Document:

Prepared and filed by St Ives Burrups

 

EXHIBIT 10.1

PXRE GROUP LTD.

2002 OFFICER INCENTIVE PLAN

RESTRICTED SHARE AWARD AGREEMENT

This Agreement confirms the grant of Restricted Shares to you on February 24, 2005 by PXRE Group Ltd. (the “Company”) under the Company’s 2002 Officer Incentive Plan (the “Plan”), upon the following terms and conditions.

1.  Grant of Restricted Shares.

(a)  Delivery.  The Company hereby grants you   ________  shares of the Company’s common shares, $1.00 par value per share (the “Shares”), subject to the terms and conditions hereinafter set forth.  These Shares shall be registered in your name, but the Company shall hold the certificates representing such Shares for you during the period commencing on the date hereof and ending on the date(s) provided in Paragraph 2 (the “Restricted Period”), subject to earlier lapsing of such Restricted Period as provided in Paragraph 3.  As a condition to this award, you shall execute and deliver to the Company a stock power, endorsed in blank and approved by the Secretary of the Company,
relating to the Shares.

(b)  Rights During Restricted Period.  During the Restricted Period you shall not sell, pledge, transfer, assign, hypothecate or otherwise dispose of or encumber the Shares, and the Shares shall be subject to forfeiture as provided in paragraph 3 or 5 hereof.  Except for such restrictions, you shall have all the rights of a shareholder with respect to your Shares, including but not limited to the right to vote and the right to receive dividends (which if in common shares  shall be restricted under the same terms and conditions as the Shares to which they relate).

(c)  Legend.  Each certificate for Shares transferred or issued to you shall be registered in your name and shall bear the following legend:

	 	“THIS CERTIFICATE AND THE SHARES
    REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS CONTAINED IN THE
    PXRE GROUP LTD. 2002 OFFICER INCENTIVE PLAN (THE “PLAN”) APPLICABLE
    TO RESTRICTED SHARES AND TO THE RESTRICTED SHARE AGREEMENT DATED FEBRUARY
    24, 2005 (THE “AGREEMENT”), AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED,
    ASSIGNED, HYPOTHECATED, OR OTHERWISE DISPOSED OF OR ENCUMBERED IN ANY MANNER
    DURING THE RESTRICTED PERIOD SPECIFIED IN THE AGREEMENT. COPIES OF SUCH PLAN
    AND AGREEMENT ARE ON FILE WITH THE SECRETARY OF THE COMPANY.”

2.  Term of the Restricted Period.  Subject to the provisions of Section 4.2 of the Plan no portion of the Restricted Period shall lapse prior to the first anniversary date hereof.  Thereafter, the Restricted Period shall lapse in accordance with the following schedule:

	Period	 	Cumulative Portion of Shares With No Restricted Period
	
   	 	

	Prior to the first anniversary of date hereof	 	None
	 	 	 
	From and including the first anniversary of the date hereof through the day prior to the second anniversary of the date hereof.	 	25% of the Shares
	 	 	 
	From and including the second anniversary of the date hereof through the day subsequent to the third anniversary of the date hereof.	 	50% of the Shares
	 	 	 
	From and including the third anniversary of the date hereof through the day subsequent to the fourth anniversary of the date hereof.	 	75% of the Shares
	 	 	 
	From and including the fourth anniversary of the date hereof through the day subsequent to the tenth anniversary of the date hereof.	 	100% of the Shares

3.  Lapsing of Restricted Period.  Subject to Section 2 above, the Restricted Period will be unaffected by the termination of your employment, except that:

(a)  Upon termination of your employment with the Company and an Affiliate as a result of Retirement or Permanent Disability (as described in Section 3.3 of the Plan), all of the Restricted Period remaining for your Shares shall lapse as of such termination.

(b)  Upon termination of your employment with the Company and any Affiliate by reason of death, all of the Restricted Period remaining for your Shares shall lapse as of your death.

(c)  Upon termination of your employment with the Company and any Affiliate for a reason other than those described in clauses (a) or (b) above, any Shares for which the Restricted Period has not lapsed under Paragraph 2 shall revert to the Company and the certificates for such Shares shall be canceled.

(d)  Any remaining Restricted Period applicable to your Shares shall lapse under certain circumstances set forth in Section 4.2 of the Plan including in the event of a “Change in Control”, as defined in Section 4.2 of the Plan, has occurred, or is likely to occur, as determined by the Committee.

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The Company and any Affiliate reserves the right to terminate your employment with the Company or any Affiliate at any time for any reason, subject to the terms of any other written agreement between you and the Company or any Affiliate and no contract or right to continued employment shall be implied by this Agreement.

4.  Issuance of New Certificates.  Upon the lapse of the Restricted Period with respect to any Shares, such Shares shall no longer be subject to the restriction imposed in Paragraph 1, and the Company will issue new share certificates respecting such Shares registered in your name without the legend described in Paragraph 1 in exchange for those previously issued.  However, no certificates will be issued for fractional Shares, and the value of any fractional Shares, based on the Fair Market Value of the Company’s Shares on the day of such lapse, shall be paid to you in cash.

Upon the lapse of the Restricted Period for any Shares, you shall transfer sufficient Shares to the Company to provide for the payment of any taxes which the Company is obligated to withhold or collect with respect to your income resulting from such lapse.  The value of the shares to be transferred shall be the Fair Market Value of the Company’s Shares on the date of such lapse.

5.  Minimum Employment Requirement.  Notwithstanding any other provision of this Agreement, if, during the period ending on the first anniversary hereof, you fail to be in the continuous employ of the Company or an Affiliate for any reason other than Retirement, Permanent Disability or death, all of your Restricted Shares shall immediately revert to the Company and the certificates issued for them shall be canceled.

6.  Securities Law Requirement.  The Company shall not be required to deliver any Shares upon the lapse of the Restricted Period applicable to any Shares unless the Committee has determined that it may do so without violation of applicable federal or state laws pertaining to the issuance of securities, and the Company may require any Shares to bear a legend, may give the transfer agent instructions, and may take such other steps, as in its judgment are reasonably required to prevent any such violation.  No new certificates shall be issued upon the lapse of the Restricted Period unless you first enter into an agreement with the Company providing for compliance by you with all such applicable laws. The Company
is under no obligation to register the Shares covered by this Agreement, nor is the Company under any obligation to register any of the Shares or otherwise qualify them for sale under any state law.  Any Shares acquired hereunder must be held indefinitely unless they are registered under the Securities Act of 1933, as amended, (the “Act”) or the disposition thereof is exempt from the registration requirements of the Act.

7.  Non-Transferability.  Shares are not transferable as provided in Paragraph 1.  No right or interest hereunder shall be otherwise subject to transfer, assignment, pledge, charge  or other alienation, whether voluntary or involuntary, and any attempt to transfer, assign, pledge, charge or otherwise alienate the same shall be null and void and of no effect.  If you or any other person entitled to benefits hereunder should attempt to transfer, assigned, pledge, charge or otherwise alienate any right or interest hereunder, or under the Plan, then such benefits shall, in the discretion of the Committee, cease.

8.  Incorporation of Plan Provisions.  This Agreement is made pursuant to the PXRE Group Ltd. 2002 Officer Incentive Plan and is subject to all the terms and provisions of such Plan as if the same were fully set forth herein, and receipt of a copy of such Plan is hereby acknowledged.  Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan.

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9.  This Agreement:  (a)  shall be in binding upon and inure to the benefit of any successor of the Company;  (b)  shall be governed by the laws of the State of New York and any applicable laws of the United States; and (c)  may not be amended except in writing, signed by both parties.

4Prepared and filed by St Ives Burrups

Exhibit 10.11

 

EXECUTION COPY

 

COMMUTATION AGREEMENT

 

This Agreement is made effective as of January 1,  2005 (the “Commutation Date”) by and  between PXRE Reinsurance Ltd. (“Reinsured”) and Select Reinsurance Ltd.  (hereinafter referred to as the “Reinsurer”) and such entities  collectively hereinafter, (the “parties”).

 

          WHEREAS,  the parties hereto desire to effect a full and final commutation and release of  that certain Excess of Loss Reinsurance Treaty, made and effective as of April  1, 2004, by and between the Reinsured and the Reinsurer (the “Commuted  Contract”) upon the terms and conditions set forth below:

 

          NOW,  THEREFORE, in consideration of the mutual covenants and agreements hereinafter  set forth, the parties hereto agree as follows:

 

1.          The  Reinsurer shall pay to Reinsured the amount of $17,250,000 for commutation of  the Commuted Contract (the “Commutation Amount”), which amount represents the  mutually agreed upon amount to completely discharge all liabilities and  obligations of the parties in respect of the Commuted Contract. The Commutation  Amount shall be paid as follows:

 

             (A)          The  Reinsurer and the Reinsured shall jointly instruct the trustee of the Patriot 2004 Trust (the “Trust”) made June 30,  2004 with Harrington Trust Limited (now known as Appleby Trust) to distribute  to the Reinsured cash in the amount of $2,750,000 from the Trust (the “Cash  Commutation Payment”) ; and 

 

             (B)          The  Reinsurer hereby irrevocably  and unconditionally releases and forever discharges its  claim for the funds withheld premium of $14,500,000 due under the Commuted  Contract from the Reinsured to the Reinsurer.

 

2.          The  Reinsured and Reinsurer do hereby irrevocably and unconditionally release and forever  discharge each other, and their affiliates,  parents, subsidiaries and other related or associated companies (the  “Entities”), and the Entities’ officers, directors, agents and shareholders,  and their heirs, executors, administrators, successors, predecessors and  assigns from all past, present and future obligations, losses, offsets,  actions, causes of action, suits, debts, sums of money, accounts, damages,  judgments, claims, demands or other liability whatsoever, known or unknown, at  law or in equity, in contract or in tort, arising under, or in connection with  the Commuted Contract, including, without limitation, any obligation for loss,  loss adjustment expenses, reinsurance premiums due, reinsurer’s margin,  commutation amounts, termination amounts, profit sharing, adjustments,
offsets,  taxes and any other obligation which might be claimed or demanded by reason of  any matter whatsoever arising out of, or in connection with, the Commuted  Contract; it being the intention of the parties that this release operate as a  full and final settlement of each party’s current and future obligations and  liabilities to the other parties hereto with respect to the Commuted Contract  and discharge of any claim by one party against any other party whatsoever  arising out of, or in connection with, the Commuted Contract.  For the avoidance of doubt, this Agreement shall not  release, modify or affect any party’s obligations under any contract with the  other party other than the Commuted Contract.

 

3.          Representations
      and Warranties.  Each  of the parties hereto expressly severally
      warrants and represents to the other party hereto that it is a corporation
      in good standing in its respective place of domicile; that the execution,
      giving effect to and performance of its obligations under this Agreement
      is fully authorized by it; that the person executing this Agreement has
      the necessary and appropriate authority to do so; that this Agreement constitutes
      a valid and binding obligation of it (except as limited by applicable bankruptcy
      or other laws for the protection of debtors); that it derives a benefit
      and will not assert a lack of benefit by reason of its execution of this
      Agreement; that there are no existing or pending agreements, transactions
      or negotiations to which it is a party that would render this Agreement
      or any part thereof void, avoidable or unenforceable; that there is no
      authorization, consent or approval of any government or regulatory entity
      which is required to make this Agreement valid and binding upon it; that
      no claim or account being paid or settled hereunder has previously been
      assigned or
transferred to  another person or entity; that no order has been made or petition
      presented or other step taken for it to be wound up or for the appointment
      of a liquidator, provisional liquidator, receiver, administrator or other
      like office holder under the laws of any jurisdiction whatsoever; that
      the execution, giving effect to and performance of its obligations under,
      this Agreement does not contravene or fail to comply with a direction given
      by any governmental authority having regulatory authority over it; and,
      that it has not dealt with a broker or other intermediary in connection
      with the Commuted Contract or this commutation in a manner that places
      any obligation on  the other party.

 

 

 

4.          Governing  Law.  This Agreement shall be  interpreted under and be governed by the laws of New York, without regard to  any choice of law principles which would apply the law of any other  jurisdiction.

 

5.          Entire  Agreement.  This Agreement  shall constitute the entire Agreement between the parties with respect to the  commutation of the Commuted Contract and may not be amended orally or in  writing except by written addendum signed by each of the parties hereto. 

 

6.          No Third  Party Beneficiaries.  This  Agreement shall be binding upon and shall inure solely to the benefit of the  parties hereto and their respective assigns; it being the intent of the parties  not to create any third party beneficiaries hereunder.

 

7.          No Reliance.  The parties acknowledge that they have  entered into this Agreement in reliance upon their own independent  investigation and analysis and not on the basis of any representation or  warranty by the other parties hereto other than those representations and  warranties set forth above.

 

8.          Counterparts.  This Agreement may be executed in one or  more counterparts, each of which shall for all purposes be deemed to be an  original, but all of which shall constitute one and the same Agreement.

 

9.          No Waiver.  The failure of the parties to enforce any  provision of this Agreement shall not be construed as a waiver of such  provision or any other provision of this Agreement.  No waiver of any provision of this Agreement shall be deemed a  waiver of any of its other terms, nor shall such waiver constitute a continuing  waiver and any such waiver must be in writing signed by the waiving party.

 

10.          Illegality.  In
    the event that any part of this Agreement should for any reason become or
    be found to be null, void, illegal or otherwise unenforceable, it shall be
    struck out to the extent that it is so null, void, illegal or unenforceable
    in the jurisdiction or jurisdictions affected, and the remaining provisions
    of this Agreement shall remain in full force and effect; provided that the
    part struck does not leave any of the parties without the essence of their
    bargain and if so, the parties shall negotiate in good faith to replace such
    part with provisions that will restore
    such essential bargain.  In the event that any court of competent  jurisdiction
    renders a final, nonappealable order or ruling declaring this Agreement null
    and void in its entirety, it is mutually agreed by the Reinsured and the
    Reinsurer that this Agreement shall be immediately rescinded and that each
    of the parties hereto shall be restored to the position it was in just prior
    to the making of this Agreement.

 

 

11.          Patriot 2004  Trust.     Following the  transfer of the Cash Commutation Payment from the Trust to the Reinsured, the  parties hereby agree that this Commutation Agreement shall act as a joint  instruction by the parties to the Trustee of the Trust to forthwith pay over to  the Reinsurer all Assets and Income held in the Trust at the time of carrying  out such instruction in excess of such Cash Commutation Payment and $1.00 and  Section 6 of this commutation agreement shall not apply to the action taken by  the Trustee in furtherance of this instruction.  

 

12.          Capitalized  terms not otherwise defined in this Agreement shall have the meaning assigned  in the Trust and all references to $ shall mean U.S. dollars.  

 

 

IN WITNESS WHEREOF, the Reinsurer and the Reinsured  have caused this Agreement to be executed by their duly authorized representatives.

 

	
  PXRE REINSURANCE LTD.

  	
   

  	
  SELECT REINSURANCE LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ROBERT P. MYRON

  	
   

  	
  By:

  	
  BRANT L. KIZER

  
	
   

  	
  

  	
   

  	
   

  	
  

  
	
  Title:

  	
  SVP and CFO

  	
   

  	
  Title: 

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  January 20, 2005

  	
   

  	
  Date: 

  	
  January 20, 2005

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