, as long as the charges for costs and expenses
are competitive with other sources of the same products or services and approved
by  BTWO  in  advance.  More  particularly,  BTWO  will  reimburse  Weed  LLP in
accordance  with  the  following  guidelines:

1.  Computer-Related  Expenses  -  BTWO will reimburse Weed LLP for computerized
research  and  research  services. However, any charges over $500 per month will
require  approval.  BTWO  also  encourages Weed LLP to utilize computer services
that  will  enable  Weed  LLP  to  manage  the  projects.

2.  Travel - BTWO will reimburse Weed LLP for expenses in connection with out of
town  travel.  However,  BTWO  will only reimburse for economy class travel and,
where  necessary,  for  the  reasonable cost of a rental car. All related travel
expenses,  i.e.,  lodging and meals, must be reasonable under the circumstances.

3.  Filing  Fees  &  Court  Costs  -  BTWO  will reimburse Weed LLP for expenses
incurred in connection with filing fees and court costs, if any, but will not be
responsible  for  sanctions or penalties imposed due to the conduct of Weed LLP.

BTWO  shall  pay  and  hold  Weed  LLP harmless from all such costs and expenses
incurred on BTWO's behalf.  Weed LLP may, but shall not be obligated to, advance
funds  on  BTWO's  behalf. In such event, BTWO agrees to reimburse Weed LLP upon
demand  for the amounts advanced. Substantial outside fees (such as state filing
fees  or  SEC  filing  services)  may  be  referred  to BTWO for direct payment.

Billing

All  bills  will  include  a summary statement of the kinds of services rendered
during  the  relevant  period.  BTWO expects that Weed LLP will maintain back-up
documentation  for  all  expenses.  BTWO  expects to be billed monthly or at the
conclusion  of each project and agrees to pay Weed LLP's invoices within fifteen
days  of  receipt.  Weed  LLP shall bill in increments of one-quarter (1/4) hour
unless  otherwise  agreed  in  writing.

Delay  in  Payment

In  the  event  that any of Weed LLP's bills remain unpaid for more than 30 days
after  receipt  by  BTWO, Weed LLP shall have the right to discontinue rendering
further  services  to  BTWO in connection with any matter then being handled for
BTWO  by  Weed  LLP  and  to  take  appropriate  action  to  collect  such fees.

Involvement  of  BTWO

BTWO  expects  to  be  kept  closely  involved  with  the progress of Weed LLP's
services  in  this  matter.  Weed  LLP  will  keep BTWO apprised of all material
developments  in  this  matter,  and  will provide sufficient notice to enable a
representative  to  attend  meetings,  conferences,  and  other  proceedings.

There  may be times when Weed LLP will need to obtain information from BTWO. All
requests  for  access  to  documents,  employees,  or other information shall be
granted  without  unreasonable  delay.

Termination

BTWO  shall  have the right to terminate Weed LLP's engagement by written notice
at  any time.  Weed LLP has the same right to terminate this engagement, subject
to  an  obligation  to  give  BTWO  reasonable  notice  to  permit  it to obtain
alternative  representation  or  services  and  subject  to  applicable  ethical
provisions.  Weed  LLP  will  be  expected  to  provide reasonable assistance in
effecting  a  transfer  of  responsibilities  to  the  new  service  provider.

Disputes

The  laws  of  the  State  of California shall govern the interpretation of this
agreement, including all rules or codes of ethics that apply to the provision of
services.  All disputes between us arising out of this engagement that cannot be
settled  shall be resolved in a federal or state court located in Orange County,
California.

Facsimile  Execution  of  this  Agreement  is  Binding

A facsimile, telecopy or other reproduction of this agreement may be executed by
one  or more parties hereto and such executed copy may be delivered by facsimile
or  similar  instantaneous  electronic transmission device pursuant to which the
signature  of  or  on  behalf  of such party can be seen, and such execution and
delivery  shall be considered valid, binding and effective for all purposes.  At
the  request  of  any  party hereto, all parties agree to execute an original of
this  agreement as well as any facsimile, telecopy or other reproduction hereof.

If  the  foregoing  accurately  reflects  our  agreement  regarding professional
services,  please  sign and return a duplicate copy of this letter by facsimile.
Thank  you  in  advance  for  your  prompt  attention  to  this  matter.

                                   Very  truly  yours,

                                  /s/  Richard  O.  Weed
                                   Richard  O.  Weed
                                   Managing  Partner

Approved  and  Agreed
B2Digital,  Inc.

By:  _/s/  Robert  Russell
     ---------------------
Name:  Robert  Russell
Title:  Chief  Executive  Officer
Date:  October  12,  2004EX-10.1

AMENDED AND RESTATED OPTION AGREEMENT

This AMENDED AND RESTATED OPTION AGREEMENT (this “Agreement”), dated as of January 10, 2005,
amends and restates the OPTION AGREEMENT, dated November 1, 2002 (the “Option Agreement”), between
(i) PLATINUM UNDERWRITERS HOLDINGS, LTD., a company organized under the laws of the Islands of
Bermuda (the “Company”), and (ii) THE ST. PAUL TRAVELERS COMPANIES, INC., a company incorporated
under the laws of the State of Minnesota in the United States of America and formerly known as The
St. Paul Companies, Inc. (“St. Paul Travelers”).

RECITALS:

WHEREAS, the Company completed an initial public offering (the “Public Offering”) of its
common shares, par value U.S.$0.01 per share (the “Common Shares”), on November 1, 2002;

WHEREAS, St. Paul Travelers and the Company entered into a Formation and Separation Agreement,
dated as of October 28, 2002 (the “Formation and Separation Agreement”), pursuant to which St. Paul
Travelers agreed to purchase from the Company that number of Common Shares determined as set forth
in the Formation and Separation Agreement;

WHEREAS, pursuant to the Formation and Separation Agreement, the Company granted to St. Paul
Fire and Marine Insurance Company, a company incorporated under the laws of the State of Minnesota
and a wholly owned subsidiary of St. Paul Travelers (“Fire and Marine”), pursuant to an option
agreement dated as of November 1, 2002 (the “Fire and Marine Option Agreement”), an option (the
“Original Option”) to purchase up to 5,105,740 Common Shares following the completion of the Public
Offering at an exercise price of $27.00, which equals 120 percent of the Public Offering price per
Common Share;

WHEREAS, immediately upon completion of the Public Offering, Fire and Marine transferred the
Original Option to St. Paul Travelers;

WHEREAS, the parties hereto desire that the Original Option be amended to provide that any
exercise thereof shall be on a net share settlement basis with payment by St. Paul Travelers to the
Company of cash consideration per Common Share issued upon such exercise of the then par value of
such Common Share; and

WHEREAS, the Company has determined that the Company will benefit from a reduction in the
overhang on the market which arises from the Original Option, the Company has no need of the
capital represented by the aggregate Original Option Price, and it is in the best interests of the
Company to amend the Original Option in accordance with the desires of the parties hereto.

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree that the Option Agreement shall be amended and
restated in its entirety as follows:

1

THE OPTION (AS DEFINED BELOW) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933.
NEITHER THE OPTION, NOR ANY INTEREST THEREIN, NOR ANY COMMON SHARES DELIVERABLE UPON EXERCISE
THEREOF MAY BE ASSIGNED OR OTHERWISE TRANSFERRED, DISPOSED OF OR ENCUMBERED EXCEPT FOLLOWING
RECEIPT BY PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE “COMPANY”) OF EVIDENCE SATISFACTORY TO IT,
WHICH MAY INCLUDE AN OPINION OF UNITED STATES COUNSEL, THAT SUCH TRANSFER DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT OR STATE SECURITIES LAWS AND UPON OBTAINMENT OF ANY REQUIRED
GOVERNMENT APPROVALS AND EXCEPT TO THE EXTENT PERMITTED HEREIN. TRANSFER (AS DEFINED IN THE
COMPANY’S BYE-LAWS) OF THE OPTION OR ANY INTEREST THEREIN, OR ANY COMMON SHARES DELIVERABLE UPON
EXERCISE THEREOF, MAY BE DISAPPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY IF, IN ITS REASONABLE
JUDGMENT, IT HAS REASON TO BELIEVE THAT SUCH TRANSFER MAY EXPOSE THE COMPANY, ANY SUBSIDIARY
THEREOF, ANY SHAREHOLDER OR ANY PERSON CEDING INSURANCE TO THE COMPANY OR ANY SUCH SUBSIDIARY TO
ADVERSE TAX OR REGULATORY TREATMENT IN ANY JURISDICTION. COMMON SHARES OBTAINED UPON EXERCISE OF
THE OPTION ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER AS SET FORTH IN SECTION 6 OF THIS
AGREEMENT.

1. (a) The Company acknowledges and agrees that St. Paul Travelers has an option (the “Option”) to
purchase up to 5,105,740 Common Shares (the “Option Shares”) in accordance with the terms of this
Agreement.

(b) The Option is exercisable, in whole or in part at any time prior to November 1, 2012 (the
“Exercise Period”), at an exercise price per Common Share (the “Exercise Price”) equal to $27.00
less the then par value of such Common Share, as such Exercise Price is adjusted from time to time
pursuant hereto, which Exercise Price shall be paid by reducing the number of Common Shares
obtainable upon exercise of the Option as provided in Section 1(d) hereof. As additional
consideration, in connection with any exercise of the Option, St. Paul Travelers must pay the
applicable Cash Consideration to the Company in accordance with Section 2 below.

(c) The Option may be exercised on any day during the Exercise Period, other than a Saturday,
Sunday or other day on which banking institutions in New York City or Bermuda are authorized or
obligated by law or executive order to close (a “Business Day”). The Option may be exercised as
provided herein until 12:01 A.M., New York City time, on the first day after the expiration of the
Exercise Period.

(d) Upon any exercise of the Option, the Exercise Price shall be paid by reducing the number
of Option Shares obtainable upon such exercise so as to yield a number of Option Shares issuable
upon such exercise equal to the product of (x) the number of Option Shares issuable as of the
Notice Date (if payment of the Exercise Price were being made in cash) and (y) the Exchange Ratio.
For purposes hereof, (i) “Exchange Ratio” means a fraction, the numerator of which is the excess of
the Market Price per Common Share over the Exercise Price per share as of the Notice Date and the
denominator of which is the Market Price per Common Share; (ii) “Market Price” means the average of
the daily Closing Price per Common Share for each of the five consecutive Trading Days ending on
the Notice Date (the “Pre-Notice Average”) plus the average of the daily Closing Price per Common
Share for each of the five consecutive Trading Days immediately following the Notice Date (the
“Post-Notice Average”) divided by two; provided, however, that the Post-Notice
Average shall not exceed the Pre-Notice Average multiplied by 1.025 nor be less than the Pre-Notice
Average multiplied by 0.975; (iii) “Trading Day” means each Monday, Tuesday, Wednesday, Thursday
and Friday, other than any day on which the Common Shares are not traded on the applicable
securities exchange or on the applicable securities market; (iv) “Closing Price” means the reported
last sale price regular way or, in case no such reported sale takes place on such day, the average
of the reported closing bid and asked prices regular way, in either case on the New York Stock
Exchange or, if the Common Shares are not listed or admitted to trading on such Exchange, on the
principal national securities exchange on which the Common Shares are listed or admitted to trading
or, if not listed or admitted to trading on any national securities exchange, on the NASDAQ
National Market or, if the Common Shares are not listed or admitted to trading on any national
securities exchange or quoted on the NASDAQ National Market, the average of the closing bid and
asked prices in the over-the-counter market as furnished by any New York Stock Exchange member firm
reasonably selected from time to time by the Board of Directors of the Company for that purpose;
and (v) “Notice Date” means the date upon which the Company receives written notice (which shall be
signed on behalf of St. Paul Travelers and delivered or sent to the Company in accordance with
Section 9 hereof) from St. Paul Travelers of St. Paul Travelers’ exercise of the Option, provided
that the Company shall receive such notice no later than 11:59 pm Bermuda time on such date.

(e) No fractional Common Share shall be issued upon any exercise of the Option. In lieu of a
fractional Common Share, St. Paul Travelers shall be entitled to receive cash for the value of the
fractional Common Share, which cash payment shall be equal to the product of (i) the fraction
represented by the fractional Common Share that would have been issued absent this Section 1(e) and
(ii) the Market Price.

(f) In connection with any exercise of the Option, the Market Price, the Exercise Price, and
the number of Option Shares to be issued (after giving effect to the payment of the Exercise Price
as provided in Section 1(d) hereof) will be determined by the Company within three Business Days
after the last Trading Day included in the Post-Notice Average (the “Determination Date”).

(g) Notwithstanding anything to the contrary in this Agreement, St. Paul Travelers’ beneficial
ownership interest in the Common Shares may not at any time and under any circumstances be equal to
or exceed that percentage of the Common Shares outstanding that would cause St. Paul Travelers to
be a “United States 25% Shareholder” as defined in the Company’s bye-laws as in effect as of the
completion of the Public Offering. It is agreed and understood that, prior to any exercise of the
Option, St. Paul Travelers shall, if necessary, dispose of such number of Common Shares so that,
immediately after any exercise of the Option, St. Paul Travelers will not be a “United States 25%
Shareholder.”

(h) The Option Shares upon issue will rank equally in all respects with the other Common
Shares of the Company, but in no case will any Option Shares carry any option or other right to
subscribe for further additional shares.

(i) St. Paul Travelers is not, solely by virtue hereof, entitled to any rights of a
shareholder in the Company either at law or in equity.

(j) Upon any merger, amalgamation, consolidation, scheme of arrangement or similar transaction
involving the Company and any third party that is not a subsidiary of the Company, or any sale of
all or substantially all the assets of the Company to any third party that is not a subsidiary of
the Company (each, a “Transaction”) in which all holders of Common Shares become entitled to
receive, in respect of such shares, any capital stock, rights to acquire capital stock or other
securities of the Company or of any other person, any cash or any other property, or any
combination of the foregoing (collectively, “Transaction Consideration”), the Option shall entitle
St. Paul Travelers, upon exercise thereof and payment by St. Paul Travelers of the Cash
Consideration, to receive all Transaction Consideration that St. Paul Travelers would have been
entitled to if it had exercised the Option in full immediately prior to the Transaction (without
regard to the limitations in Section 1(g) hereof). In determining the kind and amount of
Transaction Consideration that St. Paul Travelers would be entitled to receive in respect of any
Transaction pursuant to this Section 1(j), St. Paul Travelers shall be entitled to exercise any
rights of election as to the kinds and amounts of consideration receivable in such Transaction that
are provided to holders of Common Shares in such Transactions. Any adjustment in respect of a
Transaction pursuant to this Section 1(j) shall become effective immediately after the effective
time of such Transaction, retroactive to any record date therefor. The Company shall take such
action as is necessary to ensure that St. Paul Travelers shall be entitled to receive Transaction
Consideration upon the terms and conditions provided in this Section 1(j). Notwithstanding the
foregoing, if an adjustment is made pursuant to this Section 1(j) in respect of a Transaction that
involves a Change of Control (as defined below), St. Paul Travelers shall be entitled to exercise
the Option pursuant to this Section 1(j) without regard to Section 1(g) hereof. A Transaction is
deemed to have involved a “Change of Control” if the beneficial owners of the outstanding Common
Shares immediately prior to the effective time of such Transaction are not the beneficial owners of
a majority of the total voting power of the surviving or acquiring entity in the Transaction, as
the case may be, immediately after such effective time.

2. (a) To exercise the Option in accordance with Section 1 hereof, St. Paul Travelers shall provide
written notice to the Company of its intention to exercise all or a portion of the Option. Such
notice must indicate the number of Option Shares St. Paul Travelers intends to purchase upon
exercise of the Option (prior to giving effect to the payment of the Exercise Price pursuant to
Section 1(d) hereof).

(b) On the Determination Date, the Company shall deliver written notice to St. Paul Travelers
of the number of Option Shares to which St. Paul Travelers is entitled as a result of the exercise
of the Option. Upon payment by St. Paul Travelers to the Company of the Cash Consideration (which
may be made by check, cash or wire transfer), the Company shall promptly (but in no event later
than the third Business Day after receipt of such payment from St. Paul Travelers) deliver to St.
Paul Travelers the Option Shares, and shall pay to St. Paul Travelers the cash in lieu of any
fractional Common Share, which may be paid by check, cash or wire transfer. The “Cash
Consideration” means an amount equal to the product of (i) the number of Option Shares to which St.
Paul Travelers is entitled as a result of the exercise of the Option (after giving effect to the
payment of the Exercise Price pursuant to Section 1(d) hereof) and (ii) the then per share par
value of a Common Share. Any increase in the par value of the Common Shares from $0.01 per Common
Share which would have the effect of increasing the Cash Consideration, other than in the case of
any of the actions described in Sections 3(a)(B) and 3(a)(C) hereof which includes a proportionate
adjustment in the par value, shall be subject to the prior written consent of St. Paul Travelers.

(c) Notwithstanding anything to the contrary in this Agreement, the Option may not be
exercised under this Agreement unless the required regulatory approvals set forth in Section 5
shall have been obtained.

3. (a) In case the Company:

(A) declares or pays a dividend or makes any other distribution with respect to
its capital stock in Common Shares such that the number of Common Shares outstanding
is increased,

(B) subdivides or splits-up its outstanding Common Shares, such that the number
of Common Shares outstanding is increased,

(C) combines its outstanding Common Shares into a smaller number of Common
Shares or

(D) effects any reclassification of the Common Shares other than a change in
par value (including any such reclassification in connection with an amalgamation or
merger in which the Company is the surviving entity or a reincorporation of the
Company),

the number of Option Shares issuable upon exercise of the Option shall be proportionately
adjusted so that St. Paul Travelers will be entitled to receive the kind and number of
Common Shares or other securities of the Company which it would have been entitled to
receive after the happening of any of the events described above if the Option had been
exercised immediately prior to the happening of such event or any record date with respect
thereto. An adjustment made pursuant to this Section 3(a) shall become effective
immediately after the effective date of such event retroactive to the record date, if any,
for such event.

(b) In case the Company issues rights, options or warrants to all holders of its outstanding
Common Shares entitling them to subscribe for or purchase Common Shares at a price per Common Share
which is lower at the record date mentioned below than the then Current Market Value (as defined in
Section 3(d)), the number of Option Shares that St. Paul Travelers may purchase thereafter upon the
exercise of the Option (prior to giving effect to the payment of the Exercise Price pursuant to
Section 1(d) hereof) will be determined by multiplying the number of Option Shares theretofore
purchasable upon exercise of the Option by a fraction, of which the numerator is the sum of (A) the
number of Common Shares outstanding on the record date for determining shareholders entitled to
receive such rights, options or warrants plus (B) the number of additional Common Shares offered
for subscription or purchase, and of which the denominator shall be the sum of (A) the number of
Common Shares outstanding on the record date for determining shareholders entitled to receive such
rights, options or warrants plus (B) the number of shares which the aggregate offering price of the
total number of Common Shares so offered would purchase at the Current Market Value (as defined
below in Section 3(d)) per Common Share at such record date. Such adjustment shall be made
whenever such rights, options or warrants are issued, and shall become effective immediately after
the record date for the determination of shareholders entitled to receive such rights, options or
warrants.

(c) In the event the Company distributes to all holders of its Common Shares any of the
capital stock of any of its subsidiaries (each, a “Subsidiary”), the Option will upon such
distribution be deemed to be an option to acquire the kind and number of shares of the capital
stock of the Subsidiary which St. Paul Travelers would have been entitled to receive after such
distribution had the Option been exercised immediately prior to such distribution or any record
date with respect thereto. The roll-over of the Option into an option to acquire shares of capital
stock of the applicable Subsidiary pursuant to this Section 3(c) will become effective immediately
after the effective date of the distribution of shares of the capital stock of the applicable
Subsidiary to shareholders of the Company described above.

(d) For the purpose of any computation under Section 3(b), the “Current Market Value” of such
Common Shares on a specified date is deemed to be the average daily Closing Price per Common Share
for each of the ten consecutive Trading Days ending on the day before the applicable record date.

(e) In the event the Company shall, in any calendar year, by dividend or otherwise, distribute
to all or substantially all holders of its Common Shares (the “Current Distribution”) (i) any
dividend or other distribution of cash, evidences of indebtedness, or any other assets or
properties (other than as described in Sections 3(a) through 3(c) above) or (ii) any options,
warrants or other rights to subscribe for or purchase any of the foregoing, with a fair value (as
determined in good faith by the Company’s Board of Directors) per Common Share that, when combined
with the aggregate amount per Common Share paid in respect of all other such distributions to all
or substantially all holders of its Common Shares within such calendar year, exceeds (1) for
calendar year 2003, the Initial Dividend (as defined below) or (2) for any subsequent calendar
year, an amount equal to the Initial Dividend increased at a rate of 10% per annum from January 1,
2003, compounded annually on December 31 of each year commencing in 2003 (such excess of the
Current Distribution being herein referred to as the “Excess Distribution Amount”), the per share
Exercise Price in effect immediately prior to the close of business on the date fixed for such
payment shall be reduced by the Excess Distribution Amount, such reduction to become effective
immediately prior to the opening of business on the day following the date fixed for such payment.
The “Initial Dividend” means the distributions described in items (i) and (ii) above per Common
Share paid by the Company to all or substantially all holders of its Common Shares during the 2003
calendar year as determined by the Company’s Board of Directors, up to a maximum of $0.44 per
Common Share.

(f) Whenever the number of Common Shares purchasable by St. Paul Travelers upon the exercise
of the Option is adjusted, as herein provided, the Exercise Price shall be adjusted by multiplying
the Exercise Price immediately prior to such adjustment by a fraction, of which the numerator shall
be the number of Option Shares purchasable upon the exercise of the Option immediately prior to
such adjustment, and of which the denominator shall be the number of Option Shares purchasable
immediately thereafter (in each case, prior to giving effect to the payment of the Exercise Price
pursuant to Section 1(d) hereof).

(g) No adjustment in the number of Option Shares issuable upon the exercise of the Option need
be made under Section 3(b) and (c) if the Company issues or distributes, pursuant to this
Agreement, to St. Paul Travelers the shares, rights, options, warrants, securities or assets
referred to in those Sections which St. Paul Travelers would have been entitled to receive had the
Option been exercised prior to the happening of such event or the record date with respect thereto.
Other than for adjustments in the Cash Consideration (which are subject to Section 2(b) hereof),
no adjustment need be made for a change in the par value of the Option Shares.

(h) For the purpose of this Section 3, the term “Common Shares” shall mean (i) the class of
stock consisting of the Common Shares of the Company, or (ii) any other class of stock resulting
from successive changes or reclassification of such shares other than consisting solely of changes
in par value. In the event that at any time, as a result of an adjustment made pursuant to Section
3(a) above, St. Paul Travelers will become entitled to receive any securities of the Company other
than Common Shares, thereafter the number of such other securities so receivable upon exercise of
the Option and the Exercise Price of such securities will be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to
the Option Shares contained in Sections 3(a) through 3(f), inclusive, above; provided,
however, that the Exercise Price will at no time be less than the aggregate par value of
the Common Shares or other securities of the Company obtainable upon exercise of the Option.

(i) In the case of Section 3(b), upon the expiration of any rights, options or warrants or if
any thereof shall not have been exercised, the Exercise Price and the number of Common Shares
purchasable upon the exercise of the Option shall, upon such expiration, be readjusted and shall
thereafter be such as they would have been had they been originally adjusted (or had the original
adjustment not been required, as the case may be) as if (A) the only Common Shares so issued were
the Common Shares, if any, actually issued or sold upon the exercise of such rights, options or
warrants and (B) such Common Shares, if any, were issued or sold for the consideration actually
received by the Company upon such exercise plus the aggregate consideration, if any, actually
received by the Company for the issuance, sale or grant of all such rights, options or warrants
whether or not exercised; provided, further, that no such readjustment may have the
effect of increasing the Exercise Price or decreasing the number of Common Shares purchasable upon
the exercise of the Option by an amount in excess of the amount of the adjustment initially made in
respect of the issuance, sale or grant or such rights, options or warrants.

(j) In the case of Section 3(b), on any change in the number of Common Shares deliverable upon
exercise of any such rights, options or warrants, other than a change resulting from the
antidilution provisions hereof, the number of Option Shares thereafter purchasable shall forthwith
be readjusted to such number as would have been obtained had the adjustment made upon the issuance
of such rights, options or warrants not converted prior to such change (or rights, options or
warrants related to such securities not converted prior to such change) been made upon the basis of
such change.

(k) The Company may at its option, at any time during the term of the Option, reduce the then
current Exercise Price to any amount and for any period of time deemed appropriate by the Board of
Directors of the Company, including such reductions in the Exercise Price as the Company considers
to be advisable in order that any event treated for Federal income tax purposes as a dividend of
stock or stock rights shall not be taxable to the recipients.

4. The Company undertakes to use commercially reasonable efforts to increase (if necessary) its
authorized share capital to a level sufficient to satisfy any exercise of the Option.

5. (a) For so long as the Option is exercisable hereunder, each party hereto shall (i) use its
commercially reasonable efforts to obtain all authorizations, consents, orders and approvals of all
governmental authorities and officials that may be or become necessary for the performance of its
obligations pursuant to this Agreement and (ii) cooperate reasonably with the other party in
promptly seeking to obtain all such authorizations, consents, orders and approvals. The parties
hereto agree to cooperate reasonably, complete and file any joint applications for any
authorizations from any governmental authorities reasonably necessary or desirable to effectuate
the transactions contemplated by this Agreement. The parties hereto agree that they will keep each
other apprised of the status of matters relating to the exercise of the Option, including
reasonably promptly furnishing the other with copies of notices or other communications received by
the Company or St. Paul Travelers, from all third parties and governmental authorities with respect
to the Option.

(b) For so long as the Option is exercisable, the Company and St. Paul Travelers agree to
reasonably promptly prepare and file, if necessary, any filing under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR Act”) with the Federal Trade Commission
(the “FTC”) and the Antitrust Division of the Department of Justice (the “DOJ”) in order to enable
St. Paul Travelers to exercise such Option pursuant to this Agreement. Each party hereby covenants
to cooperate reasonably with the other such party to the extent reasonably necessary to assist in
making reasonable supplemental presentations to the FTC or the DOJ, and, if requested by the FTC or
the DOJ, to reasonably promptly amend or furnish additional information thereunder.

(c) Any reasonable out-of-pocket costs and expenses arising in connection with actions taken
pursuant to this Section 5 shall be borne by St. Paul Travelers.

6. (a) The Option and the Option Shares may not be assigned or otherwise transferred, disposed of
or encumbered by St. Paul Travelers (or any subsequent transferee) in whole or in part except as
provided in this Section 6. Notwithstanding anything to the contrary in this Agreement, St. Paul
Travelers may, at any time, assign or otherwise transfer, dispose or encumber the Option or the
Option Shares in whole or in part to any direct or indirect wholly owned subsidiary of St. Paul
Travelers, provided that such transferee shall enter into an option agreement with the Company that
is substantially identical to this Agreement.

(b) In the event of a merger of St. Paul Travelers into another person, or a sale, transfer or
lease to another person of all or substantially all the assets of St. Paul Travelers, the Option or
the Option Shares may be transferred as part of such transaction to the other party to such
transaction.

(c) On and after January 10, 2005, St. Paul Travelers may transfer the Option or the Option
Shares, in whole or in part, in one or more private transaction(s) to up to three institutional
accredited investors; provided, however, that any proposed transfer is conditioned
upon:

(i) receipt by the Company of evidence satisfactory to it, which may include an opinion
of United States counsel, that such transfer would not require registration under the
Securities Act or state securities laws and upon the obtainment of any required government
approvals (which approvals the Company agrees to use commercially reasonable efforts to
assist in obtaining); and

(ii) the proposed transferee executing and delivering instruments reasonably acceptable
to the Company acknowledging:

(A) that the transferee may not offer, sell, assign, pledge or otherwise
transfer the Option or any Option Shares except pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering such Option Shares or pursuant to an available exemption from the
registration requirements of the Securities Act and in compliance with all
applicable state securities laws;

(B) that the Company is entitled to decline to register any transfer (as
defined in the Company’s bye-laws) of Option Shares, and any transfer of Option and
Option Shares shall be void, unless (i) such transfer is made pursuant to and in
accordance with Rule 144 (provided that the Company (or its designated agent
for such purpose) may request a certificate satisfactory to it of compliance by the
transferor with the requirements of Rule 144), (ii) such transfer is made pursuant
to another available exemption from the registration requirements of the Securities
Act (provided that, if not already a party hereto, the intended transferee
agrees to abide by the provisions of this Section 6(c)(ii), and provided,
further, that, if the Company requests, the transferor first provides the
Company (or such agent) with evidence satisfactory to it, which may include an
opinion of U.S. counsel satisfactory to the Company, to the effect that such
transfer is made pursuant to another available exemption from the registration
requirements of the Securities Act), (iii) such transfer is made pursuant to an
effective registration statement under the Securities Act covering the Option Shares
being transferred, including a registration statement filed pursuant to the
Registrations Rights Agreement dated November 1, 2002 between the Company and St.
Paul Travelers (the “Registration Rights Agreement”), and in all cases pursuant to
this clause (B) such transfer is in compliance with all applicable state securities
laws (the Company being entitled to waive or modify the foregoing transfer
requirements, generally or in any particular case, to the extent that it determines,
on advice of U.S. counsel, that compliance with such requirements is not necessary
to ensure compliance with the Securities Act or any applicable state securities
laws, or such modification is necessary to ensure compliance with the Securities Act
or any applicable state securities laws, as the case may be) and (iv) such
transferee agrees to be bound by the provisions of this Agreement;

(C) that, except as provided below, no Option Share shall be held in book-entry
form, and each certificate representing a Option Share shall be evidenced by a
certificate bearing a restrictive legend (the “Legend”) substantially in the form
set forth below:

THE COMMON SHARES EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND COMPLIANCE WITH
APPLICABLE STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE HELD IN BOOK-ENTRY FORM.
SUCH SHARES ARE ALSO SUBJECT TO RESTRICTIONS ON TRANSFER (AS DEFINED IN THE BYE-LAWS
OF THE COMPANY) SET FORTH IN THE AMENDED AND RESTATED OPTION AGREEMENTS, EACH DATED
AS OF JANUARY 10, 2005, AMONG THE ST. PAUL TRAVELERS COMPANIES, INC., CERTAIN WHOLLY
OWNED SUBSIDIARIES THEREOF AND PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE “COMPANY”),
WHICH MAY REQUIRE, AMONG OTHER THINGS, THE PRIOR RECEIPT BY THE COMPANY FROM THE
TRANSFEROR OR THE TRANSFEREE OF EVIDENCE SATISFACTORY TO IT, WHICH MAY INCLUDE AN
OPINION OF U.S. COUNSEL OR UNDERTAKINGS TO BE BOUND BY SUCH AGREEMENTS. SUCH SHARES
ARE ALSO SUBJECT TO RESTRICTIONS IN THE BYE-LAWS OF THE COMPANY, INCLUDING
RESTRICTIONS ON TRANSFER AND VOTING INTENDED TO ENSURE THAT NO PERSON BECOMES OR IS
DEEMED TO BECOME A 10% SHAREHOLDER OF THE COMPANY (AS EXPLAINED IN SUCH BYE-LAWS).

(D) that the transferee shall become a party to the Registration Rights
Agreement, with the attendant rights and obligations thereunder; provided,
further, that any proposed transfer may be disapproved by the Board of
Directors of the Company if, in their reasonable judgment, they have reason to
believe that such transfer may expose the Company, any subsidiary thereof, any
shareholder or any person ceding insurance to the Company or any such subsidiary to
adverse tax or regulatory treatment in any jurisdiction. In connection with or
following any transfer of Option Shares in accordance with clause (i) or (iii) of
Section 6(c)(ii)(B) (except in the case of a transfer of Option Shares to an
“affiliate” of the Company, as such term is defined in the Securities Act, in
accordance with clause (i) of Section 6(c)(ii)(B)), and upon the surrender of any
certificate or certificates representing such Option Shares to the Company (or such
agent), the Company shall cause to be issued in exchange therefor a new certificate
or certificates that represent the same Common Shares and do not bear the Legend (or
shall permit such shares to be held in book-entry form). The Company shall use
commercially reasonable efforts to cause each Option Share transferred as
contemplated by clause (i) or (iii) of Section 6(c)(ii)(B) to be duly listed on each
securities exchange, and to be accepted for quotation in each interdealer quotation
system, on or in which any Common Shares are listed or quoted at the time of such
transfer (provided that the approval for such listing or quotation has been
obtained by the Company), in each case so that the Option Share so transferred will
be freely transferable on each such exchange and in each such system to the same
extent as the Common Shares then listed thereon or quoted therein; and

(E) such transferee shall not become a “10% Shareholder” (as defined below in
this Section 6(c)) immediately after such transfer (assuming for purposes of this
determination that the Option Shares were actually owned by the transferee); and

(iii) such transfer not resulting, directly or indirectly, in a transfer to any
Specified Person (as defined below) of more than 9.9% of the Common Shares outstanding at
the time of such transfer, or the right to acquire pursuant to the Option more than 9.9% of
the Common Shares outstanding at the time of such transfer, except in the following
circumstances: (A) in connection with any tender offer or exchange offer made to all holders
of outstanding Common Shares; (B) to any Post-Closing Subsidiary of St. Paul Travelers (as
defined in the Formation and Separation Agreement) provided that such subsidiary
agrees in writing with the Company to the same transfer restrictions as are contained in
this Section 6(c); or (C) a transfer by operation of law upon consummation of a merger or
consolidation of St. Paul Travelers into another Person (as defined in the Formation and
Separation Agreement). For purposes of this Section 6(c)(iii), “Specified Person” means any
Person that generates 50% or more of its gross revenue in its most recent fiscal year for
which financial statements are available by writing property or casualty insurance or
reinsurance.

As used herein, “10% Shareholder” means a person who owns, in aggregate, (i) directly, (ii) with
respect to persons who are United States persons, by application of the attribution and
constructive ownership rules of Sections 958(a) and 958(b) of the Code or (iii) beneficially,
directly or indirectly, within the meaning of Section 13(d)(3) of the United States Securities
Exchange Act of 1934, issued shares of the Company carrying 10% or more of the total combined
voting rights attaching to all issued shares.

(d) In connection with any proposed transfer of all or a portion of the Option pursuant to
Section 6(c), the Company shall prepare an option agreement (or, in the case of a partial transfer,
option agreements) substantially identical to this Agreement with the transferee (and transferor,
in the case of partial transfer) upon surrender to the Company of the existing option agreement
prior to the consummation of the transfer. Upon the execution of such option agreement by the
transferee and the Company and the consummation of the transfer, the transferee shall have such
rights and obligations with respect to the number of Option Shares covered by the portion of the
Option transferred to such transferee as the rights and obligations of St. Paul Travelers to such
portion hereunder.

(e) Any transferee of all or part of the Option pursuant to Section 6(c) hereof (or any
subsequent transferee who holds any portion of the Option as a result of a transfer pursuant to
this Section 6(e)) may transfer, in whole but not in part, the Option to a subsequent transferee;
provided that any such transfer shall be subject to the terms and conditions set forth in
Sections 6(c) and 6(d) hereof.

7. The issuance of share certificates upon the exercise of the Option shall be without charge to
St. Paul Travelers. The Company shall pay, and indemnify St. Paul Travelers from and against, any
issuance, stamp, documentary or other taxes (other than transfer taxes and income taxes), or
charges imposed by any governmental body, agency or official by reason of the exercise of the
Option or the resulting issuance of Option Shares.

8. This Agreement may not be amended except in a written instrument signed by the Company and St.
Paul Travelers.

9. All notices, requests, claims, demands and other communications hereunder shall be in writing
and shall be given by facsimile and by e-mail transmission addressed as follows (or to such other
address as a party may designate by written notice to the others) and shall be deemed given on the
date on which such notice is received:

If to St. Paul Travelers:

The St. Paul Travelers Companies, Inc.

385 Washington Street

St. Paul, Minnesota 55102

Attention: General Counsel

Facsimile: (651) 310-5853

E-mail: kspence@spt.com

with a copy to:

Donald R. Crawshaw

Sullivan & Cromwell

125 Broad Street

New York, New York 10004

Facsimile: (212) 558-3588

E-mail: crawshawd@sullcrom.com

If to the Company:

Platinum Underwriters Holdings, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM08

Bermuda

Attention: Michael E. Lombardozzi

Executive Vice President, General Counsel

and Secretary

Facsimile: (441) 292-4720

E-mail: mlombardozzi@platinumre.com

with a copy to:

Linda E. Ransom

Dewey Ballantine LLP

1301 Avenue of the Americas

New York, New York 10019

Facsimile: (212) 259-6333

E-mail: lransom@dbllp.com

10. This Agreement, the Formation and Separation Agreement and the Registration Rights Agreement
(which, for the avoidance of doubt, shall apply to any Common Shares issued under this Agreement in
the same manner as to any Common Shares that were issuable under the Option Agreement) constitute
the entire agreement between the parties hereto with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral and written, between the parties hereto
with respect to the subject matter hereof.

11. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their
respective successors and permitted assigns. Nothing in this Agreement, expressed or implied, is
intended to confer on any person other than the parties hereto, and their respective successors and
permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this
Agreement.

12. The parties hereby agree that the Fire and Marine Option Agreement had no further force or
effect upon completion of the Public Offering.

13. This Agreement may not be assigned by any party hereto, except to a party to whom St. Paul
Travelers transfers the Option or Option Shares in accordance with Section 6 of this Agreement, and
then only in accordance with that section.

14. The headings contained in this Agreement are for convenience only and do not affect the meaning
or interpretation of this Agreement.

15. (a) This Agreement shall be governed by, and construed in accordance with, the law of the State
of New York (without regard to principles of conflict of laws).

(b) The parties hereto shall promptly submit any dispute, claim, or controversy arising out of
or relating to this Agreement, including effect, validity, breach, interpretation, performance, or
enforcement (collectively, a “Dispute”) to binding arbitration in New York, New York at the offices
of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) before an arbitrator (the
“Arbitrator”) in accordance with JAMS’ Comprehensive Arbitration Rules and Procedures and the
Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. The Arbitrator shall be a former judge selected
from JAMS’ pool of neutrals. The parties agree that, except as otherwise provided herein
respecting temporary or preliminary injunctive relief, binding arbitration shall be the sole means
of resolving any Dispute. Judgment on any award of the Arbitrators may be entered by any court of
competent jurisdiction.

(c) The costs of the arbitration proceeding and any proceeding in court to confirm or to
vacate any arbitration award or to obtain temporary or preliminary injunctive relief as provided in
Section 14(d) below, as applicable (including, without limitation, actual attorneys’ fees and
costs), shall be borne by the unsuccessful party and shall be awarded as part of the Arbitrator’s
decision, unless the Arbitrator shall otherwise allocate such costs in such decision.

(d) This Section 15 shall not prevent the parties hereto from seeking or obtaining temporary
or preliminary injunctive relieve in a court for any breach or threatened breach of any provision
hereof pending the hearing before and determination of the Arbitrator. The parties hereby agree
that they shall continue to perform their obligations under this Agreement pending the hearing
before and determination of the Arbitrator, it being agreed and understood that the failure to so
provide will cause irreparable harm to the other party hereto and that the putative breaching party
has assumed all of the commercial risks associated with such breach or threatened breach of any
provision hereof by such party.

(e) The parties agree that the State and Federal courts in The City of New York shall have
jurisdiction for purposes of enforcement of their agreement to submit Disputes to arbitration and
of any award of the Arbitrator.

16. Capitalized terms used but not defined in this Agreement have the meanings specified in the
Formation and Separation Agreement.

2

IN WITNESS WHEREOF, each of the parties hereto has caused this AGREEMENT to be duly executed
by a duly authorized officer as of the date and year first above written.

PLATINUM UNDERWRITERS HOLDINGS, LTD.

By: /s/ Gregory E. A. Morrison

	 	 	 	Name: Gregory E.A. Morrison

Title: President and Chief Executive Officer

THE ST. PAUL TRAVELERS COMPANIES, INC.

By: /s/ Samuel Liss

	 	 	 	Name: Samuel Liss

Title: Executive Vice President — Business and Development

Acknowledged and agreed as to Section 12 of this Agreement only:

ST. PAUL FIRE AND MARINE INSURANCE COMPANY

By: /s/ Bruce A. Backberg

	 	 	 	Name: Bruce A. Backberg

Title: Senior Vice President and Corporate Secretary

3

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