Document:

AMENDMENT TWO
                                     TO THE
                            SCOTTISH RE GROUP LIMITED
                     2004 EQUITY INCENTIVE COMPENSATION PLAN

     The Board of Directors of Scottish Re Group Limited has amended the 2004
Equity Incentive Compensation Plan (the "Plan") as follows:

1.   Paragraph 2 of the Plan is amended by replacing subparagraph (b) with the
     following:

          "Award" means a Stock Option, Restricted Share, or Restricted Share
     Unit.

2.   Paragraph 2 of the Plan is further amended to add the following definition
     in alphabetical order and all subparagraph numbering is appropriately
     updated:

          "Restricted Share Unit" means a contractual right awarded pursuant to
     Paragraph 7 of this Plan to receive an Ordinary Share (or its value in
     cash) that is forfeitable by the Participant until the completion of a
     specified period of future service, the achievement of pre-established
     performance objectives or until otherwise determined by the Committee.

3.   Paragraph 3 of the Plan is amended by replacing the first paragraph with
     the following:

          Shares Available Under Plan. Subject to adjustment as provided in
     Paragraph 9 of this Plan, the Ordinary Shares which may be issued under the
     Plan shall not exceed in the aggregate 1,750,000 shares, of which 1,000,000
     may be granted in the form of Restricted Shares or Restricted Share Units
     and 750,000 may be issued pursuant to Stock Options. Such shares may be
     shares of original issuance or treasury shares or a combination of the
     foregoing.

4.   Paragraph 3 of the Plan, subparagraph (a), is amended in its entirety to
     read as follows:

          Any Ordinary Shares which are subject to Awards under this Plan that
     are terminated unexercised, forfeited or surrendered or that expire for any
     reason (including, but not limited to, Ordinary Shares tendered to exercise
     outstanding Stock Options or shares tendered or withheld for taxes under
     any Award under this Plan) shall again be available for issuance under this
     Plan; provided that Ordinary Shares related to any such terminated,
     unexercised, forfeited, surrendered or expired Award may only be used in
     respect of Awards of the same type (i.e., shares related to forfeited Stock
     Options may be used to grant new Stock Options, forfeited Restricted Shares
     or Restricted Share Units may be used to grant new Restricted Shares or
     Restricted Share Units). As required by

<PAGE>

     the New York Stock Exchange listing standards, the portion of the foregoing
     provision that results in already issued Ordinary Shares being added back
     to the maximum number of Ordinary Shares when a Participant satisfies the
     Option Price by delivery of Ordinary Shares or when Ordinary Shares are
     withheld to satisfy a tax withholding obligation with respect to Restricted
     Shares or Restricted Share Units shall only be operative for a period of
     ten years from the most recent date the Plan was approved by the Company's
     shareholders in a manner satisfying the New York Stock Exchange listing
     standards.

5.   Paragraph 4 is amended in its entirety as follows:

          Individual Limitations on Awards. Notwithstanding anything in this
     Plan to the contrary, and subject to adjustment as provided in Paragraph 9
     of this Plan, no individual Participant shall be granted under this Plan
     (a) Stock Options for more than 250,000 Ordinary Shares, or (b) Restricted
     Shares or Restricted Share Units for more than 150,000 Ordinary Shares.

6.   Paragraph 7 is hereby amended in its entirety as follows:

          Restricted Shares and Restricted Share Units. The Committee may from
     time to time authorize grants to any Participant of Restricted Shares and
     Restricted Stock Units upon such terms and conditions as the Committee may
     determine in accordance with the provisions set forth below.

          (a) Each grant shall specify the number of Ordinary Shares to which it
     pertains, subject to the limitations set forth in Paragraphs 3 and 4 of
     this Plan.

          (b) Each grant shall specify the required period or periods (if any)
     of continuous service by the Participant with the Company or any Subsidiary
     and/or any performance or other conditions to be satisfied before the
     restrictions on the Restricted Shares or Restricted Share Units (or
     installments thereof) shall lapse; provided that, for Awards where the
     restrictions lapse based solely on continued service, the restriction
     period shall be at least three years. Any grant may provide for the earlier
     lapse of restrictions in the event of a Change in Control of the Company or
     in the event of any other similar transaction or event. Notwithstanding the
     generality of the foregoing, with respect to at least 750,000 of the
     1,000,000 Restricted Shares and Restricted Share Units that may be granted
     under the Plan and at least three-fourths (3/4) of any Restricted Share or
     Restricted Share Unit grant made to a Participant, the lapse of
     restrictions shall be contingent upon satisfaction of performance goals
     established by the Committee.

          (c) Restricted Shares shall be evidenced in such manner as the
     Committee may deem appropriate, including book-entry registration or
     issuance of one or more stock certificates. The Committee shall require
     that any stock certificates evidencing any Restricted Shares be held in the
     custody of the Secretary of the Company and/or bear a legend until the
     restrictions lapse, and that, as a condition of any Restricted Share Award,
     the Participant shall have delivered a stock power, endorsed in blank,
     relating to the

                                        2

<PAGE>

     Ordinary Shares covered by such Award. As a condition to grant, if required
     by applicable law or otherwise determined by the Committee, Participants
     may be required to pay a minimum purchase price.

          (d) Restricted Share Units represent a contractual right to receive
     the economic equivalent of an award of Restricted Shares. At the discretion
     of the Committee, Restricted Share Units may be settled in Ordinary Shares
     or the cash value of Ordinary Shares. No Ordinary Shares will be issued at
     the time an award of Restricted Share Units is made.

          (e) Unless otherwise determined by the Committee and except as
     provided in (f) below, Participants holding Restricted Shares may exercise
     full voting rights and other rights as a shareholder with respect to those
     shares prior to the lapse of restrictions. Participants holding Restricted
     Share Units shall not have any rights as a shareholder prior to the actual
     issuance of Ordinary Shares.

          (f) Unless otherwise determined by the Committee, Participants holding
     Restricted Shares or Restricted Share Units shall be entitled to receive,
     if and when distributed to the Company's shareholders generally, all
     dividends and other distributions paid with respect to those shares.

          (g) Each grant shall be evidenced by an Award Agreement.

          (h) To the extent the Restricted Shares or Restricted Share Units are
     designated as "performance-based compensation" under Section 162(m) of the
     Code, they shall be subject to the restrictions set forth in Paragraph 8 of
     this Plan.

7.   Paragraph 8 of the Plan is amended in its entirety to read as follows:

          Qualified Performance-Based Awards. The Committee may designate
     whether any Award of Restricted Shares or Restricted Share Units granted to
     an employee is intended to qualify as "performance-based compensation,"
     within the meaning of Section 162(m) of the Code.

          (a) The vesting of any Award of Restricted Shares or Restricted Share
     Units designated as intended to be performance-based compensation shall be,
     to the extent required by Section 162(m) of the Code, conditional upon the
     achievement of one or more of the following performance measures: total
     shareholder return, operating earnings, net earnings, return on equity,
     return on assets, return on capital, return on investment, gross income,
     net income, operating income, market share, combined ratio, level of
     expenses, sales, book value per share growth and/or revenue. Performance
     goals may be established on a Company-wide basis or with respect to one or
     more business units or divisions or Subsidiaries. Performance goals (which
     may include minimum, maximum and target levels of performance) with respect
     to such performance measures may be established at such levels and in such
     terms as the Committee may determine, in its discretion, including in

                                        3

<PAGE>

     absolute terms, as a goal relative to performance in prior periods, or as a
     goal compared to the performance of one or more comparable companies or an
     index covering multiple companies. When establishing performance goals for
     a performance period, the Committee may exclude any or all "extraordinary
     items" as determined under U.S. generally accepted accounting principles
     including, without limitation, the charges or costs associated with
     restructurings of the Company or any Subsidiary, discontinued operations,
     other unusual or non-recurring events or items, and the cumulative effects
     of accounting changes.

          (b) Awards of Restricted Shares or Restricted Share Units to a
     "covered employee" that are intended to be performance-based compensation
     under Section 162(m) of the Code shall also be subject to the following:

               (i)  No later than 90 days following the commencement of each
     performance period (or such other time as may be required or permitted by
     Section 162(m) of the Code), the Committee shall establish, in writing, (A)
     the target number of Restricted Shares or Restricted Share Units (B) the
     performance period and the performance goal or goals applicable to the
     performance period and (C) the formula that determines the number of
     Restricted Shares or Restricted Share Units that will vest upon
     satisfaction of such performance goal(s) over the performance period.

               (ii) Following the completion of each performance period, the
     Committee shall certify in writing the extent to which the applicable
     performance goals have been achieved and the number of Restricted Shares or
     Restricted Share Units, if any, that will vest for such performance period.

               (iii) In determining the number of Restricted Shares or
     Restricted Share Units that will vest for a given performance period,
     subject to any applicable Award Agreement, the Committee shall have the
     right to reduce (but not increase) the amount at a given level of
     performance to take into account additional factors that the Committee may
     deem relevant to the assessment of individual or corporate performance for
     the performance period.

     All provisions of the Plan not specifically mentioned in this Amendment
shall be considered modified to the extent necessary to be consistent with the
changes made in this Amendment.

                                        4SCOTTISH RE GROUP LIMITED
                     2004 EQUITY INCENTIVE COMPENSATION PLAN

                          Notice of Stock Option Grant

     You (the "Optionee") have been granted the following option to purchase
ordinary shares of Scottish Re Group Limited, a Cayman Islands company (the
"Company"), par value $0.01 per ordinary share ("Share"), pursuant to the
Scottish Re Group Limited 2004 Equity Incentive Compensation Plan (the "Plan"):

<TABLE>
<S>                                   <C>
  ------------------------------------- ------------------------------------------------------
  Name of Optionee:
  ------------------------------------- ------------------------------------------------------
  Total Number of Shares Subject to
  Option:
  ------------------------------------- ------------------------------------------------------
  Type of Option:                       Nonqualified Stock Option
  ------------------------------------- ------------------------------------------------------
  Option Price Per Share (i.e.,         $                     [Note: 110% of MVPS required
  exercise price):                      under the Plan for 1st 250,000 Plan options and any
                                        others granted before May 5, 2005]
  ------------------------------------- ------------------------------------------------------
  Date of Grant:
  ------------------------------------- ------------------------------------------------------
  Vesting Schedule:                     Subject to earlier vesting pursuant to the terms of
                                        the Plan and the attached Nonqualified Stock Option
                                        Agreement, the right to exercise this option shall
                                        vest as follows:

                                        o   1/3 on the first anniversary of the Date of
                                            Grant;
                                        o   1/3 on the second anniversary of the Date of
                                            Grant; and
                                        o   1/3 on the third anniversary of the Date of
                                            Grant.

  ------------------------------------- ------------------------------------------------------
  Expiration Date:                      10th Anniversary of Date of Grant

                                        The option may be subject to earlier expiration as
                                        set forth in Plan, the Award Grant Guidelines and
                                        the attached Agreement.
  ------------------------------------- ------------------------------------------------------
</TABLE>

By your signature and the signature of the Company's representative below, you
and the Company agree that this option is granted under and governed by the
terms and conditions of the Plan, the Award Grant Guidelines and the
Nonqualified Stock Option Agreement, all of which are attached to and made a
part of this document.

  Optionee:                                  Scottish Re Group Limited:

  __________________________________         By:_______________________________

  Date:_____________________________         Title:_____________________________

                                             Date:_____________________________

<PAGE>

                            SCOTTISH RE GROUP LIMITED
                     2004 EQUITY INCENTIVE COMPENSATION PLAN

                       Nonqualified Stock Option Agreement

          SECTION 1. GRANT OF OPTION.

               (a)  Option. On the terms and conditions set forth in the Notice
of Stock Option Grant (the "Notice") and this Nonqualified Stock Option
Agreement (the "Agreement"), the Company grants to the Optionee on the Date of
Grant the option (the "Option") to purchase at the Option Price the number of
Shares set forth in the Notice of Stock Option Grant. The Option is intended to
be a Nonqualified Stock Option and is intended to not provide for the deferral
of compensation under Section 409A of the Internal Revenue Code.

               (b)  Plan and Defined Terms. The Option is granted pursuant to
the Plan and the Award Grant Guidelines, copies of which the Optionee
acknowledges having received. All terms, provisions, and conditions applicable
to the Option set forth in the Plan and the Award Grant Guidelines and not set
forth herein are hereby incorporated by reference herein. To the extent any
provision hereof is inconsistent with a provision of the Plan, the provisions of
the Plan will govern. To the extent any provision hereof is inconsistent with a
provision of the Award Grant Guidelines, the provisions of this Agreement shall
govern. All capitalized terms that are used in the Notice of Stock Option Grant
or this Agreement and not otherwise defined therein or herein shall have the
meanings ascribed to them in the Plan and the Award Grant Guidelines.

          SECTION 2. RIGHT TO EXERCISE.

               The Option may be exercised, in whole or in part, prior to
expiration to the extent it is vested. The Option shall be exercised by written
notice to the Company, specifying the number of shares the Optionee desires to
purchase, together with provision for payment of the Option Price. Subject to
such limitations as the Committee may impose (including prohibition of one more
of the following payment methods), payment of the Option Price may be made by
(a) check payable to the order of the Company , (b) by tendering to Shares in
accordance with Section 8 of the Award Grant Guidelines , (c) by broker-assisted
exercise in accordance with Section 9 of the Award Grant Guidelines, (d) by such
other method as may be then permitted by the Committee, or (e) by a combination
of such methods.

               As a further condition precedent to the exercise of the Option,
the Optionee shall comply with all regulations and the requirements of any
regulatory authority having control of, or supervision over, the issuance of
Shares and in connection therewith shall execute any documents which the
Committee shall in its sole discretion deem necessary or advisable.

          SECTION 3. OTHER PRINCIPAL TERMS OF THE OPTION.

               (a)  Vesting, Forfeiture and Expiration. The vesting, forfeiture
and expiration of the Option shall be governed by the Notice and Section 4(c)(i)
and 4(d)(i) and other applicable provisions of the Award Grant Guidelines.

               (b)  Non-Transferability. The Option shall not be transferable
except by will or the laws of descent and distribution or as specifically
permitted by the Committee pursuant to Section 11 of the Plan and Section 4(e)
of the Award Grant Guidelines.

                                       -1-

<PAGE>

          SECTION 4. MISCELLANEOUS PROVISIONS.

               (a)  Tax Withholding. The Company may make such provisions as are
necessary for the withholding of all applicable taxes on the Option, in
accordance with Section 10 of the Plan and Section 7 of the Award Grant
Guidelines.

               (b)  Rights as a Stockholder. Neither the Optionee nor the
Optionee's transferee or representative shall have any rights as a stockholder
with respect to any Shares subject to this Option until the Option has been
exercised and Share certificates have been issued to the Optionee, transferee or
representative, as the case may be. Both the exercise of the Option hereunder
and the subsequent sale of any Shares shall be subject to all applicable
securities laws and Company policies, including but not limited to insider
trading policies and blackout periods. The Optionee acknowledges receipt of that
Prospectus for the Plan.

               (c)  Ratification of Actions. By accepting this Agreement, the
Optionee and each person claiming under or through the Optionee shall be
conclusively deemed to have indicated the Optionee's acceptance and ratification
of, and consent to, any action taken under the Plan or this Agreement and Notice
of Stock Option Grant by the Company, the Board, or the Committee.

               (d)  Notice. Any notice in writing to be served hereunder shall
be given personally to the Optionee or to the Chief Executive Officer of the
Company (as the case may be) or shall be couriered or posted by registered mail
to the Company (for the attention of its Chief Executive Officer) at its
principal executive office or to the Optionee at the address that he or she most
recently provided in writing to the Company. Any such notice sent by post shall
be deemed served three days after it is posted and in proving such service it
shall be sufficient to prove that the notice was properly addressed and put in
the post or couriered.

               (e)  No Employment Contract. Nothing contained in this Agreement
shall confer upon the Optionee any right with respect to continuance of
employment with the Company and its Subsidiaries, nor limit or affect in any
manner the right of a Subsidiary to terminate the employment or adjust the
compensation of the Optionee.

               (f)  Compliance with Law. The Company shall make reasonable
efforts to comply with all applicable securities laws; provided, however,
notwithstanding any other provision of this Agreement, the Option shall not be
exercisable if the exercise thereof would result in a violation of any such law.

               (g)  Relation to Other Benefits. Any economic or other benefit to
the Optionee under this Agreement shall not be taken into account in determining
any benefits to which the Optionee may be entitled under any profit-sharing,
retirement or other benefit or compensation plan maintained by any member of the
Group and shall not affect the amount of any life insurance coverage available
to any beneficiary under any life insurance plan covering employees of the
Company or any Subsidiary.

               (h)  Successors and Assigns. The provisions of this Agreement
shall inure to the benefit of, and be binding upon, the successors,
administrators, heirs, legal representatives and assigns of the Optionee, and
the successors and assigns of the Company.

               (i)  Choice of Law. This Agreement and the Notice of Stock Option
Grant shall be governed by, and construed in accordance with, the laws of the
State of New York, as such laws are applied to contracts entered into and
performed in such jurisdiction, without giving effect to the principles of
conflicts of laws thereof.

               (j)  Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                       -2-

<PAGE>

               (k)  Modification or Amendment. This Agreement may only be
modified or amended by written agreement executed by the parties hereto;
provided, however, that the adjustments permitted pursuant to Section 9 of the
Plan may be made without such written agreement.

               (l)  Severability. In the event any provision of this Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining provisions of this Agreement, and this Agreement
shall be construed and enforced as if such illegal or invalid provision had not
been included.

                                       -3-

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