Document:

Exhibit 4.4

1999 PERFORMANCE INCENTIVE PROGRAM FOR EMPLOYEES

 (AS AMENDED AND RESTATED ON APRIL 30, 2010) 

I. INTRODUCTION

A. Purpose of the Program 

                    XL
Group plc (the “Company”) has established the Program to further its long-term
financial success by offering stock, and stock-based compensation, to employees
of the Company who are not officers or directors whereby they can share in
achieving and sustaining such success. The Program also provides a means to
attract and retain the talent needed to achieve the Company’s long-term growth
and profitability objectives. 

B. Definitions 

                    When
used in the Program, the following terms shall have the meanings set forth
below: 

                    
“Award(s)” shall mean Performance Shares, Restricted Stock, Nonstatutory Stock
Options, or Performance Units granted under the Program. 

                    
“Board” shall mean the Board of Directors of the Company. 

                    
“Change of Control” shall be deemed to have occurred if and when any person,
meaning an individual, a partnership, or other group or association as defined
in Sections 13(d) and 14(d) of the United States Securities Exchange Act of
1934 (other than a group of which the Grantee is a member or which has been
organized by the Grantee for the purpose of making such acquisition), acquires,
directly or indirectly, 40 percent or more of the combined voting power of the
outstanding securities of the Company having a right to vote in the election of
directors including but not limited to a transaction pursuant to i) a
compromise or arrangement sanctioned by the court under section 201 of the
Companies Act 1963 of the Republic of Ireland or ii) section 204 of the
Companies Act 1963 of the Republic of Ireland.. Ownership of 40 percent or more
of the combined voting power of the outstanding securities of the Company by
any person controlled directly or indirectly by the Company shall not be deemed
a Change of Control of the Company.

                    
“Code” shall mean the United States Internal Revenue Code of 1986, as amended. 

                    
“Committee” shall mean the entire Board or the Compensation Committee, or such
other committee of the Board as may be designated by the Board to administer
the Program. 

                    “Common
Stock” shall mean the ordinary shares of the Company, and may be either stock
previously authorized but unissued, or stock required by the Company. 

1

                    “Company”
shall mean XL Group plc, an Irish company, any other entity in which XL Group
plc owns 20% or more of the ordinary voting power or equity, and any successor
in a reorganization or similar transaction.” 

                    
“Disability” shall mean the inability of a Participant to perform the services
normally rendered due to any physical or mental impairment that can be expected
to be of either permanent or indefinite duration, as determined by the
Committee on the basis of appropriate medical evidence, and that results in the
Participant’s Termination of Employment; provided, however, that with respect
to any Participant who has entered into an employment agreement with the
Company, the term of which has not expired at the time a determination
concerning Disability is to be made, Disability shall have the meaning
attributed in such employment agreement. 

                    
“Fair Market Value” shall mean with respect to a given day, the closing sales
price of Common Stock, as reported by such responsible reporting service as the
Committee may select, or if there were no transactions in the Common Stock on
such day, then the last preceding day of which transactions took place. The
foregoing notwithstanding, the Committee may determine the Fair Market Value in
such other manner as it may deem more appropriate for Program purposes or as is
required by applicable laws or regulations. 

                    
“Nonstatutory Stock Option” or “NQSO” shall mean a right to purchase the
Company’s Common Stock which is not intended to comply with the terms and
conditions for a tax-qualified stock option, as set forth in Section 422 of the
Code, or such other sections of the Code as may be in effect from time to time.

                    
“Participant” shall mean an employee of the Company who is not subject to the
reporting requirements of Section 16(a) of the United States Securities
Exchange Act of 1934 and who is designated by the Committee to receive an
Award. 

                    “Performance
Goal” shall mean any financial, statistical or other measure selected by the
Committee, including without limitation (a) the attainment of a specified
financial or statistical objective or (b) the performance of the Company
relative to a peer group as applicable to a specific Performance Period. 

                    “Performance
Period” shall mean a period set by the Committee over which Performance Shares
or Performance Units may be earned. There may be more than one Performance
Period in existence at any one time, and the duration of Performance Periods
may differ from each other. 

                    “Performance
Shares” shall mean Common Stock granted to a Participant with respect to a
Performance Period under Article III of the Program, together with any other
rights attached thereto or associated therewith including without limitation
any right to receive cash in connection therewith. 

                    “Performance
Unit” shall mean a cash award made pursuant to Section VI of the Program. 

2

                    
“Program” shall mean the Company’s 1999 Performance Incentive Program For
Employees. 

                    
“Restricted Stock” shall mean a share of Common Stock granted to a Participant
under Article IV of the Plan. Restricted Stock awards entitle the Participant
to receive shares of Common Stock which have certain restrictions that lapse
upon satisfaction of conditions imposed by the Committee at the time of award. 

                    
“Retirement” shall mean a Participant’s Termination of Employment by reason of
the Participant’s retirement at his normal retirement date, pursuant to and in
accordance with a pension, retirement or similar plan or other regular
retirement practice of the Company, or in accordance with the early retirement
provisions thereof. 

                    
“Stock Appreciation Rights” or “SARs” shall mean a contingent right granted to
a Participant with respect to Stock Options granted under Article V of the
Plan, which grants the Participant the right to receive the difference between
the Fair Market Value of the Common Stock on the date of exercise and the price
at which the SAR was granted. 

                    
“Termination of Employment” shall mean a cessation of the employee-employer
relationship between a Participant and the Company for any reason. 

II. PROGRAM ADMINISTRATION

A. Administration 

                    The
Program shall be administered by the Committee. Subject to the express
provisions of the Program, the Committee shall have full and exclusive
authority to interpret the Program, to prescribe, amend and rescind rules and
regulations relating to the Program and to make all other determinations deemed
necessary or advisable in the implementation and administration of the Program;
provided, however, that subject to the express provisions hereof or unless
required by applicable law or regulation, no action of the Committee shall
adversely affect the terms and conditions of any Award made to, or any rights
hereunder or under any grant letter of, any Participant, without such
Participant’s consent. The Committee’s interpretation and construction of the
Program shall be conclusive and binding on all persons, including the Company
and all Participants. 

B. Participation 

                    The
Committee may, from time to time, make all determinations with respect to
selection of Participants and the Award or Awards to be granted to each
Participant. In making such determinations, the Committee may take into account
the nature of the services rendered or expected to be rendered by the
respective Participants, their present and potential contributions to the
Company’s success and such other factors as the Committee in its discretion
shall deem relevant. 

C. Maximum Number of Shares Available 

                    The
maximum number of shares which may be granted under the Program is 1,250,000,
subject to adjustment as provided under Article II, Paragraph D of the Program.
In 

3

 the event that a stock option expires or is terminated unexercised
as to any shares covered thereby, or shares are forfeited for any reason under
the Program, such shares shall thereafter be again available for issuance under
the Program. At the Committee’s discretion, these shares may be granted as
stock options, Performance Shares, Restricted Stock, Stock Appreciation Rights
or any combination of these provided that the combined total number of shares
granted does not exceed the overall share authorization described above. 

D. Adjustments 

                    In
the event of any alteration or re-organization whatsoever taking place in the
capital structure of the Company whether by way of capitalization of profits or
reserves, capital distribution, rights issue, consolidation or sub-division of
shares, the conversion of one class of share to another or reduction of capital
or otherwise, the number of shares of Common Stock available for grant under
this Program shall be adjusted proportionately or otherwise by the Board, and
where deemed appropriate, the number of shares covered by outstanding stock
options, the number of Performance Share and Restricted Stock shares
outstanding, and the option price of outstanding stock options shall be
similarly adjusted. Also, in instances where another corporation or other
business entity is acquired by the Company, and the Company has assumed
outstanding employee option grants under a prior existing plan of acquired
entity, similar adjustments are permitted at the discretion of the Committee.
In the event of any other change affecting the Common Stock reserved under the
Program, such adjustment, if any, as may be deemed equitable by the Board,
shall be made to give proper effect to such event. Notwithstanding any
provision hereof to the contrary, no adjustment may be made that reduces the
amount to be paid up per share to less that the par value of the share. 

E. Registration Conditions 

          1.
Unless issued pursuant to a registration statement, under the U.S. Securities
Act of 1933, as amended, no shares shall be issued to a Participant under the
Program unless the Participant represents and agrees with the Company that such
shares are being acquired for investment and not with a view to the resale or
distribution thereof, or such other documentation as may be required by the
Company, unless in the opinion of counsel to the Company such representation,
agreement or documentation is not necessary to comply with such Act. 

          2.
Any restriction on the resale of shares shall be evidenced by the following
legend on the stock certificate or such other legend as the Company deems
appropriate.

                    
“The shares represented by this certificate have not been registered under the
Securities Act of 1933, as amended. The shares cannot be offered, transferred
or sold unless (a) a registration statement under such Act is in effect with
respect to such shares, or (b) a written opinion from counsel acceptable to the
Company is obtained to the effect that no such registration is required. The
Company reserves the right to refuse the transfer of such shares until such
conditions have been fulfilled. The Articles of Association of the Company
contain other restrictions on share transfers.”

4

                    Any
certificate issued at any time in exchange or substitution for any certificate
bearing such legend (or such other legend deemed appropriate by the Company)
shall also bear such a legend unless, in the opinion of counsel or the Company,
the securities represented thereby need no longer be subject to the restriction
contained herein. The provisions of this paragraph shall be binding upon all
subsequent holders of certificates bearing such legend. 

F. Committee Action 

                    The
Committee may, through Award agreements, limit its discretion under this
Program. To the extent such discretion is not specifically waived in an Award
agreement, the Committee shall retain such discretion. 

III. PERFORMANCE SHARES

A. Amount Available for Grant Awards 

                    The Committee may, from time
to time, limit the number of Performance Shares that may be awarded under the
Program. If Performance Share(s) are forfeited or cancelled, or repurchased
under the Program they shall again be available for Awards to other
Participants. 

B. Grant of Performance Shares 

                    After
selecting Participants who will receive Awards of Performance Shares for a
given Performance Period, the Committee shall inform each such Participant of
the Award to be granted to the Participant at the completion of the Performance
Period, and the applicable terms and conditions of the Award. 

                    The Committee
shall cause to be issued to each Participant a grant letter specifying the
number of Performance Shares equal to his Award and the number of Performance
Shares which may be awarded subject to the terms and conditions of such grant
letter and the Program. 

C. Establishment of Performance Goals 

          1.
The Committee shall establish the Performance Goals for each Performance
Period. The Committee may also establish a schedule for such Performance Period
setting forth the percentage of the Performance Share Award which will be earned,
based on the extent to which the Performance Goals for such Performance Period
are actually achieved, the date on which Performance Shares awarded hereunder
shall vest, or the date on which such Performance Shares shall be forfeited (in
whole or in part) for failure to meet the Performance Goals, shall be as
specified by the Committee. 

          2.
As promptly as practical after each Performance Period, the Committee shall
determine whether, or the extent to which, the Performance Goals have been
achieved. Based on such determination, the Participant shall be deemed to have
earned the Performance Shares awarded to him, or a percentage thereof as
provided in any schedule established by the Committee. In addition, the
Committee may, from time to time during a Performance Period and

5

 consistent with the
terms and conditions of applicable Awards and Performance Goals, determine that
all or a portion of the Performance Shares awarded to one or more Participants
have been earned. 

          3.
If during the course of a Performance Period, there should occur, in the
opinion of the Committee, significant changes in economic conditions or in the
nature of the operations of the Company, or any other pertinent changes which
the Committee did not foresee or accurately predict the extent of in
establishing the Performance Goals for such Performance Period and which, in
the Committee’s sole judgment, have, or are expected to have, a substantial
effect on the performance of the Company during such Performance Period, the
Committee may make such adjustment to the Performance Goals or measurement of
such Performance Goals as the Committee, in its sole judgment, may deem
appropriate. 

D. Termination of Employment 

                    In
the event of a Participant’s Termination of Employment prior to satisfaction of
conditions related to outstanding Performance Share Awards for reasons other
than discharge or resignation, the Participant or the Participant’s estate or
beneficiary, in the sole discretion of the Committee, may be entitled to receive
from Performance Shares held by the Corporation a pro rata number of shares
with respect to that Performance Share Award, or such larger portion of the
Award, as the Committee shall determine. In the event of Termination of
Employment due to resignation or discharge, the Award will be cancelled, and
the Participant shall not be entitled to any further consideration with respect
to the forfeited Performance Shares, subject to the discretion of the Committee
to release restrictions on all or any part of an Award. 

IV. RESTRICTED STOCK

A. Grant of Restricted Stock 

          1.
Following the selection of Participants who will receive a Restricted Stock
Award, the Committee shall inform each Participant of the number of shares of
Restricted Stock granted to the Participant and the terms and applicable
conditions of the Award. 

          2.
Each certificate for Restricted Stock shall be registered in the name of the
Participant and deposited together with a stock power endorsed in blank, with
the Company. 

B. Other Terms and Conditions 

                    Company
stock, when awarded pursuant to a Restricted Stock Award, will be represented
by a stock certificate registered in the name of the Participant who is granted
the Restricted Stock Award. Such certificate shall be deposited together with a
stock power endorsed in blank with the Company. The Participant shall be
entitled to receive dividends and all other distributions during the
restriction period and shall have all shareholder’s rights with respect to such
stock, if any, with the exception that: (1) the Participant may not transfer
ownership of the shares during the restriction period except by will or the
laws of descent and distribution, (2) the Participant will not be entitled to
delivery of the stock certificate during the 

6

restriction period, (3) the
Company will retain custody of the stock during the restriction period, and (4) a breach of a restriction or a breach of the terms
and conditions established by the Committee pursuant to the Restricted Stock
Award will cause a forfeiture of the Restricted Stock shares. The Committee may
impose additional restrictions, terms, or conditions upon the Restricted Stock
Award. 

C. Restricted Stock Award Agreement 

                    Each
Restricted Stock Award shall be evidenced by a Restricted Stock Award Agreement
in such form and containing such terms and conditions not inconsistent with the
provisions of the Program as the Committee from time to time shall approve. 

D. Termination of Employment 

                    In
the event of a Participant’s Termination of Employment prior to satisfaction of
conditions related to outstanding Restricted Stock Awards for reasons other
than discharge or resignation, the Participant or the Participant’s estate or beneficiary,
in the sole discretion of the Committee, may be entitled to receive from
Restricted Stock shares held by the Corporation a pro rata number of shares
with respect to that Restricted Stock Award, or such larger portion of the
Restricted Stock Award, as the Committee shall determine. In the event of
Termination of Employment due to resignation or discharge, all Restricted Stock
shares held by the Company shall be forfeited, and the Participant shall not be
entitled to any further consideration with respect to the forfeited Restricted
Stock shares, subject to the discretion of the Committee to release of
restrictions on all or any part of an Award, or unless otherwise stated in the
Restricted Stock Agreement. 

E. Payment for Restricted Stock 

                    Restricted
Stock Awards may be made by the Committee under which the Participant shall,
upon payment of the par value, or, in the alternative, upon payment of all (or
any lesser amount than all) of the Fair Market Value of the stock, determined
as of the date the Restricted Stock Award is made, receive a Restricted Stock
Award. If payment is required, such purchase price shall be paid as provided in
the Restricted Stock Award Agreement. 

V. STOCK OPTIONS

A. Stock Option Terms and Conditions 

                    All
stock options granted to Participants under the Program shall be evidenced by
agreements which shall be subject to applicable provisions of the Program, and
such other provisions as the Committee may adopt, including the following provisions:

          1. Price: The option price per share of
Nonstatutory Stock Options (NQSOs) shall not be less than 100 percent of the
Fair Market Value of a share of Common Stock on the date of grant. 

          2.
Period: NQSOs shall have a term as established by the
Committee. 

7

          3.
Time of Exercise: The Committee
may prescribe the timing of the exercise of the stock option and any minimums
and installment provisions and may accelerate the time at which a stock option
becomes exercisable. 

          4.
Exercise Procedures: A stock
option, or portion thereof, shall be exercised by delivery of a written notice
of exercise to the Corporation, and payment of the full price of the shares
being purchased. 

          5.
Payment: The price of an exercised
stock option, or portion thereof, may be paid: 

	
  

 	
  

 
	
  

 	
 a. in cash or by check,
 bank draft or money order payable to the order of the Company; or 

 
	
  

 	
  

 
	
  

 	
 b. through the delivery of
 shares of Common Stock owned by the Participant, having an aggregate Fair Market
 Value as determined on the date of exercise equal to the option price; or 

 
	
  

 	
  

 
	
  

 	
 c. by a combination of
 both a and b above. The Committee may impose such limitations and
 prohibitions on the use of any shares of Common Stock to exercise a stock
 option as it deems appropriate. 

 

          6.
Effect of Leaves of Absence: It
shall not be considered a Termination of Employment when a Participant is
placed by the Company on military leave, sick leave or other bona fide leave of
absence. In case of such leave of absence, the employment relationship for
Program purposes shall be continued until the later of the date when such leave
of absence equals ninety days or when the Participant’s right be, to
reemployment with the Company shall no longer be guaranteed either by statute
or contract. 

          7.
Termination of Employment: In the
event of Termination of Employment, the following provisions shall apply unless
waived by the Committee, or as otherwise specifically provided in the Stock
Option Agreement: 

	
  
 	
  
 
	
  
 	
 a. Discharge for Cause:
 All outstanding options shall be cancelled.
 
	
  
 	
  
 
	
  
 	
 b. Termination Other Than
 for Cause: Unless and except as otherwise specified in a Participant’s
 agreement, all options shall expire 90 days following the termination of
 employment.
 
	
  
 	
  
 
	
 Notwithstanding the foregoing, the Committee may rescind the
   right to exercise stock options following Termination of Employment if the
   Participant has been found to be directly or indirectly engaged in any
   activity which is in competition with the Company or otherwise adverse to or
   not in the best interest of the Company. 

B. Stock Appreciation Rights (SARs) 

          1.
Stock options granted under the Program may be granted with Stock Appreciation
Rights attached on a one-to-one basis. SARs are subject to all terms and conditions of

8

 the related stock options. SARs may only be granted
in connection with a stock option, and as such are subject to the limit on
shares authorized under Article II, Paragraph C. A Stock Appreciation Right
shall entitle the Participant to receive from the Company an amount equal to
the positive difference between the Fair Market Value of a share of Common
Stock on the exercise of the Stock Appreciation Right and the exercise price of
the related stock option. 

          2.
Stock Appreciation Rights will be subject to all applicable provisions of the
Program, as well as any other provisions the Committee may adopt. The exercise
of an SAR will result in the cancellation of the related stock option, and
options so cancelled shall not be available for future awards under the
Program. The exercise, expiration, forfeiture or other termination of a stock
option will result in termination of the attached SAR. 

VI. PERFORMANCE UNIT AWARDS

                    A.
Each Award shall be subject to the limitations and terms provided in the
Program. A new Award may commence on the first anniversary date of the
preceding Award. The Committee shall grant to each Participant in a Performance
Unit Award a number of units with a target cash value as shall be established
by the Committee prior to the first year of each Performance Period. 

                    B.
To allow for recognition of significant individual contributions to the
Company’s performance, individual awards of Performance Units may be granted to
new Participants during the first year of a Performance Period, at the
discretion of the Committee. 

                    C.
Performance Unit Awards for each Participant shall be recommended by the Chief
Executive Officer and submitted to the Committee for approval. Participants
will generally be notified of their individual Performance Unit Award within
the first six months of a Performance Period. 

                    D.
Performance Goals for each Performance Period will be recommended by the Chief
Executive Officer of the Company, and submitted to the Committee for approval. 

                    E.
Once a Performance Period has begun and Performance Goals have been
established, they may not be changed for that Performance Period except in the
event of: 

	
  

 	
  

 
	
  

 	
           1.
 A significant acquisition of another business concern by the Company, as
 determined by the Committee; 

 
	
  

 	
  

 
	
  

 	
           2.
 A disposition of a significant part of the business by the Company, as
 determined by the Committee; 

 
	
  

 	
  

 
	
  

 	
           3.
 An external calamitous event, such as a natural disaster, which has a
 significant effect on the Company, as determined by the Committee; 

 
	
  

 	
  

 
	
  

 	
           4.
 Any significant changes due to legislation, as determined by the Committee;
 or 

 
	
  

 	
  

 
	
  

 	
           5.
 Any other extraordinary event, as determined by the Committee. 

 

9

                    F.
A performance valuation schedule shall be recommended by the Chief Executive
Officer of the Company and approved by the Committee before grants are made under
the Program. The Committee shall approve or modify the proposed schedule which
will contain various levels of performance and corresponding Performance Unit
values. 

                    G.
At the end of a Performance Period, the Committee shall review actual
performance and determine the Award payouts, if any.

                    H.
In the event of a Participant’s Termination of Employment prior to the
satisfaction of conditions related to outstanding Performance Unit Awards for
reasons other than discharge or resignation, the Participant, or the
Participant’s estate or beneficiary, in the sole discretion of the Committee,
may be entitled to receive a pro-rata distribution of outstanding Performance
Unit Awards. In the event of Termination of Employment due to resignation or
discharge, all Awards will be cancelled, and the Participant shall not be
entitled to any further consideration with respect to the forfeited Performance
Units, subject to the discretion of the Committee. 

VII. GENERAL PROVISIONS 

A. Amendment and Termination of Program

                    The
Board may, at any time and from time to time, suspend or terminate the Program
in whole or amend it from time to time in such respects as the Board may deem
appropriate. 

B. Government and Other Regulations 

                    The
right of the Company to issue Awards under the Program shall be subject to all
applicable laws, rules and regulations, and to such approvals by any government
agencies as may be required. 

C. Other Compensation Plans and Programs 

                    The
Program shall not be deemed to preclude the implementation by Company of other
compensation plans or programs which may be in effect from time to time. 

D. Miscellaneous Provisions 

          1.
No Right to Continue Employment: Nothing in the Program or in any Award confers upon any Participant the
right to continue in the employ of the Company or interferes with or restricts
in any way the rights of the Company to discharge any Participant at any time
for any reason whatsoever, with or without cause. 

          2.
Non-Transferability: Except
as otherwise determined by the Committee and set forth in the applicable Award
Agreement,prior to being earned
under Articles III, IV, or VI, or being exercised under Article V, no right or
interest of any Participant in any Award under the Program shall be (a)
assignable or transferable, except by will or the laws of descent and
distribution or a valid beneficiary designation taking effect at death made in
accordance with procedures established by the Committee, or (b) liable for, or
subject to, any lien, obliga-

10

 tion or liability, except to the extent that Non-Qualified
Stock Options may be pledged as security in a margin account for their
exercise. 

          3.
Designation of Beneficiary: A Participant, in
accordance with procedures established by the Committee, may designate a person
or persons to receive, in the event of the Participant’s death, (a) any
payments with respect to which the Participant would then be entitled, and (b)
the right to continue to participate in the Program to the extent of such
Participant’s outstanding Awards. Such designation shall be made upon forms
supplied by and delivered to the Company and may be revoked in writing. 

          4.
Withholding Taxes: The
Company may require a payment from a Participant to cover applicable
withholding for income and employment taxes. The Company reserves the right to
offset such tax payment from any other funds which may be due the Participant
by the Company. 

          5.
Program Expenses: Any
expenses of administering the Program shall be borne by the Company. 

          6.
Construction of Program: The interpretation of the Program and the application of any rules
implemented hereunder shall be determined solely in accordance with the laws of
the State of New York, without regard to the principles of conflict of laws
thereof. 

          7.
Unfunded Program: The
Program shall be unfunded, and the Company shall not be required to segregate
any assets which may at any time be represented by Awards. Any liability of the
Company to any person with respect to an Award under this Program shall be
based solely upon any obligations which may be created by this Program. No such
obligation of the Company shall be deemed to be secured by any pledge or other
encumbrance on any property of the Company. 

          8.
Benefit Plan Computations: Any
benefits received or amounts paid to a Participant with respect to any Award
granted under the Program shall not have any effect on the level of benefits
provided to or received by any Participant, or the Participant’s estate or
beneficiary, as part of any employee benefit plan (other than the Program) of
the Company. 

          9.
Pronouns, Singular and Plural: The
masculine may be read as feminine, the singular as plural and the plural as
singular as necessary to give effect to the Program. 

E. Effective Dates 

                    The
Program will become effective on approval by the Board of the Company. All
outstanding Awards shall remain in effect until all outstanding awards have
been earned, have been exercised or repurchased, have expired or have been
cancelled.

11Exhibit 4.5 

XL GROUP PLC

DIRECTORS STOCK & OPTION PLAN

 (AS AMENDED AND RESTATED AS OF APRIL 30,
2010)

          1.
PURPOSES 

          The
purposes of the Directors Stock & Option Plan are to advance the interests
of XL Group plc and its Shareholders by providing a means to attract, retain,
and motivate Directors of the Company upon whose judgment, initiative and
efforts the continued success, growth and development of the Company is
dependent. 

          2.
DEFINITIONS 

          For
purposes of the Plan, the following terms shall be defined as set forth below: 

	
  

 	
  

 
	
  

 	
 (a) “Board”
 means the Board of Directors of the Company. 

 
	
  

 	
  

 
	
  

 	
 (b) “Code”
 means the Internal Revenue Code of 1986, as amended from time to time.
 References to any provision of the Code shall be deemed to include successor
 provisions thereto and regulations there under. 

 
	
  

 	
  

 
	
  

 	
 (c)
 “Company” means XL Group plc, an Irish company, or any successor corporation.

 
	
  

 	
  

 
	
  

 	
 (d)
 “Director” means a non-employee member of the Board.

 
	
  

 	
  

 
	
  

 	
 (e) “Fair
 Market Value” means, with respect to Shares on any day, the following: 

 

	
  

 	
  

 
	
  

 	
 (i) If the
 Shares are at the time listed or admitted to trading on any stock exchange,
 then the Fair Market Value shall be the closing selling price per share of
 Shares on the date in question on the stock exchange which is the primary
 market for the Shares, as such price is officially quoted on such exchange.
 If there is no reported sale of Shares on such exchange on such date, then
 the Fair Market Value shall be the closing selling price on the exchange on
 the last preceding date for which such quotation exists; and 

 
	
  

 	
  

 
	
  

 	
 (ii) If the
 Shares are not at the time listed or admitted to trading on any stock
 exchange but are traded in the over-the-counter market, the Fair Market Value
 shall be the closing selling price per share of Shares on the date in
 question, as such price is reported by the National Association of Securities
 Dealers through the NASDAQ National Market System or any successor system. If
 there is no reported closing selling price for Shares on such date, then the
 closing selling price on the last preceding date for which such quotation
 exists shall be determinative of Fair Market Value. 

 

	
  

 	
  

 
	
  

 	
 (f) “Fiscal
 Year” means the calendar year. 

 
	
  

 	
  

 
	
  

 	
 (g) “Option”
 means a right, granted under Section 5 of the Plan, to purchase Shares. 

 
	
  

 	
  

 
	
  

 	
 (h)
 “Participant” means a Director who has been granted an Option, Restricted
 Stock Award, 

 

	
  

 	
  

 
	
  

 	
 Restricted
 Stock Unit Award or who has elected to defer compensation under the Plan.

 
	
  

 	
  

 
	
  

 	
 (i) “Plan”
 means this Directors Stock & Option Plan.

 
	
  

 	
  

 
	
  

 	
 (j)
 “Restricted Stock Award” means an award granted under Section 5(g) of the
 Plan.

 
	
  

 	
  

 
	
  

 	
 (k)
 “Restricted Stock Unit Award” means an award granted under Section 5(h) of
 the Plan.

 
	
  

 	
  

 
	
  

 	
 (l) “Shares”
 means ordinary shares of the Company. 

 

          3.
ADMINISTRATION 

          The
Plan shall be administered by the Board. Subject to the express provisions of
the Plan, the Board shall have full and exclusive authority to interpret the
Plan, to make all determinations with respect to awards to be granted under the
Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, and to make all other determinations necessary or advisable in the
implementation and administration of the Plan. The Board’s interpretation and
construction of the Plan shall be conclusive and binding on all persons. 

          4.
SHARES SUBJECT TO THE PLAN 

          (a)
Subject to adjustment as provided in Section 5(j), the total number of Shares
reserved for issuance under the Plan shall be 794,702. If any Shares subject to
an Option, Restricted Stock Award or Restricted Stock Unit Award hereunder are
forfeited, cancelled or surrendered, any Shares counted against the number of
Shares reserved and available under the Plan with respect to such Option,
Restricted Stock Award or Restricted Stock Unit Award shall, to the extent of
any such forfeiture, cancellation or surrender, again be available for issuance
as such an award under the Plan. 

          (b)
Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued Shares including Shares acquired by purchase in the open market or in
private transactions. 

          5.
DIRECTOR’S AWARDS 

          (a)
Initial Option Grant. Each Director who is first elected to the Board
subsequent to March 7, 2003 shall be granted an Option to purchase 5,000 Shares
(or such other number of Shares, as determined from time to time by the Board)
on the date such Director is first elected to the Board and such Option shall
have an exercise price per Share equal to 100% of the Fair Market Value per
Share at the date of grant; provided, however, that such price shall be at
least equal to the par value of a Share. 

          (b)
Annual Option Grants. On the date of each annual meeting of Shareholders
of the Company, beginning with the annual meeting for 2009, each Director in
office immediately following the annual meeting shall be granted an Option to
purchase such number of Shares as determined from time to time by the Board,
with an exercise price per Share equal to 100% of the Fair Market Value per
Share at the date of grant; provided, however, that such price per share shall
be at least equal to the par value of a Share. 

          (c)
Exercisability. Each Option granted to a Director under Section 5(a) or (b) of this Plan shall
be fully exercisable on the date of grant and shall expire on the tenth
anniversary of the date of grant, and exercisability of such an Option shall
not be dependent upon the Director’s continuing service on the Board. 

2

          (d)
Time And Method Of Exercise. The exercise price of an Option shall be
paid to the Company at the time of exercise in cash or through delivery of
Shares owned by the Director for more than six months having an aggregate Fair
Market Value on the date of exercise equal to the exercise price. 

          (e)
Discretionary Options. Without limiting the operation of Section 5(a) or
(b) hereof, the Board may also make discretionary Option grants to Directors
hereunder. The Board may determine, in its discretion, the Directors to whom
any such Options are to be granted, the number of Shares to be subject to each
such Option and the other terms and conditions of such Options, consistent with
the terms of the Plan. The exercise price per share of any Option shall not be
less than 100% of the Fair Market Value of a Share on the date of grant, and
the term of an Option shall not be longer than ten years. 

          (f)
No Option Re-pricing. Except as provided in Section 5(j) hereof relating
to certain anti-dilution adjustments, unless the approval of Shareholders of
the Company is obtained, Options issued under the Plan shall not be amended to
lower their exercise prices and they will not be exchanged for other stock
options with lower exercise prices. 

          (g)
Restricted Stock Awards. The Board may grant Restricted Stock Awards to
Directors on such terms and conditions, consistent with the provisions of this
Plan, as determined by the Board. Restricted Stock Awards shall be subject to
restrictions on transferability, forfeiture conditions and other restrictions,
if any, as the Board may impose, which restrictions and forfeiture conditions
may lapse under such circumstances as the Board may determine. A Director who
is granted a Restricted Stock Award shall have all of the rights of a
Shareholder prior to vesting of the Restricted Stock Award, including, without
limitation, the right to vote the Restricted Stock and the right to receive
dividends thereon. 

          (h)
Restricted Stock Unit Awards. The Board may grant Restricted Stock Unit
Awards to Directors on such terms and conditions, consistent with the
provisions of this Plan, as determined by the Board. Restricted Stock Unit
Awards will provide for the delivery of a number of Shares equal to the number
of Restricted Stock Units at the time and subject to the terms and conditions
set forth by the Board. Delivery of Shares pursuant to the Restricted Stock
Unit Awards will occur upon expiration of the deferral period specified by the
Board. In addition, Restricted Stock Unit Awards shall be subject to such
restrictions, including forfeiture conditions, as the Board may impose. 

          (i)
Transferability. The Options, Restricted Stock Awards and Restricted
Stock Unit Awards granted under the Plan may be assigned or otherwise
transferred only: (i) by will or the laws of descent and distribution; (ii) by
valid beneficiary designation taking effect at death made in accordance with
procedures established by the Board; or (iii) solely in the case of Options, by
the Director to members of his or her “immediate family”, to a trust
established for the exclusive benefit of solely one or more members of the
Director’s “immediate family” and/or the Director, or to a partnership or other
entity pursuant to which the only owners are one or more members of the
Director’s “immediate family” and/or the Director. Any Option held by the
transferee will continue to be subject to the same terms and conditions that
were applicable to the Option immediately prior to the transfer, except that
the Option will be transferable by the transferee only by will or the laws of
descent and distribution. For purposes hereof, “immediate family” means the
Director’s children, stepchildren, grandchildren, parents, stepparents, grandparents,
spouse, siblings (including half brothers and sisters), in-laws, and
relationships arising because of legal adoption. 

          (j)
Adjustments. In the event that subsequent to the Effective Date any
alteration or reorganization whatsoever taking place in the capital structure
of the Company whether by way of capitalization 

3

of profits or
reserves, capital distribution, rights issue, consolidation or sub-division of
Shares, the conversion of one class of share to another or reduction of capital
or otherwise, affects the Shares such that they are increased or decreased or
changed into or exchanged for a different number or kind of Shares or other
securities of the Company or of another corporation, then in order to maintain
the proportionate interest of the Directors and preserve the value of the
awards made hereunder (i) there shall automatically be substituted for each
Share subject to an unexercised Option, each Restricted Stock Award, each
Restricted Stock Unit Award, and each Share to be issued on a formula basis
under this Section 5 subsequent to such event, the number and kind of Shares or
other securities into which each outstanding Share shall be changed or for
which each such Share shall be exchanged, (ii) the exercise price of outstanding
Options shall be increased or decreased proportionately so that the aggregate
purchase price for the Shares subject to any unexercised Option shall remain
the same as immediately prior to such event, and (iii) the number and kind of
Shares available for issuance under the Plan shall be equitably adjusted in
order to take into account such transaction or other change. Notwithstanding
any provision hereof to the contrary, no adjustment may be made that reduces
the amount to be paid up per share to less than the par value of the share. 

          (k)
Nonqualified Options. All Options granted under the Plan shall be
nonqualified options, not entitled to special tax treatment under Section 422
of the Code. 

          6.
DIRECTOR’S FEES 

          Notwithstanding
any provision of this Plan to the contrary, the provisions of Section 6(a)
through (f) and Section 6(h) below will apply only with respect to deferrals of
annual retainer fees earned for service as a Director prior to January 1, 2009.
Deferrals under such provisions may not be made with respect to annual retainer
fees attributable to services performed after December 31, 2008. 

          (a)
Each Director may make an irrevocable election on or before the December 31
immediately preceding the beginning of a Fiscal Year of the Company, by written
notice to the Company, to defer payment of all or a designated portion (in
increments of $5,000) of the cash compensation otherwise payable as his or her
annual retainer for service as a Director for the next Fiscal Year.
Notwithstanding the foregoing, a Director who first becomes eligible to
participate in the Plan may make an election under this Section 6(a) within 30
days of first becoming eligible to participate in the Plan in respect of annual
retainer fees for services performed after the date of the election under this
Section 6(a). 

          (b)
Deferrals of compensation hereunder shall continue until the Director notifies
the Company in writing, on or prior to the December 31 immediately preceding
the commencement of any Fiscal Year, that he wishes his compensation for such
Fiscal Year and all succeeding periods to be paid in cash on a current basis. 

          (c)
All compensation which a Director elects to defer pursuant to this Section 6
shall be credited in the form of units to a bookkeeping account maintained by
the Company in the name of the Director. Each such unit shall represent the
right to receive one Share at the time determined pursuant to the terms of the
Plan. In consideration for forgoing cash compensation, the number of units so
credited will be equal to the number of Shares having an aggregate Fair Market
Value (on the date the compensation would otherwise have been paid) equal to
100% of the amount by which the Director’s cash compensation was reduced
pursuant to the deferral election. Notwithstanding any other provision of this
Plan, in the case of any deferral election made prior to the date of approval
of this Plan by the affirmative votes of the holders of a majority of voting
securities of the Company, the crediting of Share units to the Director’s
bookkeeping account shall be contingent on such 

4

Shareholder
approval. If such Shareholder approval is not obtained within one year from the
Effective Date of this Plan, compensation deferred pursuant to a prior election
hereunder will be paid to the Director in cash at the end of such year. 

          (d)
As of each date on which a cash dividend is paid on Shares, there shall be
credited to each account that number of units (including fractional units)
determined by (i): multiplying the amount of such dividend (per Share) by the
number of units in such account; and (ii) dividing the total so determined by
the Fair Market Value of a Share on the date of payment of such cash dividend.
The additions to a Director’s account pursuant to this Section 6(d) shall
continue until the Director’s account is fully paid. 

          (e)
The account of a Director shall be distributed (in the form of one Share for
each Share unit) either (x) in a lump sum at the time of the Director’s
“separation from service” (within the meaning of Treas. Reg. Section
1.409A-1(h)) with the Company or (y) in up to five annual installments
commencing at the time of the Director’s “separation from service” with the
Company, as elected by the Director. Each Director’s distribution election must
be made in writing within 30 days after the Director first becomes eligible to
participate in the Plan; provided, however, that, solely in the case of
deferrals of compensation that were earned and vested on December 31, 2004
(together with amounts credited thereon under Section 6(d)), a Director may
make a new distribution election with respect to the entire portion of such
deferrals so long as such election is made at least one year in advance of the
Director’s termination of service on the Board. In the case of an account
distributed in installments, the amount of Shares distributed in each
installment shall be equal to the number of Share units in the Director’s
account subject to such installment distribution at the time of the
distribution divided by the number of installments remaining to be paid. In the
event a Director does not make an affirmative distribution election in
accordance with this Section 6(e), the account of the Director shall be
distributed in a lump sum at the time of the Director’s “separation from
service.” 

          (f)
The right of a Director to amounts described under this Section 6 (including
Shares) shall not be subject to assignment or other disposition by him or her
other than by will or the laws of descent and distribution. In the event that,
notwithstanding this provision, a Director makes a prohibited disposition, the
Company may disregard the same and discharge its obligation hereunder by making
payment or delivery as though no such disposition had been made. 

          (g)
Each Director may make an election in writing on or prior to each December 31
to receive the Director’s annual retainer fees payable in the following Fiscal
Year in the form of Shares instead of cash. Any Shares elected shall be payable
at the time cash retainer fees are otherwise payable, and the number of Shares
distributed shall be equal to the amount of the annual retainer fee otherwise
payable on such payment date divided by the Fair Market Value of a Share on
such date. Notwithstanding the foregoing, a Director who first becomes eligible
to participate in the Plan may make an election under this Section 6(g) within
30 days of first becoming eligible to participate in the Plan in respect of
annual retainer fees for services performed after the date of the election
under this Section 6(g). 

          (h)
In the event that any dividend in Shares, recapitalization, Share split,
reverse split, reorganization, merger, consolidation, spin-off, combination,
repurchase, or share exchange, or other such change, affects the Shares such
that they are increased or decreased or changed into or exchanged for a
different number or kind of Shares, other securities of the Company or of
another corporation or other consideration, then in order to maintain the
proportionate interest of the Directors and preserve the value of the
Directors’ Share units, there shall automatically be substituted for each Share
unit a new unit representing the number and kind of Shares, other securities or
other consideration into which each outstanding Share shall be changed. The 

5

substituted
units shall be subject to the same terms and conditions as the original Share units. 

          7. GENERAL PROVISIONS 

          (a)
Compliance With Legal And Trading Requirements. The Plan shall be
subject to all applicable laws, rules and regulations, including, but not
limited to, U.S. federal and state laws, rules and regulations, and to such
approvals by any regulatory or governmental agency as may be required. The
Company, in its discretion, may postpone the issuance or delivery of Shares
under the Plan until completion of such stock exchange or market system listing
or registration or qualification of such Shares or other required action under
any U.S. state or federal law, rule or regulation or under laws, rules or
regulations of other jurisdictions as the Company may consider appropriate, and
may require any Participant to make such representations and furnish such
information as it may consider appropriate in connection with the issuance or
delivery of Shares in compliance with applicable laws, rules and regulations.
No provisions of the Plan shall be interpreted or construed to obligate the
Company to register any Shares under U.S. federal or state law or under the
laws of other jurisdictions. 

          (b)
No Right To Continued Service. Neither the Plan nor any action taken
there under shall be construed as giving any Director the right to be retained
in the service of the Company or any of its subsidiaries or affiliates, nor
shall it interfere in any way with the right of the Company or any of its
subsidiaries or affiliates to terminate any Director’s service at any time. 

          (c)
Taxes. The Company is authorized to withhold from any Shares delivered
under this Plan or on exercise of an Option any amounts of withholding and
other taxes due in connection therewith, and to take such other action as the
Company may deem advisable to enable the Company and a Participant to satisfy
obligations for the payment of any withholding taxes and other tax obligations
relating thereto. This authority shall include authority to withhold or receive
Shares or other property and to make cash payments in respect thereof in
satisfaction of a Participant’s tax obligations. 

          (d)
Amendment. The Board may amend, alter, suspend, discontinue, or
terminate the Plan without the consent of Shareholders of the Company or
Participants, except that any such amendment, alteration, suspension, discontinuation,
or termination shall be subject to the approval of the Company’s Shareholders
if such Shareholder approval is required by any U.S. federal law or regulation
or the rules of any stock exchange or automated quotation system on which the
Shares may then be listed or quoted; provided, however, that, without the
consent of an affected Participant, no amendment, alteration, suspension,
discontinuation, or termination of the Plan may impair the rights or, in any
other manner, adversely affect the rights of such Participant under any award
theretofore granted to him or her or compensation previously deferred by him or
her hereunder. 

          (e)
Unfunded Status Of Awards. The Plan is intended to constitute an
“unfunded” plan for incentive and deferred compensation. With respect to any
payments not yet made to a Participant pursuant to a Restricted Stock Unit
Award or a deferral election, nothing contained in the Plan shall give any such
Participant any rights that are greater than those of a general unsecured
creditor of the Company; provided, however, that the Company may authorize the
creation of trusts or make other arrangements to meet the Company’s obligations
under the Plan to deliver cash, Shares, or other property pursuant to any
award, which trusts or other arrangements shall be consistent with the
“unfunded” status of the Plan unless the Company otherwise determines with the
consent of each affected Participant. 

6

          (f)
Non-Exclusivity Of The Plan. Neither the adoption of the Plan by the
Board nor its submission to the Shareholders of the Company for approval shall
be construed as creating any limitations on the power of the Board to adopt
such other compensation arrangements as it may deem desirable, including,
without limitation, the granting of options on Shares and other awards
otherwise than under the Plan, and such arrangements may be either applicable
generally or only in specific cases. 

          (g)
No Fractional Shares. No fractional Shares shall be issued or delivered
pursuant to the Plan. Cash shall be paid in lieu of such fractional Shares. 

          (h)
Governing Law. The validity, construction, and effect of the Plan shall
be determined in accordance with the laws of the State of New York, without
giving effect to principles of conflict of laws thereof. 

          (i)
Effective Date; Plan Termination. The Plan as amended and restated
became effective as of January 1, 2009 (the “Effective Date”), subject to
approval by the Shareholders of the Company. The Plan shall terminate as to
future awards on June 1, 2014 or, if earlier, at such time as no Shares remain
available for issuance pursuant to Section 4, and the Company has no further
obligations with respect to any award granted or compensation deferred under
the Plan. 

          (j)
Titles And Headings. The titles and headings of the Sections in the Plan
are for convenience of reference only. In the event of any conflict, the text
of the Plan, rather than such titles or headings, shall control. 

          (k)
Section 409A. It is intended that deferrals of compensation that were
earned and vested on December 31, 2004 (and amounts credited thereon under
Section 6(d) of the Plan) (the “Grandfathered Plan Benefits”) will satisfy the
grandfather provisions applicable under Section 409A of the Code so that such
Grandfathered Plan Benefits will not be subject to Section 409A of the Code. No
amendment to this Plan made after October 3, 2004 will apply to the
Grandfathered Plan Benefits unless the amendment specifically provides that it
applies to them. As it applies to benefits that are not Grandfathered Plan
Benefits, it is intended that the Plan, Options and other awards granted and
amounts deferred hereunder will comply with Section 409A of the Code (and any
regulations and guidelines issued there under) to the extent subject thereto,
and the Plan and such Options, awards and deferral provisions shall be
interpreted on a basis consistent with such intent. Without limiting the
generality of the foregoing, no adjustment shall be made pursuant to Section
5(j) above that would cause any Option to be treated as deferred compensation
pursuant to Section 409A of the Code. The Plan and any Award Agreements issued
there under may be amended in any respect deemed by the Board or the Committee to
be necessary in order to preserve compliance with Section 409A of the Code. No
action or failure to act, pursuant to this Section 7(k) shall subject the
Company to any claim, liability, or expense, and the Company shall not have any
obligation to indemnify or otherwise protect any Director from the obligation
to pay any taxes pursuant to Section 409A of the Code. 

          (l)
Section 457A. Notwithstanding any provision of this Plan to the
contrary, in the case of any Director subject to United States income tax, any
amount deferred under Section 6 of the Plan, and any amount deferred under a
restricted stock unit granted under the Plan, which in any such case
constitutes “nonqualified deferred compensation” for purposes of Section 457A
of the Code and is subject to Section 457A of the Code, shall be distributed to
the Director no later than December 31, 2017. 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]