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                                                                    EXHIBIT 10.3

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                            2002 SHARE INCENTIVE PLAN

1. PURPOSE OF THE PLAN

         The purpose of this Platinum 2002 Share Incentive Plan is to advance
the interests of the Company and its shareholders by attracting, retaining and
motivating key personnel upon whose judgment, initiative and effort the
successful conduct of the Company's operations is largely dependent. The Plan is
also intended to further align the interests of employees, officers and
directors with those of the shareholders by promoting the ownership of Common
Shares by these individuals. The Plan, as amended and restated herein, shall
become effective following the approval of the Company's shareholders at its
2004 annual meeting of shareholders.

2. DEFINITIONS

         Wherever the following capitalized terms are used in this Plan, they
shall have the meanings specified below:

         (a) "Award" means an award of an Option, Share Appreciation Right,
Restricted Share Award or Share Unit Award granted under the Plan.

         (b) "Award Agreement" means an agreement entered into between the
Company and a Participant setting forth the terms and conditions of an Award
granted to a Participant.

         (c) "Board" means the Board of Directors of the Company.

         (d) "Change in Control" shall have the meaning specified in Section 10
hereof.

         (e) "Code" means the Internal Revenue Code of 1986, as amended.

         (f) "Committee" means the Compensation Committee of the Board or any
other committee of the Board appointed by the Board to administer the Plan from
time to time.

         (g) "Common Shares" means the common shares of the Company, par value
$0.01 per share.

         (h) "Company" means Platinum Underwriters Holdings, Ltd., a Bermuda
corporation.

         (i) "Date of Grant" means the date on which an Award under the Plan is
made by the Committee, or such later date as the Committee may specify to be the
effective date of the Award.

         (j) "Dividend Equivalent Right" means the right of a Participant to
receive cash payments or Common Shares, as determined by the Committee, with
respect to dividends declared on a specified number of Common Shares during the
term of a Share Appreciation Right or a Share Unit Award.

         (k) "Effective Date" means the Effective Date of this Plan, as
described in Section 0 hereof.

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         (l) "Eligible Person" means any person who is an employee, officer,
director, agent, consultant or advisor of the Company or any Subsidiary, as
determined by the Committee, or any person who is determined by the Committee to
be a prospective employee, officer, director, insurance agent, consultant or
advisor of the Company or any Subsidiary.

         (m) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         (n) "Fair Market Value" of Common Shares as of a given date means the
closing sales price of Common Shares on the New York Stock Exchange or other
exchange or securities market as reflected on the composite index on the trading
day immediately preceding the date as of which Fair Market Value is to be
determined, or in the absence of any reported sales of Common Shares on such
date, on the first preceding date on which any such sale shall have been
reported. If the Common Shares are not listed on the New York Stock Exchange or
other exchange or securities market on the date as of which Fair Market Value is
to be determined, the Board shall determine in good faith the Fair Market Value
in whatever manner it considers appropriate.

          (o) "Incentive Option" means an Award under Section 0 hereof to
purchase Common Shares that is intended to qualify as an "incentive stock
option" under Section 422 of the Code and the Treasury Regulations thereunder.

         (p) "Nonqualified Option" means an Award under Section 0 hereof to
purchase Common Shares that is not an Incentive Option.

         (q) "Option" means an Incentive Option or a Nonqualified Option granted
under Section 0 hereof.

         (r) "Participant" means any Eligible Person who holds an outstanding
Award under the Plan.

         (s) "Plan" means this Platinum Underwriters Holdings, Ltd. 2002 Share
Incentive Plan as set forth herein, as amended and restated herein, and as it
may be amended from time to time.

         (t) "Restricted Share Award" means an Award under Section 0 hereof
entitling a Participant to Common Shares that are nontransferable and subject to
forfeiture until specific conditions established by the Committee are satisfied.

         (u) "Share Appreciation Right" or "SAR" means an Award under Section 0
hereof entitling a Participant to receive an amount, representing the difference
between the base price per share of the right and the Fair Market Value of a
Common Share on the date of exercise.

         (v) "Share Unit Award" means an Award under Section 0 hereof entitling
a Participant to a payment at the end of a vesting period of a unit value based
on the Fair Market Value of a Common Share.

         (w) "Subsidiary" means an entity (whether or not a corporation) that is
wholly or majority owned or controlled, directly or indirectly, by the Company,
or any other affiliate of the Company that is so designated, from time to time,
by the Committee; provided, however, that with respect to Incentive Options, the
term "Subsidiary" shall include only an entity that qualifies under Section
424(f) of the Code as a "subsidiary corporation" with respect to the Company.

3. COMMON SHARES SUBJECT TO THE PLAN

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         3.1      Number of Shares. Subject to the following provisions of this
Section 0, the aggregate number of Common Shares that may be issued pursuant to
all Awards under the Plan is 6,000,000 Common Shares. The Common Shares to be
delivered under the Plan will be made available from authorized but unissued
Common Shares or from reacquired shares. To the extent that any Award payable in
Common Shares is forfeited, cancelled, returned to the Company for failure to
satisfy vesting requirements or upon the occurrence of other forfeiture events,
or otherwise terminates without payment being made thereunder, the Common Shares
covered thereby will no longer be charged against the foregoing maximum share
limitations and may again be made subject to Awards under the Plan pursuant to
such limitations. In addition, any Common Shares exchanged by an Optionee as
full or partial payment to the Company of the exercise price or tax withholding
upon exercise of an Option shall be added to the number of Common Shares
available for issuance under the Plan from time to time. The number of Common
Shares that may be issued and sold under Incentive Options shall be limited to
6,000,000 shares, without giving effect to the immediately preceding sentence.

         3.2      Adjustments. If there shall occur any recapitalization,
reclassification, share dividend, share split, reverse share split, or other
distribution with respect to the Common Shares, or other change in corporate
structure affecting the Common Shares, the Committee may, in the manner and to
the extent that it deems appropriate and equitable to the Participants and
consistent with the terms of this Plan, cause an adjustment to be made in (i)
the maximum number and kind of shares provided in Section 0 hereof, (ii) the
maximum number and kind of shares set forth in Sections 0, 0 and 0 hereof, (iii)
the number and kind of shares of Common Shares, share units, or other rights
subject to then outstanding Awards, (iv) the price for each share or unit or
other right subject to then outstanding Awards, or (v) any other terms of an
Award that are affected by the event. Notwithstanding the foregoing, in the case
of Incentive Options, any such adjustments shall be made in a manner consistent
with the requirements of Section 424(a) of the Code. In the event of any merger,
consolidation, reorganization, amalgamation or similar corporate event in which
Common Shares are to be exchanged for payment of cash (the "Cash
Consideration"), the Committee may, in its discretion, (i) make equitable
adjustments as provided above, or (ii) cancel any outstanding Award in exchange
for payment in cash, if any, equal to the excess of the Cash Consideration for
the shares underlying such Award over the exercise, base or purchase price for
such shares.

4. ADMINISTRATION OF THE PLAN

         4.1      Committee Members. The Plan shall be administered by a
Committee comprised of no fewer than two members of the Board. Solely to the
extent deemed necessary or advisable by the Board, each Committee member shall
satisfy the requirements for (i) an "independent director" under rules adopted
by the New York Stock Exchange, (ii) a "nonemployee director" for purposes of
such Rule 16b-3 under the Exchange Act, and (iii) an "outside director" under
Section 162(m) of the Code. The Board shall also have the authority to exercise
the powers and duties of the Committee under the Plan. The Committee shall have
such powers and authority as may be necessary or appropriate for the Committee
to carry out its functions as described in the Plan. No member of the Committee
shall be liable for any action or determination made in good faith by the
Committee with respect to the Plan or any Award thereunder.

         4.2      Discretionary Authority. Subject to the express limitations of
the Plan, the Committee shall have authority in its discretion to determine the
Eligible Persons to whom, and the time or times at which, Awards may be granted,
the number of shares, units or other rights subject to each Award, the exercise,
base or purchase price of an Award (if any), the time or times at which an Award
will become vested, exercisable or payable, the performance criteria,
performance goals and other conditions of an Award, the duration of the Award,
and all other terms of the Award. The Committee shall also have discretionary
authority to interpret the Plan, to make all factual determinations under the
Plan, and to make all other determinations necessary or advisable for Plan
administration. The Committee may

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prescribe, amend, and rescind rules and regulations relating to the Plan. All
interpretations, determinations, and actions by the Committee shall be final,
conclusive, and binding upon all parties.

         4.3      Delegation of Authority. The Committee shall have the right,
from time to time, to delegate to one or more officers of the Company the
authority of the Committee to grant and determine the terms and conditions of
Awards awarded under the Plan, subject to such limitations as the Committee
shall determine; provided, however, that no such authority may be delegated with
respect to Awards awarded to any member of the Board or any Participant who the
Committee determines may be covered by Rule 16b under the Exchange Act or
Section 162(m) of the Code.

         4.4      Grants to Nonemployee Directors. Awards to nonemployee
directors under the Plan shall be approved by the Board. With respect to awards
to such directors, all rights, powers and authorities vested in the Committee
under the Plan shall instead be exercised by the Board, and all provisions of
the Plan relating to the Committee shall be interpreted in a manner consistent
with the foregoing by treating any such reference as a reference to the Board
for such purpose.

5. ELIGIBILITY AND AWARDS

         All Eligible Persons are eligible to be designated by the Committee to
receive an Award under the Plan. The Committee has authority, in its sole
discretion, to determine and designate from time to time those Eligible Persons
who are to be granted Awards, the types of Awards to be granted and the number
of shares or units subject to the Awards that are granted under the Plan. Each
Award will be evidenced by an Award Agreement as described in Section 0 hereof.

6. SHARE OPTIONS

         6.1      Grant of Option. An Option may be granted to any Eligible
Person selected by the Committee. Subject to the applicable provisions of
Section 422 of the Code, each Option shall be designated, in the discretion of
the Committee, as an Incentive Option or a Nonqualified Option. The maximum
number of Common Shares that may be granted under Options to any Participant
during any calendar year shall be limited to 1,000,000 shares (subject to
adjustment as provided in Section 0 hereof).

         6.2      Exercise Price. The exercise price under any Option shall be
determined by the Committee; provided, however, that the exercise price per
share under an Option shall not be less than 100 percent of the Fair Market
Value per share of the Common Shares on the Date of Grant.

         6.3      Vesting; Term of Option. The Committee, in its sole
discretion, shall prescribe the time or times at which, or the conditions upon
which, an Option or portion thereof shall become vested and exercisable, and may
accelerate the exercisability of any Option at any time. The period during which
a vested Option may be exercised shall be ten years from the Date of Grant,
unless a shorter exercise period is specified by the Committee in an Award,
subject to such limitations as may apply under an Award relating to the
termination of a Participant's employment or other service with the Company or
any Subsidiary or any other cancellation of an Option in accordance with this
Plan or an Award Agreement.

         6.4      Option Exercise; Withholding. Subject to such terms and
conditions as shall be specified in an Award, an Option may be exercised in
whole or in part at any time during the term thereof by written notice to the
Company, together with payment of the aggregate exercise price therefor. Payment
of the exercise price shall be made, at the discretion of the Committee as
specified in the Award Agreement, by (i) payment in cash or cash equivalent
acceptable to the Committee, (ii) payment in Common Shares that have been held
by the Participant for at least six months (or such other period as the
Committee may deem appropriate for purposes of applicable accounting rules),
valued at the Fair Market

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Value of such shares on the date of exercise, (iii) a broker-assisted "cashless
exercise," (iv) a combination of the methods described above, or (v) such other
method as may be approved by the Committee and set forth in the Award Agreement.
In addition to and at the time of payment of the exercise price, the Participant
shall pay to the Company the full amount of any and all applicable income tax
and employment tax amounts required to be withheld in connection with such
exercise, payable under such of the methods described above for the payment of
the exercise price of the Options as may be approved by the Committee.

         6.5      Limited Transferability of Nonqualified Options. All Options
shall be nontransferable except (i) upon the Participant's death, by the
Participant's will or the laws of descent and distribution or (ii) in the case
Nonqualified Options only, on a case-by-case basis as may be approved by the
Committee in its discretion, in accordance with the terms provided below. An
award for a Nonqualified Option may provide that the Participant shall be
permitted to, during his or her lifetime and subject to the prior approval of
the Committee at the time of proposed transfer, transfer all or part of the
Option to the Participant's family member (as defined in the Award Agreement in
a manner consistent with the requirements for the Form S-8 registration
statement, if applicable). The transfer of a Nonqualified Option may be subject
to such other terms and conditions as the Committee may in its discretion impose
from time to time. Subsequent transfers of an Option shall be prohibited other
than by will or the laws of descent and distribution upon the death of the
transferee.

         6.6      Additional Rules for Incentive Options.

         (a) Eligibility. An Incentive Option may only be granted to an Eligible
Person who is considered an employee of the Company or any Subsidiary for
purposes of Treasury Regulations Section 1.421-7(h).

         (b) Annual Limits. No Incentive Option shall be granted to a
Participant as a result of which the aggregate Fair Market Value (determined as
of the Date of Grant) of the share with respect to which Incentive Options are
exercisable for the first time in any calendar year under the Plan and any other
share option plans of the Company, any Subsidiary, or any parent Company, would
exceed $100,000, determined in accordance with Section 422(d) of the Code. This
limitation shall be applied by taking Options into account in the order in which
granted.

         (c) Termination of Employment. An Award of an Incentive Option may
provide that such Option may be exercised not later than 3 months following
termination of employment of the Participant with the Company and all
Subsidiaries, or not later than one year following death and disability, as and
to the extent determined by the Committee to be consistent with the requirements
of Section 422 of the Code and Treasury Regulations thereunder.

         (d) Other Terms and Conditions; Nontransferability. Any Incentive
Option granted hereunder shall contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as are deemed necessary or desirable
by the Committee, which terms, together with the terms of this Plan, shall be
intended and interpreted to cause such Incentive Option to qualify as an
incentive stock option under Section 422 of the Code. Such terms shall include,
if applicable, limitations on Incentive Options granted to ten-percent owners of
the Company. An Award Agreement for an Incentive Option may provide that such
Option shall be treated as a Nonqualified Option to the extent that certain
requirements applicable to incentive options under the Code shall not be
satisfied. An Incentive Option shall by its terms be nontransferable otherwise
than by will or by the laws of descent and distribution, and shall be
exercisable during the lifetime of a Participant only by such Participant.

         (e) Disqualifying Dispositions. If Common Shares acquired by exercise
of an Incentive Option are disposed of within two years following the Date of
Grant or one year following the issuance of such

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shares to the Participant upon exercise, the Participant shall, promptly
following such disposition, notify the Company in writing of the date and terms
of such disposition and provide such other information regarding the disposition
as the Committee may reasonably require.

7. SHARE APPRECIATION RIGHTS

         7.1      Grant of SARs. A Share Appreciation Right granted to a
Participant is an Award in the form of a right to receive, upon surrender of the
right but without other payment, an amount based on appreciation in the Fair
Market Value of Common Shares over a base price established for the Award,
exercisable at such time or times and upon conditions as may be approved by the
Committee. The maximum number of shares of Common Shares that may be subject to
SARs granted to any Participant during any calendar year shall be limited to
1,000,000 shares (subject to adjustment as provided in Section 0 hereof). An SAR
may be granted, at the discretion of the Committee, together with a Dividend
Equivalent Right with respect to the same number of Common Shares.

         7.2      Freestanding SARs. A Share Appreciation Right may be granted
without any related Option, and in such case, will be exercisable as determined
by the Committee, but in no event after 10 years from the Date of Grant. The
base price of an SAR granted without any related Option shall be determined by
the Committee in its sole discretion; provided, however, that the base price per
share of any such freestanding SAR shall not be less than 100 percent of the
Fair Market Value of the Common Shares on the Date of Grant.

         7.3      Tandem SARs. A Share Appreciation Right may be granted in
connection with an Option, either at the time of grant or at any time thereafter
during the term of the Option. An SAR granted in connection with an Option will
entitle the holder, upon exercise, to surrender such Option or any portion
thereof to the extent unexercised, with respect to the number of shares as to
which such SAR is exercised, and to receive payment of an amount computed as
described in Section 0 hereof. Such Option will, to the extent and when
surrendered, cease to be exercisable. An SAR granted in connection with an
Option hereunder will have a base price per share equal to the per share
exercise price of the Option, will be exercisable at such time or times, and
only to the extent, that a related Option is exercisable, and will expire no
later than the related Option expires.

         7.4      Payment of SARs. An SAR will entitle the holder, upon exercise
of the SAR, to receive payment of an amount determined by multiplying: (i) the
excess of the Fair Market Value of a the Common Shares on the date of exercise
of the SAR over the base price of such SAR, by (ii) the number of shares as to
which such SAR is exercised. Payment of the amount determined under the
foregoing may be made, in the discretion of the Committee, in cash, in Common
Shares valued at their Fair Market Value on the date of exercise, or in a
combination of cash and Common Shares.

8. RESTRICTED SHARE AWARDS

         8.1      Grant of Restricted Share Awards. A Restricted Share Award to
a Participant represents Common Shares that are issued subject to such
restrictions on transfer and other incidents of ownership and such forfeiture
conditions as the Committee may determine. The Committee may, in connection with
any Restricted Share Award, require the payment of a specified purchase price.
The maximum number of Common Shares that may be subject to Restricted Share
Awards granted to all Participants during the term of the Plan shall be limited
to 1,000,000 shares (subject to adjustment as provided in Section 0 hereof).

         8.2      Vesting Requirements. The restrictions imposed on shares
granted under a Restricted Share Award shall lapse in accordance with the
vesting requirements specified by the Committee in the

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Award Agreement. Such vesting requirements may be based on the continued
employment of the Participant with the Company or its Subsidiaries for a
specified time period or periods, and may also be based on the attainment of
specified business goals or measures established by the Committee in its sole
discretion.

         8.3      Restrictions. Shares granted under any Restricted Share Award
may not be transferred, assigned or subject to any encumbrance, pledge, or
charge until all applicable restrictions are removed or have expired, unless
otherwise allowed by the Committee. The Committee may require the Participant to
enter into an escrow agreement providing that the certificates representing the
shares granted or sold under a Restricted Share Award will remain in the
physical custody of an escrow holder until all restrictions are removed or have
expired. Failure to satisfy any applicable restrictions shall result in the
subject shares of the Restricted Share Award being forfeited and returned to the
Company, with any purchase price paid by the Participant to be refunded, unless
otherwise provided by the Committee. The Committee may require that certificates
representing the shares granted under a Restricted Share Award bear a legend
making appropriate reference to the restrictions imposed.

         8.4      Rights as Shareholder. Subject to the foregoing provisions of
this Section 0 and the applicable Award Agreement, the Participant will have all
rights of a shareholder with respect to the shares granted to him under a
Restricted Share Award, including the right to vote the shares and receive all
dividends and other distributions paid or made with respect thereto, unless the
Committee determines otherwise at the time the Restricted Share Award is
granted.

         8.5      Section 83(b) Election. The Committee may provide in an Award
Agreement that the Restricted Share Award is conditioned upon the Participant's
refraining from making an election with respect to the Award under Section 83(b)
of the Code. Irrespective of whether an Award is so conditioned, if a
Participant makes an election pursuant to Section 83(b) of the Code with respect
to a Restricted Share Award, the Participant shall be required to promptly file
a copy of such election with the Company.

9. SHARE UNIT AWARDS

         9.1      Grant of Share Unit Awards. A Share Unit Award is an Award to
a Participant of a number of hypothetical share units with respect to Common
Shares, with an initial value based on the Fair Market Value of the Common
Shares on the Date of Grant. A Share Unit Award shall be subject to such
restrictions and conditions as the Committee shall determine. A Share Unit Award
may be granted, at the discretion of the Committee, together with a Dividend
Equivalent Right with respect to the same number of Common Shares.

         9.2      Vesting of Share Unit Awards. The Committee may determine and
provide in the Award Agreement any installment or other vesting period of a
Share Unit Award. Vesting requirements may be based on the continued employment
of the Participant with the Company or its Subsidiaries for a specified time
period or periods. Vesting requirements may also be based on the attainment of
specified business goals or measures established by the Committee in its sole
discretion. Share Units may also be granted on a fully vested basis, with a
deferred payment date.

         9.3      Payment of Share Unit Awards. A Share Unit Award shall become
payable to a Participant at the time or times determined by the Committee and
set forth in the Award Agreement, which may be upon or following the vesting of
an Award. The payment with respect to each share unit under a Share Unit Award
shall be determined by reference to the Fair Market Value of one Common Share on
each applicable payment date. Payment may be made, at the discretion of the
Committee, in cash or in Common Shares, or in a combination thereof, subject to
applicable tax withholding.

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         9.4      No Rights as Stockholder. The Participant shall not have any
rights as a shareholder with respect to the Common Shares subject to a Share
Unit Award until such time as any Common Shares are delivered to the Participant
pursuant to the terms of the Award.

10. CHANGE IN CONTROL

         10.1     Effect of Change in Control. The Committee may, in an Award
Agreement, provide for the effect of a "Change in Control" of the Company (as
defined below) on an Award. Such provisions may include any one or more of the
following: (i) the acceleration or extension of time periods for purposes of
exercising, vesting in, or realizing gain from any Award, (ii) the elimination
or modification of performance or other conditions related to the payment or
other rights under an Award, (iii) provision for the cash settlement of an Award
for an equivalent cash value, as determined by the Committee, or (iv) such other
modification or adjustment to an Award as the Committee deems appropriate to
maintain and protect the rights and interests of Participants upon or following
a Change in Control. Unless otherwise provided by the Committee and set forth in
the Award Agreement, upon a Change in Control, (i) each outstanding Option and
Share Appreciation Right, to the extent that it shall not otherwise have become
vested and exercisable, shall automatically become fully and immediately vested
and exercisable, without regard to any otherwise applicable vesting requirement,
(ii) any restricted period in effect shall automatically terminate as to all
Common Shares awarded pursuant to a Restricted Share Award, and (iii) each
outstanding Share Unit Award shall become immediately and fully vested and
payable.

         10.2     Definition of Change in Control. For purposes hereof, a
"Change in Control" of the Company shall mean:

                  (i)      an acquisition subsequent to the Effective Date
         hereof by any individual, entity or group (within the meaning of
         Section 13(d)(3) or 14(d)(2) of the Exchange Act (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of fifty percent (50%) or more of either (A)
         the then outstanding Common Shares or (B) the combined voting power of
         the then outstanding voting securities of the Company entitled to vote
         generally in the election of directors; excluding, however, the
         following: (1) any acquisition directly from the Company, other than an
         acquisition by virtue of the exercise of a conversion privilege unless
         the security being so converted was itself acquired directly from the
         Company, (2) any acquisition by the Company and (3) any acquisition by
         an employee benefit plan (or related trust) sponsored or maintained by
         the Company or any Subsidiary;

                  (ii)     during any period of two (2) consecutive years (not
         including any period prior to the Effective Date), individuals who at
         the beginning of such period constitute the Board (and any new
         directors whose election by the Board or nomination for election by the
         Company's shareholders was approved by a vote of at least two-thirds
         (2/3) of the directors then still in office who either were directors
         at the beginning of the period or whose election or nomination for
         election was so approved) cease for any reason (except for death,
         disability or voluntary retirement) to constitute a majority thereof;

                  (iii)    the consummation of a merger, consolidation,
         reorganization, amalgamation or similar corporate transaction which has
         been approved by the shareholders of the Company, whether or not the
         Company is the surviving Company in such transaction, other than a
         merger, consolidation, reorganization or amalgamation that would result
         in the voting securities of the Company outstanding immediately prior
         thereto continuing to represent (either by remaining outstanding or by
         being converted into voting securities of the surviving entity) at
         least fifty percent (50%) of the combined voting power of the voting
         securities of the Company (or such

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         surviving entity) outstanding immediately after such merger,
         consolidation, reorganization, amalgamation or similar corporate
         transaction;

                  (iv)     the approval by the shareholders of the Company of
         (A) the sale or other disposition of all or substantially all of the
         assets of the Company or (B) a complete liquidation or dissolution of
         the Company; or

                  (v)      adoption by the Board of a resolution to the effect
         that any person has acquired effective control of the business and
         affairs of the Company.

11. AWARD AGREEMENTS

         11.1     Form of Agreement. Each Award under this Plan shall be
evidenced by an Award Agreement in a form approved by the Committee setting
forth the number of Common Shares, units or other rights (as applicable) subject
to the Award, the exercise, base, or purchase price (if any) of the Award, the
time or times at which an Award will become vested, exercisable or payable and
the duration of the Award. The Award Agreement shall also set forth other
material terms and conditions applicable to the Award as determined by the
Committee consistent with the limitations of this Plan. Award Agreements
evidencing Incentive Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 422 of the Code.

         11.2     Forfeiture Events. The Committee may specify in an Award that
the Participant's rights, payments and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events shall include, but
shall not be limited to, termination of employment for cause, violation of
material Company policies, breach of noncompetition, confidentiality or other
restrictive covenants that may apply to the Participant, or other conduct by the
Participant that is detrimental to the business or reputation of the Company.

12. GENERAL PROVISIONS

         12.1     No Assignment or Transfer; Beneficiaries. Except as provided
in Section 0 hereof, Awards under the Plan shall not be assignable or
transferable, except by will or by the laws of descent and distribution, and
during the lifetime of a Participant, the Award shall be exercised only by such
Participant or by his guardian or legal representative. Notwithstanding the
foregoing, the Committee may provide in the terms of an Award Agreement that the
Participant shall have the right to designate a beneficiary or beneficiaries who
shall be entitled to any rights, payments or other specified benefits under an
Award following the Participant's death.

         12.2     Deferrals of Payment. Notwithstanding any other provisions of
the Plan, the Committee may permit a Participant to defer the receipt of payment
of cash or delivery of Common Shares that would otherwise be due to the
Participant by virtue of the exercise of a right or the satisfaction of vesting
or other conditions with respect to an Award. If any such deferral is to be
permitted by the Committee, the Committee shall establish the rules and
procedures relating to such deferral, including, without limitation, the period
of time in advance of payment when an election to defer may be made, the time
period of the deferral and the events that would result in payment of the
deferred amount, the interest or other earnings attributable to the deferral and
the method of funding, if any, attributable to the deferred amount.

         12.3     Rights as Shareholder. A Participant shall have no rights as a
holder of Common Shares with respect to any unissued securities covered by an
Award until the date the Participant becomes the

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holder of record of such securities. Except as provided in Section 0 hereof, no
adjustment or other provision shall be made for dividends or other shareholder
rights, except to the extent that the Award Agreement provides for a Dividend
Equivalent Right, or otherwise provides for dividend payments or similar
economic benefits.

         12.4     Employment or Service. Nothing in the Plan, in the grant of
any Award or in any Award Agreement shall confer upon any Eligible Person the
right to continue in the capacity in which he is employed by, or otherwise
serves, the Company or any Subsidiary.

         12.5     Securities Laws. No Common Shares will be issued or
transferred pursuant to an Award unless and until all then applicable
requirements imposed by federal and state securities and other laws, rules and
regulations and by any regulatory agencies having jurisdiction, and by any
exchanges upon which the Common Shares may be listed, have been fully met. As a
condition precedent to the issuance of shares pursuant to the grant or exercise
of an Award, the Company may require the Participant to take any reasonable
action to meet such requirements. The Committee may impose such conditions on
any Common Shares issuable under the Plan as it may deem advisable, including,
without limitation, restrictions under the Securities Act of 1933, as amended,
under the requirements of any exchange upon which such shares of the same class
are then listed, and under any blue sky or other securities laws applicable to
such shares.

         12.6     Tax Withholding. The Participant shall be responsible for
payment of any taxes or similar charges required by law to be withheld from an
Award or an amount paid in satisfaction of an Award, which shall be paid by the
Participant on or prior to the payment or other event that results in taxable
income in respect of an Award. The Award Agreement shall specify the manner in
which the withholding obligation shall be satisfied with respect to the
particular type of Award.

         12.7     Unfunded Plan. The adoption of this Plan and any setting aside
of cash amounts or Common Shares by the Company with which to discharge its
obligations hereunder shall not be deemed to create a trust or other funded
arrangement. The benefits provided under this Plan shall be a general, unsecured
obligation of the Company payable solely from the general assets of the Company,
and neither a Participant nor the Participant's permitted transferees or estate
shall have any interest in any assets of the Company by virtue of this Plan,
except as a general unsecured creditor of the Company. Notwithstanding the
foregoing, the Company shall have the right to implement or set aside funds in a
grantor trust, subject to the claims of the Company's creditors, to discharge
its obligations under the Plan.

         12.8     Section 162(m) Compliance. Awards of Options and Share
Appreciation Rights under the Plan may be granted in a manner that complies with
the requirements for "performance-based" compensation under Section 162(m) of
the Code. Restrictive Share Awards and Share Unit Awards may be granted in
compliance with such requirements by making such Awards jointly pursuant to the
terms of this Plan and the Company's "Section 162(m) Performance Incentive Plan"
(or any successor plan).

         12.9     Other Compensation and Benefit Plans. The adoption of the Plan
shall not affect any other share incentive or other compensation plans in effect
for the Company or any Subsidiary, nor shall the Plan preclude the Company from
establishing any other forms of share incentive or other compensation for
employees of the Company or any Subsidiary. The amount of any compensation
deemed to be received by a Participant pursuant to an Award shall not constitute
compensation with respect to which any other employee benefits of such
Participant are determined, including, without limitation, benefits under any
bonus, pension, profit sharing, life insurance or salary continuation plan,
except as otherwise specifically provided by the terms of such plan.

                                       10

<PAGE>

         12.10    Plan Binding on Transferees. The Plan shall be binding upon
the Company, its transferees and assigns, and the Participant, his executor,
administrator and permitted transferees and beneficiaries.

         12.11    Construction and Interpretation. Whenever used herein, nouns
in the singular shall include the plural, and the masculine pronoun shall
include the feminine gender. Headings of Sections hereof are inserted for
convenience and reference and constitute no part of the Plan.

         12.12    Severability. If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any court of law
in any jurisdiction, the remaining provisions hereof and thereof shall be
severable and enforceable in accordance with their terms, and all provisions
shall remain enforceable in any other jurisdiction.

         12.13    Fractional Shares. No fractional shares shall be issued or
delivered pursuant to this Pan or any Award. The Committee shall determine
whether cash, Common Shares, Share Options or other property shall be issued or
paid in lieu of fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

         12.14    Other Jurisdictions. The Committee may adopt, amend and
terminate such arrangements and grant such Awards, not inconsistent with the
intent of the Plan, as it may deem necessary or desirable to comply with or take
advantage of tax, securities, regulatory or other laws of other jurisdictions
with respect to Participants who are subject to such laws. The terms and
conditions of such Awards may vary from the terms and conditions that would
otherwise be required by the Plan solely to the extent the Committee deems
necessary for such purpose.

         12.15    Governing Law. The Plan and all rights hereunder shall be
subject to and interpreted in accordance with the laws of the State of New York,
without reference to the principles of conflicts of laws, and to applicable
federal securities laws.

13. EFFECTIVE DATE, TERMINATION AND AMENDMENT

         13.1     Effective Date; Shareholder Approval. The Plan, as amended and
restated herein, shall become effective following its adoption by the Board upon
the date of its approval by the Company's shareholders at the 2004 annual
meeting of shareholders.

         13.2     Amendment. The Board may at any time and from time to time and
in any respect, amend or modify the Plan; provided, however, that the Board may
seek the approval of any amendment or modification by the Company's shareholders
to the extent it deems necessary or advisable in its sole discretion for
purposes of compliance with Section 162(m) or Section 422 of the Code, the
listing requirements of the New York Stock Exchange or other exchange or
securities market or for any other purpose. No amendment or modification of the
Plan shall adversely affect any Award theretofore granted without the consent of
the Participant or the permitted transferee of the Award.

         13.3     Termination. The Plan shall terminate on the date immediately
preceding the tenth anniversary of the date it become effective in accordance
with Section 13.1 hereof. The Board may, in its sole discretion and at any
earlier date, terminate the Plan. Notwithstanding the foregoing, no termination
of the Plan shall adversely affect any Award theretofore granted without the
consent of the Participant or the permitted transferee of the Award.

                                       11

<PAGE>

                                 SCHEDULE TO THE
                      PLATINUM UNDERWRITERS HOLDINGS, LTD.
                 2002 SHARE INCENTIVE PLAN (THE "U.K. SUB-PLAN")

This Schedule (the "UK Sub-Plan") shall require Inland Revenue approval. It
shall be read in conjunction with the provisions of the Platinum Underwriters
Holdings, Ltd. 2002 Share Incentive Plan (the "Plan"), but shall vary from that
Plan as follows:

SECTION 1 - PURPOSE OF THE PLAN

The purpose of the UK Sub-Plan is to enable tax advantaged Options to be granted
to Eligible Persons (as defined below) in the United Kingdom.

SECTION 2 - DEFINITIONS

The following definitions shall, where applicable, either be inserted as an
additional definition, amend or shall completely replace the definition
contained in the Plan.

"ACT" means the Income Tax (Earnings and Pensions) Act 2003 of the United
Kingdom.

"ASSOCIATED COMPANY" shall have the meaning assigned to it in paragraph 35(1) of
Schedule 4 to the Act.

"COMMON SHARES" means the common shares of the Company, par value $0.01 per
share which comply with the provisions of paragraphs 16 to 20 of Schedule 4 to
the Act.

"CONTROL" for the purposes of the UK Sub-Plan, has the meaning given to it by
Section 719 of the Act.

"ELIGIBLE PERSON" means an employee of a participating company, excluding (i) an
employee who is a director of a participating company if he or she is required
to devote to his or her duties less than 25 hours per week (excluding meal
breaks), and (ii) any employee or director who is precluded by paragraph 9 of
Schedule 4 of the Act (material interests) from participating in the UK
Sub-Plan.

"FAIR MARKET VALUE" for the purposes of this UK Sub-Plan, shall have the last
two sentences in the definition deleted and replaced with the following:

"If the Common Shares are not listed on the Stock Exchange, the market value of
a Common Share determined in accordance with the provisions of part VIII
Taxation of Chargeable Gains Act 1992 of the United Kingdom and agreed for the
purposes of the UK Sub-Plan with Shares Valuation of the Inland Revenue on or
before that date.

Where necessary, the market value of a Common Share shall be converted from US
dollars into pound sterling at the closing exchange rate on the trading day
prior to the Date of Grant taken from the Wall Street Journal."

"INLAND REVENUE" means the Board of Inland Revenue of the United Kingdom.

"NIC" means National Insurance Contributions.

"OPTION" means a Nonqualified Option granted under the UK Sub-Plan to an
Eligible Person to acquire Common Shares in accordance with the UK Sub-Plan as
evidenced by the issue of an Award Agreement.

                                       12

<PAGE>

"STOCK EXCHANGE" means the New York Stock Exchange (or such successor
organisation).

"SUBSIDIARY" means a company which is both under the Control of the Company and
is a subsidiary of the Company within the meaning of section 736 of the
Companies Act 1985.

Also, the definitions of "Incentive Stock Option", "Restricted Share Award",
"Share Appreciation Right" and "Share Unit Award" shall not apply for the
purposes of this UK Sub-Plan.

SECTIONS DISAPPLIED FROM THE PLAN

1.       Sections 4.4, 6.4 (ii), (iv) and (v), and Sections 6.5, 6.6, 6.7, 7, 8,
         9, 10.1 (iii), 12.1, 12.2 and of 12.6 the Plan shall not apply for the
         purposes of this UK Sub-Plan. The final sentence of Section 3.2,
         beginning "In the event of any merger", shall not apply for the
         purposes of this UK Sub-Plan.

SHARE OPTIONS (SECTION 6)

2.       The companies participating in the UK Sub-Plan are the Company and all
         Subsidiaries which have been nominated by the Committee to participate
         for the time being in the UK Sub-Plan.

3.       The number of Common Shares over which an Option may be granted to any
         Eligible Person shall be limited and take effect so that the aggregate
         Fair Market Value at the relevant dates of grant of Common Shares over
         which Options have been granted and are outstanding at any time under
         the UK Sub-Plan and under any other Inland Revenue approved
         discretionary share option plan operated by the Company or by any
         Associated Company shall not exceed (pound)30,000 (or such other amount
         as may from time to time be permitted under paragraph 6(1) of Schedule
         4 to the Act).

4.       If the Committee grants Options subject to additional terms and
         conditions, such conditions must be stated at the time the Option is
         granted. Any performance conditions must be objective and may be waived
         or amended if an event happens which causes the Committee, acting
         fairly and reasonably, to consider that the performance conditions
         could not be fairly or reasonably met, provided that any amended
         performance condition should be no more difficult to satisfy than the
         original condition.

5.       An Option shall be personal to the Participant and shall not be
         transferable.

6.       Upon the grant of an Option the Company shall issue to each Participant
         an Award Agreement setting out:

         (a)      the Date of Grant of the Option;

         (b)      the number of Common Shares subject to the Option;

         (c)      any additional terms and conditions related to the exercise of
                  the Option;

                                       13

<PAGE>

         (d)      the exercise price for each Common Share subject to the
                  Option;

         (e)      the time or times at which the Option may be exercised in
                  whole or in part, which shall be determined by the Committee
                  prior to the grant of an Option.

         (f)      the specific circumstances (which shall be determined at the
                  Date of Grant) when accelerated vesting under Section 6.3 of
                  the Plan apply to the Option.

7.       In the event of a termination of employment as a result of death or
         disability, Options shall become fully and immediately vested and may
         be exercised by the Participant's legal personal representatives or the
         Participant but not later than one year after the date of termination,
         or if earlier, the expiration date of the Option.

8.       No Option shall be exercised by the Participant if at that time he has
         been excluded from participating in the UK Sub-Plan by virtue of
         paragraph 9 of Schedule 4 to the Act (material interests).

9.       The Common Shares shall rank pari passu with other issued Common Shares
         of the same class and shall be acquired subject to the Company's
         statutes and bylaws.

10.      Upon exercise of an Option the Company shall allot and transfer Common
         Shares within 30 days of the date such an Option is exercised. For the
         avoidance of doubt, the exercise price may not be paid for by the
         delivery of Common Shares. In addition to and at the time of payment of
         the exercise price, the Participant shall pay to the Company the full
         amount of any and all applicable income tax and NIC required to be
         withheld in connection with such exercise, payable in cash or by cash
         equivalent acceptable to the Committee or by a broker assisted
         "cashless exercise" or the Participant may enter into such arrangements
         with the Company to meet such liabilities (including the Participant
         authorising the sale of the Common Shares acquired).

11.      For the purposes of paragraph 35A of Schedule 4 of the Act (Retirement
         age) and section 524 of the Act (income tax and NIC relief on exercise
         of an Option within 6 months of retirement), retirement age shall be
         55.

CHANGE IN CONTROL PROVISIONS (SECTION 10 OF THE PLAN)

12.      If any person obtains Control of the Company as a result of making:

         1.  (a)  a general offer to acquire the whole of the issued
                  ordinary share capital of the Company which is made on a
                  condition such that if it is satisfied the person making the
                  offer will have Control of the Company; or

         2.  (b)  a general offer to acquire all the Shares in the Company
                  which are of the same class as the Shares over which Options
                  have been granted; or

                                       14

<PAGE>

13.      If any person becomes bound or entitled to acquire shares in the
         Company under the New York corporate law equivalent to sections 428 to
         430F of the Companies Act 1985 then: or

14.      If under the New York corporate law equivalent of section 425 of the
         Companies Act 1985 the Court sanctions a compromise or arrangement
         proposed for the purposes of or in connection with a plan for the
         reconstruction of the Company or its amalgamation with any other
         company or companies.

15.      If as a result of the events specified in 12 to 14 above any company
         ("the Acquiring Company") has obtained Control of the Company or has
         become bound or entitled as mentioned in 13, a Participant may, with
         the agreement of the Acquiring Company and during the appropriate
         period as defined in Part 6 of Schedule 4 to the Act, release his
         rights under the Plan ("the Old Rights") in consideration of the grant
         to him of rights ("the New Rights") which satisfy the conditions of
         Part 6 of Schedule 4 to the Act, and the New Rights shall be deemed to
         have been granted at the time when the Old Rights were granted.

16.      In the application of the Rules to the New Rights, the term "Company"
         where appropriate shall be taken as referring to the company over whose
         share capital the New Rights are granted, and the expressions which are
         defined in Section 2 hereof and Section 2 of the Plan shall be
         interpreted as though the word "Company" were so defined.

17.      For the purposes of Section 12 to 15 a person shall be deemed to have
         obtained Control of a company if he and others acting in concert with
         him have together obtained Control of it.

18.      Provided always that none of the events specified in 12 to 14 above
         shall be treated as taking effect unless and until a "Change in
         Control" occurs as that terms is defined in Section 10 of the Plan.

EFFECTIVE DATE, TERMINATION AND AMENDMENT (SECTION 13)

19.      No alterations or amendments to a "key feature" (as defined in
         paragraph 30(4) of the Schedule) of the UK Sub-Plan (or to the Plan to
         the extent the alteration or amendment effects the UK Sub-Plan) shall
         take effect under Section 13.2 of the Plan in relation to Options
         granted or to be granted under the UK Sub-Plan until such alteration or
         amendment has been approved by the Inland Revenue.

20.      For the purposes of the UK Sub-Plan, no adjustment under Section 3.2 of
         the Plan shall be made to any Option which has been granted under the
         UK Sub-Plan unless such adjustment would be permitted under paragraph
         22 of Schedule 4 to the Act (i.e. the exercise price, the number and
         description of the shares to take account of a variation in the share
         capital of which the share form part) and where so permitted no such
         adjustment shall take affect until such adjustment has been approved by
         the Inland Revenue.

                                       15

<PAGE>

21.      For the purposes of the UK Sub-Plan, no modification of an Option shall
         take effect until such modification has been approved by the Inland
         Revenue.

                                       16<PAGE>

                                                                    EXHIBIT 10.4

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                    SECTION 162(m) PERFORMANCE INCENTIVE PLAN

SECTION 1. PURPOSE

         The purpose of this Platinum Underwriters Holdings, Ltd. Section 162(m)
Performance Incentive Plan is to provide a means of determining both annual and
long-term incentive compensation for certain of the Company's executive officers
in a manner that qualifies as "performance-based compensation" within the
meaning of Section 162(m) of the Internal Revenue Code.

SECTION 2. DEFINITIONS

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

                  (a) "Award" means any award granted under the Plan to an
         Eligible Employee by the Committee subject to such terms and conditions
         as the Committee may establish under the terms of the Plan.

                  (b) "Board" means the Board of Directors of the Company.

                  (c) "Cash-Based Award" means any Award denominated by
         reference to a dollar amount.

                  (d) "Committee" means the Compensation Committee of the Board
         (or such other committee of the Board that the Board shall designate
         from time to time) or any subcommittee thereof consisting of two or
         more directors each of whom is an "outside director" within the meaning
         of Section 162(m).

                  (e) "Common Shares" means the common shares of the Company,
         par value $0.01 per share.

                  (f) "Company" means Platinum Underwriters Holdings, Ltd., a
         Bermuda company.

                  (g) "Eligible Employee" means any employee or executive
         officer of the Company or any of its subsidiaries who is or, in the
         opinion of the Committee, may become a "covered employee" within the
         meaning of Section 162(m).

                  (h) "Fair Market Value" of a Common Share as of a given date
         shall have the same meaning as applies under the 2002 Share Incentive
         Plan.

                  (i) "GAAP" means accounting principles generally accepted in
         the United States of America from time to time.

                  (j) "Participant" means an Eligible Employee granted an Award
         under the Plan.

                  (k) "Performance Criteria" shall have the meaning set forth in
         Section 4(b) hereof.

                  (l) "Performance Goals" shall have the meaning set forth in
         Section 4(c) hereof.

                  (m) "Performance Period" means a period determined by the
         Committee of not more than five years over which the Performance Goals
         set forth in the Award are to be achieved.

                  (n) "Plan" means this Platinum Underwriters Holdings, Ltd.
         Section 162(m) Performance Incentive Plan, as it may be amended from
         time to time.

                  (o) "Restricted Shares" means Common Shares that are issued
         subject to such restrictions on transfer and other incidents of
         ownership and such forfeiture conditions as the Committee may
         determine.

                             Section 162(m) Performance Unit Plan (Exhibit 10.4)
<PAGE>

                  (p) "Share-Based Award" means any Award denominated by
         reference to a number of Common Shares (including Restricted Shares)
         and/or Share Units.

                  (q) "Share Incentive Plan" means the Company's 2002 Share
         Incentive Plan, as it may be amended and restated from time to time.

                  (r) "Share Units" means a non-voting unit of measurement based
         on the Fair Market Value of a Common Share, which entitles a
         Participant to receive a payment of cash or Common Shares, as
         determined by the Committee.

                  (s) "Section 162(m)" means Section 162(m) of the Internal
         Revenue Code of 1986, as amended from time to time, and any regulations
         promulgated thereunder.

                  (t) "Statutory Accounting Principles" means statutory
         accounting principles or practices required or permitted for financial
         reporting purposes by the National Association of Insurance
         Commissioners and by the department of insurance (or similar regulatory
         authority) of the jurisdiction of domicile of each insurance company
         subsidiary of the Company.

SECTION 3. ADMINISTRATION OF THE PLAN

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

         (b) Discretionary Authority. Subject to the express limitations of the
Plan, the Committee shall have authority in its discretion to determine the
Eligible Employees to whom, and the time or times at which, Awards may be
granted, whether an Award will be a Cash-Based Award or a Share-Based Award, the
Performance Period, the Performance Criteria and the Performance Goals, and all
other terms of the Award. The Committee shall also have discretionary authority
to interpret the Plan, to make all factual determinations under the Plan, and to
make all other determinations necessary or advisable for the administration of
the Plan. The Committee may prescribe, amend, and rescind rules and regulations
relating to the Plan. All interpretations, determinations, and actions by the
Committee shall be final, conclusive, and binding upon all parties.

         (c) Delegation of Authority. The Committee may delegate, to any
appropriate officer or employee of the Company, responsibility for certain
ministerial functions (but not the exercise of discretion) under this Plan.

SECTION 4. AWARDS

         (a) Grant of Awards. The Committee may grant to any Eligible Employee
Cash-Based Awards and/or Share-Based Awards under the Plan with respect to one
or more Performance Periods under the Plan. Performance Periods may run
consecutively and/or concurrently, as determined by the Committee. Before the
90th day of the Performance Period, the Committee will determine the type of the
Award, the duration of the Performance Period, the Performance Criteria, the
applicable Performance Goals relating to the Performance Criteria, and the
amount and terms of payment to be made upon achievement of the Performance
Goals.

         (b) Performance Criteria. For purposes of Awards granted under the
Plan, the "Performance Criteria" shall be one or any combination of the
following, for the Company or any identified subsidiary or business unit, as
determined by the Committee at the time of the Award: net income, earnings per
share, operating income, book value per share, return on equity, stock price
performance, cash flow, underwriting gain or loss. Each of the Performance
Criteria shall be applied and interpreted in accordance with GAAP, Statutory
Accounting Principles, if applicable, or such other objective measure as
established by the Committee at the time of the Award.

         (c) Performance Goals. For purposes of Awards granted under the Plan,
the "Performance Goals" shall be the levels of achievement relating to the
Performance Criteria selected by the Committee for the Award. The

                                        2

<PAGE>

Performance Goals shall be expressed as an objective formula or standard that
precludes discretion to increase the amount of compensation payable that would
otherwise be due upon attainment of the goal. The Performance Goals may be
applied on an absolute basis or relative to an identified index or peer group,
as specified by the Committee. The Performance Goals may be applied by the
Committee after excluding charges for restructurings, discontinued operations,
extraordinary items, and other unusual or non-recurring items, and the
cumulative effects of accounting changes, each as determined in accordance with
GAAP, Statutory Accounting Principles, if applicable, or such other objective
measure established by the Committee, provided the adjustments are specified at
the time the Award is established.

         (d) Maximum Awards. The maximum amount that may become payable to any
one Participant during any one calendar year under all Cash-Based Awards is
limited to $3,000,000. The maximum number of Common Shares (including Restricted
Shares) and/or Share Units that may be subject to all Share-Based Awards granted
to any one Participant during any one calendar year is limited to 100,000 Common
Shares and/or Share Units.

         (e) Negative Discretion. Notwithstanding anything else contained in the
Plan to the contrary, the Committee shall have the right, in its discretion, (i)
to reduce or eliminate the amount otherwise payable to any Participant under an
Award and (ii) to establish rules or procedures that have the effect of limiting
the amount payable to any Participant to an amount that is less than the maximum
amount otherwise payable under an Award. The Committee shall not have discretion
to increase the amount that is otherwise payable to any Participant under an
Award.

SECTION 5. PAYMENT OF AWARDS

         (a) Certification. Following the conclusion of the Performance Period
of an Award, the Committee shall certify in writing whether the Performance
Goals for that Performance Period have been achieved, or certify the degree of
achievement, if applicable.

         (b) Payment. Upon certification of the Performance Goals for a
Cash-Based Award, the Committee shall determine the amount of payment to the
Participant pursuant to the Award, if any. Upon certification of the Performance
Goals for a Share-Based Award, the Committee shall determine the number of
Common Shares, Restricted Shares and/or Share Units payable to the Participant
pursuant to the Award, if any. Notwithstanding the foregoing, both Cash-Based
Awards and Share-Based Awards may be paid in any combination of cash, Common
Shares, Restricted Shares and/or Share Units, as determined by the Committee in
its discretion, based upon the Fair Market Value of the Common Shares at the
time of payment.

         (c) Share Restrictions. Any Common Shares, Restricted Shares or Share
Units payable in respect of an Award shall be subject to such terms, conditions,
restrictions and/or limitations as the Committee shall determine in its
discretion. Any Common Shares that become payable under an Award shall be paid
from the Common Shares authorized under the Company's 2002 Share Incentive Plan,
and shall be subject to the terms and conditions of such plan.

         (d) Employment Requirement. In the event of the termination of
employment of a Participant with the Company or a subsidiary before the payment
of an Award, the Award shall be forfeited and automatically be cancelled without
further action of the Company or the Committee, subject to such conditions as
may be approved by the Committee for certain circumstances of termination of
employment, such as death or disability, if approved by the Committee in its
sole discretion.

         (e) Tax Withholding. Any payment under this Plan shall be subject to
applicable federal, state or local income and employment taxes and any other
amounts that the Company is required by law to deduct and withhold from such
payment.

         (f) Deferral of Payments. The Committee may in its discretion grant an
Award that provides a Participant the opportunity to elect in writing to defer
up to 100% of the payment of amounts payable under the Award, with the election
to be made in the manner specified by the Committee. The Committee may in its
discretion provide for interest or other investment return on any such deferred
amounts.

SECTION 6. GENERAL PROVISIONS

                                        3

<PAGE>

         (a) Effective Date. Subject to the approval of the Company's
shareholders, the Plan shall be effective with respect to calendar years
beginning on or after January 1, 2004.

         (b) Amendment and Termination. The Company may, from time to time, by
action of the Board, amend, suspend or terminate any or all of the provisions of
the Plan, but no such amendment, suspension or termination shall adversely
affect the rights of any Participant with respect to Awards then outstanding.
Notwithstanding the foregoing, no amendment will be effective without
shareholder approval if such approval is required to satisfy the requirements of
Section 162(m). For purposes of Section 162(m), the material terms of the Plan
must be re-approved by the shareholders no later than the 2008 Annual General
Meeting of Shareholders.

         (c) Other Compensation. Nothing contained in the Plan shall prohibit
the Company or any subsidiary from establishing other additional incentive
compensation arrangements for one or more employees of the Company or from
paying compensation outside of the terms of the Plan, whether or not such
compensation qualifies as performance-based compensation under Section 162(m).

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

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

                                        4

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